Deepak Nitrite Limited — Interim / Quarterly Report 2021

Jul 29, 2021

DNL / 1 40l NSE | 1208 I 2021 July 29,2021

Listing Department Nationat Stock Exchange of India Limited Exchange Ptaza Bandra Kurta Comptex Bandra (E) MUMBAT - 400 051

Stock Symbol: DEEPAKNTR

Re: Un-audited Financial Results for the Quarter ended 30th June, 2021

We wish to inform you that the Board of Directors of the Company at its meeting hetd today i.e. 29th July,2021 has considered and approved the Standatone and Consotidated Un-audited Financiat Resutts of the Company for the Quarter ended 30th June, 2021.

Pursuant to Regulation 33 of the SEBI (Listing Obtigations and Disctosure Requirements) Regulations, 2A15 ("Listing Regutations"), we are sending herewith Standatone and Consotidated Un-audited Financial Resutts of the Company for the Quarter ended 30th June, 2021, duty signed by the Chairman and Managing Director of the Company.

Further, we also enclose herewith Limited Review Report issued by M/s Detoitte Haskins & Setts LLP, Chartered Accountants, Statutory Auditors of the Company as required under Regutation 33 of the Listing Regulations.

The Board Meeting commenced at 2:00 P.M. and conctuded ⁶¹5'45 p.*.

Ptease take the same on your record.

Thanking you,

Yours faithfutty, For DEEPAK NITRITE LIMITED

AI

Encl: as obove

DEEPAK NITRITE LIMITED

wwwgodeepakcom

CIN: 124110GJ1970P1C001735 Registered & Corporate Office: Aaditya-1, Chhani Road, Vadodara-390 024. Gujarat, India. Tet:+91"2652765200/3960200 | Fax:+912652765344 ^Investor Relations Contact: investor@ godeepak.com

DEEPAK NITRITE LIMITED

Registered Office : Aadflya-I, Chhani Road, Vadodara - 390 024, Gujarat
Web Site : www.godeepak.com, Investors Relation Contact : investor@godeepak.com
Corporate Identification Number: L24110GJ1970PLC001735,Tel.: +91-265-2

STANDALONE AND CONSOLIDATED UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH JUNE, 2021

									₹ in Crores
				STANDALONE RESULTS			CONSOLIDATED RESULTS
$\mathbf{x}$	Particulars		Quarter Ended		Year Ended		Quarter Ended		Year Ended
L		30.06.2021	31.03.2021	30.06.2020	31.03.2021	30.06.2021	31.03.2021	30,06.2020	31.03.2021
		(Unaudited)	(Refer Note 4)	(Unaudited)	(Aud ted)	(Unaudited)	Refer Note 4)	(Unaudited)	(Audited)
	Income
	(a) Revenue from operations	527.25	525.70	350.40	1,809.14	1,526.22	1,463.23	574.49	4,359.75
	(b) Other income iRefer note 2)	43.47	2.82	4.86	13.54	8.25	5.94	6.75	21.52
	Total Income	570.72	528.57	355.26	1,322.68	1,534.47	1,469.17	681.24	4,381.27
$\sim$	Expenses
	(a) Cost of materials consumed	268.68	237.58	148.20	778.25	915.52	797.14	318.47	2.274.27
	(b) Changes in inventories of finished goods and	[34.82]	(5.62)	(6.09)	(7.36)	(95.86)	(29.95)	15.32	(10.01)
	Work-in-progress
	(c) Employee benefits expense	50.64	42.04	50.12	181.05	68.98	58.18	61.81	247.04
	(d) Finance Costs	0.32	0.23	2.88	4.12	10.94	14.20	24.73	74.20
	(e) Depreciation and amortisation expense	17.51	21.10	14.28	66.88	43.56	56.46	51.01	152.63
	(f) Power & Fuel Expenses	44.45	40.76	24.31	134.03	88.98	82.76	42.23	264.74
	(g) Other expenses	56,15	55.28	36.25	187.10	97.10	100.44	50.95	336.68
	Total expenses	402.93	391.37	269.95	344.07	1,129.22	079.23	548.60	3,339.55
	Profit before Tax (1 - 2)	167.79	137.15	85.31	478.6	405.25	389.94	132.64	1,041.72
	Tax Expense w
	(a) Current Tax	33.69	34.73	20.95	123.22	99.77	100.30	26.62	239.65
	(b) Deferred Tax	(0.82)	1.32	0.75	0.67	2.85	(0.47)	$\ddot{.}0.1$	26.26
	Total Tax Expenses	32.87	36.05	21.70	123.89	102.62	99.83	33.69	265.91
	Net Profit for the period (3-4) in,	134.92	101.10	63.61	354.77	302.63	290.11	98.95	775.8
	Other Comprehensive Income ഹ
	a. Items that will not be reclassified to profit and loss			(0.25)	(1.85)	(0.45)	0.46	(0.25)	11.54
	i. Remeasurements of the defined benefit plans	(5, 45)	0.15 0.01	0.07	0.10	0.03	$\overline{0}$	$\overline{0}$	0.10
	it. Equity Instruments through Other Comprehensive	0.03
	Income (FVOCI)						(0.12)	0.05	0.37
	iii. Income tax related to items above	$\frac{0}{2}$	(0.04)	0.05	0.45	0.10			(1.07)
	Other Comprehensive Income (net of tax)	(0.32)	0.12	(0.13)	(1.30)	(0.32)	0.35	(0.13)
	Total comprehensive income for the period (5+6) $\mathcal{L}$	34.60	101.22	63.48	353.42	302.31	290.46	98.82	774.74
	Paid-up Equity Share Capital (Face Value of ₹ 2/~ each). m	27.28	27.28	27.28	27.28	27.28	27.28	27.28	27.28
	Children Equity	$\frac{1}{2}$	$\frac{3}{2}$		\$17.47	$\frac{4}{2}$	$\frac{4}{2}$	$\frac{4}{3}$	2.319.37
	Contribution, Diluted Earning per share (of ₹ 2/- each) (not	9.89	7.41	4.66	26.01	22.19	21.27	7.25	56.88

$40j$

DEEPAK NITRITE LIMITED

Registered Office : Aaditya-I, Chhani Road, Vadodara - 390 024, Gujarat
Web Site : www.godeepak.com, Investors Relation Contact : investor@godeepak.com
Corporate Identification Number: L24110GJ1970PLC001735,Tel.:- +91-265-

SEGMENT-WISE REVENUE, RESULTS, SEGMENT ASSETS AND SEGMENT LIABILITIES

Particulars Sr.			STANDALONE RESULTS			CONSOLIDATED RESULTS
$\dot{z}$		Quarter Ended		Year Ended		Quarter Ended		Year Ended
	1.2021 30.06	31.03.2021	30,06.2020	31.03.2021	30.06.202	31.03.2021	30,06.2020	31.03.2021
Segment Revenue (Revenue from operations): $\blacksquare$	idited) Unau	Refer Note 4)	(Unaudited)	(Audited)	(Unaudited)	Refer Note 4)	(Unaudited)	(Audited)
a) Basic Chemicals
b) Fine & Speciality Chemicals	248.89	245.21	52.89	769.84	248.89	245.21	146.51	760.17
	206.93	205.95	139.77	766.55	206.93	205.95	139.77	766.55
c) Performance Products	93.28	86.66	60.55	304.40	93.28	86.66	60.33	304,18
d) Phenolics					998.97	937.53	330.69	2,560.50
Total	549.10	537.82	353.21	1,840.79	,548.07	1,475.35	677.30	4.391.40
Less : Inter segment revenue	21.85	12.12	2.81	31.85	21.85	12.12	2.81	31.65
Total Revenue from Operations	527.25	525.70	350.40	1,809.14	1,526.22	1,463,23	674.49	4,359.75
Segment Results before Tax & Interest: $\sim$
a) Basic Chemicals	85.06	70.71	36.56	195.03	85.07	70.71	36.41	94.87
b) Fine & Speciality Chemicals	67.41	79.71	51.58	332.95	67, 41	79.71	61.85	333.73
c) Performance Products	2.12	3.05	8.65	22.48	2.11	3.05	6.67	22.63
d) Phenolics			×	×	287.26	266.78	69.08	632.57
Total	54.59	[53.47	104.89	550.46	441.85	420.25	174.01	1,183,80
Less; i) Interest	0.32	0.23	2.88	4.12	10.94	14.20	24.73	74.20
ii) Other un-allocable expenditure (Net of un-
allocable Income)	(13, 52)	16.09	16.70	67.73	25.56	16.11	16.64	67.88
Total Profit Before Tax	167.79	137.15	85.31	478.61	405.25	389.94	132.64	1,041.72
Segment Assets $\overline{m}$
a) Basic Chemicals	460.21	424.67	419,64	424.67	460.21	424.67	419.64	424.67
b) Fine & Speciality Chemicals	440.41	459.02	370.27	459,02	440.41	459.02	370.12	459.02
c) Performance Products	423.78	417.85	118.40	417.85	423.78	417.91	416.39	417.91
d) Phenolics					2,072.72	1,950.26	1,712.14	,950.26
e) Others un-allocable	003.80	868.97	730.25	868.97	442.83	308.44	169.11	308.44
Total Segment Assets	2,328.20	2,170.51	938.56 m.	170.51 $\ddot{\sim}$	839.95 $\mathbf{r}$	3,560.30	3,087,40	3,560.30
Segment Liabilities 4
a) Basic Chemicals	88.07	74.17	82.54	74.17	88.02	74.17	82.54	74.17
b) Fine & Speciality Chemicals	79.37	83.72	70.10	83.72	79.37	83.72	68.86	83.72
c) Performance Products	67.91	76.00	47.85	76.00	67.95	76.02	47.05	76.02
enotics ation eu					843.00 112.68	888.67	1,034.95	888.67
Qun-allocable	113.53	91.87	183.26	91.87		91.07	183.26	91.07
Cament Liabilities	348.88	325.76	383.75	325.76	1,191.02	1,213.65	1,416.66	1,213.65

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	Only $\mathbf{u}$ tron $10 -$	preparation of these financial results including recoverability of trade receivables and inventories. In developing the of these financial results. The impact of the same may differ from that estimated as at the date of approval of these ed figures in respect of the full financial year and the published year to date figures upto the end of third quarter of the the economic conditions due to COVID-19, the management has considered relevant internal and external sources of financial results and the Group will continue to closely monitor the developments. information, including economic forecasts as at the date of approval The figures of the last quarter are the balancing figure between audit assumptions and estimates relating to the future uncertainties in financial year. $\blacktriangledown$	Corporate Identification Number: L24110GJ1970PLC001735,Tel.: +91-265-2765200, Fax: +91-265-2765344 Registered Office : Aaditya-I, Chhani Road, Vadodara - 390 024, Gujarat Web Site : www.godeepak.com, Investors Relation Contact : investor@godeepak.com	LIMITED NITRITE DEEPAK
			Other Income in standalone results for the quarter ended June 30, 2021 includes Dividend income of ₹ 39.20 Crores received from Deepak Phenolics Limited, a wholly owned subsidiary of the The above Unaudited financial results were reviewed by the Audit Committee and have been considered and approved by the Board of Directors at their meeting held on July 29, 2021. The Group has considered the possible effects of COVID 19 in the Company. NOTES: $\sim$ $\rightarrow$
Chairman & Managing Director For DEEPAK NITRITE LIMITED D. C. MEHTA WITEO €, MOONS ANGEL $x + 1$ Vadodara, July 29, 2021

Deloitte Haskins & Sells LLP

Chartered Accountants ¹9th floor, Shapath-V S,G. Highway Ahmedabad-380 01 5 Gujarat, India

Tel: +91 79 66827300

INDEPENDENT AUDITOR'S REVIEW REPORT ON REVIEW OF INTERIM STANDALONE FINANCIAL RESULTS

TO THE BOARD OF DIRECTORS OF DEEPAK NITRITE LIMITED

1. We have reviewed the accompanying Statement of Standalone Unaudited Financial Results of Deepak Nitrite 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, 201-5, as amended.

2. This Statement, which is the responsibility of the Company's Management and approved by the Cornpany's 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 issued thereunder and other accounting principles gener-ally accepted in India. Our responsibility is to express a conclusion on the Statement based on our revrew,

3. \tVe conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410 'Review of Interim Financial information Performed by the Independent Auditor of the Entity', issued by the Institute of Chartered Accountants of India (iCAI). A review of interim financial information consists of making inquiries, primarily of the Company's personnel responsible for financial and accounting matters, and applying analyticai 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 aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

4. Based on our review conducted as stated in paragraph 3 above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in the aforesaid 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 SEBI (Listing Obligations and Disclosure Requirements) Regulations,20L5, as amended, including the manner in which it is to be disciosed, or that it contains anV material misstatement.

For Deloitte Haskins & Sells LLP Chartered Accountants (Firm's Registration No. 117366WW-100018)

J/ n \A-qdfuds Kc-'"t

Kartikeya Ravai ( Pa rtner) (Membership No. 106189) (U DIN : 2 1 1061 89 AAAAJI2257 )

Place: Vadodara Date: July 29,2027

Regd. Office: One Internatjonal Center, Tower 3 , 27th-32ndFloor, Senapati Bapat lvlarg, Elphinstone Road (West), Mumbai-4OO 013, lvaharashtra, India.(LLP ldentification No. MB-8737)

Deloitte Haskins & Sells LLP

Chartered Accountants ¹9th floor, Shapath-V S.G. Highway Ahmedabad-380 01 5 Gujarat, India

Tel: +91 79 66827300 Fax: +91 79 66827400

INDEPENDENT AUDITOR'S REVIEW REPORT ON REVIEW CONSOLIDATED FINANCIAL RESU LTS INTERIM

TO THE BOARD OF DIRECTORS OF DEEPAK NITRITE LIMITED

1. We have reviewed the accompanying Statement of Consolidated Unaudited Financial Regutts of DeePak Nitrlte Limltqd ("the Parent") and its subsidiaries (the Pqrent and 1ts subsidiaries together referred to as "the Group"), for the quarter ended June 30, 2021 ("the Statement") being submitted by the Parent pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations,2OLS, as amended.

2. This Statement, which is the responsibility of the Parent's Management and approved by 'Lhe Parent's 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 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 of the Statement in accordance with the Standard on Review Engagements (SRE) 2410 "Review of Interim Financial Information Performed by the Independenl Auditor of the Entity", issued by the Institute of Chartered Accountants of Indra (iCAI). A re.riew of interim financial information consists of making inquiries, primariiy of Parent'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,20l-3 and consequently does not enable us to obtain assurance that we would become aware of all significant matters that miqht be identified in an audit. Accordingly, we do not express an audii opinion.

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

1. Ttre Statement includes the results of the followina entities:

2. a, Deepak Nitrite Limited Parent Company

3. b. Deepak Phenolics Limited Subsidiary Company
4. c. Deepak Nitrite Corporation inc., United States of America Subsidiary Company
5. d. Deepak Clean Tech Limited Subsidiary Company

5, Based on our review conducted and procedures performed as stated in paragraph ³ above and based on the consideration of the review reports of the other auditors referred to in paragraph 6 below, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standard and other accounting principles generally accepted in india, has not disclosed the information required to be

Center, Tower 3, 27th-32nd Floor, Senapati Bapat Marg, Elphinstone Road (West), Mumbai-4oo 01 3, lvlaharashtra,

Deloitte Haskins & Sells LLP

disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2075, as amended, including the manner in which it is to be disclosed, or that it contains any material misstatement.

6, We did not review the financial results of one subsidiary included in the consolidated unaudited financial results, whose financial results reflect total assets of Rs. O,87 crore as at June 30, 2027 and, total revenues of Rs.O,05 crore for the quarter ended June 30, 2O2I, total net profit after tax of Rs. 0.01 crore for the quarter ended June 30, 2021 and total comprehensive income of Rs 0.01 crore for the quarter ended June 30, 202I, whose financial results have not been reviewed by us. These financial results have been reviewed by other auditor whose report has 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 this subsidiary is based solely on the report of the other auditor and the procedures performed hy us as stated in paragraphSabov€_

Our conclusion on the Statement is not modified in resoect of this matter.

For Deloitte Haskins & Sells LLP (Firm's Registration No. Chartered Accountants r77366W lW -100018) r/ a\

J{ r,ftk4de" K,o.nt KartiUeva Ravar

( Partner) (Membership No. 106189) (UDIN : 21 1O61B9AAAAJJ2556)

Place: Vadodara Date: Juiy 29, 2A27

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