Centum Electronics Ltd — Regulatory Filings 2020

Jul 18, 2020

Ref: CEL/NSEBSE/Covid19/18072020 18[th] 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

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

NAGARAJ

K V 15:27:06 +05'30' Nagaraj K V Company Secretary & Compliance Officer

Centum Electronics Limited

44, KHB Industrial Area, Yelahanka New Town, Bangalore - 560 106, Karnataka, India Tel +91-(0)80-4143-6000 Fax +91-(0)80-4143-6005 www.centumindia.com CIN - L85110KA1993PLC013869

DISCLOSURE ON COVID‐19 IMPACT

1	Impact of the CoVID‐19 pandemic on the business	The locked down and restrictions imposed on various activities due to Covid‐19 Pandemic, while being a necessary measure to contain its spread, have also posed unprecedented challenges to all business and the business operations of the Company have been no exception to this. The Company has evaluated the possible effects that would result from the pandemic relating to COVID‐ 19 on its business operations. The Company, being into the business of Design and Manufacturing electronic components & assemblies, currently believes that the impact of COVID‐19 on the Company's business operations on an annual basis may not be significant. During the locked down, the Company continued to provide support to the Customers who were providing essential services. The Company continues to closely monitor the situation and shall take appropriate actions as per regulatory guidelines.
2	Ability to maintain operations including the factories/ units/ office spaces functioning and closed down	The Company has obtained the initial approval from the Government of Karnataka to Manufacture the medical products on 23rdMarch 2020 and resumed operations in our Electronics Manufacturing Services (EMS) plant with effect from 26thMarch, 2020. Further, obtained permission to operate in Yelahanka plant from 6thApril and started operations on the same day and continued partially till 21stApril, 2020. From 22ndApril, we were operational with 50% capacity and from 4thMay, we are fully operational in both the manufacturing units.
3	Schedule, if any, for restarting the operations	To ensure supply of manufacturing products, the manufacturing operations of the Company continues to remain operational from the effective dates as above mentioned.
4	Steps taken to ensure smooth functioning of operations	The Company has taken several measures in terms of safety of its employees and to ensure smooth functioning of operations including: • Following the safety checks like Thermal screening, Arogya Setu app status check, face mask, Social distancing, hand sanitizer at commonplaces etc.,

		• • • • • •	Frequent Sanitization in all the office area and transport vehicles, canteen area. Appointed doctor for screening the employees who are coming after locked down. Employees were asked to stay at home in case of any symptoms like fever/cough/cold etc., We have defined process to followed by visitors before they reach our office for various meetings. The Company has paid salaries to all the employees during the lockdown period Short videos on the steps taken by the Company can be seen in the social media https://www.linkedin.com/company/890507/admin/
5	Estimation of the future impact of CoVID‐19 on its operations	Due to evolving COVID‐19, it is very difficult to quantify the impact of COVID‐19 on business operations. However, the Company is well prepared to cater to the emerging needs of its customers and is readyto face the future challenges.
6	Details of impact of CoVID‐19 on listed entity's a. Capital and financial resources b. Profitability c. liquidity position d. ability to service debt and other financing arrangements e. assets f. internal financial reporting and control g. supply chain h. demand for its products/services;	The Company does not foresee any significant challenge in terms of its capital, financial resources or profitability. The Company has borrowed Rs.4.10 Crores as COVID‐19 Emergency Credit Line from the State Bank of India and having much better liquidity position to meet its commitment. The Company continues to look for and implement cost control measures across the organization and also to conserve cash to address any uncertainties in evolving situations. The Company does not foresee any significant challenge in realizing/recovering its assets. However, the receivables from the Space segment of the Company is experiencing delay in collections We generally see continuing demand for our products/ solutions/ services. However, the Aerospace (civil) and automotive segments will see reduction of demand at least for part of the year while our medical segment will see an upside. Our focu in the immediate period is to make sure that our products/ solutions/ services are available to the Customers while continuing to focus on safety measures to ensure safety of the people.

		Our French 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 where non‐fulfilment of the obligations by any party will have significant impact on the listed entity's business.	The Company is well positioned to fulfil its obligationswith respect to all the existing contracts and agreements. We donot foresee any significant impact on the business due to non‐fulfilment of the obligations byany party.
8	Other relevant material updates about the listed entity's business	There are no other material updates to report.