De Nora India Limited — Interim / Quarterly Report 2020

Feb 12, 2020

February 12,2020

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The Manager, Listing Dept. Bombay Stock Exchange Ltd. Floor 25, Phiroze Jeejeebhoy Towers Dalal Street Mumbai 400 001 Phone: 022 22721233 Scrip Code: 590031

The Manager, Listing Dept. National Stock Exchange of India Ltd. Exchange Plaza, 5th floor, Plot No. Cl1, G Block, Bandra-Kurla Complex Bandra (E), Mumbai- 400051 Phone: 022 26598100 Scrip Code: DENORA EQ

Dear Sir,

Sub.: Outcome of Board Meeting of De Nora India Limited held on Wednesday, February 12,2020 at Kundaim - Goa from 4.30 p.m. to 0;-.30 p.m.

This is to inform you that the Board of Directors of the Company at its meeting held today i.e. February 12, 2020 has interalia, considered and approved the following:

1. Unaudited Financial Results of the Company for the quarter and nine months ended on 31st December, 2019.

Pursuant to Regulation 33 of SEBI (LODR) Regulations, 2015, we are enclosing herewith the following:

• 1. Statement showing Unaudited Financial Results for the quarter and nine months ended 3 l.l2.20 19;
• 1. Auditor's Limited Review Report;

The above results, have been duly reviewed and recommended by the Audit Committee to the Board. Published copy of the same shall be forwarded to you in due course.

1. Amendment to Code of Conduct for Prohibition of Insider Trading of the company, in line with the amendments to SEBI (prohibition of Insider Trading) Regulations, 2015.

The amended copy of code of conduct for Prohibition of Insider Trading would be made available on the website of the Company www.denoraindia.com.

3. Notice of postal ballot seeking consent of Members by Ordinary Resolution:

• 1. To approve Material Related Party Transaction with De Nora Italy S.r.I., Italy, upto a maximum aggregate value of Rs. 1200 Lakhs during the financial year 2019-20;
• II. To approve increase in the limits for Material Related Party Transaction with Industrie De Nora S.p.A., Italy, upto a maximum aggregate value of Rs. 550 Lakhs during the financial year 2019-20;

• • SH alectrochemistry at your service

The Postal Ballot notice along with other documents shall be sent to all the shareholders whose names appear in the Register of Members or in Registers of Beneficial Owners maintained by the Depositories as on Friday, 14thFebruary, 2020 (Cut-off date). Accordingly, the shareholders as on this date will be entitled to vote on the proposed resolutions. The voting through postal ballot and e-voting shall commence from 24th February 2020 at 9.00 AM and shall end on 24th March 2020 at 5.00 PM.

Kindly take the same on your record and acknowledge.

Thanking you.

Yours faithfully, For DE NORA INDIA LIMITED

,~^~ ".. '1Shrikant Pai \ \ Company Secretary )\1 Encl.: As above

• • SH electrochemistry at your service

DE NORAINDIA Limited CIN-L3 ^I 200GAI 993PlCOO ¹m Plot Nos. 184. 185 & 189. Kundaim Industrial Estate, Kundaim - 403115 Goa India ph +91(0832) 3981100 - fax +91(0832) 398110! . mail: denoraindia@denora.com web: www.denoramdla.com

De Nora India Limited

CIN: L31200GA1993PLC001335 Regd. Office : Plot nos. 184, 185 & 189, Kundalm Industrial Estate Kundaim, Goa 403 115

Ph.: 0832 3981100, Fax: 0832 3981101; mail: denoraindia@denora.com; web: www.denoraindia.com

Statement of Unaudited Financial Results for the quarter and nine months ended December 31, 2019

	Quarter ended			Hine months ended		Year ended
Particulars	Dec 31, 2019 (Unaudited)	Sep 30, 2019 (Unaudited)	Dec 31, 2018 (Unaudited)	Dec 31, 2019 (Unwudited)	Dec 31, 2018 {Unaudited}	Mar 31, 2019 (Audited)
1 Revenue from operations	1,424,38	1,075.60	1,156.49	3,504.10	2,855.38	3,278.34
Other Income $\mathbf{z}$	56.95	51.82	190.41	159.97	334.86	398.62
Total Income (1+2)	1,481.33	1,127.42	1,346.90	3.664.07	3.190.24	3.676.96
Expenses
Cost of materials consumed ${g}$	588.88	409.38	556.85	1,352.43	1,210.44	1,923.54
Changes in inventories of finished goods, work-in-progress and stock-in-trade ${b}$	(5.17)	(33.90)	${74.35}$	46.44	(325.60)	(726.30)
Employee benefits expense (c)	133.11	127.81	130.01	396.84	475.97	649.47
Depreciation and amortization expenses (d)	65.18	65.24	63.18	194.77	190.00	253.07
Other expenses (e)	240.80	320.43	307.69	902.18	961.44	1,395.13
Total Expenses	1,022.80	888.96	983.38	2,892.66	2,512.25	3,494.91
Profit / (Loss) before tax (3-4) s.	458.53	238.48	363.52	771.41	677.99	182.05
Income tax expenses -Current tax and Tax relating to prior years (refer note 4) $\mathbf{r}^*$ -Deferred tax Charge / (Credit) $\boldsymbol{\mathcal{I}}$ Total tax expense	103.77 (2.08) 101.69	59.69 ${1.80}$ 57.89	33.25 22.44 55.69	186.47 (7.55) 178.92	109.52 19.89 129.41	10.24 13.08 23.12
7 Profit / (Loss) for the period (5-6)	356.84	180.57	307.83	592.49	548.58	158.73
Other comprehensive income (1) items that will not be rectassified to profit or loss (ii) income tax related to items that will not be reclassified to profit or loss Total other comprehensive income (net of tax)	0.89 0.89	(7.60) 1.32 (6.28)	(22.38) (22.38)	(7.42) 1.32 (6.10)	(26.63) (26.63)	(13.09) 3.26 (9.83)
9 Total comprehensive income for the period (7+8)	357.73	174.29	285.45	586.39	521.95	148.90
10 Paid-up Equity Share Capital (Face Value ? 10 each fully paid up) Other Equity 11	530.86	530.86	530.86	530.86	530.86	530.86 4,791.68
Earnings Per Share (Face Value ₹ 10 each) (not annualized) 12 ₹ (Basic) ${33}$	6.72	3.40	5.80	11.16	10.33	2.99
₹ (Diluked) $ D\rangle$	6.72 See accompanying notes	3,40	5.80	11.16	10.33	2.99

Layle electrochemistry at yourservice^sH

DE NORA INDIA Limited CIN-L31200GA1993PLC001335 Plot Nos. 184, 185 & 189, Kundaim Industrial Estate, Kundaim - 403115 Goa India
ph +91(0832) 3981100 - fax +91(0832) 3981101 mail: denoraindia@denora.com web: www.denoraindia.com

De Nora India Limited

Statement of Unaudited Financial Results for the quarter and nine months ended December 31, 2019

1. Segment Information

Upto March 31, 2018 the Company was operating in a single segment "Electrolytic Products". As at March 31, 2019 as per the criteria specified under Ind AS 108 - Operating Segments, the Company for first time has identified in respect of Segment wise revenue, results and capital employed for the quarter and nine months ended December 31, 2019 are as below :

	Particulars	Quarter ended		Nine Months ended	Year ended
Sr. No.		Dec 31, 2019	Sep 30, 2019	Dec 31, 2019	Mar 31, 2019
$\mathbf{1}$	Segment Revenue (net):
	(a) Electrode Technologies (b) Water Technologies	1,382.47 41.91	1,060.99 14.61	3,410.23 93.87	3,044.27 234.07
	Total Less: Inter-segment Revenue	1,424.38	1,075.60	3,504.10	3,278.34
	Total Revenue from Operations (net)	1,424.38	1,075.60	3,504.10	3,278.34
$\overline{2}$	Segment Results: Profit/ (Loss) before tax from each segment (a) Electrode Technologies (b) Water Technologies (including reversal of expenses of Rs. 25.84 lakhs in quarter ended Dec-2019) $\mathbf{v}^{\prime}$	444.13 35.41	296.86 (36.30)	877.13 (26.25)	378.55 (113.44)
	Total :2001 Other un-allocable expenditure net-off with un-allocable income	479.54 21.01	260.56 22.10	850.88 79.47	265.11 83.06
	Total Profit before tax	458.53	238.46	771.41	182.05
$\overline{\mathbf{3}}$	Capital Employed Segment Assets (a) Electrode Technologies (b) Water Technologies (c) Un-allocated	4,325.04 834.06 2,040.09	3,636.30 882.73 2,400.97	4,325.04 834.06 2.040.09	3,305.55 1,012.83 2,281.15
	Total Assets	7,199.19	6,920.00	7,199.19	6,599.53
	Less: Segment Liabilities (a) Electrode Technologies (b) Water Technologies (c) Un-allocated	1,209.84 80.42	1,065.73 303.06	1,209.84 80.42	903.29 373.70
	Total Liabilities	1,290.26	1,368.79	1,290.26	1,276.99

1. The above financial results have been reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on February 12, 2020. The statutory auditors have carried out a limited review of the results for the quarter and nine months ended December 31, 2019.

2. The adoption of Ind AS 116 - Leases, effective April 1, 2019, did not have a material impact on the financial results of the company for the quarter and nine months ended December 31, 2019.

3. The figures for the previous year/ periods have been reclassified/ regrouped wherever necessary to conform with the current period's classification/ disclosure.

Place: Kundairn, Goa Dated: February 12, 2020

For and on behalf of the Board of Directors De Nora India Limited CIN: L31200GA1993PLC001335 $1/3$ Satish Dhome Chaigman DIN: 00334564

CIN-L31200GA1993PLC001335

FLoor6, Building# 1 CerebrumIT Park, KalyaniNagar TeL:+9120 67633400

Independent Auditor's Review Report on unaudited quarterly and year to date financial results of DE NORA INDIA LIMITED pursuant to the Regulation 33 of the SEBI (Listing ObLigations and Disclosure Requirements) Regulations, 2015

The Board of Directors DE NORAINDIA LIMITED

• 1. We have reviewed the accompanying statement of unaudited financial results of DE NORA INDIA LIMITED ('the Company') for the quarter ended December 31, 2019 and the year to-date results for the period April 1, 2019 to December 31,2019 ("the Statement") of the Company attached herewith, being submitted by the Company pursuant to the requirements of ReguLation 33 of the Securities and Exchange Board of India (Listing ObLigations and Disclosure Requirements) Regulations, 2015 as amended ("the Regulation").
• 1. 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 Ind AS34 'Interim Financial Reporting', prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and other recognized 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 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 Statement is free of material misstatement. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying anaLyticaL and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing 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. Accordingly, we do not express an audtt opinion.
• 1. Basedon our review conducted as above, nothing has come to our attention that causes us to believe that the accompanying Statement of unaudited financial results prepared in accordance with the recognition and measurement principles laid down in lnd AS 34, prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and other recognized accounting principles generally accepted in India has not disclosed the information required to be disclosed in terms of the Regulation 33 of the Regulation including the manner in which it is to be disclosed, or that it contains any material misstatement.

For MSKA& Associates Chartered Accountants ICAIFirm Re istration NO.105047W

Partner Membership No.: 061083 UDIN: 20061083AAMBC1185 Pune, February 12, 2020

Head Office: Roor 3, Enterprise Centre, Nehru Road,NearDomesticAirport, Vile Parle (E), Mumbai400099, INDIA,TeL:+9122 33589800 Bengaluru I Chennal I Hyderabad I KoLkata I Mumbaf I New Delhi - Gurugram I Pune www.mska.in