Chembond Material Technologies Limited — Annual Report 2020

May 28, 2020

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SE/CS/2020-21/10A To, BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Fort, Mumbai-400001 Company Scrip Code – 530871

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28[th] May, 2020

To, National Stock Exchange of India Limited Exchange Plaza, Plot no. C/1, G Block, Bandra-Kurla Complex, Bandra (W), Mumbai-400051 Company Scrip Code –CHEMBOND

Ref: ISIN: INE995D01025

Re: Outcome of Board Meeting.

Dear Sir / Madam,

nd In continuation to our letter bearing Ref. no. SE/CS/2020-21/07 dated 22 May, 2020, and pursuant to Regulations 33, 30 and other applicable regulations, if any, of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements), 2015, (the Listing Regulations), we hereby inform you that the Board of Directors of the Company in its meeting held today;

Considered and approved the Audited Financial Statement (Standalone and Consolidated) for the st quarter / year ended 31 March 2020 which are enclosed, along with the Auditors’ Report on the Standalone and Consolidated Financial Statement.

Declaration on Audit Report with unmodified opinion

We declare that the Auditors’ Report on Standalone and Consolidated Annual Financial Statement st for the year ended 31 March 2020, is with unmodified opinion.

The meeting of Audit Committee / Board of Directors of the Company commenced at 1.00 p.m. and concluded at 4.30 p.m.

P.S. Cashflow Statement attached (Consolidated and Standalone).

We request you to take the above on record.

Thanking You, Yours faithfully,

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For CHEMBOND CHEMICALS LIMITED

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Suchita Singh Company Secretary

Rashmi Gavli Chief Financial Officer

Encl as above

Chembond Chemicals Limited

EL-71 Mahape MIDC, Navi Mumbai 400710. INDIA T: +91 22 62643000 - 03 ● F: +91 22 27681294 www.chembondindia.com

CIN : L24100MH1975PLC018235

CHEMBOND CHEMICALS LIMITED

CIN L24100MH1975PLC018235

Regd.Office: Chembond Centre, EL 71, Mahape MIDC,Navi Mumbai - 400 710 Email id:info@chembondindia.com, Website:www.chembondindia.com Consolidated Audited Financial Results for the Quarter and Year Ended 31st March, 2020

(Rs. in Lakhs)

		(Rs. in Lakhs)	(Rs. in Lakhs)	(Rs. in Lakhs)	(Rs. in Lakhs)	(Rs. in Lakhs)
Sr. No	Particulars	Consolidated
		Quarter Ended			Year Ended
		31.03.2020	31.12.2019	31.03.2019	31.03.2020	31.03.2019
		Audited	Unaudited	Audited	Audited	Audited
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 **16 **	Revenue from operations Other Income Total Income Expenses a. Cost of materials consumed b. Purchases of Stock-in trade c. Changes in inventories of Finished Goods, Work-in-progress and Stock-in-trade e. Employees Benefit Expenses f. Finance Costs g. Depreciation and Amortisation Expenses h. Other Expenses Total Expenses Profit before exceptional Items and tax Exceptional items Profit before tax Tax Expense - Current Tax - Deferred Tax - Tax in respect of earlier years Profit For the Period Other Comprehenshive Income i) Items that will not be reclassified to profit or loss ii) Income Tax relating to items that will not be reclassified to profit or loss Other Comprehenshive Income / (loss) Total Comprehensive Income Net profit attributable to: - Shareholders of the Company - Non Controlling Interests Other Comprehensive Income attributable to- - Shareholders of the Company - Non Controlling Interests Paid-up equity share capital (face value of Rs 5 per share) Other equity excluding Revaluation Reserve as per balance sheet Earning Per Share ( of Rs.5 each) (not annualised) Basic EPS Basic andDilutedEPS	6,314.47 61.24 6,375.71 2,809.26 607.25 (11.53) 1,436.68 15.86 114.38 1,886.79 6,858.69 (482.98) - (482.98) 29.47 4.99 (15.34) (502.10) 75.44 (5.40) 70.04 (432.06) (612.74) 110.66 - 71.34 (1.31) 672.41 - (4.56) (4.56)	6,849.38 143.43 6,992.81 2,591.86 963.09 71.80 1,436.64 14.90 108.51 1,409.83 6,596.63 396.18 - 396.18 138.68 10.49 3.49 243.52 (12.02) 2.18 (9.84) 233.68 243.02 0.50 (9.84) (0.00) 672.41 - 1.81 1.81	7,617.93 206.37 7,824.30 3,517.26 582.93 (206.27) 1,286.26 27.16 103.85 1,698.42 7,009.62 814.68 - 814.68 273.04 (85.42) - 627.06 (54.82) 11.08 (43.74) 583.32 485.48 141.58 (43.76) 0.02 672.41 - 3.61 3.61	26,804.28 303.78 27,108.06 12,333.30 1,970.57 (116.75) 5,716.43 78.29 434.80 5,902.21 26,318.85 789.21 - 789.21 496.05 (7.30) (8.04) 308.50 39.37 1.38 40.75 349.25 187.29 121.21 42.06 (1.31) 672.41 26,195.53 1.39 1.39	30,130.94 393.14 30,524.08 14,637.66 2,467.76 (345.22) 5,109.07 78.20 423.98 5,712.04 28,083.50 2,440.58 - 2,440.58 746.49 (289.55) 1,983.64 (47.78) 9.18 (38.60) 1,945.04 1,732.21 251.43 (38.60) - 672.41 25,471.56 12.88 12.88

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	Statement of Assets and Liabilites as at 31st March 2020 (Rs. in Lakhs)	Statement of Assets and Liabilites as at 31st March 2020 (Rs. in Lakhs)	Statement of Assets and Liabilites as at 31st March 2020 (Rs. in Lakhs)
1 2 1 2	Particulars	As at 31/03/2020	As at 31/03/2019
		Audited	Audited
	ASSETS Non-current assets (a) Property, plant and equipment (b) Capital work-in-progress (c) Goodwill (d) Other Intangible Assets (e) Financial Assets i) Investments ii) Other financial assets (f) Deferred tax Assets (Net) (g) Income tax assets (net) (h) Other non-current assets Total Non-current assets Current Assets (a) Inventories (b) Financial Assets i) Investments ii) Trade receivables iii) Cash and cash equivalents iv) Bank balances other than (iii) above v) Loans vi) Other financial assets (c) Current Tax asset (Net) (d) Other current assets Total current assets Total Assets EQUITY AND LIABILITIES Equity (a) Equity Share capital (b) Other equity (c)Equity attributable to the owners of the company (d) Non Controlling interest Total Equity Liabilities Non-Current Liabilities (a) Financial liabilities i) Borrowings (b) Provisions Total Non-current liabilities Current liabilities (a) Financial liabilities i) Borrowings ii) Trade payables Trade payables -MSMED Trade payables -Others iii) Other financial liabilities (b) Other current liabilities (c) Provisions Total current liabilities Total Equityand Liabilities	4,824.79 7.08 7,489.45 77.02 2,063.95 787.49 157.10 569.81 20.49	4,527.52 201.89 6,311.02 83.24 2,404.64 1,180.27 153.46 428.88 21.71
		15,997.18 2,732.98 3,066.47 8,240.61 245.73 1,106.79 45.87 66.26 175.92 529.84	15,312.63 2,471.39 3,410.79 9,082.21 537.50 760.05 41.29 79.73 81.38 447.45
		16,210.47	16,911.80
		32,207.65	32,224.43
		672.41 26,195.52	672.41 25,471.56
		26,867.93 524.91	26,143.96 405.01
		27,392.84 74.20 113.38	26,548.97 52.15 134.53
		187.58 263.62 605.03 2,810.53 699.81 239.36 8.89	186.68 618.08 205.80 3,405.57 823.68 428.55 7.11
		4,627.24	5,488.78
		32,207.65	32,224.43

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Notes:

1. The above results for the quarter and year ended 31st March, 2020, have been reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on 28th May, 2020 through video conferencing.

2. This Statement has been prepared in accordance with the Companies (Indian Accounting Standards) Rules, 2015 (Ind-AS), prescribed under Section, 133 of the Companies Act, 2013 and other recognised accounting practices and policies to the extent applicable.

3. The group is engaged in the manufacture of Specialty Chemicals, which in the context of IND AS 108- Operating segment specifed under section 133 of the Companies Act, 2013 is considered as a single business segment of the group.

Consequent to the expiry of the toll manufacturing contract for metal treatment chemicals in June 2018, the results for the year ended 31st March 2020 are not comparable with results for the year ended 31st March 2019 to that extent. The Company has now re-entered the Metal Treatment Chemicals business on its own through its wholly owned subsidiary Chembond Material Technologies Private Limited.

The Group has decided to continue with the existing tax structure except for one subsidiary company which has provided for current and deferred tax at the rate prescribed under Section 115BAA of the Income Tax Act, 1961

COVID-19 has impacted normal business operations of the Group. Manufacturing, supply chain, cashflows etc. have been disrupted. All plants of the Group were shut down on 23rd March 2020 only to restart at considerably lower productivity between 8th April and 25th April. Necessary precautions to ensure hygiene, safety, and wellbeing of all our employees at all plants have been implemented. The Group has considered the possible effects COVID-19 may have on the recoverability and carrying value of its assets comprising Property Plant and Equipment, Goodwill, Investments, Inventories and Trade Receivables. Based on current indicators of future economic conditions, the Group expects to recover the carrying amount of these assets. The situation is changing rapidly giving rise to inherent uncertainty around the extent and timing of the potential future impact of the COVID-19 which may be different from that estimated as at the date of approval of these results. The Group will continue to closely monitor any material changes arising of future economic conditions and impact on its business.

1. Additional Information on Stand Alone Basis are as Follows:

Additional Information on Stand Alone Basis are as Follows:	Additional Information on Stand Alone Basis are as Follows:	Additional Information on Stand Alone Basis are as Follows:	Additional Information on Stand Alone Basis are as Follows:	Additional Information on Stand Alone Basis are as Follows:	Additional Information on Stand Alone Basis are as Follows:
(Rs. in Lakhs)
Standalone Details	Quarter Ended			Year Ended
	31.03.2020	31.12.2019	31.03.2019	31.03.2020	31.03.2019
	Audited	Unaudited	Audited	Audited	Audited
Revenuefromoperations	1,113.51	1,346.38	2,689.24	5,854.29	15,628.96
ProfitBeforeTax	(68.12)	151.14	251.34	530.81	706.27
Profitforthe period	54.06	93.42	195.86	554.16	633.15

Profit for the period includes dividend received for the quarter and year ended 31st March, 2020 of Rs. 250.20 Lakhs (Rs. Nil) and Rs.437 Lakhs (Rs.240.95 Lakhs) respectively from Subsidiary Company.

1. The figures for the quarter ended 31st March 2020 and 31st March 2019 are the balancing figures between audited figures in respect of the full financial year and year to date figures upto 3rd quarter ended 31st December 2019 and 31st December 2018 respectively.

2. The figures for corresponding previous periods have been restated/regrouped, rearranged and reclassified wherever necessary to make them comparable.

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By Order of the Board of Directors For CHEMBOND CHEMICALS LTD Sameer V. Shah Chairman & Managing Director

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Place : Mumbai Date : 28th May, 2020

CHEMBOND CHEMICALS LTD

CASH FLOW STATEMENT

CASH FLOW STATEMENT	CASH FLOW STATEMENT
					(Rs. In Lakhs)
	Particulars		2019-2020		2018-2019
A B C	Net Gain on sale of Investments Fair valuation of Investments (Net) Effect of previous year transaction/Preacquistion profits Net Cash from Financing Activities (C) Net (Decrease)/Increase in Cash & Cash Activities (A+B+C) Cash and Cash Equivalents and Other Bank Balances as on Opening Cash and Cash Equivalents and Other Bank Balances as on Closing Finance Cost Purchase of Investment Sale of Investment Dividend Income Net Cash used in Investing Activities (B) Cash Flow from Financing Activites Proceeds/(Repayment) of Short Term Borrowings ESOP Shares Allotted Share Premium on ESOP Shares Allotted Dividend paid Tax on dividend paid Proceeds/(Repayment) of Long Term Borrowings Proceeeds from Sale of Property, plant & equipments Trade and Other Receivables Inventories Trade and Other Payables Cash generated from operations Income taxes paid (Net of Refund) Net Cash from Operating Activities (A) Cash Flow from Investing Activities Payment to acquire Property, plant & equipments Adjustments for : Profit before tax Adjustments for : Depreciation and amortisation Loss on Sale of Property, plant & equipments Finance Cost Less : Foreign Exchange Fluctuation Dividend Received Operating Profit before working capital changes Cash Flow from Operating Activities		434.80 0.05 78.29	789.20 513.14 1,331.83	423.98 (0.17) 78.20	2,440.58 502.01 (307.78)
			55.49 223.47 (397.65) (1,223.46) 10.32		19.59 806.65 (619.45) 75.43 25.56
			1,162.11 (267.66) (433.37)		(1,444.82) (21.70) (1,450.90)
				2,634.17 461.08		2,634.81 (2,917.42)
				3,095.25 (729.25)		(282.61) (938.24)
				2,366.00		(1,220.85)
				(1,959.55) 250.03 (3,309.32) 3,820.16 10.32		(925.22) 258.07 (14,381.52) 16,400.94 25.56
				(1,188.36)		1,377.83
				(353.38) - - (537.93) (175.11) 22.05 (78.29)		(240.41) - - (248.79) (51.14) 2.75 (78.20)
				(1,122.66)		(615.79)
				54.98 54.97 1,297.55 1,352.52		(458.81) (458.82) 1,756.37 1,297.55

Place : Mumbai Date : 28th May, 2020

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By Order of the Board of Directors For CHEMBOND CHEMICALS LTD

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Sameer V. Shah Chairman & Managing Director

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Independent Auditor’s Report on the quarterly and year to date Consolidated Financial Results of the Company pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended

To The Board of Directors of Chembond Chemicals Limited

Opinion

We have audited the accompanying statement of quarterly and year to date Consolidated Financial Results of Chembond Chemicals Limited (the “Company”) and its subsidiaries and step down subsidiaries (the Company and its subsidiaries and step down subsidiaries together referred to as “the Group”) for the quarter ended March 31, 2020 and for the year ended March 31, 2020 (“Statement”) (refer “Other Matters” section below), attached herewith, being submitted by the Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the “Listing Regulations”).

In our opinion and to the best of our information and according to the explanations given to us, and based on the consideration of the audit reports of the other auditors on separate financial statements / financial information of subsidiaries and step down subsidiaries referred to in Other Matters section below, the Consolidated Financial Results for the year ended March 31, 2020:

• i. Includes the results of the following entities:

Name of the entity	Relationship
Chembond Chemicals Limited	HoldingCompany
Chembond Water Technologies Limited	SubsidiaryCompany
Chembond Clean Water Technologies Limited	SubsidiaryCompany
Chembond Polymers and Materials Limited	Subsidiary Company
Chembond Calvatis Industrial Hygiene Systems Limited	SubsidiaryCompany
Chembond Material Technologies Private Limited	Subsidiary Company
Chembond Biosciences Limited	SubsidiaryCompany
Phiroze Sethna Private Limited	SubsidiaryCompany
Chembond Distribution Limited	SubsidiaryCompany
Chembond Water Technologies (Malaysia) Sdn. Bhd. (Formerly known as Chembond Chemicals (Malaysia) Sdn. Bhd.)	Step down Foreign Subsidiary Company
Gramos Chemicals India Private Limited	Step down Subsidiary Company

Bathiya & Associates LLP 202-A, Harmony T: 022 25300059 / 25420059 Court Naka, Station Road E: info@bathiya.com Thane (W) - 400601 bathiya.com

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• ii. is presented in accordance with the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended; and

• iii. gives a true and fair view in conformity with the applicable accounting standards and other accounting principles generally accepted in India, of the net profit and other comprehensive loss and other financial information of the Group for the quarter ended March 31, 2020 and for the year ended March 31, 2020.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (“SAs”) specified under Section 143(10) of the Companies Act, 2013 (“the Act”). Our responsibilities under those Standards are further described in Auditor’s Responsibilities section below. We are independent of the Group in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (“the ICAI”) together with the ethical requirements that are relevant to our audit of the Consolidated Financial Results for the year ended March 31, 2020 under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI’s Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion.

Emphasis of Matter

We draw attention to Note 6 to the Consolidated Financial Results, which describes the uncertainties and the impact of the Covid-19 pandemic on the Group’s operations and results as assessed by the management. The actual results may differ from such estimates depending on future developments. Our opinion is not modified in respect of this matter.

Management’s Responsibilities for the Statement

The Statement has been prepared on the basis of the consolidated financial statements. The respective Board of Directors of the companies included in the Group are responsible for the preparation and presentation of the Statement that gives a true and fair view of the net profit and other comprehensive income and other financial information of the Group in accordance with the applicable accounting standards prescribed under Section 133 of the Act read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Group and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Statement that give a true and fair view and are free from material misstatement, whether due to fraud or error.

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In preparing the Statement, the respective Board of Directors of the companies included in the Group are responsible for assessing the ability of the respective companies to continue as a going

concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the respective Board of Directors either intends to liquidate their respective companies or to cease operations, or has no realistic alternative but to do so.

The respective Board of Directors of the companies included in the Group are also responsible for overseeing the financial reporting process of the Group.

Auditor’s Responsibilities

Our objectives are to obtain reasonable assurance about whether the Statement as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the Statement.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the Statement, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Group has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors.

• Conclude on the appropriateness of the Board of Directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial results or, if such disclosures are inadequate, to modify our opinion. Our conclusions are

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based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the Statement, including the disclosures, and whether the Statement represents the underlying transactions and events in a manner that achieves fair presentation.

• Perform procedures in accordance with the Circular no. CIR/CFD/CMD1/44/2019 dated March 29, 2019 issued by the SEBI under Regulation 33(8) of the Listing Regulations, to the extent applicable.

• Obtain sufficient appropriate audit evidence regarding the Standalone Financial Results/ Financial Information of the companies within the Group to express an opinion on the Consolidated Financial Results. We are responsible for the direction, supervision and performance of the audit of financial information of such entities included in the Consolidated Financial Results of which we are the independent auditors. For the other entities included in the Consolidated Financial Results, which have been audited by the other auditors, such other auditors remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit opinion.

We communicate with those charged with governance of the Company and such other companies included in the Consolidated Financial Results of which we are the independent auditors regarding, among other matters, the planned scope and timing of the audit and significant audit findings including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

Other Matters

We did not audit the financial statements of three Indian subsidiaries and one step down subsidiary that are included in the Consolidated Financial Result, whose financial statement reflect total asset of Rs. 6,260.74 lakhs as at March 31, 2020, total revenues of Rs. 2,172.99 lakhs and Rs. 9,107.65 lakhs for the quarter and year ended March 31, 2020 respectively, total loss after tax of Rs (480.96) lakhs and Rs. (857.29) lakhs for the quarter and year ended March 31, 2020 respectively, other comprehensive income of Rs. 63.22 lakhs and Rs. 42.28 lakhs for the quarter and year ended March 31, 2020 respectively and net cash outflows of Rs. 429.91 lakhs for the year ended March 31, 2020, as considered in the Statement. These financial statements have been audited by the other auditors, whose reports have been furnished to us by the management and our opinion on the Statement, in so far as it relates to the amounts and disclosure included in respect of these subsidiaries and step down subsidiary is based solely on the reports of the other auditors and the procedures performed by us as stated under the Auditors Responsibilities section above.

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The financial results of the step down foreign subsidiary included in the Statement, whose financial results reflects total asset of Rs. 81.53 lakhs as at March 31, 2020, total revenues of Rs. 16.92 lakhs and Rs. 165.42 lakhs for the quarter and year ended March 31, 2020 respectively, total profit / (loss) after tax of Rs. (3.23) lakhs and Rs. 14.79 lakhs for the quarter and year ended March 31, 2020 respectively, other comprehensive income of Rs. Nil and Rs. Nil for the quarter and year ended March 31, 2020 respectively are audited by other auditors according to accounting principles generally accepted in that foreign country. The Holding Company’s management has converted the financial results of such foreign subsidiary from accounting principles generally accepted in that foreign country to accounting principles generally accepted in India. Accordingly, our report on the Statement, in so far as it relates to the amounts and disclosures included in respect of the said subsidiary is based solely on the basis of the said financial results certified by the management. In our opinion and according to the information and explanations given to us by the Board of Directors, these financial statements / financial information are not material to the Group.

Our report on the Statement is not modified in respect of the above matters.

The Statement includes the results for the quarter ended March 31, 2020 and the corresponding quarter ended in the previous year as reported in the Statement being the balancing figure between the audited figures in respect of the full financial year and the published unaudited year-to-date figures up to the third quarter of the respective financial year, which were subjected to a limited review by us, as required under the Listing Regulations.

For Bathiya & Associates LLP, Chartered Accountants Firm Registration No. 101046W / W100063

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Jatin A. Thakkar Partner Membership No. 134767

Place: Mumbai. Date: May 28, 2020 UDIN: 20134767AAAAAJ6025

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CHEMBOND CHEMICALS LIMITED

CIN L24100MH1975PLC018235

Regd.Office: Chembond Centre, EL 71, Mahape MIDC,Navi Mumbai - 400 710 Email id:info@chembondindia.com, Website:www.chembondindia.com Standalone Audited Financial Results for the Quarter and Year ended 31st March, 2020

		(Rs in Lakhs)	(Rs in Lakhs)	(Rs in Lakhs)	(Rs in Lakhs)	(Rs in Lakhs)
Sr. No	Particulars	Quarter Ended			Year Ended
		31.03.2020	31.12.2019	31.03.2019	31.03.2020	31.03.2019
		Audited	Unaudited	Audited	Audited	Audited
1 2 3 4 5 6 7 8 9 10 11 12 13 **14 **	Revenue from Operations Other Income Total Income Expenses a. Cost of materials consumed b. Purchases of Stock-in trade c. Changes in inventories of Finished Goods, Work- in-progress and Stock-in-trade d. Employees Benefit Expenses e. Finance Costs f. Depreciation and Amortisation Expenses g. Other Expenses Total Expenses Profit before exceptional Items and tax Exceptional items Profit before tax Tax Expense - Current Tax - Deferred Tax - Tax in respect of earlier years Profit For the Period Other Comprehenshive Income / (loss) i) Items that will not be reclassified to profit or loss ii) Income Tax relating to items that will not be reclassified to profit or loss Other Comprehenshive Income / (loss) Total Comprehensive Income / (loss) for the period Paid-up equity share capital (face value of Rs 5 per share) Other equity excluding Revaluation Reserve Earning Per Share ( FV of Rs.5 each) (not annualised) Basic andDilutedEPS	1,113.51 113.58 1,227.09 548.88 14.62 13.43 163.13 0.81 71.52 482.83 1,295.21 (68.12) - (68.12) (40.09) (72.89) (9.20) 54.06 24.73 (5.09) 19.65 73.71 672.41 0.40	1,346.38 120.52 1,466.90 654.22 2.76 14.35 198.00 0.94 69.26 376.23 1,315.76 151.14 - 151.14 46.49 7.74 3.49 93.42 (2.40) 0.49 (1.90) 91.51 672.41 0.69	2,689.24 249.33 2,938.57 1,595.13 76.39 2.98 484.66 2.96 68.51 456.59 2,687.23 251.34 - 251.34 46.29 9.19 - 195.86 (13.38) 2.69 (10.69) 185.17 672.41 1.46	5,854.29 655.81 6,510.10 2,819.91 258.42 141.64 874.26 4.86 279.84 1,600.38 5,979.29 530.81 - 530.81 83.29 (104.75) (1.90) 554.16 17.55 (3.61) 13.94 568.10 672.41 22,291.87 4.12	15,628.96 564.58 16,193.54 9,997.23 1,098.15 67.40 1,957.12 29.12 287.77 2,050.49 15,487.28 706.26 - 706.26 163.93 (90.82) - 633.15 (9.58) 1.93 (7.65) 625.50 672.41 22,282.45 4.71

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CHEMBOND CHEMICALS LIMITED

CIN L24100MH1975PLC018235 Regd.Office: Chembond Centre, EL 71, Mahape MIDC,Navi Mumbai - 400 710 Email id:info@chembondindia.com, Website:www.chembondindia.com Standalone Audited Financial Results for the Quarter and Year ended 31st March, 2020

Statement of Assets and Liabilites as at 31st March, 2020

1 2 1 2	Particulars	As at 31/03/2020	As at 31/03/2019
		Audited	Audited
	ASSETS (a) Property, plant and equipment (b) Capital work-in-progress (c) Other Intangible Assets (d) Financial Assets i) Investments ii) Other financial assets (e) Income tax assets (net) (f) Other non-current assets Total Non-current assets Current Assets (a) Inventories (b) Financial Assets i) Investments ii) Trade receivables iii) Cash and cash equivalents iv) Bank balances other than (iii) above v) Loans vi) Other financial assets (c) Current Tax asset (Net) (d) Other current assets Total current assets Total Assets EQUITY AND LIABILITIES Equity (a) Equity Share capital (b) Other equity Total Equity Liabilities Non-Current Liabilities (a) Provisions (b) Deferred tax liabilities (Net) Total Non-current liabilities Current liabilities (a) Financial liabilities i) Trade payables Trade payables -MSMED Trade payables -Others ii) Other financial liabilities (b) Other current liabilities (c) Provisions Total current liabilities Total Equity and Liabilities	3,590.08 21.96 40.35 13,371.60 42.61 198.89 1.10	3,514.64 200.39 48.61 13,235.63 41.48 163.22 8.21
		17,266.59 463.62 2,433.64 1,697.76 5.94 92.62 1,711.04 31.61 75.30 194.05	17,212.18 842.47 2,512.37 3,958.84 152.43 87.74 6.77 40.98 30.50 181.10
		6,705.58	7,813.20
		23,972.16	25,025.38
		672.41 22,291.87	672.41 22,282.45
		22,964.28 48.62 91.31	22,954.86 68.51 196.06
		139.93 78.27 550.83 187.98 48.32 2.55	264.57 42.73 1,199.94 447.20 107.88 8.20
		867.95	1,805.95
		23,972.16	25,025.38

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CHEMBOND CHEMICALS LIMITED

CIN L24100MH1975PLC018235

Regd.Office: Chembond Centre, EL 71, Mahape MIDC,Navi Mumbai - 400 710 Email id:info@chembondindia.com, Website:www.chembondindia.com Standalone Audited Financial Results for the Quarter and Year ended 31st March, 2020

Notes

1. The above results for the quarter and year ended 31st March, 2020, have been reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on 28th May, 2020 through video conferencing.

2. This Statement has been prepared in accordance with the Companies (Indian Accounting Standards) Rules, 2015 (Ind-AS), prescribed under Section, 133 of the Companies Act, 2013 and other recognised accounting practices and policies to the extent applicable.

3. The Company is engaged in the manufacture of Specialty Chemicals, which in the context of IND AS 108- Operating segment specifed under section 133 of the Companies Act, 2013 is considered as a single business segment of the company.

4. Other Income includes dividend from Subsidiary Company for the quarter and year ended 31st March, 2020 of Rs. 250.20 Lakhs (Rs. Nil) and Rs.437 Lakhs (Rs.240.95 Lakhs) respectively.

5. Consequent to the expiry of the toll manufacturing contract for metal treatment chemicals in June 2018, the results for the year ended 31st March 2020 are not comparable with results for the year ended 31st March 2019 to that extent. The Company has now re-entered the Metal Treatment Chemicals business on its own through its wholly owned subsidiary Chembond Material Technologies Private Limited.

6. The company has evaluated the option permitted under section 115BAA of the Income Tax Act, 1961 (the "Act") as introduced by the Taxation Laws (Ammendment) Ordinance, 2019. Accordingly, the company has presently decided to continue with the existing tax structure.

7. COVID-19 has impacted normal business operations of the Company. Manufacturing, supply chain, cashflows etc. have been disrupted. All plants of the Company were shut down on 23rd March 2020 only to restart at considerably lower productivity between 8th April and 25th April. Necessary precautions to ensure hygiene, safety, and wellbeing of all our employees at all plants have been implemented. The Company has considered the possible effects COVID-19 may have on the recoverability and carrying value of its assets comprising

8. Property Plant and Equipment, Investments, Inventories and Trade Receivables. Based on current indicators of future economic conditions, the Company expects to recover the carrying amount of these assets. The situation is changing rapidly giving rise to inherent uncertainty around the extent and timing of the potential future impact of the COVID-19 which may be different from that estimated as at the date of approval of these results. The Company will continue to closely monitor any material changes arising of future economic conditions and impact on its business.

9. The figures for the Quarter ended 31st March 2020 and 31st March 2019 are the balancing figures between audited figures in respect of the full financial year and year to date figures upto 3rd quarter ended 31st December 2019 and 31st December 2018 respectively.

10. The figures for corresponding previous periods have been restated/regrouped, rearranged and reclassified wherever necessary to make them comparable.

Place : Mumbai Date : 28th May, 2020

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By Order of Board of Directors For CHEMBOND CHEMICALS LIMITED

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Sameer V. Shah Chairman & Managing Director

CHEMBOND CHEMICALS LTD

				(Rs. In Lakhs) 706.26 287.77 0.03 29.12 316.92 11.86 201.28 - 252.56 (465.69) 557.48 (183.39) -190 1,051.87 ### (2,820.24) ### (1,951.75) (1,394.27) ### (192.38) (1,586.65) (336.11) 90.02 (5,532.62) 7,349.83 252.56 1,823.68 (466.05) (248.79) (1.61) (29.12) (745.57) (508.54) (508.54) 748.71 240.17 2018-2019	(Rs. In Lakhs) 706.26 287.77 0.03 29.12 316.92 11.86 201.28 - 252.56 (465.69) 557.48 (183.39) -190 1,051.87 ### (2,820.24) ### (1,951.75) (1,394.27) ### (192.38) (1,586.65) (336.11) 90.02 (5,532.62) 7,349.83 252.56 1,823.68 (466.05) (248.79) (1.61) (29.12) (745.57) (508.54) (508.54) 748.71 240.17 2018-2019
	Particulars	2019-2020		2018-2019
A B C	Net Gain on Investments Cash and Cash Equivalents and Other Bank Balances as on Closing Finance Cost Net Cash from Financing Activities (C) Net (Decrease)/Increase in Cash & Cash Activities (A+B+C) Cash and Cash Equivalents and Other Bank Balances as on Opening Proceeeds from Sale of Property, plant & equipments Purchase of Investment Sale of Investment Dividend Income Net Cash from Investing Activities (B) Cash Flow from Financing Activites Proceeds/(Repayment) of Short Term Borrowings Dividend paid Tax on dividend paid Payment to acquire Property, plant & equipments Adjustments for : Trade and Other Receivables Inventories Trade and Other Payables Cash generated from operations Income taxes paid (Net of Refund) Net Cash from Operating Activities (A) Cash Flow from Investing Activities Operating Profit before working capital changes Profit before tax Adjustments for : Depreciation and amortisation Loss on Sale of Property,Plant & Equipement Finance Cost Less : Foreign Exchange Fluctuation Profit on Sale of Property,Plant & Equipement Dividend Received Cash Flow from Operating Activities	279.84 - 4.86	530.80 284.70 (464.23)	287.77 0.03 29.12	706.26 316.92 (465.69)
		15.91 (15.23) 20.72 442.83		11.86 201.28 - 252.56
		559.22 378.85 (924.45)		(183.39) 1,051.87 (2,820.24)
			351.27 13.62		557.48 (1,951.75)
			364.89 (165.47)		(1,394.27) (192.38)
			199.42		(1,586.65)
			(395.25) 247.37 (3,029.43) 2,956.97 442.83		(336.11) 90.02 (5,532.62) 7,349.83 252.56
			222.49		1,823.68
			- (537.93) (20.75) (4.86)		(466.05) (248.79) (1.61) (29.12)
			(563.55)		(745.57)
			(141.63) (141.61) 240.17 98.56		(508.54) (508.54) 748.71 240.17

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By Order of the Board of Directors For CHEMBOND CHEMICALS LTD

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Place : Mumbai Date : 28th May, 2020

Sameer V. Shah Chairman & Managing Director

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Independent Auditor’s Report on the quarterly and year to date Standalone Financial Results of the Company pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended

To The Board of Directors of Chembond Chemicals Limited

Opinion

We have audited the accompanying statement of quarterly and year to date Standalone Financial Results of Chembond Chemicals Limited (the “Company”) for the quarter ended March 31, 2020 and for the year ended March 31, 2020 (“Statement”) (refer “Other Matters” section blow), attached herewith, being submitted by the Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the “Listing Regulations”).

In our opinion and to the best of our information and according to the explanations given to us, the Statement:

• i. is presented in accordance with the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended; and

• ii. gives a true and fair view in conformity with the applicable accounting standards and other accounting principles generally accepted in India, of the net profit and other comprehensive income and other financial information of the Company for the quarter ended March 31, 2020 and for the year ended March 31, 2020.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (“SAs”) specified under Section 143(10) of the Companies Act, 2013 (“the Act”). Our responsibilities under those Standards are further described in Auditor’s Responsibilities section below. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (“the ICAI”) together with the ethical requirements that are relevant to our audit of the Standalone Financial Results for the year ended March 31, 2020 under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI’s Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion.

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Bathiya & Associates LLP

202-A, Harmony T: 022 25300059 / 25420059 Court Naka, Station Road E: info@bathiya.com Thane (W) - 400601 bathiya.com

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Emphasis of Matter

We draw attention to Note 7 to the Standalone Financial Results, which describes the uncertainties and the impact of the Covid-19 pandemic on the Company’s operations and results as assessed by the management. The actual results may differ from such estimates depending on future developments. Our opinion is not modified in respect of this matter.

Management’s Responsibilities for the Statement

The Statement has been prepared on the basis of the standalone financial statements. The Board of Directors of the Company are responsible for the preparation and presentation of the Statement that gives a true and fair view of the net profit and other comprehensive income and other financial information of the Company in accordance with the applicable accounting standards prescribed under Section 133 of the Act read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Statement that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the Statement, the Board of Directors are responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors are also responsible for overseeing the financial reporting process of the Company.

Auditor’s Responsibilities

Our objectives are to obtain reasonable assurance about whether the Statement as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the Statement.

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As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the Statement, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk

of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate

internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors.

• Conclude on the appropriateness of the Board of Directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial results or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the Statement, including the disclosures, and whether the Statement represents the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

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Other Matters

The Statement includes the results for the quarter ended March 31, 2020 and the corresponding quarter ended in the previous year as reported in the Statement being the balancing figure between the audited figures in respect of the full financial year and the published unaudited year-to-date figures up to the third quarter of the respective financial year, which were subjected to a limited review by us, as required under the Listing Regulations.

For Bathiya & Associates LLP, Chartered Accountants Firm Registration No. 101046W / W100063

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Jatin A. Thakkar Partner Membership No. 134767

Place: Mumbai. Date: May 28, 2020 UDIN: 20134767AAAAAI7515

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