Assignment: Subject Foreign Exchange Management

ASSIGNMENT
ON
IMPACT OF COVID 19 ON INDIAN MNC’S WITH INTERNATIONL
ENTITIES
SUBJECT - Foreign exchange Management
SUBMITED TO SUBMITTED BY
Miss. Ritu Singh Kartikey Dubey
1170678057
Covid-19 impact: Opportunity to boost
international supply chains, says India Inc
Mumbai: The outbreak of the novel coronavirus in China, the factory of the
world, could be an opportunity to acquire new markets for Indian
manufacturing besides a lesson in risk management, several industrialists said
at an event here on Thursday.
“We have a sudden hidden bonus in the form of coronavirus, which has created
a deep awareness within people across the world about exposure and risk that
they will face for being solely dependent on China,” said Amit Kalyani,
executive direct ..
“This is the time for India to analyse and work on where we are good at, and
where we have the raw materials and resources needed to quickly capture at
least 10%-40% of the opportunity arising now,” he said at the annual meeting
of Confederation of Indian Industry (CII).
R Mukundan, managing director of Tata Chemicals, said companies should

analyse their international competitors’ supply chains and see what new places
could be occupied. “This is a once in a lifetime opportunity,” he said.
One of the things that have been highlighted in the past few weeks was the over-
dependence of Indian manufacturing on China. India imported about $90
billion, or approx. Rs 6.6 lakh crore, worth of good from China in 2018 alone,
according to World Bank data.
Jamshyd Godrej, managing director of Godrej and Boyce, said companies need
to make more in India. “There are so many components that are imported from
China only because they have the scale and thus cost advantage,” he said.
The crisis following the Covid-19 outbreak is also a lesson for Indian
companies in assessing risks to their business, some entrepreneurs said.
“Risk management in a business has to be done on a more comprehensive basis,

and look at not just monetary risks,” said Vikram Kirloskar, vice chairman at
Toyota Kirloskar Motors and president of CII.
He recounted how global manufacturing was impacted in the past due to the
concentration of manufacturing of certain components in one place, like when a
tsunami hit Japan in 2011. Kirloskar said many factories have started resuming
operations in China and the disruption should get over soon.
COVID-19 impacts professional life: Jobs

at MNCs to be most vulnerable; virus
affects hiring
The virus likely to affect professionals working in marketing, sales, operation and
production domains.
As companies are implementing measures to curtail the spread of coronavirus
infections in the country, a survey has revealed that majority of professionals
believe the outbreak has adversely impacted their way of working.
Around 63 per cent of respondents affirmed that the novel coronavirus or

Covid-19 pandemic has influenced their way of working and about 33 per cent
said they have shelved their business travel plans due to this, a TimesJobs
survey titled 'Coronavirus and its impact on jobs' has revealed.
The survey was done among 1,256 working professionals from different
industry verticals across the country.
Further, the survey revealed that 27 per cent of respondents claimed that the IT
sector will be worst hit by the spread of the virus, followed by the import and
export sector (stated 23 per cent of respondents).
While, 13 per cent of respondents said the healthcare sector and the aviation
sector will be most impacted by the Coronavirus outbreak, it added.
The survey respondents also said this outbreak will impact professionals
working specifically in the marketing and sales, operation and production
domains.
A majority (67 per cent) of the surveyed professionals stated that jobs at the
multinational companies (MNCs) will be most vulnerable during the time.
Almost 45 per cent of professionals claimed that the spread of Covid-19 will
have a negative impact on the hiring activities across different industry
verticals, it added.
Meanwhile, around 64 per cent of the professionals said their companies are
taking active measures to fight the pandemic, including putting up relevant
advisories, installation of sanitisers and cleansers at touch points, increasing
cleanliness measures in offices, among others.
Surprisingly, the survey revealed that work-from-home has ranked last in the
measures being implemented by the Indian organisations.
"The spread of the novel coronavirus has hit the businesses across the globe. In
such difficult times, companies should focus on employee welfare.
Organisations should be vigilant and take practical measures to ensure the
safety of employees at workplaces," TimesJobs and TechGig Business Head
Sanjay Goyal added.
WHAT THE MNC EMPLOYEES SAY
Kartik Singh, who works with a US-based tech firm in Noida, said, "All of us
have been advised to work from home. Inside office doors are kept open so that
no one has to hold the handles. Masks have been distributed and hand sanitisers
are placed at the reception and many other places inside the office." He added a
general awareness programme was conducted with a doctor on WebEx.
"Frequency of floor cleaning has increased. Posters on how to clean hands with
soap are displayed all over. Office sanitisation is being done with a sprinkling
of some alcoholic solution," he said.
NATIONAL SCENE
The situation is similar in private sector offices in other parts of the country too.
IT services provider Cognizant India has temporarily closed its Hyderabad
office and asked its employees to work from home. The company's office is
situated in Raheja Mindspace, a major IT park in Hyderabad.
The company, in an email sent to its associates on Wednesday, said that it is
shutting its office as an employee of another company in the same building was
tested positive for COVID-19. The IT services provider further stated that it is
closing the office for disinfection and sanitisation. The IT services provider also
clarified in the email that "no Cognizant associate is known to have contracted
the virus." The company added that it has asked all its employees "working out
of Building 20 of Raheja Mindspace to work from home until further notice."
The total number of positive cases of COVID-19 is now 30. These include the
previous three cases from Kerala, who have now been discharged. In addition,
there are three from Delhi and NCR, (two with travel history from Italy, and
one with travel history of Iran); six contacts of the first Delhi case with travel
history of Italy; one from Telangana with history of Dubai travel and Singapore
contact; 16 Italians and one driver (Indian).
Auto industry stares at $2 bn loss, as

factories and dealers shut shop to stem
Covid-19 contagion
Companies expect loss of about 750,000 units in production in March alone due to covid outbreak.
The automotive industry is expecting a loss of 7.5 lakh units in production and
$2 billion in revenue in March alone because of the lockdowns to combat the
Covid-19 outbreak. Despite the tough business environment, several
automakers ET spoke to said they would not lay off any permanent or
temporary workers. The government has also told India Inc to not cut jobs or
salaries.
Production has come to almost a standstill, as state governments have imposed

lockdowns and companies themselves shut their factories to help break the
chain of the coronavirus outbreak. Since these measures will remain in place at
least until the end of March, companies are sure to lose a third of the output for
the month. And, more than half a dozen industry executives and experts ET
spoke to said even an improvement in the Covid-19 situation wouldn’t bring
much respite to the industry in Apri as it would take a while for consumer
confidence to become normal.
Mahindra & Mahindra managing director Pawan Goenka said pretty much
everything would be shut down in the coming few days. “These are unusual
times and we need to conserve cash, and Mahindra is looking at multiple ways
to deal with the situation,” he said.
“One really does not know when things will return to normal. But going by the
experience of China, Korea and other markets, at least a month of business is
likely to be disrupted,” he said. “There will be a period of time when companies
won't be generating revenue and there will be some level of fixed expense that is
incurred and that will drain the P&L for everyone. Nobody is spared.”

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ASSIGNMENT

SUBJECT - Foreign exchange Management

R Mukundan, managing director of Tata Chemicals, said companies should

“Risk management in a business has to be done on a more comprehensive basis,

COVID-19 impacts professional life: Jobs

Around 63 per cent of respondents affirmed that the novel coronavirus or

WHAT THE MNC EMPLOYEES SAY

Auto industry stares at $2 bn loss, as

Production has come to almost a standstill, as state governments have imposed

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