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Camlin Fine Sciences Ltd Interim / Quarterly Report 2022

Aug 13, 2021

59255_rns_2021-08-13_74765f75-6109-41a2-8b05-62953a600e29.pdf

Interim / Quarterly Report

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13th August, 2021

To, To,
BSE Limited, Listing Department,
25, P. J. Towers, National Stock Exchange of India Ltd.,
Dalal Street, Exchange Plaza, Bandra Kurla Complex,
Mumbai – 400 001 Bandra (East), Mumbai‐ 400051
Ref: Company Scrip Code: 532834 Ref: Symbol: CAMLINFINE Series: EQ

Dear Sir/Madam,

Sub: Outcome of the Board Meeting

The Board of Directors ("Board") of the Company at its meeting held today i.e. , August 13, 2021,has inter alia, taken note and approved the Un‐Audited Financial Results (Standalone and Consolidated) for the first quarter ended June 30, 2021. The Un‐Audited Results along with Limited Review Reports are enclosed herewith as (Annexure‐ I).

The Board has also, at its meeting held today, taken on record the resignation tendered by Mr. Mandar Godbole as the Company Secretary & Compliance Officer of the Company.

Reason for change Resignation due to personal reasons
Effective date of resignation End of business hours on August 31, 2021.

The meeting commenced at 12:30 P.M and concluded at 2.40 P.M. Kindly take the above information on your records.

Encl.: a/a Thanking You, For Camlin Fine Sciences Limited

Mr. Mandar Godbole GM Legal, Company Secretary & Compliance Officer

YEARQUARTER ENDEDENDED QUARTER ENDED YEARENDED
PARTICULARS 30.06.2021 31.03.2021 30.06.2020 31.03.2021 30.06.2021 31.03.2021 30.06.2020 31.03.2021
(Unaudited) (Audited)(Refer Note 2) (Unaudited) (Audited) (Unaudited) (Audited)(Refer Note 2) (Unaudited) (Audited)
Revenue from operations 14,572.85 16,845.92 12,116.94 60,004.83 33,082.64 32,662.41 30,574.39 118,710.31
Other income 383.20 173.67 99.09 546.83 1,054.96 209.30 46.62 498.42
Total income 14,956.05 17,019.59 12,216.03 60,551.66 34,137.60 32,871.71 30,621.01 119,208.73
Expenses
Cost of materials consumed 7,965.38 9,001.42 8,221.07 38,417.99 19,328.26 14,834.38 9,954.17 48,803.22
Purchase of stock in trade 277.23 1,250.64 7,813.59
Changes in inventories of finished goods/WIP/stock in trade 1,732.00
1,130.09 3,275.77 2,538.95 12,038.31
Finance costs 960.64 992.07 860.70 3,253.65 1,013.24 1,209.80 1,055.27 3,752.77
Depreciation and amortisation expense 644.09 656.29 305.76 1,928.30 1,341.14 1,182.61 948.06 4,429.42
30,129.85
108,699.16
Profit before exceptional items and share of profit / (loss) ofassociate (3-4) 696.55 589.82 560.57 1,552.14 3,257.13 2,860.42 3,151.27 10,509.57
Exceptional items 50.32 50.32
Profit before share of profit / (loss) of associate (5-6) 696.55 589.82 510.25 1,501.82 3,257.13 2,860.42 3,151.27 10,509.57
Share of profit / (loss) of associate ٠ ٠ (2.40) 0.06 0.06
Profit before tax (7-8) 696.55 589.82 510.25 1,501.82 3,254.73 2,860.48 3,151.27 10,509.63
Tax Expenses
Current tax 125.35 109.89 91.94 277.92 830.43 882.30 845.58 2,735.69
Deferred tax 97.98 266.41 37.43 395.78 46.64 406.45 1,238.14
3,973.83
Profit for the period (9-10) 473.22 213.52 380.88 828.12 2,377.66 1,571.73 2,055.99 6,535.80
Other comprehensive income
(55.36)
10,021.92
(ii) Income tax relating to Items that will not be reclassified toprofit or loss (3.16) 5.70 (2.15) 11.49 (3.16) 7.71 (2.15) 13.50
(i)
Exchange differences on translating the financial statements offoreign operations 334.65 1,369.98
(ii) Income tax relating to Items that will be reclassified to profit orloss ٠ ٠ ٠
Other comprehensive income 5.87 (27.18) 4.00 (37.97) 340.52 9,302.44 463.55 11,350.04
479.09 186.34 384.88 790.15 2,718.18 10,874.17 2,519.54 17,885.84
(i) 2,235.70 1,426.53 1,538.81 5,096.34
141.96 145.20 517.18 1,439.46
10,936.97
210.34 (151.96) 110.88 413.07
2,365.88 10,880.93 1,891.48 16,033.31
352.30 (6.76) 628.06 1,852.53
1,212.54 1,274.98
63,065.10
4.13
Diluted (Rs) 0.31 0.15 0.31 0.60 1.48 1.03 1.27 3.68
(i)(i)(ii)(i)(ii) Employee benefits expenseOther expensesTotal ExpensesI ltems that will not be reclassified to profit or lossRemeasurements of defined benefit plansChanges in revaluation surplusItems that will be reclassified to profit or lossTotal comprehensive income for the period (11+12)Profit / (loss) attributable to:Owners of the Company(ii) Non-controlling interestsOther comprehensive income attributable to:Owners of the CompanyNon-controlling interestsTotal comprehensive income attributable to:Owners of the CompanyNon-controlling interestsPaid-up Equity Share Capital (Face Value Re.1/- per share)Other EquityEarnings per Share (EPS) (of Re.1/-each) (not annualised)Basic (Rs.) 246.033,036.0414,259.50223.339.031,275.910.37 291.531,151.513,086.3116,429.77376.30(32.88)1,274.980.17 30.80(576.98)706.352,107.7611,655.46129.376.151,212.540.31 1,604.49(2, 182.59)3,869.8612,107.8258,999.52673.70(49.46)1,274.9845,188.570.67 1,325.98(2,354.75)6,950.8330,880.47877.079.03130.181,275.911.75 1,061.33699.663,511.017,512.5030,011.291,288.75(38.78)10,021.92(688.41)9,454.401,274.981.16 3,547.962,827.326,598.0127,469.74249.701,095.286.15459.55352.671.27

$\binom{5}{2}$ +91 22 6700 1000

Registered Office:

DI. +91 22 2832 4404

Camlin Fine Sciences Ltd. F/II-12, WICEL, Opp. SEEPZ, Central Road, Andheri East, Mumbai 400 093, India.CIN: L74100MH1993PLC075361 | ISO 22000 Certified Company

[email protected]

www.camlinfs.com

Ł

Notes to financial results:

1 The above results which are published in accordance with Regulation 33 of the SEBI (Listing Obligation & Disclosure Requirements), 2015, as amended, have been reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on August 13, 2021. The financial results are in accordance with the Indian Accounting Standards (Ind AS) as prescribed under Section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015, as amended from time to time.

2 The figures for the quarter ended March 31, 2021 as reported in these results are the balancing figures between audited figures in respect of the year ended March 31, 2021 and the published year to date figures up to the end of the third quarter of the relevant financial year. Also, the figures upto the end of the third quarter had only been reviewed and not subjected to audit.

3 Other income / Other expense above includes net foreign exchange gain / (loss) for each reporting period as under:

Particulars STANDALONE CONSOLIDATED
OUARTER ENDED OUARTER ENDED
30.06.2021 31.03.2021 30.06.2020 31.03.2021 30.06.2021 31.03.2021 30.06.2020 31.03.2021
(Unaudited) (Audited)(Refer Note 2) (Unaudited) (Audited) (Unaudited) (Audited)(Refer Note 2) (Unaudited) (Audited)
Other Income 268.37 104.57 0.63 986.41
Other Expense 872.68 88.63 321.87 1,488.52
Total Exchange gain / (loss) 268.37 104.57 0.63 (872.68) 986.41 (88.63) (321.87) (1,488.52)

4 Finance costs include foreign exchange gain / (loss) for each reporting period as under:

Particulars STANDALONE CONSOLIDATED
OUARTER ENDED OUARTER ENDED
30.06.2021 31.03.2021 30.06.2020 31.03.2021 30.06.2021 31.03.2021 30.06.2020 31.03.2021
(Unaudited) (Audited)(Refer Note 2) (Unaudited) (Audited) (Unaudited) (Audited)(Refer Note 2) (Unaudited) (Audited)
Exchange gain 224.79 20.28 588.66
Exchange loss 98.30 25.20 20.57 42.26 76.74
Total Exchange gain / (loss) (98.30) (25.20) (20.57) 224.79 (42.26) (76.74) 20,28 588.66

5 During the quarter ended June 30, 2021, the Company has issued and allotted 92,900 equity shares of Re.1 each respectively at a premium of Rs. 49 per equity share aggregating to INR 46.45 lakh under Employees Stock Option Scheme, 2018 (ESOP-2018). No employee stock options under ESOP -2018 or ESOP -2020 have lapsed during the quarter ended June 30, 2021.

6 Supreme People's Court of China vide its judgement dated February 19, 2021 had imposed a penalty of RMB 159.32 million (about USD 25 million / INR 18,000 lakh) including right protection cost of RMB 3.49 million (about USD 0.55 million / INR 390 lakh) on our JV partner Wanglong Technology (being 49% stake holder in Company's subsidiary CFS Wanglong Flavors (Ningbo) Co., Ltd. (CFSWL) & others for alleged infringement of intellectual property used in the process for manufacturing Vanillin. Further, 7% of the aforesaid penalty amounting to RMB 11.15 million (about USD 1.70 million / INR 1,265 lakh) had also been levied to the subsidiary Company. Consequent to the Order, as an abundant legal caution, the production of Vanillin at the subsidiary's manufacturing facility in China has been stopped till further directions of the Court.

In the opinion of the management, based on the discussions with the JV Partner, the findings and allegations of the Honourable Court are not based on the facts and that the order passed by the Court is arbitrary. As a co-defendant with the JV Partner, the subsidiary company has preferred an application for retrial of the aforesaid order before Supreme People's Court of China which is likely to be heard in last week of August 2021. Process has also been initiated to move the Court to stay the processing of above order until the retrial application is heard. The management is confident of a favourable decision in the retrial proceedings and that no penalty will be sustained and that consequently the production is expected to restart in a very near future.

Further in terms of the shareholders' agreement dated April 28, 2017 and its subsequent amendments, Company and its subsidiary, CFSWL are indemnified against penalty and or legal consequences emanating from the violation of IP rights.

Under these circumstances, no impairment of the investment value of CFSWL and or other receivables is envisaged at this juncture in standalone financial results. Similarly, no impairment of goodwill and / or property, plant and equipment is envisaged in the consolidated financial results.

7 Company / Group has considered the possible effects that may result from the pandemic relating to COVID-19 in the preparation of the financial results 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 / Group, has used internal and external sources of information on the expected future performance of the Company and the Group, its ability to meet its liabilities and in assessing the recoverability and carrying values of its assets. There is no material change in the internal control environment in the group. The impact of COVID-19 on the Group's financial results may differ from that estimated as at the date of approval of these consolidated financial results.

8 The Company's operations constitute a single business segment in Fine Chemicals.

9 Figures for previous periods have been regrouped/rearranged wherever necessary.

Place: Lonavala Date: August 13, 2021

FOR CAMLIN FINE SCIENCES LIMITED

$\overline{r}$ $\overline{r}$ $\overline{r}$ $\overline{r}$

Ashish S. Dandekar Chairman & Managing Director

$\bullet$

Registered Office:

CIN: L74100MH1993PLC075361 | Camlin Fine Sciences Ltd. F/11-12, WICEL,

ISO 22000

Certified

Company

Opp. SEEPZ, Central Road,

Andheri East, Mumbai 400 093, India

.com

www.camlinfs.com

CHARTERED ACCOUNTANTS

To,

z< .!_I.. ~~BAh:;o A )"'(

The Board of Directors Camlin Fine Sciences Limited, WICEL, F-11112, Opp. SEEPZ Main Gate, Central Road, SEEPZ, Andheri- (East).

LIMITED REVIEW REPORT

    1. We have reviewed the accompanying Statement of Unaudited Standalone Financial Results of Camlin Fine Sciences Limited ("the Company"), for the quarter ended June 30, 2021. This statement which has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34 'Interim Financial Reporting' ("Ind AS 34"), prescribed under Section 133 of the Companies Act, 2013, read with relevant rules issued thereunder, as applicable and other accounting principles generally accepted in India is the responsibility of the Company's Management and has been approved by the Board of Directors. Our responsibility is to issue a report on these financial statements based on our review.
    1. We conducted our review of the Statement in accordance with the Standard on Review Engagement (SRE) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity", issued by the Institute of Chartered Accountants of India. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the financial results are free of material misstatement. A review is limited primarily to inquiries of company personnel and analytical procedures applied to financial data and thus provide less assurance than an audit. We have not performed an audit and accordingly, we do not express an audit opinion.
    1. Based on our review conducted as above, nothing has come to our attention that causes us to believe that the accompanying Statement of Unaudited Standalone Financial Results prepared in accordance with the applicable accounting standards and other recognized accounting practices and policies has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 including the manner in which it is to be disclosed, or that it contains any material misstatement.
    1. Attention is drawn to the fact that the figures for the 3 months ended March 31, 2021 as reported in these financial results are the balancing figures between audited figures in respect of the full previous financial year and the published year to date figures up to the third quarter of the previous financial year. The figures up to the end of the third quarter of previous financial year had only been reviewed and not subjected to audit.
    1. We draw attention to Note 6 to the Financial Results relating to the decision of the Supreme People's Court of China which has imposed penalty amounting to RMB 159.32 million on the JV partner in the subsidiary company and others for alleged infringement of intellectual property used in the manufacturing process. An amount of RMB 11 .15 million i.e. INR 1265 lakh which is 7% of the total penalty imposed is attributed to the subsidiary i.e. CFS Wanglong Flavours (Ningbo) Co. Ltd. As an abundant legal caution, the Company has stopped the production facility till further directions of the court. As per the terms of the shareholders' agreement dated April 28, 2017 and amendments made thereafter, the subsidiary company ~1o1..its subsidiary company are indemnified against penalty and or legal consequences emanating from v(f'-t lation of the IP rights. As a co-defendant with the JV Partner, the subsidiary company has preferred S:/ ~

an application for retrial of the aforesaid order before Supreme People's Court of China. In the opinion of the Management, based on the above and for reasons as more fully discussed in the aforesaid note, no impairment of the investment value or in respect of other receivables from the subsidiary company is required.

Our opinion is not modified in respect of these matters.

For KAL YANIWALLA & MISTRY LLP CHARTERED ACCOUNTANTS Number 104607W/Wl00166

FARHADM. PARTNER Membership Number 127355 UDIN: 21127355AAAAGY1716

Place: Mumbai Date: August 13, 2021

CHARTERED ACCOUNTANTS

To, The Board of Directors Camlin Fine Sciences Limited WICEL, F-11112, Opp. SEEPZ Main Gate, Central Road, SEEPZ, Andheri- (East), Mumbai-400096

LIMITED REVIEW REPORT

    1. We have reviewed the accompanying Statement of Unaudited Consolidated Financial Results of Camlin Fine Sciences Limited (the "Parent"), and its subsidiaries (the Parent and it's subsidiaries together referred to as "the Group") and associates for the quarter ended June 30, 2021 ("the Statement"), being submitted by the Parent pursuant to the requirement of Regulation 33 of the Securities and Exchange Board of India ("the SEBI") (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.
    1. This Statement, which is the responsibility of the Parent's Management and approved by the Parent's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34 'Interim Financial Reporting' ("Ind AS 34"), prescribed under Section 133 of the Companies Act, 2013, read with relevant rules issued thereunder, as applicable and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review.
    1. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity', issued by the Institute of Chartered Accountants of India. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the financial results are free of material misstatement. A review is limited primarily to inquiries of company personnel and analytical procedures applied to financial data and thus provide less assurance than an audit. We have not performed an audit and accordingly, we do not express an audit opinion.

We also performed procedures in accordance with the circular issued by the SEBI under Regulation 33 (8) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, to the extent applicable.

    1. Attention is drawn to the fact that the figures for the 3 months ended March 31, 2021 as reported in these financial results are the balancing figures between audited figures in respect of the full previous financial year and the published year to date figures up to the third quarter of the previous financial year. The figures up to the end of the third quarter of previous financial year had only been reviewed and not subjected to audit.
    1. We draw attention to Note 6 to the Financial Results relating to the decision of the Supreme People's Court of China which has imposed penalty amounting to RMB 159.32 million on the JV partner in the subsidiary company and others for alleged infringement of intellectual property used in the manufacturing process. An amount of RMB 11.15 million i.e. INR 1,265 lakh which is 7% of the total penalty imposed is attributed to the subsidiary i.e. CFS Wanglong Flavours (Ningbo) Co. Ltd. As an abundant legal caution, the Company has stopped the production facility till further directions of the t:Jl:R:· As per the terms of the shareholders' agreement dated April 28, 2017 and amendments made

thereafter, the subsidiary company and its subsidiary company are indemnified against penalty and or legal consequences emanating from the violation of the IP rights. As a co-defendant with the JV Partner, the subsidiary company has preferred an application for retrial of the aforesaid order before Supreme People's Court of China. In the opinion of the management, based on the above and for reasons as more fully discussed in the aforesaid note, no impairment of cash generating unit consisting of property, plant and equipment of the said subsidiary or on goodwill on consolidation in respect of the said subsidiary company is required.

Our opinion is not modified in respect of this matter.

    1. The Statement includes the results of the following entities:
    • i. CFS Europe S.p.A.
    • ii. CFS Do Brasil Importacao E Exportacao De Aditivos Alimenticios L TDA
    • ui. Solentus North America Inc
    • iv. CFS North America LLC
    • v. Dresen Quimica, S.A.P.I. de C.V.
    • vi. !novel, S.A.S.
    • vii. Industrias Petrotec De Mexico S.A De C.V.
    • vni. Nuvel, S.A.C.
    • ix. Britec, S.A.
    • x. Grinel, S.R.L.
    • xi. Chemolutions Chemicals Ltd.
    • xii. CFS Wanglong Flavours (Ningbo) Co. Ltd.
    • xui. CFS Argentina S.A.
    • xiv. CFS Chile S.p.A
    • xv. CFS Pahang Asia Pte Ltd.
    • xvi. Fine Lifestyle Brands Ltd.
    • xvii. AlgalR NutraPharma Private Limited
    1. Based on our review and procedures performed as stated in paragraph 3 above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in the aforesaid Ind AS and other accounting practices generally accepted in India, has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, including the manner in which it is to be disclosed, or that it contains any material misstatement.
    1. We did not review the interim financial results of eleven subsidiaries incorporated outside India and a subsidiary in India included in the consolidated unaudited financial results, whose interim financial results reflect total revenues of Rs. 21,856.94 lakh, total net profit after tax of Rs. 1, 706.44 lakh and total comprehensive income of Rs. 414.99 lakh. The Consolidated financial results for the quarter ended June 30, 2021, also includes share of net profit of Nil in respect of an associate whose interim financial results were not reviewed by us. These interim financial results have been reviewed by other auditors whose reports have been furnished to us by the Management and our conclusion on the Statement, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries and an associate, is based solely on the reports of the other auditors and the procedures performed by us as stated in paragraph 3 above.

auditing standards applicable in their respective countries. The Company's management has converted the interim financial results of such subsidiaries located outside India from accounting principles generally accepted in their respective countries to accounting principles generally accepted in India (Indian Accounting Standards "Ind AS"). We have reviewed these conversion adjustments made by the Company's management. Our conclusion in so far as it relates to the balances and affairs of such subsidiaries located outside India is based on the report of the other auditors and the conversion adjustments made by the management of the Company and reviewed by us.

Our conclusion on the statement is not modified in respect of the above matters.

  1. The Statement includes interim financial results of three subsidiaries incorporated outside India included in the consolidated unaudited financial results, whose interim financial results reflect total revenue of Rs. 512.47 lakh, total net profit after tax of Rs. 36.35 lakh, total comprehensive income of Rs. (22.94) lakh. The Statement of financial results for the quarter ended June 30, 2021, also includes share of net loss of Rs. 2.40 lakh in respect of an associate. These interim financial results of three subsidiaries and an associate are not reviewed as of the date of this report and have been included in the interim financial results on the basis of the Unaudited Management Accounts. According to the information and explanations given to us by the management, these interim financial results are not material to the Group.

Our report on the Statement is not modified in respect of our reliance on the Unaudited Management Accounts and other financial information furnished by the management.

For KAL YANIW ALLA & MISTRY LLP CHARTERED ACCOUNTANTS Firm Registration Number 104607W/W100166

FARHAD M. HESANIA PARTNER Membership Number 127355 UDIN: 21127355AAAAGZ5901

Place: Mumbai Dated: August 13, 2021

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STATEMENT O F UNAUDITEDFI NANCIAL RES ULTSFOR THE QUARTEREN DED JUNE 30, 2021 .inkh(RsLa)
PARTICULARS STANDA LONE CONSOLIDATED
QUARTERENDED YEARENDED QUARTERENDED YEARENDED
No 30.06.2021(dited)Unau 31.03.202130(Audited)( .06.2020 31.03.2021(Audited) 30.06.2021 31.03.2021 30.06.2020(dited)Unau 31.03.2021
Undited)au (Undited)au (Audited) (Audited)
1 TotalIne fOionratcomrompes 14,572.85 16,845.92 12,116.94 60,004.83 33,082.64 32,662.41 30,574.39 118710.31,
2 Net Profit fdintivitiefter taromoraryacs ax 473.22 213.52 380.88 828.12 2,377.66 1,571.73 2,055.99 6,535.80
3 Net Profit ftheriod aftendllinr tatroorpex anon-congint(afterdiite)stsxtrerer eaonaryms - - - - 5.72,230 1,426.53 1,538.81 5,096.34
4 TotalChensiInfor theriodomprevecomee p 479.09 186.34 384.88 790.15 2,718.18 10,874.17 2,519.54 17,885.84
5 EquitShCaitalyarep 1,275.91 1,274.98 1,212.54 1,274.98 1,275.91 1,274.98 1,212.54 1,274.98
6 Other Eityqu 45188.57, 63,065.10
7 Earnisha(beforndafordinatertrangs perree aexryite)(ofRe 1/-each)ms
asi-Bc Rs . 0.37 0.17 0.31 0.67 1.75 1.16 1.27 4.13
-DilutedRs 0.31 0.15 0.31 0.60 1.48 1.03 1.27 3.68

1 The above information is an extract of the detailed format of unaudited results for the quarter ended June 30, 2021 filed with the Stock Exchanges under Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. 111e full forma t of the unaudited results for the quarter ended June 30, 2021 are available on the Company's website,www.camlinfs.com and the Stock Exchange websites i.e. www.bseindia.com and www.nseindia.com.

Place: Lonavala Ashish S. Dandekar Date: August 13, 2021 Chairman & Managing Director

FOR CAMLIN FINE SCIENCES LIMITED

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