Dabur India Ltd. — Management Reports 2020

May 27, 2020

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		Indi
1	Impact of the CoVID-19	During Q4FY20 there was an estimated impact (based
	pandemic on the business	on best judgement) of approx. FNR 360 crore on
		Revenue from Operations and HMR 115 crore on Profit
		After Tax.
		During Q1FY21, there is likely to be an estimated
		impact (based on best judgement and based on normal
		growth scenario) of D^R 400-450 crore on Revenue
		from Operations and FNR 60-80 crore on Profit After
		Tax as per our assessment of current situation.
2	Ability to maintain	Our factories were shut down in the last week of
	operations including the	March due to lockdown. Factory operations resumed
	factories/ units/ office	selectively from 2nd week of April, post approvals
	spaces functioning and	from local authorities, with limited manpower.
	closed down
		Current situation: Despite manpower availability
		constraints (restrictions on inter-state movements etc.),
		almost all factories are running at operational capacityof 60-70%.
3	Schedule, if any, for	All factories have already re-started operations as on
	restarting the operations	date
4	Steps taken to ensuresmooth functioning of	• Detailed shop-floor precautions & safety systemshave been implemented with appropriate training to
	operations	staff and workmen.
		• Factory roads and entrance areas are being regularly
		sanitized
		• Regular Fumigation of offices and shop floors
		• Social distancing norms being strictly followed at
		factories and offices
		• Sanitization and thermal screening of employees,
		truck drivers and loading vehicles at the entry gate
		of factories
5	Estimation of the futureimpact ofCoVID-19 on itsoperations	Impact ofCovid-19 upto Q1FY21 has been providedin Point no. 1. It is difficult to estimate the impact ofCO VID-19 on our operations beyond June, 2020 at
		this point of time.
6	Details ofCoVID-19impact ofon listed	a. There is no impact on capital and financialresources of the company
	entity's -a. capital andfinancial	b. As mentioned above in point No. 1
	resources
	b. profitability	J
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||c. liquidity positiond. ability to service debtand other financingarrangementse. assetsf. internal financialreporting and controlg. supply chainh. demand for itsproducts/services;^^.^^^»^-»^(#<br>u'orLtd.ran0c. The company had Net Cash reserves of3800 crores as on 31st March 2020 t(requirements in case of any emergency and wenot foresee any liquidity crunch.d. Due to Covid-19 there is no impact on company'sability to service debt. In fact, during this periodthe company has duly discharged its liabilitytowards lenders well within time. And asmentioned above the company has sufficient cashreserves and unutilised banking lines to drawdown in case of any emergency, if the need soarise.e. There is no significant impact on debtors andinventory and all assets are at fair value.f. All the internal financial reporting and controlshave been maintained adequately.g. The supply chain has been disrupted in view oflockdown since March 2020 and is graduallyreturning to normalcy based on state wiseregulations. Availability of transportation for rawmaterials, packing material and finished productswas an issue in view of the countrywidelockdown. However, the situation is improvinggradually with states relaxing movement of goods.h. There is a strong demand for healthcare, hygieneand essential products. However, the discretionarypersonal care and non-essential categories areslowly witnessing a recovery in demand.7 | Existingcontracts/agreementswhere non-fulfillment ofthe obligations by anyparty will have significantimpact on the listed entity'sbusiness.None8 | Other relevant materialupdates about the listedentity's business| |---|---| |c. liquidity positiond. ability to service debtand other financingarrangementse. assetsf. internal financialreporting and controlg. supply chainh. demand for itsproducts/services;-»^(#<br>u'Lran0c. The company had Net Cash reserves of3800 crores as on 31st March 2020 t(requirements in case of any emergency and wenot foresee any liquidity crunch.d. Due to Covid-19 there is no impact on company'sability to service debt. In fact, during this periodthe company has duly discharged its liabilitytowards lenders well within time. And asmentioned above the company has sufficient cashreserves and unutilised banking lines to drawdown in case of any emergency, if the need soarise.e. There is no significant impact on debtors andinventory and all assets are at fair value.f. All the internal financial reporting and controlshave been maintained adequately.g. The supply chain has been disrupted in view oflockdown since March 2020 and is graduallyreturning to normalcy based on state wiseregulations. Availability of transportation for rawmaterials, packing material and finished productswas an issue in view of the countrywidelockdown. However, the situation is improvinggradually with states relaxing movement of goods.h. There is a strong demand for healthcare, hygieneand essential products. However, the discretionarypersonal care and non-essential categories areslowly witnessing a recovery in demand.7 | Existingcontracts/agreementswhere non-fulfillment ofthe obligations by anyparty will have significantimpact on the listed entity'sbusiness.None8 | Other relevant materialupdates about the listedentity's business^r?4'.'^^y^,.»^^.^«y6<^^Dur'a|c. liquidity positiond. ability to service debtand other financingarrangementse. assetsf. internal financialreporting and controlg. supply chainh. demand for itsproducts/services;-»^(#<br>u'Lran0c. The company had Net Cash reserves of3800 crores as on 31st March 2020 t(requirements in case of any emergency and wenot foresee any liquidity crunch.d. Due to Covid-19 there is no impact on company'sability to service debt. In fact, during this periodthe company has duly discharged its liabilitytowards lenders well within time. And asmentioned above the company has sufficient cashreserves and unutilised banking lines to drawdown in case of any emergency, if the need soarise.e. There is no significant impact on debtors andinventory and all assets are at fair value.f. All the internal financial reporting and controlshave been maintained adequately.g. The supply chain has been disrupted in view oflockdown since March 2020 and is graduallyreturning to normalcy based on state wiseregulations. Availability of transportation for rawmaterials, packing material and finished productswas an issue in view of the countrywidelockdown. However, the situation is improvinggradually with states relaxing movement of goods.h. There is a strong demand for healthcare, hygieneand essential products. However, the discretionarypersonal care and non-essential categories areslowly witnessing a recovery in demand.7 | Existingcontracts/agreementswhere non-fulfillment ofthe obligations by anyparty will have significantimpact on the listed entity'sbusiness.None8 | Other relevant materialupdates about the listedentity's business|