Birla Precision Technologies Ltd — Regulatory Filings 2020

Jun 27, 2020

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SJ/BSE/06/2020-21

To, Date: 26.06.2020 The Dy. Gen. Manager, Corporate Relationship Dept., BSE Limited PJ Tower, Dalal Street, Mumbai-400001

Sub: Disclosure of material impact of COVID–19 pandemic on company under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Dear Sir / Madam,

Pursuant to the SEBI circular SEBI/HO/CFD/CMD1/CIR/P/2020/84 dated 20[th] May, 2020; evaluation of the impact of the CoVID-19 pandemic on the business of the Company is enclosed herewith.

Kindly Take the same on your records.

Thanking You,

Yours Faithfully

For Birla Precision Technologies Limited

Sd/-

Shaijal Jain Company Secretary

Kindly note that the document could not be physically signed, as few employees are working from home due to outbreak of COVID-19.

Birla Precision Technologies Limited

Regd. Office: 23, Birla Mansion No. 2, 1st Floor, D. D. Sathe Marg, Prarthana Samaj, Mumbai 400 004 Tel.: +91 022-23867498

E-mail : info@birlaprecision.com Website : www.birlaprecision.com An ISO 9001:2000 & ISO 14001:2004 Company CIN: L29220MH1986PLC041214

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Sr. Particular Details
No.
1. Impact of the CoVID-19 Global Pandemic COVID-19 encapsulated
pandemic on the business the entire world in first half of 2020: all the
business activities were affected during the
initial period due to lock down in most of the
countries worldwide. There is lot
uncertainty prevailing worldwide due to the
pandemic COVID-19 and as we don't see
situation getting in control in near future.
The Company's manufacturing facilities
remained shut from March 22, 2020 due to
lockdown and Partially re-opened dated 6th
May, 2020 We have lost production during
complete lock down for the period over a
month that reduces our production capacity
utilization by 10% for the FY 2021. We have
no sales for the month of April 2020,
BPTL has re-started the production
activities from first week of May 2020,
company is ramping up the production
capacity utilization gradually. In light of the
unprecedented situation owing to the
spread of COVID-19, We feel it will take
another few months to utilize the
production capacity at optimum level.
As per the current estimate we feel COVID-
19 will have around 35% to 40% Impact on
business operation for FY 2020-21,
assuming things get normalize and start
improving progressively in near future and
will not have any major setback going
forward.
2. Ability to maintain operations The Company has already resumed the
including the operations of its production facilities with
factories/units/office spaces lower capacity utilization, adhering to the
functioning and closed down safety norms as prescribed by the
3. Schedule, if any, for restarting Government of India.
the operations We will ramp up the production capacity
gradually as per the market condition,
global economy, supply chain support,
addressing labor and other issues, etc.
4. Steps taken to ensure smooth Exhaustive measures have been
functioning of operations undertaken by Company to ensure safe
workplace for the employees with
appropriate social distancing and high
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Birla Precision Technologies Limited

Regd. Office: 23, Birla Mansion No. 2, 1st Floor, D. D. Sathe Marg, Prarthana Samaj, Mumbai 400 004 Tel.: +91 022-23867498

E-mail : info@birlaprecision.com Website : www.birlaprecision.com An ISO 9001:2000 & ISO 14001:2004 Company CIN: L29220MH1986PLC041214

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standard of hygiene. The company has also
taken various steps such as thermal
screening of all employees and visitors,
sanitizing the premises on regular basis,
enforcing wearing of masks, asking all
employees to have Aarogya Setu App on
their mobiles and continuously follow
guidelines prescribed by the central or State
Government from time to time. Work from
Home option also continues for certain
category of employees. The company has
also ensured complete adherence to all
safety guidelines to minimize the spread of
this deadly corona virus.
5. Estimation of the future The revenues and profitability of the
impact of CoVID-19 on its Company are likely to be adversely impacted
operations: during the Lock Down period and near
future till we achieve stabilization of normal
operations. The Company is making every
effort to mitigate this.
6. Details of impact of CoVID-19
on
a) Capital and financial Please refer point No. c
resources
b) Profitability Profitability for the First Quarter is likely to
be affected due to the lockdown and partial
manufacturing capacity. However, it is
expected to gradually improve from the
Second Quarter.
c) Liquidity position We have adequate liquidity to tide over the
current difficult period. We continue to be
extremely vigilant with our liquid positions
and monitor them on an on-going basis. We
are confident we will weather this storm and
come out leaned and stronger.
As permitted by RBI & Bank, the Company
has availed additional moratorium of six
month for payment of Bank Interest, and
deferment of payment working capital
facility of the Company.
Company has also approach to sanction of
COVID-19 additional 10% fund base
working capital facilities from its lending
partners but still sanction awaited. It will
reduce the pressure on company's liquidity
position
d) ability to service debt and Please refer point No. c
other financing arrangements;
e) Assets There has been no significant change in the
fixed asset positions of the company,
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Birla Precision Technologies Limited

Regd. Office: 23, Birla Mansion No. 2, 1st Floor, D. D. Sathe Marg, Prarthana Samaj, Mumbai 400 004 Tel.: +91 022-23867498

E-mail : info@birlaprecision.com Website : www.birlaprecision.com An ISO 9001:2000 & ISO 14001:2004 Company CIN: L29220MH1986PLC041214

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however realization of current assets
(receivables from customers) has been a
challenge and the Company is taking all
possible steps to ensure collection of
receivables .
f) Internal financial reporting The Company has adequate internal
and control financial reporting and control system,
commensurate with the financial status,
size and operations of the Company.
The Company has taken cash flow control
and overhead control measures to manage
the operations, daily / weekly review
mechanism adopted to review the account
receivables and measures taken to control
the capital expenditure.
g) Supply chain COVID·19 pandemic has halted the
operations worldwide and there might be
supply disruptions, If the pandemic Is
prolonged,
h) Demand for its product / The demand of the products of the Company
services is impacted due to the imposition of the lock
down of its operations. However, the
Company is optimistic to gain momentum in
the forthcoming quarters of the financial
year 2020-21.
7. Existing contract/agreements No other significant information.
where non-fulfilment of the
obligations by any party will
have significant impact on the
business
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For Birla Precision Technologies Limited

Sd/Vedant Birla Managing Director cum Chairperson

Birla Precision Technologies Limited

Regd. Office: 23, Birla Mansion No. 2, 1st Floor, D. D. Sathe Marg, Prarthana Samaj, Mumbai 400 004 Tel.: +91 022-23867498

E-mail : info@birlaprecision.com Website : www.birlaprecision.com An ISO 9001:2000 & ISO 14001:2004 Company CIN: L29220MH1986PLC041214