Sundram Fasteners Ltd. — Management Reports 2020

Jun 5, 2020

Particulars	Disclosure
Impact of the CoVID-19 pandemic on the	business In view of the lockdown measures imposed by the
	Central and State Governments due to CoVID - 19
	pandemic, the operations of all offices and
	manufacturing facilities of the Company came to a halt
	from March 24, 2020 (Tuesday), which has impacted
	the sales performance of the Company during April and
	May 2020.
Ability to maintain operations including	the As mentioned above, the operations of all offices and
factories/units/office spaces functioning and manufacturing facilities were shut down during the
closed down	lockdown period and re-opening was initiated only after
	obtaining requisite approvals from the concerned
	authorities.
	The Company had implemented the 'Work from Home'
	policy from March 2020 as per the directions of
	Government at all its office locations. The offices have
	resumed operations with limited staff base as per the
	directives issued by the Central and State Government
	with due compliance to the guidelines on maintaining
	safe work practises.

==> picture [176 x 57] intentionally omitted <==

Particulars	Disclosure
Schedule, if any, for restarting the operations;	The Company pursuant to the requisite approvals from
	therespectiveGovernmentauthoritieshaspartially
	resumedtheoperationsinitsPlants.Thiswas
	communicated to the stock exchanges vide our letter
	dated May 6, 2020.
Steps takentoensuresmoothfunctioningof	A comprehensive Standard Operating Procedures (SOPs)
operations	wasframedcontainingthebestpracticesforstrict
	adherence and has taken all the precautionary measures
	relating to hygiene and social distancing in the areas of
	transportationofemployees,workplace,canteen,
	thoroughcleaninganddisinfectionoffactory/office
	premises tosecure the employees from any health
	hazard.
Estimation of the future impact of CoVID-19 on its	It is difficult to estimate the definitive impact of CoVID-
operations;	19 on the operations of the Company beyond Q1 of the
	fiscal year 2020-21 at this point of time.
	With the gradual phasing out of the lockdown going
	forward, the Company expects to see demand revival.
Details of impact of CoVID-19 on listed entity
	_
Capital and financial resources	The disruption caused by Covid-19 and the resultant
	lockdown has impacted the sales performance and cash
Profitability	flows. The Company has drawn up plans to cut costs
	and conserve cash.
	All the banks have assured support to the Company to
	finance the working capital requirements as and when
	needed. Some of the banks have also made available
	additional working capital or term loan support.
Liquidity position	The Company has utilised around 35% of its overall
	sanctionedworkingcapitalfacilitiesoverthelast6
	months.
	With a low gearing of 0.33 times as of December 31,
	2019, the Company has sufficient gearing headroom, to
	raise additional debt to meet its liquidity requirements.
Abilitytoservicedebtandotherfinancing	The company estimates that there will be sufficient cash
arrangements	generationtomeetitsdebtobligationsandother
	financing arrangements
Assets	There is no impact on the assets of the Company.The
	Company has adequate cushion in its balance sheet to
	absorb the anticipated slowdown in demand in the near
	term.

Particulars	Disclosure
Internal financial reporting and control	There is no impact on internal financial controls due to
	the CoVID-19 Pandemic.
Supply chain	The supply chain was disrupted in view of lockdown
	measures imposed from March 24, 2020.
	However, the situation is improving graduallywith
	Central & State Governments relaxing lockdown norms.
Demand for its Products / Services;	Thelockdown measures imposed by the Government
	had impacted the demand for the products of the
	Company. However, the Company is optimistic that
	normalcy will return in Q3 of the fiscal year 2020-21.
Existingcontracts /agreements where non-	TheCompany is well positioned to fulfil its obligations
fulfilment of the obligations by any party will have	and also does not foresee any significant impact on the
significant impact on the Company's business	business due to non-fulfilment of the obligations byany
	party.
Other relevant material updates about the	Nil
Company's business