Heritage Foods Limited

Heritage Foods Limited 60 However, the availability of raw materials and the supply chain of the company are not a ff ected The Company has taken conscious decision to balance uninterrupted operations and ensuring a safe working environment. The company is continuously ensuring a safe working environment to its employees by sanitizing its work place regularly. Your Company has complied with the COVID-19 guidelines issued by the Government of India and the respective State Governments. In view of the same and considering the MCA circulars, your Company will be convening the 29 th AGM through VC/ OAVM without the physical presence of the members at a common venue. However the deemed venue for the AGM shall be the Registered O ffi ce of the Company. Schedule, if any, for restarting the operations; Since the Company’s operations are fully functional, this question does not arise. Steps taken to ensure smooth functioning of operations The Company has put in place strict monitoring process for Covid-19 precautions ensuring the following • Sanitizing the premises and vehicles on regular basis • Maintenance of social distancing at all work places • Enforcing wearing of masks and regular cleaning of hands with soap water • Regular update of the health of all the employees and their families • Thermal scanning of all the employees while entering the o ffi ce premises • Asking all employees to install Aarogya Setu App and follow the instructions thereof The Company has been regularly conducting awareness programs for all its employees. All employees of the Company have been communicated about the measures taken by the Company through mails and video conferencing calls, virtual town-hall meetings which includes video-clip discussions from the desk of Vice Chairperson & Managing Director and Executive Director of the Company explaining about the steps required to be taken by individuals to maintain safety. Estimation of the future impact of CoVID-19 on its operations; As explained above, due to COVID-19 there has not been any material adverse impact on the Company’s performance in terms of top-line and bottom-line. Capital and fi nancial resources The Company does not plan to raise any capital in the near future and hence there is no impact. Presently, the Company doesn’t need any additional funding fromBanks/ Financial Institutions. However, already sanctioned long-term loans and working capitals are honoured by the Banks/ Financial Institutions without any additional rate of interest and covenants. During the Financial year 2020-21 the company has prepaid its Long Term Loans and Debts amounting to ` 1771.93 million. Pro fi tability , As mentioned earlier, the pro fi ts are not adversely impacted. The transportation segment which acts as an enabler is marginally impacted. As of now, it can be concluded that the Covid-19 impact on pro fi ts will not be material. However the company has recorded highest ever pro fi t before tax for the fi nancial year 2020-21. Liquidity position The Company operates on cash-and-carry basis of its substantial business, however collection from some of the debtors has been impacted marginally with some of the customers requested for a deferred payment schedule which the company keeping in mind the long term relationship has accepted. The Company has been meeting all its fi nancial obligations. Ability to service debt and other assets / fi nancing arrangements The Company has not availed moratorium for any of its installment payments and has never defaulted on any interest or loan installment and does not see any issue meeting future obligations too. None of the assets of the Company have been impacted or impaired by the Covid-19. Internal fi nancial reporting and control The Company has robust Internal Financial Control (IFC) system in place and all its locations are well networked with S4 Hana SAP System. Even during the lockdownwith a combination of sta ff working from the plants and/ o ffi ces etc., and all others working from home, all reporting systems worked seamlessly without any disruption