Sarine Update on Covid-19 Outbreak in India

Currently no material impact on Group's business activities 

Sarine Technologies Ltd updates its investing public on the ramifications of the current Covid-19 outbreak in India. The latest outbreak of Covid-19 in India has not yet had any material effect on our business. Though Mumbai, the centre of the polished diamond trade in India, is currently under lockdown, the diamond trade and bourse have been exempted. 

As for Surat, where the diamond cutting and polishing operations are located, there have not yet been any new official directives pertaining to the diamond industry, beyond the night time curfew, which has been in force from before the current outbreak. The curfew has had little to no effect, as the manufacturers' night shifts typically start before the curfew and end afterwards. 

The only marginal impact on our business has been the very minor absence (around 5%) of workers who are either ill or in quarantine, having been exposed to sick or possibly sick persons. 

There is no impairment to our global operations due to these absent employees, beyond the effect on their local responsibilities, which are, essentially, support of our local Indian customers. During May there is a seasonal shutdown in India for the summer vacation, which typically lasts 2-3 weeks. 

Thus, we currently do not foresee any significant impact on our business going forward into May, as well. We note that if the current health situation is not alleviated, the May summer break may be extended for the entire month's duration, or, possibly, beyond. The current situation in India is very dynamic and, though we follow developments closely on a daily basis, we have little insight into how or what future developments will be. There is, however, an ongoing global response underway to assist the Indian authorities control the outbreak. 

We are strictly adhering to all health directives issued by the authorised Indian local, state and federal authorities. We are, of course, curtailing all travel by our staff to or from India and are utilising, to the utmost possible, online support measures implemented last year to support our customers, so as to minimise the exposure of our staff to possible contagion. 

We would like to emphasise that, contrary to last year, when the entire industry came to a virtual standstill due to global lockdowns and the cessation of retail activities essentially worldwide, the current crisis, from the diamond industry perspective, is limited to India, as the appetite for diamond jewellery remains strong in key consumer markets in the U.S. and the Asia-Pacific region (together roughly two thirds of total global demand).