Chembond Material Technologies Limited — Interim / Quarterly Report 2022

Jul 24, 2021

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SE/CS/2021-22/31

24[th] July, 2021

To, BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Fort, Mumbai-400001 Scrip Code – 530871

To,

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

Ref: ISIN: INE995D01025

Re: Outcome of Board Meeting.

Dear Sir / Madam,

In continuation to our letter bearing Ref. no. SE/CS/2021-22/27 dated 14[th] July, 2021, 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;

• a) Considered and approved the Unaudited Financial Results (Standalone and Consolidated) for the quarter ended 30[th] June, 2021 which are enclosed, along with the Limited Review Report.

The meeting of Audit Committee / Board of Directors of the Company commenced at 10.15 a.m. and concluded at 13.30 p.m.

Further, pursuant to our letter Ref. No. SE/CS/2021-22/23 dated 30[th] June, 2021 and in terms of Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015 and the Company’s internal code of conduct, for prevention of Insider Trading, the Trading window for dealing in securities of the Company will remain closed for Directors / Officers / Designated persons of the Company till 48 hours post the outcome of board meeting i.e. till 26[th] July, 2021.

We request you to take the above on record.

Thanking You

Yours faithfully,

For CHEMBOND CHEMICALS LIMITED

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Suchita Singh Rashmi Gavli Company Secretary Chief Financial Officer

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Encl: a/a

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 Unaudited Financial Results for the Quarter Ended 30th June, 2021

(Rs. in Lakhs)

Sr. Particulars No 1 Revenue from operations 2 Other Income 3 Total Income 4 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 5 Profit before exceptional Items and tax 6 Exceptional items 7 Profit before tax 8 Tax Expense - Current Tax - Deferred Tax - Tax in respect of earlier years 9 Profit For the Period 10 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) 11 Total Comprehensive Income 12 Net profit attributable to: - Shareholders of the Company - Non Controlling Interests 13 Other Comprehensive Income attributable to- - Shareholders of the Company - Non Controlling Interests 14 Paid-up equity share capital (face value of Rs 5 per share) 15 Other equity excluding Revaluation Reserve as per balance sheet 16 Earning Per Share ( of Rs.5 each) (not annualised) Basic EPS Basic and Diluted EPS

Year Ended 30.06.2021 31.03.2021 30.06.2020 31.03.2021 Unaudited Audited Unaudited Audited 7,770.63 8,221.73 5,077.95 27,444.58 350.41 216.10 447.61 1,533.09 8,121.04 8,437.83 5,525.56 28,977.67 4,072.23 3,869.22 2,072.62 12,187.93 497.64 905.96 516.56 2,181.99 (111.23) (258.92) (160.15) (37.95) 1,474.65 1,380.40 1,329.36 5,395.66 9.44 16.98 15.81 42.19 109.36 115.92 110.80 455.45 1,284.53 1,823.82 978.88 5,899.48 7,336.62 7,853.38 4,863.88 26,124.75 784.42 584.45 661.68 2,852.92 - - - 784.42 584.45 661.68 2,852.92 266.12 211.31 236.56 901.11 36.22 (51.12) 21.21 (52.41) - 0.93 0.09 (36.67) 482.08 423.33 403.82 2,040.89 5.40 70.50 (16.86) 19.91 (0.93) (13.64) 1.85 (3.85) 4.47 56.86 (15.01) 16.06 486.55 480.19 388.81 2,056.95 478.66 504.69 368.87 2,034.43 3.43 (81.36) 34.94 6.45 4.47 56.00 (14.73) 16.05 0.00 0.86 (0.28) 0.01 672.41 672.41 672.41 672.41 28,646.73 3.56 3.75 2.74 15.13 3.56 3.75 2.74 15.13 Consolidated Quarter Ended

Notes:

1. The above results for the quarter and year ended 30th June, 2021, have been reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on 24th July, 2021 through video conferencing and have been subjected to limited review by the Statutory Auditors.

2. This Statement has been prepared in accordance with the Companies (Indian Accounting Standards) Rules, 2015 (IndAS), 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.

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

5. COVID-19 continues to impact normal business operations of the Group and the operating environment remains challenging with the emergence of second wave of COVID. The situation is continuously evolving 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

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

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(Rs. in Lakhs)
Standalone Details Quarter Ended Year Ended
30.06.2021 31.03.2021 30.06.2020 31.03.2021
Unaudited Audited Unaudited Audited
Revenue from operations 1,113.07 1,259.08 819.36 4,203.69
Profit Before Tax 389.94 224.67 346.88 1,264.90
Profit for the period 271.83 172.54 255.25 967.32
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1. The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the company towards Provident Fund and Gratuity. The Ministry of Labour and Employment has released draft rules for the Code on Social Security, 2020 on November 13, 2020, and has invited suggestions from stakeholders which are under active consideration by the Ministry. The Company will assess the impact and its evaluation once the subject rules are notified and will give appropriate impact in its financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published.

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

By Order of Board of Directors For CHEMBOND CHEMICALS LIMITED

Nirmal Digitally signed by Nirmal Vinod Vinod Shah Shah Date: 2021.07.24 13:27:37 +05'30'

Place : Mumbai Nirmal V. Shah Date : 24th July, 2021 VC & Managing Director

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Independent Auditors’ Review Report on Review of Consolidated Interim Financial Results

Limited Review Report

To the Board of Directors of

Chembond Chemicals Limited

1. We have reviewed the accompanying statement of Consolidated Unaudited Financial Results (‘the Statement’) of Chembond Chemicals Limited (“the Holding Company”) and its subsidiaries (the Holding Company and its subsidiaries together referred to as “the Group”), for the quarter ended June 30, 2021 being submitted by the Holding Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (‘the Regulation’), read with SEBI Circular No. CIR/CFD/CMD1/44/2019 dated March 29, 2019 (‘the Circular’).

2. This statement, which is the responsibility of the Holding Company’s Management and approved by the Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in the Indian Accounting Standard 34 “Interim Financial Reporting” (“Ind AS 34”), prescribed under section 133 of the Companies Act, 2013 read with relevant rules, as amended, read with the Circular, issued there under and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review.

3. We conducted our review 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 Institute of Chartered Accountants of India. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement is free of material misstatement. A review is limited primarily to inquiries of Holding Company personnel and analytical procedures applied to financial data and thus provide less assurance than an audit. A review is substantially less in scope than an audit conducted in accordance ·with Standards on Auditing specified under Section 143(10) of the Companies Act, 2013 and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. A ccordingly, we do not express an audit opinion.

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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We also performed procedures in accordance with the Circular issued by the Securities and Exchange Board of India under regulation 33(8) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended, to the extent applicable.

1. The Statement includes the results of the following entities:

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Name of the entity Relationship
Chembond Chemicals Limited Holding Company
Chembond Water Technologies Limited Subsidiary Company
Chembond Polymers and Materials Limited Subsidiary Company
Chembond Calvatis Industrial Hygiene Systems Limited Subsidiary Company
Chembond Material Technologies Private Limited Subsidiary Company
Chembond Biosciences Limited Subsidiary Company
Phiroze Sethna Private Limited Subsidiary Company
Chembond Distribution Limited Subsidiary Company
Chembond Clean Water Technologies Limited Step down Subsidiary Company
Gramos Chemicals India Private Limited Step down Subsidiary Company
Chembond Water Technologies (Malaysia) Sdn. Bhd. Step down Foreign Subsidiary Company
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1. Based on our review conducted and procedures performed as stated in paragraph 3 above and based on the consideration of the reports of the other auditors referred to in Paragraph 7 below, nothing has come to our attention that causes us to believe that the accompanying Statement prepared in accordance with the aforesaid Indian Accounting Standards and other accounting Principles 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, read with the Circular, including the manner in which it is to be disclosed, or that it contains any material misstatement.

2. We draw attention to Note 5 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.

3. We did not review the interim financial results of three Indian subsidiaries and one step down subsidiary included in the consolidated unaudited financial results, whose interim financial results reflects total revenue of Rs. 3,410.02 lakhs, total net loss of Rs. (157.47) lakhs and total comprehensive income of Rs. 4 lakhs included in the Statement for the quarter ended June 30, 2021. These interim financial results and

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other financial information 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 is based solely on the report of such auditors and the procedures performed by us as stated in paragraph 3 above.

The financial results of a step down foreign subsidiary included in the Statement, whose financial results reflects revenue of Rs. 39.58 lakhs, net profit of Rs. 3.54 lakhs and total comprehensive Income of Nil for the quarter ended June 30, 2021 are unaudited and not reviewed by other auditors. The Holding Company’s management has converted the financial results of such foreign subsidiary from accounting principles generally accepted in that country to accounting principles generally accepted in India. Accordingly, our conclusion 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 management certified unaudited financial results. According to the information and explanations given to us the Management, these financial results are not material to the Group.

Our conclusion is not modified in respect of these matters.

For Bathiya & Associates LLP

Chartered Accountants Firm’s Registration No. 101046W / W100063

Jatin Digitally signed by Jatin Ashok Ashok Thakkar Thakkar Date: 2021.07.24 13:43:34 +05'30'

Jatin A. Thakkar

Partner Membership No. 134767

UDIN: 21134767AAAACP6631

Place: Mumbai.

Date: July 24, 2021

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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 Unaudited Financial Results for the Quarter ended 30th June, 2021

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(Rs. in Lakhs)
Sr. Particulars Quarter Ended Year Ended
No 30.06.2021 31.03.2021 30.06.2020 31.03.2021
Unudited Audited Unaudited Audited
1 Revenue from Operations 1,113.07 1,259.08 819.36 4,203.69
2 Other Income 325.23 234.93 328.95 1,191.20
3 Total Income 1,438.30 1,494.01 1,148.31 5,394.89
4 Expenses
a. Cost of materials consumed 408.75 439.35 302.31 1,623.20
b. Purchases of Stock-in trade 102.58 144.46 1.76 208.73
c. Changes in inventories of Finished Goods, Work-
19.41 9.51 12.41 63.81
in-progress and Stock-in-trade
d. Employees Benefit Expenses 166.34 151.80 170.25 598.96
e. Finance Costs 0.75 6.22 0.23 7.11
f. Depreciation and Amortisation Expenses 68.69 69.47 70.81 280.46
g. Other Expenses 281.84 448.53 243.64 1,347.72
Total Expenses 1,048.36 1,269.34 801.41 4,129.99
5 Profit before exceptional Items and tax 389.94 224.67 346.90 1,264.90
6 Exceptional items 0.00 0.00 0.00 -
7 Profit before tax 389.94 224.67 346.90 1,264.90
8 Tax Expense
- Current Tax 112.67 47.21 76.21 266.12
- Deferred Tax 5.44 4.36 15.43 30.90
- Tax in respect of earlier years - 0.56 - 0.56
9 Profit For the Period 271.83 172.54 255.26 967.32
10 Other Comprehenshive Income / (loss)
i) Items that will not be reclassified to profit or loss
(0.41) 5.55 (2.40) (1.65)
ii) Income Tax relating to items that will not be
0.09 (1.14) 0.49 0.34
reclassified to profit or loss
Other Comprehenshive Income / (loss) (0.32) 4.41 (1.91) (1.31)
11 Total Comprehensive Income / (loss) for the
271.51 176.95 253.36 966.01
period
12 Paid-up equity share capital (face value of Rs 5 per
672.41 672.41 672.41 672.41
share)
13 Other equity excluding Revaluation Reserve 23,257.87
14 Earning Per Share ( FV of Rs.5 each) (not
annualised)
Basic and Diluted EPS 2.02 1.28 1.90 7.18
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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 Unaudited Financial Results for the Quarter ended 30th June, 2021

Notes

1. The above results for the quarter ended 30th June, 2021, have been reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on 24th July, 2021 through video conferencing and have been subjected to limited review by the Statutory Auditors.

2. This Statement has been prepared in accordance with the Companies (Indian Accounting Standards) Rules, 2015 (IndAS), 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. 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.

5. COVID-19 continues to impact normal business operations of the Company and the operating environment remains challenging with the emergence of second wave of COVID. The situation is continuously evolving 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.

6. The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the company towards Provident Fund and Gratuity. The Ministry of Labour and Employment has released draft rules for the Code on Social Security, 2020 on November 13, 2020, and has invited suggestions from stakeholders which are under active consideration by the Ministry. The Company will assess the impact and its evaluation once the subject rules are notified and will give appropriate impact in its financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published.

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

By Order of Board of Directors For CHEMBOND CHEMICALS LIMITED

Nirmal Digitally signed by Nirmal Vinod Shah Vinod Shah Date: 2021.07.24 13:28:53 +05'30'

Place : Mumbai Date : 24th July, 2021

Nirmal V. Shah VC & Managing Director

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Independent Auditors’ Review Report on Review of Standalone Interim Financial Results

Limited Review Report

To the Board of Directors of

Chembond Chemicals Limited

1. We have reviewed the accompanying Statement of unaudited standalone financial results of Chembond Chemicals Limited (“the Company”) for the quarter ended June 30, 2021 (“the Statement”), 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 Regulation’), read with SEBI circular No. CIR/CFD/CMD1/44/2019 dated March 29, 2019 (‘the Circular’) .

2. This Statement, which is the responsibility of the Company’s Management and approved by the Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in the Indian Accounting Standard 34 “Interim Financial Reporting” (“Ind AS 34”), prescribed under section 133 of the Companies Act, 2013 read with relevant rules, as amended, read with the Circular, issued thereunder and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review.

3. We conducted our review 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 Institute of Chartered Accountants of India . This standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement is 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. A review is substantially less in scope than an audit conducted in accordance ·with Standards on Auditing specified under Section 143(10) of the Companies Act, 2013 and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. A ccordingly, we do not express an audit opinion.

4. We draw attention to Note 5 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.

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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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The actual results may differ from such estimates depending on future developments. Our opinion is not modified in respect of this matter.

1. Based on our review conducted as stated above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with aforesaid Indian Accounting Standards and other accounting principles 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 read with the Circular, including the manner in which it is to be disclosed, or that it contains any material misstatement.

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For Bathiya & Associates LLP,

Chartered Accountants

Firm’s Registration No. 101046W / W100063

Jatin Digitally signed by Ashok Jatin Ashok Thakkar Date: 2021.07.24 Thakkar 13:44:12 +05'30'

Jatin A. Thakkar

Partner Membership No. 134767

UDIN: 21134767AAAACO1645

Place: Mumbai. Date: July 24, 2021

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