Dynamatic Technologies Ltd. — Regulatory Filings 2020

Jul 3, 2020

DYNAMATIC TECHNOLOGIES LIMITED

3 rd July 2020

• 1. The Secretary Bombay Stock Exchange Limited Phiroze Jeejeebhoy Towers Dalal Street MUMBAI 400 001. Fax No. 022 - 22723121 /3719/2037/2039/2041 /2061
• 1. The Secretary National Stock Exchange of India Limited "Exchange Plaza" Bandra - Kurla Complex Bandra East MUMBAI 400 051. Fax No.022 - 26598237 / 38 / 26598346

Dear Sir(s),

Sub: Intimation under Regulation 30 of SEBI {Listing Obligations and Disclosure Requirements) Regulations. 2015 ('the Listing Regulations') - update on impact of COVID-19 on the Company.

Ref: Scrip Code: 5052421 DYNAMATECH;

The lockdowns 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 businesses and the business operations at Dynamatic Technologies Limited (hereinafter referred to as the "Company" or "Dynamatic") have been no exception to this.

Pursuant to SEBI circular No. SEBI/HO/CFD/CMD1/CIR/P/2020/84 dated May 20, 2020 and Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform the stock exchanges and stakeholders of the impact of the pandemic COVI0-19 on the Company's business and operations and the probable consequences in the near future are summarised below:

(i) Impact of the COVID-19 pandemic. schedule, if any. for restarting the operations and steps taken to ensure smooth functioning of operations:

Operations in India:

All the operations were disrupted since mid of March, 2020 and the Company after taking requisite government permissions saw partial resumption of its Aerospace and Defence divisions since early April, 2020.

To ensure the seamless functioning of our operations, the Company has taken care to communicate with its' employees, stakeholders, customers, vendors etc. through digital communications and ensuring hassleless services to customers and proper information to shareholders. Virtual meetings and discuss adopted.

The Company is committed to the well-being, health and safety of its employees and support staff. It continues to take all the necessary measures to contain the COVID-19 pandemic and abide by the directions and advisories issued by the Central/State/Municipal Government authorities. All offices across India were shut down on the announcement of a lockdown by

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the Government and Work from Home policy was enforced by the Company. Notwithstandi~ the remote working conditions, the Company continued to maintain the spirit of collaboration and a healthy morale among employees across the organisation through regular check-ins and various engagement and support-led initiatives using virtual platforms.

Several email communications are shared with employees making them aware and guiding them to take Precautions and Safeguards during COV10-19, Recommended Measures given by Ministry of AYUSH for Immunity, enforcing wearing of masks, washing hands several time, using sanitizer, asking all employees to have 'Aarogya Setu' App installed on their mobiles and continuously follow guidelines, as prescribed by the Central or State Government, from time to time.

All the facilities, which are opening across the company, have been sanitized so that our people are safe and secure. All safety protocols of temperature sensing, wearing of safety gears (masks, goggles, face shields), social distancing, sanitizing and washing hands including COV10-19 testing are being adhered to very stringently.

International operations: Business operations inthe various international markets where the Company operates have been impacted to varying extent based on the spread of the pandemic and the restrictions on business activities placed by the respective Government authorities in these countries. At this point in time, the duration for which these restrictions will remain in place is uncertain and resumption of full-fledged operations will depend upon directives issued by the respective Government authorities.

SUDDort to Government/Society efforts in tacklinq COVID-19 pandemic: The Company has been working with and supporting the Government in its efforts to combat the COVID - 19pandemic. The Company in its efforts to aid the community at large, has made contributions largely by providing food, masks and sanitizers to the residents of the locality in and around where the company's factory is situated.

Financial resources, profitability and liquidity position:

The Company is taking all requisite measures to manage liquidity that includes cost reduction, fund management and focus on collections. The Company is looking at all available options that include long term funding and alternate working capital availability to manage liquidity in the current situation.

As an organisation, we are challenging all costs and also restructuring organisation to ensure efficiencies. In line with the prevailing market conditions and unprecedented challenges, the company has undertaken the process of cost rationalisation & various cost control measures related to sales & marketing, manpower, rentals and others to minimise the impact on business due to the pandemic.

The Company is also in constant touch with its key vendors and is working with them to mutually partner each other to propel the business forward.

(ii) Estimation of the future impact of COVID-19 on its operations:

Considering the fact that the situation is exceptional and is changing dynamically, the Company is not in a position to gauge with certainty, the future impact on its operations.

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However, the Company is confident about adapting to the changing business environme~ and respond suitably to fulfil the needs of its customers.

While the current customer sentiments and the reverse migration of the migrant workforce poses challenges, the Company is quite confident that the demand situation will pick up progressively.

(iii) 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 obligations and existing contracts and arrangements. At present, we do not foresee any contracUagreements which viill have significant impact on the business in case of non-fulfilment of obligations by any party.

The Company shall keep its stakeholders informed as and when any material developments take place having Significant impact. As the current environment is very dynamic and resultant situation is evolving, the business operations are highly influenced by the decisions taken by the Government and Regulators, from time to time. Accordingly, any material change in the business operations and its impact will be updated from time to time

This is for your information and record.

Thanking you,

For Dynamatic Technologies Limited

3P1JtA~tI

ShivaramV ~ Head - Legal, Compliance & Company Secretary

Dynamatic Park Peenya Bangalore 560 058 India Tel +91 8028394933/34/35 Fax+91 8028395823 www.dynamatics.com