Deep Industries Limited — Interim / Quarterly Report 2022

Nov 1, 2021

Oi,l& Gas Field Services

November 1, 2021

To,

Corporate Relations Department Bombay Stock Exchange Limited 2nd Floor, P]. Towers, Dalal Street, Mumbai - 400001 SCRIPCODE:543288

To,

Corporate Relations Department National Stock Exchange of India Ltd. Exchange Plaza.Plot.No, C/1, G-Block, Bandra Kurla Complex, Bandra (E), Mumbai - 400 051. SYMBOL:DEEPINDS

Dear Sir/Madam,

• Sub: Outcome of the Board meeting held on today i.e. November 1, 2021 . Unaudited Financial Results (Standalone & Consolidated) of the Company for the quarter and half year ended September 30, 2021 and Declaration of Interlm Dividend.
• , Ref: Regulation' 30 read with Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements). Regulations, 2015 ('S~BI (~OD:R)Regulation).

With reference to subject matters, we herby inform you that Board of Directors of the Company at its meeting held on today i.e. November 1, 2021 inter-alia transacted following businesses;

1. Approval of Unaudited Financial Results (Standalone and Consolidated) for the quarter and half year ended on September 30, 2021.' .

Pursuant to Regulation 30 and 3,3 of the SEBI (LODR)Regulations, we enclose herewith the Unaudited Financial Results (Standalone and Consolidated) of the Company for the quarter and half year ended on September 30, 2021 along with the Limited Review Report of Mjs Dhirubhai Shah & Co LLP,Statutory Auditors of the Company,

• 1. Adoption of the Dividend Distribution Policy in terms of Regulation 43A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
• 1. Declaration of Interim Dividend of Rs.l.40 i.e. 14% on the face value of Rs.l0j- per share for the financial year 2.021-22.

The Interim Dividend shall be paid to the Equity Shareholders whose names appear on the Register of Members of the Company or in the records of the Depositories as beneficial owners of the shares as on Thursday, November 11, 2021, which is the Record Date fixed for the purpose. The Dividend shall be paid within stipulated timelines as prescribed under law.

The meeting of Board of Directors commenced at 12.15 p.m. and concluded at 3.00 p.m.

You are requested to take the same on your records.

Encl: as above

Read.Off .. • DEEPINDUS!RIES LIMITED (Formerly Known as Deep CH4 Limited) 12~ & 14 AbhlshreeCorporatePark, Ambli Bopal Road,Ambli, Ahmedabad-380058 Tel. +~1. 2717 298510 M: -=t-91 9825600533 Fax: +91 2717 298520 •• Email: mfo@deepindustries.com Website: www.deepindustries.com CIN:L14292GJ2006PLC049371

IDhirubhai Shah & Co LLP

CHARTERED ACCOUNTANTS

4th Floor, Aditya Building, Near Sardar Patel Seva Samaj, Mithakhali SixRoads. Ellisbridge. Ahmedabad 380006.

Independent Auditor's Review Report on Unaudited Quarterly Standalone Financial Results' of Deep Industries limited (Formerly known as Deep CH4 Limited) under Regulation 33 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015

To The Board of Directors of Deep Industries limited (Formerly known as Deep CH4 Limited)

• 1. We have reviewed the accompanying Statement of unaudited standalone financial results of Deep Industries Limited (Formerly known as 'Deep CH4 Limited) (/the Company) for the quarter and half year ended on 30th September, 2021 ('the Statement'), being submitted by the Company pursuant to the requirements of Regulation 33 ofthe SEBI(listing Obligations and Disclosure Requirements) Regulations, 2015 (as·amended), including relevant circulars issued by the SEBIfrom time to time.
• 1. This Statement, which is the responsibility ofthe Company's management and approved by the 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, and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. Our responsibility is to issue a report on the Statement based on our review.
• express an audit opinion. 3. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410 "Review 0/ Interim Financial In/ormation 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 of interim financial information consists of making inquiries, primarily of the Company's personnel :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 specified under Section 143(10) of the Companies Act, 2013 and consequently does not enable us to obtain assurance that we would become

Branch: 204Saker Complex, Opp Abs Tower. Old Padro Road, Vadodara : 390015

~ 4. Basedon our review conducted asabove, nothing hascometo our attention that causesus I to believe that the accompanying Statement, prepared in accordance with applicable accounting standards and other recognized accounting practices and policies has not disclosed the information required to be disclosed in terms of Regulation33 of the SEBI (Listing Obligations and Dlsclosure Requirements) Regulations,2015 including the manner in which it isto be disclosed,or that it contains anymaterial misstatement.

Emphasisof Matter

f.;

1. We draw attention to the Note - 6 of the financial results for the quarter and half year ended on September 30 2021, in respect of the decision of the Boardof Directors to cease the amortization of goodwill with effect from current financial year l.e., 1st April, 2021 as given the strong market position in the industry with increasingorder book, the Board of Directors believe that going forward, th'e markets would be valuing the company more efficiently than ever. In absence of amortizing the goodwill, the same will be tested annually for impairment which is In line with the treatment stipulated under Ind AS36 and Ind AS103.

Our conclusion is not modified in respect of this matter.

Other Matters

• 1. We draw attention to Note 7 to the accompanyingstatement,which describes significant uncertainties due to the outbreak of COVID-19pandemic.The impact of the pandemic on the operations of the Company and its financial position as at 30 September 2021 is significantly dependent on uncertain future economic conditions. Our conclusion is not modified in respect of this matter.
• 1. The Statement also includesfigures for the quarter and half year ended ao" september, 2020 which have been approved by the .Boardof-Directors and.ls based on,management certified standalone financial information of the Companyand have not been subjected to either audit or review.

For, Dhirubhai Shah & Co LLP Chartered Accountants Firm RegistrationNo. 102511W/W100298

).

Membership No: 140594

ICAI UDIN: 21140594AAABFA2934

AnikShah Partner

Place:Ahmedabad Date: November 1, 2021

CHARTERED ACCOUNTANTS

4th Floor, Aditya Building, Near Sardar Patel Seva Samaj, Mithakhali Six Roods.Ellisbridge, Ahmedabad 380006.

Independent Auditor's Review Report on Unaudited Quarterly Consolidated Financial Results of DeepIndustries Limited (Formerly known as Deep CH4limited) under Regulation 33 of the SEBI(listing Obligations and DisclosureRequirements) Regulations,2015

To the Boardof Directorsof Deep IndustriesLimited (Formerly known as DeepCH4Limited)

• 1. We have reviewed the accompanying Statement of unaudited consolidated financial results of Deep Industries limited (Formerly known as Deep CH4 limited) (/'the Parent") and its subsidiaries(the Parent and its subsidiariestogether referred to aslithe Group") for the quarter and half year ended so" September, 2021 (lithe Statement"), being submitted by the Parent pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ("Usting Regulations").
• 1. This Statement, which is the responsibility of the Parent's management and approved by the Parent'sBoard of Directors, has been prepared in accordancewith the recognition and measurement principles laid down in Indian Accounting Standard 34 "Interim Financial Reporting" ("Ind AS 34"), prescribed under Section 133 of the CompaniesAct, 2013, and other accounting principles generally acceptedin India and in,compliancewith Regulation 33 of the listing Regulations.Our responsibility isto expressa conclusion on the Statement basedon our review.
• 1. We conducted our review of the Statement in accordancewith 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 Statement ls free of material misstatement. A review of interim financial information consists of making inquiries, primarily of the Company's personnel responsible for financial and accounting matters and applying analytical and other review procedures.A review is substantially lessin scopethan an audit conducted in accordancewith Standardson Auditing specified under Section 143(10)of the Companies Act, 2013and consequently does not enable usto obtain assurancethat we would become aware of all significant matters that might be identified in an audit. Accordingly,we do not expressan audit opinion.

Phone; (079) 2640 3325/26 I Website: www.dbsgroup.in I

• 1. The Statement includes the financial results of following subsidiaries:
  • Deep International DMCC, Dubai
  • Raas Equipment Private limited
  • Deep Onshore Services Private Limited
  • Deep Onshore Drilling Services Private Limited
• 1. Based on our review conducted and procedures performed as stated in paragraph 3 above, nothlng 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 Indian Accounting Standard and other accounting principles generally accepted in India, has not disclosed the Information required to be disclosed in terms of Regulation 33 of the listing Regulations, Including the manner in which it is to be disclosed, or that it contains any material misstatement.

Emphasis of Matter

1. We draw attention to the Note - 6 of the financial results for the quarter and half year ended on September 30, 2021, in respect of the decision of the Board of Directors of the holding company to cease the amortization of goodwill with effect from current financial year i.e., 1st April, 2021 as given the strong market position in the industry with increasing order book, the Board of Directors of the holding company believe that going forward, the markets would be valuing the holding company more efficiently than ever. In absence of amortizing the goodwill, the same will be tested annually for impairment which is in line with the treatment stipulated under Ind AS 36 and Ind AS 103.

Our conclusion is not modified in respect ofthis matter.

QCherMatters

--_.-._ ..__._-_.

1. We did not review interim financial information of 1 subsidiary included in the consolidated unaudited financial results, whose financial statements reflects' [the figures reported below are before giving effect to consolidation adjustments] total assets of Rs. 2,988.26 lakhs, total revenue of Rs. 1,881.32 lakhs and Rs. 2,058.77 lakhs for the quarter and half year ended respectively and net profit of Rs. 179.52 lakhs and Rs. 188.44 lakhs for the quarter and half year ended respectively, as considered in the financial results. This interim financial information has been reviewed by other auditors whose reports have been furnished to us by the Management and our conclusion on the statement, in so far it ._ - relates to the amount and disclosures included in respect of this subsidiary, is based solely on the reports of other auditor and the procedures performed by us as stated in paragraph 3 above.

• 1. We draw attention to Note 7 to the accompanying statement, which describes significant uncertainties due to the outbreak of COVID19pandemic. The impact of the pandemic on the operations of the Group and its financial position as at 30 September 2021 is significantly dependent on uncertain future economic conditions. Our conclusion Is not modified in respect of this matter.
• 1. The Statement also includes figures for the preceding quarter and half year ended 30th September, 2020 which have been approved by the Board of Directors and Is based on management certified consolidated financial information of the Group and have not been subjected to either audit or review.

For, Dhlrubhai Shah & Co LlP Chartered Accountants Firm Registration No.l0251lW/Wl00298

Place: Ahmedabad AnikShah Date: November 1, 2021

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		Standalone						Consolidated
Sr.	Particulars		Quarter ended			Six Month ended	Year ended		Quarter ended			Six month Ended	Year ended
No.		30-09-2021	30-06-2021	30-09-2020	30-09-2021	30-09-2020	31/03/2021	30-09-2021	30-06-2021	30-09-2020	30-09-2021	30-09-2020	31/03/2021
	(Refer Notes below)	Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Audited	Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Audited
1	Income from Revenue
	(a) Revenue from operations	6,625.62	6,786.43	4,413.87	13,412.05	8,418.50	17,845.14	9,126.79	7,101.01	4,660.26	16,227.80	8,985.44	19,370.55
	(b) Other Income	130.54	107.05	322.90	237.59	402.21	673.03	147.22	88.02	322.88	235.24	402.22	655.13
	Total Income	6,756.16	6,893.47	4,736.77	13,649.64	8,820.70	18,518.17	9,274.01	7,189.03	4,983.14	16,463.04	9,387.67	20,025.68
$\overline{z}$	Expenses
	a Cost of materials consumed	2,800.63	3,007.31	1,786.15	5,807.94	3,233.11	7,305.02	4,929.82	3,118.63	1,962.41	8,048.45	3,409.37	7,543.22
	Purchase of stock-in-tradeb
	Changes in inventories of Finished goods, work-in-progress$\mathsf{c}$	284.56	(257.50)	(353.12)	27.07	(397.42)	(903.01)	(191.73)	(257.50)	(357.17)	(449.23)	(401.47)	(514.41)
	Employee benefits expensesl d	535.27	530.07	676.34	1,065.34	1,135.27	2,174.37	682.83	649.68	771.64	1,332.52	1,327.96	2,660.36
	Finance coste	131.71	141.64	250.39	273.36	535.18	922.94	149.50	144.26	260.60	293.76	555.57	936.33
	Depreciation and amortization expenses	575.25	573.69	2,181.67	1,148.94	4,362.76	8,719.00	591.03	585.86	2,191.31	1,176.88	4,382.03	8,758.89
	Other expenses$\mathbf{g}$	594.34	506.40	323.72	1,100.73	678.67	1,473.54	1,017.60	570.35	193.09	1,587.96	717.31	1,646.91
	Total Expenses	4,921.76	4,501.61	4,865.15	9,423.37	9,547.57	19,691.85	7,179.04	4,811.29	5,021.88	11,990.33	9,990.76	21,031.31
3	Profit / (Loss) from ordinary activities before exceptional	1,834.40	2,391.86	(128.38)	4,226.26	(726.87)	(1, 173.68)	2,094.97	2,377.74	(38.74)	4,472.71	(603.10)	(1,005.62)
	items and tax
4	Exceptional items
5	Profit / (Loss) from ordinary activities before tax	1,834.40	2,391.86	(128.38)	4,226.26	(726.87)	(1, 17368)	2,094.97	2,377.74	(38.74)	4,472.71	(603.10)	(1,005.62)
6	Tax Expense
	a Provision for taxation (net)					$\overline{a}$		7.26			7.26		1.77
	b Earlier year tax provision (written back)
	c Provision for Deferred tax liability/(asset)	(52.11	704.61	165.61	652.50	339.93	(7.489.51)	(44.79)	705.45	165.61	660.66	339.93	(7, 487.72)
$\overline{7}$	Net Profit / (Loss) for the period	1,886.51	1,687.26	(293.99)	3,573.76	(1,066.80)	6,315.83	2,132.50	1,672.29	(204.35)	3,804.79	(943.03)	6,480.32
	Net Profit attributable to:
	a. Owners	1,886.51	1,687.26	(293.99)	3,573.76	(1,066.80)	6,315.83	2,117.46	1,672.13	(204.35)	3,789.59	(943.03)	6,476.88
	b. Non-controlling interest							15.04	0.16		15.20		3.44
8	Other comprehensive income / (expenses)
	Items that will not be reclassified to profit or loss(net ofa.tax)						(1.18)				$\mathbf{r}$		(1.18)
	b.Items that will not be reclassified to profit or loss(net of
	tax)	0.53	1.02		1.55		1.63	0.53	1.02		1.55		1.63
9	Total comprehensive income for the period	1,887.04	1,688.28	(293.99)	3,575.31	(1,066.80)	6,316.28	2,133.03	1,673.31	(204.35)	3,806.34	(943.03)	6,480.78
	Total comprehensive income attributable to:
	a Owners	1,887.04	1,688.28	(293.99)	3,575.31	(1,066.80)	6,316.28	2,117.99	1,673.15	(204.35)	3,791.14	(943.03)	6,477.33
	b Non-controlling interest							15.04	0.16		15.20		3.44
10	Paid-up equity share capital (face value of Rs.10/-)	3,200.00	3,200.00	3,200.00	3,200.00	3,200.00	3,200.00	3,200.00	3,200.00	3,200.00	3,200.00	3,200.00	3,200.00
11	Other Equity						99,452.35						1,02,974.38
12	Earnings per equity of Rs. 10/- each (not annualized)
	a. Basic (in Rs.)	5.90	5.27	(0.92)	11.17	(3.33)	19.74	6.66	5.23	(0.64)	11.89	(2.95)	20.25
	b. Diluted (in Rs.)	5.90	5.27	(0.92)	11.17	3.33	19.74	6.66	5.23	(0.64)	11.89	(2.95)	20.25

DEEP IND ES LIMITED

REGI.OFFICE:12A &14, ABHISHREECORPORATEPARK,AMBLI SOPAL ROAD, AMBLI, AHMEDABAD - 3800S8

Ph..: 02717-298510 Fax: 02717-298520i E-mail: cs@deepindustries.com; website:www.deepindustries.com, CIN:l14292GJ2006PlC049371

Standalone and Consolidated Statement of Assets and Liabilities as at 30 September 2021

		Standalone				Consolidated		(RS In Lakhs)
	As at 30-09-2021		As at 31-03-2021		As at 30-09-2021		As at "31-03-2021
ASSETS	(Unaudited)		(Audited)		(Unaudited)		(Audited)
NON-CURRENTASSETS
(a) Property. Plant and Equipment	45,217.09		46,054.32		47,819.64		48.276.58
(b) Capital Work in Progress	65.97		65.50		66.09		65.57
(c) Intangible Assets	38,496.02		38,496.58		38,496.03		38,496.58
(d) Financial Assets
(i) Investments	1,747.74		1,746.18
					1,587.92		1,586.36
(ii) Loans							-
(iii) Others	-		-		12.03
(e) Other Non Current Assets	194.59		578.34		196.93		588.13
		85,721.42		86,940.91		88,178.64		89,013.22
CURRENTASSETS
(a) Inventories	2,998.27		3,025.33		4,531.95		3,895.55
(b) Financial Assets
(i) Investments	6,076.26		1,280.30		6,077.28		1,281.30
(ii) Trade Receivables	11,045.75		10,738.26		11,794.89		12.,763.10
(iii) Cashand Cash Equivalents	1,580.97		1,472.73		2,388.40		1,94296
(iv) Bank balances other than above (ii)	2,178.39		2,612.2.6		2,178.39		2.,6122.6
(v) Loans	1.51		2.72		1.51		272
(vi) Others	976.14		1,518.86		133.78		101.53
(c) Other Current Assets	7,741.13		5,563.69		8,005.35		5,675.2.7
		32,598.42		26,214.15		35,111.54		28,274.70
TOTAL ASSETS		1,18,319.84		1,13,155.07		1,23,290.18		1,17,287.92 I
EQUITYA.NOLIABILITIES
EQUITY
(a) Equity Share Capital	3,200.00		3,200.00		3,200.00		3,200.00
(b) Other Equity	1,03,034.17		99,452.35		1,06,784.80		1,02,974.38
		1,06,234.17		1,02,652.35		1,09,984.80		1,06,174.38
Non Controlling Interest				-		18.93		3.73
LIABILITIES
NON-CURRENTLIABILITIES
(a) Financial Liabilities
(i) Borrowings	383.94		848.28		659.70		848.28
(ii) Others
(b) Deferred Tax Liabilities (Net)	3,748.93		3,096.43		3,758.88		3,098.2.2.
(c) Provisions
		4,132.88		3,944.72		4,418.59		3,946.50
CURRENTLIABILITIES
(a) Financial Liabilities
(i) Borrowings	2,482.36		3,240.92		2,673.93		3,2.40.92
(ii) Trade Payables
- Dues to Micro & Small Enterprises	136.73		200.01		136.73		244.79
- Dues to other than Micro and small
enterprises	3,921.25		2,485.58		4,565.48		2,994.50
. (iii) Other Financial Liabilities	414.86		165.17		502.38		216.11
(b) Other Current Liabilities	997.60		466.33		989.35		466.99
(c) Provisions
(d) Current Tax Liabilities (Net)
		7,952.80		6,558.00		8,867.87		7,163.30
TOTAL EQUITY& LIABILITIES		1,18,319.84		1,13,155.07		1,23,290.18		1,17,287.92

DEEP INDUSTRIES LIMITED

REGI. OFFICE:12A &14, ABHISHREE CORPORATEPARK, AMBLI BOPAl ROAD, AMBlI, AHMEDABAD· 380058 Ph.: 02717-298510 Fax: 02717-298520, E-mail: cs@deepindustries.comj website:www.deepindustries.com, CIN:l14292GJ2006PlC049371 Standalone and Consolidated Statement of Cash Flow for the half year ended 30th September 2021

	Standalone		Consolidated
	For half year ended on30.09.2021	For year ended on31.03.2021	For half year ended on30.09.2021	For year ended on31.03.2021
(A) CASH FLOW FROM OPERATING ACTIVITIES	(Unaudited)	(Audited)	(Unaudited}	(Audited)
Profit/ (loss) Before Tax	4,226.26	(1,173.68)	4,472.71	(1,005.62)
Adjustmentsfor:
Depreciation and amortization	1,148.94	8,719.00	1,176.88	8,758.89
Interest and finance charges	273.36	92i94	296.16	936.33
Interest Income	(68.26)	(303.89)	(68.21)	(285.98)
(Gain)/loss on fixed assets sold/ discarded (net)	(17.25)	(0.30)	(17.25)	(0.30)
(Gain)/loss on investments sold/ discarded (net)	(96.50)	(292.07)	(96.50)	(292.07)
Dividend Income	(0.85)	(0.89)	(0.85)	(0.89)
Net unrealized (gain)/Ioss on foreign currency transaction andtranslation(relating to other heads)
Other Adjustment	8.06	0.45	13.57	(42.18)
OperatingProfit before Working Capital Changes	5,473.75	7,871.55	5,776.52	8,068.17
Adjustments for changes in working capital:
in trade receivables, loans & Advances(Increasel/decrease	(1,420.28)	2,297.68	(861.89)	2,478.26
and Other Assets
(Increase)/decreasein inventories	27.07	(903.01)	(636.40)	(1,249.63)
in Trade Pavables, Other Uabilities &Increase/(decrease)	2,153.36	(1,257.08)	2,271.56	(797.46)
Provisions
Cash Generated from Operations	760.14	137.59	773.28	8,499.34
Income Tax Paid	(136.99)	(411.72)	(139.82)	(411.72)
Net Cashflow from Operating Activities	6096.91	7,597.42	6409.97	8087.62
(B) CASH FLOW FROM INVESTING ACTIVITIES
Purchase/ Disposal of fixed assets & Transfer to CWIP	(325.90)	(266.94)	(734.19)	(455.87)
Proceeds from sale of fixed assets	31.53	1.00	31.53	1.00
Purchase of Investments	(9,002.53)	(9,582.96)	(9,002.56)	(9,432.78)
Sale of Investments	4,301.52	7,718.26	4,301.52	7,718.26
Investment In/ Proceed from fixed deposit	433.87	760.00	421.85	760.00
Dividend Received	0.85	0.89	0.85	0.89
Interest Received	68.26	303.89	68.21	285.98
Net Cashflow from Investing Activities	(4492.40)	(1065.86)	(4,912.80)	_1'1122.51)
(e) CASH FLOW FROM FINANCING ACTIVITIES
Proceeds/Paymentfrom Secured loans	(1,222.90)	(4,441.58)	(755.57)	(4,441.58)
MinorityInterest		-
Foreign Currency Fluctuation gain
Dividend Payment and Dividend Distribution Tax
Interest and finance charges	(273.36)	(922.94)	(296.16l	(936.33)
Net Cashflow from Financing Activities	{1496.261	15.364.52}	(1,051.73)	(5,377.91)
Net Increase/(Decrease)in Cash and Cash Equivalents	108.25	1.167.04	445.44	1,587.20
Cash and bank balances at the beginning of the year	1,472.73	305.68	1,942.96	355.76
Cash and bank balances at the end of the year	1,580.97	1,472.73	2,388.40	1,942.96

DEEP IND MITED

(Formerly Known as DEEP CH4 LIMITED)

REGI.OFFICE:12A &14, ABHISHREECORPORATEPARK,AMBLI BOPAl ROAD, AMBlI, AHMEDABAD - 380058

Ph.: 02717-298510 Fax: 02717-298520, E-mail: cs@deepindustries.com; website:www.deepindustries.com, CIN:l14292GJ2006PlC049371

• These financial results were reviewed by the Audit Committee. and were approved by the Board of Directors, in their respective meetings held on 1st November, 2021. NOTES
  • 2 The above results for the quarter and half year ended on September 30, 2021 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:
  • The Statutory Auditors of the Company have carried out a "Limited Review" of the above results as per Regulation 33 of the SEBI [Listing Obligation and Disclosure Requirements) Regulations, 2015.
  • 4 The Company is not required to give segment wise revenue details and capital employed as the Company operates in single business segment namely "Oil and Gas Field Services".
  • 5 Equity shares of the Company were listed on April 27, 2021 on 'Bombay Stock Exchange Limited ('BSE') and National Stock Exchange of India Limited ('NSE'). The Company was not mandatorily required to prepare and publish quarterly and half yearly results (both standalone and consolidated) of September 30, 2020. Accordingly, the figures for the corresponding quarter and half year ended September 30, 2020 have been approved by the Company's board of directors and were not subject to limited review by the statutory auditors of the company.
  • 6 Deep Industries Limited (erstwhile known as Deep CH4 Limited) carries a net Goodwill amounting to Rs. 384.88 Crores as on 31st March 2021. The goodwill was recorded in the books pursuant to demerger of "Services Business' from the Deep Energy Resources Limited, the demerged Company (erstwhile known as Deep Industries limited) into Deep Industries Limited, the resulting company (erstwhile known as Deep CH4 limited) with an appointed date of 1st April 2017. The Board of Directors of the company (being an unlisted company till 27th April 2021) decided to amortized the goodwill in a period of 10 years in accordance with the then applicable Indian GAAP read with scheme of Demerger approved by NCLT, accordingly the goodwill was amortized till 31st March 2021. Given the strong market position in the industry with increasing order book, the Board of Directors believe that going forward, the markets would be valuing the company more efficiently than ever and hence with effect from 1st April, 2021, the Board of Directors of the company have decided to cease the amortization of the goodwill and henceforth, the same will be tested annually for impairment which is in line with the treatment stipulated under Ind AS 36 and Ind AS 103.
  • 7 As per the current assessment of the situation based on the internal and external information available up to the date of approval of these financial results by the Board of Directors, the Company! Group continues to believe that the impact of COVID - 19 on its business, assets, internal financial controls, profitability and liquidity, both present and future, would be limited and there is no indication of any material impact on the carrying amounts of inventories, goodwill, intangible assets, trade receivable, investments and other financial assets. The eventual outcome of the impact of the global health pandemic may be different from those estimated as on the date of approval of these financial results and the Company! Group will closely monitor any material changes to the economic environment and their impact on its business in the times to come.
  • 8 The Indian Parliament has approved the Code on Social Security, 2020. This has also received consent of the Hon'ble President of India. The code when implemented will impact the contribution by the company towards benefits such as Provident Fund, Gratuity etc. The effective date(s) of implementation of this code is yet to be notified. In view of this, any financial impact due to the change will be assessed and accounted for in the period of notification.
  • 9 The Company has exercised the option permitted under Section 115BAA of the Income Tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance, 2019. Accordingly, the provision for income tax and deferred tax balances have been recorded ! remeasured using the new tax rate and the resultant impact is recognized during the quarter.
  • 10 The Consolidated Financial Results includes Financial results of the following subsidiary companies for the quarter and half year ended 30th September, 2021
    • (i) Deep International DMCC, Dubai
    • (ii) Raas Equipment Private limited
    • (iii)Deep Onshore Services Private Limited
    • (iv) Deep Onshore Drilling Services Private Limited
  • 11 Dividend for the financial year 2021-22 of Rs.1.40 per Equity share of Rs. 10 Each of the Company. The First interim dividend will be paid to the Equity Shareholders of the Company, whose names appear on the Register of Members of the Company or in the records of the Depositories as beneficial owners of the shares as on Thursday, 11th November 2021,which is record date fixed for the purpose
  • 12 Figures of previous reporting periods have been regrouped! reclassified wherever necessary to correspond with the figures of the current reporting period.

Place: Ahmedabad

For, DEEP INDUSTRIES LIMITED Date: 1st November, 2021 (Formerly Known as Deep CH4 Limited)

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Chairman & Managing Director DIN:00145639