Centum Electronics Ltd — Regulatory Filings 2020

Jul 18, 2020

Ref: CEL/NSEBSE/Covid19/18072020 18th July, 2020

To,

Listing Department	Department of Corporate Services ‐ Listing
National Stock Exchange of India Limited	BSE Limited
Exchange Plaza,	P. J. Towers,
Bandra Kurla Complex,	Dalal Street,
Bandra (East),	Mumbai – 400 001
Mumbai – 400 051

Re: Scrip Symbol: CENTUM/ Scrip Code: 517544

Dear Sir/ Madam,

Sub: Disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 – Disclosure relating to impact of CoVID–19 pandemic on the Company

Pursuant to SEBI Circular No. SEBI/HO/CFD/CMD1/CIR/P/2020/84 dated May 20, 2020, we are enclosing herewith is a disclosure on material impact of CoVID–19 pandemic on the Company under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the content of which is self‐explanatory.

Kindly take the same on your records.

Yours faithfully, For Centum Electronics Limited

NAGARAJ K V

Digitally signed by NAGARAJ K V Date: 2020.07.18 15:27:06 +05'30'

Nagaraj K V Company Secretary & Compliance Officer

DISCLOSURE ON COVID‐19 IMPACT

1	ImpactoftheCoVID‐19pandemic on the business	The locked down and restrictions imposed onvarious activities due to Covid‐19 Pandemic, whilebeing a necessary measure to contain its spread,have also posed unprecedented challenges to allbusinessandthebusinessoperationsoftheCompany have been no exception to this.The Company has evaluated the possible effects thatwould result from the pandemic relating to COVID‐19 on its business operations. The Company, beinginto the business of Design and Manufacturingelectronic components & assemblies, currentlybelieves that the impact of COVID‐19 on theCompany's business operations on an annual basismay not be significant. During the locked down, theCompany continued to provide support to theCustomers who were providing essential services.The Company continues to closely monitor thesituation and shall take appropriate actions as perregulatory guidelines.
2	Ability to maintain operationsincluding the factories/ units/office spaces functioning andclosed down	The Company has obtained the initial approval fromthe Government of Karnataka to Manufacture themedical products on 23rd March 2020 and resumedoperations in our Electronics Manufacturing Services(EMS) plant with effect from 26thMarch, 2020.Further,obtainedpermissiontooperatein6thYelahankaplantfromAprilandstartedoperations on the same day and continued partiallytill 21stApril, 2020. From 22ndApril, we wereoperational with 50% capacity and from 4th May, weare fully operational in both the manufacturingunits.
3	Schedule, if any, for restartingthe operations	To ensure supply of manufacturing products, themanufacturingoperationsoftheCompanycontinues to remain operational from the effectivedates as above mentioned.
4	Steps taken to ensure smoothfunctioning of operations	The Company has taken several measures in termsof safety of its employees and to ensure smoothfunctioning of operations including:•FollowingthesafetycheckslikeThermalscreening, Arogya Setu app status check, facemask,Socialdistancing,handsanitizeratcommon places etc.,

		•Frequent Sanitization in all the office area andtransport vehicles, canteen area.•Appointed doctor for screening the employeeswho are coming after locked down.•Employees were asked to stay at home in case ofany symptoms like fever/cough/cold etc.,•We have defined process to followed by visitorsbefore they reach our office for various meetings.•The Company has paid salaries to all theemployees during the lockdown period•Short videos on the steps taken by the Companycanbeseeninthesocialmediahttps://www.linkedin.com/company/890507/admin/
5	Estimationofthefutureimpact ofCoVID‐19 onitsoperations	Due to evolving COVID‐19, it is very difficult toquantify the impact of COVID‐19 on businessoperations. However, the Company is well preparedto cater to the emerging needs of its customers andis ready to face the future challenges.
6	Details of impact of CoVID‐19on listed entity'sa.Capital and financialresourcesb.Profitabilityc.liquidity positiond.ability to service debt andother financingarrangementse.assetsf.internal financial reportingand controlg.supply chainh.demand for itsproducts/services;	The Company does not foresee any significantchallenge in terms of its capital, financial resourcesor profitability. The Company has borrowed Rs.4.10Crores as COVID‐19 Emergency Credit Line from theState Bank of India and having much better liquidityposition to meet its commitment.The Company continues to look for and implementcost control measures across the organization andalso to conserve cash to address any uncertainties inevolving situations. The Company does not foreseeany significant challenge in realizing/recovering itsassets.However, the receivables from the Space segment ofthe Company is experiencing delay in collectionsWe generally see continuing demand for ourproducts/solutions/services.However,theAerospace (civil) and automotive segments will seereduction of demand at least for part of the yearwhile our medical segment will see an upside. Ourfocu in the immediate period is to make sure thatour products/ solutions/ services are available to theCustomers while continuing to focus on safetymeasures to ensure safety of the people.

		OurFrench subsidiary company has been given a
		loan Eur 6.5 M at very concessional rates guaranteed
		by French Government to support business and
		operations.
7	Existing contracts/agreements	TheCompanyiswellpositionedtofulfilits
	where non‐fulfilment of the	obligations with respect to all the existing contracts and
	obligations by any party will	agreements. We do not foresee any significant impact
	have significant impact on the	on the business due to non‐fulfilment of the
	listed entity's business.	obligations by any party.
8	Otherrelevantmaterial	There are no other material updates to report.
	updatesaboutthelisted
	entity's business