Camlin Fine Sciences Ltd — Regulatory Filings 2020

Jun 1, 2020

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Date: 01/06/2020

||To,
BSE Limited,
25, P. J. Towers,
Dalal Street,
Mumbai – 400 001
Ref:Company Scrip Code: 532834|To,
The Manager,
Listing Department,
National Stock Exchange of India Ltd.,
Exchange Plaza, Bandra Kurla Complex,
Bandra (East), Mumbai‐ 400051
Ref:Symbol:CAMLINFINE||Series: EQ|
|---|---|---|

Sub: Disclosure of material impact of COVID ‐ 19 pandemic on the Company.

Dear Sir/Madam,

With reference to the SEBI Circular No. SEBI/HO/CFD/CMDl/CIR/P/2020/841 dated 20[th] May 2020 and in line with the requirements of Regulation 30 of the Listing Regulations, please find below requisite disclosure pertaining to the material impact of Corona Virus Disease ("COVID‐19") pandemic on the Company:

1. Impact of the COVID‐19 pandemic on the business:

• Due to complete lock down announced by the Government of India, the domestic operations of the Company were temporarily shut down thereby impacting the business during the current quarter.

2. Ability to maintain operations including the factories/units /office spaces functioning and closed down:

• a. In compliance with the directions issued by the Government of India, the Company had suspended operations at its corporate office and manufacturing locations in India with effect from 23[rd] March, 2020 to ensure safety of our employees and their families and to contain spread of COVID‐19;

• b. The Company was granted permission to partially resume operations at its manufacturing units situated in Tarapur and Dahej. Accordingly, the Company resumed partial operations at its manufacturing units situated in Tarapur and Dahej from 1st April 2020 and 11th April 2020 respectively. With the subsequent relaxation of lockdown restrictions, the Company’s operations are being gradually increased and will reach its optimal utilisation in very near future.

• c. The company’s international manufacturing operations did not face any shutdowns due to COVID pandemic, during the current quarter and were working at decent utilisations.

• d. The Company was also granted permission to restart R&D Laboratory at its registered office situated in Andheri East, Mumbai. Accordingly, the Company’s R&D Laboratory has resumed its operations partially from 14[th] May 2020.

• e. The Company has adopted the work from home policy during the entire duration of the lockdown, except for the above referred facilities.

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3. Schedule, if any, for restarting the operations:

As stated earlier, the Company has resumed operations at all its manufacturing units.

4. Steps taken to ensure smooth functioning of operations:

Well‐being of its employees being of utmost importance, the Company has put in place requisite safety measures for employees working in all its units which have resumed partial operations which are in line with the directives issued by the Government of India and State Governments to help fight the spread of COVID‐19 pandemic.

5. Estimation of the future impact of COVID‐19 on its operations:

While the Company is presently running its business, the future impact on the Company’s operations because of COVID‐19 pandemic cannot be quantified with certainty at this stage and the same will depend on when the entire lockdown restrictions are removed and how the global economy recovers.

6. Details of impact of CoVID‐19 on the Company:

• a. Capital and Financial resources:‐ The Company is having enough capital and adequate banking limits are in place.

Looking at the substantial global impact of COVID pandemic, the Company expects elongation of its working capital cycle. Anticipating such a situation and with a view to effectively manage the cash flows, the Company has taken cautionary measures by approaching its bankers for additional working capital of around INR 30 crores under the various relief measure schemes introduced by the Reserve Bank of India. Till date, the Company has been granted additional working capital limits of INR 13.5 Crores.

The Company has also opted for moratorium from all its working capital lenders as well as term lender viz. Exim Bank. This moratorium is under the COVID‐19 scheme and runs for 3 months from March 2020 to May 2020. The Government has now extended the scheme by another 3 months that is June 2020 to August 2020 and the entire interest for these six months is to be converted into a term loan which will be repayable by March 2021. The Company has already applied for this extension of the moratorium.

• b. Profitability :‐ While the Company’s profitability in the current quarter may get impacted, the same can neither be ascertained nor be quantified at this juncture.

• c. Liquidity position:‐ As mentioned above, the Company has sufficient liquidity due to adequate banking limits being in place;

• d. Ability to service debt and other financing arrangements:‐ The Company is servicing all its debt and other financial obligations in timely manner;

• e. Assets:‐ The assets of the Company have not been impacted and all are in working condition;

• f. Internal financial reporting and control:‐ The Company has taken required steps so that adequate Internal Financial reporting and control are in place in the changed working environment during the lockdown.;

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• g. Supply chain:‐ Supply chains were disrupted in the initial period of the lockdown restrictions. However, it is fast returning to normalcy with relaxations in the restrictions.

• h. Demand for its products:‐ There hasn’t been a major impact on the demand for the Company’s products. The Company is making best efforts to fulfill demands of its customers in a timely manner inspite of logistical difficulties on account of COVID‐19 pandemic.

7. Existing contracts/agreements where non‐fulfillment of the obligations by any party will have significant impact on Company’s business:

The Company is well positioned to fulfill its obligations and also does not foresee any significant impact on the business due to non‐fulfillment of the obligations by any party. This is based on the assumption that there are no further stoppages in the business due to ongoing COVID‐19 pandemic situation.

8. Annual Audited Accounts: Generally, the Company publishes its annual audited accounts by second fortnight of May every year. However, due to the current situation it is expected that the Board meeting to adopt the annual accounts for the financial year ended 31[st] March 2020 would be held in the month of June 2020.

9. Other relevant material updates about the Company’s business: No such material information at this point in time.

The Company shall keep all its stakeholders informed as and when any material development takes place which may have a significant impact on the company.

Kindly take the above on your record.

Thanking you, For Camlin Fine Sciences Limited

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Mandar Godbole Company Secretary & General Manager ‐ Legal

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