Cambridge Technology intimates about impact of Covid-19 on business operations; Stock jumps 5%

The company is open to the hiring process to fill required positions, if any, available.

Jun 30, 2021 12:06 IST India Infoline News Service

Cambridge Technology Enterprises Ltd has informed the exchange regarding impact of Covid in the business operations. 

Impact of the COVID-19 pandemic on the business:
According to the regulatory filing, "All offices of Cambridge Technology Enterprises and its subsidiaries were closed pursuant to Govt. orders of respective regions during last year. The Company was able to seamlessly transition to the work from home protocols and have been following it diligently since late March 2020.

The operations of the Company were not affected as operations are manageable remotely and with minimal human intervention from remote locations. All the customers were serviced as usual, said company."

As a business the company has so far, had minimal impact on existing accounts in 2020-21 but notice drop in spending by most customers.

"In anticipation of impact on growth, we made some tough business decisions including freeze in hiring (except for only essential), hikes, and non-essential spending until end of the year 2020. The current Covid-19 spikes have again added to business uncertainty, which may impact existing & new account acquisition and growth in 2021-22.

However, the company decided to go ahead with increments and has announced a salary hike for all its employees, eligible for the same with increment letters. The new hikes for financial year 2021-22 will be effective from April 01, 2021 across all geographies. Also, the company is open to the hiring process to fill required positions, if any, available," as confirmed by the company.

Further, the company is trying to introduce new tools and policies in consultation with its account managers to ensure compliance & adherence to evolving Customer specific security requirements.

The company has considered the possible effects that may result from the pandemic relating to Covid-19 in the preparation of financial statements as on March 31, 2021 including the recoverability of carrying amounts of financial and non-financial assets.

In developing the assumptions relating to the possible future uncertainties in the global economic conditions because of this pandemic, the Company has, at the date of approval of financial statements for the financial year ended March 31, 2021, used internal and external sources of information including credit reports and related information and economic forecasts and expects that the carrying amount of these assets will be recovered.

The impact of Covid-19 on the Company’s said financial statements may differ from that estimated as at the date of approval of these financial statements.

At around 12:27 PM, Cambridge Technology was trading at Rs35.95 per piece up by Rs1.7 or 4.96% on Sensex.

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