DIGISPICE TECHNOLOGIES LIMITED — Regulatory Filings 2020

Jun 1, 2020

Date: June 1, 2020

==> picture [132 x 34] intentionally omitted <==

BSE Limited

Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai – 400 001 Scrip Code: 517214

National Stock Exchange of India Limited

Exchange Plaza, Plot No. C/1, G Block Bandra – Kurla Complex, Bandra (E), Mumbai – 400 051 Scrip Code: DIGISPICE

Sub.: Disclosure of impact of CoVID-19 pandemic on the Company under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

Dear Sir/Madam,

In pursuance to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and as advised vide SEBI Circular No. SEBI/HO/CFD/CMD1/CIR/P/2020/84 dated May 20, 2020, we hereby submit the requisite information as detailed hereunder.

DiGiSPICE is engaged in providing value added services and digital services to Telco, Government, Enterprise & Banking customers. CoVID-19 pandemic began in March 2020, in which month Covid-19 began to spread in key markets. There has been no significant impact on the revenues of the Company for the fourth quarter of the year ended 31[st] March 2020 since the period of lock down announced by the Government of India comprised in fourth quarter has been for a week only. However, there has been delays in collection from customers and possible delinquencies in receivables from customers due to the impact of Covid in subsequent months after the close of the financial year. These impacts are under assessment and the financial results for the fourth quarter and financial year ended 31[st] March, 2020 will be declared in the month of June, 2020, post approval of the Board of Directors at their meeting.

In fact the Company has put in place the policy of work from home in March 2020 even before the announcement of lock down by the Government of India to prevent the spread of the pandemic and continued to work from home policy during lockdown. Further, consequent to the relaxations granted by the Governments, the Company is preparing for resumption of its operations from office and putting in place the mandatory protocols and Standard Operating Procedures (SOPs) for all our employees such as submission of Self Declaration Forms, Thermal Screening, Sanitization, followed by the large scale social distancing policy among others as per the Guidelines stipulated by the Ministry of Home Affairs of the Government of India and applicable State Guidelines.

DiGiSPICE Technologies Limited (Formerly Spice Mobility Ltd.) CIN - L72900DL1986PLC330369

Regd. Office: 622, 6[th] Floor, DLF Tower A, Jasola District Centre, New Delhi 110025, Tel: +91 11 41251965 Corp. Office: Spice Global Knowledge Park, 19A & 19B, Sector-125, Noida- 201301, Uttar Pradesh, India - Tel: +91 120 3355131 Email ID: Complianceofficer@smobility.in I Website: www.digispice.com

==> picture [132 x 34] intentionally omitted <==

 Impact of the CoVID-19 pandemic on the business

The Company is in the process of evaluating the impact of COVID 19 on its business. The revenues for April and May 2020 have dropped. The Company is unable to assess at this point of time if the revenue drop is temporary in nature till full visibility of Covid pandemic and its impact on our customers becomes available. In the meantime the Company has initiated the cost optimization measures to minimize the impact on the profitability of the Company and other initiatives to conserve the cash to the extent possible.

 Ability to maintain operations including the factories/units/office spaces functioning and closed down; Schedule, if any, for restarting the operations; and Steps taken to ensure smooth functioning of operations

As already stated the Company is carrying on its operations by following policy of work from home and has initiated/ or in the process of taking steps consistent with the guidelines issued by Government of India/ State Government/ Local administration.

 Estimation of the future impact of CoVID-19 on its operations

The Company’s operations have been adversely affected with drop in revenues and delays in collection from customers. The Company expects this trend to continue for at least two more quarters post which the situation is likely to be normalized.

• Details of impact of CoVID-19 on listed entity’s –

• capital and financial resources; profitability and liquidity position The revenues for April and May 2020 have dropped. The Company has initiated the cost optimization measures to minimize the impact on the profitability of the Company and other initiatives to conserve the cash to the extent possible. Situation on liquidity need regular appraisal considering change of credit culture.

• ability to service debt and other financing arrangements Apart from using internal accruals, the Company has also used temporary facility of moratorium for deferment of working capital financing arrangement.

• assets

  • There has been no significant change in the fixed asset positions of the company, however realization of current assets (receivables from customers) has been a challenge and the Company is taking all possible steps to ensure collection of receivables. In the event of non-collection the Company will create suitable provisions in the books as and when assessments of cases are done.

• internal financial reporting and control

The company has implemental adequate internal control system in view of the work from home process adhered and no major risk areas have been noticed so far. The company will continue to evaluate these risks on an ongoing basis and take necessary actions.

• supply chain

DiGiSPICE is engaged in Digital deliveries of services, so no significant change/ impact.

DiGiSPICE Technologies Limited (Formerly Spice Mobility Ltd.) CIN - L72900DL1986PLC330369

Regd. Office: 622, 6[th] Floor, DLF Tower A, Jasola District Centre, New Delhi 110025, Tel: +91 11 41251965

Corp. Office: Spice Global Knowledge Park, 19A & 19B, Sector-125, Noida- 201301, Uttar Pradesh, India - Tel: +91 120 3355131 Email ID: Complianceofficer@smobility.in I Website: www.digispice.com

==> picture [132 x 34] intentionally omitted <==

• demand for its products/services The Company has its operations in multiple countries and the Revenues, post March 2020, have been impacted in most of the countries where the Company operates due to the prevailing lockdown situations. The products and services of the Company are not of essential in nature and as such the revenue impact may last for at least two more quarters post which the Company expects it to normalize.

 Existing contracts/agreements where non-fulfillment of the obligations by any party will have significant impact on the listed entity’s business

Currently, the Company is in the process of reviewing impact of Covid on large contractual obligations of our customers. It is possible the Company may be required to make significant provisions in its financials in respect of certain contracts where huge receivable are still pending.

The Company is cognizant of the fact and regularly evaluating and monitoring other contractual positions also.

 Other relevant material updates about the listed entity’s business.

• None

You are requested to kindly take the aforesaid information on record.

Thanking you.

Yours faithfully, for DiGiSPICE Technologies Limited (formerly Spice Mobility Limited)

Sd/-

(M. R. Bothra) Vice President - Corporate Affairs & Company Secretary Contact Number: 0120 – 3355131

Note: In view of the Guidelines issued by the stock exchanges for submission of the documents in the wake of CoVID-19 virus pandemic, this document is being submitted without signature of the aforesaid signatory i.e. with Sd/-.

DiGiSPICE Technologies Limited (Formerly Spice Mobility Ltd.) CIN - L72900DL1986PLC330369

Regd. Office: 622, 6[th] Floor, DLF Tower A, Jasola District Centre, New Delhi 110025, Tel: +91 11 41251965

Corp. Office: Spice Global Knowledge Park, 19A & 19B, Sector-125, Noida- 201301, Uttar Pradesh, India - Tel: +91 120 3355131 Email ID: Complianceofficer@smobility.in I Website: www.digispice.com