Chembond Material Technologies Limited — Management Reports 2020

Jul 27, 2020

	IMPACTOF	IMPACTOF	THECOVID-19 PANDEMIC ON THEBUSINESS
t	lmpactontheBusinessof		COVID-19 hasimpactednormalbusinessoperationsof theGroup.
	theCompany:		Manufacturing, supply chain, cashflowsetc.have been di;rupted.
			Allplants oftheGroupwere shut down on23'dMarch2020 onlyto
			restartatconsiderablylower productivitybetween8thApriland
			25thApril,2020.
			Necessaryprecautionstoensurehygiene,safety,andwellbeingof
			allouremployees at all plants have beenimplemented.
2	Ability to	maintain	Subsequenttoreceiptofpermissionsfromtheauthorities,the
	operations includingthe		Company resumed operationsinplantsinphased manner.Many
	factories/units/office		employeesof ouroffices arestill workingfromhome.
	spacesfunctioning
	and closeddown:
3	Schedule,if any,for		TheCompanyhas already restartedtheoperationsalbeitina
	restarting the operations:		phased manner.
4	Stepstakento	ensure	All safety protocolsasdirectedbytheGovernment authoritieslike
	smoothfunctioningof		temperaturesensing,wearingofmasks,social distancingand
	operations:		frequentwashingofhands,regularhealthupdatesofall
			employeesetc.have beenstrictlyimplementedandadhered.
			Further,allemployeeshavebeeninstructedtodownloadthe
			AarogyaSetuapp launchedbythe Governmentoflndia.

5Estimationo	5Estimationo	fthefutureSincetheuncertaintiesassociatedwith thisexceptional situation	fthefutureSincetheuncertaintiesassociatedwith thisexceptional situation
	5Estimationo	fthefutureSincetheuncertaintiesassociatedwith thisexceptional situation
	impactofCoVoperations:Detailsof impaCapital anresourcesProfitability:Liuidit ositi6	ID-19onits continuetoevolve, Companyisnotabletoestimatetheimpactwith certainty.We aremonitoringclosely andwillkeepadjustingoperations ascalledforfrom timetotimetobestcushion theadverse impactfromthisscenario.ct ofCoVID-19dfinancialThe Company's capital and bankinglimits remain intact.ln view ofthelockdown,theprofitability duringe1(ApriltoJune)isadversely impacted.Asthe situationisvery dynamic,theCompanyiscloselvmonitoringit.n;Thhthhfliiill
	qy pAbilitytoserviotherarrangem ents:	ougecasowswere ntay disruptedand understressinQ1,theyareimprovingandslowly returningtonormalcy.cedebtandfinancingThe Companyisdebtfree.
	Assets	TheCompany expectstorecoverthecarrying amountofitsassetscomprisingofproperty,plantand equipment, intangibleassets,inventory,tradereceivablesandotherfinancial andnon-financial
		assetsetc intheordinarycourseofbusiness basedon information
	lnternal financ	available oncurrenteconomicconditions.ialreportingTheCompany has asound internal financial reporting and control
	andcontrol mechanismwhichensuresreliability,effectiveness, andefficiencyofthe workdone. Wherever applicable additional controlsare
	being addedtoaddressthecurrent situation.OurlT systemsand
	processcontrolemergedstronger andbetterunderthecrisisaslid kf
	Supply chainDemand	empoyeescontnue to worromhome duringtheLockdown.Nationwide lockdown affectedadverselythesupplyofmaterial,availabilityoflabour, transportationetc.However,thesameimprovedasthe lockdown wereeased.foritsWe areexperiencing a30-50%dropindemandforproductsand
	prod ucts/se rvic	es:servicescurrently.Thesituation continuestoevolve andarevivalisexpectedinQ32020-21.
	7Existing coagreementswfulfilmentofthe	ntracts /herenon- obligations Company doesnotforesee anycontract oragreements which willhavesignificant impactonthebusinessincaseofnon-fulfillmentofobligationbyany party.
	byanypartsiniflcantim	ywillhaveactonth
g listedentity'sbu	g listedentity'sbu	esiness:

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