1. COVID-19 Impact. Date: April 25, 2020.
“We cannot do anything about it – No”! We can do a lot of thingsto save ourselves and societyfor
sustainability!
COVID-19 counts in thousands below as on 24th April 2020withpossible impact on world economy amountingtoUSD 3 trillion.
Totalcases Deaths Recov ered Activ e
2 ,82 9 1 9 7 7 9 8 1 ,83 4
Im pact ofCOVID-19 on different aspects:
Su pply disru ptions
Manufacturingof goods and services
Agriculture produce
Transportation of goodsand services
Edu cation
Dem and disru ptions
Travel & Tourism
Personal consumptions
(retail, restaurants etc.)
Capital flows
Trade ofgoods and services
Financial market losses
Other disru ptions
Livelihood
Increase in violence, robbery,hatred towardsgovt
(not economically sound countries)
Em otional health impacting physical healthand confidence
(tension, insecurities, continuous home stay, depression etc.)
Dom esticviolence
Pay cuts, employee firings
Im pact on Financial Reporting
(additional cost for assessment, possible non-compliance and defaults)
Increased costs
Increased cost ofraw materialsand services(essential production)
Prevention cost (maintaininghygiene and stockingup vaccine, sanitizers etc.)
Personal costs(Internet,web contentsubscriptions, increased consumption of food athome)
Diagnosisand treatment
Behav ioral changes
Consumer preferences
Corporate working model (WFH, Videocon meetings, humancapital management and growth)
Fear of getting affected by virus
(as thisis along battle)
Continued social distancingfor few quarters
Increased/decreased spending patterns on various sectorsin economy(travel, food)
Strategies:
Possible strategies for corporatesand or organizations (evaluate, device, forecast etc- includingbutnot limited to):
1. Factoringof receivables
2. Renegotiate termswith debtors /creditors-delayed payment terms, discounton upfrontpayments, terminate agreements
w ithoutpenalty, reduce purchase commitments etc.
2. 3. Ev aluate workingcapital and develop a strategy for alternative sourcesof capital (Incase conventional sources are not
feasible like bank loans, includingassessmentof debt instruments consideringexpectations regardingprepayment,
extension or conversion toequity features
4. Restructuring- partclosure, downsizing
5. Government reliefpackages
6. Increased hedgingon foreigncurrency receivable and payables(net exposure)
7. Repricingproductsand servicesfor continued demand
8. Insurance claimsfor disruption of profits and business(if policy available)
9. Continue motivatingemployeesand avoid firing, pay cutsfor mid-level below grade employees
10. Termination benefitsand voluntaryexitplans
11. Continued CSRincludingdonations
Possible strategies for individuals (including but not limited to):
1. Catchup withhobby to maintaina balance. (Readingbooks, singing,playing instrument, learning new things, cooking)
2. Post-pone all non-essentials travel, parties, purchases etc
3. Help poor in society to the extent possible
4. Follow governmentnormsand social distancing strictly
5. Report symptoms instead of treatingindividually
6. Plan source offunds from relatives in case of emergency
Possible strategies for poor, needy, wage workers, BPL category (includingbut not limited to):
1. Will mainly have todepend on government relief package apart from help from police, military and society
2. Follow governmentnormsand social distancing to the extent possible (considering non affordability ofseparate
bathrooms, roomsetc.)
3. Refrainfrom creating violence on WhatsApp messages, rumors, and mob events
