Deepak Fertilizers Annual Report

FUTURE
READY
Transforming from Commodity to Specialty
Deepak Fertilisers And

Petrochemicals Corporation Limited
Industrial Crop Mining
Chemicals Nutrition Chemicals Annual Report 2020-21
CONTENTS
OVERVIEW
Future Ready 01
Who We Are | Company Overview 02
Key Business Initiatives 08
Consolidated Financial Highlights 10
Message from Chairman & Managing Director 12
Q&A with Chief Financial Officer 16
Awards & Recognition 19
Corporate Social Responsibility 20
STATUTORY REPORTS
ENTS
Notice 27
00
Board’s Report 00
47
Management Discussion & Analysis 00
84
Corporate Governance 103
00
FINANCIAL STATEMENTS
01 Financial Statements
Standalone Consolidated Financial Statements
ENTS CONTENTS
w 02 Auditors’ Report
Independent 129
00 Independent Auditors’ Report 202
00
Balance08
Sheet 00
139 Consolidated Balance Sheet 00
210
ts 10 of Profit and Loss
Statement 00 Consolidated Statement of Profit and Loss 00
141 212
aging Director 12 of Cash Flow
Statement 143
00 Consolidated Statement of Cash Flow 216
00
Notes to16
the Financial Statements 147
00 Consolidated Notes to the Financial Statements 218
00
19
20
OVERVIEW
01 Future Ready 01
w 02 Who We Are | Company Overview 02
08 Key Business Initiatives 08
00
ts 10 Consolidated Financial Highlights 10
Disclaimer00
aging Director 12
In this Annual
Message from Chairman & Managing Director 12
ysis 00 Report, we have disclosed forward-looking information to enable investors to comprehend our prospects and take informed
investment decisions. This report may contain forward-looking statements that set out anticipated results based on the management’s
plans and00 16
assumptions. Q&AWewithhaveChief
tried, Financial Officerto identify such statements
wherever possible, 16 by using words such as ‘anticipate’, ‘estimate’,
‘expects’, ‘projects’, ‘intends’, ‘plans’, ‘believes’, and words of similar substance in connection with any discussion of future performance. We
19
cannot guarantee thatAwards & Recognition
these forward looking statements will be realised, although we19believe we have been prudent in our assumptions. The
achievement of results is subject to risks, uncertainties and even inaccurate assumptions. Should known or unknown risks or uncertainties
materialise,20or shouldCorporate Social Responsibility
underlying assumptions 20vary materially from those anticipated, estimated or
prove inaccurate, actual results could
projected. Readers should bear this in mind. We undertake no obligation to publicly update any forward-looking statements, whether as a
result of new information, future events or otherwise.
s Consolidated Financial Statements
00
STATUTORY REPORTS
Independent Auditors’ Report 00
Our journey of transformation is unfolding slowly and steadily,
undeterred by the challenges on the way. We are committed to India’s
growth story and are aligning our businesses to be a frontrunner
in meeting India’s requirement for chemicals and strengthening its
stature in the world.
As part of our transformational journey to become a specialty

player, we have been building new business models and tailoring
our diverse product portfolio on the basis of application, usage and
target end-user industries. We are deepening our routes into the
market with our value-added crop specific fertilisers and nutrient
solutions. Our forward integration of the mining services, including
down-the-hole (DTH) and blasting solutions, has been enabling us
to serve our customers better and more efficiently. Backed by our
rich experience, in-depth sector knowledge and expertise, we are
transforming our business to make it Future Ready.
Right from the usage of Artificial Intelligence (AI) to Big Data and
Internet of Things (IoT) that would provide us the intelligence of
sustainable innovation and market, , we are transforming digitally
to remain ahead of the curve. Moreover, through Smart Factory
Initiatives in manufacturing, our seamless movement of products
has enhanced customer experience.
We are determined and focused to be the nextgen chemicals

solutions provider for mission critical sectors of the nation,
providing world-class, high quality and need-based value-added
products to end-user industries.
We, at Deepak Fertilisers And Petrochemicals Corporation Limited,

are cautiously optimistic to scale new highs, chart new territories
and build new specialities.
Our goal remains certain to serve and build sustainable futuristic

chemistries of the world, from India. We are moving fast, carving
out future opportunities and creating solutions out of the most
complex situations. We are marching ahead with conviction, agility
and determination.
We are Future Ready.

Annual Report 2020-21 | 1
WHO
WE ARE
• A diversified chemicals
solutions provider with over
40 years of rich legacy
• Most trusted chemicals and

fertilisers manufacturer
• Aligned to India’s growth

story, serving country’s
critical sectors such as
agriculture, pharmaceuticals,
mining and infrastructure
• Diversified portfolio to meet

ever-emerging needs of
consumers
• Sustainable leadership
position across all business
operations
• Preferred chemical partner,

offering value-added and
innovative customer-centric
products and solutions
02 | Deepak Fertilisers And Petrochemicals Corporation Limited

At DFPCL, we are engaged in the manufacturing of
Industrial Chemicals (Nitric Acid, Iso Propyl Alcohol,
Methanol and Carbon Dioxide) Crop Nutrition (Nitro
Phosphate, Nitrogen Phosphorous Potassium variants,
Water Soluble Fertilisers and Bentonite Sulphur) and
Technical Ammonium Nitrate (Mining Chemicals).
Under our value-added real estate (VARE) business,
we have India’s first-of-its-kind home lifestyle centre
called Creaticity in Pune. Creaticity focuses on a
holistic real estate experience with state-of-the-art
homes and interiors, along with food & beverage and
entertainment.
Headquartered in Pune, Maharashtra,

we export our products to more than
27 countries across 6 continents.
Our strategically located state-of-the-
art manufacturing plants in Taloja
(Maharashtra), Srikakulam (Andhra
Pradesh), Panipat (Haryana) and
Dahej (Gujarat) provide us the required
operational flexibility to adapt and
serve the ever-changing business
environment.
` 5,808 CRORE
` CONSOLIDATED REVENUES
IN FY 2020-21
` 406 CRORE - CONSOLIDATED HIGHEST-EVER PROFIT


Our Strengths
ONLY
MANUFACTURER
OF NP PRILL 24:24:0 FERTILISER AND TAN SOLIDS IN INDIA
2ND LARGEST LEADING LARGEST

MANUFACTURER MANUFACTURER MANUFACTURER
OF NITRIC ACID IN AND MARKETER OF BENTONITE
SOUTH EAST ASIA OF ISO PROPYL SULPHUR IN INDIA
AND THE LARGEST ALCOHOL (IPA)
IN INDIA
MARKET
LEADER
IN SPECIALITY AND WATER SOLUBLE
FERTILISERS IN INDIA

Key Sectors
Industrial Chemicals
• Pharmaceuticals • Dyes
• Nitro Aromatics • Agrochemicals
• Paints & Coatings • Cosmetics
• Steel • Adhesives
• Inks • Health &
• Explosives Hygiene
Crop Nutrition Business (CNB)

• Agriculture
Technical Ammonium Nitrate (TAN)

• Mining
• Infrastructure
• Explosives
• Pharmaceuticals
VARE
• Home Makers and Interior Solution Seekers
• Architects
• Interior Designers
• Food and Entertainment Patrons
• Art and Culture Enthusiasts

Core Products and Manufacturing
Capacities (MT)
Corporate Office
Production Facilities
Planned Capacities
Value Added Real Estate
Area Sales Offices

06
06 | |Deepak
DeepakFertilisers
FertilisersAnd
AndPetrochemicals
PetrochemicalsCorporation
CorporationLimited
Limited
CROP NUTRITION
BUSINESS (CNB)
Nitro Phosphate Fertiliser, NPK

Fertiliser and Bentonite Sulphur
• Nitro Phosphate Fertiliser -
Installed (Taloja) - 3,25,000
• Nitrogen Phosphorous
Potassium Fertiliser - Installed
(Taloja) - 6,00,000
• Capacity under
Debottlenecking (Taloja) -
13,62,160 •
2,00,000
Bentonite Sulphur - Installed
4,86,900
MTPA (Taloja & Panipat) - 60,720 MTPA
INDUSTRIAL TECHNICAL
CHEMICALS (IC) 9,85,720 AMMONIUM
MTPA NITRATE (TAN)
Nitric Acid - Weak and
Concentrated, Methanol, Iso Propyl Low Density Ammonium Nitrate,
Alcohol & Liquid CO2 High Density Ammonium Nitrate
• Concentrated Nitric Acid and Ammonium Nitrate Melt
- Installed (Taloja & Dahej) – • Technical Ammonium Nitrate -
2,31,000 Installed (Taloja) - 4,44,000
• Diluted Nitric Acid - Installed • Technical Ammonium Nitrate -
(Taloja, Dahej & Srikakulam) - • Installed (Srikakulam) - 42,900
8,88,960 • Planned Additional Capacity
• Iso Propyl Alcohol - Installed (Odisha) - 3,76,000
(Taloja) – 70,200
• Methanol - Installed (Taloja) – AMMONIA
1,00,000
• Liquid CO2 - Installed (Taloja) -
72,000 • Installed (Taloja) - 1,28,700
• Planned Additional Capacity
(Taloja) - 5,00,000
SEGMENTAL
CONTRIBUTION
FY2021 20.7%
54.4% 45.4%
CNB 1.3%
Industrial Chemicals 78.0%
(including TAN)
VARE & Others Segment
Segment
Revenue 0.2% Result*
* Segment Results represents profit / (loss) before tax and finance costs from each segment as per consolidated segment reporting
Business Initiatives
INDUSTRIAL CROP NUTRITION

CHEMICALS: BUSINESS:
• IC business is focusing on the pharma sector • Tied up with Samunnati, a specialised Agri Value
and converting standard grade IPA consumers to Chain enabler, to offer crop based advisory and access
pharma grade to garner higher market share. to affordable loans to farmers under FPOs (Farmer
Producer Organisations).
• IPA LR grade available in smaller pack sizes and
soon will be making various Pharmacopeia grade • Existing NP / NPK capacity is being debottlenecked
available in smaller pack sizes as well. from 9,25,000 MTPA to 11,25,000 MTPA
• Developing purification method of crude • Successfully moved 100% NPK production from plain
diisopropyl ether (DIPE) which is produced as a grade to differentiated NPK (SMARTEK), volume growth
by-product in IPA manufacturing process. of 198% YoY. Smartek sales reached 438,000 MT for
FY20-21.
• Crossed 90% capacity utilisation at Dahej Nitric
Acid complex during the 2nd year of commissioning • Largest manufacturer of Bentonite Sulphur and a
and initiatives have been taken for further market leader in speciality and water-soluble fertilisers
efficiency improvements and capacity utilisation. in India.
• Back-to-back contracts with Methanol customers • New launches include ‘Smartek 14.28.00’, ‘Superfast
for three months sales at a fixed and firm price to Bensulf’, ‘Grape Crop Specific Package’ (3 Grades) and
protect our margins and avoid market fluctuations ‘Tomato Crop Specific package’ (2 Grades).
• Forayed into the hand sanitisers, disinfectants and • Development works for three more specific grades
wipes segment with its IPA-based product brand are at an advanced stage with respective field trails
called Cororid. planned for FY21-22.
• Actively engaged with 65 lakh farmers by the end of

FY2020-21. Around 18,000 online webinars with farmers
and close to 1000 online meetings were conducted
to reach out to over 15,000 channel partners. Around
16000 on field demos for our differentiated product and
Crop combination.
• More than 3.5 lakh+ followers on Facebook, more

than 27K subscribers on YouTube, more than 44,000
downloads of Mahadhan app.

TECHNICAL VALUE ADDED REAL
AMMONIUM NITRATE: ESTATE:
• TAN plant at Gopalpur, Odisha (East Coast) is • Launched a specialty vertical marketplace
expected to commission by Q4 FY24 with a capacity www.creaticityonline.com with nearly half a million
of 376 KTPA visitors within first few months only in Pune
• Initiated debottlenecking to increase the TAN • Organised a the first-of-its-kind home conclave
capacity at Taloja by 25% with minimum investment bringing industry leaders and stakeholders together
during the pandemic times
• TAN business launched AN Care Portal, a major
milestone in the company’s journey towards • Launched an innovative concept “Creaticity On
becoming one-stop solution provider to the Mining Wheels’’ as a reach-out initiative during
and Infrastructure industries for their blasting the pandemic times
requirements
• Over 95% retention of occupants despite tough
• Investment in curing project for enhancing the market conditions
quality of LDAN products to world-class standards
• Unveiled a unique ebook titled #futureofhomes to
• Actively worked with customers for deployment share the collective wisdom of nearly 30 industry
of technology of using waste oil from the Mines captains from the furniture and home category
and reprocessing it for use with Low Density AN to
manufacture ANFO for blasting applications
• Forward integration for finished products required by

the Mining and Infrastructure industries
• Deployment of specially designed Bulk Mixing and

Delivery (BMD) trucks to deliver ANFO and High
Energy Emulsion blend bulk explosives directly into
the blast hole in mines
• Identification of mine and quarry productivity

improvement projects to optimise their drilling,
blasting and downstream costs
• Mechanical completion of Ammonia Plant at Taloja,

Maharashtra, expected by Q4 FY23. To have
500 KTPA capacity and lead to zero dependence
of the company on imports or domestic third-party
ammonia suppliers

CONSOLIDATED
FINANCIAL
HIGHLIGHTS
FY16-17 FY17-18 FY18-19 FY19-20 FY20-21
Revenue from Operations (` in Crores) 4,378 6,062 6,742 4,685 5,808
EBITDA (` in Crores) 473 545 459 464 955
EBITDA margin (%) 10.81 8.99 6.81 9.91 16.45
PAT (` in Crores) 155 164 73 89 406
PAT margin (%) 3.53 2.71 1.09 1.90 7.00
Earnings per share (`) 17.53 18.44 8.01 9.58 41.47
Total Assets (` in Crores) 5,048 6,991 7,118 6,931 7,143
Net Worth (` in Crores) 2,016 2,046 2,098 2,181 2,703
Gross debt to equity (x) 1.00 1.73 1.45 1.34 0.93
Book Value Per Share (`) 228.59 231.99 237.85 244.26 263.21
10
10 || Deepak
Deepak Fertilisers
Fertilisers And
And Petrochemicals
Petrochemicals Corporation
CorporationLimited
Limited
Revenue from Operating EBITDA Profit after Tax Dividend
Operations (` cr) (` cr) (` cr) (`/share)
6,742 4,685* 5,808 459 464 955 73 89 406 3.00 3.00 7.50
FY19 FY20 FY21 FY19 FY20 FY21 FY19 FY20 FY21 FY19 FY20 FY21
Gross debt EBITDA margin PAT margin EPS

to equity (x) (%) (%) (`)
1.45 1.34 0.93 6.81 9.91 16.45 1.09 1.90 7.00 8.01 9.58 41.47
FY19 FY20 FY21 FY19 FY20 FY21 FY19 FY20 FY21 FY19 FY20 FY21
* Cautiously consolidated trading portfolio with focus on high-margin products
Annual
AnnualReport 2020-21 || 11
Report2020-21 11
Message from Chairman &
Managing Director
A HISTORIC S. C. Mehta
Chairman & Managing Director
YEAR
Dear Shareholders,
In an environment of severe - 24% improvement in Top-line efficiencies in Raw Material

uncertainty and volatility all-round - 357% jump in Profits Procurement, Manufacturing
the Globe today, how does one - ` 840 Crore reduction in Debt Efficiencies, Channel and
even make attempts to become Market Optimisation in our
Future Ready? With this solidity for the ongoing products and sectors of
operations, firmly delivered, we operation, wherein we have
At DFPCL, in order to become have then put our thinking hats enjoyed over 40 years of
Future Ready, the path that together to visualise the path proven capabilities. In capacity
we have chosen to embark on forward, for the Future. enhancements in the existing
has been chiseled from deeply
product lines would enable us
listening to the core needs of MANTHAN:
in mitigating risk and attracting
our end consumers and working
good returns.
backwards to provide for sustained To establish the premise of
deliveries. building for the Future, we looked
[B] Build a backbone of best-in-class
back to our strengths that could
Digital Systems and Processes
be leveraged for the purpose. Two
strong and solid pillars emerged: Sustained high performance
deliveries are only possible with
- Our 40 years of strongly
a backbone of strong, best-in-
Define yourself by established experiences right
class systems and processes
your clients, not from Raw Material Sourcing-
built on the digital prowess
Manufacturing-Logistics-
your competitors. Channel-Customers
that is now available. Capturing
granular real-time data, whether
under Smart Manufacturing or
- A beautiful alignment of
~ Ginni Rometty our Mining, Chemicals and
Big Data at the market end, its
insightful analysis for trends,
Fertiliser businesses India’s
and then looping it into a
Growth Story emerging from
virtuous cycle of continuous
country’s basic needs of
improvement, would alone
Power, Cement, Infrastructure,
At the outset, it was obvious that deliver top-end performance in
Pharma, Specialty Chemicals
there is no Future if the Present all the facets of operations, day-
and quality Fruits & Vegetables
itself is shaky. The previous year and in and day-out.
for its growing and affluent
the year that recently closed, found
mid-income population.
us keeping a focus on operations [C] Backward Integration for Value
optimisation across Manufacturing, Creation
The distilled imperatives that
Logistics and the Marketplace.
emerged from our introspective
Despite all the challenges of the past Backward integration would
Manthan to become Future Ready
few years, including the COVID-19 help enhance and capture value
were:
crisis, I am happy to share with all in our total manufacturing
of you that we closed 2020-21 with chain and as a consequence,
[A] Get Your Size Right
strong deliveries on optimisation. also enable us to mitigate
We recorded historic financial With size, we saw the huge price volatility risks in our key
performance: merits of capturing all the raw materials. This would
Annual Report
Annual Report 2020-21
2020-21 || 13
13
also help hugely mitigate the Over the last few years, we have with Dashboard-based Decision
Supply Chain bottlenecks put together our heads, hearts and Support Systems.
and Logistics costs for the spirit to solely focus on delivering
key imported raw materials. these four imperatives to our best. To overcome the COVID-19 impact,
Thus, the foundations of the Here is a peep into the distance we utilised various social media
downstream established over travelled and the journey ahead in platforms and conducted over
the last four decades would be each of our business lines. 18,000 webinars and connected
further strengthened. with over 2.22 lakh farmers to walk
THE CROP NUTRITION BUSINESS them through our unique Product
[D] Beyond products, deliver holistic Value Propositions. Through
Value to the End Consumers As may be recalled, in order to GET our Mahadhan App and other
OUR SIZE RIGHT, we had taken up efforts, we connected with over
The current discount pricing a Capex to triple our NPK fertiliser 10 lakh farmers.
or competition pricing based capacities to help enhance our
on Commodity Product operational muscle power as well With the strategically directed
marketplace remains perennial as attain a respectable market efforts right from product
open to the vagaries of global share in the fast growing fruits and differentiation to farmer-focused
competition. The only way to vegetable segment in Maharashtra, marketing drive, our Fertiliser
combat this in a sustainable Gujarat and Karnataka. As a segment grew by 38%. Validating
manner is to move towards first step towards providing the preference of value over price,
technologically superior and differentiated NPK fertilisers, we our customer base notched up to
value-priced differentiated came up with a technologically over two and a half million farmers
holistic solution delivery superior coating that enhances giving us a market share of close
business models focused on the the nutrient uptake and provides a to 20% in our core markets.
targeted end consumers. This unique boost to crop yields.
would give us long-term brand- Going forward, the current year,
based consumer stickiness and In FY2020-21, we moved 100% will see our leap into more intense
sustained premium pricing. of our NPK capacity to Smartek, Crop Specific Nutrients providing
the differentiated NPK adding a a Holistic Value Proposition
198% year-on-year growth. We also specifically targeted to the
launched “Super-fast Bensulf” our focused farmer segments with a
unique Specialty Fertiliser product, proven promise of not just yield
which too was well received by the boost but also measurable quality
I believe that farmers. enhancements in the size, color,
people make their juiciness, and shelf life of their
Unleashing the Digital Powers,
own luck by great the year saw an introduction of
produce, etc.
preparation and an end-to-end IT enabled Sales The Future Readiness initiatives

good strategy and Operations Planning(S&OP) continue on a fast-track drive.
system connecting Demand
Planning right up to Raw Material THE MINING SECTOR
~ Jack Canfield sourcing along with the required
Here too, in pursuance of our GET
Product mix Manufacturing
OUR SIZE RIGHT initiative, we are
coordination. Our total operations
in the process of taking up an
migrated from SAP to SAP (Hana)
14 || Deepak
14 Deepak Fertilisers
Fertilisers And
And Petrochemicals
CorporationLimited
Limited
addition of a global scale Technical the total Acid business, it has dream. During the year, we also
Ammonium Nitrate (TAN) capacity also taken us to being among the saw completion of all the required
which will propel us in the league 2nd largest Industrial Acid Land Acquisition, Environment
of the top three Global players in manufacturer in the South East Approvals, receipts of over 95% of
TAN segment. Asia and the largest in India. The the required Equipments and the
shift of global specialty chemicals EPC contractor moving to site for
Riding on India’s growth story value chain from China to India a fast-paced construction delivery.
and its related growth in the promises further positive boost to
Coal-Power, Limestone-Cement the Nitric Acid Business growth. Riding on the long-term softening
and Infrastructure sectors, our LNG prices and a saving of over
TAN business enjoys strong End Segment based product and $70 per metric ton just on the
and sustained tailwinds for its services differentiation continues logistics costs of the imported
continued attractive financial to provide premiums to the Ammonia, the captive needed
performance. The recently Nitric Acid offering. Our pursuit Project promises an attractive
announced landmark Mines from Commodity to Specialty returns even on standalone basis
and Minerals (Development and also triggered our forays of our besides mitigating the supply risks
Regulation) Amendment Act will IsoPropyl Alcohol (IPA) into the of critical raw material supplies for
provide a strategic new growth much needed Hand Sanitiser the downstream sectors.
trajectory to our TAN business. market segment in addition to our
differentiated IPA, especially for With our four pronged drive of
Our transformative journey of End the Pharma Sector. getting our size right, creating a
Consumer Value Proposition of strong back-bone of best-in-class
Holistic Solutions has commenced The Year gone by also brought Digital systems, critical backward
by way of high-performance ANFO in effective steps on our critical integration in the value chain and
explosives and Down-The-Hole initiative of Backward Integration to the drive towards holistic value to
(DTH), last mile delivery systems, capture the Value-Chain in terms of a the end consumer, we have set in
in line with the best-in-class and global scale Ammonia Plant. With motion a Future Ready strategy.
technologically superior product the needs to replace over half a
range for the Mining sector. Our million tons of imported Ammonia The years ahead, promise to unfold
focused initiatives to help deliver demand arising out of the raw an exciting fruition.
distinct improvements in the Mine material needs for our Fertiliser,
Productivity in India promises to Mining and Chemicals businesses,
move our product offering to a this Capex promises to bring over
total solutions proposition in the ` 25,000 Crore Import Substitution
coming years ahead. over the next 10 years to become
a shining example of the Prime S. C. Mehta
THE SPECIALITY CHEMICAL Ministers’ Atmanirbhar Bharat Chairman & Managing Director
SECTOR
Our new Acid complex capex

that was taken up a few years
For more information click the following links:
back, to GET OUR SIZE RIGHT https://youtu.be/xCctptKoce8
has not only started its strong https://www.youtube.com/watch?v=5kVI0eLB1ic
additions to the profitability of
Annual
AnnualReport 2020-21 || 15
Report 2020-21 15
Q&A with the
Chief Financial Officer
What have been the key factors
behind the historic performance of the
Company in FY2020-21?
FY2020-21 has been one of the best

years for us in terms of business
performance. Our Operating Revenues
for the year were up 24%, and Net
Profit grew by more than 4.5 times to
` 406 Crore in FY2020-21. EBITDA has
doubled with the margins at 16.45%.
We significantly reduced our Debt
during the year with Net Debt/Equity
reduced from 1.20x to 0.65x, while Net
Debt/EBIDTA reduced from 5.74x to
1.91x (as on March 31st, 2021).
The delivery of profitable growth has

been consistent across both our
Chemicals and Fertiliser businesses
with former contributing 81% to
the overall operating profits share.
The strong financial performance is
reflective of the various measures that
we have taken over the last couple
of years like value proposition yield,
focus on quality, focus on service
levels at the field level, improvement of
operational efficiency, better working
capital management, debottlenecking
Amitabh Bhargava of manufacturing sites, technological
Chief Financial Officer
advancement and above all the move
from a commodity player to specialty.
In FY2020-21, our Cash Generation
Q&A
from Operations stood at healthy
levels of ` 1,248 Crore.
SESSION
We did face challenges particularly in
H1 FY2021 due to COVID-19, resulting
into lower capacity utilisation, although
this situation is gradually improving
with the recovery of the economy.

What is your take on the rising raw
material prices and its possible impact Smartek Sales Volume Growth (KT)
on margins?
438
Industry is experiencing increase
in raw material prices, which may
impact the profitability margins to
221
some extent. However, at DFPCL, we
have experienced that any adverse 123
movement in key raw material prices
13
are generally absorbed by the market
over time. In case of some of our FY18 FY19 FY20 FY21
products, cost increase gets passed
through based on existing cost plus
pricing structure. In case of bulk
fertilisers, Government of India has
supported the fertiliser manufacturers
by increasing subsidy rates of Fertilisers FY21. We follow “Seeing is Believing”
Phosphorous“P” Nutrient by ~204%. concept, and therefore conducted
In line with our strategy, we have ~16,000 on-farm demonstrations of
We are also witnessing counterforces successfully moved our 100% our products during the year. We also
in the marketplace in the form of NPK production from plain grade conducted 18,000 digital webinars
strong demand for our products. Our to differentiated NPK (SMARTEK), explaining to 2.22 Lakh farmers
diversified product portfolio alongside resulting in a volume growth of 198% about our product value proposition.
new products and services improve YoY. Moreover, the results of our In addition around 10 Lakh farmers
our ability to competitively price our efforts are reflected in the strong were contacted directly by our
finished products and sustain margins. repeat customer base that we have marketing team through social media
Headroom in capacity utilisation garnered during the year for SMARTEK. platforms. In a bid to keep the market
provides us an opportunity to reduce Therefore, with higher satisfaction and momentum, we plan to launch two-
fixed costs of production per ton. validation on pricing, value proposition three new products every year, and
yield, focus on quality, and service have a strong and differentiated
DFPCL is in the process of levels at the field level, our business product pipeline in various stages of
transformation from a commodity model is getting validated with an development.
to specialty player. Would you share improved bottom line.
some insights in this regard? Industrial Chemicals:
We have also established unique
We have taken strategic steps across structure of marketing team to focus As far as Acids are concerned, we are in
our business segments. Let me walk on liquidation (sale to farmer) of the process of segmenting the market
you through each of our business material which helped us to achieve depending on the concentration of
segments and the steps taken or in the YoY volume growth of 35% in Bulk Acids, their application and different
the process towards becoming a (Nitro Phosphate and NPK SMARTEK end-user segments.
specialty player. together) and 26% in Specialty in

Likewise, in IPA, we have tried bringing and product development, value-added lockdown and subsequent restrictions
in differentiation to pharma grade IPA and crop specific products are being imposed since the outbreak of
and the IPA for other end usage. As a lined up to provide a better product COVID-19 in March 2020, we managed
part of commodity to specialty journey experience to farmers. to stay resilient and outperform in
and forward integration to IPA, we difficult circumstances.
have forayed into hand sanitiser and In the Q1 and part of Q2 FY2020-21
disinfectant category in April 2020 to posed operational challenges for Investor Relations is undoubtedly a
deal with COVID-19 situation. We have our customers, resulting in lower function of finance, communication,
undertaken a differentiated product volumes in TAN and Acid. We also marketing and regulatory compliance
strategy, wherein we are developing faced maintenance challenges due to designed to regularly update
“IPA based” strong product range COVID-19 situation, resulting in lower stakeholders about the business,
with 16 SKUs in hand sanitisers, capacity utilisation. This situation is now ongoing developments and overall
disinfectants and wipes. We have 5 improving with recovery of the economy, outlook.
new SKUs in the pipeline to cater to which is another driver for growth.
various segments, such as B2C, B2B During the year, we undertook various
and B2G. The shift of global specialty chemical initiatives to raise the equity profile
intermediates value chains from China of DFPCL. We continued to remain
Technical Ammonium Nitrate (TAN): to India is boosting demand for Nitric very proactive in reaching out to
Acid and prices in India. Likewise, the investors/shareholders and
Our strategic downstream tie-ups to the increase in coal and limestone established an effective two-way
provide value-added products, deeper mining and infrastructure will boost communication between the Company
associations with the growing private TAN demand. We are working on new and the capital market participants.
coal mining segment and down-the- TAN products and services to improve An increased focus was given towards
hole (DTH) last-mile delivery systems customer experience. correct and timely messaging to the
have commenced in the right earnest. investor community.
The introduction of cost-effective and On the IPA manufacturing segment
high-performance ANFO explosives as side, the demand is still strong although Through our large database of opinion-
a substitute for conventional emulsion prices may not remain at the same makers, important business updates
explosives is expected to further level as last year. IPA manufacturing were proactively communicated
support our TAN business. only contributed approximately 15-16% through various modes of
to the gross margins at consolidated communication. We have embraced
Given that you have had a fantastic levels in FY21. digital in our processes and are making
FY21, how do you see the future use of various digital platforms to
panning out in terms of growth? Is this Can you provide some insights with communicate with our stakeholders
performance sustainable? respect to Investor Relations strategy effectively to provide timely updates
being undertaken from a capital to various stakeholders. Moreover,
In the last 3-4 years, we have market perspective, especially during we also proactively provided requisite
undertaken NPK expansion and Dahej COVID-19 pandemic? clarifications to counter ‘Unfounded
Acid Complex has started delivering Rumours’ and ‘Positive Newsflows’
operationally and financially. We As we continue to navigate through to stock exchanges to protect the
have witnessed strong growth in the challenges faced post the outbreak shareholder’s interest.
NPK SMARTEK. This is indeed a of COVID-19, I would like to share my
strong evidence of yield and quality perspective on how we proactively
improvement experienced by farmers implemented the Investor Relations
who have used our product. This (IR) program to ensure all stakeholders
should help volume and margin were updated on the latest business
growth in the CNB segment. Moreover, and strategic developments of DFPCL.
the headroom in capacity utilisation
is capable of catering to this volume Despite the uncertainty faced in
growth. Through, our in-house R&D the business environment post the
18
18 || Deepak
Deepak Fertilisers
FertilisersAnd
AndPetrochemicals
CorporationLimited
Limited
AWARDS & RECOGNITION
Mrs. Mehta receives Mahatma Award for ‘Social Good’ - 2020

Mrs. Parul Mehta, Managing Trustee, Ishanya
Foundation, received the Mahatma Award for
‘Social Good’ in 2020 for ‘Poverty Eradication’.
The award has been given in appreciation of
her excellent work, which is making an
enormous social impact and has inspired
many.
This Mahatma award is conferred upon only

those who demonstrate excellence, the highest
standards of ethical conduct, integrity as well
as civic and social responsibility.
Mrs. Mehta stands out as one of the most impactful leaders and
change-makers. She has been an exemplary leader who has showcased
and upheld a tradition of responsible behaviour in these difficult times even
while the world is reeling under the grip of COVID-19 pandemic.
The Mahatma Award is supported by the Aditya Birla Group to honour the winners every year and the award ceremony is hosted annually
by Liveweek Group, a social impact company in different parts of the world.
‘Indian Achievers Award 2020’ for ‘Chemicals & Petrochemicals

Business Leadership won by Supply Chain Innovation Award’ in
Creaticity in recognition of notable the Logistics Category, organised
achievement of championing home by NASSCOM and Alden,
furniture retail during the pandemic co-sponsored by the Singapore
time through the Home & Institute of Material Management
Home+Conclave. & Council for Supply Chain
Management.
‘Overall Excellence in Logistics ‘Certificate of Appreciation’

and Supply Chain’ conducted by received from National Safety
the Confederation of Indian Council of India (NSCI) during
Industry (CII). ‘Safety Awards 2020 Competition’
for Manufacturing Sector Group B
(Manufacturing Chemicals &
Chemicals Products, Manufacture
of Pharmaceuticals, Medicinal
Chemical and Botanical products)
by our JNPT plot.

CORPORATE SOCIAL
RESPONSIBILITY
DFPCL has always been and remains deeply committed to social development as
part of its ethos. Over the years, the Company has been engaged relentlessly in
societal uplift (rural and urban) through Ishanya Foundation (IsFon) in Pune and
Taloja in Maharashtra and Deepak Foundation in Vadodara, Gujarat. It has been
contributing significantly in India’s economic growth and development by
promoting inclusive growth through its various development initiatives and
community outreach efforts.
The Company’s four-decade community intervention has been directed at the
bottom of the economic and social pyramid, especially in rural and urban
Maharashtra and Gujarat. The interventions comprise livelihood & women
empowerment, farmer upliftment, health, education, art & culture, community
development and social welfare.
21,371 17,861 3,510

Total families supported Rural families touched Urban families touched
Ishanya Foundation (IsFon) Sector-wise family coverage 2020-21
IsFon has been driven by the conviction that ‘If you give a Livelihood Education
man a fish, you feed him for a day, but if you teach a man to
Health CDSW
fish and you feed him for a lifetime.’ IsFon has been creating
a self-sufficient society by working pro-actively with a 1.17%
0.47%
single-minded devotion towards promoting inclusiveness
and creating opportunities for employability to individuals 11%
through the development of employable skills that generate
sustainable livelihoods, enhance financial and emotional
independence. The Foundation’s urban initiatives comprise
Vocational Skills Development Project (VSDP), Livelihood
Enhancement through Entrepreneurship Development
(LEED), Income Generation Program (IGP), Muskaan, the
e-Yellow Ribbon NGO Fair and Entrepreneurship
Development. IsFon’s rural initiatives comprise Wadi Project,
87.36%
Dairy Development Project, Vocational Skill Development,
Community Development & Social Welfare (CDSW),
Aarogyam, Gyanam and activities carried out during the
pandemic.

Urban Initiatives
Vocational Skills Development Project (VSDP)
IsFon conducts a variety of job-oriented vocational and soft • Basic Plumbing Course with Dnyanada Institute of Piping
skill training courses. Leveraging formal and informal Flow Technology: 21 beneficiaries
learning VSDP enhances social equality, inclusion and • Soft Skills, Mock Interview and Typing facilitated by
sustainable development. Furthermore, IsFon also provides IsFon: 17 beneficiaries
placement assistance leading to sustainable livelihoods. • Placed: 49
IsFon also conducts soft skill training and conversational
English sessions to enhance employability. Each student is
provided one-on-one mentorship by volunteers.
VSDP courses, 2020-21

• Professional Beautician Course and Art of Mehendi with
Spoken English: 20 beneficiaries
• Certificate Course in Information Technology (CCIT): 31
beneficiaries
• Post Basic B.Sc. Nursing - in collaboration with
Symbiosis College of Nursing: 09 beneficiaries
• B.Sc. Nursing with St. Andrews College of Nursing: 01
Spoken English class being conducted for aspirants at
beneficiary
Ishanya Foundation
• Diploma in Laboratory Technician Course with Suburban
College of Nursing: 01 beneficiary
Success story
Mr.Abhijit Shinde, BE Mechanical Earning ₹ 32,575/-per month
Abhijit Shinde aged 23 years stays at Yerwada. His mother is associated with IsFon under the
Income Generation Program. She is the only earning member in her family. Abhijit did his
Diploma after passing 10th Std with flying colours. He got very good marks in Diploma and was
confused about whether he should take up a job to support his mother since he could not
afford to take up B.E.
IsFon suggested to him to apply for B.E and he got admission at Trinity College of Engineering
due to his excellent grades in Diploma through merit. IsFon sponsored his fees and now after
completing BE (Mechanical) he is employed at Eaton India Innovation Centre with a salary of
₹ 32,575/-.
Livelihood Enhancement through

Entrepreneurship Development (LEED)
LEED provides entrepreneurship opportunities and facilitates livelihoods through secondary income generation for financially
challenged women. This programme consists of the following initiatives:
Muskaan:
• Based on the principle of ‘Reuse & Recycle’ initiative by collecting pre-owned garments and accesso
• It empowers financially challenged women, fondly called ries, which are then checked for quality and usability
‘Muskaan Parees’, by providing them additional income • When cleared, they are resold by Muskaan Parees at
• Parees shortlisted are between 30-40 years of age who nominal prices
have not had a chance of availing education • Purchaser beneficiaries covered were 1,147 nos. and
• Ladies from various walks of life from Pune and Mumbai Muskaan sale was ₹ 63,760/-
act as ‘Brand Ambassadors’ who graciously support the

Income Generation Programme (IGP)-
Handcrafted for a Cause
The programme graduates’ women (trained in tailoring and
cutting) from small-scale ‘darjees’ into entrepreneurs adept
in the manufacture of handmade gifting products. These
products are then sold through Bharatrath Store, Maitri
Shop, Daily Fresh and also on an online platform
creaticityonline.com.
Income generated by the sale of products is ₹ 4,51,931/-
and income generated by ladies is ₹ 1,96,156/-.
Entrepreneurship Development (Urban & Rural)

The programme seeks to enhance skills and knowledge to
empower entrepreneurs to run small businesses through
initiatives like sponsorship of high-end sewing machines,
parlour chairs, two-in-one steamers, weighing machines,
packing machines, handcarts to small vegetable and fruit
vendors. Under this initiative 30 urban and 34 rural
beneficiaries were covered.
Success story
Mrs. Shubhangi Pujari, Professional Beautician Earning ₹ 20,000/-per month
Mrs. Shubhangi Pujari has done the ‘Professional Beautician

Practice & Healthcare and Art of Mehendi (Basic) with spoken
English course’ from IsFon. Her husband’s income was ₹ 12,000/-
per month, barely sufficient for her family of four. On completion
of course and with support of IsFon she has started her own
parlour in a rented place and now earns ₹ 20,000/- per month.
e-Yellow Ribbon NGO & Artisan Fair (e-YRNF)

This pre-Diwali event showcases folklore, cultural traditions and skilled craftsmanship of NGOs, artisans and self-help groups
covering farmers and farm produce organisations. This year due to the pandemic, they were finding it difficult to sell their produce.
IsFon helped them with an online platform to list, showcase and market their products online. The platform empowers
beneficiaries with a wide networking platform to learn, share, generate new ideas and enhance marketing awareness.
Paticipants benefited were 23 and the total sale was ₹ 85,881/-.

Rural initiatives
Wadi Project
Under this initiative the beneficiaries, mostly farming families are
given access to integrated farming tools and techniques for
intensive land development. Aspirants for this project are
selected with due diligence based on set criteria. 419 farmers
were covered under the initiative.
Support given on 0.5 acre land:

• Establish mango orchard - Kesar variety in
form of Grafts
• Fertiliser
• Pesticides
• Farm tools
• Vegetable seeds
• Water pumps & pipes Total no. of mangoes planted 12,330
• IPM & INM techniques Acres 206

• Development of eroded wasteland through soil and water
conservation Families covered 419
• Cultivation of Vegetables
Villages & hamlets covered 18
• Development of Model/Trail Plots
Total income from vegetable cultivation ₹ 102 lakh
• Capacity Building
Dairy Development Project

This rural initiative addresses small/marginalised/landless farmers and labourers and aims to enhance dairy farming
productivity. 283 beneficiaries were covered under the initiative.
• Eligible women of farmer’s households are supported

with cows
• Provides an opportunity for the farmers to earn about
₹ 8,000 to ₹ 12,000 per month through the sale of milk
and cow dung
• Assistance in the development of fodder plots
• Doorstep services of artificial insemination followed by
pregnancy diagnosis of cows and buffaloes
Total milk production (litre) 4,35,010
Home consumption 94,525+
Calf consumption 61,760
Sold milk (litre) 2,78,725
Income (₹) ₹ 1,04,31,150

Success story
Name of Aspirant: Mrs. Jyotsna Vasudev Lad & Mr. Vasudev Vitthal Lad
Village: Cheriwali, Taluka: Panvel, District: Raigad
Family Profile: IsFon has supported them with 2 cows. Dairy is the only income
source for the family. They can support their children to complete their education
only due to sustainable income from the dairy enterprise. Their elder son, Omkar
has completed his BA and two daughters, Pradnya and Pranali are pursuing
graduation. Vasudev is a marginal farmer. Earlier, their family was dependent on
income from agriculture, which was scanty and therefore, they were facing
difficulties to fulfill their daily needs and support their children's education. After
they started their dairy enterprise with support from Ishanya Foundation, they
earn sufficient and have a sustained income.
Support Given: 2 cross breed cows, Medicine Kit, Training Exposure
Asset Created:
2 Female Calves ₹ 55,000 Total Income from Sale of Milk Milk sold - 9,580 litre
@ ₹ 40/- per litre
Total milk produced 12,760 litre
Home & Calf Consumption 3,180 litre Annual Gross Income ₹ 3.83 Lac
Fodder Development & Vermicompost

IsFon supported for the cultivation of Azolla, Maize and Napier grass. It took the initiative to develop Vermicompost beds in
villages around Taloja.
Vermicompost beds 10 Napier Grass 7
Preparation of Silage Fodder 3 Azolla 12
Vocational Skill Development

IsFon enhances rural skills through tailoring and optometry courses. This creates a positive impact on aspirants by providing
them enhanced financial stability and inclusivity within the community. 34 beneficiaries were covered under this program.
Success story
Mrs. Devshree Virpal Ridhlan
Support of Course: Bachelor of Optometry

Sponsored Amount: ₹ 1,64,000/-
Devshree is living in a slum area of Vashi. Earlier, her father and mother were working in
society as security and housekeeping staff respectively. The family could not afford the fees
of optometry for Devshree. She applied for a sponsorship and after the screening, we
supported her with 80% fees of college for three years. After her father’s death, all the
responsibility fell on her elder brother and mother. After completion of the course, she worked
at Laxmi Eye Hospital and is now working with Lenskart Pvt. Ltd., in Thane. She is earning ₹
28,000/- per month. Devshree says, "I am very thankful to the Ishanya Foundation for helping
me. Now, I am financially independent and also supporting my family."

Community Development and Social Welfare
Under this initiative by IsFon, community members come together to resolve
common problems by taking collective action. The aim of this initiative is to
bring about community development through collective actions of the
members of the community itself so as to overcome economic, social and
environmental difficulties without disturbing nature.
Key initiatives for the year 2020-21 included the installation of water
lifting/conveyance equipments and building of 25,000 litres capacity elevated
storage tank with 4 water distribution points that benefitted 250 families in
Kanpoli Village (Taloja).
Drinking water facility being provided by

IsFon at Kanpoli, Taloja
Other Rural and Urban Initiatives
AAROGYAM
Aarogyam is a holistic healthcare initiative by IsFon that caters to proactive
diagnosis and care of the urban and rural underprivileged.
• It aims to provide comprehensive healthcare services to individuals,

families and communities by assessing and diagnosing their healthcare
needs
• It provides door-to-door service with Mobile Clinic
• It provides quality, preventive and curative healthcare services
• Free Medicines and Health Awareness Programmes are conducted in
Health Camps
• Eye Check-up Camps are conducted and followed by free cataract
operations and spectacle distribution
• Provide pathological investigation at a very nominal contribution
• During Covid 19 pandemic Hand Sanitisers, Masks, PPE Kits, Ambulances
were donated
Pathology Collection Centre -
177 patients benefitted
Mobile Clinic - 8,873 patients benefitted

ACTIVITIES CARRIED OUT DURING PANDEMIC
• Donation of four ambulances to Brihanmumbai Municipal
Corporation
• Donation of 2,500 PPE kits to Haffkine Institute, Mumbai
• Distribution of masks in marginalised community of Pune &
Taloja - 5,070 beneficiaries
• Distributed 1,000 litres of IPA Hand Sanitisers
Donation of four ambulances to Brihanmumbai

Municipal Corporation during Pandemic
Donation of 2,500 PPE Kits to Distribution of masks in marginalised community

Haffkine Institute, Mumbai of Pune & Taloja - 5,070 beneficiaries
GYANAM
The two-pronged goal comprises of:
• To create a better school learning environment through various interventions

• To improve the overall quality of education
Under this initiative, this year IsFon supported Rahiyad Secondary School with 50 benches.
Donated 50 benches at Rahiyad Secondary School

Rahiyad Secondary School
in Dahej, Gujarat

NOTICE
DEEPAK FERTILISERS AND PETROCHEMICALS CORPORATION LIMITED
Registered Office: Sai Hira, Survey No. 93, Mundhwa, Pune - 411 036
CIN: L24121MH1979PLC021360 | Website: www.dfpcl.com | Tel.: +91 20 6645 8000 | email : investor.grievance@dfpcl.com
NOTICE is hereby given that the Forty-First Annual General to consider and if thought fit, to pass, the following
Meeting of DEEPAK FERTILISERS AND PETROCHEMICALS resolution as an ORDINARY RESOLUTION:
CORPORATION LIMITED will be held on Thursday, the 26th
“RESOLVED THAT in accordance with the provisions
August, 2021 at 11.00 a.m. through Video Conferencing
of Section 152 and other applicable provisions of the
(“VC”) / Other Audio Visual Means (“OAVM”) to transact the
Companies Act, 2013 and Rules made thereunder, Smt.
following business:
Parul Mehta (DIN: 00196410), who retires by rotation at
 ORDINARY BUSINESS this meeting be and is hereby appointed as a Director of
the Company.”
1. To consider and adopt: (a) the audited financial
statements of the Company for the financial year 4. To consider and if thought fit, to pass the following
ended 31st March, 2021 and the reports of the Board resolution as an ORDINARY RESOLUTION:
of Directors and Auditors thereon; and (b) the audited
“RESOLVED THAT pursuant to the provisions of Section
consolidated financial statements of the Company
139, 142 and other applicable provisions, if any, of the
for the financial year ended 31st March, 2021 and the
Companies Act, 2013 (the Act), and the Companies
report of Auditors thereon and in this regard, if thought
(Audit and Auditors) Rules, 2014 {including any statutory
fit, to pass the following resolutions as ORDINARY
modification(s) or re-enactment thereof, for the time
RESOLUTIONS:
being in force} and pursuant to recommendation of
a. “RESOLVED THAT the audited financial statements the Audit Committee and the Board of Directors, P G
of the Company for the financial year ended 31st BHAGWAT LLP (PGB), Chartered Accountants (Firm
March, 2021 and the reports of the Board of Registration Number: 101118W/ W100682) be and are
Directors and Auditors thereon, as circulated to hereby appointed as Statutory Auditors of the Company
the members, be and are hereby considered and who shall hold office for the first term for a period of
adopted.” 5 years, from the conclusion of this Annual General
Meeting until the conclusion of the 46th Annual General
b. “RESOLVED THAT the audited consolidated
Meeting of the Company, on such remuneration as may
financial statements of the Company for the
be decided by the Board of Directors in consultation with
financial year ended 31st March, 2021 and the
the Auditors plus applicable taxes and reimbursement
report of Auditors thereon, as circulated to the
of travelling and out of pocket expenses incurred by
members, be and are hereby considered and
them for the purpose of audit.
adopted.”
RESOLVED FURTHER THAT the Board of Directors of
2. To declare a dividend on equity shares for the financial
the Company be and is hereby authorised to do all such
year ended 31st March, 2021 and pass the following
acts, deeds, matters and things as may be considered
resolution as an ORDINARY RESOLUTION:
necessary, desirable or expedient to give effect to this
“RESOLVED THAT a dividend at the rate of ` 7.50/- resolution.”
(Rupees Seven and paise fifty only) per equity share of
 SPECIAL BUSINESS
` 10/- (Rupees Ten) each fully paid-up of the Company be
and is hereby declared for the Financial year ended 31st 5. To consider and if thought fit, to pass the following
March, 2021 and the same be paid as recommended resolution as an ORDINARY RESOLUTION:
by the Board of Directors of the Company, out of the
“RESOLVED THAT pursuant to the provisions of
profits of the Company for the financial year ended 31st
Section 148(3) of the Companies Act, 2013 and
March, 2021.”
Companies (Audit and Auditors) Rules, 2014 and other
3. To appoint Smt. Parul Mehta (DIN: 00196410), who applicable provisions, if any {including any statutory
retires by rotation as a Director and in this regard, modification(s) or re-enactment thereof for the time

being in force}, and based on the recommendation RESOLVED FURTHER THAT any one of the Director and
of the Audit Committee and approval of the Board of Company Secretary of the Company be and are hereby
Directors of the Company, the remuneration payable severally authorised to do all necessary acts and deeds
to M/s Harshad S. Deshpande & Associates, Cost to give effect to the resolution.”
Accountants (Registration No. 00378) appointed as
7. To consider and if thought fit, to pass the following
the Cost Auditors of the Company to conduct the Cost
resolution as an ORDINARY RESOLUTION:
Audit of all applicable products for the Financial Year
ending 31st March, 2022, amounting to ` 2,25,000/- “RESOLVED THAT pursuant to the provisions of
(Rupees Two Lacs Twenty Five Thousand only) plus Section 188(1)(f) of the Companies Act, 2013 read with
taxes as applicable and reimbursement of travel and Companies (Meetings of Board and its Powers) Rules,
out-of- pocket expenses in connection with the said 2014 and any other applicable provisions {including any
audit, be and is hereby ratified and confirmed. statutory modification(s) or re-enactment thereof for
the time being in force} and pursuant to the approval
RESOLVED FURTHER THAT the Board of Directors of
the Audit Committee and the Board of Directors of the
the Company be and is hereby authorised to do all acts
Company, consent of the members of the Company
and take all such steps as may be necessary, proper or
be and is hereby accorded for the transfer of services
expedient to give effect to this resolution.”
of Ms. Rajvee Mehta to Smartchem Technologies Limited
6. To consider and if thought fit, to pass the following from the Company and continuance of her engagement
resolution as an ORDINARY RESOLUTION: as AVP-TAN Business Strategy in Smartchem
Technologies Limited (STL), wholly owned subsidiary
“RESOLVED THAT pursuant to the provisions of of the Company w.e.f 1st June, 2021, upon the following
Sections 149, 152 read with Schedule IV and any other terms and conditions including remuneration offered
applicable provisions of the Companies Act, 2013 by Smartchem Technologies Limited:
and the Companies (Appointment and Qualification
of Directors), Rules, 2014 {including any statutory a) ` 42 lacs per annum as by way of fixed
modification(s) or re-enactment thereof for the time remuneration; and
being in force} and Regulation 25 of the Securities and b) Target Variable pay of Rs 10,12,500/- as
Exchange Board of India [SEBI] (Listing Obligations applicable to employees at AVP level. The actual
and Disclosure Requirements) Regulations, 2015, variable payout is capped at 160% of the target
Smt. Varsha Purandare (DIN: 05288076), Independent variable pay and is linked to STL, sector, function,
Director of the Company who has submitted a individual performance;
declaration that she meets the criteria of independence
under Section 149(6) of the Companies Act, 2013 and with liberty to the management of Smartchem
Technologies Limited to allocate the amounts towards
Regulation 16 of the SEBI (Listing Obligations and
the salary components in the fixed salary subject to
Disclosure Requirements) Regulations, 2015, and in
there being no change in the overall fixed remuneration
respect of whom the Company has received a notice
of Ms. Rajvee Mehta and to consider further increase
in writing under Section 160 of the Companies Act,
in remuneration (fixed and target variable pay) by the
2013 from a Member proposing her candidature for
management as per policy of Smartchem Technologies
the office of Director, be and is hereby appointed as
Limited and promotion as deemed appropriate by
an Independent Director of the Company not liable to Smartchem Technologies Limited from next year
retire by rotation and to hold office for first term of 3 onwards as per the policy of Smartchem Technologies
consecutive years commencing from 31st January, Limited.
2021 and ending on 30th January, 2024.
RESOLVED FURTHER THAT the Board be and is hereby
RESOLVED FURTHER THAT pursuant to the provisions authorised to constitute or form a Committee or delegate
of Sections 149, 197 and other applicable provisions all or any of its powers to any Director(s) or Committee
of the Companies Act, 2013 and the Rules made of Directors / Company Secretary /Chief Financial
thereunder, Smt. Purandare be paid such fees and Officer or other persons authorised by the Board to
remuneration / profit- related commission as the Board settle all matters arising out of and incidental thereto,
may approve from time to time and subject to such and generally to do all acts, deeds, matters and things
limits as may be prescribed. that may be necessary, proper, expedient or incidental

for the purpose of giving effect to this resolution and may be prescribed or imposed by any of them while granting
accept any alteration(s) or modification(s) as they may any such approvals, permissions, consents and sanctions
deem fit and proper and give such direction(s) as may and which may be agreed to by the Board of Directors of the
be necessary to settle any question or difficulty.” Company (including Project and Funding Committee or any
Committee hereinafter to be constituted by Board to exercise
8. To consider and if thought fit, to pass the following
its power including the powers conferred by this resolution)
resolution as a SPECIAL RESOLUTION:
{hereinafter referred to as the “Board”}, the consent, authority
“RESOLVED THAT pursuant to the provisions of Sections 23, and approval of the members of the Company be and is
42, 62, 71 and other related and applicable provisions, if any, hereby accorded to the Board, in its absolute discretion, to
of the Companies Act, 2013, and the rules made thereunder create, offer, issue and allot from time to time, (including with
(including any amendments, statutory modification(s) or re- provisions for reservation on firm and/or competitive basis,
enactment thereof, for the time being in force and as may be of such part of issue and for such categories of persons
enacted from time to time), {hereinafter referred to as the “Act”}, including but not limited to the employees of the Company
the Companies (Share Capital and Debentures) Rules, 2014 as may be permitted), such number of equity shares of the
and other applicable rules notified by the Central Government Company of face value ₹ 10/- each (“Equity Shares”), Global
under the Act, the Foreign Exchange Management Act, 1999 Depository Receipts (GDRs), American Depository Receipts
(the “FEMA”), and the rules and regulations made thereunder, (ADRs), Foreign Currency Convertible Bonds (FCCBs), fully
as amended from time to time including the Foreign convertible debentures/partly convertible debentures and/ or
Exchange Management (Non-debt Instruments) Rules, 2019, any other financial instruments convertible into Equity Shares
as amended, the Issue of Foreign Currency Convertible (including warrants, or otherwise, in registered or bearer
Bonds and Ordinary Shares (through Depository Receipt form) and/or any security(ies) convertible into Equity Shares
Mechanism) Scheme, 1993, as amended, the Depository and/ or securities linked to Equity Shares and/or securities
Receipts Scheme, 2014, as amended, the Securities and with or without detachable warrants with right exercisable
Exchange Board of India (Issue and Listing of Debt Securities) by the warrant holders to convert or subscribe to Equity
Regulations, 2008, as amended {hereinafter referred to as Shares (all of which are hereinafter collectively referred to
the Debt Listing Regulations}, the current Consolidated FDI as “Securities”) or any combination of Securities, in one or
Policy issued by the Department of Industry and Internal more tranches, whether Rupee denominated or denominated
Trade, Ministry of Commerce and Industry, Government in foreign currency, in the course of one or more international
of India and in accordance with the rules, regulations, and/or domestic offering(s) in one or more foreign market(s)
guidelines, notifications, circulars and clarifications issued and/ or domestic market(s), by way of one or more public
thereon from time to time by Government of India (GoI), the and/ or private offerings including but not limited to by way of
Reserve Bank of India (RBI), and the Securities and Exchange a qualified institutions placement (“QIP”) or any combination
Board of India (SEBI), the Stock Exchanges, Ministry of thereof, through issue of prospectus and /or placement
Corporate Affairs (MCA), the Registrar of Companies (ROC), document and/ or other permissible/requisite offer document
Maharashtra and/or any other competent authorities, to Qualified Institutional Buyers (“QIBs”) as defined under the
whether in India or abroad, and including the Securities and SEBI (ICDR) Regulations in accordance with and within the
Exchange Board of India (Issue of Capital and Disclosure meaning of Chapter VI of the SEBI (ICDR) Regulations, whether
Requirements) Regulations, 2018, as amended {hereinafter they be holders of Equity Shares of the Company or not (the
referred to as the “SEBI (ICDR) Regulations”}, Securities and “Investors”) as may be decided by the Board in its discretion
Exchange Board of India (Listing Obligations and Disclosure and permitted under applicable laws and regulations, of an
Requirements) Regulations, 2015, the enabling provisions of aggregate amount not exceeding ₹ 600,00,00,000/- (Rupees
the Memorandum of Association and Articles of Association Six Hundred Crores Only) or equivalent thereof, inclusive of
of the Company, the uniform listing agreements entered any premium or discount as may be fixed on such Securities
into by the Company with the stock exchanges on which the by offering the Securities at such time or times, at such price
Company’s shares are listed (the Listing Agreements) and or prices, at a discount or premium to market price or prices
subject to necessary approvals, permissions, consents and permitted under applicable laws in such manner and on such
sanctions as may be necessary from SEBI, Stock Exchanges, terms and conditions including security, rate of interest etc.
ROC, MCA, RBI, GoI or of concerned statutory and any other and any other matters incidental thereto as may be deemed
authorities as may be required in this regard and further appropriate by the Board, at its absolute discretion, including
subject to such terms and conditions or modifications as the discretion to determine the categories of Investors to

whom the offer, issue and allotment shall be made to the c) Equity Shares to be issued on conversion of Securities
exclusion of other categories of Investors at the time of convertible into Equity Shares shall be appropriately
such offer, issue and allotment considering the prevailing adjusted for corporate actions such as bonus issue,
market conditions and other relevant factors and wherever rights issue, stock split, consolidation of stock, merger,
necessary in consultation with lead manager(s) and / or demerger, transfer of undertaking, sale of division
underwriter(s) and / or placement agents and / or any other or any such capital or corporate re-organisation or
advisor(s) appointed for the offering of the Securities, in Restructuring; and
foreign currency and/ or equivalent Indian Rupees as may be
d) the Equity Shares shall be allotted as fully paid-up.
determined by the Board, in any convertible foreign currency,
as the Board at its absolute discretion may deem fit and RESOLVED FURTHER THAT if any issue of Securities is
appropriate (the Issue). made by way of a QIP in terms of Chapter VI of the SEBI
(ICDR) Regulations, the allotment of such Securities, or any
RESOLVED FURTHER THAT in accordance with Chapter VI of
combination of Securities as may be decided by the Board
the SEBI (ICDR) Regulations:
shall be completed within a period of 365 days from the
a) the Equity Shares shall not be eligible to be sold for a date of this special resolution, or such other time as may be
period of twelve months from the date of allotment, allowed under the SEBI (ICDR) Regulations from time to time.
except on a recognised stock exchange, or except as
RESOLVED FURTHER THAT any issue of Securities made
may be permitted from time to time under the SEBI
by way of a QIP in terms of Chapter VI of the SEBI (ICDR)
(ICDR) Regulations and other applicable laws;
Regulations shall be at such price which is not less than the
b) the Board may at its absolute discretion and in price determined in accordance with the pricing formula
accordance with applicable law, also offer a discount provided under Chapter VI of the SEBI (ICDR) Regulations
of not more than 5% of the floor price or such other (the “QIP Floor Price”), with the authority to the Board to offer
discount as may be permitted under applicable law a discount of not more than such percentage as permitted
on the price calculated in accordance with the pricing under applicable law on the QIP Floor Price.
formula provided under the SEBI (ICDR) Regulations;
RESOLVED FURTHER THAT in the event Equity Shares are
c) no subsequent QIP shall be made until the expiry of two proposed to be issued to QIBs by way of a QIP in terms of
weeks from the date of the prior QIP approved by way of Chapter VI of the SEBI (ICDR) Regulations or issuance of
this Special Resolution and in accordance with the SEBI GDRs/FCCBs as mentioned hereinabove, the relevant date
(ICDR) Regulations; and if any, shall mean, in case of allotment of Equity Shares, the
date of the meeting in which the Board or the Committee
d) In case Securities other than Equity Shares are issued
decides to open the proposed issue and in case of allotment
pursuant to a QIP as aforesaid, such securities shall be
of convertible securities, either the date of the meeting
converted into Equity Shares within sixty months from
in which the Board or the Committee decides to open the
the date of allotment.
issue of such convertible securities or the date on which the
RESOLVED FURTHER THAT in pursuance of the aforesaid holders of such convertible securities become entitled to
resolution: apply for the Equity Shares, as provided under applicable law,
or such other time as may be prescribed by applicable law
a) the Securities to be so created, offered, issued and from time to time.
allotted shall be subject to the provisions of the
Memorandum and Articles of Association of the RESOLVED FURTHER THAT the issue to the holders of the
Company; Securities, which are convertible into or exchangeable with
Equity Shares at a later date shall be, inter alia, subject to the
b) the Equity Shares, including any Equity Shares issued following terms and conditions:
upon conversion of any convertible Securities, that may
be issued by the Company shall rank pari passu with the a) in the event of the Company making a bonus issue
existing Equity Shares of the Company in all respects by way of capitalisation of its profits or reserves prior
including dividend; to the allotment of the Equity Shares, the number of
Equity Shares to be allotted shall stand augmented in

the same proportion in which the equity share capital RESOLVED FURTHER THAT for the purpose of giving effect
increases as a consequence of such bonus issue and to any offer, issue or allotment of Securities as described
the premium, if any, shall stand reduced pro tanto; above, the Board, where required in consultation with the lead
manager(s)/ placement agent(s) and/or other advisors, be
b) in the event of the Company making a rights offer by
and is hereby authorised on behalf of the Company, to do all
issue of Equity Shares prior to the allotment of the
such acts, deeds, matters and things as it may, in its absolute
Equity Shares, the entitlement to the Equity Shares will
discretion, deem necessary or desirable for such purpose,
stand increased in the same proportion as that of the
including but not limited to the selection of QIBs to whom the
rights offer and such additional Equity Shares shall be
Securities are to be offered, issued and allotted, and matters
offered to the holders of the Securities at the same
related thereto, and with power on behalf of the Company
price at which the same are offered to the existing
to settle all questions, difficulties or doubts that may arise
shareholders;
in regard to such issue(s) or allotment(s) as it may, in its
c) in the event of merger, amalgamation, takeover or absolute discretion, deem fit.
any other re-organization or restructuring or any such
RESOLVED FURTHER THAT subject to the applicable laws, for
corporate action, the number of Equity Shares and the
the purpose of giving effect to the issuance of Securities, the
price as aforesaid shall be suitably adjusted; and
Board or a committee thereof be and is hereby authorized on
d) in the event of consolidation and/or division of behalf of the Company to do all such acts, deeds and things
outstanding Equity Shares into smaller number thereof in its absolute discretion as it deems necessary or
of equity shares (including by way of stock split) desirable in connection with the issue of the Securities,
or reclassification of the Securities into other including, without limitation to the following:
securities and/ or involvement in such other event
(a) appoint, in its absolute discretion, manager(s) (including
or circumstances which in the opinion of concerned
lead manager(s)/ placement agent(s)), investment
stock exchange requires such adjustments, necessary
banker(s), merchant banker(s), underwriter(s),
adjustments will be made.
guarantor(s), financial and/or legal advisor(s),
RESOLVED FURTHER THAT for the purpose of giving effect depositories, custodians, principal paying/transfer/
to any offer, issue or allotment of Equity Shares and/ or conversion agents, listing agents, registrars, trustees
Securities or instruments representing the same, as described and all other agencies, whether in India or abroad,
above, the Board be and is hereby authorised on behalf of the entering into or execution of all such agreements/
Company to seek listing of any or all of such Securities on arrangements/MoUs/documents with any such
one or more Stock Exchanges in India or outside India and the agencies, in connection with the proposed offering of
listing of Equity Shares underlying the ADRs and/or GDRs on the Securities;
the Stock Exchanges in India.
(b) finalisation of and arrangement for the submission of the
RESOLVED FURTHER THAT without prejudice to the generality preliminary and final offering circulars/prospectus(es)/
of the above, subject to applicable laws and subject to offer document(s)/placement document(s), and any
approval, consents, permissions, if any of any governmental amendments and supplements thereto, with any
body, authority or regulatory institution including any applicable government and regulatory authorities,
conditions as may be prescribed in granting such approval institutions or bodies, as may be required;
or permissions by such governmental authority or regulatory
(c) approval of the preliminary and final offering circular/
institution, the aforesaid Securities may have such features
placement document/ prospectus/Offer document
and attributes or any terms or combination of terms that
(including amending, varying or modifying the same, as
provide for the tradability and free transferability thereof in
may be considered desirable or expedient) as finalised in
accordance with the prevailing practices in the capital markets
consultation with the Lead Manager(s)/Underwriter(s)/
including but not limited to the terms and conditions for issue
Advisor(s) /Placement Agents(s) in accordance with all
of additional Securities and the Board subject to applicable
applicable rules, regulations and guidelines;
laws, regulations and guidelines be and is hereby authorised
in its absolute discretion in such manner as it may deem fit, to
dispose of such Securities that are not subscribed.

(d) approval of the Deposit Agreement(s), the Purchase/ (k) deciding the pricing and terms of the Securities, and
Underwriting Agreement(s), the Trust Deed(s), the all other related matters, including taking any action
Indenture(s), the Master/Global GDRs/FCCBs/other on two-way fungibility for conversion of underlying
Securities, letters of allotment, listing application, equity shares into FCCBs/GDRs, as per applicable laws,
engagement letter(s), memoranda of understanding regulations or guidelines;
and any other agreements or documents, as may
(l) open one or more bank accounts in the name of the
be necessary in connection with the issue/ offering
Company in Indian currency or foreign currency(ies)
(including amending, varying or modifying the same,
with such bank or banks in India and/or such foreign
as may be considered desirable or expedient), in
countries or demat accounts as may be required in
accordance with all applicable laws, rules, regulations
connection with the aforesaid issue;
and guidelines;
(m) all such acts, deeds, matters and things as the Board
(e) decide the date for the opening and closing of the
may, in its absolute discretion, consider necessary,
issue of Securities, including determining the form and
proper, expedient, desirable or appropriate for making
manner of the issue, issue structure, including the class
the said issue as aforesaid and to settle any question,
of investors to whom the Securities are to be issued
query, doubt or difficulty that may arise in this regard
and allotted, number of Securities to be allotted, issue
including the power to allot under-subscribed portion, if
price (including the premium or discount to the floor
any, in such manner and to such person(s) as the Board
price, as the case may be), face value, delivery and
of Directors, may deem fit and proper in its absolute
execution of all contracts, agreements and all other
discretion to be most beneficial to the Company; and
documents, deeds and instruments as may be required
or desirable in connection with the issue of Securities (n) to affix the Common Seal of the Company on any
by the Company; agreement(s)/ document(s) as may be required to be
executed in connection with the above, in the presence
(f) finalisation of the allotment of the Securities on the
of any Director of the Company or any other person
basis of the subscriptions received;
authorised by the Board, who shall sign the same in
(g) finalisation of the basis of allotment in the event of token thereof.
over-subscription;
RESOLVED FURTHER THAT for the purpose of giving effect
(h) authorisation to any director or directors of the to the above, the Board be and is hereby authorised on behalf
Company or other officer or officers of the Company, of the Company to take all actions and do all such acts,
including by the grant of power of attorneys, to do such deeds, matters and things as it may, in its absolute discretion,
acts, deeds and things as the authorised person in its deem necessary, desirable or expedient for the Issue and to
absolute discretion may deem necessary or desirable resolve and settle all questions, difficulties or doubts that
in connection with the issue and allotment of the may arise in regard to such Issue, including the finalisation
Securities; and approval of the draft as well as final offer document(s),
determining the form and manner of the Issue, finalization
(i) seeking, if required, the consent of the Company’s
of the timing of the Issue, identification of the investors to
lenders, parties with whom the Company has entered
whom the Securities are to be offered, determining the issue
into various commercial and other agreements, all
price, face value, premium amount on issue/ conversion of
concerned government and regulatory authorities in
the Securities, if any, rate of interest, execution of various
India or outside India, and any other consent that may
transaction documents, signing of declarations, creation of
be required in connection with the issue and allotment
mortgage/ charge, utilization of the issue proceeds, without
of the Securities;
being required to seek any further consent or approval of the
(j) seeking the listing of the Securities on any Indian or members or otherwise to the end and intent that the members
international stock exchange, submitting the listing shall be deemed to have given their approval thereto expressly
application to such stock exchange and taking all by the authority of this resolution.
actions that may be necessary in connection with
RESOLVED FURTHER THAT the Board be and is hereby
obtaining such listing;
authorised to issue and allot such number of Equity Shares

as may be required to be issued and allotted upon conversion this e-AGM is being held pursuant to the MCA Circulars
of any Securities or as may be necessary in accordance with through VC/ OAVM facility, physical attendance of
the terms of the offering, all such Equity Shares ranking pari members has been dispensed with. Accordingly, the
passu with the existing Equity Shares of the Company in all facility for appointment of proxies by the members will
respects. not be available for the e-AGM and hence the Proxy
Form and Attendance Slip are not annexed to this
RESOLVED FURTHER THAT the Board be and is hereby Notice.
authorised to constitute or form a Committee or delegate
4. Statement pursuant to Section 102 of the Act forms
all or any of its powers to any Director(s) or Committee of part of this Notice. The Board of Directors at their
Directors / Company Secretary /Chief Financial Officer or meeting held on 28th May, 2021 have decided that the
other persons authorised by the Board for obtaining approvals, special businesses set out under item no. 5 to 8, being
statutory, contractual or otherwise, in relation to the above considered ‘unavoidable’, be transacted at the ensuing
and to settle all matters arising out of and incidental thereto, e-AGM of the Company.
and to execute all deeds, applications, documents and
5. The facility of joining the e-AGM through VC/OAVM will
writings that may be required, on behalf of the Company and be opened 15 minutes before and will be open upto 15
generally to do all acts, deeds, matters and things that may minutes after the scheduled start time of the e-AGM,
be necessary, proper, expedient or incidental for the purpose i.e. from 10.45 a.m. to 11.15 a.m. and will be available
of giving effect to this resolution and accept any alteration(s) for 1,000 members on a first-come first-served basis.
or modification(s) as they may deem fit and proper and give This rule would however not put any restriction on
such direction(s) as may be necessary to settle any question the participation of shareholders holding 2% or more
or difficulty that may arise in regard to issue and allotment of shareholding, promoters, institutional investors,
the Securities.” directors, key and senior managerial personnel, auditors
etc.
Dated: 28th May, 2021 By Order of the 6. Institutional Investors, who are members of the
Company are encouraged to attend and vote at the
Board of Directors
Forty-First e-AGM of the Company.
7. Members attending the e-AGM through VC / OAVM shall

Registered Office: Ritesh Chaudhry be counted for the purpose of reckoning the quorum
Sai Hira, Survey No. 93, Company Secretary under Section 103 of the Companies Act, 2013.
Mundhwa, Pune - 411 036
8. In terms of Section 101 and 136 of the Act, read together
with the Rules made thereunder, the listed companies
 NOTES
may send the notice of annual general meeting and the
1. In view of the continuing Covid-19 pandemic, the Ministry annual report, including Financial Statements, Board
of Corporate Affairs (“MCA”) has vide its circular dated Report etc. by electronic mode. Pursuant to the said
13th January 2021 read with circulars dated 5th May, provisions of the Act read with MCA Circulars and SEBI
2020, 8th April, 2020 and 13th April, 2020 (collectively Circular dated 15th January, 2021 read with SEBI Circular
referred to as “MCA Circulars”) permitted the holding dated 12th May, 2020, Notice of the e-AGM along with
of the Annual General Meeting (“AGM”) through VC / the Annual Report 2020-21 is being sent only through
OAVM, without the physical presence of the Members electronic mode to those members whose e-mail
at a common venue. In compliance with the provisions addresses are registered with the Company/Depositories.
of the Companies Act, 2013 (“Act”) and the aforesaid Members may note that the Notice and Annual Report
MCA Circulars, the AGM of the Company is being held 2020-21 will also be available on the Company’s website at
through VC / OAVM, hereinafter called as ‘e-AGM’. www.dfpcl.com, website of the Stock Exchanges i.e. BSE
Ltd. at www.bseindia.com and National Stock Exchange
2. The deemed venue for Forty-First e-AGM shall be the of India Ltd. at www.nseindia.com and on the website of
registered office of the Company. KFin at https://evoting.kfintech.com
3. Pursuant to the provisions of the Act, a member entitled 9. To receive shareholders’ communications through
to attend and vote at the AGM is entitled to appoint a electronic means, including Annual Reports and
proxy to attend and vote on his/her behalf and the Notices, members are requested to kindly register/
proxy need not be a member of the Company. Since update their e-mail address with their respective

depository participant, where shares are held in for assistance in this regard. Members may also refer
electronic form. Where shares are held in physical form, to Frequently Asked Questions (FAQs) on Company’s
members are advised to register their e-mail address website.
with KFin by clicking on the link https://ris.kfintech.
com/clientservices/mobilereg/mobileemailreg.aspx. 14. The Register of Members and Share Transfer Books of
The Company has also published an advertisement the Company shall remain closed from Friday, the 20th
in the newspaper containing details about the Annual August, 2021 to Thursday, the 26th August, 2021 (both
General Meeting (AGM) i.e the conduct of AGM through days inclusive).
VC/ OAVM, date and time of AGM, availability of notice The dividend, as recommended by the Board, if declared
of AGM at Company’s website, manner of registering at the meeting, will be paid to those members or their
the email ID’s of those shareholders who have not mandates:
registered their email ID’s with Company/ RTA and
manner of providing mandates for dividend and other a) Whose names appear as Beneficial owners as at
matters are may be required. the end of business hours on Thursday, the 19th
day of August, 2021 in the list of Beneficial Owners
10. Further, those members who have not registered their to be furnished by National Securities Depository
e-mail addresses and mobile nos. and in consequence Limited and Central Depository Services (India)
could not be served the Annual Report and Notice of Limited in respect of the shares held in electronic
e-AGM, may temporarily get themselves registered form; and
with KFin, by clicking the link: https://ris.kfintech.
com/clientservices/mobilereg/mobileemailreg.aspx b) Whose names appear as members in the Register
for obtaining the same. Members are requested to of Members of the Company after giving effect
support our commitment to environmental protection to valid requests for transmission of shares,
by choosing to receive the Company’s communication deletion/transposition of names etc in physical
through e-mail going forward. form lodged with the Registrar & Share Transfer
Agents of the Company on or before Thursday,
11. Since the meeting will be conducted through VC/OAVM the 19th day of August, 2021.
facility without the presence of members at a common
venue, the Route Map of the Common Venue is not 15. Members holding shares in physical form are requested
annexed to this Notice. to intimate immediately to KFin Technologies Private
Limited, UNIT: Deepak Fertilisers And Petrochemicals
12. For ease of conduct, members who would like to ask Corporation Limited, Selenium Tower B, Plot 31-
questions/express their views on the items of the 32, Gachibowli, Financial District, Nanakramguda,
businesses to be transacted at the meeting can send Hyderabad – 500 032; Email Id: einward.ris@kfintech.
in their questions/comments in advance by visiting URL com Phone: 1800 309 4001; Fax No: +91 40 2342 0814,
https://emeetings.kfintech.com/ and clicking on the tab quoting the Registered Folio Number: (a) details of Bank
“Post your Queries” during the period starting from 23rd Account / change in Bank Account, if any, to enable
August, 2021 (9.00 a.m.) upto 25th August, 2021 (5.00 the Company to print these details on the Dividend
p.m.) mentioning their name, demat account no./Folio Warrants; and (b) change in address, if any, with the Pin
no., e-mail Id, mobile number etc. The queries may be Code Number.
raised precisely and in brief to enable the Company to
answer the same suitably depending on the availability 16. Pursuant to the changes introduced by the Finance
of time at the meeting. Act, 2020, dividend income is taxable in the hands of
shareholders w.e.f. 1st April, 2020 and the Company
13. SEBI, vide its notification dated 8th June, 2018 as is required to deduct tax at source (TDS) from
amended on 30th November, 2018, has stipulated dividend paid to members at the prescribed rates.
that w.e.f. 1st April, 2019, the transfer of securities For the prescribed rates for various categories, the
(except transmission or transposition of shares) shall shareholders are requested to refer to the Finance
not be processed, unless the securities are held in the Act, 2020 and amendments thereof. The members are
dematerialised form. In view of this and to eliminate requested to update their PAN with the Company / KFin
all risks associated with physical shares and for ease Technologies Private Limited (in case of shares held in
of portfolio management, members holding shares in physical mode) and depositories (in case of shares held
physical form are requested to consider converting in demat mode).
their holdings to dematerialised form. Members can
contact the Company or Company’s Registrars and 17. Members are requested to note that pursuant to
Transfer Agents i.e. KFin Technologies Private Limited, the provisions of Section 124 and other applicable

provisions of the Companies Act, 2013, (including to enable them to cast their votes electronically on the
any statutory modifications or re-enactments thereof) resolutions set forth in this notice. For this purpose,
and Rules made thereunder the dividend remaining necessary arrangements have been made with KFin
unclaimed / unpaid for a period of seven years from the Technologies Private Limited (KFin) to facilitate remote
date of transfer to the “Unpaid Dividend Account” shall e-voting. The business set out in the Notice can be
be credited to the Investor Education and Protection transacted through such voting.
Fund (Fund) set up by the Central Government.
The instructions for remoting e-voting are as under:
Members who have so far not claimed the dividend
are requested to make claim with the Company The remote e-voting period begins at 9.00 a.m. on
immediately. Please visit Company’s website: Monday, 23rd August, 2021 and ends at 5:00 p.m.
www.dfpcl.com for details. on Wednesday, 25th August, 2021. During this period
shareholders of the Company, holding shares either
Further, in terms of Section 124(6) of the Act, in case in physical form or in dematerialized form, as on the
of such members whose dividends are unpaid for a cut-off date of 19th August, 2021, may cast their vote
continuous period of seven years, the corresponding electronically through remote e-voting. The facility for
shares shall be transferred to the IEPF Demat account. voting through electronic voting system shall be made
available at the meeting and the members attending the
In view of this, Members are requested to claim their meeting who have not cast their vote by remote e-voting
dividends from the Company, within the stipulated shall be able to vote at the Annual General Meeting.
timeline. The Members, whose unclaimed dividends/
shares have been transferred to IEPF, may claim the The instructions for members for remote e-voting are
same by making an application to the IEPF Authority as under:
in Form No. IEPF-5 available on www.iepf.gov.in. For
details, please refer to Report on Corporate Governance • Individual Shareholders (holding securities in DEMAT
which is a part of this Annual Report. mode)
18. Voting through electronic means: As per the SEBI circular dated 9th December, 2020
on e-Voting facility provided by Listed Companies,
In compliance with provisions of Section 108 of Individual shareholders holding securities in Demat
the Companies Act, 2013 read with Rule 20 of the mode are allowed to vote through their demat
Companies (Management and Administration) Rules, account maintained with Depositories and Depository
2014 and Regulation 44 of the SEBI (Listing Obligations Participants. Shareholders are advised to update their
and Disclosure Requirements) Regulations, 2015, mobile number and email Id in their demat accounts in
read with SEBI Circular dated 9th December, 2020 on order to access e-Voting facility.
e-voting facility provided by listed entities, the Company
is pleased to offer e-voting facility for its Shareholders,
Login through Depositories:
NSDL CDSL
1. User already registered for IDeAS facility: 1. Existing user who have opted for Easi / Easiest
I. URL: https://eservices.nsdl.com I. URL: https://web.cdslindia.com/myeasi/home/login
II. Click on the “Beneficial Owner” icon under ‘IDeAS’ or
section. URL: www.cdslindia.com
III. On the new page, enter User ID and Password. Post II. Click on New System Myeasi
successful authentication, click on “Access to e-Voting”
III. Login with user id and password.
IV. Click on company name or e-Voting service provider
and you will be re-directed to e-Voting service provider IV. Option will be made available to reach e-Voting page
website for casting the vote during the remote e-Voting without any further authentication.
period. V. Click on e-Voting service provider name to cast your
vote.

NSDL CDSL
2. User not registered for IDeAS e-Services 2. User not registered for Easi/Easiest
I. To register click on link : https://eservices.nsdl.com I. Option to register is available at https://web.cdslindia.
II. Select “Register Online for IDeAS” com/myeasi/Registration/EasiRegistration
III. Proceed with completing the required fields. II. Proceed with completing the required fields.
IV. After successful registration, please follow steps given

under Sr. No.1 above to cast your vote
3. By visiting the e-Voting website of NSDL 3. By visiting the e-Voting website of CDSL
I. URL: https://www.evoting.nsdl.com I. URL: www.cdslindia.com
II. Click on the icon “Login” which is available under II. Provide demat Account Number and PAN No.
‘Shareholder/Member’ section.
III. System will authenticate user by sending OTP on
III. Enter User ID (i.e. 16-digit demat account number held registered Mobile & Email as recorded in the demat
with NSDL), Password/OTP and a Verification Code as Account.
shown on the screen.
IV. After successful authentication, user will be provided
IV. Post successful authentication, you will be redirected links for the respective ESP (E-voting Service Provider)
to NSDL Depository site wherein you can see e-Voting where the e-Voting is in progress.
page.
V. Click on company name or e-Voting service provider

name and you will be redirected to e-Voting service
provider website for casting your vote during the
remote e-Voting period.
Helpdesk for Individual Shareholders holding securities in demat mode for any technical issues related to login through
Depositories i.e. NSDL and CDSL
Members facing any technical issue - NSDL Members facing any technical issue - CDSL
Members facing any technical issue in login can contact Members facing any technical issue in login can contact
NSDL helpdesk by sending a request at evoting@nsdl.co.in CDSL helpdesk by sending a request at helpdesk.
or call at toll free no.: 1800 1020 990 and 1800 22 44 30 evoting@cdslindia.com or contact at 022- 23058738 or
022-23058542-43
Procedure to login through demat accounts/ website of i. Use an internet browser and open https://evoting.
Depository Participants kfintech.com
You can also login using the login credentials of your ii. Enter the login credentials (i.e. User ID and
demat account through your Depository Participant password) mentioned in your email.
registered with NSDL/CDSL for e-Voting facility. Once
iii. After entering the above details Click on ‘Login’
login, you will be able to see e-Voting option. Click on
e-Voting option and you will be redirected to NSDL/ iv. Password change menu will appear. Change the
CDSL Depository site after successful authentication. Password with a new Password of your choice.
Click on company name or e-Voting service provider The new password shall comprise minimum 8
name and you will be redirected to e-Voting service characters with at least one upper case (A-Z), one
provider website for casting your vote during the remote lower case (a-z), one numeric (0-9) and a special
e-Voting period. character (@,#,$,etc.) The system will also prompt
you to update your contact details like mobile
• Login method for Non-Individual Shareholders and
number, email ID, etc. on first login. You may also
Shareholders holding securities in Physical Form
enter a secret question and answer of your choice

to retrieve your password in case you forget it. xiii. The scanned image of the above-mentioned
documents should be in the naming format
It is strongly recommended that you do not share
“Deepak Fertilisers And Petrochemicals
your password with any other person and that
Corporation Limited - AGM”.
you take utmost care to keep your password
confidential. After change of password, you need xiv. In case of any queries, you may refer to the
to login again with the new credentials. ‘Frequently Asked Questions’ (FAQs) and ‘e-voting
v. In case you are already registered with KFin user manual’ available in the ‘Downloads’ section
Technologies Private Limited for remote of the e-voting website of KFin Technologies
e-voting, then you can use your existing user Private Limited https://evoting.kfintech.com
ID and password for casting your vote. If you
xv. The voting rights shall be as per the number
have forgotten your password, you can reset
of equity shares held by the Member(s) as on
your password by using “Forgot Password”
relevant date. Members are eligible to cast vote
option available on https://evoting.kfintech.com
electronically only if they are holding shares as on
or contact KFin Technologies Private Limited
that date.
at toll free No. 1800 309 4001 or email to
https://evoting.kfintech.com. In case of any other xvi. Members who have acquired shares after the
queries/grievances connected with voting by dispatch of the Notice of Annual General Meeting
electronic means, you may also contact Shri S. and before the relevant date may obtain the User
V. Raju of KFin Technologies Private Limited, at ID and Password by sending a request at evoting@
telephone no. 040- 67161571. kfintech.com or investorgrievance@dfpcl.com.
vi. On successful login, the system will prompt you 19. All relevant documents referred to in the accompanying
to select the E-voting Event. notice and explanatory statement requiring the approval
of Members at the meeting and other statutory registers
vii. Select ‘EVENT’ of Deepak Fertilisers And
shall be available for inspection by the Members in
Petrochemicals Corporation Limited – AGM and
electronic mode. Members can inspect the same by
click on ‘Submit’.
sending an email to investorgrievance@dfpcl.com.
viii. Now you are ready for e-voting as ‘Ballot Form’
20. Members are requested to note that pursuant to
page opens.
Regulation 36(3) of the SEBI (Listing Obligations and
ix. Cast your vote by selecting appropriate option and Disclosure Requirements) Regulations, 2015 and
click on ‘Submit’. Click on ‘OK’ when prompted. the Secretarial Standards-2 (SS-2), brief particulars
including shareholding of the Directors proposed to
x. Upon confirmation, the message ‘Vote cast be appointed / re-appointed is given at the end of the
successfully’ will be displayed. Notice and forms part of the Notice.
xi. Once you have confirmed your vote on the 21. Voting at e-AGM
resolution, you cannot modify your vote.
i. Only those members/shareholders, who will be
xii. Institutional shareholders (i.e. other than present in the e-AGM through video conferencing
individuals, HUF, NRI, etc.) are required to facility and have not cast their vote through
send scanned copy (PDF/ JPG Format) of the remote e-voting and are otherwise not barred
relevant Board Resolution / Authority Letter etc. from doing so are eligible to vote through e-voting
authorising its representative to attend the AGM in the e-AGM.
through VC/OAVM on its behalf and to vote
ii. However, members who have voted through
through e-voting. The said Resolution / Authority
remote e-voting will be eligible to attend the
Letter etc. shall be sent to the Scrutinizer by an
e-AGM.
e-mail at deulkarcs@gmail.com and mark copy
to investorgrievance@dfpcl.com. It should reach iii. In case members cast their votes through both
the Scrutinizer on / before 25th August, 2021 at the modes, voting done by remote e-voting shall
5.00 p.m. They may also upload the same in the prevail and e-voting at Annual General Meeting
e-voting module in their login. shall be treated as invalid.

iv. Members attending the e-AGM shall be counted • A video guide assisting the members attending e-AGM
for the purpose of reckoning the quorum under either as a speaker or participant is available for quick
section 103 of the Act. reference at URL https://emeetings.kfintech.com/
v. Upon declaration by the Chairman about the • Members who need technical assistance before or
commencement of e-voting at e-AGM, members during the e-AGM can contact KFin at emeetings@
shall click on the thumb sign on the left hand kfintech.com or Helpline: 1800 309 4001.
bottom corner of the video screen for voting at
• Shri Sridhar Mudaliar, Partner, SVD & Associates,
the e-AGM, which will take them to the ‘Instapoll’
Practising Company Secretaries, (Membership No.
page.
FCS 6156, CP No. 2664) or failing him Smt. Sheetal
vi. Members to click on the ‘Instapoll’ icon to reach Joshi, Partner, SVD & Associates, Practicing Company
the resolution page and follow the instructions to Secretaries (Membership No. FCS 10480, CP No.11635)
vote on the resolutions. have been appointed as the Scrutinizer to scrutinize the
remote e-voting process and voting at the e-AGM in a
Instructions for members for attending the e-AGM:
fair and transparent manner.
• Member will be provided with a facility to attend the
• The Chairman shall formally propose to the shareholders
e-AGM through Video Conferencing platform provided by
/ members participating through VC/OAVM facility to
KFintech, which can be accessed at https://emeetings.
vote on the resolutions as set out in the Notice of the
kfintech.com/ by clicking ‘‘Video Conference’’ and login
e-AGM and announce the start of the casting of vote at
by using the remote e-voting credentials. The link for
e-AGM through the e-voting system of KFin.
e-AGM will be available in ‘shareholders / members’
login where the EVENT and the Name of the Company • The Scrutinizer shall, immediately after the conclusion
can be selected. of voting at the e-AGM, first count the votes cast at the
meeting, thereafter unblock the votes through remote
• Members are encouraged to join the meeting through
e-voting in the presence of at least two witnesses,
Laptops with Google Chrome for better experience.
not in the employment of the Company and make a
• Further, members will be required to allow camera, if consolidated Scrutiniser’s report of the total votes
any, and hence use internet with a good speed to avoid cast in favour or against, if any, to the Chairman of the
any disturbance during the meeting. Company or a person authorized by him in writing, who
shall countersign the same and declare the result of the
• While all efforts would be made to make the VC / voting forthwith.
OAVM meeting smooth, participants connecting
through mobile devices, tablets, laptops etc. may at • The Results declared along with the report of the
times experience audio/video loss due to fluctuation in Scrutiniser shall be immediately forwarded to the BSE
their respective networks. Use of a stable Wi-Fi or LAN Limited and National Stock Exchange of India Limited.
connection can mitigate some of the technical glitches.
DIVIDEND RELATED INFORMATION
• Members, who would like to express their views or
The dividend, as recommended by the Board, if approved at the
ask questions during the e-AGM will have to register
ensuing Annual General Meeting, will be paid to shareholders
themselves as a speaker by visiting the URL https://
holding equity shares of the Company, as stated in note
emeetings.kfintech.com/ and clicking on the tab
no. 14.
“Speaker Registration” during the period starting from
23rd August, 2021 (9.00 a.m.) upto 25th August, 2021 In accordance with the provisions of the Income Tax Act, 1961
(5.00 p.m.). Only those members who have registered as amended by and read with the provisions of the Finance
themselves as a speaker will be allowed to express Act, 2020, with effect from 1st April, 2020, dividend declared
their views/ask questions during the e-AGM. The and paid by the Company shall be taxable in the hands of
Company reserves the right to restrict the number of the shareholders. The Company shall therefore be required
speakers depending on the availability of time for the to deduct tax at source u/s 194, 195 and 196D of Income
e-AGM. Please note that only questions of the members Tax Act, 1961 depending upon the status and category of the
holding the shares as on cut-off date will be considered. Shareholders at the time of making the payment of the said
Dividend.

Payment of dividend shall be made through electronic mode to the Shareholders who have updated their bank account details.
Dividend warrants / demand drafts will be despatched to the registered address of the shareholders who have not updated their
bank account details.
The applicable Tax Deduction at Source (TDS) provisions, as per the Income Tax Act, 1961, for various categories of shareholders
along with required documents provided in Table 1 and 2 below:
Table 1: Resident Shareholders
Category of Tax deduction Exemption applicability/ Documentation requirement

shareholder Rate
Any resident shareholder 10% No deduction of taxes in the following cases:
• If dividend income to a resident Individual shareholder during FY 2020-21

does not exceed INR 5,000/-.
• If shareholder is exempted from TDS provisions through any circular or

notification and provides an attested copy of the PAN along with the
documentary evidence in relation to the same.
• Submitting declaration in Form No. 15G (applicable to any person other than
a company or a firm) / Form 15H (applicable to an Individual who is 60 years
and older), fulfilling all the required eligibility conditions.
Mutual Funds NIL Self-attested copy of registration certificate with SEBI and self-declaration that
the mutual funds are notified mutual fund u/s 10(23D)(ii) of Income Tax Act,
1961.
Insurance Companies: NIL Documentary evidence that the provisions of Section 194 of the Income Tax
Public & Other Insurance Act, 1961 are not applicable and a declaration that they are beneficial owner of
Companies the Shares.
Corporation established NIL Documentary evidence that the Corporation is covered under section 196 of the
by or under a Central Income Tax Act, 1961.
Act which is, under
any law for the time
being in force, exempt
from income-tax on its
income.
New Pension System NIL A declaration that they are governed by the provisions of section 10(44)
Trust [subsection 1E to section 197A] of the Act along with copy of registration
documents (self- attested);
Order under section 197 Rate provided Lower/NIL withholding tax certificate obtained from Income Tax authorities.
of the Act in the order
Alternative Investment NIL A declaration that its income is exempt under section 10(23FBA) of the Act and
fund (AIF) they are established as Category I or Category II AIF under the SEBI Regulations.
Copy of registration documents (self-attested) should be provided.
Other resident 20% Shareholders should update the PAN if not already done with depositories
shareholder without (in case shares are held in demat mode) and with the Company’s Registrar &
PAN/Invalid PAN Share Transfer Agent - KFin Technologies Private Limited Selenium Building,
Tower-B, Plot No. 31-32, Financial District, Nanakramguda, Serilingampally,
Hyderabad, Rangareddi, Telangana, India 500 032 at their email id: einward.ris@
kfintech.com or with us at investorgrievance@dfpcl.com (only in case shares
are held in physical mode).

Table 2: Non-resident Shareholders
Category of Section Tax Deduction Rate Exemption applicability/ Documentation requirement

shareholder
Any non- 195 20% (plus applicable Non-resident shareholders may opt for tax rate under Double Taxation
resident surcharge and cess) Avoidance Agreement (“Tax Treaty”). The Tax Treaty rate shall be applied
shareholder or Tax Treaty rate for tax deduction at source on submission of following documents to the
whichever is lower Company:
i. Copy of the PAN Card, if any, allotted by the Indian authorities.

ii. Self-attested copy of Tax Residency Certificate (TRC) valid as on the
AGM date obtained from the tax authorities of the country of which the
shareholder is resident.
iii. Self-declaration in Form 10F.

iv. Self-declaration from Non-residential, primarily covering the following:
• Non-resident is eligible to claim the benefit of respective tax treaty.
• Non-resident receiving the dividend income is the beneficial owner

of such income.
• Dividend income is not attributable/effectively connected to any

Permanent Establishment (PE) or Fixed Base in India.
TDS shall be deducted at 20% (plus applicable surcharge and cess)
if any of the above-mentioned documents are not provided.
The Company is not obligated to apply the Tax Treaty rates at the time
of tax deduction/withholding on dividend amounts. Application of
Tax Treaty rate shall depend upon the completeness and satisfactory
review by the Company, of the documents submitted by the non-
resident shareholders.
Foreign 196D 20%* (plus applica- None
Institutional ble surcharge and
Investors, cess)
Foreign
Portfolio
Investors (FII,
FPI)
Submitting 197 Rate provided in the Lower/NIL withholding tax certificate obtained from Income Tax
Order under Order authorities.
section 197 of
the Act
* Such TDS rate shall not be reduced on account of the application of the lower Tax Treaty rate, if any.
The aforementioned document should be uploaded with KFin Technologies Private Limited, the Registrar and Transfer Agent
(“KFin”) at https://ris.kfintech.com/form15 or emailed to einward.ris@kfintech.com as per the timelines mentioned in the email
sent to the shareholders or as mentioned in the Public Notice, in order to enable the Company to determine appropriate TDS /
withholding tax rate. No communication on the tax determination/deduction shall be entertained beyond the date mentioned in
the aforesaid email or in the Public Notice.

In case the tax on said Dividend is deducted at a higher rate in Auditors of the Company w.e.f. 3rd November, 2020, to fill
absence of receipt of the aforementioned details/ documents the casual vacancy caused by the resignation of B S R &
from the shareholders, there would still be an option available Associates LLP (Chartered Accountants) (Firm Registration
with you to file the return of income and claim an appropriate number: 116231W/W-100024), till the conclusion of next
refund, if eligible, but no claim shall lie against the Company Annual General Meeting (41st) of the Company.
for such taxes deducted.
As per the provisions of Section 139 of the Companies Act,
The Company will arrange to send TDS certificate in Form 2013 read with rules made there under, the Statutory Auditors
16A in due course, post payment of the said Dividend. appointed to fill causal vacancy can hold office upto the
Shareholders will also be able to see the credit of TDS in Form conclusion of ensuing Annual General Meeting.
26AS, which can be downloaded from their e-filing account at
In view of the above, the Board of Directors of the Company, on
incometaxindiaefiling.gov.in.
the recommendation of the Audit Committee, recommended
The shareholders are requested to submit / update their bank for the approval of the Members, the appointment of PGB, as
account details with their Depository Participants, in case the the Statutory Auditors of the Company for the first term for a
shareholders are holding shares in the electronic form. In case period of 5 years from the conclusion of this Annual General
the shareholding is in the physical form, the shareholders Meeting till the conclusion of the 46th Annual General
will have to submit a scanned copy of a covering letter, duly Meeting to be held in 2026.
signed by the first shareholder, along with a cancelled cheque The Board and Audit Committee considered various
leaf with your name and bank account details and a copy of parameters like capability to serve a diverse and complex
PAN card, duly self-attested, with KFin Technologies Private business landscape as that of the Company, audit experience
Limited, this will facilitate receipt of dividend directly into your in the Company’s operating segments, market standing
bank account. In case the cancelled cheque leaf does not of the firm, clientele served, technical knowledge etc., and
bear your name, please attach a copy of the bank pass-book found PGB to be best suited to handle the scale, diversity
statement, duly self-attested. We also request you to register and complexity associated with the audit of the financial
your email IDs and mobile numbers with the Company at statements of the Company.
investorgrievance@dfpcl.com or with KFin Technologies
Private Limited at their email id: einward.ris@kfintech.com. In Considering the above, the Board and Audit Committee
this regards, the Company had also sent a communication to are of the view that continuance of PGB as Auditors of the
all the shareholders via email on 27th July, 2021 and had also Company will be beneficial to the Company, shareholders
published a newspaper advertisement on 28th July, 2021. and other stakeholders as well, therefore recommends their
appointment as the Auditors of the Company for first term
In the event of any income tax demand (including interest, for a period of 5 years from the conclusion of the ensuing
penalty, etc.) arising from any misrepresentation, inaccuracy Annual General Meeting till the conclusion of Annual General
or omission of information provided by the Member/s, such meeting to be held in the year 2026 i.e. the 46th Annual
Member/s will be responsible to indemnify the Company and General Meeting.
also, provide the Company with all information / documents
and co-operation in any appellate proceedings. PGB have conveyed their consent to act as Statutory Auditors
of the Company and have also provided their necessary
This Communication is not exhaustive and does not certificate of eligibility for appointment as Statutory Auditors
purport to be a complete analysis or listing of all potential of the Company as required in Section 139(1) and 141(3) of
tax consequences in the matter of dividend payment. the Companies Act, 2013, confirming the fact that they are
Shareholders should consult their tax advisors for requisite not disqualified to be appointed as Statutory Auditors.
action to be taken by them.
PGB have also confirmed that there are no proceedings
EXPLANATORY STATEMENT against the audit firm or any partner of the audit firm pending
with respect to professional matters of conduct.
Item No. 4
The Shareholders of the Company, on the recommendation of A brief profile of PGB is as given below:
the Audit Committee and Board of Directors via Postal Ballot PGB is a firm of Chartered Accountants registered with the
dated 26th December, 2020 had approved the appointment Institute of Chartered Accountants of India and has 13 partners
of P G BHAGWAT LLP (PGB), Chartered Accountants (Firm with head office at Pune and branch offices in Mumbai,
Registration Number: 101118W/ W100682) as the Statutory Kolhapur, Belagavi, Hubballi, Dharwad and Bengaluru. The

Audit firm has valid Peer Review Certificate. The Audit Firm from the Board of the Company w.e.f. 31st October, 2020 due
was originally formed as a Proprietary Concern in the year to personal reasons.
1938, converted into Partnership Firm in the year 1955 and
now is a Limited Liability Partnership from September 2020. In view of the resignation of Smt. Renu Challu as Woman
Over the last 80 years, the firm has gained varied experience Independent Director, the Company was required to appoint
in the audit, assurance, and management services. another Woman Independent Director in her place.
The Board of Directors recommends the proposed resolution Accordingly, the Board vide its circular resolution dated 27th
for the approval of the Members of the Company. January, 2021, on the recommendation of Nomination and
Remuneration Committee, appointed Smt. Varsha Vasant
None of the Directors or Key Managerial Personnel or their
Purandare (DIN 05288076) as an Additional Director in the
relative(s) is / are in any way concerned or interested, in
Capacity of Woman Independent Director of the Company
passing of the above mentioned resolution.
as per the applicable provisions of the Companies Act, 2013
Item No. 5 and SEBI (Listing Obligations and Disclosure Requirements)
In pursuance of Section 148 of the Companies Act, 2013 and Regulations, 2015 with effect from 31st January, 2021 for
Rule 14 of the Companies (Audit and Auditors) Rules, 2014, the first term of 3 (three) consecutive years, subject to the
the Board of Directors (Board) shall appoint an Individual approval of the shareholders.
who is Cost Accountant, or a firm of Cost Accountants in
practice, as Cost Auditor on the recommendation of the Audit Smt. Purandare has submitted the Declaration of
Committee, which shall also recommend remuneration for Independence, as required pursuant to Section 149(6) of the
such auditor. The remuneration recommended by the Audit Companies Act, 2013 stating that she meets the criteria of
Committee shall be considered and approved by the Board independence as provided in Section 149(6) and Regulation
and ratified by the Members. 16 of SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015. Smt. Purandare has also informed that
On the recommendation of Audit Committee, the Board at its
she is not aware of any circumstances or situation, which
meeting held on 28th May, 2021 considered and approved
exist or may be reasonably anticipated, that could impair or
appointment of M/s Harshad S. Deshpande & Associates,
impact her ability to discharge her duties with an objective
Cost Accountants, for conducting Cost Audit of all applicable
independent judgment and without any external influence.
products at a remuneration of `2,25,000/- (Rupees Two Lacs
Twenty Five Thousand only) plus taxes as applicable and In the opinion of the Board, Smt. Purandare fulfills the
reimbursement of travel and out-of pocket expenses for the conditions specified in the Companies Act, 2013 and rules
Financial Year ending 31st March, 2022. made thereunder and SEBI (Listing Obligations and Disclosure
The Board of Directors recommends Ordinary Resolution Requirements) Regulations, 2015 and Smt. Purandare is
set out at Item No. 5 for approval by the Members of the independent of the management.
Company.
The Board is also of the opinion that Smt. Purandare
None of the Directors or Key Managerial Personnel or their possesses requisite skills, experience and knowledge relevant
relative(s) is / are in any way concerned or interested, in to the Company’s business and it would be in the interest
passing of the aforesaid resolution. of the Company to have her association as an Independent
Director.
Item No. 6
Regulation 17 of the SEBI (Listing Obligations and Disclosure Smt. Purandare is not disqualified from being appointed as a
Requirements) Regulations, 2015 (Listing Regulations) inter- Director in terms of Section 164 of the Act.
alia provides that the Board of directors of the top 500 listed
In respect of the appointment of Smt. Purandare, a notice in
entities shall have at least one independent woman director
writing in the prescribed manner, as required by Section 160
by 1st April, 2019 and the Board of directors of the top 1000
of the Companies Act, 2013 as amended and Rules made
listed entities shall have at least one independent woman
thereunder, has been received by the Company, regarding her
director by 1st April, 2020.
candidature for the office of the director.
To comply with the Listing Regulations as mentioned In accordance with the provisions of Section 149 read with
above, the Company had appointed Smt. Renu Challu as an Schedule IV to the Companies Act, 2013, appointment of an
Independent Woman Director of the Company who resigned Independent Director for the first term requires approval of
members by way of an ordinary resolution.

The terms and conditions of appointment of independent redesign work for Finance and support function, Crafting
director shall be available for inspection through electronic Employee value proposition, Integration of Srikakulam Unit
mode and the same shall also be available at the Company’s with DFPCL larger system, Focused intervention in CNB to
website www.dfpcl.com. improve recruitment process & reducing MDO attritions etc.
Information about the appointee: The Audit Committee and the Board of Directors of the
Company at their meeting held on 27th May, 2021 and 28th
Smt. Varsha Vasant Purandare [DIN 05288076], ex-Managing May, 2021, respectively, approved transfer of services from
Director & CEO of SBI Capital Markets, holds a Bachelor’s the Company to Smartchem Technologies Limited and
degree in Science (Chemistry) and has a Diploma in Business continuance of her engagement as AVP – TAN Business
Management, having varied experience of 36 years in the Strategy and Transformation w.e.f 1st June, 2021.
areas of Credit, Forex, Risk, Treasury, Capital Markets,
Investment Banking and Private Equity. Mrs. Purandare was In her new role she will be responsible for articulation of TAN
the Managing Director and Chief Executive Officer of SBI strategy involving segmental deep dive, which will comprise
Capital Markets Limited (“SBI Caps”) from November 2015 of segmental key needs, TAN’s value proposition for each
upto December 2018, where she was overall in-charge of SBI segment along with cost to serve and ROI, competition
Caps and its five subsidiaries, covering investment banking landscape assessment, case studies and best practices in
and encompassing Equity Capital Markets, Debt Markets, the global explosives industry and she would be reporting to
Private Equity, Institutional & Retail Broking, Trustee & Foreign TAN Sector Head.
Subsidiaries. Prior to this, Mrs. Purandare was the Deputy Section 188 of the Companies Act, 2013 read with Rule
Managing Director and Chief Credit and Risk Officer of State 15 of the Companies (Meetings of Board and its Powers)
Bank of India (“SBI”), where she headed the highest Credit Rules, 2014 provides that a company shall not enter into a
Committee and was in-charge of the overall credit function. transaction for appointment of related party to any office
Besides the above, Mrs. Purandare has held several positions or place of profit in the company, its subsidiary company or
in SBI, in India and abroad. associate company at a monthly remuneration exceeding
two and a half lakh rupees (30 Lacs p.a.) without approval of
Considering the illustrious background and enormous
Shareholders of the Company.
professional experience in Banking and Capital Market Sector,
the Board of Directors recommends Ordinary Resolution Accordingly, the transfer of services of Ms. Rajvee Mehta from
set out at Item No. 6 for approval by the Members of the the Company to STL at a monthly remuneration exceeding
Company. two and a half lakh rupees or ` 30 Lacs p.a., being related
to Shri. Sailesh C. Mehta, Chairman & Managing Director and
None of the Directors or the Key Managerial Personnel or
Smt. Parul S. Mehta, Non Executive Director of the Company
their relative(s) is / are in any way concerned or interested,
would require approval of the shareholders by way of an
in passing of the aforesaid resolution, except the appointee
ordinary resolution.
Director and her relatives.
None of the Promoter, Director, Key Managerial Personnel of
Item No. 7
the Company and their relatives except Shri. Sailesh C. Mehta,
Ms. Rajvee Mehta, daughter of Shri. S C Mehta, Chairman & Smt. Parul S. Mehta, Directors/ Promoters of the Company
Managing Director and Smt. Parul Mehta, Director, has been and Shri. Yeshil Mehta, Promoter of the Company are deemed
associated with Deepak Fertilisers And Petrochemicals to be concerned or interested financially or otherwise in the
Corporation Limited (“DFPCL”) as an Associate Vice President said resolution.
(HR) (“AVP-HR”) at an annual fixed remuneration of `30 lacs
per annum since September, 2018. The Board accordingly recommends the ordinary resolution
as set out in Item No. 7 for approval by the Members of the
Ms. Rajvee Mehta has done her Master’s in Business
Company.
Administration (MBA) from the prestigious London Business
School with a concentration in Organizational Behavior and Item No.8
Psychology and various other courses in Strategy. In her role
as Associate Vice President (HR), she had been supporting The Company, in order to meet its growth objectives, to
the Company on key HR change management interventions augment its long-term resources and to strengthen its
and her performance in the Company has been “very good” financial position, would require funds. While it is expected
and she has been instrumental in driving change interventions that the internal generation of funds would partially meet the
like HR process Audit, Crafting and stabilizing onboarding funding requirement, it is thought prudent for the Company
process, Sales incentive plan for TAN frontline sales team, to have enabling approvals to raise a part of the funding
Organisation structure redesign for TAN, Organization

requirements for the said purposes, purposes set out in the Company (on a consolidated basis), (f) permissible general
succeeding paragraphs, as well as for such other corporate corporate purposes and (g) for funding the long term growth
purposes as may be permitted under applicable laws through of its existing businesses as well organic or inorganic growth.
the issue of appropriate securities as defined in the resolution,
The special resolution also seeks to empower the Board to
in Indian or International markets.
issue Securities by way of QIP to QIBs in accordance with
The special resolution contained in the Notice under Item Chapter VI of the SEBI (ICDR) Regulations. The pricing of the
No. 8 relates to a resolution by the Company enabling the Securities that may be issued to QIBs pursuant to SEBI (ICDR)
Board to create, issue, offer and allot Equity Shares, GDRs, Regulations shall be freely determined subject to such price
ADRs, Foreign Currency Convertible Bonds, Convertible or not being less than the price calculated in accordance with
Partly Convertible Debentures and such other securities as Chapter VI of the SEBI (ICDR) Regulations (“QIP Floor Price”)
stated in the resolution (the “Securities”), including by way and hence no valuation is being undertaken by any valuer.
of a qualified institutional placement in accordance with Further, the Board may also offer a discount of not more than
Chapter VI of the SEBI (ICDR) Regulations, in one or more such percentage as permitted on the QIP Price calculated
tranches, at such price as may be deemed appropriate by in accordance with the pricing formula provided under SEBI
the Board at its absolute discretion including the discretion (ICDR) Regulations. The “Relevant Date” for this purpose will
to determine the categories of Investors to whom the issue, be the date as determined in accordance with the SEBI (ICDR)
offer, and allotment shall be made considering the prevalent Regulations and as mentioned in the resolution. The issue/
market conditions and other relevant factors and wherever allotment/conversion would be subject to the applicable
necessary, in consultation with lead manager(s) and other regulatory approvals, if any. The issuance and allotment
agencies that may be appointed by the Board for the purpose of Equity Shares including Equity Shares to be allotted on
of the Issue. conversion of Securities to foreign/non-resident investors
would be subject to the applicable foreign investment cap.
This special resolution enables the Board to issue Securities
of the Company for an aggregate amount not exceeding As the Issue may result in the issue of Securities of the
₹ 600,00,00,000 (Rupees Six Hundred Crore Only) or its Company to investors who may or may not be members of
equivalent in any foreign currency in one or more tranches. the Company, consent of the members is being sought, for
The Board of Directors of the Company has approved raising passing the Special Resolution as set out in the said item of
of funds by issue, offer and allotment of Equity Shares, GDRs, the Notice, pursuant to Sections 23, 42, 62 and 71 and other
ADRs, Foreign Currency Convertible Bonds, Convertible or related and applicable provisions, if any, of the Companies Act,
Partly Convertible Debentures and such other securities as 2013 and any other law for the time being in force and being
stated in the resolution (the “Securities”), including by way applicable and in terms of the provisions of the SEBI (Listing
of a qualified institutional placement in accordance with Obligations and Disclosure Requirements) Regulations, 2015.
Chapter VI of the SEBI (ICDR) Regulations at its meeting held
None of the Promoter, Director, Key Managerial Personnel of
on 28th May, 2021.
the Company and their relatives are deemed to be concerned
The Board shall issue Securities pursuant to this special or interested financially or otherwise in the said resolution,
resolution and utilise the proceeds to finance (wholly or in except to the extent of Equity Shares/Securities that may be
part) at its sole and complete discretion, in one or more, or subscribed to by them or by companies/firms/institutions in
any combination, of the following: (a) capital expenditure which they are interested as director or member or otherwise.
for the ongoing projects, (b) maintenance capex / capex
The Board accordingly recommends the special resolution
required for operations, (c) investment in subsidiaries, joint
as set out in Item No. 8 for approval by the Members of the
ventures and affiliates, (d) repayment/prepayment (in full or
Company.
part), of debt, (e) meeting working capital requirement of the

Details of Directors seeking appointment / re-appointment at the Annual General Meeting
[In pursuance of Regulation 36 (3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and
Secretarial Standards -2 (SS-2)]
Name of the Director Smt. Parul Sailesh Mehta Smt. Varsha Vasant Purandare
DIN 00196410 05288076
Date of Birth 17th March, 1965 7th December,1958
Age 56 62 Years
Bachelor of Science (Chemistry) and Diploma in
Qualification B.Com.
Business Management
Date of Appointment 20th October, 2005 31st January, 2021
Expertise Social Service Advisor Finance and Banking

Major Directorships 1. Deepak Fertilisers And 1. Deepak Fertilisers And Petrochemicals Corporation
Petrochemicals Corporation Limited Limited
2. Nova Synthetic Limited 2. Tata Cleantech Capital Limited
3. Ishanya Realty Corporation Limited 3. Tata Capital Limited
4. Ishanya Brand Services Limited 4. Tata Capital Financial Services Limited
5. Smartchem Technologies Limited 5. Orient Cement Limited
6. Performance Chemiserve Limited 6. Legal Entity Identifier India Limited
7. Hightide Investments Private Limited 7. The Federal Bank Limited
8. Robust Marketing Services Private 8. Shaily Engineering Plastics Limited
Limited
Chairman / Member of Nil Chairman
the Audit Committee
Tata Capital Limited
Member
1. Tata Capital Financial Services Limited
2. Orient Cement Limited
3. Tata Cleantech Capital Limited
4. Shaily Engineering Plastics Limited
the Stakeholders’
Relationship Committee
2. Shaily Engineering Plastics Limited
the Nomination and
Tata Capital Limited
Remuneration
Committee Member
1. Tata Capital Financial Services Limited
3. Tata Cleantech Capital Limited

Name of the Director Smt. Parul Sailesh Mehta Smt. Varsha Vasant Purandare
Chairman / Member Member Chairman
of the Corporate
1. Deepak Fertilisers And Tata Cleantech Capital Limited
Social Responsibility
Committee Member
2. Performance Chemiserve Limited
Tata Capital Financial Services Limited
3. Smartchem Technologies Limited
4. Nova Synthetic Limited
Shareholding in the 1,409 Nil
Company as on 31st
March, 2021
Relationship between Shri S. C. Mehta, Chairman and Nil
the Directors inter-se Managing Director is the Spouse of Smt.
Parul Sailesh Mehta
Terms and Conditions N.A. Refer to Explanatory Statement to Resolution no. 6
of Appointment

BOARD’S REPORT
To the Members
Your Directors have pleasure in presenting the Forty-First Annual Report together with Audited Accounts of the Company for the
Financial Year ended 31st March, 2021.
FINANCIAL RESULTS
The summarized financial results for the year are as under:

(` In Lakhs)
Sr. Particulars Standalone Consolidated
No.
2020-21 2019-20 2020-21 2019-20
1 Total Revenue (including Other Operating Revenues) 1,81,131 1,70,775 5,80,849 4,68,538
2 Profit before tax 27,236 2,193 58,832 10,308
3 Less: a) Current Tax (Net) 5,240 - 18,672 381
b) Deferred Tax 1,097 (878) (484) 1,026
4 Net Profit after tax (2 - 3) 20,899 3,071 40,644 8,901
5 Net profit attributable to:
a) Owners of the Company 20,899 3,071 40,031 8,726
b) Non controlling interest NA NA 613 175
6 Other comprehensive income for the year:
a) Owners of the Company (67) (439) 294 (911)
b) Non controlling interest NA NA 309 (67)
7 Total Comprehensive Income for the year:
a) Owners of the Company 20,832 2,632 40,325 7,815
b) Non controlling interest NA NA 922 108
8 Add: Surplus brought forward 1,18,537 1,18,656 1,72,011 1,66,593
9 Amount available for Appropriations (5a + 8) 1,39,436 1,21,727 2,12,042 1,75,319
10 Appropriations:
a) Adjustment from adoption of AASB 16 - - - (134)
b) Movement of Minority of DMSPL - - - 16
c) Increase in non-controlling interest due to issuance of share capital - - (4,592) -
d) Dividend on Equity Shares (Net) (2,679) (2,646) (2,679) (2,646)
e) Tax on Proposed Dividend (Net) - (544) - (544)
11 Surplus carried to Balance Sheet (9 + 10) 1,36,757 1,18,537 2,04,771 1,72,011
STATE OF AFFAIRS OF THE COMPANY forms part of this Report, inter alia, deals adequately with
the operations and also current and future outlook of the
Your Company has achieved the Total Revenue of Rs 1,811
Company on a consolidated basis.
Crore (including ` 589 Crore from trading operations) during
the year under review as against previous year’s level of ISSUE OF FOREIGN CURRENCY CONVERTIBLE BONDS
` 1,708 Crore (including ` 707 Crore from trading operations). (FCCBs) / COMPULSORY CONVERTIBLE DEBENTURES (CCDs)
Profit Before Tax (PBT) for the year under review was `272 As reported in the previous year’s Annual Report, the Board
Crore as against `22 Crore in the previous year. had granted an in-principle approval for issuing FCCBs
aggregating upto US$ 30,000,000 (United States Dollars
Net Profit for the current year was recorded at ` 209 Crore as
Thirty Million) in two tranches to International Finance
against ` 31 Crore in the previous year.
Corporation (IFC).
MANAGEMENT DISCUSSION AND ANALYSIS
Subsequently, in the previous Financial Year, the Securities
The Management Discussion and Analysis (MDA), which Issue Committee of the Company had allotted 30 (Thirty)

Foreign Currency Convertible Bonds (Convertible Securities) The Total Investment of IFC in Smartchem Technologies
having a par value of US$ 500,000 each, being the first Limited, considering the First and Second Tranche, stands at
tranche, to International Finance Corporation (“IFC”), for an ` 210 Crore.
aggregate amount of US$ 15 million (Approx. ` 107 Crore).
ISSUE OF EQUITY SHARES ON RIGHTS BASIS
Further, during the year under review, the Securities Issue
Committee, at its meeting held on 30th September, 2020, During the year under review, the Board of Directors of the
allotted 30 (Thirty) Foreign Currency Convertible Bonds Company at their meeting held on 25th May, 2020 had
(“FCCBs”) having a par value of US$ 500,000 each, being the approved raising of funds by way of issue of equity shares
second tranche, to International Finance Corporation (“IFC”),
to the existing equity shareholders of the Company on rights
for an aggregate amount of US$ 15 million (Approx. ` 109
basis for an issue size of upto ` 180 Crore.
Crore).
Considering the first tranche and second tranche, the Further, the Rights Issue Committee of the Company at its
investment of IFC in the Company stands at aggregate meeting held on 20th October, 2020 approved the allotment of
amount of US$ 30 million (Approx. ` 216 Crore). 1,33,92,663 equity shares on rights basis to the shareholders
of the Company.
ISSUE OF COMPULSORY CONVERTIBLE DEBENTURES
(CCDs) BY MATERIAL SUBSIDAIRY i.e. SMARTCHEM The details of the issue of shares on rights basis have been
TECHNOLOGIES LIMITED provided in the General Shareholder Information.
The Board had also granted an in-principle approval for
DETAILS OF UTILISATION OF FUNDS RAISED THROUGH
issue of Compulsory Convertible Debentures (CCDs) by
PREFERENTIAL ALLOTMENT OR QUALIFIED INSTITUTIONS
Smartchem Technologies Limited (a wholly owned subsidiary
of the Company) aggregating upto ` 210 Crore (Rupees Two PLACEMENT OR RIGHTS ISSUE
Hundred Ten Crore only) in two tranches to IFC. The security
During the year under review, the Company has raised funds
issue agreements have been executed by the Company
through the following manner:
and IFC.
Sr. Mode of Fund Raising Name of the party to whom Date of Raising Funds Amount Raised
No. the securities were issued
1 Issue of Shares on Rights Basis To the eligible shareholders of 20th October, 2020 `178.12 Crore
the Company
2 Issue of Foreign Currency Convertible International Finance 30th September, 2020 Approx. ` 109 Crore
Bonds (FCCBs Funds) Corporation (US$ 15 Million)
The Company has utilised the funds raised through issue of SHARE CAPITAL
FCCBs for the purposes as mentioned in the Notice of the
During the year under review, the Company had allotted
Annual General Meeting held on 18th September, 2018 and
1,33,92,663 equity shares to on rights basis to the
in respect of shares issued on rights basis, the entire funds shareholders of the Company. The details of the issue of
raised by the Company have been utilised for the objects shares on rights basis have been provided in the General
stated in the Letter of Offer for Rights Issue of the Company, Shareholder Information. The Company has not issued
dated 11th September, 2020. shares with differential voting rights or sweat equity shares,
nor has it granted any stock options.
DIVIDEND
The paid-up equity share capital of the Company as on 31st
Considering the performance of the Company, the Board of March, 2021 was ` 102.68 Crore.
Directors of the Company recommends a dividend @ 75 % i.e.
` 7.5 per Equity Share (Previous year ` 3 per Equity Share) of CHANGES IN THE BOARD OF DIRECTORS
` 10 each of the Company for the year ended 31st March, Appointments
2021.
During the year under review, the Board of Directors, based
The proposed dividend is in line with the ‘Dividend Distribution on the recommendation of Nomination and Remuneration
Policy’ adopted by the Board at its meeting held on 30th June, Committee, had approved the appointment of the following
2017. The Policy is available on the Company’s website: directors as additional directors in the capacity of Independent
www.dfpcl.com. Directors:

1. Smt. Renu Challu for the first term of 3 consecutive recorded its appreciation for her valuable contribution
years w.e.f. 13th May, 2020 during her tenure on the Board of the Company.
2. Shri Sujal Anil Shah for the first term of 5 consecutive Smt. Challu has also given confirmation to the Company
years w.e.f. 30th June, 2020 that other than the reasons mentioned above, there are
no other material reasons for her resignation as an
3. Smt. Varsha Purandare for the first term of 3 consecutive
Independent Director of the Company and the same
years w.e.f. 31st January, 2021.
was intimated by the Company to the Stock Exchanges.
The Shareholders of the Company, at their Annual General
Cessation:
Meeting held on 21st September, 2020, had approved the
appointment of Smt. Renu Challu and Shri Sujal Anil Shah as During the year under review, Shri. Pranay Vakil on completion
independent directors of the Company for their respective of his second term as an Independent Director of the Company,
terms. pursuant to the provisions of the Companies Act, 2013 and
SEBI (Listing Obligations and Disclosure Requirements)
Further, in the ensuing Annual General Meeting, the item
Regulations, 2015, has ceased to be Director of the Company
w.r.t. appointment of Smt. Varsha Purandare as Woman
w.e.f. 21st September, 2020.
Independent Director will be taken up. All the information
as required pursuant to the provisions of the Companies, The Board had placed on record its sincere appreciation to
Act 2013 and SEBI (Listing Obligations and Disclosure the valuable guidance provided by Shri Pranay Vakil during
Requirements) Regulations, 2015 is provided in the Notice of his tenure as Independent Director of the Company.
the ensuing Annual General Meeting. The shareholders are
Re-appointment:
requested to approve the appointment in the ensuing annual
general meeting. Smt. Parul Mehta retires by rotation at the ensuing Annual
General Meeting pursuant to provisions of Section 152 of the
Resignation:
Companies Act, 2013 and rules made thereunder and being
During the year under review, the following independent eligible, offers herself for re-appointment at the ensuing
directors have resigned from the Company: Annual General Meeting.
1. Shri Mahesh Chhabria NUMBER OF MEETINGS OF BOARD OF DIRECTORS
Shri Mahesh Chhabria, Independent Director of the During the year under review, eight board meetings were
Company, tendered his resignation to be effective from held. These meetings were held on 21st April, 2020, 25th May,
31st July, 2020 on account of his active involvement 2020, 30th June, 2020, 31st July, 2020, 11th September, 2020,
with the Kirloskar group and other pre-occupation. 3rd November, 2020, 3rd February, 2021 and 26th March, 2021.
The Board, at its meeting held on 31st July, 2020, has CHANGES IN KEY MANAGERIAL PERSONNEL (KMP)
accepted his resignation and recorded its appreciation
During the year under review, Shri K Subharaman, EVP- Legal
for his valuable contribution during his tenure on the
and Company Secretary superannuated from the services of
Board of the Company.
the Company w.e.f. 6th November, 2020 and consequently
Shri Chhabria has also given confirmation to the Shri Gaurav Munoli, Assistant Company Secretary was
Company that other than the reasons mentioned above, designated as Company Secretary of the Company.
there are no other material reasons for his resignation
Further, Shri Ritesh Chaudhry, Vice President & Head – Legal
as an Independent Director of the Company and the
& Secretarial has been appointed as the Company Secretary
same was intimated by the Company to the Stock
w.e.f. February 3, 2021.
Exchanges.
A STATEMENT REGARDING THE OPINION OF BOARD THE
2. Smt. Renu Challu
WITH REGARD TO INTEGRITY, EXPERTISE AND EXPERIENCE
Smt. Renu Challu, Independent Director of the Company (INCLUDING THE PROFICIENCY) OF THE INDEPENDENT
had tendered her resignation as the Director of the DIRECTORS APPOINTED DURING THE YEAR
Company with effect from 31st October, 2020, on
During the year under review, the following were the
account of personal reasons.
Independent Directors appointed on the Board of the
The Board at its meeting held on 3rd November, 2020 Company:
while taking note of resignation by Smt. Renu Challu,

• Smt. Renu Challu (appointed w.e.f. 13th May, 2020), to ` 463 Crore and subsidy amounting to ` 310 Crore
who, however, tendered her resignation as the Director was withheld pending final decision. On the request of
of the Company with effect from 31st October, 2020. the Company, the DoF has released subsidy amounting
to ` 310 Crore against a Bank Guarantee pending final
• Shri Sujal Anil Shah (appointed w.e.f. 30th June, 2020)
decision. The Company had filed a writ petition in the
• Smt. Varsha Purandare (appointed w.e.f. 31st January, Delhi High Court since, based on the decision taken by
2021) Government with regard to reasonableness of profit,
there was no undue gain made by the Company as
The Board is of the opinion that the aforesaid Independent alleged and there was no question of renewing the
Directors appointed on the Board of the Company are persons Bank Guarantee. The Delhi High Court had ordered
of high integrity and reputation, they possess the requisite to keep the status-quo for both the Petitioners and
expertise and experience (including the proficiency). Respondents and had further ordered that no coercive
SIGNIFICANT MATERIAL ORDERS PASSED BY THE action be taken against the Company [Petitioners] till
REGULATORS / STATUTORY AUTHORITIES – the next date of hearing. The Hon’ble High Court of
Delhi on 3rd December, 2020 while disposing off the
1. As disclosed in the last year’s report, effective 15th petition directed the Department of Fertilisers (DOF),
May, 2014, domestic gas supply to the Company was Ministry of Chemicals & Fertilisers to return the Bank
arbitrarily stopped by the Ministry of Petroleum and Guarantee amounting to ` 310 Crore to the Company
Natural Gas. The Company successfully challenged the (STL), which has been released.
same before the Hon’ble Delhi High Court, which,
by its Orders dated 7th July, 2015 and 19th October, INDIAN ACCOUNTING STANDARDS, 2015
2015 directed the Government of India (GoI) to restore The annexed financial statements for the Financial Year
the supply of gas. Review petition filed by the GoI, 2020-21 and corresponding figures for 2020-21 comply in all
challenging the said Orders was rejected by the said material aspects with Indian Accounting Standards (Ind AS)
Court. Further, the GoI also filed the Special Leave notified under section 133 of the Companies Act, 2013 (the
Petition (SLP) before the Hon’ble Supreme Court of Act) [Companies (Indian Accounting Standards) Rules, 2015]
India against the Order of Hon’ble Delhi High Court, and other relevant provisions of the Act.
which was also disposed without granting any relief
to the GoI. The GoI has filed an affidavit before the CONSOLIDATED FINANCIAL STATEMENTS
Hon’ble Delhi High Court stating that Inter Ministerial
The audited consolidated financial statements incorporating
Committee (IMC) has decided to recommend supply
the duly audited financial statements of the subsidiaries,
of pooled gas to the Company, subject to approval
and prepared in compliance with the Companies Act,
of the Competent Authority. GoI has further filed an
2013, applicable Accounting Standards and SEBI (Listing
application in the Hon’ble Delhi High Court seeking
Obligations and Disclosure Requirements) Regulations, 2015
dismissal of the matter. The Company is contesting the
form part of this Annual Report.
said application since the Competent Authority has not
decided based on the recommendation of the said IMC A separate statement containing the salient features
and the application so filed is pre-mature. The Hon’ble of Company’s subsidiaries, associates and joint venture
Delhi High asked GoI to bring the IMC decision/ report subsidiary in the prescribed form AOC-1 is annexed separately
on record, if not filed then the matter will be proceeded and forms part of this Annual Report.
further without the report. The hearing in the Delhi High
DIRECTORS’ RESPONSIBILITY STATEMENT
Court is now posted in the month of July, 2021.
To the best of their knowledge and based on the guidance
2. The Department of Fertilisers (DoF), Ministry of
and insights from the Auditors and pursuant to the provisions
Chemicals and Fertilisers, had withheld subsidy due to
of sub-section (5) of Section 134 of the Companies Act, 2013,
the Company in accordance with applicable Nutrient
your Directors confirm that:
Based Subsidy (NBS) Scheme of the Government of
India (GoI), alleging undue gain arising to the Company i) in the preparation of annual accounts, the applicable
on account of supply of cheap domestic gas. The accounting standards have been followed along with
Company had filed a Writ Petition in the Hon’ble proper explanation relating to material departures;
High Court of Judicature at Bombay, challenging the
withholding of subsidy. Based on the directive of the ii) the accounting policies have been selected and applied
High Court, the GoI released the subsidy amounting consistently and made judgments and estimates that

are reasonable and prudent so as to give a true and fair BHAGWAT LLP (PGB) as Statutory Auditors of the Company
view of the state of affairs of the Company at the end of to fill the casual vacancy caused due to the resignation M/s.
the Financial Year on 31st March, 2021 and of the profit B S R & Associates LLP, as Statutory Auditors of the Company,
and loss of the Company for that period; till the conclusion of 41st Annual General Meeting of the
company to be held in the calendar year 2021.
iii) proper and sufficient care have been taken for
maintenance of adequate accounting records Considering the varied experience that PGB has gained in the
in accordance with the provisions of this Act for field of audit, assurance and management services over the
safeguarding the assets of the Company and for past 80 years, your Board is of the view that continuance of
preventing and detecting fraud and other irregularities; M/s. P G BHAGWAT LLP, Chartered Accountants as Statutory
Auditors of the Company will be beneficial to the Company,
iv) the annual accounts are prepared on a going concern
shareholders and other stakeholders as well, therefore
basis;
recommends their appointment as the Auditors of the
v) internal financial controls, to be followed by the Company for further period of 5 years from the conclusion of
Company are duly laid down and these controls are the ensuing 41st Annual General Meeting till the conclusion of
adequate and were operating effectively; and 46th Annual General meeting to be held in the year 2026.
vi) systems to ensure compliance with the provisions of all M/s. P G BHAGWAT LLP, Chartered Accountants, have
applicable laws were in place and were adequate and conveyed their consent to be appointed as the Statutory
operating effectively. Auditors of the Company along with the requisite confirmation
that, their appointment, if made by the shareholders, would be
DETAILS IN RESPECT OF FRAUDS REPORTED BY AUDITORS within the limits prescribed under the Companies Act, 2013.
UNDER SECTION 143(12)
The Auditors’ Report to the Shareholders for the year under
During the year under review, there were no frauds reported review does not contain any qualification, reservation or
by the auditors to the Audit Committee or the Board under adverse remark or disclaimer.
Section 143(12) of the Companies Act, 2013.
SECRETARIAL AUDITORS & SECRETARIAL STANDARDS
STATUTORY AUDITORS AND THEIR REPORT
The Secretarial Auditors, M/s. SVD & Associates, Practising
M/s. B S R & Associates LLP, who were appointed as the Company Secretaries, has issued Secretarial Audit Report
Statutory Auditors of the Company for a period of five (Form MR-3) for the Financial Year 2020-21 pursuant to
years from the conclusion of Thirty-Seventh Annual General Section 204 of the Companies Act, 2013 and pursuant to
Meeting held on 21st September, 2017 until the conclusion of Regulation 24A of the SEBI (Listing Obligations and Disclosure
the Forty Second Annual General Meeting, have resigned as Requirements) Regulations, 2015 which is annexed to
the Statutory Auditors of the Company w.e.f. 3rd November, Directors’ Report (Refer Annexure-1).
2020 due to commercial reasons. The Board, at its meeting
held on 3rd November, 2020, on the recommendation of the In respect of observations made out in the Secretarial Audit
Audit Committee, accepted the resignation tendered by the Report, it is informed, as under:
Statutory Auditors.
Appointment of Women Independent Director:
Further, the Audit Committee and the Board, at their
The appointment of women Independent Director was
respective meetings held in November 2020 placed on record
required to be made on or before April 1, 2020 as per regulation
their appreciation to M/s. B S R & Associates LLP for their
17 sub-regulation 1 clause (a) of LODR, but was made w.e.f.
contribution to the Company with their audit processes and
May 14, 2020. The Company had already started the process
standards of auditing.
of identifying the Woman candidate and accordingly, the
Appointment of M/s. P G BHAGWAT LLP Meeting of Nomination & Remuneration Committee and
the Meeting of Board of Directors was scheduled in the
Pursuant to the provision of Section 139 of the Companies last week of March 2020 to inter-alia, discuss and decide
Act, 2013, the Company was required to fill the casual the appointment of Woman Independent Director. However,
vacancy caused by the resignation of M/s. B S R & Associates due to nationwide Lockdown in March 2020, the meeting of
LLP as Statutory Auditors of the Company. could not be convened and the appointment of the Woman
Accordingly, the Shareholders of the Company, on the Independent Director could not be effected before 1st April,
recommendation of the Board of Directors and Audit 2020. However, the Company has appointed the Independent
Committee, have approved the appointment of M/s. P G Woman Director w.e.f. May 14, 2020.

Delay in redressal of Investors’ grievance: Further, M/s Y. R. Doshi & Company, Cost Accountants will
submit the cost audit report along with annexure for the
BSE Limited had levied a fine of ` 2,360 inclusive of GST on
Financial Year 2020-21 to the Central Government (Ministry
the Company as per SEBI circular nos. SEBI/HO/CFD/CMD/
of Corporate Affairs) in the prescribed form within specified
CIR/P/2020/12 dated 22 January, 2020 and SEBI/HO/OIAE/
time and at the same time forward a copy of such report to
IGRD/CIR/P/2020/152 dated August 13, 2020 for failure in
your Company.
ensuring adequate steps for expeditious redressal of investor
complaints for the period of February 11, 2021 to March 10, The Cost Audit Report for the Financial Year ended 31st
2021. March, 2020 was duly filed with the Central Government
(Ministry of Corporate Affairs) on 30th August, 2020.
The investor compliant could not be addressed within time
since the details of the complaint were not available on the The provisions relating to maintenance of cost records as
BSE Portal. The said compliant was, however, made available specified by the Central Government under sub-section (1)
to the Company on February 3, 2021 and the complaint of Section 148 of the Companies Act, 2013 is required to be
was was settled on February 24, 2021 i.e. within 21 days maintained by the Company and accordingly, such accounts
from the date of receipt of complaint notwithstanding the and records were made and maintained.
pandemic period during which there was non - availability
INTERNAL AUDITOR
of Signatories authorised to give instruction to the Bank
for making payments. In view of above, the company has The Board has appointed Ernst & Young LLP (EY) as an
submitted representation to BSE Limited for waiver of the Internal Auditor in compliance with Section 138 of the
fine levied upon it. In the interim, pending waiver of fine by Companies Act, 2013 and rules made thereunder since the
BSE, the same has been paid UNDER PROTEST to avoid the Financial Year 2016-17.
consequences of non-payment.
Further, the Board, on the recommendation of the Audit
Pursuant to Regulation 24A of the SEBI (Listing Obligations Committee, has renewed the contract for appointment of EY
and Disclosure Requirements) Regulations, 2015, M/s. Jog as an Internal Auditor of the Company for the Financial Year
Limaye & Associates, Practising Company Secretary, the 2021-22.
Secretarial Auditor of Smartchem Technologies Limited
and Performance Chemiserve Limited, material unlisted PARTICULARS OF LOANS, INVESTMENTS AND GUARANTEES
subsidiaries, has issued Secretarial Audit Report (Form MR-3) Details of investments made, loans advanced and guarantees
for the Financial Year 2020-21. The said reports thereon are given by the Company are given in the notes to the Financial
annexed as Annexure 8 and Annexure 9 to the Board’s Report. Statements.
The Company has in place proper systems to ensure RELATED PARTY TRANSACTIONS
compliance with the provisions of the applicable secretarial
standards issued by The Institute of Company Secretaries The Company has entered into contract / arrangements with
of India and such systems are adequate and operating the related parties in the ordinary course of business and at
effectively. arm’s length basis. Thus, provisions of Section 188(1) of the
Companies Act, 2013 are not applicable.
COST AUDITORS
CORPORATE GOVERNANCE
M/s. Y. R. Doshi & Co. have been the Cost Auditors of the
Company since the inception of the Company. While the Pursuant to provisions of SEBI (Listing Obligations and
Company did not have any objection / deficiency observed in Disclosure Requirements) Regulations, 2015, a separate
the Cost Audit conducted by the said auditor, the management, section titled ‘Corporate Governance’ is attached to this
as a measure of good governance and practice, deemed Annual Report.
expedient to rotate the existing cost auditors and hence
SUBSIDIARIES, ASSOCIATES AND JOINT VENTURE
proposed appointment of new Cost Auditor in place of M/s.
COMPANIES
Y.R. Doshi & Co.
Report on the performance and financial position of
Your Directors, at the meeting held on 28th May, 2021 based on
subsidiaries, associates and joint venture company in
the recommendation of the Audit Committee, have appointed specified format is annexed to Board’s Report (Refer
M/s Harshad S. Deshpande & Associates, Cost Accountants, Annexure-2).
as the Cost Auditors for the Financial Year 2021-22 at a
remuneration of ` 2,25,000 /- (Rupees Two Lakhs Twenty Five AWARDS AND ACCOLADES
Thousand only) plus GST as applicable and reimbursement
Please refer to section “Awards and Accolades” in this Annual
of travel and out-of-pocket expenses, which shall be subject
Report for details of the awards received by the Company
to the approval of the shareholders at the ensuing Annual
during the year under review.
General Meeting.

NOMINATION AND REMUNERATION COMMITTEE The details of composition of Corporate Social Responsibility
Committee and other details are provided in the Corporate
The Board of Directors of the Company has constituted
Governance Report.
Nomination and Remuneration Committee and also approved
the Nomination and Remuneration Policy which inter- AUDIT COMMITTEE COMPOSITION
alia contains appointment criteria, qualifications, positive
The details of composition of Audit Committee and other
attributes and independence of Directors, removal, retirement
details are provided in the Corporate Governance Report.
and remuneration of Directors, Key Managerial Personnel
(KMP) and Senior Management Personnel of the Company. ANNUAL RETURN
There is no change in the Nomination and Remuneration In terms of Section 92(3) of the Companies Act, 2013 and
Policy during the year under review. However, the Board of Rule 12 of the Companies (Management and Administration)
Directors of the Company, on the recommendation of the Rules, 2014, the Annual Return of the Company is available
Nomination and Remuneration Committee, revised the on the website of the Company at the link: https://www.dfpcl.
Nomination and Remuneration Policy of the Company, at their com/investors/annual-return/.
meeting held on 28th May, 2021. The modified Nomination
PERFORMANCE EVALUATION OF CHAIRMAN,
and Remuneration Policy is enclosed as annexure 3 and is
DIRECTORS, BOARD AND COMMITTEES
also available on the website of the Company at https://www.
dfpcl.com/wp-content/uploads/2021/07/Nomination-and- Information on the manner in which formal annual evaluation
Remuneration-Policy_amended-on-28th-May-2021.pdf. has been made by the Board of its own performance and
that of its Committees and individual directors is given in the
RISK MANAGEMENT COMMITTEE
Corporate Governance Report.
The Board of Directors of the Company has constituted a
INDEPENDENCE OF DIRECTORS
Risk Management Committee to assess risks in the
operations of business units of the Company, to mitigate and All the Independent Directors of the Company have given
minimize risks assessed in the operations of business units, declaration that they meet the criteria of independence as
periodic monitoring of risks in the operations of business provided in Sub-Section (6) of Section 149 of the Companies
units, to look after cyber security and other matters delegated Act, 2013 and SEBI (Listing Obligations and Disclosure
to the Committee by Board of Directors of the Company from Requirements) Regulations, 2015 and they are not aware
time to time. of any circumstances or situation, which exist or may be
reasonably anticipated, that could impair or impact their
Information on the development and implementation of Risk
ability to discharge their duties with an objective independent
Management Policy of the Company including identification
judgment and without any external influence.
therein of elements of risk which, in the opinion of the Board
may threaten the existence of the Company is given in the The Board of Directors have taken on record the declaration
Corporate Governance Report. and confirmation received from the Independent Directors
and verified the veracity of such disclosures.
CORPORATE SOCIAL RESPONSIBILITY COMMITTEE
Your Company is engaged in concerted CSR initiatives FAMILIARISATION PROGRAMME FOR INDEPENDENT
through Ishanya Foundation, as Implementing Agency for CSR DIRECTORS
activities. The CSR initiatives of your Company are focused The Company follows the practice of conducting
and the entire approach has become more structured. familiarisation programme of the independent directors as
The details of the initiatives taken by the Company on CSR detailed in the Corporate Governance Report which forms
during the year as per the Companies (Corporate Social part of the Annual Report.
Responsibility Policy) Rules, 2014 is given in Annexure
WHISTLE BLOWER POLICY
forming part of this report (Refer Annexure-4).
The Company believes in the conduct of the affairs of its
The Ministry of Corporate Affairs, vide its notification dated
constituents in a fair and transparent manner by adopting the
22nd January, 2021, had brought certain amendments to
the CSR Provisions, which inter-alia required the Company to highest standards of professionalism, honesty, integrity and
amend its CSR Policy. ethical conduct. The Company has a Whistle Blower Policy
under which the employees are free to report violations of the
In view of the above, the Board of Directors, at its meeting applicable laws and regulations and the Code of Conduct.
held on 25th March, 2021, on the recommendation of the
CSR Committee, had adopted a revised CSR Policy, which is Further, as per the provisions of Regulation 18 (3) of the
available on the website of the Company at https://www.dfpcl. SEBI (Listing Obligations and Disclosure Requirements)
com/wp-content/uploads/2021/05/CSR-Policy_DFPCL.pdf Regulation, 2015 (Listing Regulations) read with Part C of

Schedule II to Listing Regulations, the Audit Committee 2013 read with Rule 14, the internal committee constituted
at its meeting held on 26th March, 2021 has reviewed the under the said act has confirmed that no complaint / case
functioning of whistle blower mechanism of the Company has been filed / pending with the Company during the year.
and found the same satisfactory. The said policy has been uploaded on the internal portal of
the Company for information of all employees.
A copy of the Whistle Blower Policy is available on the website
of the Company at the following weblink: https://www.dfpcl. The Company has complied with the provisions relating to
com/ wp-content/uploads/2018/12/WhistleBlowerPolicy.pdf the constitution of Internal Complaints Committee under the
Sexual Harassment of Women at Work Place (Prevention,
ADEQUACY OF INTERNAL FINANCIAL CONTROLS Prohibition and Redressal) Act, 2013.
Your Company’s internal financial control systems are CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION
commensurate with the nature, size and complexity of the AND FOREIGN EXCHANGE EARNINGS AND OUTGO
businesses and operations. These are periodically tested and
certified by Statutory as well as Internal Auditors. Significant As required by the Companies (Accounts) Rules, 2014, the
audit observations and the follow up actions are reported to relevant data pertaining to conservation of energy, technology
the Audit Committee. absorption and foreign exchange earnings and outgo are
annexed to Board’s Report (Refer Annexure - 5).
MATERIAL CHANGES AND COMMITMENTS
BUSINESS RESPONSIBILITY REPORT
There have been no material changes and commitments,
affecting the financial position of the Company, which Regulation 34(2) of the SEBI (Listing Obligations and
have occurred between the end of the financial year of the Disclosure Requirements) Regulations, 2015 as amended,
Company and the date of this Report. inter alia, provides that the annual report of the top 1,000
listed entities based on market capitalisation (calculated
PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURES as on 31st March of every financial year), shall include a
Business Responsibility Report.
Pursuant to the provisions of Section 136 (1) of the Act
and as advised, the statement containing particulars of As the Company is one of the top 1,000 listed entities, the
employees as required under Section 197 (12) of the Act read Company has presented its Business Responsibility Report
with Rule 5 (1) and 5 (2) of the Companies (Appointment and for the financial year 2020-21, which is part of this Annual
Remuneration of Managerial Personnel) Rules, 2014, will be Report.
available for inspection. Members interested in obtaining
As a green initiative, the BR Report has been hosted on the
a copy of the same may write to the Company Secretary
Company’s website i.e. www.dfpcl.com
at investorgrievance@dfpcl.com and the same will be
furnished on request. Hence, the Annual Report is being sent INITIATIVES FOR SOCIETY AND EMPLOYEE SAFETY DURING
to all the Members of the Company excluding the aforesaid COVID-19 PANDEMIC
information.
Your company, as a responsible Corporate citizen is
COMPANIES WHICH HAVE BECOME OR CEASED TO BE committed to serving the society it operates in and in view of
THE SUBSIDIARIES, JOINT VENTURES OR ASSOCIATE its commitment to serve the society and to bolster the medical
COMPANIES DURING THE YEAR infrastructure and address the issue of scarcity of oxygen
due to COVID 19 pandemic has provided oxygen generators,
During the year under review, there were no such instances.
oxygen concentrators, ambulance, large quantities of
FIXED DEPOSITS sanitizers and masks besides contributing to Chief Ministers’
Relief fund by way of employees and company’s contribution
Your Company has not accepted any deposits, covered under
and has also provided food grains to migrant workers during
Chapter V of the Companies Act, 2013 and hence no details
pandemic.
pursuant to Rule 8 (5) (v) and 8 (5) (vi) of the Companies
(Accounts) Rules, 2014 are reported. Further, your Company has remained equally focused to
address the prevention and protection measures for Covid
DISCLOSURE AS PER SEXUAL HARASSMENT OF WOMEN
wirh 5 key focus areas viz Employees, Contractors and
AT WORKPLACE (PREVENTION, PROHIBITION AND
Service Providers, Visitors, High exposure Operational Zone
REDRESSAL) ACT, 2013
– Security, Medical centre, and various facilities.
Pursuant to Section 22 of the Sexual Harassment of Women
From encouraging mental wellness to ensuring that
at Workplace (Prevention, Prohibition and Redressal) Act,
employees are financially secure during the outbreak, to

continuous awareness sessions on covid-19, precautions, dos ACKNOWLEDGEMENT
& don’ts, through posters bringing visual display awareness
Your Directors wish to place on record their sincere
on Covid has helped considerably. Wearing of face mask,
appreciation to the Company’s bankers, customers, vendors,
social distancing, thermal scanning, use of hand sanitizers
investors and all other stakeholders for their continued
at various places, body disinfection, are some of the major
support during the year. Your Directors are also pleased to
actions being taken. Also, special sick leave is extended to
record their appreciation for the dedication and committed
employees who are impacted by Covid. Support is provided
contribution made by employees at all levels who through
to employees and their families in case of Hospital admission
their competence and hard work have enabled your Company
needed and all other related support. Periodical reviews are
to achieve good performance amidst challenging times and
taking place at site level and company level for fine tuning the
look forward to their support in the future as well.
entire COVID-19 risk mitigation approach dynamically.
For and on behalf of the Board
Place: Pune S. C. MEHTA

Dated: 28th May, 2021 Chairman and Managing Director

ANNEXURE 1
Form No. MR-3
SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED MARCH 31, 2021
Pursuant to section 204(1) of the Companies Act, 2013,
Rule 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014
and
Regulation 24A of SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015
To,
The Members,
Deepak Fertilisers And Petrochemicals Corporation Limited,
Sai Hira, Survey No. 93,
Mundhawa, Pune -411036
We have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to good
corporate practices by Deepak Fertilisers And Petrochemicals Corporation Limited (hereinafter called “the Company”).
Secretarial Audit was conducted in a manner that provided us a reasonable basis for evaluating the corporate conducts/
statutory compliances and expressing our opinion thereon.
Based on our verification of the Company’s books, papers, minute books, forms and returns filed and other records maintained
by the company and also the information provided by the Company, its officers, agents and authorized representatives during
the conduct of secretarial audit, we hereby report that in our opinion, the Company has, during the audit period covering the
financial year ended on March 31, 2021 complied with the statutory provisions listed hereunder and also that the Company has
proper board-processes and compliance-mechanism in place to the extent, in the manner and subject to the reporting made
hereinafter:
We have examined the books, papers, minute books, forms and returns filed and other records maintained by the Company for
the financial year ended on March 31, 2021 according to the provisions of:
(i) The Companies Act, 2013, as amended from time to time (the Act) and the rules made thereunder;
(ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the rules made there under;
(iii) The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder;
(iv) Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of Foreign Direct
Investment, Overseas Direct Investment and External Commercial Borrowings;
(v) The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 (‘SEBI
Act’):-
a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011;
b) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015;
c) Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements), Regulations, 2018 (SEBI
ICDR);
d) The Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 (Not applicable to
the company during the Audit Period);
e) The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008 (Not applicable
to the company during the Audit Period);
f) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993
regarding the Companies Act and dealing with client;

g) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009 (Not applicable to the
Company during the Audit Period); and
h) The Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018 (Not applicable to the
Company during the Audit Period);
vi) We further report that, following are the other laws, as informed and certified by the Management of the Company, which
are specifically applicable to the Company based on their sector / industry :
a) Petroleum Act, 1934 and Rules, 2002;
b) Foreign Trade (Development & Regulation) Act, 1992;
c) The Competition Act, 2002;
d) Explosive Substance Act, 1908;
e) Inflammable Substance Act, 1952;
f) The Manufacturing, Storage and Import of Hazardous Chemicals Rules, 1989;
g) Hazardous Waste (Management, Handling and Transboundary Movement) Rules, 2008;
h) Ammonium Nitrate Rules, 2012;
i) Petroleum and Minerals Pipelines (Acquisition of Right Users in Land) Act, 1962.
We have also examined compliance with the applicable clauses and regulations of the following:
(i) Secretarial Standards issued by ‘The Institute of Company Secretaries of India’; and
(ii) The Listing Agreement entered into by the Company with Stock Exchange(s) pursuant to SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015 (LODR).
During the year under review, the company has complied with the provisions of the Act, rules, regulations, guidelines, standards
etc. mentioned above subject to the following observation-
The Bombay Stock Exchange has imposed fine on the company for non-redressal of investors complaints within time. We
are informed that the details of the Complaint were not available to the Company on the BSE Portal. The said were however
made available to the Company on February 3, 2021 which was settled on February 24, 2021 i.e. within 21 days from the date
of receipt of complaint notwithstanding the pandemic period during which there was non-availability of Signatories authorised
to give instruction to the Bank for making payments. In view of above, the company has submitted representation to Bombay
Stock Exchange for waiver of the fine levied upon it. In the interim, pending waiver of fine by BSE, the same has been paid
UNDER PROTEST to avoid the consequences of non-payment.
We further report that,
The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive Directors
and Independent Directors. However, we observe that the appointment of women Independent Director that was required to be
made w.e.f. April 1, 2020 as per regulation 17 sub-regulation 1 clause (a) of LODR, was made w.e.f. May 14, 2020. The Company
had already started the process of identifying the Woman candidate. The Meeting of Nomination & Remuneration Committee
and the Meeting of Board of Directors was scheduled in the last week of March 2020 to inter-alia, discuss and decide the
appointment of Woman Independent Director. However, due to nationwide Lockdown in March 2020, the meeting could not
be convened and the appointment of the Woman Independent Director could not be effected. However, the Company has
appointed the Independent Woman Director w.e.f. May 14, 2020.The changes in the composition of the Board of Directors that
took place during the period under review were carried out in compliance with the provisions of the Act.
Adequate notice is given to all directors to schedule the Board Meetings, agenda and detailed notes on agenda were sent at
least seven days in advance, and a system exists for seeking and obtaining further Information and clarifications on the agenda
items before the meeting and for meaningful participation at the meeting.

All decisions at Board Meetings and Committee Meetings are carried out unanimously as recorded in the minutes of the
meetings of the Board of Directors or Committees of the Board, as the case may be.
We further report that there are adequate systems and processes in the company commensurate with the size and operations
of the company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines.
We further report that during the audit period:
1. As disclosed in the last year’s report, effective May 15, 2014, domestic gas supply to the Company was arbitrarily stopped
by the Ministry of Petroleum and Natural Gas. The Company successfully challenged the same before the Hon’ble Delhi
High Court, which, by its Orders dated July 7, 2015 and October 19, 2015 directed the Government of India (GoI) to restore
the supply of gas. Review petition filed by the GoI, challenging the said Orders was rejected by the said Court. Further,
the GoI also filed the Special Leave Petition (SLP) before the Hon’ble Supreme Court of India against the Order of Hon’ble
Delhi High Court, which was also disposed without granting any relief to the GoI. The GoI has filed an affidavit before
the Hon’ble Delhi High Court stating that Inter Ministerial Committee (IMC) has decided to recommend supply of pooled
gas to the Company, subject to approval of the Competent Authority. GoI has further filed an application in the Hon’ble
Delhi High Court seeking dismissal of the matter. The Company is contesting the said application since the Competent
Authority has not decided based on the recommendation of the said IMC and the application so filed is pre-mature.
The Hon’ble Delhi High Court asked GoI to bring the IMC decision/ report on record, if not filed then the matter will be
proceeded further without the report. The hearing in the Delhi High Court is now posted in the month of July, 2021.
2. The Company had undergone re-structuring exercise wherein the TAN and Fertiliser undertakings were transferred to
its wholly owned subsidiary, Smartchem Technologies Limited and the order from NCLT was received in April, 2017 and
filed with Registrar Of Companies, Pune on May 2, 2017. Therefore, the Audit of Accounts consequent to the demerger
as aforesaid had got delayed. The Company had sought necessary permissions from the Stock Exchanges to this effect
and the Accounts were approved only on June 30 , 2017 by the Board. The Stock Exchanges in the month of June 2017,
levied a fine of ` 22,60,768 which was duly paid by the Company under protest. The Company had made a representation
of the matter before Securities and Exchange Board of India (SEBI). SEBI vide its order dated August 1, 2018 had rejected
the Company’s application to waive the fine imposed by the Stock exchanges. The Company has preferred an appeal with
Securities Appellate Tribunal (SAT) on October 17, 2019 against the aforesaid SEBI’s order and at present the matter is
pending with SAT.
3. The Company had issued 64,76,893 warrants to Robust Marketing Service Private Limited (RMSPL), a promoter group
company, on October 16, 2018. On October 1, 2019, the Company had allotted 10,79,482 shares to RMSPL upon conversion
of 10,79,482 warrants out of a total of 64,76,893 warrants held by RMSPL as per the terms of issue of the said warrants.
RMSPL had to pay the balance sum of `125 crore at any time on or before April 15 , 2020, as per SEBI ICDR regulations
(being 18 months from the date of allotment of warrants), for conversion of the entire warrants into equity shares or part
payments for prorata allotment of equity shares as done earlier. On request from the Company, SEBI had granted time of
one more month i.e till May 15 2020 in order to subscribe to equity shares by conversion of warrants to RMSPL. Since, the
Company did not receive the balance subscription amount of `125 crore from RMSPL before the extended due date i.e.
May 15 2020, the balance lying in the Company paid as Upfront Warrant Subscription Amount towards 25% of the issue
price of the warrants and still not converted by RMSPL into equity amounting to ` 41.66 Crore, stands forfeited in terms
of Regulation 169 (3) of the SEBI ICDR.
4. During the year the company had Commercial Discussion between FCCB Subscriber and the Board has approved certain
modifications in the terms of the FCCB Subscription Agreement inter alia, change in conversion price from ` 250 per share
to ` 195 per share and extension of tenor of both Tranches of FCCBs by Twelve (12) months. The Company issued second
tranche of 30 FCCBs on a private placement basis to IFC on September 30, 2020. The Company received a sum of US$ 15
million from IFC as an amount of subscription to the second tranche of FCCBs on September 30, 2020.
5. The Department of Fertilisers (DoF), Ministry of Chemicals and Fertilisers, had withheld subsidy, due to the Group in
accordance with applicable Nutrient Based Subsidy (NBS) scheme of Government of India (GOI), alleging undue gain
arising to the Group on account of supply of “cheap” domestic gas. Subsequently, DoF agreed to release subsidy against
Bank Guarantee of ` 31,052 Lakhs pending final decision, with regard to undue gain. Ministry of Chemical and Fertilisers

has issued an official memorandum on May 15, 2020, stating that the issue of recovery of undue profit from P&K
fertilisers companies has been settled finally in DoF and accordingly nothing is recoverable presently towards undue gain.
Subsequently, STL filed the writ petition in the Hon’ble Delhi High Court asking for release of Bank Guarantee. Hon’ble
Delhi High Court has accepted the petition of STL on December 3, 2020, and directed to release the Bank Guarantee,
which was pronounced in the open court.
6. The Board of Directors at their meeting held on 25th May, 2020 have considered and approved raising of funds by way
of issue of equity shares in the ratio of 3 Equity Shares for every 20 Equity shares held on the Record Date i.e. Thursday
September 17, 2020, to the existing equity shareholders of the Company on rights basis (Rights Issue) for an issue
size of upto ` 180 crore. The promoter and promoter group of the Company have subscribed to the full extent of their
aggregate rights entitlement. The Rights Issue Committee, at its meeting held on October 20, 2020, inter alia, considered
and approved the allotment of 1,33,92,663 Equity Shares at a price of ` 133 per Equity Share (including a premium of `
123 per Equity Share) to its existing shareholders as on the record date fixed for the purpose.
7. The Company has conducted postal ballot during the year for following items:
1. Appointment of P G BHAGWAT LLP, Chartered Accountants (FRN:101118W/ W100682) as the Statutory Auditors of
the Company to fill the casual vacancy caused by resignation of B S R & Associates LLP, Chartered Accountants.
2. Approval relating to payment of remuneration to Shri S. C. Mehta, Chairman and Managing Director of the Company.
For SVD & Associates

Company Secretaries
Sridhar Mudaliar
Partner
FCS No:6156
CP No:2664
UDIN: F006156C000370982
Place: Pune
Date: May 28, 2021
Note: This report is to be read with letter of even date by the Secretarial Auditors, which is annexed as Annexure A and forms
an integral part of this report.

‘ANNEXURE A’
To,
The Members
Deepak Fertilisers And Petrochemicals Corporation Limited,
Mundhawa, Pune -411036
Our Secretarial Audit Report of even date is to be read along with this letter.
Management’s Responsibility
1. It is the responsibility of the management of the Company to maintain secretarial records, devise proper systems to
ensure compliance with the provisions of all applicable laws and regulations and to ensure that the systems are adequate
and operate effectively.
Auditor’s Responsibility
2. Our responsibility is to express an opinion on these secretarial records, standards and procedures followed by the
Company with respect to secretarial compliances.
3. We believe that audit evidence and information obtained from the Company’s management is adequate and appropriate
for us to provide a basis for our opinion.
4. We have relied on the documents and evidences provided by electronic mode, in view of prevailing pandemic situation of
Covid-19.
5. Wherever required, we have obtained the management’s representation about the compliance of laws, rules and regulations
and happening of events, etc.
Disclaimer
6. The Secretarial Audit Report is neither an assurance as to the future viability of the Company nor of the efficacy or
effectiveness with which the management has conducted the affairs of the Company.
7. We have not verified the correctness and appropriateness of financial records and books of accounts of the Company.

Company Secretaries
Sridhar Mudaliar
Partner
FCS No:6156
CP No:2664
UDIN: F006156C000370982
Place: Pune
Date: May 28, 2021

ANNEXURE 2
FORM AOC-1
[Pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of the Companies (Accounts) Rules, 2014]
Statement containing salient features of the financial statement of subsidiaries / associate companies / joint ventures
Part-A: Subsidiaries
(` in lakhs )
1 2 3 4 5 6 7 8 9 10 11
Sl. Name of Subsidiary Smartchem Platinum Australian Performance SCM Deepak Deepak Complete Mahadhan Ishanya Yerrowda
No. Technologies Blasting Mining Chemiserve Fertichem Mining Nitrochem Mining Farm Brand Investments
Limited #
Services Pty. Explosives Limited$1 Limited# Services Pty Limited# Solutions Technologies Services Limited#
Limited#$1 Pty. Limited Private Private Limted$1 Limited
#$2
Limited# Limited
(earlier
known
as Runge
Pincock
Minarco
India Private
Limited)# $3
1 Reporting period for the 01/04/2020 01/04/2020 01/04/2020 01/04/2020 01/04/2020 01/04/2020 01/04/2020 01/04/2020 01/04/2020 01/04/2020 01/04/2020
subsidiary concerned, if to to to to to to to to to to to
different from the holding 31/03/2021 31/03/2021 31/03/2021 31/03/2021 31/03/2021 31/03/2021 31/03/2021 31/03/2021 31/03/2021 31/03/2021 31/03/2021
company’s reporting period
2 Reporting currency and Indian AUD AUD Indian Indian Indian AUD Indian Indian Indian Indian
Exchange rate as on the last Rupees 1 AUD = 1 AUD = Rupees Rupees Rupees 1 AUD = Rupees Rupees Rupees Rupees
date of the relevant Financial 55.61 55.61 55.61
year in the case of foreign
subsidiaries.
3 Share Capital 1,705 4,806 - 10 5 1 81 29 1 410 24
4 Reserves & Surplus 282,283 2,591 104 69,969 -92 -50 -55 -29 4 -157 3,718
5 Total Assets 550,743 19,636 3,023 166,401 46 1 26 - 566 412 3,755
6 Total Liabilities 266,755 12,239 2,919 96,422 133 50 - 0 561 159 13
7 Investments 70,823 - - 487 - - - - - - 2
8 Turnover 390,825 34,710 1,012 313 - - - - 2,503 344 -
9 Profit / (Loss) before taxation 24,459 1,599 114 412 -65 -18 - -26 160 -149 -76
10 Provision for taxation 4,418 26 10 111 - - - - 42 -38 8
11 Profit / (Loss) after taxation 20,041 1,573 104 301 -65 -18 - -26 118 -111 -84
12 Proposed Dividend and - - - - - - - - - - -

Corporate Dividend Tax
13 % of shareholding 100.00% 65.00% 65.00% 88.91% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 85.00%
# Standalone Figures
$1 Subsidiary of Smartchem Technologies Limited
$2 Subsidiary of Platinum Blasting Services Pty. Limited
$3 Subsidiary of Deepak Mining Services Private Limited
+ Share capital of Australian Mining Explosives Pty. Limited consists of 1 ordinary share of $1 which is held by Platinum Blasting Services Pty. Limited.
1. Smartchem Technologies Limited (STL)
The Company, is a wholly owned subsidiary of your Company, is in the business of manufacturing Technical Grade
Ammonium Nitrate and manufacturer and trading of fertilisers. The Company achieved a turnover of ` 3,908.25 Crore
(excluding other income) and profit before tax of ` 244. 59 Crore.

2. Platinum Blasting Services Pty. Limited, Australia
Platinum Blasting Services Pty. Limited is a joint venture (JV) between your Company’s wholly owned subsidiary
Smartchem Technologies Ltd. (STL) with local Australian partners having vast experience in providing value-added
blasting services and operational expertise to mining and explosives industries in Australia. This is part of your Company’s
forward integration initiative. STL supplies Technical Ammonium Nitrate to the JV.
3. Australian Mining Explosives Pty. Limited
Australian Mining Explosives Pty. Limited (AME), an Australian company, is a wholly owned subsidiary of Platinum Blasting
Services Pty. Ltd. (a subsidiary of Smartchem Technologies Limited, which is a wholly owned subsidiary of the Company)
and is engaged in the business of storage and handling of Technical Ammonium Nitrate.
4. Performance Chemiserve Limited (PCL)
Performance Chemiserve Limited is a subsidiary Company of Smartchem Technologies Limited (STL). STL is holding
88.91% of the Equity share capital of PCL. PCL is involved in Chemicals drum filling activities. Further, PCL is setting up
Ammonia Project of 1,500 MTPD Capacity.
5. SCM Fertichem Limited
The Company, is a wholly owned subsidiary of your Company and is in business of Manufacturing and Trading of Fertilisers,
Petroleum, and their products. Currently, the Company is engaged in the business of agriculture produce.
6. Deepak Mining Services Private Limited
Deepak Mining Services Private Limited is a wholly owned subsidiary of your Company and in the business of providing
consultancy to mining companies in India. It provides consultancy in the entire value chain of the mining business. With
the private coal mining segment opening up, it has great potential to mature into a high growth profitable business.
7. Complete Mining Solutions Private Limited (earlier known as Runge Pincock Minarco India Co. Ltd. (RPM)
Complete Mining Solutions Private Limited is subsidiary of Deepak Mining Services Private Limited and in the business of
mining consultancy and has good potential to capture the emerging opportunity in mining business.
8. Mahadhan Farm Technologies Private Limited
The Company, is in the business of manufacturing of water soluble NPKs grades namely 19:19:19, 20:20:20 and 13:40:13;
which is further marketed by STL.
9. Ishanya Brand Services Limited
The Company is in the business of brand management, online selling of products, giving furniture and home improvement
products on rent, developing an E-Commerce platform etc.
10. Yerrowda Investments Limited
Yerrowda Investments Limited (YIL), a subsidiary of your Company, is operating in real estate sector and has in its
possession immovable property in Pune. YIL is jointly controlled entity and DFPCL owns 85% of shares issued in addition
to economic and ownership interest in the immovable properties of YIL.
11. Deepak Nitrochem Pty Limited
Deepak Nitrochem Pty Limited, is an Australian company and is a wholly owned subsidiary of your company. This company
was incorporated for the purpose to capture the opportunity in respect of Mining activity and for synergy for our existing
TAN business. This Company has not done any business since inception.
Notes:
1. Names of subsidiaries which are yet to commence operations:
a. Deepak Nitrochem Pty Limited
b. Deepak Mining Services Private Limited.
2. Names of subsidiaries which have been liquidated or sold during the year: None

FORM AOC-1
[Pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of the Companies (Accounts) Rules, 2014]
Statement containing salient features of the financial statement of subsidiaries / associate companies / joint ventures
Part-B: Associates and Joint Ventures
(` in lakhs)
S. Particulars Details of Associates & Joint Venture
No.
1 Name of the Associates and Joint Ventures Ishanya Realty Corporation Limited#
2 Latest audited balance Sheet Date 01/04/2020 to 31/03/2021
3 No. Shares of Associate / Joint Ventures held by the Company 49,994.00
on the year end
Amount of Investment in Associate/ Joint Venture 5.00
Extend of Holding % 49.99%
4 Description of how there is significant influence DFPCL is holding more than threshold limit of 20%
5 Reason why the associate/ joint venture is not consolidated There is no transaction during the year and on basis of
materiality and capital base the amount is negligible.
6 Net-worth attributable to Shareholding as per latest audited 1
Balance Sheet
7 Profit/ (Loss) for the year 0
8 Considered in Consolidation -
9 Not Considered in Consolidation -0.24
# Standalone Figures
1. Ishanya Realty Corporation Limited
Your Company holds 49.99% stake in the Company. The Company is in the business of Sale of Engineering Components
& Allied Activities. The Company is exploring various business opportunities.
Notes:
1. Names of associates or joint ventures which are yet to commence operations: None
2. Names of associates or joint ventures which have been liquidated or sold during the year: None

ANNEXURE 3
Nomination and Remuneration Policy
1. Introduction
The Nomination and Remuneration Policy (“Policy”) of the Company has been formulated in accordance with the
provisions of Companies Act, 2013 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
(“LODR Regulations”) and sets out the criteria to pay remuneration to the Directors, Key Managerial Personnel (KMP) and
Senior Management Personnel of the Company.
2. Objective and Scope
The Key Objectives and scope of the Nomination & Remuneration Committee would be:
a) To formulate the criteria for determining qualifications, positive attributes and independence for appointment and
removal of a director.
b) To recommend to the Board a policy, relating to the remuneration for the directors, Key Managerial Personnel and
Senior Management Personnel which involves a balance between the fixed and incentive pay reflecting short-term
and long-term objectives appropriate to the working of the Company and its goals.
3. Definitions
‘Act’ means Companies Act, 2013 and rules thereunder.
“Board” means Board of Directors of the Company.
‘Committee’ means Nomination and Remuneration Committee of the Company as constituted or reconstituted by the
Board.
“Company”
means Deepak Fertilisers And Petrochemicals Corporation Limited (DFPCL).
“Independent Director” means a Director of the Company, not being in whole time employment and who is neither a
promoter nor belongs to the promoter group of the Company and who satisfies the criteria for independence as prescribed
under Section 149 of the Companies Act, 2013 and the Listing Agreement with the stock exchanges.
“Key Managerial Personnel” means Key managerial personnel as defined under the Companies Act, 2013 and includes:
i. Managing Director or Executive Director or Chief Executive Officer or Manager
ii. Whole-time Director;
iii. Company Secretary;
iv. Chief Financial Officer and
v. such other officer as may be prescribed.
“Policy” means Nomination and Remuneration Policy.
“Senior Management” means personnel of the Company who are members of its core management team (Internal Board)
excluding the Board of Directors.
4. Functions of Committee:
The Nomination and Remuneration Committee shall, inter-alia, perform the following functions:
a. Identify persons who are qualified to become Directors and who may be appointed in senior management in
accordance with the criteria laid down, recommend to the Board their appointment and removal.
b. To recommend to the Board a policy for following:
(i) Determining qualifications, positive attributes and independence of a director;

(ii) Remuneration for the Directors, Key Managerial Personnel and Senior Management;
(iii) Remuneration is reasonable and sufficient to attract, retain and motivate directors of the quality required to
run the company successfully;
(iv) Relationship of remuneration to performance is clear and meets appropriate performance benchmarks;
(v) Remuneration to directors, key managerial personnel and senior management involves a balance between
fixed and incentive pay reflecting short and long-term performance objectives appropriate to the working of
the company and its goals;
(vi) Performance evaluation of Independent Directors and the Board; and
(vii) Board diversity.
The Chairperson of the Nomination and Remuneration Committee or, in his absence, any other member of the committee
authorised by the Chairperson in this behalf shall attend the general meetings of the company.
Provided that Nomination and Remuneration Committee shall set up mechanism to carry out its functions and is further
authorized to delegate any / all of its powers to any of the Directors and / or officers of the Company, as deemed necessary for
proper and expeditious execution.
5. Membership
i. The Committee shall consist of a minimum 3 non-executive directors, majority of them being independent.
ii. The quorum shall be either two members or one third of the members of the Committee whichever is higher.
iii. Membership of the Committee shall be disclosed in the Annual Report.
iv. Term of the Committee shall be continued unless terminated by the Board of Directors.
6. Chairperson
i. Chairperson of the Committee shall be an Independent Director.
ii. Chairperson of the Company may be appointed as a member of the Committee but shall not be a Chairman of the
Committee.
iii. In the absence of the Chairperson, the members of the Committee present at the meeting shall choose one amongst
them to act as Chairperson.
7. Frequency of Meeting
The meeting of the Committee shall be held at such regular intervals as may be required.
8. Secretary
The Company Secretary of the Company shall act as Secretary of the Committee.
9. Minutes of Committee Meeting
Proceedings of all meetings shall be minuted and signed by the Chairman of the Committee at the subsequent meeting.
Minutes of the Committee meetings will be tabled at the subsequent Board and Committee meetings.
10. Policy for appointment and removal of Director Key Managerial Personnel (“KMP”) and Senior Management Personnel
(“SMP”)
(A) Appointment criteria and qualifications for Director, KMP and SMP
a) The Committee shall identify and ascertain the integrity, qualification, expertise, positive attributes and
experience of the person for appointment as Director and recommend to the Board his / her appointment.

b) The Committee shall devise a policy on Board diversity after reviewing the structure, size and composition
(including the skills, knowledge and experience) of the Board which will facilitate the Committee to recommend
on any proposed changes to the Board to complement the Company’s corporate strategy.
c) The President (HR) of the Company, under the overall superintendence and control of the Chairman & Managing
Director, will undertake the process of appointment of KMP and/or SMP based on the roles and responsibilities
of the position, the skill sets, attributes, seniority, experience and such other parameters required.
d) Upon finalization of appointment of a person for the position of KMP and/or SMP by the Chairman and
Managing Director and the acceptance of the offer by the candidate, the same shall be put up to the Committee
and the Board for its confirmation post which the letter of appointment shall be issued to KMP and/or SMP, as
the case may be.
(B) Removal
Due to reasons for any disqualification mentioned in the Act or under any other applicable Act, rules and regulations
thereunder, the Committee may recommend, to the Board with reasons recorded in writing, removal of a Director
and/or the KMP subject to the provisions and compliance of the applicable Acts, rules and regulations. However, the
decision to remove the SMP shall be taken by the Chairman & Managing Director.
(C) Retirement
The Director, KMP and SMP shall retire as per the applicable provisions of the Act and the prevailing policy of the
Company. While the Board will have the discretion to retain the Director, the discretion to retain KMP and/or SMP in
the same position/ remuneration or otherwise even after attaining the retirement age, for the benefit of the Company
shall vest with the Chairman & Managing Director of the Company.
Policy relating to the Remuneration
(A) General -for the Wholetime Director:
a) The remuneration / compensation / commission etc. shall be subject to the prior/post approval of the shareholders
of the Company, if required.
b) The remuneration and commission to be paid to the Whole-time Director shall be in accordance with the percentage/
slabs / conditions laid down in the provisions of the Act.
c) Term / Tenure of the Directors shall be as per company’s policy and subject to the provisions of the Act.
(B) Remuneration to Whole-time / Executive / Managing Director:
a) Fixed pay:
The Whole-time Director shall be eligible for a monthly remuneration as may be approved by the Board. The breakup
of the pay scale and quantum of perquisites including, employer’s contribution to P.F, pension scheme, medical
expenses, club fees etc. shall be decided and approved by the Board/the Person authorized by the Board and
approved by the shareholders, if required.
b) Commission:
Commission may be paid within the limits approved by shareholders.
c) Minimum Remuneration:
If, in any financial year, the Company has no profits or its profits are inadequate, the Company shall pay remuneration
to its Whole-time Director in accordance with the provisions of Schedule V of the Act.
d) Provisions for excess remuneration:
If any Whole-time Director draws or receives, directly or indirectly by way of remuneration any such sums in excess
of the limits prescribed under the Act or without approval required under section 197 of the Companies Act, 2013,
he / she shall refund such sums to the Company within two years or such lesser period as may be allowed by the

Company, and until such sum is refunded, hold it in trust for the Company. The Company shall not waive recovery of
such sum refundable to it unless approved by the company by special resolution within two years from the date the
sum becomes refundable.
(C) Remuneration to Non- Executive / Independent Director:
a) Remuneration / Commission:
The remuneration / commission shall be fixed as per the slabs and conditions mentioned in the Act.
b) Sitting Fees:
The Non- Executive / Independent Director may receive remuneration by way of fees for attending meetings of Board
or Committee thereof.
Provided that the amount of such fees shall be decided by the Board and subject to the limit as provided in the Act.
c) Commission:
Commission may be paid within the monetary limit approved by shareholders, subject to the limit not exceeding 1%
of the profits of the Company computed as per the applicable provisions of the Act.
(D) Remuneration to Key Managerial Personnel and Senior Management Personnel:
The remuneration of KMP and SMP shall be determined by the management of the Company as per their roles and
responsibilities in the organization, skill sets, seniority, experience, the last drawn remuneration and prevailing remuneration
for equivalent jobs.
Broadly, the remuneration structure of KMP and SMP shall include the following components:
i) Basic pay
ii) HRA
iii) Allowances
iv) Perquisites and Benefits
v) Retiral benefits
vi) Performance Bonus i.e. incentive pay on the basis of the performance of the KMPs and SMPs.
with liberty to the management to allocate the amounts towards various salary subject to there being no change in
the overall Cost to the Company.
11. Amendments
This Policy may be amended by the board at any time and is subject to (i) amendments to the Companies Act, 2013 (the
Act 2013) and (ii) further guidelines and enactments by the SEBI, including LODR Regulations.

ANNEXURE 4
Annual Report on CSR activities for the financial ended March 31, 2021
1. Brief outline on CSR Policy of the Company:
For over a decade as a socially responsible Company, Deepak Fertilisers And Petrochemicals Corporation Limited
(“DFPCL”) or “the Company”), is committed to serve the society it operates in. The Company conducts several outreach
programmes around its establishments. While the CSR projects and programs to be undertaken by the Company shall
include activities falling within the preview of schedule VII of Companies Act, 2013, the focus will be on the following
broad themes:
a) Women empowerment through vocational training (skill development) and livelihood Programmes;
b) Health and
c) Education.
The underlying objective for the aforesaid themes is aimed at making people self-reliant through economic and social
empowerment, providing employable skills and social entrepreneurship opportunities to youth and women to ensure
livelihood for economic betterment and social development of themselves and their families, instilling pride and confidence
(in the target population) to take on future challenges. Health initiatives, culture and heritage support programmes have
also formed Company’s ancillary focus areas. Improving the quality and infrastructure in the educational institutions has
also been the Company’s priorities.
2. Composition of CSR Committee:
Sr. Name of Director Designation / Number of Number of

No. Nature of Directorship meetings of CSR meetings of CSR
Committee held Committee attended
during the year during the year
1. Shri Pranay Vakil *, Chairman (upto Independent Director 1 1
21.09.2020)
2. Shri. Partha Bhattacharyya, Chairman Independent Director 2 2
(w.e.f. 21.09.2020)
3. Smt. Parul S. Mehta, Member Non- Executive Director 2 2
4. Smt. Renu Challu **, Member Independent Director 0 0
5. Shri. Alok Perti ***, Member Indepednent Director 1 1
*Shri Pranay Vakil on completion of his Second Term as Independent Director ceased to be director w.e.f. 21st September, 2020 and also ceased
to be the member and Chairman of the Corporate Social Responsibility Committee;
**Smt. Challu on account of her personal reasons has ceased to be the director of the Company w.e.f. 31st October, 2020 and also ceased to be
the member of the Corporate Social Responsibilty Committee;
*** Shri Alok Perti was appointed as Member of Corporate Social Responsibility Committee w.e.f. 3rd November, 2020.
3. Provide the web-link where Composition of CSR committee, CSR Policy and CSR projects approved by the board are
disclosed on the website of the company:
https://www.dfpcl.com/wp-content/uploads/2021/05/CSR-Policy_DFPCL.pdf
https://www.dfpcl.com/social-responsibility/
4. Provide the details of Impact assessment of CSR projects carried out in pursuance of sub-rule (3) of rule 8 of the
Companies (Corporate Social responsibility Policy) Rules, 2014, if applicable (attach the report):
Not applicable

5. Details of the amount available for set off in pursuance of sub-rule (3) of rule 7 of the Companies (Corporate Social
responsibility Policy) Rules, 2014 and amount required for set off for the financial year, if any:
Sl. No. Financial Year Amount available for set-off from preceding Amount required to be set- off for the
financial years (in `) financial year, if any (in `)
Nil
6. Average net profit of the company as per section 135(5): 2327.00 Lacs
7. (a) Two percent of average net profit of the company as per section 135(5): 47.00 Lacs
(b) Surplus arising out of the CSR projects or programmes or activities of the previous financial years: Nil
(c) Amount required to be set off for the financial year, if any: Nil
(d) Total CSR obligation for the financial year (7a+7b- 7c): 47.00 Lacs
8. (a) CSR amount spent or unspent for the financial year:
Total Amount Unspent (in `)

Amount
Spent for Total Amount transferred to Unspent Amount transferred to any fund specified under Schedule VII
the Financial CSR Account as per section 135(6). as per second proviso to section 135(5).
Year.
(in `) Amount Date of transfer Name of the Fund Amount Date of transfer
80,00,000/- Nil N.A. N.A. Nil N.A.
(b) Details of CSR amount spent against ongoing projects for the financial year:
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
Sr. Name Item from Local Location of the Project Amount Amount Amount Mode of Mode of
No. of the the list of area project. duration. allocated spent transferred Implementation Implementation
Project activities in (Yes/No) for the in the to Unspent Direct Through
CSR Account
Schedule project current for the (Yes/No) Implementing
VII to the (in `) financial project as Agency
Act. Year per Section
(in `) 135(6) (in `)
State District Name CSR

Registration
number.
Nil
(c) Details of CSR amount spent against other than ongoing projects for the financial year:
(1) (2) (3) (4) (5) (6) (7) (8)

Sl. Name of the Item from the list Local Location of the project Amount Mode of Mode of implementation
No. Project of activities in area spent for implementation - Through implementing
schedule VII to (Yes/ the project - Direct agency
the Act. No) State. District (in `) (Yes/No) Name CSR
registration
number
1. Aarogyam – (i) ‘‘promoting Yes Maharashtra Raigad 70,00,000 No Ishanya CSR00000211
Health Initiatives health care Foundation
including
preventinve
health care’’

(1) (2) (3) (4) (5) (6) (7) (8)
Sl. Name of the Item from the list Local Location of the project Amount Mode of Mode of implementation
No. Project of activities in area spent for implementation - Through implementing
schedule VII to (Yes/ the project - Direct agency
the Act. No) State. District (in `) (Yes/No) Name CSR
registration
number
2. Wadi Project (i) ‘‘promoting Yes Maharashtra Raigad 5,00,000 No Ishanya CSR00000211
health care Foundation
including
preventinve
health care’’
3. Skill Development (ii) livelihood No PAN India N.A. 5,00,000 No SVP CSR00001672
of the enhancement Philanthropy
Underprivileged projects Foundation
for a sustainable
Livelihood
(d) Amount spent in Administrative Overheads: Nil

(e) Amount spent on Impact Assessment, if applicable: Nil
(f) Total amount spent for the Financial Year (8b+8c+8d+8e): 80.00 Lacs
(g) Excess amount for set off, if any:
Sl. No. Particular Amount ( ` In Lacs)

(i) Two percent of average net profit of the company as per section 135(5) 47.00
(ii) Total amount spent for the Financial Year 80.00
(iii) Excess amount spent for the financial year [(ii)-(i)] 33.00
(iv) Surplus arising out of the CSR projects or programmes or activities of the previous Nil
financial years, if any
(v) Amount available for set off in succeeding financial years [(iii)-(iv)] 33.00
9. (a) Details of Unspent CSR amount for the preceding three financial years:
Sl. Preceding Amount transferred Amount spent Amount transferred to any fund specified under Amount remaining to be
No. Financial to Unspent CSR in the Schedule VII as per section 135(6), if any. spent in succeeding financial
Year. Account under reporting years. (in `)
section 135 (6) Financial Year
(in `) (in `) Name of the Amount Date of transfer
Fund (in Rs)
Nil*
*The provisions of Section 135 (6) are effective from 22nd January 2021. Therefore, the details required in the table are not applicable for FY 2020-21.
(b) Details of CSR amount spent in the financial year for ongoing projects of the preceding financial year(s):
(1) (2) (3) (4) (5) (6) (7) (8) (9)
Sl. Project Name Financial Project Total amount Amount spent Cumulative Status of the
No. ID of the Year in duration allocated for on the project amount spent project -
Project which the the project in the reporting at the end of Completed/
project was (in `) Financial Year reporting Financial Ongoing.
commenced. (in Rs). Year. (in `)
Nil

10. In case of creation or acquisition of capital asset, furnish the details relating to the asset so created or acquired through
CSR spent in the financial year: Nil
(asset-wise details).
(a) Date of creation or acquisition of the capital asset(s): N.A.
(b) Amount of CSR spent for creation or acquisition of capital asset: N.A.
(c) Details of the entity or public authority or beneficiary under whose name such capital asset is registered, their
address etc.: N.A.
(d) Provide details of the capital asset(s) created or acquired (including complete address and location of the capital
asset).: N.A.
11. Specify the reason(s), if the company has failed to spend two per cent of the average net profit as per section 135(5): N.A.
Sd/- Sd/-
Partha Bhattacharyya Parul Mehta
(Chairman – CSR Committee) (Director)

ANNEXURE 5
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO
[Pursuant to Section 134(3)(m) of The Companies Act, 2013 read with Rule 8(3) of The Companies (Accounts) Rules, 2014]
A. CONSERVATION OF ENERGY
(a) The steps taken or impact on conservation of energy:
K7/8 Plant:
• Gas turbines GT 5 run with either GT 1 or GT 2 below load of 10.4 MWH to prevent part load operation of 3
Gas Turbines and improve specific energy consumption of Gas Turbines. Specific NG consumption decreased
from 0.37 to 0.32 sm3/kWh saving ` 86 Lakhs per month.
(b) The steps taken by the company for utilizing alternate sources of energy:
a. The Company has Installed 300 KWH solar power generation plant which is the Company’s first step towards
clean and green energy. Total investment was ` 130 Lakhs and saving for the FY 2020-21 has been approx.
` 22.50 Lakhs. Installation of the required infrastructure to wheel the power generated by DFPCL’s wind
turbines to the K1 facility. Special energy meters are installed to account for the power transmitted.
b. The Company saved ~ ` 110 Lakhs in FY 2020-21 by utilizing the provision of Open Access mechanism for
purchase of power at JNPT site.
(c) The capital investment on energy conservation equipment
Covered in (a) & (b) above.
B. TECHNOLOGY ABSORPTION
(1) The efforts made towards technology absorption
The Company is working with CSIR – National Chemical Laboratory, Pune for the development of new catalyst for
the IPA plant.
(2) The benefits derived like product improvement, cost reduction, product development or import substitution: NIL
(3) In case of imported technology (imported during the last three years reckoned from the beginning of the financial
year)-
Details of The Year of Whether the technology If not fully absorbed, areas where absorption has
Technology imported Import been fully absorbed not taken place, and reasons therefor
None
(4) The expenditure incurred on Research and Development

Research and Development Efforts
K1 Plant:
1) Hand Sanitizer (Value addition to IPA product basket) – To mitigate the current COVID-19 pandemic situation
and ensure availability of Alcohol Based Hand sanitizer R&D team quickly established process as per WHO
guidelines for Hand Sanitizer production with required purity at R&D scale. After requisite results from R&D
Trial, the Hand sanitizer & Rubbing Alcohol is being used inhouse plant & CSIR team for mitigating the crisis
scenario.

C. FOREIGN EXCHANGE EARNINGS AND OUTGO
Details with respect to foreign exchange earnings and outgo as under:
Earning in Foreign Currency (` in Lakhs)
Particulars 31st March 2021 31st March 2020

Export of goods (Manufactured and Traded) 3,351.20 2,851.11
Other Income 925.67 -
Other Income - Sale of Investment 944.73 -
Total 5,221.61 2,851.11
Expenditure in Foreign Currency (` in Lakhs)

Interest and repayment of Loans. 811.16 1.68
Technical fees to Foreign Vendors 92.54 27.91
Foreign Travels - 13.49
Others (Net of Reimbursements) 326.17 893.31
Total 1,229.87 936.39
CIF Value of Imports (` in Lakhs)

Raw Materials 1,008.56 7,905.03
Capital goods and spares 1,238.39 -
Traded chemicals 34,723.19 34,140.93
Traded Furniture 43.00 -
Total 36,970.14 42,045.96

ANNEXURE 6
SECRETARIAL COMPLIANCE REPORT OF
DEEPAK FERTILISERS AND PETROCHEMICALS CORPORATION LIMITED
FOR THE YEAR ENDED MARCH 31, 2021
To,
Deepak Fertilisers And Petrochemicals Corporation Limited
Sai Hira, Survey No.93,
Mundhawa, Pune-411 036
We SVD & Associates have examined:
a) all the documents and records made available to us, by way of email in view of the prevailing pandemic situation of
COVID -19 and explanation provided by Deepak Fertilisers And Petrochemicals Corporation Limited (“the listed entity”),
b) the filings/ submissions made by the listed entity to the stock exchanges,
c) website of the listed entity,
d) any other document/ filing, as may be relevant, which has been relied upon to make this certification, for the year ended
March 31, 2021 (“Review Period”) in respect of compliance with the provisions of:
a) the Securities and Exchange Board of India Act, 1992 (“SEBI Act”) and the Regulations, circulars, guidelines issued
thereunder; and
b) the Securities Contracts (Regulation) Act, 1956 (“SCRA”), rules made thereunder and the Regulations, circulars,
guidelines issued thereunder by the Securities and Exchange Board of India (“SEBI”);
The specific Regulations, whose provisions and the circulars/ guidelines issued thereunder, have been examined, include:-
a) Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015;
b) Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements), Regulations, 2018;
c) Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011;
d) The Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018 (Not applicable to the listed entity
during the Review Period);
e) Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 (Not applicable to the listed
entity during the Review Period);
f) Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008 (Not applicable to the
listed entity during the Review Period);
g) Securities and Exchange Board of India (Issue and Listing of Non-Convertible and Redeemable Preference Shares)
Regulations,2013 (Not applicable to the listed entity during the Review Period);
h) Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015;
i) Securities and Exchange Board of India (Depositories and Participant Regulation), 2018;
j) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993
regarding the Companies Act and dealing with client; and circulars/ guidelines issued thereunder; And based on the above
examination, we hereby report that, during the Review Period:

(a) The listed entity has complied with the provisions of the above Regulations and circulars/ guidelines issued
thereunder, except in respect of matters specified below:-
Sr. Compliance Requirement Deviations Observations/ Remarks of the

No. (Regulations / circulars /guidelines Practicing Company Secretary
including specific clause)
1. As per regulation 17 sub-regulation The appointment of women The Company had already started
1 clause (a) of LODR, Board of Independent Director that the process of identifying the Woman
directors of the top 1000 listed was required to be made w.e.f candidate. The Meeting of Nomination
entities shall have at least one April 1, 2020 as per regulation & Remuneration Committee and
independent woman director by 17 sub-regulation 1 clause (a) the Meeting of Board of Directors
April 1, 2020. of LODR, was made w.e.f. May was scheduled in the last week of
14, 2020 March 2020 to inter-alia, discuss and
decide the appointment of Woman
Independent Director. However, due to
nationwide Lockdown in March 2020,
the meeting could not be convened
and the appointment of the Woman
Independent Director could not be
effected. However, the Company has
appointed the Independent Woman
Director w.e.f. May 14, 2020.
2. Regulation 13 of LODR requires the Failure to ensure that Fine of ` 2,360 inclusive of GST levied on
Company to ensure that adequate adequate steps are taken the Company as per SEBI circulars no.
steps are taken for expeditious for expeditious redressal of SEBI/HO/CFD/CMD/CIR/P/2020/12
redressal of investor complaints. investor complaints for the dated 22 January, 2020 and SEBI/
period of February 11, 2021 to HO/OI AE/IGRD/CIR/P/2020/152
March 10, 2021. dated August 13, 2020. As informed,
the details of the Complaint were not
available on the BSE Portal. The said
were however made available to the
Company on February 3, 2021 which
was settled on February 24, 2021 i.e.
within 21 days from the date of receipt
of complaint notwithstanding the
pandemic period during which there
was non - availability of Signatories
authorised to give instruction to the
Bank for making payments. In view
of above, the company has submitted
representation to Bombay Stock
Exchange for waiver of the fine levied
upon it. In the interim, pending waiver
of fine by BSE, the same has been
paid UNDER PROTEST to avoid the
consequences of non-payment.
(b) The listed entity has maintained proper records under the provisions of the above Regulations and circulars/
guidelines issued thereunder insofar as it appears from our examination of those records.
(c) The following are the details of actions taken against the listed entity/ its promoters/ directors/ material subsidiaries

either by SEBI or by Stock Exchanges (including under the Standard Operating Procedures issued by SEBI through
various circulars) under the aforesaid Acts/ Regulations and circulars/ guidelines issued thereunder:
Sr. Action taken by Details of violation Details of action taken Observations/ remarks of
No. E.g. fines, warning the Practicing Company
letter, debarment, etc. Secretary, if any
1. Bombay Stock Regulation 13 of LODR for Fine of ` 2,360 We are informed that the
Exchange failure to ensure that adequate inclusive of GST levied company has submitted
steps are taken for expeditious on the Company as representation to Bombay
redressal of investor per SEBI circulars no. Stock Exchange for waiver
complaints for the period of SEBI/HO/CFD/CMD/ of the fine levied upon it,
February 11, 2021 to March 10, CIR/P/2020/12 dated which will be placed before
2021 22 January, 2020 and the respective Committee
SEBI/HO/OIAE/IGRD/ of BSE and accordingly
CIR/P/2020/152 dated this fine is being paid
August 13, 2020 UNDER PROTEST to avoid
the consequences of non-
payment.
(d) The listed entity has taken the following actions to comply with the observations made in previous reports:
Sr. Observations of the Practicing Observations made Actions taken by the Comments of the
No. Company Secretary in the in the secretarial listed entity, if any Practicing Company
previous reports compliance report Secretary on the
for the year ended actions taken by the
(The years are to be listed entity
mentioned)
- Nil Nil Nil Nil
(e) The listed entity has suitably included the conditions as mentioned in Para 6(A) and 6(B) of the SEBI Circular CIR/
CFD/CMD1/114/2019, dated October 18, 2019 in the terms of appointment of statutory auditor of the listed entity.

Company Secretaries
Sridhar Mudaliar
Partner
FCS No: 6156
CP No :2664
UDIN: F006156C000371004
Place: Pune
Date: May 28, 2021

ANNEXURE 7
CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS
(Pursuant to Regulation 34(3) and Schedule V Para C Clause (10)(i) of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015
To,
The Members
Deepak Fertilisers And Petrochemicals Corporation Ltd
Sai Hira, Survey No 93, Mundhwa, Pune-411036
We have examined the relevant registers, records, forms, returns and disclosures received from the Directors of Deepak Fertilisers
And Petrochemicals Corporation Ltd (hereinafter referred to as ‘the Company’), having CIN - L24121MH1979PLC021360 and
having registered office at Sai Hira, Survey No 93, Mundhwa, Pune-411036 produced before us by the Company for the purpose
of issuing this Certificate, in accordance with Regulation 34(3) read with Schedule V Para-C Sub clause 10 (i) of the Securities
Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
In our opinion and to the best of our information and according to the verifications (including Directors Identification Number
(DIN) status at the portal www.mca.gov.in) as considered necessary and explanations furnished to us by the Company & its
officers, we hereby certify that none of the Directors on the Board of the Company as stated below for the Financial Year ending
on March 31, 2021 have been debarred or disqualified from being appointed or continuing as Directors of companies by the
Securities and Exchange Board of India and Ministry of Corporate Affairs.
Sr. No. Name of the Director DIN Date of appointment as Director in the Company
1 Sujal Shah 00058019 30/06/2020
2 Sailesh Mehta 00128204 04/09/1991
3 Berjis Desai 00153675 07/07/2017
4 Ashok Purwaha 00165092 07/07/2017
5 Parul Mehta 00196410 20/10/2005
6 Partha Bhattacharyya 00329479 31/10/2012
7 Alok Perti 00475747 22/04/2019
8 Bhuwan Tripathi 01657366 13/02/2020
9 Varsha Purandare 05288076 31/01/2021
10 Madhumilan Shinde 06533004 10/02/2017
11 Amit Biswas 08173442 22/04/2019
Ensuring the eligibility of for the appointment / continuity of every Director on the Board is the responsibility of the management
of the Company. Our responsibility is to express an opinion on these based on our verification. This certificate is neither an
assurance as to the future viability of the Company nor of the efficiency or effectiveness with which the management has
conducted the affairs of the Company.

Company Secretaries
Sridhar Mudaliar
Partner
FCS No: 6156
CP No: 2664
UDIN: F006156C000370971
Place: Pune
Date: May 28, 2021
Note:
We have relied on the documents and evidences provided by electronic mode, in view of prevailing pandemic situation of
Covid-19, for the purpose of issuing this certificate.

ANNEXURE 8
Form No. MR-3
FOR THE FINANCIAL YEAR ENDED 31st MARCH, 2021
[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule No.9 of the Companies
(Appointment and Remuneration Personnel) Rules, 2014]
To,
The Members,
Smartchem Technologies Limited
Sai Hira, Survey No.93, Mundhwa, Pune-411036, Maharashtra, India
corporate practices by Smartchem Technologies Limited (hereinafter called the Company). Secretarial Audit was conducted
in a manner that provided us a reasonable basis for evaluating the corporate conducts/statutory compliances and expressing
our opinion thereon.
by the Company and also the information provided by the Company, its officers, agents and authorized representatives during
financial year ended on 31st March, 2021 complied with the statutory provisions listed hereunder and also that the Company has
proper Board-processes and compliance-mechanism in place to the extent, in the manner and subject to the reporting made
hereinafter:
the financial year ended on 31st March, 2021 according to the provisions of:
(i) t he Companies Act, 2013 (the Act) amended from time to time and the Rules, Notifications and Circulars issued thereunder
(in so far as they are made applicable) and
(ii) other Laws, as informed and certified by the Management of the Company which are specifically applicable to the
Company based on their sector/industry are-
1. Petroleum Act, 1934 and Rules, 2002;
2. Explosive Act, 1908;
3. Essential Commodities Act, 1955
4. The Manufacturing, Storage and Import of Hazardous Chemicals Rules, 1989;
5. Hazardous Waste (Management, Handling and Transboundary Movement) Rules, 2008;
6. Ammonium Nitrate Rules, 2012;
7. Fertiliser (Control) Order, 1985;
8. Petroleum and Minerals Pipelines (Acquisition of Right Users in Land) Act, 1962
We have also examined compliance with the applicable clauses of the Secretarial Standards issued by The Institute of Company
Secretaries of India.
During the period under review the Company has complied with the provisions of the Act, Rules, Regulations, Guidelines,
Standards, etc. mentioned above.

We further report that:
The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive Directors
and Independent Directors. The changes in the composition of the Board of Directors that took place during the period under
review were carried out in compliance with the provisions of the Companies Act, 2013.
Notice is given to all Directors to schedule the Committee and Board Meetings, agenda and detailed notes on agenda were sent
well in advance, and a system exists for seeking and obtaining further information and clarifications on the agenda items before
the meeting and for meaningful participation at the meeting.
Generally, decisions in the Committee and Board Meeting are being taken with the unanimous approval of the Members and
Directors. However, the views of all the dissenting Directors, if any, have been captured and recorded in the minute book.
We further report that there are adequate systems and processes in the Company commensurate with the size and operations
of the Company to monitor and ensure compliance with applicable Laws, Rules, Regulations and Guidelines.
We further report that
At the Annual General Meeting of the Company held on 9th September, 2020, following business were transacted:
(1) he Shareholders passed Ordinary Resolution to receive, consider and adopt audited financial statements of the Financial
T
Year ended 31st March 2020, and the Board’s Report and Auditor’s Report thereon.
(2) The Shareholders passed Ordinary Resolution to appoint a Director in place of Smt. Parul S. Mehta (DIN No. 00196410)
who retires by rotation and being eligible, offers herself for re-appointment.
(3) The Shareholders passed Ordinary Resolution to ratify the remuneration to be paid to the Cost Auditors of the Company.
(4) The Shareholders passed Special Resolution for raising of funds through issue of securities.
For Jog Limaye & Associates

Company Secretaries
Mandar Shrikrishna Jog

Partner
M. No. F9552
CP No.- 9798
UDIN: F009552C000295552
PR- 738/2020
Place: Pune
Date: May 13, 2021
Note:
This report is to be read with letter of even date by the Secretarial Auditors, which is annexed as Annexure A and forms an
integral part of this report.

‘ANNEXURE A’
To,
The Members,
Smartchem Technologies Limited
Sai Hira, Survey No.93, Mundhwa, Pune 411036
1. Maintenance of secretarial record is the responsibility of the management of the Company. Our responsibility is to express
an opinion on these secretarial records based on our audit.
2. We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the
correctness of the contents of the Secretarial records. The verification was done on test basis to ensure that correct facts
are reflected in secretarial records. We believe that the processes and practices, we followed provide a reasonable basis
for our opinion.
3. We have not verified the correctness and appropriateness of financial records and Books of Accounts of the company.
4. Wherever required, we have obtained the Management representation about the compliance of laws, rules and regulations
and happening of events etc.
5. The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the responsibility
of management. Our examination was limited to the verification of procedures on test basis.
6. The Secretarial Audit report is neither an assurance as to the future viability of the company nor of the efficacy or
effectiveness with which the management has conducted the affairs of the company.

Company Secretaries

Partner
M. No. F9552
CP No.- 9798
UDIN: F009552C000295552
PR- 738/2020
Place: Pune
Date: May 13, 2021

ANNEXURE 9
Form No. MR-3
FOR THE FINANCIAL YEAR ENDED 31st MARCH, 2021
[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule No.9 of the Companies
(Appointment and Remuneration Personnel) Rules, 2014]
To,
The Members,
PERFORMANCE CHEMISERVE LIMITED
Sai Hira, Survey No.93, Mundhwa, Pune-411036, Maharashtra, India
corporate practices by Performance Chemiserve Limited (hereinafter called the Company). Secretarial Audit was conducted
in a manner that provided us a reasonable basis for evaluating the corporate conducts/statutory compliances and expressing
our opinion thereon.
by the Company and also the information provided by the Company, its officers, agents and authorized representatives during
financial year ended on 31st March, 2021 complied with the statutory provisions listed hereunder and also that the Company has
proper Board-processes and compliance-mechanism in place to the extent, in the manner and subject to the reporting made
hereinafter:
the financial year ended on 31st March, 2021 according to the provisions of:
(i) he Companies Act, 2013 (the Act) amended from time to time and the Rules, Notifications and Circulars issued thereunder
T
(in so far as they are made applicable).
We have also examined compliance with the applicable clauses of the Secretarial Standards issued by The Institute of Company
Secretaries of India.
During the period under review the Company has complied with the provisions of the Act, Rules, Regulations, Guidelines,
Standards, etc. mentioned above.
We further report that:
The Board of Directors of the Company is duly constituted with proper balance of Non-Executive Directors and Independent
Directors. The changes in the composition of the Board of Directors that took place during the period under review were carried
out in compliance with the provisions of the Companies Act, 2013.
Notice is given to all Directors to schedule the Committee and Board Meetings, agenda and detailed notes on agenda were sent
well in advance, and a system exists for seeking and obtaining further information and clarifications on the agenda items before
the meeting and for meaningful participation at the meeting.
Generally, decisions in the Committee and Board Meeting are being taken with the unanimous approval of the Members and
Directors. However, the views of all the dissenting Members / Directors, if any, have been captured and recorded in the minute
book.
We further report that there are adequate systems and processes in the Company commensurate with the size and operations
of the Company to monitor and ensure compliance with applicable Laws, Rules, Regulations and Guidelines.
We further report that
At the Annual General Meeting of the Company held on 9th September, 2020, following business were transacted:

(1) he Shareholders passed Ordinary Resolution to receive, consider and adopt audited financial statements of the Financial
T
Year ended 31st March 2020, and the Board’s Report and Auditor’s Report thereon.
(2) The Shareholders passed Ordinary Resolution to appoint a Director in place of Shri A. P. Shah (DIN - 00196506), who
retires by rotation and being eligible, offers himself for re-appointment.
(3) The Shareholders passed Ordinary Resolution to appoint Shri Partha Sarathi Bhattacharyya (DIN - 00329479) as an
Independent Director.

Company Secretaries

Partner
M. No. F9552
CP No.- 9798
UDIN: F009552C000295486
PR- 738/2020
Place: Pune
Date: May 13, 2021
Note:
This report is to be read with letter of even date by the Secretarial Auditors, which is annexed as Annexure A and forms an
integral part of this report.

‘ANNEXURE A’
To,
The Members,
Performance Chemiserve Limited
Sai Hira, Survey No.93, Mundhwa, Pune 411036
1. Maintenance of secretarial record is the responsibility of the management of the Company. Our responsibility is to express
an opinion on these secretarial records based on our audit.
2. We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the
correctness of the contents of the Secretarial records. The verification was done on test basis to ensure that correct facts
are reflected in secretarial records. We believe that the processes and practices, we followed provide a reasonable basis
for our opinion.
3. We have not verified the correctness and appropriateness of financial records and Books of Accounts of the company.
4. Wherever required, we have obtained the Management representation about the compliance of laws, rules and regulations
and happening of events etc.
5. The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the responsibility
of management. Our examination was limited to the verification of procedures on test basis.
6. The Secretarial Audit report is neither an assurance as to the future viability of the company nor of the efficacy or
effectiveness with which the management has conducted the affairs of the company.

Company Secretaries

Partner
M. No. F9552
CP No.- 9798
UDIN: F009552C000295486
PR- 738/2020
Place: Pune
Date: May 13, 2021

MANAGEMENT
DISCUSSION &
ANALYSIS
Ammonia Plant

ECONOMIC OVERVIEW
recovery mode but a lot depends upon
Global the effectiveness of the policy decisions
undertaken by countries related to:
2020 has been a year of resilience and
travel, healthcare infrastructure and
adaptability to one of the 21st century’s
trade. IMF’s World Economic Outlook
worst health crises. The outbreak
of April 2021 estimates the two
of COVID-19 pandemic triggered an
distinct constituent blocks - Advanced
unprecedented disruption in the world,
Economies (AEs), and Emerging
affecting lives and economies. The
Markets and Developing Economies
government and healthcare sector
(EMDEs) output to have declined by
raced against time to curb the spread
4.7% and 2.2% respectively. However,
of the deadly virus and contain the
China, a large global GDP constituent in
economic shock. While the world
the EMDE block, defied the trend to post
de-grew by 3’3% in 2020, the fast
a growth of 2.3% in 2020.
development and roll out of COVID-19
vaccination has rekindled a new hope Continuing the steady gains made
of revival. during the second half and partly also
on account of a contracted base of
Despite the year with multifaceted
2020, IMF predicts an equally sharp
challenges, 2020 enabled countries
recovery for 2021 to be followed with
and its people to look within and
a significant moderation in 2022. 2021
develop capabilities to become
growth rate forecast for the World, AEs,
self-reliant and self-sufficient. Many
and EDMEs are 6%, 5.1% and 6.7%,
protectionist policy announcements
respectively. Despite a very sharp
changed the face of the world market
recovery, it is worth noting that the
as nationalism triumphed.
average growth for three years (2020
According to International Monetary through 2022) would still be lower than
Fund (IMF), the world has set on a the pre-pandemic growth rate of 2019.
GDP Growth (%) GDP Growth Trend (%)

15
2019 2020 2021(P) 2022 (P)
10
World 2.8 -3.3 6.0 4.4
5 AE 1.6 -4.7 5.1 3.6
EMDE 3.6 -2.2 6.7 5.0
0
2019 2020 (E) 2021 (P) 2022 (P) India 4 -8 12.5 6.9
-5
Source: WEO April 2021, IMF
AE: Advanced economies,
-10 EDME: Emerging markets and developing economies
World AE EMDE India

Indian economy government policies and measures, quick turnaround on setting up
and fastest roll out of world’s largest COVID-19 dedicated infrastructure,
India, the second largest constituent vaccination drive. These steps are educating its population on necessary
of EMDE block, is estimated to have helping the country to contain the health advisories and closing its
witnessed a much sharper contraction spread of disease and isolate further borders to affected countries led the
of 8% in 2020. However, the supportive impact to the economy. country to avert major risks to its
government policies and measures, population and economic growth.
and the fastest rollout of the world’s Some of the Government of India’s
According to IMF, India is expected
largest vaccination drive have enabled effective measures during FY21
to be the torchbearer in the world’s
the country to contain the spread of include moratorium on loans, easing
recovery path. It has been forecasted
disease. However, the outbreak of out of financial obligations of states
to grow much higher than China
the second wave at the beginning of to the centre, direct benefit transfer
at 12.5% in 2021 and 6.9% in 2022.
has slowed the pace of recovery of to farmers, and declaring agriculture
However, during 2020, India de-grew
the economy, which is witnessing a and allied activities under essential
by 8% according to IMF.
K-shaped recovery with with supportive services during the pandemic. The
INDIAN CHEMICALS INDUSTRY OVERVIEW

India is the 6th largest producer of preferences to healthier and organic certification for imported chemicals
chemicals in the world and overall lifestyles are expected to boost demand and other imports to prevent dumping
contributes around 3% to the global for value-added products from end- of cheap and sub-standard chemicals
chemical industry. With over 80,000 user industries, a positive for the and products into the country provides
commercial products, the Indian Indian Chemicals Industry. Moreover, the industry opportunity to strategise
chemical industry is poised to the ongoing trade war and changing and develop capabilities.
touch US$ 300 billion by FY25 from geopolitical scenario led by COVID-19
The Indian chemicals industry
US$ 178 billion in FY21. Its contribution pandemic is expected to create a sweet
majorly produces upstream products
to the country’s GDP is expected to spot for India, which is one of the fastest-
or intermediates. These chemicals
touch 25% by 2025. Some of the key growing consumer markets in the world.
have applications across fertilisers,
drivers of the industry include the The country’s per capita chemical
pharmaceuticals, textiles, plastics,
shift in production of global specialty consumption is lower compared to the
agrochemicals, paints and dyes.
chemicals makers from China to India, world, hence allowing much headroom
Among the various sectors that are
supportive government schemes for growth. With critical chemicals
expected to boost the demand for
such as Production Linked Incentives required by agriculture, healthcare and
chemicals, agriculture is one shining
(PLI) under the Aatmanirbhar hygiene sector being classified under
star. The total production of major
Bharat Abhiyan campaign and the essential category during the pandemic
chemicals and petrochemicals in
government’s aim to develop a by the government, provided the
2020-21 (up to September 2020) was
complete manufacturing ecosystem sector immunity against the lockdown
12,502 thousand MT. Chemical and
for chemicals in the country. restrictions and severe business impact.
petrochemicals production showed
The rising disposable incomes, The government’s move to mandate growth of 5-6% CAGR during the period
urbanisation and changing consumer new Bureau of Indian Standards (BIS) 2015-2020.
Production of selected Major Chemicals and Petrochemical (Figures in 000’MT)
2020-21
2015-16 2016-17 2017-18 2018-19 2019-20 CAGR
(April 2020 to Sept 2020)*
Total Basic Major Chemicals 9884 10234 11069 11589 11943 4.84 4763
Total Basic Major Petrochemicals 14905 15510 15670 16269 19041 6.31 7739
Total Basic Major Chemicals and Petrochemicals 24788 25744 26739 27858 30984 5.74 12502
Source: Ministry of Chemicals & Fertilisers (Department of Chemicals and Petrochemicals)
Globally, China is the largest chemical producer with around 36% market share. India’s share in the global chemical market
stands minuscule at around 3% and can be doubled by a shift of merely 10% of China’s chemical business to India.

Pharmaceutical perform economic savings to survive. demand for the United States and
In the pre-COVID scenario, the Indian 25% of all medicines for the United
Over FY2020-21, the demand for pharmaceutical industry was heavily Kingdom. The government’s ‘Pharma
intermediates and raw materials dependent on China for sourcing bulk Vision 2020’ aims to make India
required for the production of active drugs. However, the ongoing trade war a major hub for end-to-end drug
pharmaceutical ingredients has and changing geopolitical scenario discovery. To support its vision, the
witnessed a significant change. has not just created opportunities for government plans to set up around
There has been traction in the Indian manufacturers to look inwards ` 1 lakh crore (US$ 1.3 billion) fund to
demand for specialty chemicals with and localise, but also opened doors promote domestic manufacturing of
the market expected to rise at 12% to grab a larger share of the global pharmaceutical ingredients by 2023.
CAGR in 2019-22. market. Between April 2020 and December
2020, the drugs and pharmaceuticals
The pandemic has disrupted the India already supplies over 50%
sector has received Foreign Direct
supply chains worldwide and forced of the global demand for various
Investment (FDI) worth ` 97,048.25
companies to look beyond and vaccines, 40% of the generic
crore (US$ 17.74 billion).
Mining & Infrastructure imports by domestic substitution. norms for participating companies
While it successfully conducted by allowing bidders to submit their
The government of India (GoI) is the first round of commercial coal preferences for mines.
reforming the Mining sector to boost mining auctions, in the 2 nd
tranche of
domestic production of minerals. The The recently passed Mines and
commercial coal mine auctions the
rise in infrastructure development Minerals Development and Regulation
government has further eased the
in the country backed by the
government schemes and reforms,
such as the Make in India campaign,
Smart Cities, Housing for All, Rural
Electrification and building renewal
energy ecosystem in the country
under the National Electricity Policy
has opened opportunities for India’s
mining sector.
India is on a steadfast route to

modernise its mining sector. The
government has been undertaking
structural reforms to increase private
participation in mineral exploration
and streamlining the auction process
of mineral blocks. With the Mines
and Minerals (Development and
Regulation) Amendment Act, 2021,
is a landmark reform that would have
no distinction between captive and
non-captive mines. The Act helps in
auctioning of more mines and allows
the captive mines to sell up to 50% of
the minerals excavated during the year.
India has the 5th largest coal reserves

in the world. The government has
stated its intention to reduce coal

(MMDR) Amendment Bill 2021 In the case of non-coal and the projected rail traffic requirements
incorporates several structural infrastructure segment, the up to 2050. The government also
reforms. These include removal of government has announced the recently announced setting up of
restriction on end-use of minerals, sale creation of National Infrastructure Development Financial Institution
of minerals by captive mines and the Projects Pipeline, which has been (‘DFI’) to professionally manage the
Transfer of Statutory Permissions. extended to ~7400 projects in India. budgetary allocation of ` 20,000
The captive mines (other than atomic There has been a continued thrust Crores for funding infrastructure
minerals) are allowed to sell up to 50% provided to infrastructure projects projects. The lending portfolio of
of their annual mineral production such as road, highways, railways, DFI will be ` 5 lakh crores in 3 years.
in the open market after meeting urban infrastructure through All these reforms and initiatives
their own needs. All these structural expansion of metro projects and city announced by the government will
reforms under the Aatmanirbhar bus service and affordable housing. drive the demand for TAN at a CAGR
Bharat Abhiyan are aimed towards Under this, the National Rail Plan is of 4-5% in the near foreseeable future.
encouraging domestic production and being planned to develop adequate
import substitution. rail infrastructure by 2030 to cater to
AGRICULTURE INDUSTRY OVERVIEW
As per the Economic Survey’s First been encouraging the agriculture and and Protection) Agreement on Price
Advance Estimates, the agriculture and allied services sector to innovate and Assurance and Farm Services Act. The
allied activities witnessed a growth of develop competencies that provide implementation of PM Kisan Samman
3.4% at constant prices during 2020-21. them a stronger hold in the domestic Nidhi and earlier initiatives like PM
In 2019-2020, the share of agriculture and and world agri market. Fasal Bima Yojana, etc. are all going
allied sectors in Gross Value Added (GVA) to help Indian farming to become
With an aim to liberalise the Indian
of India at current prices stood at 17.8%. more progressive, diverse, profitable
farm sector and enable it with a larger
and sustainable.
Despite the COVID-19 related challenges, participation of the private sector,
the Indian agricultural sector has shown the Government of India passed This holistic focus towards
great resilience. The government three landmark laws in September agriculture by both the central and
has been focusing on modernising, 2020. The Farmers’ Produce Trade state governments have opened
developing agri infrastructure and and Commerce (Promotion and new opportunities for the industry
improving processes related to Facilitation) Act, The Essential that is the fourth largest producer of
agriculture. Under its Aatma Nirbhar Commodities (Amendment) Act agrochemicals in the world.
Bharat Abhiyan, the government has and The Farmers (Empowerment

Key Highlights from Union Budget 2021-2022:
• ` 20,000 crore to set up and capitalise a Development Financial Institution (DFI) – to act as a provider, enabler and catalyst
for infrastructure financing
• Rural Infrastructure Development Fund to be enhanced to ` 40,000 crore from ` 30,000 crore
• Capital Expenditure of ` 5.54 Lakh Crore for FY 2021-22, which is 34.5% more than the Budget Estimate of FY2020-21
• 7 projects worth more than ` 2,000 Crores will be offered by the major ports on PPP mode in FY 2021-22
• National Monetisation Pipeline to be set-up for brownfield infrastructure investment and monetising public infrastructure
investments
• Enhanced outlay of ` 1.18 Lakh Crore for Ministry of Road Transport & Highways, of which ` 1.08 Lakh Crore is for Capital
Expenditure-the highest ever
• Record sum of ` 1.10 Lakh Crore for Railways of which ` 1.07 Lakh Crore is for Capital Expenditure
• Western & Eastern Dedicated Freight Corridor expected to be commissioned by June 2022
BUSINESS OVERVIEW
At Deepak Fertilisers And Petrochemicals Corporation Limited (DFPCL), our business operations are spread across four
business verticals, including;
Industrial Technical Ammonium Crop Nutrition Value Added

Chemicals (IC) Nitrate (TAN) Business (CNB) Real Estate
The Company has manufacturing facilities at Taloja – Maharashtra, Srikakulam – Andhra Pradesh, Panipat – Haryana and
Dahej – Gujarat. The total manufacturing capacity of the company stands at 1362 KTPA for IC, 487 KTPA for TAN, and 986
KTPA for CNB.
Industrial Chemicals (IC) The Company has been focusing on (IPA) in India with an installed capacity
DFPCL is a leading manufacturer of better price-volume management, of 70,200 MT/ year for IPA at its Taloja
industrial chemicals such as Nitric downstream integration, new product plant in Maharashtra.
Acid, Iso Propyl Alcohol (both pharma development and a hybrid work
DFPCL is the only company to offer
as well as industrial grade IPA) and environment for optimum productivity
a complete basket of offerings, i.e.,
food-grade Liquid Carbon Dioxide in the to take the big leap towards a more
industrial grade, pharma grade (IP, EP,
country. The Company also imports and customer-facing organisation. DFPCL
BP, CP, EP, USP compliant) in various
supplies IPA and other chemicals within has a strong distribution network
packing sizes. The Company trades in
India. The Company has an installed of 50+ channel partners and direct
IPA to cater to the additional demand
capacity of 1362 KTPA of Nitric Acid, relationships with more than 600
of the end customers and also to retain
Methanol, Liquid CO2 and IPA. industrial customers in India.
its market leadership.
In line with DFPCL’s strategy, the Iso Propyl Alcohol (IPA)
During FY2020-21, IC business forayed
IC business has been diversifying
DFPCL is the leading manufacturer into the hand sanitisers, disinfectants
into newer segments and markets.
and marketer of Iso Propyl Alcohol and wipes segment with its IPA-based

State-of-the-art
Nitric Acid plant at Dahej
product brand called Cororid. Since its Nitric Acid continue its growth trajectory on the
launch in April 2020, the Cororid brand back of robust demand from its key
has received a good response from The total capacity of Nitric Acid in buying sectors such as fertilisers,
the domestic market, including B2B India is seen at 21,65,800 MT per year explosives, pharmaceuticals, nitro
as well as B2C segments. As part of with DFPCL holding a large chunk of aromatics, dyes, steel rolling industry
its strategy, the Company aim to focus the market share in India. Technical and defence.
on a product portfolio with a mix of Ammonium Nitrate (TAN) and
Ammonium Nitro Phosphate (ANP) Liquid Carbon Dioxide (CO2)
bulk commodity products and value-
added specialty offerings that helps consumes a significant portion of
DFPCL is one of the leading suppliers
the IC business in reducing volatility the captive Nitric Acid manufacturing
of Liquid Carbon Dioxide with an
in earnings over the business cycle. while the surplus Nitric Acid is sold to
installed annual capacity of 72,000
domestic companies.
MT. Liquid Carbon Dioxide produced by
DFPCL will continue to expand its
During the first half of the year, Nitric the company is ‘food grade’ certified
offerings in the hygiene segment
Acid manufacturing was impacted and supplied to various beverage
with IPA-based downstream product
mainly due to raw material shortage manufacturers and engineering
opportunities. The Company is putting
and lower demand from consumer industries as a shield gas for welding.
in significant efforts to reduce waste
industries due to the pandemic. During the year, the Company saw a
streams from its manufacturing
capacity utilisation of 70%.
processes and convert them to value-
The production of Nitric Acid within
added products. With the increase of liquid carbon
India has been on a rise and improving
export prospects to the industry. dioxide (CO2) demand from the
Around 50% of Indian IPA requirement
Overall, the rise in usage of Nitric consumption sectors, such as metal
has been traditionally dependent on
Acid in sectors, such as fertilisers, manufacturing and fabrication, and
imports from overseas countries such
pharmaceuticals, aromatics and oil & gas projects is expected to drive
as South Korea, China, US, Taiwan, and
explosives industry is expected to market growth.
Singapore. Last year, the outbreak of
COVID-19 pandemic led to a significant boost the demand both domestically
Methanol
growth in demand for IPA used in hand as well as overseas.
sanitiser and surface disinfection DFPCL has an installed capacity of
During 2015-2020, Nitric Acid
applications. IPA was brought under 1,00,000 MTPA for Methanol at Taloja,
demand in India grew by a CAGR of
essential commodities during the Maharashtra. Methanol is used to
3.8%, according to Chemanalyst.
first quarter of FY21, leading to strong produce formaldehyde, tert-amyl methyl
Nitroaromatics Industry is growing
demand. The IPA market in India is ether (TAME) and methyl derivatives.
at a CAGR 6%. Global specialty
expected to grow at a CAGR of 7-8% by It is also used as a solvent in the
chemical intermediates value chains
volume due to the growing consumption pharmaceutical and paint industries.
are shifting from China to India
in the pharmaceuticals and chemicals
boosting Nitric Acid demand and By 2025, methanol production is
industry, according to Chemanalyst.
prices in India. It is expected to expected to reach 20 MT annually by

using Indian High Ash coal, Stranded Traded Chemicals Business which is widely used in the production
gas, and Biomass as per the Methanol of medical grade nitrous oxide for
Economy program initiated by Niti Over the years, DFPCL has significantly use as an anesthetic/analgesic. The
Ayog. This is expected to have a reduced its trading portfolio to focus Company enjoys ~43% market share in
significant impact on the import on its core business. To continue the domestic TAN market.
substitution of crude oil for India, and to maintain its market share and
stronghold in the market, it trades The COVID-19 pandemic and resultant
consequently increase the usage of
in select products such as IPA and lockdowns presented unique challenges
methanol, a positive for the Company.
Ammonia. Going forward, the Company as well as opportunities for the TAN
Niti Aayog has also drawn out a
plans to expand its own product business. Demand for TAN products was
comprehensive plan to replace 20%
portfolio and trade only in solvents and impacted in H1 FY21 as many industries,
of crude imports by Methanol alone,
commodities that it manufactures. including limestone mines and cement
seen to lead to a reduction in annual
production, quarrying operations, etc.
fuel bill of India by 15% till 2030. Also,
Technical Ammonium Nitrate stopped due to COVID-19 lockdown. The
create around 5 million jobs through
(TAN) index of eight core industries released
methanol production/ application and
by the Office of the Economic Advisor,
distribution services. DFPCL is the world’s 5th largest single
Department for Promotion of Industry
entity TAN manufacturer producing
The total installed capacity for & Internal Trade, was down by 38% in
High Density Ammonium Nitrate
methanol in India stood at 474.30 Apr-20, 21% in May-20 and 12% in
(HDAN), Low Density Ammonium
(000’MT) in 2019-20 and the total Jun-20 compared to the same month
Nitrate (LDAN) and Ammonium Nitrate
production of methanol was at 176.05 the previous year. Demand started to
Melt (AN Melt). The Company is the
(000’MT), growing at a CAGR of 2%, improve post easing of lockdown related
only producer of explosives grade TAN
as per the Annual Report 2020-21 of restrictions and restart of industrial
solids in India & also manufactures
Ministry of Chemicals & Fertilisers. activity in H2 FY21.
Medical-Grade Ammonium Nitrate
IPA Plant

The business ensured required control
on collections and receivables through
structured reviews and tracking,
supported by deploying incentives for
customers to make prompt payments
as well as incentives for the sales
team in the business to ensure timely
collections. This helped the business
to achieve significant improvement in
the working capital cycle. The business
plans to continue with the above
initiatives in the post-COVID era as well.
Despite the challenges posed by COVID-19

on TAN demand in FY2020-21, the business
managed to maintain its revenues at the
levels of FY20, with its EBITDA in FY21
improving compared to FY20. This was
achieved through a slew of measures,
such as competitive pricing, increased
focus on high margin products, lower raw
material prices and overhead cost control
measures. In line with the Company’s
overall strategy to be a solutions provider,
TAN has been focusing on delivering
cost-effective and productive blasting
solutions in chosen market segments
through customised product and service
offerings in Ammonium Nitrate, Explosives,
Nitric Acid Plant Accessories and Blasting Services.
Some of the key initiatives

undertaken by the TAN business
Overall, the demand TAN in coal segment Infrastructure and Cement Sector, the during FY2020-21 are;
remained strong despite the pandemic business was also affected due to
1) Deployment of specially designed
during FY21. This was largely due to Coal unavailability of trucks and drivers for
Bulk Mixing and Delivery (BMD) trucks
India Ltd. (CIL) increasing its overburden product transportation to customers.
to deliver ANFO and High Energy
blasting to expose more coal for production. DFPCL adapted to the situation and
Emulsion blend bulk explosives
The demand for TAN from Limestone increased deployment of rail transportation
directly into the blast hole in mines.
and Iron Ore segments remained under for product movement from plants to
stress throughout FY21 with the decline in customers, ensuring business continuity. 2) Identification of mine and quarry
cement and steel production in the country DFPCL also floated incentive schemes to productivity improvement technical
in FY21 compared to FY20. TAN demand encourage transport service providers to services projects to optimise their
from infrastructure segment was badly prioritise trucks placement. drilling, blasting and downstream
affected due to lack of labour availability costs, which will be delivered in the
During the lockdown, TAN Business
(owing to labour migration during COVID-19 next year.
continued to engage with its customers
lockdown) and liquidity crunch felt across
through Webinars/Seminars on Technical These initiatives are in line with
this segment.
aspects (Usages of Ammonium Nitrate & the business’s strategy to grow in
While the first half of FY2020-21 was optimisation of Blasting, Blast Design, etc.) Infrastructure, Non-Coal Mining and
impacted due to the pandemic, which and Safety aspects (Safe & Effective use of Coal Mining segments in the domestic
resulted in reduced demand from Ammonium Nitrate & Behavioural Safety). market. DFPCL’s TAN Business is the

only supplier of TAN Solids in India oil, since it can be consumed in rock Further, new features are planned to be
along with an extensive licensed blasting. This also saves diesel for the deployed in FY22.
TAN storage and extensively webbed mine, which would have to be used in
Crop Nutrition Business
distribution network. place of waste oil to manufacture ANFO
in the absence of this technology. Each DFPCL is one of the leading
To meet the rising demand for TAN,
kilogram of ANFO can blast much higher manufacturers of NPK and specialty
the Company is setting up a TAN
volume of rock compared to conventional fertilisers in India. The Company’s Crop
manufacturing plant in the Eastern
explosives, allowing more rock to be Nutrition Business housed under its 100%
Coast of India. The plant is expected
blasted with lower consumption of subsidiary, Smartchem Technologies
to start production in 2024 and ideally
Ammonium Nitrate, which has enabled Limited (STL). The business offers a
positioned to capitalise on the strong
the industry to maximise rock production wide range of NP (Nitro Phosphate),
demand growth in the East and
through the available Ammonium Nitrate NPK (Nitrogen Phosphorous Potassium)
adjoining Central regions. This new
in the country. variants, Water Soluble Fertilisers and
TAN plant is also a step taken by the
Bentonite Sulphur to Indian farmers
Company to make India self-reliant for During the FY21, TAN business launched
under its flagship brand Mahadhan.
its TAN demand under the Aatmanirbhar AN Care Portal, a major milestone in the
Bharat Abhiyan. company’s journey towards becoming The Company’s flagship brand
one-stop solution provider to the ‘Mahadhan’ is a household name among
The TAN Business also actively worked
Mining and Infrastructure industries for farmers in its operating geographies,
with its customers for the deployment
their blasting requirements. The portal which is aptly aided by a seamless product
of a technology of using waste oil from
would further evolve over time with the flow through a formidable distribution
the Mines and reprocessing it for use
feedback received from the customers. network of 3,800+ distributors and
with Low Density AN to manufacture
Currently, the AN Care portal includes: 20,000+ retailers across 12 states.
ANFO for blasting applications. Through
(i) Complaint Management System,
this technology, the mines don’t have As part of the strategy to move from
(ii) Feedback/Suggestion System, (iii)
to deal with the environmental issues commodity to value-added products
purchase history, and product details.
associated with the disposal of waste
Farmer in potato farm

and solutions, the Company is steadily Company has been driving the digital The Company is on course to raise
developing innovative products and strategy to connect with farmers via its combined installed capacity with
solutions that aid efficient usage of social media platforms, such as eg. additional 2 lakh MT per year to the current
nutrition, improve soil health and thereby Facebook, YouTube, Apps and WhatsApp. 985,720 MT per year (NP – 325,000 MTPA,
enhance crop productivity. The Company The Company has added more than NPK – 600,000 MTPA and Bentonite
is strengthening its crop-specific and 2 lakh+ followers on Facebook, more than Sulphur – 60,720 MTPA). The Company
stage-specific product portfolio. This 24400 subscribers on YouTube, more than is the largest manufacturer of Bentonite
shift in strategy would help the Company 44,000 downloads of Mahadhan app. Sulphur and a market leader in specialty
consolidate its position in the market, and In addition, farmers are being engaged and water-soluble fertilisers in India.
create a niche for itself, thereby giving the through third-party platforms and crop
Building rapidly on the strength and mass
Company an edge over the competition. specific calling campaigns. The Company
coverage of ‘Mahadhan’ in bulk fertiliser,
It would also garner better product value is continuously working to increase its
the Company introduced a premium brand
for STL. customer engagement through various
‘Smartek’ in value-added fertiliser segment
digital platforms and enhancements are
During FY2020-21, STL has shown in FY2018. Since its introduction, ‘Smartek’
being done on all the platforms, which will
tremendous agility and nimbleness. has rapidly gained mass acceptance for its
be more useful for farmers.
The Company undertook a 360-degree superior farm outcomes and positioned as
approach to engage, educate and During the year, the Company tied up a premium brand. Consequently, its share
empower its stakeholders as the with Samunnati, a specialised Agri in the company’s fertiliser volume and
COVID-19 set new challenges for Value Chain enabler to offer crop-based fertiliser revenues have been improving
the business, especially on the field advisory and access to affordable loans on a sequential basis. During the year,
operations. From building robust digital to farmers under FPOs (Farmer Producer 438 KT of differentiated NPK product,
and social media infrastructure to cost Organisations). This tie-up would cover i.e., Smartek sold against last year sales
optimisation, STL has made sure that farmers under FPOs across 4 states to of 221 KT (growth of 198%) in line with
none of its stakeholders were left alone help them improve yields, quality and Companies strategic decision to move
in a time of crisis. The Company made earnings. As per the Memorandum of from commodity to differentiated fertiliser
significant digital investments to keep Understanding (MoU), the FPOs will be segment, along with enhanced premium
the communication with its stakeholders able to access crop-based advisory and based on value created for the farmers.
uninterrupted. Some of the key initiatives agri-inputs through DFPCL along with
Sold under flagship ‘Smartek’ brand, the
undertaken during the year include: the customised finance options through
superior products have steadily been
Samunnati.
1) For Farmers: Mahadhan App – One - increasing their market acceptance,
Stop Solution for Farmers With two manufacturing locations at farm performance and brand premium.
2) Mahadhan Stars - App & website for Taloja in Maharashtra (Western India) and Furthering on its belief of ‘seeing is
our dealers/retailers Panipat in Haryana (Northern India), Crop believing’, the Company has conducted
Nutrition Business caters to nutritional 25000+ demos of Smartek in the last
3) Mahadhan Connect: It is a portal
needs of farmers across Maharashtra, 3 years. The brand’s cumulative reach
for Dealers to track their day-to-day
Karnataka, Haryana and Gujarat. now stands at 2.5+ million farmers.
transaction.
4) Complaint Management System – An
integrated system for dealers to raise Smartek Sales Volume Growth (KT)
their complaints.
5) Digital webinars, dealer meet, demo 438
site meetings and direct farmer
calling were arranged to connect
with farmers and dealers 221
During the year, the Company actively 123
engaged with 65 lakh farmers by the
end of FY2020-21. Around 18,000 online 13
webinars with farmers and close to 1000
FY18 FY19 FY20 FY21
online meetings were conducted to reach
out to over 15,000 channel partners. The

Brand superiority Smartek, coupled with
increasing customer trust and brand
salience resulted in a 100% volume
growth. Sales of Smartek reached 438,000
MT for FY20-21.
The Company’s flagship ANP Nitro

Phosphate fertilisers enjoy a steady
demand in its operating geographies
for well over 25 years. The Business
Unit undertook quality and packaging
upgrade in ANP during the year. Sales of
ANP fertiliser recorded a handsome 12%
growth in FY20-21 to reach 244,000 MT. Creaticity Mall
During the year under review, the

Company launched ‘Super-fast Bensulf’. inflicted challenges to a great extent. offers a wide range of products for
The brand was well received in the home lifestyle, and houses nearly 100
With an overarching focus nutrient use
market with encouraging farm results. national and international brands.
efficiency and a slightly narrower focus
The Company decided to shift the whole
on crop specific stage specific nutrition Creaticity Mall was not an exception to
of its ‘Super-fast Bensulf’ production
solutions, the Company’s research teams the impact of COVID-19 and complied
for retail sales only. Sales of Bentonite
continued their good work towards with regulatory closure for major part of
recorded an impressive 28% growth to
developing the next-generation products. the first half of the year followed by Covid
reach 30,106 MT in FY20-21.
The success came in form of four new induced protocols and compliances post
The Company also launched certain product launches during FY20-21, three lockdown for the entire year. Specific
crop specific and stage specific grades in the Specialty fertiliser segment and focus was directed at retaining the brands
for tomatoes and grapes. Developed one in NP/NPK fertiliser segment. The and retailers who were considering an
completely in-house and keeping in mind new launches include ‘Smartek 14.28.00’, exit in the trying circumstances and
stage specific requirements of respective ‘Superfast Bensulf’, ‘Grape Crop Specific successful retention of over 95% was
crops, these newly launched grades Package’ (3 Grades) and ‘Tomato Crop achieved during the year through a series
shall help the Company consolidate its Specific package’ (2 Grades). of measures.
position in specialty product segment and
Development work on three more Despite the headwinds, targeted efforts at
command higher premium. Sales of crop
specific grades is at an advanced stage consumer engagement were undertaken,
specific and state specific grades grew
with respective field trails planned for through various initiatives such as the
by a whopping 170% to reach 1,018 MT
FY21-22. The Company is also working launch of Creaticity’s own online platform
during the year.
on crop nutrient solutions in bulk to encourage assisted commerce, virtual
The results of all-round development fertiliser segment. Initial trials stand tours and live chat options apart from
and progress made by the Crop Nutrition complete with FCO approval also in new lead management and CRM tool to
Business in recent years and its steady place. The launch is scheduled for the target serious customers. Creaticity also
and resilient focus amid pandemic during third quarter of FY21-22. actively demonstrated thought leadership
FY20-21 powered it with 6 consecutive by engaging with industry stakeholders
Value Added Real Estate
profitable quarters in a row. Segment through a first of its kind Home & Home
(VARE)
margins improved from 1.7% in FY20 to plus conclave, bringing together Industry
7.5% in FY21. The margin improvement DFPCL’s Value Added Real Estate captains to share and exchange views
was aided by an improved sales mix, (VARE) business is predominantly on handling the pandemic induced
value-based pricing and a slew of cost focused on the Company’s lifestyle market situation and also unveiled an
optimisation measures. Favourable retail centre, Creaticity (formerly known ebook titled #future of homes, with the
monsoons, Government reforms and as Ishanya) in Pune, Maharashtra. voices of several Industry leaders from
adequate water levels in our operating Creaticity is India’s first and largest the furniture and furnishing categories
geographies helped offset pandemic- destination for Home & Interiors. It captured in the written word.

FINANCIAL REVIEW
Despite the various challenges requirements. The Crop Nutrition

incurred due to the ongoing COVID-19 business has seen a growth of 38% in
pandemic, Deepak Fertilisers and FY21 as against (16%) last year.
During the year, the industrial chemicals
(DFPCL), has achieved revenues
business grew by 15%. The IC business
of ` 5,808 Crores in FY2021. The
saw huge growth in the hygiene
Company’s consolidated highest-ever
segment as well as the pharmaceutical
profit stood at ` 406 Crores. The strong
and fine chemicals industry.
performance of the Company is backed
by the various cost and operational DFPCL’s mining chemicals business too
efficiency measures undertaken by makes up to 26% of the overall revenue
DFPCL over the year. The Company has contribution, too registered healthy
also been investing into technology to growth in FY21 with ` 1495 Crores
transform its processes, and align to revenues. The Company witnessed
the ‘new normal’. significant demand for its Technical
Ammonium Nitrate (TAN) from the
Moreover, all three sectors of the
infrastructure and power sectors.
Company got well-aligned to the
country’s growth story and getting Overall, the good monsoons during
the much-needed tailwind for stellar FY21 along with the shift away from
performance. In terms of fertilisers China for chemicals and government’s
business, DFPCL’s business over the push for Aatmanirbhar Bharat and
year has well-aligned itself to the agricultural reforms enabled a well-
mid-income group growth in foods rounded growth despite the pandemic
and vegetables, horticulture and crop disrupting supply chains and life.
KEY FINANCIAL RATIOS (figure in `)
Consolidated Performance FY20-21 FY19-20
Chemical Revenue 3,157 Crores 2,744 Crores
Fertiliser Revenue 2,637 Crores 1,912 Crores

Chemical Segment Margin* 744 Crores 414 Crores
Fertiliser Segment Margin* 198 Crores 33 Crores
*Segment margins as per financials; represents segment Profit Before Tax (before
finance costs and unallocable expenditure)
Parameters FY20-21 FY19-20
Debtors turnover (x) 5.32 3.51

Inventory turnover (x) 8.79 6.20
Interest coverage ratio (x) 5.26 2.30
Current ratio (x) 1.37 1.01
D/E ratio (total Debt Equity Ratio) (x) 0.93 1.34
K8 Plant
Operating Margin (%) 12.80 5.35
Net Margin (%) 7.00 1.90
Return on net worth (%) 16.65 4.16
96 36
| Deepak Fertilisers And Petrochemicals Corporation Limited
| Deepak Fertilisers And Petrochemicals Corporation Limited
KEY PERFORMANCE METRICS
Consolidated Performance FY20-21 FY19-20
Total revenue (` Crores) 5,808 4,685

EBITDA (` Crores) 955 464
PBT (` Crores) 588 103
PAT (` Crores) 406 89
Earnings per share (`) 41.47 9.58
Sales Volume in MT Production Volume in MT
Products FY20-21 FY19-20 FY20-21 FY19-20
Ammonia NA NA 86,840 98,808

Methanol 1,068 18,239 2,821 18,086
Iso Propyl Alcohol 55,025 61,584 55,184 60,387
Propane 9,537 10,097 9,641 10,320
Dilute Nitric Acid 53,284 63,899 625,915 653,831
Concentrated Nitric Acid 142,850 138,229 154,051 153,078
Strong Nitric Acid (SNA) 23,240 27,568 23,306 24,846
Technical Ammonium Nitrate 427,801 436,203 424,451 440,212
Bulk Fertilisers Traded 152,044 84,311 - -
Nitro Phosphate Fertiliser 244,684 219,996 235,127 212,568
NPK Fertiliser 441,091 286,226 419,990 273,142
Bentonite Sulphur 30,106 23,500 29,248 22,721
Liquid Carbon Dioxide 45,295 55,254 45,183 55,259
Water Soluble Fertiliser 458 736 - -
Water Soluble Fertiliser (traded) 27,418 23,860 NA NA
Windmill Power ('000 KWH) 10,088 14,870 10,382 15,015
Traded Chemical 61,283 91,807 NA NA
REVENUE MIX FOR KEY PRODUCTS
Products FY20-21 FY19-20
ANP, NPK, Bensulf, WSF 37.37% 35.49%

TAN 25.74% 24.66%
Bulk Chemical Trading 8.61% 10.76%
Nitric Acid 8.98% 10.29%
IPA and Propane 10.67% 9.60%
Outsourced Bulk Fertilisers 5.72% 4.22%
Outsourced Agro Speciality 2.55% 2.89%
Others 0.32% 1.16%
Methanol 0.06% 0.93%

BUSINESS OUTLOOK putting efforts to reduce waste across our An internal Risk Management
processes and convert them into value- Committee, comprising of key Business
Our operational and cost-efficiency added products. The pharmaceutical and functional heads is responsible for
measures alongside the integration sector is a market of potential for us as we the risk management process, including
of newer technologies and processes look at expanding our pharma portfolio risk identification, impact assessment,
have enabled us to mitigate the adverse with our IPA-based downstream products effective monitoring of existing control
impact of the COVID-19 pandemic in the hygiene segment. and implementation of risk mitigation
during FY2020-21. We expect to plans, if any, and risk reporting. Further,
continue reap benefits of our measures With healthcare and agriculture to
the risk management process has been
and evolve stronger and more efficient remain the key sectors of focus for
integrated with strategic business
in the coming year. the government, and its emphasis on
planning activities. Key internal and
further boosting country’s infrastructure
external risks, inherent to the strategy
All our three businesses are well aligned and Aatmanirbhar Bharat Abhiyan, we
for each of the business verticals, are
to India’s growth story and we expect remain confident of continuing our
identified and the underlying critical
them to continue their growth trajectory growth trajectory on the back of a robust
assumptions of the strategies are also
with robust financial performance. One economic outlook and government’s
evaluated.
of the key focus areas for DFPCL in milestone industry reforms.
the coming years would be to look at The Risk Management Committee
sustainable chemical solutions across RISK MANAGEMENT
carries out a detailed review of the risk
end-user industries that allow the management practices and evaluates
Your Company has put in place a
Company to move into the future with the implementation status as reported
robust Risk Management framework
valour and responsibility. by the Internal Committee. The identified
to traverse the dynamic business
environment comprising regulatory key risks at the entity level are evaluated
We are diversifying our product
changes, technological disruptions and on quantitative, semi-quantitative
portfolio to look into crop-specific and
advancements, and financial markets. and qualitative aspects of impact for
stage-specific solutions with the aim
Our sustainable model is built with timely decision on mitigation. The Risk
to be the preferred specialty chemicals
an objective to absorb market vitality Management Committee apprises the
solutions partner for our customers.
and other uncertainties. The Risk Board on the effectiveness of the Risk
Our transitional strategy is unfolding well Management Committee of the Board is Management Framework, significant
and we are confident to further strengthen responsible to ensure that the Company entity level risks identified, if any, and the
our offerings and position them as a has an appropriate and effective Risk risk response mechanisms implemented
‘service’ than a ‘commodity’. We are Management framework. by the Company.
Cogen Plant

STRENGTHS, OPPORTUNITIES, THREATS, RISKS AND CONCERNS
Strengths Opportunities
• Strong legacy of over four decades backed by • Growth in the Indian economy presents significant
robust knowledge and rich extensive experience in opportunities for DFPCL since it caters to the critical
manufacturing and financial prudence sectors of the country
• Strong management team with in-depth industry • Transition from commodity to value-added and
experience differentiated products and services
• Well established and trusted brand among its end • Manufacturing shift of chemical intermediates to
users across business segments India becoming more and more evident with time
• Robust dealer network and loyal customer base • Government’s initiatives to improve agricultural
across market segments in India productivity by improving soil nutrient balance,
encouraging NPK sector
• Diversified product portfolio, servicing consumers
across diversified sectors • Government’s Aatmanirbhar Bharat and Pharma
Vision 2023 to strengthen domestic industries and
• Integrated best world-class technologies in processes
encourage Made in India
across business
• Scaling up exports in TAN
• Location advantage due to proximity to key
customers • Strengthening of market position via diversification
and balanced investments
• India’s largest manufacturer of IPA and TAN; only
manufacturer of TAN Solids and the 2nd largest Nitric • Backward integration to produce Ammonia in-house
Acid producer in South East Asia
• Forward integration to develop a comprehensive
• Well established sourcing channels, port and gas product portfolio
pipeline infrastructure for importing raw materials
• Enhanced focus on digital to better connect with end
consumers via social media and mobile applications
• Growing area under micro irrigation and demand for

nutrient based fertilisers
Threats Risks and Concerns
• Geopolitical and trade tension led by COVID-19 • Disruption of supply chains due to ongoing COVID-19
pandemic pandemic
• Regulatory oversight in fertilisers and TAN business • Dependence on imported raw materials like Ammonia,
Phosphoric Acid and Natural Gas
• Abnormal volatility in prices of Ammonia, Natural Gas
and USD/INR exchange rate impacting raw material • Working capital intensive business with dependence
pricing— on government subsidy—
• Potential threat of new entrants which could adversely • Lag effect of passing the increase in raw material
impact leading market position in several products— price to end customers
• Getting timely major regulatory clearances for new

capex plan for achieving commercialisation schedules

HUMAN RESOURCES and programs included the reward mid-level talent, we deploy a four-
and recognition, leadership month training program ‘Prabhavak’,
2020-21 [FY21] has been a year of development program, focus aimed at enhancing the people
unprecedented challenges, resilience on performance management management skills of our managers.
and changes. At one end, there were framework and employee capability To attract and harness talent at the
challenges due to COVID-19 that build up. Our Sales Academy and entry level, we deployed a 12-month
impacted people across the world as Technical Training Center were structured training program ‘NEEV’.
well as our operations. It made us learn optimally leveraged in developing
how to co-exist amidst uncertainty and It is heartening to see that our all-
skills and competencies aligned to
leverage the opportunity to transform round efforts have resulted into high
our business objective and culture
and speeding our endeavour to create morale and engagement levels of
change agenda.
an engaging, enriched, and empowered our workforce. The results of our
work culture. • Adopting Work from Home hybrid efforts on capacity building, culture
working model: Having securely change and automation were evident
The core human resource management transitioned our human capital to in the improving performance of our
focussed on: the safety of their homes during people, the capability scores, product
the nationwide lockdown at the innovations, customer outreach and
• Overall employee wellness: Ushering
beginning of FY21, we gradually cost savings of the Company. Our
into the new financial year under
evolved a hybrid model of working. attrition rate came down to 8.43%
the shadow of the pandemic, we
To adequately engage and support during FY21, an improvement of 124
prioritised employee safety and
both onsite and WFH employees, we basis point from the previous year.
wellbeing as a topmost concern. Our
undertook a slew of new initiatives
employee safety regime transcended Going forward, we foresee
amidst testing times. These
its usual ambit of workplace and opportunities in leveraging remote
include virtual employee and family
employee to also cover employees’ working, digitalisation, and data
connect through Fun Contests,
homes and their families. From the analytics. Our focus would be to
Online Townhalls, Virtual Reward
usual employee safety, the regime further improve employee experience
& Recognition, Student Felicitation
extended to also cover emotional and sharpening performance through
Program, Work from Home Support,
well-being and medico-nutritional lean Organisation redesign.
among others.
support.
INFORMATION TECHNOLOGY
• Cost Optimisation: In a bid to drive
• Embracing automation and & AUTOMATION
innovation at the workplace through
technology adoption across
employee involvement, focused Last year, DFPCL witnessed a
our people processes: To drive
projects across diverse areas significant increase in the adoption
efficiencies and effectiveness,
were undertaken. A slew of small of robust technology as the COVID-19
the year witnessed a marked
and big ideas were translated into pandemic posed challenges to the
acceleration in digitisation of our
executable actions during the year. traditional way of working. At the
people process doctrine, coupled with
At the same time, Cross Functional organisation level, DFPCL invested
unprecedented technology adoption
Teams were formed to focus on key time, effort, and resources to
among our employees. Acting with
improvement areas. implement new tools and technologies
a sense of urgency, we invested our
time, effort, and resources in shaping in business and people operations.
• Leadership Development Program:
an IT roadmap for HR during the year We continued to deploy our three- Among the various processes, HR was
and consequently digitalised many prolonged approach towards one that saw significant technology
people processes. harnessing talent at various levels. disruption with the Company drawing
Aimed to strengthen our leadership up an HR IT roadmap to deploy
• Driving Employee Engagement:
talent pool at the senior level, we technology to enhance efficiency and
Through reinforcing we continued
launched a “Business Leadership to improve the employee experience.
our focus on employees, the core
Development Program” that focuses
asset of our Company, through our
on developing functional excellence, Other than HR, marketing too saw
various employee engagement
business excellence and people significant focus on digital as the
programs. Some of these initiatives
management competencies. For movement of people and supply

chain challenges surfaced due to • Enhanced sales force enablement In addition to this, the Company
the restrictions impeded by the through mobility platform. also has a third party managed SOC
pandemic. (Security Operations Center) which
• Launched Healthplus app for
proactively identifies any threats. The
Some of the key technology initiatives tracking health declaration and
Company aims to:
during the year include: medical check-up of all employees
as per government guidelines on • Enhance gateway level security with
Sales & Operations Planning – Anaplan COVID-19. latest advance UTM (unified threat
Digital Connected Planning Platform:
Smart Factory/Industry 4.0 Initiative: management) capabilities
Deliver a demand driven supply • Implement advance Email anti-spam
Implemented various pilot projects
chain to enable the delivery of Sales solution with the capability to configure
and in process of rolling out across all
Forecast Improvement, Logistics Cost custom rules and policies
manufacturing operations to improve
Optimisation, Inventory Optimisation,
reliability, productivity, yield and • Implement the latest version of
Meeting Customer Demands and SLA.
quality. Microsoft Windows AD Servers
SAP S/4 HANA implementation:
Digital Creaticity: • VAPT, Network review and ISO27001
Successful implementation and compliance
Implemented various digital initiatives
adoption of enterprise wide ERP • Implement Threat Intelligence, MDM
in Creaticity to improve customer
platform for digitalising core business solution, Email DLP solution, and NAC
engagement during the pandemic
processes, and enabling business users solution
period. Some key initiatives included
active decision support in real-time.
Creaticity online portal for assisted • IS Assessment & Auditt
Finance Planning & Accounting – commerce and virtual visualisation of
INTERNAL CONTROL
Anaplan Digital Connected Planning physical spaces.
SYSTEMS & THEIR ADEQUACY
Platform:
Some of the tools and initiatives that
The scope of internal controls
Digitalisation of Business Planning and are underway or planned for future
and audit checks are well defined
Consolidation under implementation to include, CRM Platform, Bizom Sales
within the organisation and there
automate processes related to Budget Force Productivity enhancements,
is an emphasis to ensure the key
Cycle, Annual Operating Plan, Rolling Gamification Platform for Customer/
management personnel adhere to
Forecast and Financial Dashboards Employee Engagement, Social Media
the best practices. The Company
for margin management and costs Marketing Platform, Social Media
has adequate internal controls that
controls. Listening Platform, eCommerce
commensurate with the nature of the
Engagement, Digital Marketing, Dealer
Account Payables Centralisation and Company’s business and size of the
Loyalty Programs and Farmer Loyalty
Automation: operations, to effectively provide for
Programs, and Dealer/Retailer/Farmer
the safety of the assets, reliability of
Implementation in progress to 360 Program.
financial transactions with adequate
streamline Finance AP processes and checks and balances, compliance
DFPCL follows a very stringent process
deliver efficiency and productivity with prevalent statutes, regulations,
for all IT initiatives aimed at delivering
benefits. management authorisation, policies
business benefits – whether tangible
or intangible in terms of cost reduction, & procedures, and to ensure optimum
Mobility enablement:
customer engagement, revenue use of the available resources.
Various enhancements to Farmer enhancement, faster time to market,
The Audit Committee of the Board
connect mobile app (Mahadhan) to controls, efficiencies, productivity,
is responsible for establishing,
improve user experience and provide automation. The Company is very
maintaining, and reviewing the
digital functionality to farmers. For proactive in the approach towards
Company’s system of internal
example, Soil Test Report, Dosage Cyber security and conducts periodic
controls and directing the Internal
Calculators and Farmer Loyalty audits for Cyber security via a third
Audit function. The Audit Committee
Program. party. Performa a VAPT (Vulnerability
approves the overall internal audit
Assessment and Penetration Testing)
• Launched mobile digital R&D plan, including risk assessment, scope,
is conducted twice a year.
platform for field trails. methodology and frequency of audits.

Control Room
The Company has appointed Ernst & has upgraded SAP ERP system to CAUTIONARY STATEMENT
Young LLP, India to execute internal improve operational efficiencies
The document contains statements about
audit reviews as per the approved and business decision-making
expected future events, financial and
Internal Audit Plan. Further, the Audit capabilities across financial reporting,
operating results of Deepak Fertilisers And
Committee periodically reviews organisational structure and various
Petrochemicals Corporation Limited, which
audit observations along with business processes which are reviewed
are forward-looking. By their nature, forward-
recommendations, implementation and validated by external experts.
looking statements require the Company to
status, adequacy of internal controls make assumptions and are subject to inherent
The Company has also adopted
and keep the Board informed of its risks and uncertainties.
Internal Financial Control framework
observations, if any, from time to time.
in line with section 134(5)(e) of the There is significant risk that the assumptions,
The internal audit department follows- Companies Act, 2013 to authenticate predictions and other forward-looking
up to ensure corrective measures implementation of company policies statements will not prove to be accurate.
are implemented in the respective across businesses, protect intellectual Readers are cautioned not to place undue
business functions as per the report property, prevent and detect frauds reliance on forward-looking statements as a
generated post the audit to strengthen and errors and ensure transparency number of factors could cause assumptions,
actual future results and events to differ
the overall framework. The objective of accounting records. Based on its
materially from those expressed in the forward-
of the internal control framework evaluation (as defined in section 177
looking statements. Accordingly, this document
is to align the strategic goals with of the Companies Act, 2013 and Clause
is subject to the disclaimer and qualified in its
operations. 18 of SEBI Regulations 2015), the
entirety by the assumptions, qualifications and
Audit Committee has concluded that, risk factors referred to in the management’s
The Company has budgetary control
as of March 31, 2021, DFPCL’s internal discussion and analysis of Deepak Fertilisers
system to monitor revenue and
financial controls were adequate and And Petrochemicals Corporation Limited’s
expenditure against approved budget on
operating effectively. Annual Report, FY2020-21.
an ongoing basis. Further, the Company
102
42 || Deepak
DeepakFertilisers
FertilisersAnd
AndPetrochemicals
CorporationLimited
Limited
CORPORATE GOVERNANCE
The Company firmly believes that business is built on ethical values and principles of transparency. Good Governance is an
essential ingredient of any business, a way of life rather than a mere legal compulsion. The Company’s philosophy of good
Corporate Governance aims at establishing a system which will assist the management to fulfill its corporate objectives as well as
to serve the best interest of the stakeholders at large viz. Shareholders, Customers, Employees, Society, Suppliers, Lenders etc.
BOARD OF DIRECTORS
The Company’s Board composition resonates Board diversity and is best demonstrated in the well balanced and independent
structure of the Company’s Board of Directors which has a very balanced representation of Executive, Non-Executive and
Independent Directors for enhancement of organizational capabilities.
None of the Directors on the Board of the Company is a member of more than 10 Committees or a Chairman of more than 5
Committees across all Companies in which they are Directors. The changes in the composition of the Board during the year and
its composition as on 31st March, 2021 was as follows:
Sr. No Category Name of Director

1 Promoter and Executive Director Shri S. C. Mehta, Chairman & Managing Director
2 Promoter & Non-Executive Director Smt. Parul S. Mehta
3 Non-Executive and Non Independent Shri M. P. Shinde
Director
4 Independent Directors Shri Partha Bhattacharyya
5 Shri Berjis Desai
6 Shri Ashok Purwaha
7 Shri Alok Perti
8 Dr. Amit Biswas
9 Shri Bhuwan Chandra Tripathi
10 Shri Sujal Shah1
11 Smt. Varsha Purandare2
12 Shri Mahesh Chhabria3
13 Shri Pranay Vakil4
14 Smt. Renu Challu5
1 The Board, at its meeting held on 30th June, 2020, appointed Shri Sujal Anil Shah as an Independent Director w.e.f. 30th June, 2020.
2. The Board, via Circular Resolution on 27th January, 2021, appointed Smt. Varsha Vasant Purandare as a Woman Independent Director w.e.f.
31st January, 2021.
3. Shri Mahesh Chhabria, on account of his active involvement with the Kirloskar group and other pre-occupation, has resigned as the director of the
Company with effect from 31st July, 2020.
4. Shri Pranay Vakil, on completion of his second term as an Independent Director, has ceased to be director of the Company w.e.f. 21st September,
2020.
5. Smt. Renu Challu on account of her personal reasons has resigned as director of the Company w.e.f. 31st October, 2020.
Attendance of Directors at the Meetings of Board of Directors held during the Financial Year 2020-2021 and the Annual General
Meeting (AGM) held on 21st September, 2020 are as follows:
Eight Board Meetings were held during the Financial Year 2020-2021. These meetings were held on 21st April, 2020, 25th May,
2020, 30th June, 2020, 31st July, 2020, 11th September, 2020, 3rd November, 2020, 3rd February, 2021 and 26th March, 2021. The gap
between any two meetings has been less than one hundred and twenty days.

The record of attendance of Directors and Directorships of Public Limited Companies and Membership / Chairmanship of
Board Committees:
Sr. Name of Director No. of Attendance No. of No. of No. of No. of

No. Board at the AGM Directorships Directorships membership Chairmanship
Meetings in listed of other of other Board of other Board
attended companies Companies Committees# Committees#
including this Including
Company Private
Companies$
1. Shri S. C. Mehta 8 Yes 1 12 0 0
2. Shri Partha Bhattacharyya 8 Yes 3 5 3 3
3. Smt. Parul S. Mehta 8 Yes 1 7 0 0
4. Shri M. P. Shinde 8 Yes 1 1 2 0
5. Shri Ashok Purwaha 8 Yes 1 1 0 0
6. Shri Berjis Desai 6 Yes 6 6 8 4
7. Shri Alok Perti 8 Yes 2 3 2 1
8. Dr. Amit Biswas 8 Yes 1 1 1 0
9. Shri Bhuwan Chandra 7 Yes 1 0 0 0
Tripathi
10. Shri Sujal Anil Shah @ 5 Yes 6 5 9 3
11. Smt. Varsha Purandare* 2 N.A. 4 4 7 3
12. Shri Mahesh Chhabria % 4 N.A. N.A.
13. Shri Pranay Vakil& 5 No N.A.
14. Smt. Renu Challu+ 3 Yes N.A.
$ Excludes directorships of foreign companies and dormant companies.

# Includes only Audit Committee and Stakeholders’ Relationship Committee.
@ Shri Sujal Anil Shah was appointed as an Independent Director w.e.f. 30th June, 2020.
* Smt. Varsha Purandare was appointed as an Independent Director w.e.f. 31st January, 2021
% Shri Mahesh Chhabria resigned as director of the Company w.e.f. 31st July, 2020.
& Shri Pranay Vakil on completion of his term ceased to be the Director of the Company w.e.f. 21st September, 2020.
+ Smt. Renu Challu resigned as the director of the Company w.e.f. 31st October, 2020.
Notes:
As per declarations received, none of the directors serves as an independent director in more than seven listed entities. Further,
the Managing Director of the Company does not serve as an independent director in any other entity.

The names of listed entities where the directors of the Company hold directorships including the category of directorships as
on 31st March, 2021 are given below:
Sr. Name of the director Name of listed entities Category

No.
1 Shri S. C. Mehta Deepak Fertilisers And Petrochemicals Chairman & Managing Director
Corporation Limited
2 Smt. Parul S. Mehta Deepak Fertilisers And Petrochemicals Non-Executive Non Independent Director
Corporation Limited
3 Shri Berjis Desai Deepak Fertilisers And Petrochemicals Independent Director
Corporation Ltd
Praj Industries Limited Independent Director
Edelweiss Financial Services Limited Independent Director
The Great Eastern Shipping Company Non-Executive Non-Independent Director
Limited
Man Infraconstruction Limited Independent Director
Jubilant Food Works Limited Independent Director
4 Shri Partha Bhattacharyya Tide Water Oil Co. India Limited Independent Director
Ramkrishna Forgings Limited Independent Director
Deepak Fertilisers And Petrochemicals Independent Director
Corporation Limited
5 Shri Ashok Purwaha Deepak Fertilisers And Petrochemicals Independent Director
Corporation Limited
6 Shri M. P. Shinde Deepak Fertilisers And Petrochemicals Non-Executive Non-Independent Director
Corporation Limited
7 Shri Alok Perti Deepak Fertilisers And Petrochemicals Independent Director
Corporation Limited
Shalimar Paints Limited Independent Director
8 Dr. Amit Biswas Deepak Fertilisers And Petrochemicals Independent Director
Corporation Limited
9 Shri Bhuwan Chandra Tripathi Deepak Fertilisers And Petrochemicals Independent Director
Corporation Limited
10 Shri Sujal Anil Shah Amrit Corp. Limited Independent Director
Ironwood Education Limited Independent Director
Deepak Fertilisers And Petrochemicals Independent Director
Corporation Ltd
Amal Limited Independent Director
Hindoostan Mills Limited Independent Director
Mafatlal Industries Limited Independent Director
11 Smt. Varsha Purandare Deepak Fertilisers And Petrochemicals Independent Director
Corporation Limited
Orient Cement Limited Independent Director
Shaily Engineering Plastics Limited Independent Director
The Federal Bank Ltd Independent Director

Core Skill / Expertise / Competencies of the Board of Directors
As required by Schedule V of the amended SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the
following is the list of core skills / expertise / competencies identified by the Board of Directors in the context of the Company’s
business and the said skills are available with the Board of Directors:
Audit & Risk Management, Corporate Governance, CSR & NGO matters, Finance & Taxation, Global Business Leadership,
Human Resources, Law, Management & Strategy, Operations & Engineering, Regulatory & Government matters, Research &
Development, Sales, International Business and Business Management.
Further, SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 mandates the names of directors who have
such skills / expertise / competence shall be disclosed, which are as below:
However, the absence of a mark against a director’s name does not necessarily mean the director does not possess the
corresponding qualification and skill.
Area of Expertise
Director Audit & Risk Corporate CSR & Finance Global Human Law Management Operations Regulatory & Research & Sales International
Management Governance NGO & Business Resources & Strategy & Government Development Business
matters Taxation Leadership Engineering matters
Shri S. C. Mehta        
Smt. Parul S. Mehta      
Shri Berjis Desai             
Shri Partha             
Bhattacharyya
Shri Ashok Purwaha            
Shri M. P. Shinde            
Shri Alok Perti             
Dr. Amit Biswas            
Shri Bhuwan             
Chandra Tripathi
Shri Sujal Anil Shah        
Smt. Varsha            
Purandare
Committees of Board of Directors
Audit Committee
Brief description of terms of reference:
The Company has an Audit Committee comprising of three directors, majority of which are Independent. The Committee is
headed by Shri Partha Bhattacharyya after cessation of directorship of Shri Mahesh Chandra Chhabria w.e.f 31st July, 2020 who,
prior to his cessation as director was the Chairman of the Audit Committee. The terms of reference of Audit Committee is in
accordance with Regulation 18 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended) and
Section 177 of Companies Act, 2013 which, inter alia, includes to oversee the Company’s financial reporting process, to review
Directors’ Responsibility Statement, changes, if any, in accounting policies and reasons for the same, qualifications in the draft
audit report, performance and independence of statutory and internal auditors, reports of the Company’s internal auditors, cost
auditor and financial statements audited by the statutory auditors and also to review the information relating to Management
Discussion and Analysis of financial statements and results of operations, statement of related party transactions and internal
control systems.

The composition of the Committee as on 31st March, 2021 and the attendance of the members at the meetings held are as
follows:
Name of Director Category No. of meetings held Whether attended

during the tenure last AGM
Held Attended
Shri Mahesh Chhabria, Chairman1 Independent Director 4 4 No
Shri Pranay Vakil 2
Independent Director 5 5 No
Shri Partha Bhattacharyya, Independent Director 9 9 Yes
Chairman3
Shri M.P. Shinde Non-Executive Non-Independent Director 9 9 Yes
Shri Sujal Anil Shah4 Independent Director 6 6 Yes
1. Shri Mahesh Chhabria, on account of his active involvement with the Kirloskar group and other pre-occupation, has ceased to be the director of
the Company w.e.f. 31st July, 2020 and also ceased to be the Chairman and member of Audit Committee
2. Shri Pranay Vakil, on completion of his Second Term as Independent Director, ceased to be director w.e.f. 21st September, 2020 and also ceased
to be the member of the Audit Committee
3. Shri Partha Bhattacharyya was appointed as the Chairman of the Audit Committee w.e.f. 31st July, 2020
4. Shri Sujal Anil Shah was appointed as the member of the Audit Committee w.e.f. 31st July, 2020
Besides the above, Chairman and Managing Director and the Chief Financial Officer (CFO) are permanent invitees to Audit
Committee Meetings. The representatives of Statutory Auditor, Internal Auditor and Cost Auditor attend such meeting of the
Audit Committee, where matters concerning them are discussed.
Stakeholders Relationship Committee
Brief description of terms of reference
Pursuant to provisions of Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
the Stakeholders Relationship Committee was constituted to specifically look into redressal of complaints related to transfer of
shares, non-receipt of dividends, non-receipt of annual report, etc. received from security holders and to improve the efficiency
in service to security holders.
The terms of reference of Stakeholders Relationship Committee are in line with provisions of Companies Act, 2013 and SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015 which includes inter alia, the following:
1. Resolving the grievances of the security holders,
2. Review of measures taken for effective exercise of voting rights by shareholders;
3. To review measures taken for effective exercise of voting rights by shareholders; and
4. To review various measures and initiatives taken by the Company for reducing the quantum of unclaimed dividends and
ensuring timely receipt of dividend warrants / annual reports / statutory notices from the shareholders of the Company.
Constitution Constituted by the Board of Directors of the Company at its

meeting held on 22nd January, 2001.
Composition, Names of Members and record of attendance Comprises of Directors and details as provided under:
during the year

During the year under review, one Committee Meeting was held on 11th December, 2020. The attendance of the Members was
as follows:
Name of Director No. of Meetings held during tenure No. of Meetings attended
Shri Pranay Vakil, Chairman 1
N.A. N.A.
Shri Partha Bhattacharyya2 N.A. N.A.
Shri Berjis Desai 3
1 1
Shri. M. P. Shinde 4
1 1
Dr. Amit Biswas 5
1 1
Smt. Renu Challu6 N.A. N.A.
to be the member and Chairman of the Stakeholders Relationship Committee
2. Shri Partha Bhattacharyya ceased to be the member of the Stakeholders Relationship Committee w.e.f. 31st July, 2020
3. Shri Berjis Desai was appointed as the Chairman of the Stakeholders Relationship Committee w.e.f. 11th September, 2020
4. Shri M P Shinde was appointed as the member of the Stakeholders Relationship Committee w.e.f. 3rd November, 2020
5. Dr. Amit Biswas was appointed as the member of the Stakeholders Relationship Committee w.e.f. 11th September, 2020
6. Smt. Renu Challu ceased to be the director of the Company w.e.f. 31st October, 2020 and also ceased to be the member of the Stakeholders
Relationship Committee
Details of complaints received during the financial year 2020-21 are as follows
Nature of complaints No. of complaints No. of complaints not solved to No. of pending
received the satisfaction of shareholders complaints
Transfer of shares 1 NIL NIL
Non-receipt of annual report NIL NIL NIL
Non-receipt of dividend warrants 3 NIL NIL
Issue of duplicate share certificates NIL NIL NIL
Others (relates to non-receipt of shares, demat, 13 NIL NIL
change of address, Bank details, signature,
correction of name etc
Nomination and Remuneration Committee
The terms of reference of Nomination and Remuneration Committee is in accordance with provisions of Section 178 of
Companies Act, 2013 and Regulation 19 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which
inter alia, includes to identify persons who are qualified to become directors and who may be appointed in senior management
in accordance with the criteria laid down, recommend to the Board of Directors their appointment / removal and shall carry
out evaluation of every director’s performance and to formulate the criteria for determining qualifications, positive attributes
and independence of directors and recommend to the Board of Directors policy relating to remuneration for the directors, key
managerial personnel and other senior officials.
Constitution Constituted by the Board of Directors of the Company at

its meeting held on 31st July, 2014.
Composition, Names of Members and record of attendance Comprises of Independent Directors and details as pro-
during the year vided under :

During the year under review, Four Committee Meetings were held on 12th May, 2020, 30th June, 2020, 3rd November, 2020 and
3rd February, 2021.
Shri Berjis Desai, Chairman 4 4
Shri Pranay Vakil1 2 2
Dr. Amit Biswas 4 4
Shri Sujal Anil Shah 2
2 2
to be the member of the Nomination and Remuneration Committee
2. Shri Sujal Shah was appointed as the Member of the Nomination and Remuneration Committee w.e.f. 21st September, 2020
Nomination and Remuneration Policy is available on the website of the Company www.dfpcl.com.
Project & Funding Committee
The terms of reference of Project & Funding Committee, inter alia, includes, to evaluate periodically projects proposed to be
taken up by the Company, to review ongoing projects, consider proposals for funding of the projects and recommend to the
Board of Directors for consideration and approval of new projects.
Constitution Constituted by the Board of Directors of the Company

with effect from 15th July, 2003.
during the year
During the year, One Committee Meeting was held on 10th July, 2020. The attendance of the Members were as follows:
Shri Partha Bhattacharyya, Chairman 1
1 1
Shri Ashok Purwaha2 1 1
Shri Alok Perti 1 1
Shri. Bhuwan Chandra Tripathi 3
N.A. N.A.
1. Shri Partha Bhattacharyya ceased to be the Chairman and Member of the Project and Funding Committee w.e.f. 31st July, 2020
2. Shri Ashok Purwaha was appointed as the Chairman of the Project and Funding Committee w.e.f. 31st July, 2020
3. Shri. Bhuwan Chandra Tripathi was appointed as the member of the Project and Funding Committee w.e.f. 31st July, 2020
Manufacturing Operations Review Committee
The terms of reference of Manufacturing Operations Review Committee, inter alia, include, to periodically review factory
operations, safety, hazard and pollution / emissions, to suggest initiatives for improving efficiencies and standards, to review
internal audit reports pertaining to factory operations and to suggest corrective actions to take care of observations of the
Internal Auditors.
Constitution Constituted by the Board of Directors of the Company with

effect from 10th April, 2009.
during the year

During the year under review, one committee meeting was held on 3rd November, 2020. The Composition of the Committee is
as given below:
Name of Director No. of Meetings held No. of Meetings attended
Shri Partha Bhattacharyya, Chairman 1 1
Shri M. P. Shinde 1 1
Shri Ashok Kumar Purwaha 1 1
Corporate Social Responsibility Committee

The terms of reference of Corporate Social Responsibility Committee (CSR), inter alia, include, formulation and recommendation
to the Board of Directors, CSR Policy which shall indicate the activities to be undertaken by the Company as per the provisions
of the Companies Act, 2013, approve and recommend to the Board of Directors the CSR budget for the activities referred in CSR
Policy of the Company and monitor the mechanism for CSR projects or programmes or activities undertaken by the Company
and monitor the CSR Policy of the Company from time to time.
Constitution Constituted by the Board of Directors of the Company at its
meeting held on 21st March, 2014.
during the year
During the year under review, two Committee Meeting were held on 29th June, 2020 and 25th March, 2021. The attendance of
the Members was as follows:
Shri Pranay Vakil, Chairman1 1 1
Smt. Parul Mehta 2 2
Shri Partha Bhattacharyya 2
2 2
Smt. Renu Challu3 N.A. N.A.
Shri. Alok Perti4 1 1
to be the member and Chairman of the Corporate Social Responsibility Committee
2. Shri Partha Bhattacharyya was appointed as the Chairman of the Corporate Social Responsibility Committee w.e.f. 21st September, 2020.
3. Smt. Renu Challu ceased to be the director of the Company w.e.f. 31st October, 2020 and also ceased to be the member of the Corporate Social
Responsibility Committee
4. Shri Alok Perti was appointed as Member of Corporate Social Responsibility Committee w.e.f. 3rd November, 2020
CSR Policy is available on the website of the Company:

https://www.dfpcl.com/wp-content/uploads/2021/05/CSR Policy-DFPCL.pdf.
Risk Management Committee
Pursuant to SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has constituted a Risk
Management Committee consisting of composition as specified therein.
The terms of reference of the Committee are in line with the provisions of the amended SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 and also include other matters delegated to the Committee by Board of Directors of the
Company from time to time.

The Company has also framed a Risk Management Policy with an intention to systematically identify, evaluate, mitigate and
monitor risks in the Company and its subsidiaries / associates.
Constitution Constituted by the Board of Directors of the Company at

its meeting held on 4th November, 2014.
during the year
During the year under review, two Committee Meetings were held on 02nd November, 2020 and 11th December, 2020:
Name of Director No. of Meetings held No. of Meetings attended

Shri M. P. Shinde, Chairman 2 2
Dr. Amit Biswas 2 2
Shri Bhuwan Chandra Tripathi 1
2 2
Shri Amitabh Bhargava 2 2
1. Shri. Bhuwan Chandra Tripathi was appointed as the member of the Risk Management Committee w.e.f. 31st July, 2020
Securities Issue Committee
The Securities Issue Committee was constituted by the Board at its meeting held on 9th August, 2018 to specifically look into
various matters relating to the capital raising, ensuring implementation of capital raising, to decide the form / mode of capital
raising and to approve the preliminary placement document, to approve, finalise and issue allotment letters and to make
application or seek exemption to / from any regulatory or statutory authorities etc., and other allied matters.
During the year under review, one Securities Issue Committee meeting was held on 30th September, 2020. The attendance of
the Members was as follows:
Shri Berjis Desai, Chairman 1 1
Shri Pranay Vakil 1
N.A. N.A.
Shri M. P. Shinde2 N.A. N.A.
Shri S. C. Mehta 3
N.A. N.A.
Shri Amitabh Bhargava 1 1
Shri Sujal Shah4 1 1
to be the member of the Securities Issue Committee.
2&3. Shri S. C Mehta and Shri M P Shinde ceased to be the members of the Securities Issue Committee w.e.f. 31st July, 2020.
4. Shri Sujal Shah was appointed as member of the Securities Issue Committee w.e.f. 31st July, 2020.
Shri Ritesh Chaudhry Company Secretary and Compliance Officer acts as Secretary to all the Committees of the Board of
Directors.
Share and Debenture Transfer Committee
The share and debenture transfer committee has been constituted for considering the proposals of transfers, transmissions,
transposition of names, issue of split, consolidated share certificates, re-materialisation of shares etc.

The composition of the Share and Debenture Transfer Committee is as below:
Sr. No. Particulars

1. Shri S.C. Mehta – Chairman
2. Smt. Parul S. Mehta – Member
3. Shri Amitabh Bhargava* - Member
4. Shri Ritesh Chaudhry* - Member
6. Shri Deepak Balwani* - Member
During the year under review, 23 meetings of Share and Debenture Transfer Committee were held.
Shri Ritesh Chaudhry was appointed as a member of the Committee in place of Shri K Subharaman w.e.f. 26th March, 2021.
*Shri Amitabh Bhargava, * Shri Ritesh Chaudhry and *Shri Deepak Balwani are not Directors of the Company but are members of the Committee.
Rights Issue Committee
The Rights Issue Committee was constituted by the Board at its meeting held on 25th May, 2020 for giving effect to the Rights
Issue and also to look after other things related to Rights Issue
During the year under review, one Rights Issue Committee meeting was held on 20th October, 2020. The attendance of the
Members was as follows:
Shri. Berjis Desai 1 1
Smt. Renu Challu @
1 1
Shri. Sujal Shah 1 1
@ Smt. Renu Challu has ceased to be the director of the Company w.e.f. 31st October, 2020 and consequently ceased to be member of the Rights Issue
Committee.
Performance Evaluation of Board, Committees and Directors
Pursuant to the provisions of the Companies Act, 2013 and Regulation 19 of SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015, the Board has carried out the annual performance evaluation of the Chairman, Individual
Directors, Board as well as its Committees for FY 2020-21. The Board at its Meeting held on 28th May, 2021 reviewed the reports
on performance assessment of the Board, its Committees and individual directors.
The evaluation framework for assessing the performance of Chairman, Directors, Board as well as its Committees comprises,
inter alia, of the following criteria:
i. Directors bring an independent judgment on the Board’s discussions utilizing their knowledge and experience especially on
issues related to strategy, operational performance and risk management.
ii. Directors demonstrate awareness and concerns about norms relating to Corporate Governance disclosure and legal
compliances.
iii. Directors contribute new ideas / insights on business issues raised by Management.
iv. Directors anticipate and facilitate deliberations on new issues that Management and the Board should consider.
v. The Board / Committee meetings are conducted in a manner which facilitates open discussions and robust debate on all
key items of the agenda.
vi. The Board receives adequate and timely information to enable discussions / decision making during Board meetings.
vii. The Board addresses interests of all stakeholders of the Company.
viii. The Committees are delivering on the defined objectives.

ix. The Committees have the right composition to deliver their objectives.
Performance evaluation criteria for independent directors: Performance evaluation of independent directors in addition to the
above evaluation, also considers attendance in Board and Committee meetings, time devoted for the Company, contribution
in the Board processes and discussions and such other criteria as may be considered by the Nomination and Remuneration
Committee from time to time.
Meeting of Independent Directors
The Independent Directors met on 26th March, 2021 to inter alia, to discuss and review:
1. The performance of Non-Independent Directors and the Board of Directors as a whole.
2. The performance of Chairman of the Company, taking into account the views of non-executive directors.
3. The quality, quantity and timeliness of flow of information between the Management of the Company and the Board of
Directors that is necessary for the Board of Directors to effectively and reasonably perform their duties.
Except Shri. Berjis Desai and Smt. Varsha Purandare, all the Independent Directors were present at the Meeting.
Familiarisation Programme for Directors
The Directors (Independent and Non-Independent) interact with Senior Management personnel and are provided with the
information sought by them for enabling a good understanding of the Company, its various operations and the industry of
which it is a constituent.
The role, rights, duties and responsibilities of Independent Directors have been incorporated in the Letter of Appointment issued
to them. The amendments / updates in statutory provisions are informed from time to time.
The information with respect to the nature of industry in which the Company operates and business model of the Company is
made known through various presentations on operational performance, strategy, budgets and business forecasts, etc. to the
Board of Directors.
The Company has a practice of having an Annual Strategy Meeting, where all Directors and Senior Executives participate and
work out short, medium and long term strategies after deliberations, discussion and consensus.
The above initiatives help the Directors understand the Company, its business and the regulatory framework in which the
Company operates to effectively fulfill their role as Directors of the Company.
The familiarisation programme for directors is available on the website of the Company at the link- https://www.dfpcl.com/
wp-content/uploads/2017/04/FamiliarisationProgram.pdf
Information Supplied to the Board
In advance of each meeting, the Board is presented with relevant information on various matters related to the operations of
the Company, status of ongoing projects which warrant attention of the Directors. Presentations are also made to the Board
by different functional heads on important matters from time to time. Directors have separate and independent access to the
officers of the Company.
The Company has laid down procedures to inform the Board Members about the risk assessment and its minimization. The
Board Members through the Risk Management Committee, are provided with the information on the risks faced by the Company
and measures adopted by the Company to mitigate the same.
With a view to leveraging technology and moving towards paperless system for preservation of environment, the Company has
adopted a web-based application for transmitting Board / Committee agenda. The Directors of the Company receive the agenda
in electronic form through this secured application. The application meets the high standards of security and integrity required
for storage and transmission of Board / Committee agenda in electronic form.

Board Diversity
The Board of Directors ensure that a transparent Board nomination process is in place. The Company has various business
sectors which serve different customer segments. Having members of the Board from different fields is, therefore, important
for sustained commercial success of the Company. While selecting the Board members, the Company endeavours to include
and make good use of diversity in the skills, qualification, age and professional and industry experience, irrespective of race,
caste, creed, religion, disability or gender.
Orderly Succession to Board and Senior Management
The Board of the Company has satisfied itself that plans are in place for orderly succession for appointments to the Board and
to Senior Management.
Review of Legal Compliance Reports
During the year, the Board periodically reviewed compliance reports with respect to the various laws applicable to the Company,
as prepared and placed before it by the Management.
Dividend Distribution Policy
The Board at its meeting held on 30th June, 2017 adopted a Dividend Distribution Policy for the Company. The same is placed
on the Company’s website www.dfpcl.com.
A physical copy of the Policy will be made available to any shareholder on request by email.
Code of Conduct
All Directors and Senior Management personnel have affirmed compliance with the Code of Conduct for FY 2020-21. A
declaration to this effect signed by Chairman and Managing Director is given in this Annual Report.
Maximum Tenure of Independent Directors
The maximum tenure of independent directors is in accordance with the Companies Act, 2013 and Regulation 25(2) of the SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015. The maximum tenure in one term of appointment of an
Independent Director does not exceed 5 years and for two terms put together does not exceed 10 years.
Confirmation by the Board on fulfillment of Independence of Independent Directors
In the opinion of the Board, all the existing Independent Directors and those who are proposed to be appointed at the Annual
General Meeting, fulfil the conditions specified in the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
and are independent of the Management.
Resignation of Independent Director
All the details of changes in directors has been provided in the Board’s Report. Further, the Company has informed the same to
the Stock Exchanges.
Details of remuneration paid to Executive Director for Financial Year 2020-21:

In `
Name of Director Designation Salary and Perks Commission Others (PF and Total
Allowances Super Annuation)
Shri S. C. Mehta Chairman & 5,11,65,000 89,54,916 6,79,00,000 38,22,000 13,18,41,916
Managing Director
Appointment of Managing Director and Chairman is governed by a Service Contract for a period of 5 Years.

Details of Sitting Fees paid during the Financial Year 2020-21 and Commission paid for Financial Year 2020-21 to
Non-Executive Directors:
Sitting Fees:
The Company pays sitting fees to Non-Executive Directors @ ` 75,000/- for attending per Board Meeting, ` 50,000/- for attending
per Audit Committee Meeting, Nomination and Remuneration Committee Meeting, Project and Funding Committee Meeting
and ` 30,000/- for attending per Meeting of other Committees constituted by the Board.
Commission:
The payments of Commission to non-executive directors are based on attendance in the Board and Committee meeting, time
devoted for the Company and contribution made in the board processes and discussions.
For the Financial Year ended 31st March, 2020, the Company had inadequate profits and accordingly, the Company decided not
to pay commission to Non-Executive Directors of the Company for the Financial Year 2019-20.
Further, considering the profits of the Company for the Financial Year ended 31st March, 2021, Commission of non-executive
directors was approved by the Board at its meeting held on 28th May, 2021. The details of commission to be paid to the non-
executive directors are as given below:
Sr. No. Name of Director Commission (` in Lacs)

1. Shri Partha Bhattacharyya 20
2. Smt. Parul S. Mehta 10
3. Shri M. P. Shinde 10
4. Shri Ashok Purwaha 10
5. Shri Berjis Desai 7.5
6. Shri Alok Perti 20
7. Dr. Amit Biswas 7.5
8. Shri Bhuwan Chandra Tripathi 20
9. Shri Sujal Anil Shah 15
10. Smt. Varsha Purandare 5
11. Shri Mahesh Chhabria 10
12. Shri Pranay Vakil 20
13. Smt. Renu Challu 2.5
The aforesaid commission for the Financial Year 2020-21 will be paid to the non-executive directors after the adoption of
accounts by the shareholders at the ensuing Annual General Meeting to be held on 26th August, 2021.
Shri M P Shinde, Non-executive Director of the Company is providing certain services in his professional capacity to the Company
as per the terms of the contract entered into with him. In his role as Consultant to the Company, he advises on issues relating
to Environment, Health and Safety, Plant Operations, Pollution Control and allied activities for the Company’s various plants. In
accordance with the approval from the Audit Committee and the Board, the Company paid professional fee of ` 6,25,000/- to
him during FY 2020-21.
The notice period for the directors is mutually agreed between the directors and the Company. No severance fees is payable to
any directors. The Company has not issued any stock options to any of the directors.

Details of Shares held by Non-Executive Directors as on 31st March, 2021:
Sr. No. Non-Executive Director Holding
1. Smt. Parul S. Mehta 1,409 Equity Shares
3. Shri M.P. Shinde 1,500 Equity Shares
4. Shri Partha Bhattacharyya Nil
5. Shri Berjis Desai Nil
6. Shri Ashok Kumar Purwaha Nil
7. Shri Alok Perti Nil
8. Dr. Amit Biswas Nil
9. Shri Bhuwan Chandra Tripathi Nil
10. Shri Sujal Anil Shah Nil
11. Smt. Varsha Purandare Nil
Annual General Meeting
Details of special resolutions passed in the last three Annual General Meetings held are provided below:
Particulars F.Y. 2017-18 F.Y. 2018-19 F.Y. 2019-20
Day Tuesday Wednesday Monday
Date 18th September, 2018 14th August, 2019 21st September, 2020
Time 11:30 a.m. 11:30 a.m 11.00 a.m.
Venue Opus 1, The Cove, Level 1, Opus 1, The Cove, Level 1, The Annual General Meeting was
Creaticity, Opp. Golf Course, Creaticity, Opp. Golf Course, Off held through Video Conferencing
Airport Road, Yerawada, Pune - Airport Road, Yerawada, Pune - (“VC”) / Other Audio Visual Means
411 006 411 006 (“OAVM”)
Whether Yes Yes Yes
any special • Reclassification of the • To waive of excess managerial • To waive of excess managerial
resolutions Authorised Share Capital of the remuneration aggregating to remuneration aggregating to
passed Company. ` 249.39 Lakhs paid to Shri ` 264.76 Lakhs paid to Shri
• Raising of Funds aggregating S.C. Mehta, Chairman and S.C. Mehta, Chairman and
to ` 600 Crore through various Managing Director. Managing Director.
options like issue of equity • To rollover the Special • To rollover the Special
shares / ADRs / GDRs / FCCBs Resolution by another 365 Resolution by another 365
etc. days to enable subscription of days to enable subscription of
• Consideration & approval of Foreign Currency Convertible Foreign Currency Convertible
issue of convertible equity Bonds on or after 17th Bonds on or after 17th
warrants on preferential basis to September, 2019 and to take September, 2020 and to take
promoters not exceeding ` 200 such other corporate actions such other corporate actions
Crore. as mentioned in the resolution as mentioned in the resolution
passed on 18th September, passed on 18th September,
• Consideration & approval 2018 as and when necessary 2018 as and when necessary
of increase of limits to within the same threshold limit within the same threshold limit
provide loans / guarantees of ` 600 Crore. of ` 600 Crore.
/ investments beyond the
threshold provided under
Section 186 of the Companies
Act, 2013.
• Consideration & approval
by shareholders pursuant
to Section 62 (3) of the
Companies Act, 2013 enabling
Board for conversion of
financial assistance extended/
to be extended by the banks /
financial institutions / any other
lender into equity shares in
case of default.

Special resolutions passed through Postal Ballot
During the year under review, the following Special Resolution was passed:
Approval relating to payment of remuneration to Shri S. C. Mehta, Chairman and Managing Director of the Company.
Shri Sridhar Mudaliar, Partner, SVD & Associates, Practising Company Secretaries (Membership No. FCS 6156, CP No. 2664)
or failing him Smt. Sheetal Joshi, Partner SVD & Associates, Practising Company Secretaries, (Membership No. FCS 10480, CP
No. 11635) was appointed to act as the Scrutiniser for conducting voting process in a fair and transparent manner.
The Result of the Postal Ballot was announced on 28th December, 2020 and details of voting result on the resolutions were as
follows:
Sr. No. Description Votes (No. of shares and %)

In favour Against
1 Approval relating to payment of remuneration to 5,87,70,872 21,30,317
Shri S. C. Mehta, Chairman and Managing Director of 96.5020% 3.4980%
the Company
Whether any special Resolution is proposed to be conducted through Postal Ballot: There is no immediate proposal for passing
any resolution through postal ballot.
Procedure for postal ballot
In compliance with the Circular No. 14/2020 dated April 8, 2020, Circular No. 17/2020 dated April 13, 2020 and Circular No.
33/2020 dated September 28, 2020 issued by the Ministry of Corporate Affairs (“MCA”) (hereinafter collectively referred to as
“MCA Circulars”), the Company had sent Postal Ballot Notice only through electronic mode to those Shareholders whose names
appeared in the Register of Member / Record of Depositories as on Friday, November 13, 2020 (“cut-off date”) and whose email
addresses are registered with the Company/Depositories on the said date.
The Company had also published notice in the newspapers for the information of the shareholders. The voting rights were
reckoned on the equity shares held by the shareholders as on the cut-off date that was 13th November, 2020. The voting period
for postal ballot and E-voting was from 27th November, 2020 to 26th December, 2020.
The postal ballot results were intimated to the stock exchanges pursuant to Regulation 44(3) of the SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015, as well as displayed on the Company’s website www.dfpcl.com. The Company
has also complied with the procedure for Postal Ballot in terms of the provisions of Section 110 of the Companies Act, 2013,
read with Rule 22 of the Companies (Management and Administration) Rules, 2014.
Disclosures:
i. Name & Designation of Compliance Officer: Shri Ritesh Chaudhry, Company Secretary and Compliance Officer.
ii. Details of Directors seeking appointment / re-appointment at the Annual General Meeting:
Details of the Directors seeking appointment / re-appointment at the Annual General Meeting have been given in the
Notice convening the Forty First Annual General Meeting, forming part of this Annual Report.
iii. Pecuniary relationship/transaction with non-executive directors:
During the year under review, there was no pecuniary relationship/transactions with any non-executive director of the
Company except the payment of professional fee of ` 6,25,000/- to Shri. M P Shinde, Non -executive Director during FY
2020-21 as stated above.
iv. Disclosures on material related party transactions i.e. transactions of the Company of material nature, with its promoters,
Directors or the Management, their subsidiaries or relatives etc. that may have potential conflict with the interest of the
Company at large:

During the year 2020-21, the Company had transactions with related parties as defined under the Companies Act, 2013
and Regulation 23 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The basis of related party
transactions were placed before the Audit Committee. All these transactions with related parties were in the ordinary
course of business and at an arm’s length pricing basis and do not attract the provisions of Section 188 of the Companies
Act, 2013. Further, the same were specifically reviewed by an independent Chartered Accountant firm. There were no
material related party transactions in terms of Regulation 23 of SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 during the financial year under review that has a potential conflict with the interest of the Company at
large. Suitable disclosure as required by the Indian Accounting Standards has been made in the notes to the Financial
Statements. The Board of Directors at its meeting held on 30th May, 2019, has approved a revised ‘Policy on Related Party
Transactions’ stipulating the threshold limits and also on dealings with the RPTs pursuant to SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015 which has been uploaded on https://www.dfpcl.com/wp-content/
uploads/2017/04/Policy-for-Related-Party-Transactions.pdf
v. Details of non-compliance by the Company, penalties, strictures imposed on the Company by Stock Exchange or SEBI or
any statutory authority, on any matter related to capital markets during the last three years:
The Company had undergone re-structuring exercise wherein the TAN and Fertiliser undertakings were transferred to its
wholly owned subsidiary, Smartchem Technologies Limited and the Order from NCLT was received in April, 2017 and filed
with ROC on 2nd May, 2017. Therefore, the Audit of Accounts consequent to the demerger as aforesaid got delayed.
The Company had sought necessary permissions from the stock exchanges to this effect and the Accounts were approved
only on 30th June, 2017 by the Board.
The stock exchanges, without taking cognizance of the unavoidable circumstances faced by the Company, levied fine of
` 22,60,768 which was duly paid under protest. The Company represented the matter before SEBI. SEBI, vide its order
dated 1st August, 2018 had rejected the Company’s application to waive the fine imposed by the stock exchanges. The
Company has preferred an appeal with Securities Appellate Tribunal against the aforesaid SEBI’s order rejecting the
Company’s application and at present the matter is pending with Securities Appellate Tribunal.
Further, BSE Limited in the month of March, 2021 had levied a fine of ` 2,000 because of failure to take / ensure adequate
steps for expeditious redressal of investor complaints under Regulation 13(3) of the SEBI (Listing Obligations and
Disclosure Requirement) Regulations, 2015. The Company has made a representation to BSE Limited to set aside the fine
and in meantime has paid the fine of ` 2,000 under protest.
vi. Disclosures of compliance with mandatory requirements and adoption / non-adoption of non-mandatory requirements:
The Company has complied with all the mandatory requirements of the Corporate Governance.
The Company has adopted the following non mandatory requirements of the Corporate Governance:
• The Company’s statutory audit report is without any modified opinion for the Financial Year ended 31st March, 2021;
and
• The Internal Auditor directly reports to the Audit Committee.
vii. Disclosures of relationships between Directors inter-se:
Smt. Parul S. Mehta is wife of Shri S. C. Mehta.
Except as mentioned above, none of the other Directors have any relation inter-se.
viii. Vigil Mechanism / Whistle Blower policy:
The Company has adopted Vigil Mechanism / Whistle Blower Policy (Policy) as approved by the Board of Directors. The
Policy encourages whistle blowing against unethical behaviour, actual or suspected fraud or violation of the Company’s
code of conduct or ethics policy. No person has been denied access to the Audit Committee to report violation of the
applicable laws, regulations and code of conduct. The Audit Committee and Board of Directors review periodically the
complaints received by the competent authority under the Policy. The Vigil Mechanism / Whistle Blower Policy has been
posted on the website of the Company https://www.dfpcl.com/wp-content/uploads/2018/12/whistle-blower-policy.pdf.

ix. Regulations for prevention of Insider trading:
In terms of the SEBI (Prohibition of Insider Trading) Regulations, 2015, the Company has adopted the Code of Conduct
for regulating, monitoring and reporting of trading by Insider for its Directors, Officers and Designated Persons (Insider
Trading Policy).
During the year under review, SEBI vide its circulars dated 17th July, 2020 and 29th October, 2020, has amended SEBI
(Prohibition of Insider Trading) Regulations, 2015. In view of the amendment to the said Regulations, the Board of
Directors, at its meeting held on 03rd February, 2021, amended the Company’s Insider Trading Policy.
Shri Ritesh Chaudhry, Vice President & Head (Legal & Secretarial) & Company Secretary is the Compliance Officer under
the said Policy.
x. Material Subsidiaries:
The material subsidiaries of the Company are Smartchem Technologies Limited and Performance Chemiserve Limited as
defined under the provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Company
has formulated the Policy on determining Material Subsidiaries and the same has been posted on https://www.dfpcl.
com/wp-content/uploads/2020/02/Policy-on-determining-material-subsidiaries.pdf
xi. Details of utilisation of funds raised through preferential allotment or qualified institutions placement as specified
under Regulation 32A of SEBI Listing regulations:
The details have been provided in the Board’s Report.
xii. Confirmation by the Board of Directors on acceptance of recommendation of mandatory committees:
The Board of Directors confirm that during the year, it has accepted all recommendations received from its mandatory
committees.
xiii. Annual Secretarial Compliance Report:
SEBI vide its circular dated 8th February, 2019 mandated all the listed entities to obtain annual Secretarial Compliance
Report from the Company Secretary in practice on compliance with all applicable SEBI Regulations and circulars /
guidelines issued thereunder. The said Secretarial Compliance Report is in addition to the Secretarial Audit Report (Form
MR – 3). The Company has received the aforesaid report from M/s. SVD & Associates, Company Secretaries in practice
for the Financial Year 2020-21.
A copy of the Annual Secretarial Compliance Report is enclosed in this Annual Report (Refer Annexure 6).
The observations of M/s. SVD & Associates, Company Secretaries in their report are self-explanatory.
xiv. Certificate from Practising Company Secretary under Schedule V of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015:
Pursuant to Schedule V to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 the Company
has received a certificate from M/s. SVD & Associates, Company Secretaries in practice confirming that none of the board
of directors of the Company are debarred or disqualified from being appointed or continuing as director of the Company
by the Board / Ministry of Corporate Affairs or any such statutory authority.
A copy of the aforesaid certificate is enclosed in this Annual Report (Refer Annexure 7). The report is unqualified.
There are no observations in the aforesaid report.
xv. Disclosure of total fees paid to the Statutory Auditors:
For the financial year 2020-21, ` 45.64 Lakhs was paid to B S R & Associates LLP, erstwhile Statutory Auditors and
`23.02 Lakhs was paid to P G BHAGWAT LLP, current Statutory Auditors of the Company. Neither the aforesaid Statutory
Auditors nor the entities in the network firm in which the statutory auditor is a part, provided any services to the subsidiary
companies of the Company.

xvi. Disclosure as per Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013:
The necessary disclosure on the subject have been already made in the Board’s Report.
xvii. Commodity price risk or foreign exchange risk and hedging activities:
Foreign Exchange Risk:

On the foreign exchange risk, the Company follows a natural hedge driven currency risk mitigation policy to the extent
possible. Any residual risk is evaluated and appropriate risk mitigating steps are taken, including but not limited to,
entering into forward / options contracts.
Commodity Risk:
As a manufacturing company of Industrial Chemicals and fertilisers, Company is exposed to risks due to fluctuations in
prices of its key raw material (Natural Gas / LNG, Propylene, Phosphoric Acid, Ammonia, Muriate of Potash etc) used in
operations. Prices of all these raw materials are linked to or derived from international market which are volatile in nature.
Company follows Board approved Commodity Risk management policy for hedging price risk of major raw materials
wherever possible. The policy establishes commodity risk management framework and defines the procedures and
controls for effective management of risks that arises through company’s manufacturing operations.
Means of Communication
The Company publishes its financial results every quarter in leading newspapers such as Sakal or Loksatta and Indian Express
or Financial Express.
The Company has its own website, www.dfpcl.com, which contains all important public domain information including press
releases, presentations, if any, made to the analysts and institutional investors. The website contains information as prescribed
under the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 including details
of the contact persons of the Company and of the share transfer agent of the Company, shareholding pattern etc.

GENERAL SHAREHOLDER INFORMATION
1. Annual General Meeting Day, Date, Time and : Thursday, 26th August, 2021 at 11.00 a.m.
Venue The Company would be conducting meeting through video
conferencing (‘VC’)/ other audio visual means (‘OAVM’) pursuant
to the MCA circulars. For details please refer to the Notice of AGM.
2. Financial year / Calendar
- Results for first quarter ending June 30, : Within 45 days from the end of the quarter
2021
- Results for second quarter ending : Within 45 days from the end of the quarter
September 30, 2021
- Results for third quarter ending : Within 45 days from the end of the quarter
December 31, 2021
- Results for financial year ending March : Within 60 days from the end of the financial year
31, 2022
3. Date of Book Closure : Friday, 20th August, 2021 to Thursday, 26th August, 2021 (both
days inclusive)
4. Dividend Payment Date : On or before 25th September, 2021
5. Registered Office and CIN : Sai Hira, Survey No.93, Mundhwa, Pune - 411 036
CIN : L24121MH1979PLC021360
6. Phone, E-mail : Phone : (020) 6645 8000
Email : investorgrievance@dfpcl.com Website : www.dfpcl.com
7. Plant Location : MIDC, Industrial Area, Taloja, District: Raigad, Maharashtra
Dahej, Taluka: Vagra, State: Gujarat
Plants of Subsidiary:
MIDC, Industrial Area, Taloja, District: Raigad, Maharashtra,
Village : Ponnada, Etchelra Mandalam, Srikakulam, Andhra
Pradesh - 532 408
Plot No. 47, HSIIDC, Industrial Estate, Refinery Road, Panipat,
Haryana- 500 002
8. Registrar & Share Transfer Agent (RTA) and : KFin Technologies Private Limited
Address for investors’ Correspondence Selenium Tower B, Plot 31-32, Gachibowli, Financial District,
Nanakramguda, Hyderabad - 500 032
9. Phone, E-mail of RTA : Toll Fee No. : 1 800 309 4001
Phone : (040) 6716 2222
Email: einward.ris@kfintech.com
10. Listing on Stock Exchanges : a. BSE Limited (BSE) :
1st Floor, New Trading Ring, Rotunda Building, P J Tower,
Dalal Street, Fort, Mumbai 400 001; and
b. National Stock Exchange of India Limited (NSE) :
Exchange Plaza, 5th Floor Plot No. C-1, G Block Bandra-Kurla
Complex Bandra (East), Mumbai 400 051.
Annual Listing fee for financial year 2020-21 has been paid to both
the Exchanges
11 Stock Code : BSE Limited (BSE): 500645
National Stock Exchange of India Limited (NSE) : DEEPAKFERT
12 Demat ISIN in NSDL and CDSL : INE501A01019

Market Price Data for 2020-21:
MONTH SHARE PRICE (in `) BSE SENSEX

HIGH LOW HIGH LOW
April, 2020 110.55 71.30 33887.25 27500.79
May, 2020 112.00 95.10 32845.48 29968.45
June, 2020 122.00 101.05 35706.55 32348.10
July, 2020 164.85 111.75 38617.03 34927.20
August, 2020 192.85 147.20 40010.17 36911.23
September, 2020 181.00 141.55 39359.51 36495.98
October, 2020 157.65 133.00 41048.05 38410.20
November, 2020 157.70 136.35 44825.37 39334.92
December, 2020 171.90 144.15 47896.97 44118.10
January, 2021 169.00 147.80 50184.01 46160.46
February, 2021 192.80 152.20 52516.76 46433.65
March, 2021 249.40 187.90 51821.84 48236.35
Distribution of shareholding as on 31st March, 2021: 1,14,678 shareholders held 10,26,77,088 equity shares of ` 10/- each.
Distribution of Shareholding as on 31/03/2021

Sr. Category (Shares) No. of Holders % to Holders No. of Shares % to Equity
No.
1 1 - 5000 1,08,390 92.52 1,12,22,802 10.93
2 5001 - 10000 4,476 3.82 34,76,578 3.39
3 10001 - 20000 2,027 1.73 30,06,945 2.93
4 20001 - 30000 707 0.60 18,08,024 1.76
5 30001 - 40000 332 0.28 11,90,432 1.16
6 40001 - 50000 280 0.24 13,09,386 1.28
7 50001 - 100000 478 0.41 34,64,119 3.37
8 100001 and above 463 0.40 7,71,98,802 75.19
TOTAL: 1,17,153 100.00 10,26,77,088 100.00
Share Transfer System:
As the members are aware, the Company has appointed KFin Technologies Private Limited., as Registrar & Share Transfer
Agent (RTA) to handle dematerialisation of shares and physical share transfers as well as other share related activities of the
Company.
SEBI, vide its notifications, has mandated that transfer of securities would be carried out in dematerialized form only with effect
from 1st April, 2019. According to the aforesaid notification, request for effecting transfer of securities shall not be processed
unless the securities are held in the Dematerialized form with the depository. Therefore, Registrars and Transfer Agent and
Company are not accepting any request for transfer of shares in physical form with effect 1st April, 2019. This restriction is not
applicable to the request received for transmission or transposition of names in respect of shares held in physical form.
The members are advised to correspond with the RTA viz. KFin Technologies Private Limited, at its office at Selenium Tower B,
Plot 31-32, Gachibowli, Financial District, Nanakramguda, Hyderabad-500 032.

Dematerialisation of Shares:
The shares of the Company are traded in dematerialised form. 9,82,31,231 Equity Shares (95.67% of paid-up capital) held by
86,199 shareholders (73.58% of total number of shareholders) have been dematerialised as on 31st March, 2021.
Outstanding GDRs, ADRs, Warrants or any Convertible Instruments etc.:
Warrants:
As reported in the last year’s Annual Report, the Company had, during the Financial Year 2018-19, allotted 64,76,893 Convertible
Warrants to Robust Marketing Services Private Limited [RMSPL], a Promoter Company on 16th October, 2018. RMSPL paid a
sum of ` 50 Crore being 25% of ` 200 crore [total value of the issue] being Upfront Warrant Subscription amount.
The Securities Issue Committee of the Company on 1st October, 2019 had allotted 10,79,482 fully paid up equity shares to
RMSPL, after receiving further payment of ` 25 Crore from RMSPL as per the terms of warrants issue. Thus, an amount of
` 8.34 crore was adjusted from the initial payment of Upfront Warrant Subscription amount leaving a balance amount of`
` 41.66 crore yet to be adjusted against issue of equity shares.
RMSPL had to pay the balance sum of ` 125 crore at any time on or before 15th April, 2020 as per SEBI ICDR regulations (being
18 months from the date of allotment of warrants).
Further, on request from the Company, SEBI had granted time of one more month i.e. till 15th May 2020 in order to subscribe to
equity shares by conversion of warrants to RMSPL.
Since, the Company did not receive the balance subscription amount of ` 125 crore from RMSPL before the extended due date
i.e. 15th May 2020, the balance lying with the Company paid as Upfront Warrant Subscription Amount towards 25% of the issue
price of the warrants and still not converted by RMSPL into equity amounting to ` 41.66 Crore, stands forfeited in terms of
Regulation 169 (3) of the aforesaid SEBI (ICDR) Regulations.
Further, the Company had received a communication from the Promoters reiterating their commitment to infuse fund in the
Company with a request for exploring alternative options to do so and accordingly have subscribed in the Rights Issue of the
Company completed in October 20, 2020.
Rights Issue
The Board of Directors at their meeting held on 25th May, 2020 had approved fund raising for an issue size of up to ` 180
crores (Rupees One Hundred Eighty Crores), through a rights issue, in accordance with applicable law, including the Companies
Act, 2013 and the rules made thereunder and the Securities and Exchange Board of India (Issue of Capital and Disclosure
Requirements) Regulations, 2018.
Further, the Board of Directors at their meeting held on 11th September, 2020 had approved the following terms of the issue:
a. Issue Price: ` 133/- per fully paid-up equity share (including a premium of ` 123/- per fully paid-up equity share over the
face value of ` 10 per equity share).
b. Terms and payment of issue price: The full amount of issue price being ` 133/- per rights equity share will be payable on
application.
c. Record date: The Board also fixed the record date for the purpose of determining the shareholders of the Company who
will be eligible to apply in the Issue, as September 17, 2020.
d. Rights entitlement ratio: 3 (three) fully paid-up equity shares for every 20 (twenty) fully paid-up equity shares held by the
eligible equity shareholders of the Company, as on the record date.
e. Issue Opened on: Monday, September 28, 2020;
f. Issue Closing Date: Monday, October 12, 2020.
Further, the Rights Issue Committee at its meeting held on 20th October, 2020 approved the allotment of 1,33,92,663 equity
shares on rights basis.

Post rights issue, the paid-up share capital of the Company is ` 102,67,70,880 i.e. 10,26,77,088 equity shares of ` 10 each.
Convertible Securities:
As informed in the last year’s Annual Report, the Board at its meeting held on 22nd April, 2019 granted an in-principle approval
for issuing FCCBs aggregating upto US$ 30,000,000 (United States Dollars Thirty Million) in two tranches to International
Finance Corporation (IFC).
During the Last Financial Year i.e. 2019-20, the Securities Issue Committee of the Company, at its meeting held on 19th October
2019, allotted 30 (Thirty) Foreign Currency Convertible Bonds (Convertible Securities) having a par value of US$ 500,000 each,
being the first tranche, to International Finance Corporation (“IFC”), for an aggregate amount of US$ 15 million.
Further, during the year under review, the Securities Issue Committee at its meeting held on 30th September, 2020, had allotted
30 (Thirty) Foreign Currency Convertible Bonds (“FCCBs”) having a par value of US$ 500,000 each, being the second tranche, to
International Finance Corporation (“IFC”), for an aggregate amount of US$ 15 million.
Considering the first tranche and second tranche, the investment of IFC in the Company stands at aggregate amount of US$
30 million.
Pursuant to the provisions of Regulation 32 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015,
the Company has informed the Stock Exchanges that there has been no deviation or variation in utilisation of the funds raised
through the following:
a. Issuance of Foreign Currency Convertible Bonds to IFC through preferential allotment; and
b. Issuance of shares of rights basis.
Electronic Clearing System (ECS) / National Electronic Clearing Service (NECS):
The Company through its various communications in the past, had requested its members to furnish ECS / NECS mandate so
as to enable the Company to credit the dividend directly to the shareholder’s bank account. The Company has been remitting the
dividend through ECS / NECS to those who had registered ECS / NECS mandate with the Company. However, in certain cases,
although the members had furnished the ECS / NECS mandate, the remittance of dividend could not be effected through ECS /
NECS at certain centers since adequate facility for crediting the amount was not available at those centers. In such cases, the
dividend is being paid through dividend warrants with the bank account details printed on the warrants. The Company will remit
the dividend through ECS / NECS whenever facilities are made available at those centers.
RBI vide its Circular dated 25th June, 2009 had introduced NECS which aims at increasing efficiency and simplification of the
ECS process. RBI has also directed the member banks to update their systems and information pertaining to the bank account
numbers of their customers. In view of the above, members holding shares in physical form desirous of receiving dividend
electronically through NECS but have not updated / furnished mandate details are requested to obtain the prescribed mandate
form from the Company’s RTA and submit the same to the RTA duly filled in and signed for registration.
Investors holding shares under demat segment are requested to check NECS mandate registered with the respective Depository
Participants and ensure correctness for prompt credit of dividend amount to their accounts.
Unclaimed / Outstanding dividend on equity shares:
To facilitate investors who have not claimed the dividend amount for earlier years on the Equity Shares from the Company,
details of the unclaimed amount are being displayed on the Ministry of Corporate Affairs (MCA) website: www.iepf.gov.in.
Investors are requested to browse the said site to find out the outstanding amount, if any, and claim the same from the Company,
before transfer to the Investor Education and Protection Fund (IEPF) as per the provisions of the Companies Act, 2013.
Further Section 124(6) and the MCA Circular dated 16th October, 2017 requires that all shares in respect of which dividend
has remained unpaid or unclaimed for seven years have to be transferred to IEPF. Accordingly, given below is the statement of
shareholders whose dividend and equity shares have been transferred to IEPF during the Financial Year 2020-21.

The bifurcation of the shares transferred to IEPF during Financial Year 2020-21 is as given below:
Category Number of holders No. of shares
Physical 1,050 1,02,299
NSDL 82 8,058
CDSL 27 1,631
Total 1,159 1,11,988
The dividend and shares which have been transferred to IEPF can be claimed by the shareholders. The IEPF Rules and the
application (Form IEPF-5) as prescribed by the Ministry of Corporate Affairs is available on the website of the Ministry of
Corporate Affairs at www.iepf.gov.in.
Updation of PAN and Bank Details:
Shareholders who have not updated their PAN and Bank Details with the Company are requested to update the same. The
Company has been sending communications to respective shareholders to update their PAN and Bank details.
Credit Rating
During the year under review, ICRA Limited has assigned the following ratings:
Type of Instruments Ratings Action
Non-convertible debenture [ICRA]A+ (Stable) withdrawn
Term Loan [ICRA]A+(Stable); Reaffirmed
Cash Credit [ICRA]A+(Stable); Reaffirmed
Non-fund based limits [ICRA]A1; Reaffirmed
Disclosures with respect to demat suspense account/ unclaimed suspense account
As per Schedule V (F) of the SEBI LODR Regulations, 2015 the Company reports the following details in respect of equity shares
lying in the demat suspense account
Sr. No. Particulars No. of Shareholders Outstanding Equity

Shares
1. aggregate number of shareholders and the outstanding 230 39,399

shares in the suspense account (Please refer note given
below)
2. number of shareholders who approached listed entity for 130 35,487

transfer of shares from suspense account during the year
3. number of shareholders to whom shares were transferred 130 35,487

from suspense account during the year
4. aggregate number of shareholders and the outstanding 100 3,912

shares in the suspense account lying at the end of the year
Note: No equity shares were lying outstanding at the beginning of the year. During the year, the Company had offered its equity
shares on rights basis to eligible shareholders and in compliance with the relevant SEBI Circulars and Regulations, some shares
were transferred to Demat Suspense Account opened by the Company for this purpose.
The voting rights on the aforesaid shares lying in demat suspense account shall remain frozen till the rightful owner of such
shares claimed the shares.

Annual General Meeting to be conducted through Video Conferencing (“VC”) / Other Audio Visual Means (“OAVM”)
In view of the continuing Covid-19 pandemic, the Ministry of Corporate Affairs (“MCA”) vide its circular dated 13th January
2021 read with MCA circulars dated 5th May, 2020, 8th April, 2020 and 13th April, 2020 and Securities and Exchange Board
of India (“SEBI”) Vide its circular dated January 15, 2021 (hereinafter referred to as “Circulars”) permitted companies to hold
their general meetings through video conferencing (VC) or other audio visual means (OAVM) for the year 2021. In keeping with
government advisories on Covid-19 and considering the current extraordinary circumstances, which are not conducive to a safe
conduct of the AGM with physical presence of shareholders, the Board of Directors have approved to conduct the 41st Annual
General Meeting of the Company through Video Conferencing and / or other audio visual means (OAVM) (hereinafter referred
to as “VC/OAVM”). For more details, shareholders are requested to go through the Annual General Meeting Notice.
Further, pursuant to the relevant MCA and SEBI circulars in view of the continuing Covid-19 pandemic, Annual Reports are being
sent through e-mail only.
To receive shareholders’ communications through electronic means, including Annual Reports and Notices, members are
requested to kindly register / update their e-mail address with their respective depository participant, where shares are held
in electronic form. Where shares are held in physical form, members are advised to register their e-mail address with KFin by
clicking on the link https://ris.kfintech.com/clientservices/mobilereg/mobileemailreg.aspx

Declaration
As per Regulation 26 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to confirm that all
Board Members and Senior Management Personnel have affirmed compliance with the Code of Conduct of the Company for
the Financial Year 2020-21.
Place: Pune S. C. MEHTA

Dated : 28th May, 2021 Chairman & Managing Director
Independent Auditors’ Certificate on Compliance with the Corporate Governance requirements under SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015
To,
The Members
Deepak Fertilisers and Petrochemicals Corporation Limited
Survey No. 93, Sai Hira, Mundhwa,
Pune, Maharashtra 411036
1. This certificate is issued in accordance with the terms of our engagement letter dated 11th November, 2020.
2. The report contains details of compliance of conditions of Corporate Governance by Deepak Fertilisers And Petrochemicals
Corporation Limited (“the Company”), for the year ended 31 March 2021, as stipulated in regulations 17, 18, 19, 20, 22, 23,
24, 24A, 25, 26, 27, clauses (b) to (i) of regulation 46(2) and para C, D and E of Schedule V of the Securities and Exchange
Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”) pursuant to
the Listing Agreement of the Company with Stock exchanges.
Management’s Responsibility for the Declaration
3. Compliance with the terms and conditions of the Listing Regulations relating to corporate governance is the responsibility
of the management of the Company including the preparation and maintenance of all relevant supporting records and
documents.
4. This responsibility includes the design, implementation and maintenance of internal control and procedures to ensure
compliance with the conditions of Corporate Governance stipulated in the Listing Regulations.
Auditor’s Responsibility
5. Our examination was limited to procedures and implementation thereof adopted by the Company for ensuring the
compliance with the conditions of Corporate Governance. It is neither an audit nor an expression of opinion on the
financial statements of the Company.
6. Pursuant to the requirements of the Listing Regulations, it is our responsibility to provide a reasonable assurance whether
the Company has complied with the conditions of Corporate Governance as stipulated in the Listing Regulations for the
year ended 31st March, 2021.
7. We conducted our examination in accordance with the ‘Guidance Note on Reports or Certificates for Special purposes’
(Revised 2016) and Guidance Note on Certification of Corporate Governance’, both issued by Institute of Chartered
Accountants of India (‘ICAI’) and the Standards on Auditing specified under Section 143(10) of the Companies Act,
2013, in so far as applicable for the purpose of this certificate. The Guidance Note on Reports or Certificates for Special
Purposes requires that we comply with the ethical requirements of the Code of Ethics issued by the ICAI.
8. We have complied with the relevant applicable requirements of the Standard on Quality Control (SQC) 1, Quality Control
for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services
Engagements.

Opinion:
9. In our opinion and to the best of our information and according to the explanations given to us, we certify that the
Company has complied with the conditions of corporate governance as stipulated by regulations 17, 18, 19, 20, 22, 23,
24, 24A, 25, 26, 27, clauses (b) to (i) of regulation 46(2) and para C, D and E of Schedule V of the Listing Regulations, as
applicable.
10. We state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or
effectiveness with which the management has conducted the affairs of the Company.
Restriction on use:
11. The certificate is addressed and provided to the Members of the Company solely for the purpose of enabling the Company
to comply with the requirement of the Listing Regulations, and it should not be used by any other person or for any other
purpose. Accordingly, we do not accept or assume any liability or any duty of care for any other purpose or to any other
person to whom this certificate is shown or into whose hands it may come without our prior consent in writing.
For P. G. BHAGWAT LLP

Chartered Accountants
Firm Registration Number: 101118W / W100682
Abhijeet Bhagwat
Partner
Membership Number: 136835
UDIN: 21136835AAAABP4066
Place : Pune
Date : 28th May, 2021

INDEPENDENT AUDITORS’ REPORT
To the Members of are independent of the Company in accordance with the Code
Deepak Fertilisers And Petrochemicals Corporation Limited of Ethics issued by the Institute of Chartered Accountants of
India together with the ethical requirements that are relevant
Report on the Audit of the Standalone Financial Statements to our audit of the Standalone Financial Statements under the
Opinion provisions of the Act and the Rules thereunder, and we have
fulfilled our other ethical responsibilities in accordance with
We have audited the Standalone Financial Statements of these requirements and the Code of Ethics.
Deepak Fertilisers And Petrochemicals Corporation Limited
(“the Company”), which comprise the Standalone Balance We believe that the audit evidence we have obtained is
Sheet as at March 31, 2021, the Standalone Statement of sufficient and appropriate to provide a basis for our opinion.
Profit and Loss (including Other Comprehensive Income),
Emphasis of matter
the Standalone Statement of Changes in Equity and the
Standalone Statement of Cash Flows for the year then We draw attention to Note 48 to the Standalone Financial
ended, and notes to the Standalone Financial Statements, Statements which describes that a Search was carried out
including a summary of significant accounting policies and by the Income Tax Department on the Company in November
other explanatory information (hereinafter referred to as “the 2018. Pursuant to notice received in the last quarter of the
Standalone Financial Statements”). year 2019-20, the Company has filed revised tax returns for
Assessment Years 2013-2014 to 2018-2019. Management
In our opinion and to the best of our information and according does not expect any significant additional liability to devolve
to the explanations given to us, the aforesaid Standalone on the Company and no provision has been recognised as
Financial Statements give the information required by the at March 31, 2021. Though the Company has not received
Companies Act, 2013 (“the Act”) in the manner so required any demand notice till date, the uncertainty in the matter
and give a true and fair view in conformity with the accounting remains till the proceedings are concluded. Our opinion is not
principles generally accepted in India, of the state of affairs modified in respect of this matter.
of the Company as at March 31, 2021, its profit and other
comprehensive income, its changes in equity and its cash Key Audit Matters
flows for the year ended on that date. Key audit matters are those matters that, in our professional
Basis for Opinion judgment, were of most significance in our audit of the
Standalone Financial Statements of the current period. These
We conducted our audit in accordance with the Standards matters were addressed in the context of our audit of the
on Auditing (“SAs”) specified under section 143(10) of the Standalone Financial Statements as a whole, and in forming
Act. Our responsibilities under those Standards are further our opinion thereon, and we do not provide a separate opinion
described in the Auditor’s Responsibilities for the Audit of the on these matters.
Standalone Financial Statements section of our report. We
Contingent Liabilities Principle Audit Procedures

The Company operates in various states within India, i. Obtained an understanding of key internal financial
exposing it to a variety of different Central and State laws controls in respect of assessment of litigations and
and regulations and interpretations thereof. In this complex claims relating to the relevant laws and regulations;
regulatory environment, there is a high risk of litigations and ii. Obtained the Company’s assessment of the pending
claims. The Company’s tax positions have been challenged disputes including where applicable, external legal
by the authorities on a range of matters. Moreover, resolution counsel opinions, developments during FY 2020-21 and
of tax and legal proceedings may span over multiple years post year-end status of litigations;
and may involve protracted negotiations or litigation. The
Company applies significant judgment in estimating the iii. Inquired with the Company’s external legal counsels,
likelihood of the outcome of each case and consequently where applicable and in case of material contingent
its impact on the Standalone Financial Statements. These liabilities, to understand the Company’s assessment of
estimates could change over time as new facts emerge and the litigations and claims;
as each matter progresses. Refer note 42 and note 48 to the
Standalone Financial Statements. Accordingly, we identified
Contingent Liabilities as a key audit matter.

Contingent Liabilities Principle Audit Procedures
iv. Evaluated the Company’s assessments by understanding
precedents set in similar cases and assessed the
reliability of the Company’s past estimates/judgements;
v. Performed test checks on the provision made/ contingent
liabilities/ other significant litigations/disclosures made
in the standalone financial statements; and
vi. Assessed the adequacy of the disclosures made by
the Company relating to contingent liabilities in the
Standalone Financial Statements.
Other Information selection and application of appropriate accounting policies;

The Company’s Board of Directors is responsible for the making judgments and estimates that are reasonable and
other information. The other information comprises the prudent; and design, implementation and maintenance of
Management Discussion and Analysis; Board of Directors’ adequate internal financial controls, that were operating
Report along with its Annexures and Corporate Governance effectively for ensuring the accuracy and completeness
Report included in the Annual Report but does not include of the accounting records, relevant to the preparation and
the Standalone Financial Statements and our auditor’s report presentation of the Standalone Financial Statements that give
thereon. Our opinion on the Standalone Financial Statements a true and fair view and are free from material misstatement,
does not cover the other information and we do not express whether due to fraud or error.
any form of assurance conclusion thereon. In preparing the Standalone Financial Statements, the
In connection with our audit of the Standalone Financial management is responsible for assessing the Company’s
Statements, our responsibility is to read the other information ability to continue as a going concern, disclosing, as
and, in doing so, consider whether the other information applicable, matters related to going concern and using the
is materially inconsistent with the Standalone Financial going concern basis of accounting unless management either
Statements or our knowledge obtained in the audit or intends to liquidate the Company or to cease operations, or
otherwise appears to be materially misstated. If, based on the has no realistic alternative but to do so.
work we have performed, we conclude that there is a material Those Board of Directors are also responsible for overseeing
misstatement of this other information; we are required to the Company’s financial reporting process.
report that fact. We have nothing to report in this regard.
Auditor’s Responsibilities for the Audit of the Standalone
Responsibilities of Management and Those Charged with Financial Statements
Governance for the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about
The Company’s Board of Directors is responsible for the whether the Standalone Financial Statements as a whole
matters stated in section 134(5) of the Act with respect to are free from material misstatement, whether due to fraud
the preparation of these Standalone Financial Statements or error, and to issue an auditor’s report that includes our
that give a true and fair view of the financial position, opinion. Reasonable assurance is a high level of assurance
financial performance (including other comprehensive but is not a guarantee that an audit conducted in accordance
income), changes in equity and cash flows of the Company with SAs will always detect a material misstatement when it
in accordance with the accounting principles generally exists. Misstatements can arise from fraud or error and are
accepted in India, including the Indian Accounting Standards considered material if, individually or in the aggregate, they
(“Ind AS”) specified under section 133 of the Act read with could reasonably be expected to influence the economic
the Companies (Indian Accounting Standards) Rules, 2015, decisions of users taken on the basis of these Standalone
as amended. Financial Statements.
This responsibility also includes maintenance of adequate As part of an audit in accordance with SAs, we exercise
accounting records in accordance with the provisions of professional judgement and maintain professional skepticism
the Act for safeguarding of the assets of the Company and throughout the audit.
for preventing and detecting frauds and other irregularities;

We also: We also provide those charged with governance with a
• Identify and assess the risks of material misstatement statement that we have complied with relevant ethical
of the Standalone Financial Statements, whether due requirements regarding independence, and to communicate
to fraud or error, design and perform audit procedures with them all relationships and other matters that may
responsive to those risks, and obtain audit evidence reasonably be thought to bear on our independence, and
that is sufficient and appropriate to provide a basis where applicable, related safeguards.
for our opinion. The risk of not detecting a material From the matters communicated with those charged with
misstatement resulting from fraud is higher than for governance, we determine those matters that were of
one resulting from error, as fraud may involve collusion, most significance in the audit of the Standalone Financial
forgery, intentional omissions, misrepresentations, or Statements of the current period and are therefore the key
the override of internal control. audit matters. We describe these matters in our auditor’s
• Obtain an understanding of internal controls relevant to report unless law or regulation precludes public disclosure
the audit in order to design audit procedures that are about the matter or when, in extremely rare circumstances,
appropriate in the circumstances. Under section 143(3) we determine that a matter should not be communicated in
(i) of the Act we are also responsible for expressing our our report because the adverse consequences of doing so
opinion on whether the Company has adequate internal would reasonably be expected to outweigh the public interest
financial controls with reference to the Standalone benefits of such communication.
Financial Statements in place and the operating Other Matter
effectiveness of such controls.
The Standalone Financial Statements of the Company
• Evaluate the appropriateness of accounting policies for the year ended March 31, 2020, were audited by other
used and the reasonableness of accounting estimates auditors who had expressed an unmodified opinion on those
and related disclosures made by management. statements on June 30, 2020.
• Conclude on the appropriateness of management’s use Report on Other Legal and Regulatory Requirements
of the going concern basis of accounting and, based 1. As required by the Companies (Auditor’s Report) Order,
on the audit evidence obtained, whether a material 2016 (“the Order”), issued by the Central Government
uncertainty exists related to events or conditions that of India in terms of sub-section (11) of section 143 of
may cast significant doubt on the Company’s ability the Act, we give in the Annexure A; a statement on the
to continue as a going concern. If we conclude that matters specified in paragraphs 3 and 4 of the Order, to
a material uncertainty exists, we are required to draw the extent applicable.
attention in our auditor’s report to the related disclosures
in the Standalone Financial Statements or, if such 2. As required by Section 143(3) of the Act, we report that:
disclosures are inadequate, to modify our opinion. Our
a) We have sought and obtained all the information
conclusions are based on the audit evidence obtained
and explanations which to the best of our
up to the date of our auditor’s report. However, future
knowledge and belief were necessary for the
events or conditions may cause the Company to cease
purposes of our audit.
to continue as a going concern.
b) In our opinion, proper books of account as
• Evaluate the overall presentation, structure and content
required by law have been kept by the Company
of the Standalone Financial Statements, including the
so far as it appears from our examination of those
disclosures, and whether the Standalone Financial
books.
Statements represent the underlying transactions and
events in a manner that achieves fair presentation. c) The Balance Sheet, the Statement of Profit and
Loss (including other comprehensive income),
We communicate with those charged with governance
the Statement of Changes in Equity and the
regarding, among other matters, the planned scope and
Statement of Cash Flows dealt with by this Report
timing of the audit and significant audit findings, including
are in agreement with the books of account.
any significant deficiencies in internal controls that we
identify during our audit.

d) In our opinion, the aforesaid Standalone Financial (i) The Company has disclosed the impact of
Statements comply with the Indian Accounting pending litigations on its financial position
Standards specified under Section 133 of the in its Standalone Financial Statements –
Act, read with Companies (Indian Accounting Refer Note 42;
Standards) Rules, 2015, as amended.
(ii) The Company did not have any long-term
e) On the basis of the written representations contracts including derivative contracts for
received from the directors as on March 31, 2021 which there were any material foreseeable
taken on record by the Board of Directors, none of losses as at March 31, 2021;
the directors is disqualified as on March 31, 2021
(iii) There is no delay in amount required to be
from being appointed as a director in terms of
transferred, to the Investor Education and
Section 164 (2) of the Act.
Protection Fund by the Company during
f) With respect to the adequacy of the internal the year ended March 31, 2021 except the
financial controls with reference to the Standalone following:
Financial Statements of the Company and the
operating effectiveness of such controls, refer to Year Type of Dividend Status
our separate Report in Annexure B. dividend unpaid in
Lakhs
g) As required by section 197 (16) of the Act; in
1997- Final 0.37 Not yet transferred to
our opinion and according to information and
1998 Investor Education and
explanation provided to us, the remuneration paid/
Protection Fund due
provided by the Company to its directors for the
to legal dispute with
current year is in accordance with the provisions
regards ownership of
of section 197 of the Act and remuneration paid/
shares which remains
provided to directors is not in excess of the limit
unresolved
laid down under this section.
For P G BHAGWAT LLP
h) With respect to the other matters to be included in
the Auditor’s Report in accordance with Rule 11 of
Firm Registration No.: 101118W/W100682
the Companies (Audit and Auditors) Rules, 2014,
in our opinion and to the best of our information Abhijeet Bhagwat
and according to the explanations given to us: Partner
Membership No.: 136835
UDIN: 21136835AAAABN3471
Place: Pune
Date: 28 May 2021

Annexure A to the Independent Auditors’ Report iv. In our opinion and according to the information and
explanations given to us, the Company has complied
Referred to in paragraph 1 under the heading, “Report on
with the provisions of Sections 185 and 186 of the Act
Other legal and Regulatory Requirements” of our report on
with respect to loans, investments, guarantees and
even date:
security, as applicable.
i. (a) The Company has maintained proper records
v. In our opinion and according to the information
showing full particulars, including quantitative
and explanations given to us, the Company has not
details and situation of property, plant and
accepted any deposits from the public within the
equipment.
meaning of Sections 73 to 76 of the Act and the Rules
(b) The Company has a regular program of physical made thereunder.
verification of its property, plant and equipment
vi. We have broadly reviewed the cost records maintained
by which its property, plant and equipment
by the Company pursuant to the Companies (Cost
are verified in a phased manner over a period
Records and Audit) Rules, 2014 prescribed by the
of three years. In our opinion, the periodicity
Central Government under Section 148(1) of the Act,
of physical verification of property, plant and
and are of the opinion that, prima facie, the prescribed
equipment is reasonable having regard to the
records have been made and maintained. We have not,
size of the Company and the nature of its assets.
however, made a detailed examination of the records
In accordance with this program majority of
with a view to determine whether they are accurate or
the property, plant and equipment were verified
complete.
during the year and no material discrepancies
were noticed on such verification. vii. (a) According to the information and explanations
given to us and on the basis of our examination of
(c) According to the information and explanations
the records of the Company, amounts deducted/
given to us and on the basis of our examination
accrued in the books of account in respect of
of the records of the Company, title deeds of
undisputed statutory dues including Provident
immovable properties are held in the name of the
fund, Employees’ state insurance, Income tax,
Company except for those immovable properties
Duty of customs, Goods and Services Tax and
held in the name of Yerrowda Investments Limited,
other material statutory dues have been regularly
which is a jointly controlled operation, having net
deposited during the year by the Company with
book value amounting to ` 16,477 Lakhs as at
the appropriate authorities. As explained to us,
March 31, 2021.
during the year, the Company did not have any
ii. The inventory, except goods in transit, has been dues on account of Cess.
physically verified by the management during the year.
According to the information and explanations
In our opinion, the frequency of such verification is
given to us, no undisputed amounts payable
reasonable. In respect of good-in-transit, subsequent
in respect of Provident fund, Employees’ state
goods delivery documents have been verified by the
insurance, Income tax, Duty of customs, Goods
management. The discrepancies noticed on verification
and Service Tax were in arrears as at March 31,
between the physical stocks and the book records were
2021, for a period of more than six months from
not material and have been properly dealt with in the
the date they became payable.
books of account.
(b) According to the information and explanations
iii. We have verified the register maintained by the
given to us, there are no dues of Income tax,
Company under section 189 of the Act and according
Service tax, Sales tax, Value Added Tax, Duty of
to the information and explanations given to us,
customs, Duty of excise and Goods and Service
the Company has not granted any loans, secured
Tax as at March 31, 2021, which have not been
or unsecured to companies, firms, Limited Liability
deposited by the Company on account of
Partnerships or other parties identified and entered by
disputes, except for the following:
the Company in the register maintained under section
189 of the Act. Accordingly, paragraph 3(iii) of the Order
is not applicable to the Company.

Name of Statue Nature if Dues Amount Amount paid Financial Year to Forum where the
(` Lakhs)# under protest which amount relates dispute is pending
(` Lakhs)
The Income Tax Income tax 0.90 - Assessment Year 1993- Income Tax Appellate
Act 1961 demands 1994 Tribunal
The Income Tax Income tax 7196 1901 Assessment Year 1997- Commissioner of
Act 1961 demands 1998, Assessment Years Income Tax (Appeals)
2011-2012 to 2014-2015
The Income Tax Income tax 12 - Assessment Year 1993- Income Tax Assessing
Act 1961 demands 1994 and 2003-2004 Officer
The Central Excise Excise duty 1438 21.62 Financial Year 2007-08 to Customs Excise and
Act, 1944 demands Financial Year 2010-11 and Service Tax Appellate
Financial Year 2015-16 Tribunal
The Central Excise Excise duty 943 - Financial Year 2008-09 to Supreme Court
Act, 1944 demands Financial Year 2009-10
Finance Act, 1994 Service tax 431 18 Financial Years 2015-16 Customs Excise and
(Service Tax) Demands Service Tax Appellate
Tribunal
Finance Act, 1994 Service tax 1881 - Financial Year 2006- 07 to Bombay High Court
(Service Tax) Demands Financial Year 2011-12
Finance Act, 1994 Service tax 142 5.30 Financial Years 2016-17 Customs Excise and
(Service Tax) Demands and 2017-18 Service Tax Appellate
Tribunal, Ahmedabad
The Bombay Sales Sales tax demands 72 - Financial Year 2004-2005 Maharashtra Sales Tax
Tax Act, 1959 Tribunal
The Central Sales Sales tax demands 1996 155 Financial Years 2004-05 to Maharashtra Sales Tax
Tax Act, 1956 2006-2007 and Financial Tribunal
Year 2010-11 to 2013-14
The Central Sales Sales tax demands 775 233 Financial Year 2005-06 to Joint Commissioner
Tax Act, 1956 2009-10 of Commercial Taxes
(Appeals), Belgavi
The Central Sales Sales tax demands 912 - Financial Year 2014-15 Joint Commissioner of
Tax Act, 1956 Appeals of Sales Tax,
Pune
The Maharashtra Sales tax demands 887 425 Financial Year 2005-06, Maharashtra Sales Tax
Value Added Tax Financial Year 2011-12, Tribunal, Mumbai
Act, 2002 Financial Year 2012-13
The Maharashtra Sales tax demands 785 - Financial Years 2016-17 Deputy Commissioner
Value Added Tax of Sales Tax,
Act, 2002 Maharashtra
The Central Sales Sales tax demands 478 33 Financial Years 2015-16 Joint commissioner
Tax Act, 1956 Appeals
The Central Sales Sales tax demands 1929 - Financial Years 2016-17 Deputy Commissioner
Tax Act, 1956 of Sales Tax,
Maharashtra

Name of Statue Nature if Dues Amount Amount paid Financial Year to Forum where the
(` Lakhs)# under protest which amount relates dispute is pending
(` Lakhs)
The Maharashtra Lease tax on crane 0.20 - Financial Year 1990-1991 Dy. Commissioner of
Sales Tax on hire charges Sales Tax, Pune
Transfer of Right to
Use any Goods for
any purpose 1985
The Maharashtra Entry tax on natural 4459 1635 Financial Years 2012-2013 Maharashtra Sales Tax
Tax on the Entry gas procured to 2016-2017 Tribunal, Mumbai
of Goods in Local from outside
Areas of Act, 2002 Maharashtra
The Punjab VAT VAT demands 2 - Financial Year 2008--2009 Punjab Value Added
Act, 2005 Tax Tribunal
Custom Tariff Act, Tariff heading 68 7 Financial Years 2005-2006 Deputy Commissioner
1975 classification to 2009-2010 of Customs
(Preventive) Alibaug
Division, Marine &
Preventive Wing
Mumbai
Custom Tariff Act, Custom Valuation 418 49 Financial Years 2012-2013 The Directorate of
1975 rules to 2015-2016 Revenue Intelligence,
Kolkata
The Gujarat Value VAT demands 2181 161 Financial Years 2015-16 Joint
Added Tax Act, commissioner
2003 Appeals
The Central Sales Non-Availability of 23.13 - Financial Years 2015-16 Joint

Tax Act, 1956 Form C & Form F commissioner
Appeals
#Amount disclosed above includes interest and penalty, wherever applicable
viii. Based on our audit procedures; in our opinion and x. Based upon the audit procedures performed by us and
according to the information and explanations given according to the information and explanation provided
to us, the Company has not defaulted in repayment of to us by the management, no fraud by the Company or
loans or borrowings to any bank. The Company did not any fraud on the Company by its officers or employees
have any loans or borrowings from financial institution has been noticed or reported to us during the year.
or government. The Company has not issued any xi. According to the information and explanation provided
debentures. to us, the managerial remuneration of the current year
ix. In our opinion and according to the information and has been paid and provided in accordance with the
explanations given to us, the Company has not raised requisite approvals mandated by the provisions of
any money by way of initial public offer or further section 197 read with Schedule V to the Act.
public offer (including debt instruments). However, xii. In our opinion and according to the information and
the Company has made a Rights Issue of ` 17,623 explanations given to us, the Company is not a Nidhi
Lakhs (net of share issue expenses) during the current company and the Nidhi Rules, 2014 are not applicable
year. Refer note 43. According to the information and to it. Accordingly, paragraph 3 (xii) of the Order is not
explanations given to us, term loans availed by the applicable to the Company.
company in the current year were, prima facie; applied
for the purpose for which the loans were obtained.

xiii. According to the information and explanations given connected with them during the year. Accordingly,
to us and based on our examination of the records paragraph 3(xv) of the Order is not applicable to the
of the Company, transactions with related parties are Company.
in compliance with Sections 177 and 188 of the Act,
xvi. In our opinion and according to the information and
where applicable, and the details of transactions have
explanations given to us, the Company is not required
been disclosed in the Standalone Financial Statements
to be registered under Section 45-IA of the Reserve
as required by Ind AS 24 ‘Related Party Disclosures’.
Bank of India, 1934.
Refer note 41(b).
xiv. According to the information and explanations given to

us and based on our examination of the records of the For P. G. BHAGWAT LLP
Company, the Company has not made any preferential Chartered Accountants
allotment or private placement of shares or fully or partly Firm Registration No.: 101118W/W100682
convertible debentures during the year. Accordingly,
paragraph 3 (xiv) of the Order is not applicable to the Abhijeet Bhagwat
Company. Partner
xv. According to the information and explanations given UDIN: 21136835AAAABN3471
to us and based on our examination of the records of
the Company, the Company has not entered into any Place: Pune
non-cash transactions with the directors or persons Date: 28 May 2021

Annexure B to the Independent Auditors’ Report Our audit involves performing procedures to obtain audit
evidence about the adequacy of the internal financial controls
Referred to in paragraph 2 (f) under the heading, “Report on
with reference to the Standalone Financial Statements
and their operating effectiveness. Our audit of internal
even date:
financial controls with reference to the Standalone Financial
Report on the Internal Financial Controls with reference to Statements included obtaining an understanding of internal
Standalone Financial Statements under Clause (i) of Sub- financial controls with reference to the Standalone Financial
section 3 of Section 143 of the Companies Act, 2013 (“the Statements, assessing the risk that a material weakness
Act”) exists, and testing and evaluating the design and operating
effectiveness of internal controls based on the assessed
We have audited the internal financial controls with reference risk. The procedures selected depend on the auditor’s
to the Standalone Financial Statements of Deepak Fertilisers judgement, including the assessment of the risks of material
And Petrochemicals Corporation Limited (“the Company”) misstatement of the Standalone Financial Statements,
as of March 31, 2021 in conjunction with our audit of the whether due to fraud or error.
Standalone Financial Statements of the Company for the year
ended on that date. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit
Management’s Responsibility for Internal Financial Controls opinion on the Company’s internal financial controls with
The Company’s management is responsible for establishing reference to the Standalone Financial Statements.
and maintaining internal financial controls based on the Meaning of Internal Financial controls with reference to the
internal controls over financial reporting criteria established Standalone Financial Statements
by the Company considering the essential components
of internal controls stated in the Guidance Note on Audit A company’s internal financial controls with reference
of Internal Financial Controls Over Financial Reporting to the Standalone Financial Statements is a process
issued by the Institute of Chartered Accountants of India. designed to provide reasonable assurance regarding the
These responsibilities include the design, implementation reliability of financial reporting and the preparation of
and maintenance of adequate internal financial controls Standalone Financial Statements for external purposes in
that were operating effectively for ensuring the orderly accordance with generally accepted accounting principles.
and efficient conduct of its business, including adherence A company’s internal financial controls with reference to the
to company’s policies, the safeguarding of its assets, the Standalone Financial Statements includes those policies and
prevention and detection of frauds and errors, the accuracy procedures that (1) pertain to the maintenance of records
and completeness of the accounting records, and the timely that, in reasonable detail, accurately and fairly reflect the
preparation of reliable financial information, as required transactions and dispositions of the assets of the company;
under the Act. (2) provide reasonable assurance that transactions are
recorded as necessary to permit preparation of Standalone
Auditors’ Responsibility Financial Statements in accordance with generally accepted
Our responsibility is to express an opinion on the Company’s accounting principles, and that receipts and expenditures
internal financial controls with reference to the Standalone of the company are being made only in accordance
Financial Statements based on our audit. We conducted with authorisations of management and directors of the
our audit in accordance with the Guidance Note on Audit company; and (3) provide reasonable assurance regarding
of Internal Financial Controls Over Financial Reporting (the prevention or timely detection of unauthorised acquisition,
“Guidance Note”) and the Standards on Auditing, to the use, or disposition of the company’s assets that could have a
extent applicable to an audit of internal financial controls, material effect on the Standalone Financial Statements.
both issued by the Institute of Chartered Accountants of Inherent Limitations of Internal Financial Controls with
India. Those Standards and the Guidance Note require that reference to the Standalone Financial Statements
we comply with ethical requirements and plan and perform
the audit to obtain reasonable assurance about whether Because of the inherent limitations of internal financial
adequate internal financial controls over financial reporting controls with reference to the Standalone Financial
was established and maintained and if such controls operated Statements, including the possibility of collusion or improper
effectively in all material respects. management override of controls, material misstatements

due to error or fraud may occur and not be detected. Also, established by the Company considering the essential
projections of any evaluation of the internal financial controls components of internal controls stated in the Guidance
with reference to the Standalone Financial Statements Note on Audit of Internal Financial Controls Over Financial
to future periods are subject to the risk that the internal Reporting issued by the Institute of Chartered Accountants
financial controls with reference to the Standalone Financial of India.
Statements may become inadequate because of changes in
conditions, or that the degree of compliance with the policies
or procedures may deteriorate. For P. G. BHAGWAT LLP
Opinion
In our opinion, the Company has, in all material respects,
Abhijeet Bhagwat
adequate internal financial controls with reference to
Partner
the Standalone Financial Statements and such internal
financial controls with reference to the Standalone Financial
UDIN: 21136835AAAABN3471
Statements were operating effectively as at March 31, 2021,
based on the internal controls over financial reporting criteria Place: Pune
Date: 28 May 2021

BALANCE SHEET
AS AT 31ST MARCH 2021
(ALL AMOUNTS IN ` LAKHS UNLESS OTHERWISE STATED)
Notes 31 March 2021 31 March 2020
ASSETS
Non-current assets
Property, plant and equipment 3 90,954 97,266
Capital work-in-progress 4 2,063 2,330
Investment property 5 3,146 3,146
Right of use assets 6 9,099 9,320
Other intangible assets 7 766 831
Intangible assets under development 4a 312 16
Investment in subsidiaries and associates 8 82,904 81,601
Financial assets
i. Investments 9 - 69
ii. Loans 13 45,737 2,776
iii. Other financial assets 16 1,507 1,507
Income tax assets (net) 10,215 10,341
Other non-current assets 17 8,580 7,190
Total non-current assets 255,283 216,393
Current assets
Inventories 18 12,854 9,998
Investment in equity share (held-for-sale) 10 - 589
Financial assets
i. Investments 11 10,504 -
ii. Trade receivables 12 25,205 41,245
iii. Cash and cash equivalents 14 2,580 9,005
iv. Other bank balances 15 7,672 9,617
v. Loans 13 5,950 1,389
vi. Other financial assets 16 3,421 892
Other current assets 19 2,698 6,290
Total current assets 70,884 79,025
Total assets 326,167 295,418
EQUITY AND LIABILITIES
Equity
Equity share capital 20 10,268 8,928
Other equity 21 190,826 1,54,886
Total equity 201,094 1,63,814
Liabilities
Non-current liabilities
Financial Liabilities
i. Borrowings 22 64,035 57,676
ii. Lease liabilities 6 1,048 1,291
iii. Other financial liabilities 24 806 307

BALANCE SHEET
Provisions 25 2,917 2,445

Deferred tax liabilities (net) 27 3,043 1,463
Total non-current liabilities 71,849 63,182
Current liabilities
Financial liabilities
i. Borrowings 23 151 17,387
ii. Lease liabilities 6 429 633
iii. Trade payables 26
(a) total outstanding dues of micro and small enterprises 920 268
(b) total outstanding dues of creditors other than micro and small enterprises 26 24,309 31,865
iv. Other financial liabilities 24 18,190 8,904
Other current liabilities 28 2,523 2,694
Total current liabilities 53,224 68,422
Total liabilities 125,073 131,604
Total equity and liabilities 326,167 295,418
Significant accounting policies 1-2
The accompanying notes form an integral part of the financial statements 3 - 51
As per our report of even date attached For and on behalf of Board of Directors of Deepak Fertilisers And
For P. G. BHAGWAT LLP S. C. Mehta Amitabh Bhargava

Chartered Accountants Chairman and Managing Director President & CFO
Firm Registration No.: 10111W/W100682 DIN: 00128204
Abhijeet Bhagwat P. S. Bhattacharyya Ritesh Choudhary

Partner Director Vice-President and
Membership No.: 136835 DIN : 00329479 Head-Legal and Secretarial
Membership No: A19966
Place: Pune Place: Pune

Date: 28 May 2021 Date: 28 May 2021

STATEMENT OF PROFIT AND LOSS
FOR THE YEAR ENDED 31ST MARCH 2021
INCOME
Revenue from operations 29 181,131 170,775
Other income 30 4,590 6,772
Total income 185,721 177,547
Expenses
Cost of materials consumed 31 67,056 74,003
Purchases of stock-in- trade 32 52,907 62,071
Changes in inventories of finished goods & stock-in-trade 33 (2,136) 3,737
Employee benefits expense 34 8,805 6,844
Finance costs 35 8,660 8,525
Depreciation and amortisation expense 36 7,298 7,228
Other expenses 37 15,895 12,946
Total expenses 158,485 175,354
Profit before tax 27,236 2,193
Tax expense
Current tax 5,240 -
Deferred tax (credit)/charge 1,097 (878)
Total tax expense 6,337 (878)
Profit for the year 20,899 3,071
Other comprehensive income ('OCI')
(A) Items that will not be reclassified to profit or loss
Remeasurement of defined benefit obligations (514) (586)
Income tax relating to these items 129 147
Total (A) (385) (439)
(B) Items that will be reclassified subsequently to profit or loss
Cash Flow hedge 494 -
Changes in fair value of investments other than equity shares carried at fair (69) -
value through OCI
Income tax relating to these items (107) -
Total (B) 318 (439)
Other comprehensive income for the year (A+B), net of tax liability (67) 2,632
Total comprehensive income for the year 20,832 2,632

STATEMENT OF PROFIT AND LOSS
Earnings per equity share of ₹ 10 each
i) Basic (in `) 21.65 3.37
ii) Diluted (in `) 20.95 3.37




STATEMENT OF CASH FLOWS
Year ended Year ended

31 March 2021 31 March 2020
Cash flow from operating activities
Adjustments for
Depreciation and amortisation expense 7,298 7,228
Loss on disposal of property, plant and equipment (net of Gain) 82 (3,566)
Provision for doubtful trade receivables 34 318
Bad Debts 57 -
Income on financial guarantee (288) (294)
Gain on sale of investments (519) (1,112)
Changes in fair value of financial assets at fair value through profit or loss (8) 89
Provision for stores and spares (28) 303
Provision for loan given to Subsidiaries 504 -
Provision for capital work in progress 1,020 575
Unrealised loss on embedded derivative contracts (275) 190
Interest income (2,941) (561)
Finance costs 8,660 8,525
Unrealised foreign exchange fluctuations loss (net) (391) 547
Cash generated from operations before working capital changes 40,441 14,435
Change in trade receivables 15,939 2,183
Change in inventories (2,828) 2,859
Change in trade payables (6,815) (21,221)
Change in other financial liabilities 990 655
Change in other financial assets 319 (1,679)
Change in other non-current assets (350) 1,097
Change in other current assets 3,592 (129)
Change in Security deposits (267) -
Change in provisions (11) 496
Change in other current liabilities (171) (1,239)
Cash generated from/ (used in) operations 50,839 (2,543)
Income taxes paid (net) (5,114) (820)
Net cash generated from/ (used in) operating activities 45,725 (3,363)
Cash flows from investing activities (514) (586)
Additonal investment in subsidiary or acquisition of subsidiary (402) (3)
Purchase of property, plant and equipment, intangible assets (including Capital work-in-progress) (4,364) (5,632)
Proceeds from sale of property, plant and equipment 78 9,723
Purchase of investments (143,939) (90,450)
Proceeds from sale of investments 133,612 90,800
Loans to subsidiaries (47,740) (1,315)
Repayment of loans by subsidiaries - 6,000
Repayment of loans by employees and other loans given (7) 20

STATEMENT OF CASH FLOWS

31 March 2021 31 March 2020
Proceeds from sale of investment in associate 940 2,820
Fixed deposit placed (36,296) (19,724)
Fixed deposit matured 38,205 12,426
Interest received 867 1,434
Net cash (used in)/ from investing activities (59,046) 6,099
Cash flows from financing activities
Proceeds from Short term borrowings 126 75,432
Repayment of Short term borrowings (17,513) (85,333)
Proceeds from borrowings - non current 9,994 11,327
Repayment of Long term borrowings (3,231) -
Proceeds from issue of foreign currency convertible bonds 11,150 10,549
Proceeds of call on share capital - 2,500
Proceeds from Right issue of Equity shares 17,623 -
Repayment of lease payables (447) (611)
Interest paid (8,314) (8,482)
Dividends paid (including dividend distribution tax) (2,643) (3,157)
Net cash (used in)/ from financing activities 6,745 2,225
Net (decrease) / increase in cash and cash equivalents (6,576) 4,961
Cash and cash equivalents at the beginning of the year 9,005 4,044
Cash and cash equivalents at end of the year 2,429 9,005
The accompanying notes form an integral part of the financial statements.
Reconciliation of cash and cash equivalents as per the Cash flow statement
Cash and cash equivalents at the end of year 2,580 9,005
Bank overdraft (151) -
2,429 9,005
The above statement of Cash Flows has been prepared under the ‘Indirect Method’ as set out in
Ind AS 7, ‘’Statement of Cash Flows’’




STATEMENT OF CHANGES IN EQUITY
A. EQUITY SHARE CAPITAL
31 March 2021 31 March 2020
Balance at the beginning and at the end of the year 8,928 8,820
Shares issued during the year - 108
Right issue of shares during the year 1,340 -
Total 10,268 8,928
#
Includes borrowing cost ` Nil
B. OTHER EQUITY
Share warrants, Reserves and surplus Items of Other Com- Total
prehensive Income
(OCI)
Securities Capital Share Capital Equity General Retained Fair value Other Items
premium redemption War- Re- portion of reserve earnings through of Com-
reserve rants serve non-current OCI prehensive
borrowings Income
(FCCB)
Balance as at 1 April 2019 10,799 150 5,000 - - 17,710 118,656 (45) (504) 151,766
Profit for the year - - - - - - 3,071 - - 3,071
Other comprehensive - - - - - - - - (439) (439)

income
Total comprehensive - - - - - - 3,071 - (439) 2,632

income for the year
Conversion of Share War- 3,225 - (833) - - - - - - 2,392

rant to Equity
Issue of foreign currency 1,286 1,286

convertible bonds
Dividend - - - - - - (2,646) - - (2,646)
Tax on dividend - - - - - - (544) - - (544)
Balance as at 1 April 2020 14,024 150 4,167 - 1,286 17,710 118,537 (45) (943) 154,886
Profit for the year - - - - 20,899 - - 20,899
Other comprehensive - - - - - 318 (385) (67)

income
Total comprehensive - - - - - - 20,899 318 (385) 20,832

income for the year
Premium on allotment of 16,473 - - - - - - - - 16,473

shares under Right issue
Issue of foreign currency - - - - 1,504 - - - - 1,504

convertible bonds
Share issue expenses (190) - - - - - - - - (190)
Share warrant forfeiture - - (4,167) 4,167 - - - - - -

transferred to Capital
reserve

STATEMENT OF CHANGES IN EQUITY
Share warrants, Reserves and surplus Items of Other Com- Total

prehensive Income
(OCI)
Securities Capital Share Capital Equity General Retained Fair value Other Items
premium redemption War- Re- portion of reserve earnings through of Com-
reserve rants serve non-current OCI prehensive
borrowings Income
(FCCB)
Dividend - - - - - - (2,679) - - (2,679)
Balance as at 31 March 30,307 150 - 4,167 2,790 17,710 136,757 273 (1,328) 190,826
2021
Note: Refer note 21 for nature and purpose of other equity.
The accompanying notes form an integral part of the financial statements




NOTES
TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
1. Corporate Information when otherwise indicated. Wherever, an amount

is presented as INR ‘0’ (zero) it construes value
Deepak Fertlisers and Petrochemicals Corporation
less than ` 50,000.
Limited (“the Company”) is a company domiciled in
India, with its registered office at Pune, Maharashtra, 2.2 Significant accounting estimates, assumptions
India. The Company has been registered under the and judgements
provisions of the Indian Companies Act and its equity The preparation of the Company’s standalone
shares are listed on the National Stock Exchange (NSE) financial statements requires management to
and the Bombay Stock Exchange (“BSE”) in India. make estimates and assumptions that affect the
The Company is primarily engaged in the business reported amounts of revenues, expenses, assets
of manufacture, trading and sale of bulk chemicals. and liabilities, and the accompanying disclosures,
The Company also has operations in value added real and the disclosure of contingent liabilities.
estate. Uncertainty about these assumptions and
estimates could result in outcomes that require
These standalone financial statements were approved a material adjustment to the carrying amount of
for issue in accordance with the resolution of the Board assets or liabilities effected in future periods.
of Directors on May 28, 2021.
Estimates, assumptions and judgements
2. Significant Accounting Policies
The key assumptions concerning the future and
This note provides a list of the significant accounting other key sources of estimation uncertainty at
policies adopted in the preparation of these standalone the reporting date, that have a significant risk of
financial statements. These policies have been causing a material adjustment to the carrying
consistently applied to all the years presented, unless amount of assets and liabilities within the next
otherwise stated. financial year, are described below. The Company
has based its assumptions and estimates on
2.1 Basis of preparation
parameters available when the standalone
The standalone financial statements of the financial statements were prepared. Existing
Company have been prepared in accordance with circumstances and assumptions about future
Indian Accounting Standards (‘Ind AS’) notified developments, however, may change due to
under Section 133 of the Companies Act, 2013 market changes or circumstances arising that are
(“the Act”) read with the Companies (Indian beyond the control of the Company. Such changes
Accounting Standards) Rules, 2015 notified, as are reflected in the assumptions when they occur.
amended thereafter and other relevant provisions
Taxes
of the Act.
There are many transactions and calculations
The standalone financial statements have
undertaken during the ordinary course of
been prepared on an accrual basis and under
business for which the ultimate tax determination
the historical cost convention, except for the
is uncertain. Where the final outcome of these
following assets and liabilities which have been
matters is different from the amounts initially
measured at fair value:
recorded, such differences will impact the current
 Derivative financial instruments; and deferred tax provisions in the period in which
 Certain financial assets and liabilities the tax determination is made. The assessment
measured at fair value (refer accounting of probability involves estimation of a number of
policy on financial instruments); and factors including future taxable income.
 Employee defined benefits plans – plan Useful lives of Property, plant and equipment
assets are measured at fair value (‘PPE’)
The standalone financial statements are The Management reviews the estimated useful
presented in Indian Rupees (“INR”), which is also lives and residual value of PPE at the end of
the Company’s functional currency and all values each reporting period. Factors such as changes
are rounded off to the nearest Lakhs, except

in the expected level of usage, number of shifts Fair value measurement of financial instruments
of production, technological developments and
When the fair values of financial assets and
product life-cycle, could significantly impact the
financial liabilities recorded in the Balance Sheet
economic useful lives and the residual values
cannot be measured based on quoted prices in
of PPE, consequently leading to a change in the
active markets, their fair value is measured using
future depreciation charge.
valuation techniques including the Discounted
Defined benefit plans Cash flow (“DCF”) model. The inputs to these
models are taken from observable markets where
Employee benefit obligations are determined
possible, but where this is not feasible, a degree
using independent actuarial valuations. An
of judgement is required in establishing their
actuarial valuation involves making various
fair values. Judgements include consideration
assumptions that may differ from actual results in
of inputs such as liquidity risk, credit risk and
the future. These include the determination of the
volatility. Changes in assumptions about these
discount rate, future salary increases, experience
factors could affect the reported fair values of
of employee departures and mortality rates. Due
financial instruments.
to the complexities involved in the valuation and
its long-term nature, employee benefit obligation is Impairment of financial assets
highly sensitive to changes in these assumptions.
The Company assesses impairment based on
All assumptions are reviewed at each reporting
the expected credit loss (“ECL”) model on trade
date.
receivables. The Company uses a provision matrix
Provisions for Litigations and claims to determine impairment loss allowance on the
portfolio of trade receivables. The provision matrix
From time to time, the Company is subject to legal
is based on its historically observed default rates
proceedings, the ultimate outcome of each being
over the expected life of the trade receivables.
always subject to many uncertainties inherent in
litigation. A provision for litigation is made when Impairment of non-financial assets
it is considered probable that a payment will be
The Company assesses at each reporting date
made and the amount of the charge/ expense can
whether there is an indication that an asset may
be reasonably estimated. Significant judgement
be impaired. If any indication exists, or when
is made when evaluating, among other factors,
annual impairment testing for an asset is required,
the probability of unfavourable outcomes and
the Company estimates the assets’ recoverable
the ability to make a reasonable estimate of the
amount. An assets’ recoverable amount is
amount of potential loss. Litigation provisions
the higher of an asset’s fair value less costs of
are reviewed at each accounting period and
disposal and its value in use. The recoverable
revisions are made for the changes in facts and
amount is determined for an individual asset
circumstances. Contingent liabilities are disclosed
unless the asset does not generate cashflows
in the notes forming part of the standalone
that are largely independent of those from other
financial statements. Contingent assets are not
assets or group of assets. Where the carrying
disclosed in the standalone financial statements
amount of an asset exceeds its recoverable
unless an inflow of economic benefits is probable.
amount, the asset is considered impaired and
Impairment of investment in subsidiaries it is written down to its recoverable amount. In
assessing value in use, the estimated future
The Company reviews its carrying value of
cashflows are discounted to their present value
investment in subsidiaries carried at cost (net of
using a pre-tax discount rate that reflects current
impairment, if any) annually, or more frequently
market assessment of the time value of money
when there is indication for impairment. If the
and the risk specific to the asset. In determining
recoverable amount is less than its carrying
fair value less cost of disposal, recent market
amount, the impairment loss is accounted for in
transactions are taken in account. If no such
the standalone Statement of Profit and Loss.
transactions can be identified, an appropriate
valuation model is used. These calculations are
corroborated by valuation multiples, quoted share

price for publicly traded entities or other available Revenue from contracts with customers is
fair value indicators. recognised when control of the goods or services
are transferred to the customer i.e. when the
2.3 Summary of significant accounting policies
customer is able to direct the use of the transferred
(a) Current versus non-current classification goods or rendering of services and obtains
substantially all of the remaining benefits at an
The Company presents assets and liabilities in amount that reflects the consideration entitled in
the Balance Sheet based on current/ non-current exchange for those goods or services. The policy
classification. of recognizing the revenue is determined by the
An asset is treated as current when: five-stage model specified in Ind AS 115 “Revenue
from contracts with customers”.
 It is expected to be realised or intended to be
sold or consumed in the normal operating Sale of Goods:
cycle; Revenue is recognised upon transfer of control of
 It is held primarily for the purpose of trading; promised goods to customers for an amount that
reflects the consideration which the Company
 It is expected to be realised within twelve expects to receive in exchange for those goods.
months after the reporting period; or Revenue from the sale of goods is recognised at
the point in time when control is transferred to the

It is a cash or cash equivalent unless
customer which is usually on dispatch/ delivery
restricted from being exchanged or used to
of goods, based on contracts with the customers.
settle a liability for at least twelve months
Revenue is measured based on the transaction
after the reporting period.
price, which is the consideration, adjusted for
The Company classifies all other assets as non- volume discounts, price concessions, incentives,
current. and returns, if any, as specified in the contracts
with the customers. Revenue excludes taxes
A liability is current when: collected from customers on behalf of the

It is expected to be settled in normal government. Accruals for discounts/incentives
operating cycle; and returns are estimated (using the most likely
method) based on accumulated experience
 It is held primarily for the purpose of trading; and underlying schemes and agreements with
customers. Due to the short nature of credit
 It is due to be settled within twelve months
period given to customers, there is no financing
after the reporting period; or
component in the contract.
 There is no unconditional right to defer the
Sale of Services:
settlement of the liability for at least twelve
months after the reporting period. Sale of services are recognised on satisfaction
of performance obligation towards rendering of
The Company classifies all other liabilities
such services.
as non-current.
Interest Income:
Deferred tax assets and liabilities are
classified as non-current assets and Interest Income from a financial asset is
liabilities respectively. recognised when it is probable that the economic
benefits will flow to the Company and the amount
The operating cycle is the time between the
of income can be measured reliably. Interest
acquisition of assets for processing and their
income is accrued on a time basis, by reference
realisation in cash and cash equivalents. The
to the principal outstanding and at the effective
Company has identified twelve months as its
interest rate applicable.
operating cycle for the purpose of current and
non-current classification of assets and liabilities. Dividend Income:
(b) Revenue recognition Dividend income from investments in shares is

recognised when the owner’s right to receive the in the statement of profit and loss.
payment is established.
PPE acquired and put to use for projects are
(c) Property, plant and equipment capitalised and depreciation thereon is included
in the project cost till the project is ready for
An item of property, plant and equipment (‘PPE’)
commissioning. Depreciation on PPE (except
is recognised as an asset if it is probable that
leasehold improvements) is calculated using the
the future economic benefits associated with the
straight-line method to allocate their cost, net of
item will flow to the Company and its cost can be
their residual values, over their estimated useful
measured reliably. These recognition principles
lives. However, leasehold improvements are
are applied to the costs incurred initially to
depreciated on a straight-line method over the
acquire an item of PPE, to the pre-operative and
shorter of their respective useful lives or the tenure
trial run costs incurred (net of sales), if any and
of the lease arrangement. Freehold land is not
also to the costs incurred subsequently to add
depreciated. Schedule II to the Act prescribes the
to, replace part of, or service it and subsequently
useful lives for various class of assets.For certain
carried at cost less accumulated depreciation
class of assets, based on technical evaluation
and accumulated impairment losses, if any.
and assessment, Management believes that the
The cost of PPE includes interest on borrowings useful lives adopted by it reflect the periods over
directly attributable to the acquisition, which these assets are expected to be used.
construction or production of a qualifying asset. A Accordingly, for those assets, the useful lives
qualifying asset is an asset that necessarily takes estimated by the management are different from
a substantial period of time to be made ready for those prescribed in the Schedule. Management’s
its intended use or sale. Borrowing costs and other estimates of the useful lives for various class of
directly attributable cost are added to the cost of PPE are as given below:
those assets until such time as the assets are
substantially ready for their intended use, which Name of assets Estimated useful
generally coincides with the commissioning date life (in years)
of those assets. Computers – Servers 3–6
and Networks
The present value of the expected cost for the
End User Devices such 3–6
decommissioning of an asset after its use is
as desktops and laptops
included in the cost of the respective asset if
the recognition criteria for a provision is met. Vehicles 4–7
Machinery spares that meet the definition of PPE Buildings (other than 61
are capitalised and depreciated over the useful factory buildings) with
life of the principal item of an asset. All other RCC frame structure
repair and maintenance costs, including regular Plant and equipment Various estimated
servicing, are recognised in the standalone including office and lives upto 25 years.
Statement of Profit and Loss as incurred. When laboratory equipments WNA III plant is
a replacement occurs, the carrying value of the depreciated at
replaced part is de-recognised. Where an item of 25.88% on the WDV
property, plant and equipment comprises major method
components having different useful lives, these
Windmill 19
components are accounted for as separate items.
Plant & machinery used 40
An item of property, plant and equipment is for generation of power
derecognized upon disposal or when no future through gas
benefits are expected from its use or disposal.
Gains and losses on disposal of an item of Capital work in progress (CWIP)
property, plant and equipment are determined by Projects under commissioning and other CWIP
comparing the proceeds from disposal with the are carried at cost, comprising direct cost, related
carrying amount of property, plant and equipment, incidental expenses and attributable borrowing
and are recognised within other income/expenses cost. Subsequent expenditures relating to

property, plant and equipment are capitalised only (f) Investment property
when it is probable that future economic benefit
Investment properties are land and buildings that
associated with these will flow to the Company
are held for long term lease rental yields and/ or
and the cost of the item can be measured reliably.
for capital appreciation. Investment properties are
Advances given to acquire property, plant and
initially recognised at cost including transaction
equipment are recorded as non-current assets and
costs. Subsequently investment properties
subsequently transferred to CWIP on acquisition
comprising buildings are carried at cost less
of related assets.
accumulated depreciation and accumulated
(d) Intangible assets impairment losses, if any. Subsequent
expenditure is capitalised to the asset’s carrying
Intangible assets are initially recognized at
amount only when it is probable that future
cost. Following initial recognition, intangible
economic benefits associated with expenditure
assets with finite useful life are carried at
will flow to the Company and the cost of the item
cost less any accumulated amortization and
can be measured reliably. All other repairs and
accumulated impairment losses. Internally
maintenance costs are expensed when incurred.
generated intangibles, excluding capitalized
development costs, are not capitalized and the Depreciation on buildings is provided over the
related expenditure is reflected in the standalone estimated useful lives as specified in note (c)
Statement of Profit and Loss in the period in above. The residual values estimated useful lives
which the expenditure is incurred. and depreciation method of investment properties
are reviewed, and adjusted on prospective basis
The amortization period and the amortization
as appropriate, at each reporting date. The effects
method for an intangible asset with a finite
of any revision are included in the standalone
useful life is reviewed at least at the end of each
Statement of Profit and Loss when the changes
reporting period. Gains or losses arising from de-
arise.
recognition of an intangible asset are measured as
the difference between the net disposal proceeds An investment property is de-recognised when
and the carrying amount of the asset and are either the investment property has been disposed
recognized in the standalone Statement of Profit of or do not meet the criteria of investment
and Loss when the asset is derecognized. property i.e. when the investment property is
permanently withdrawn from use and no future
Name of assets Estimated useful life (in years) economic benefit is expected from its disposal.
Computer software 3 to 8 The difference between the net disposal proceeds
License fees 3 to 8 and the carrying amount of the asset is recognised
in the standalone Statement of Profit and Loss in
(e) Borrowing costs the period of de-recognition.
Borrowing costs that are directly attributable to (g) Non-current assets held for sale
the acquisition, construction or production of an
asset, that necessarily takes a substantial period Non-current assets are classified as held for
of time to get ready for its intended use, are sale if their carrying amount will be recovered
capitalised as a part of the cost of the asset. All principally through a sale transaction rather than
other borrowing costs are expensed in the period through continuing use and a sale is considered
in which they occur. Borrowing costs consist of highly probable. Non-current assets classified
interest and other costs that an entity incurs in as held for sale are measured at lower of their
connection with the borrowing of funds. Borrowing carrying amount and fair value less cost to sell.
cost also includes exchange differences to Non-current assets classified as held for sale are
the extent regarded as an adjustment to the not depreciated or amortised from the date when
borrowing costs. Investment income earned on they are classified as held for sale. Non-current
the temporary investment of specific borrowings assets classified as held for sale are presented
is deducted from the borrowing costs eligible for separately from the other assets and liabilities in
capitalisation. the standalone balance sheet.

(h) Foreign currency transactions and balances Debt instruments at amortised cost
The functional currency of the Company (i.e. the A ‘debt instrument’ is measured at the amortised
currency of the primary economic environment cost if both the following conditions are met:
in which the Company operates) is the Indian
a) The asset is held within a business model
Rupee (`). On initial recognition, all foreign
whose objective is to hold assets for
currency transactions are recorded at exchange
collecting contractual cash flows; and
rates prevailing on the date of the transaction.
Monetary assets and liabilities, denominated in a b) Contractual terms of the asset give rise on
foreign currency, are translated at the exchange specified dates to cash flows that are solely
rate prevailing on the Balance Sheet date and the payments of principal and interest (SPPI) on
resultant exchange gains or losses are recognised the principal amount outstanding.
in the standalone Statement of Profit and Loss.
Non-monetary items, which are measured in After initial measurement, such financial assets
terms of historical cost denominated in a foreign are subsequently measured at amortised cost
currency, are reported using the exchange rate at using the effective interest rate (EIR) method.
the date of the transaction. Amortised cost is calculated by taking into
account any discount or premium on acquisition
(i) Financial instruments and fees or costs that are an integral part of the
EIR. The EIR amortisation is included in other
A Financial instrument is any contract that
income in the standalone Statement of Profit and
gives rise to a financial asset of one entity and a
Loss. The losses arising from impairment are
financial liability or equity instrument of another
recognised in the standalone Statement of Profit
entity.
and Loss. This category generally applies to trade
Financial assets: Initial recognition and and other receivables.
measurement
Debt instrument at FVOCI
All financial assets are recognised initially at
A ‘debt instrument’ is classified as at the FVOCI if
fair value plus, in the case of financial assets
both of the following criteria are met:
not recorded at fair value through profit or loss,
transaction costs that are attributable to the a)
The objective of the business model is
acquisition of the financial asset. Purchases achieved both by collecting contractual
or sales of financial assets that require delivery cash flows and selling the financial assets;
of assets within a time frame established by and
regulation or convention in the market place
(regular way trades) are recognised on the trade b) The asset’s contractual cash flows represent
date, i.e., the date that the Company commits to SPPI. Debt instruments included within the
purchase or sell the asset. FVOCI category are measured initially as
well as at each reporting date at fair value.
Subsequent measurement Fair value movements are recognised in
the other comprehensive income (OCI).
For purposes of subsequent measurement,
On derecognition of the asset, cumulative
financial assets are classified in four categories:
gain or loss previously recognized in OCI
 Debt instruments at amortised cost is reclassified to the standalone Statement
of Profit and Loss. Interest earned whilst
 Debt instruments at fair value through other
holding FVTOCI debt instrument is reported
comprehensive income (FVOCI)
as interest income using the EIR method.

Debt instruments, derivatives and equity
Debt instrument at FVPL
instruments at fair value through profit or
loss (FVPL) FVPL is a residual category for debt instruments.
Any debt instrument, which does not meet the
 Equity instruments measured at fair value
criteria for categorisation as at amortised cost
through other comprehensive income
or as FVOCI, is classified as at FVPL. In addition,
(FVOCI)

the Company may elect to designate a debt expected credit loss (ECL) model for the financial
instrument, which otherwise meets amortised assets which are not fair valued through profit or
cost or FVOCI criteria, as at FVPL. However, loss. Loss allowance for trade receivables with no
such election is allowed only if doing so reduces significant financing component is measured at
or eliminates a measurement or recognition an amount equal to lifetime ECL. For all financial
inconsistency (referred to as ‘accounting assets with contractual cash flows other than
mismatch’). Debt instruments included within the trade receivable, ECLs are measured at an amount
FVPL category are measured at fair value with all equal to the 12-month ECL, unless there has been
changes recognised in the standalone Statement a significant increase in credit risk from initial
of Profit and Loss. recognition in which case those are measured
Equity investments at lifetime ECL. The amount of ECLs (or reversal)
that is required to adjust the loss allowance at the
All equity investments in scope of Ind AS 109 reporting date to the amount that is required to be
are measured at fair value. Equity instruments recognised as an impairment gain or loss in the
which are held for trading and contingent standalone Statement of Profit and Loss.
consideration recognised by an acquirer in a
business combination to which Ind AS 103 Derecognition
applies are classified as at FVPL. For all other A financial asset (or, where applicable, a part
equity instruments, the Company may make of a financial asset or part of a group of similar
an irrevocable election to present in other financial assets) is primarily derecognized (i.e.,
comprehensive income subsequent changes in removed from the Company’s balance sheet)
the fair value. The Company makes such election when:
on an instrument-by-instrument basis. The  The rights to receive cash flows from the
classification is made on initial recognition and is asset have expired, or
irrevocable. If the Company decides to classify an
equity instrument as at FVOCI, then all fair value  The Company has transferred its rights to
changes on the instrument, excluding dividends, receive cash flows from the asset or has
are recognised in the OCI. assumed an obligation to pay the received
cash flows in full without material delay
There is no recycling of the amounts from OCI to to a third party under a ‘pass-through’
the standalone Statement of Profit and Loss, even arrangement and either (a) the Company
on sale of investment. However, the Company has transferred substantially all the risks
may transfer the cumulative gain or loss within and rewards of the asset, or (b) the Company
equity. Equity instruments included within the has neither transferred nor retained
FVPL category are measured at fair value with all substantially all the risks and rewards of
changes recognised in the standalone Statement the asset, but has transferred control of the
of Profit and Loss. asset.
Investments in subsidiaries and associates When the Company has transferred its rights to
Investments in subsidiaries and associates are receive cash flows from an asset or has entered
carried at cost less impairment as per Ind AS 27 into a pass-through arrangement, it evaluates
Consolidated and Separate Financial Statements. if and to what extent it has retained the risks
Where an indication of impairment exists, and rewards of ownership. When it has neither
the carrying amount of the investment is transferred nor retained substantially all of the
assessed and written down immediately to its risks and rewards of the asset, nor transferred
recoverable amount. On disposal of investments control of the asset, the Company continues to
in subsidiaries, the difference between net recognise the transferred asset to the extent of
disposal proceeds and the carrying amounts are the Company’s continuing involvement. In that
recognized in the standalone Statement of Profit case, the Company also recognises an associated
and Loss. liability. The transferred asset and the associated
liability are measured on a basis that reflects
Impairment of financial assets the rights and obligations that the Company has
The Company recognizes loss allowance using the retained.

Financial liabilities financial instruments to hedge its currency
Financial liabilities are classified and measured and interest risk etc. Such derivative financial
at amortised cost or FVPL. A financial liability instruments are initially recognised at fair value
is classified as at FVPL if it is classified as on the date on which a derivative contract is
held‑for‑trading, or it is a derivative or it is entered into and are subsequently re-measured
designated as such on initial recognition. at fair value. Derivatives are carried as financial
Financial liabilities at FVPL are measured at fair assets when the fair value is positive and as
value and net gains and losses, including any financial liabilities when the fair value is negative.
interest expense, are recognised in Statement Offsetting
of Profit and Loss. Other financial liabilities are Financial assets and financial liabilities are offset
subsequently measured at amortised cost using and the net amount presented in the standalone
the effective interest method. Interest expense Balance Sheet when, and only when, the Company
and foreign exchange gains and losses are currently has a legally enforceable right to set off
recognised in standalone Statement of Profit and the amounts and it intends either to settle them
Loss. Any gain or loss on derecognition is also on a net basis or to realise the asset and settle the
recognized in standalone Statement of Profit and liability simultaneously.
Loss.
Financial guarantee contracts
Borrowings
Financial guarantee contracts are recognised
Borrowings are initially recognised at fair value, as a financial liability at the time of issuance of
net of transaction costs incurred. Borrowings guarantee. The liability is initially measured at fair
are subsequently measured at amortised cost. value and is subsequently measured at the higher
Any difference between the proceeds (net of of the amount of loss allowance determined,
transaction costs) and the redemption amount is or the amount initially recognised less, the
recognised in profit or loss over the period of the cumulative amount of income recognised.
borrowings using the effective interest method.
Fees paid on the establishment of loan facilities Fair value of financial instruments
are recognised as transaction costs of the loan In determining the fair value of its financial
to the extent that it is probable that some or all instruments, the Company uses a variety of
of the facility will be drawn down. In this case, the methods and assumptions that are based on
fee is deferred until the drawdown occurs. To the market conditions and risks existing at each
extent there is no evidence that it is probable that reporting date. The methods used to determine
some or all of the facility will be drawn down, the fair value include discounted cash flow analysis,
fee is capitalised as a prepayment for liquidity available quoted market prices and dealer quotes.
services and amortised over the period of the All methods of assessing fair value result in
facility to which it relates. general approximation of value.
Derecognition (j) Leases
A financial liability is derecognised when the A contract is, or contains, a lease if the contract
obligation under the liability is discharged or conveys the right to control the use of an
cancelled or expires. When an existing financial identified asset for a define period of time in
liability is replaced by another from the same exchange for consideration. To assess whether a
lender on substantially different terms, or the contract conveys the right to control the use of an
terms of an existing liability are substantially identified assets, the Company assesses whether:
modified, such an exchange or modification (i) the contact involves the use of an identified
is treated as the derecognition of the original asset (ii) the Company has substantially all of the
liability and the recognition of a new liability. The economic benefits from use of the asset through
difference in the respective carrying amounts is the period of the lease and (iii) the Company has
recognised in the standalone Statement of Profit the right to direct the use of the asset.
and Loss.
As a lessee, the Company recognises a right
Derivative financial instruments of use asset and a lease liability at the lease
The Company uses various types of derivative commencement date. The right of use asset

is initially measured at cost, which comprises a specific asset or assets and the arrangement
the initial amount of the lease liability adjusted conveys a right to use the asset or assets,
for any lease payments made at or before the even if that right is not explicitly specified in an
commencement date, plus any initial direct costs arrangement.
incurred and an estimate of costs to dismantle (k) Inventories
and remove the underlying asset or to restore the
underlying asset or the site on which it is located, Cost of raw materials, traded goods, packing
less any lease incentives received. The right of materials and stores and spares comprises
use asset is subsequently depreciated using the cost of purchases and cost of finished goods
straight-line method from the commencement comprises direct materials, direct labour and
date to the earlier of the end of the useful life an appropriate proportion of variable and fixed
of the right of use asset or the end of the lease overhead expenditure, the latter being allocated
term. The estimated useful lives of right of use on the basis of normal operating capacity. Cost of
assets are determined on the same basis as inventories also include all other costs incurred in
those of property and equipment. In addition, bringing the inventories to their present location
the right of use asset is periodically reduced by and condition. Costs of purchased inventory
impairment losses, if any, and adjusted for certain are determined after deducting rebates and
remeasurements of the lease liability. discounts.
The lease liability is initially measured at the 

Raw materials, traded goods, packing
present value of the lease payments that are not materials and stores and spares are valued
paid at the commencement date, discounted at the lower of cost and net realisable
using the interest rate implicit in the lease or, value. Cost is determined on the basis of
if that rate cannot be readily determined, the moving weighted average method. The
Company’s incremental borrowing rate. For aforesaid items are valued below cost if the
leases with reasonably similar characteristics, the finished products in which they are to be
Company, on a lease by lease basis, may adopt incorporated are expected to be sold at a
either the incremental borrowing rate specific to loss.
the lease or the incremental borrowing rate for the  Finished goods and by-products including
portfolio as a whole. Lease payments included in those held for captive consumption are
the measurement of the lease liability comprise valued at the lower of cost and net realisable
the fixed payments, including in-substance fixed value. Cost is determined on actual cost
payments and lease payments in an optional basis. Cost of finished goods includes
renewal period if the Company is reasonably taxes and duties, as applicable. Variances,
certain to exercise an extension option. exclusive of abnormally low volume and
The lease liability is measured at amortised cost operating performance, are adjusted to
using the effective interest method. The Company inventory. Stock-in-trade is valued at lower
has elected not to recognise right of use assets of cost and net realisable value.
and lease liabilities for short-term leases that  Net realizable value is the estimated selling
have a lease term of 12 months or less and leases price in the ordinary course of business,
of low-value assets. The Company recognises the less estimated costs of completion and
lease payments associated with these leases as the estimated costs necessary to make the
an expense on a straight-line basis over the lease sale.
term. The Company has applied a single discount
(l) Impairment of non-financial assets
rate to a portfolio of leases of similar assets in
similar economic environment with a similar end The Company assesses at each reporting date,
date. whether there is an indication that an asset may
The determination of whether an arrangement is
annual impairment testing for an asset is required,
(or contains) a lease is based on the substance of
the Company estimates the assets’ recoverable
the arrangement at the inception of the lease. The
amount. An assets’ recoverable amount is
arrangement is, or contains, a lease if fulfilment
the higher of an asset’s fair value less costs of
of the arrangement is dependent on the use of
disposal and its value in use. The recoverable

amount is determined for an individual asset expense relating to a provision is presented in the
unless the asset does not generate cashflows standalone Statement of Profit and Loss. net of
that are largely independent of those from other any reimbursements.
assets or group of assets. Where the carrying If the effect of time value of money is material,
amount of an asset exceeds its recoverable provisions are discounted using a current pre-
amount, the asset is considered impaired and it is tax rate that reflects, when appropriate, the risks
written down to its recoverable amount. specific to the liability. When discounting is used,
In assessing value in use, the estimated future the increase in the provision due to the passage
cashflows are discounted to their present value of time is recognized as a finance cost. Provisions
using a pre-tax discount rate that reflects current are reviewed at each balance sheet date and are
market assessment of the time value of money adjusted to reflect the current best estimates.
and the risk specific to the asset. In determining (n) Employee benefits
fair value less cost of disposal, recent market
transactions are taken in account. If no such Employee benefits consist of provident fund,
transactions can be identified, an appropriate superannuation fund, gratuity fund, compensated
valuation model is used. These calculations are absences, long service awards, post-retirement
corroborated by valuation multiples, quoted share medical benefits, directors’ retirement obligations
price for publicly traded entities or other available and family benefit scheme.
fair value indicators. For assets excluding goodwill, Post-employment benefit plans
an assessment is made at each reporting date
Defined contribution plans
to determine whether there is an indication that
previously recognised impairment loss no longer Payments to a defined contribution retirement
exist or has decreased. If such indication exists, benefit scheme for eligible employees in the
the Company estimates the assets’ or CGU’s form of provident fund and superannuation fund
recoverable amount. A previously recognised are charged as an expense as they fall due. Such
impairment loss is reversed only if there has been benefits are classified as Defined Contribution
a change in the assumptions used to determine Schemes as the Company does not carry any
the assets’ recoverable amount, since the last further obligations, apart from the contributions
impairment loss was recognised. The reversal made.
is limited so that the carrying amount of the Defined benefit plans
asset does not exceed its recoverable amount,
For defined benefit schemes in the form of gratuity
nor exceed the carrying amount that would have
fund, the cost of providing benefits is actuarially
been determined, net of depreciation, had no
determined using the projected unit credit
impairment loss been recognised for the asset in
method, with actuarial valuations being carried
prior years.
out at each Balance Sheet date. The retirement
Such reversal is recognised in the standalone benefit obligation recognised in the standalone
Statement of Profit and Loss. balance sheet represents the present value of
(m) Provisions the defined benefit obligation as reduced by the
fair value of scheme assets. The present value of
Provisions are recognised when the Company has
the said obligation is determined by discounting
a present obligation (legal or constructive), as a
the estimated future cash outflows, using market
result of a past event, it is probable that an outflow
yields of government bonds of equivalent term
of resources embodying economic benefits will
and currency to the liability. The interest income /
be required to settle the obligation and a reliable
(expense) are calculated by applying the discount
estimate can be made of the amount of the
rate to the net defined benefit liability or asset.
obligation.
The net interest income / (expense) on the
When the Company expects some or all of a
net defined benefit liability is recognised in
provision to be reimbursed, for example, under
the standalone Statement of Profit and Loss.
an insurance contract, the reimbursement is
Remeasurements, comprising of actuarial gains
recognized as a separate asset, but only when
and losses, the effect of the asset ceiling (if any),
the reimbursement is virtually certain. The
are recognised immediately in the standalone

Balance Sheet with a corresponding charge or subsequently re-measured at fair value at the
credit to retained earnings through OCI in the end of each reporting period. At the inception
period in which they occur. Remeasurements are of a hedge relationship, the Company formally
not reclassified to the standalone Statement of designates and documents the hedge relationship
Profit and Loss in subsequent periods. Changes in to which the Company wishes to apply hedge
the present value of the defined benefit obligation accounting and the risk management objective
resulting from plan amendments or curtailments and strategy for undertaking the hedge. The
are recognised immediately in the standalone accounting for subsequent changes in fair value
Statement of Profit and Loss as past service cost. depends on whether the derivative is designated
Short-term employee benefits as a hedging instrument, and if so, the nature
of the item being hedged and the type of hedge
The short-term employee benefits expected to relationship which is designated.
be paid in exchange for the services rendered
by employees is recognised during the period Cash flow hedges that qualify for hedge
when the employee renders the service. These accounting: The effective portion of changes in
benefits include compensated absences such the fair value of derivatives that are designated
as paid annual leave and performance incentives and qualify as cash flow hedges is recognised
which are expected to occur within twelve months in ‘other comprehensive income’ in cash flow
after the end of the period in which the employee hedging reserve within equity, limited to the
renders the related services. cumulative change in fair value of the hedged
item on a present value basis from the inception
The cost of compensated absences is accounted of the hedge. The gain or loss relating to the
as under: ineffective portion is recognised immediately
(a)
In case of accumulating compensated in the standalone Statement of Profit and Loss.
absences, when employees render service Amounts accumulated in equity are reclassified
that increase their entitlement of future to the standalone Statement of Profit and Loss in
compensated absences; and the periods in which the hedged item affects the
profit or loss.
(b) In case of non - accumulating compensated
absence, when the absences occur. If the hedging relationship no longer meets
the criteria for hedge accounting, then hedge
Other long-term employee benefits
accounting is discontinued prospectively. If the
Compensated absences which are not expected hedging instrument expires or is sold, terminated
to occur within twelve months after the end of the or exercised, the cumulative gain or loss on the
period in which the employee renders the related hedging instrument recognised in cash flow
services are recognised as a liability. The cost of hedging reserve till the period the hedge was
providing benefits is actuarially determined using effective remains in cash flow hedging reserve
the projected unit credit method, with actuarial until the underlying transaction occurs. The
valuations being carried out at each Balance cumulative gain or loss previously recognised in
Sheet date. Long Service Awards are recognised the cash flow hedging reserve is transferred to the
as a liability at the present value of the obligation Statement of Profit and Loss upon the occurrence
at the Balance Sheet date. All gains/losses due to of the underlying transaction. If the forecasted
actuarial valuations are immediately recognised transaction is no longer expected to occur, then
in the standalone Statement of Profit and Loss. the amount accumulated in cash flow hedging
(o) Derivative financial instruments reserve is reclassified in the Statement of Profit
and Loss.
The Company uses derivative financial instruments
such as forward currency contracts and interest Derivatives that are not designated as hedges: The
rate swaps to hedge its foreign currency risks Company enters into certain derivative contracts
and interest rate risks respectively as applicable. to hedge foreign exchange risks which are not
Such derivative financial instruments are initially designated as hedges. Such derivative contracts
recognised at fair value on the date on which are accounted for at each reporting date at fair
the derivative contract is entered into and are value through the standalone Statement of Profit
and Loss.

(p) Cash and cash equivalents ventures, when the timing of the reversal of
Cash and cash equivalents in the balance temporary differences can be controlled and it is
sheet comprise cash at banks and on hand and probable that the temporary differences will not
short-term deposits with an original maturity reverse in the foreseeable future.
of three months or less, which are subject to an Deferred tax assets on deductible temporary
insignificant risk of changes in value. differences, the carry forward of unused tax
For the purpose of the statement of cash flows, credits and any unused tax losses are recognized
cash and cash equivalents consist of cash and to the extent that there is reasonably certainty that
short-term deposits, as defined above. taxable profits will be available against which the
deductible temporary differences and the carry
(q) Cash dividend forward of unused tax credits and tax losses can
The Company recognizes a liability to make cash be utilized, except when the deferred tax asset
distributions to equity shareholders when the relating to the deductible temporary difference
distribution is authorized and the distribution is arises from the initial recognition of an asset or
no longer at the discretion of the Company. As liability in a transaction that is not a business
per the corporate laws in India, a distribution is combination and at the time of the transaction,
authorized when it is approved by the shareholders affects neither the accounting profit nor taxable
of the Company. profit or loss.
(r) Income taxes The carrying amount of deferred tax assets is
reviewed at each reporting period and is reduced
Current income tax assets and liabilities are
to the extent that it is no longer probable that
measured at the amounts expected to be
sufficient taxable profits will be available to allow
recovered from or paid to the taxation authorities
all or part of the deferred tax asset to be utilized.
in accordance with the Income Tax Act, 1961.
Unrecognised deferred tax assets are re-assessed
The tax rates and tax laws used to compute
at each reporting date and are recognized to the
the amounts are those that are enacted or
extent that it has become reasonably certain that
substantively enacted at the reporting date.
future taxable profits will allow the deferred tax
Current income tax relating to items recognized asset to be recovered.
outside profit and loss is recognized outside profit
Deferred tax assets and liabilities are measured
and loss (either in other comprehensive income
at the tax rates that are expected to apply in the
or in equity). Current tax items are recognized in
year when the asset or liability is settled based
correlation to the underlying transaction either in
on tax rates and tax laws that have been enacted
OCI or directly in equity. Management periodically
or substantively enacted at the reporting date.
evaluates positions taken in the tax returns with
Deferred tax relating to items recognized outside
respect to situations in which applicable tax
profit and loss is recognized outside profit and
regulations are subject to interpretation and
loss (either in other comprehensive income or
establishes provisions where appropriate.
in equity). Deferred tax items are recognized in
Deferred income tax is provided using the liability correlation to the underlying transaction either in
method on temporary differences between the OCI or directly in equity.
tax bases of assets and liabilities and their
Deferred tax assets and liabilities are offset when
carrying amounts for financial reporting purposes
there is a legally enforceable right to offset current
at the reporting date. Deferred tax liabilities are
tax assets and liabilities and when the deferred
recognized for all taxable temporary differences
tax balances relate to the same taxation authority.
except when the deferred tax liability arises from
the initial recognition of goodwill or an asset or (s) Earnings per share
liability in a transaction that is not a business Basic earnings per share is calculated by dividing
combination and at the time of the transaction, the net profit or loss for the period attributable
affects neither the accounting profit nor taxable to the equity shareholders by the weighted
profit or loss; or in respect of taxable temporary average number of equity shares outstanding
differences associated with investment in during the period. For the purposes of calculating
subsidiaries, associates and interests in joint diluted earnings per share, the net profit for the

period attributable to equity shareholders and A contingent asset is not recognized unless
the weighted average number of equity shares it becomes virtually certain that an inflow of
outstanding during the period are adjusted for the economic benefits will arise. When an inflow
effects of all dilutive potential equity shares. of economic benefits is probable, contingent
(t) Segment reporting assets are disclosed in the standalone financial
statements.
Based on the “Management approach” as
defined in Ind AS 108: Operating Segments, the Contingent liabilities and contingent assets are
Chief Operating Decision Maker evaluates the reviewed at each balance sheet date.
Company’s performance and allocates resources (w) Changes in significant accounting policies
based on an analysis of various performance There have been no changes in accounting
indicators by business segments. Inter-segment policies during the Financial year 2020-21 and
sales and transfers are reflected at market prices. 2019-20, except for implementation of Ind AS
Segment policies 116 as described in point 2.3 (j) of accounting
The Company prepares its segment information in policies.
conformity with the accounting policies adopted (x) Recent Pronouncements and note on COVID-19
for preparing and presenting the standalone 1. Recent Accounting Pronouncements
financial statements as a whole. Common
allocable costs are allocated to each segment Ministry of Corporate Affairs (“MCA”) notifies
on an appropriate basis. Revenues, expenses, new standard or amendments to the existing
assets and liabilities, which are common to the standards. There is no such notification which
enterprise as a whole and are not allocable to would have been applicable from 1st April, 2021.
segments on a reasonable basis, have been MCA issued notifications dated 24th March, 2021
treated as “unallocated revenues/expenses/ to amend Schedule III to the Companies Act, 2013
assets/ liabilities”, as the case may be. to enhance the disclosures required to be made
by the Company in its financial statements. These
(u) Business combinations amendments are applicable to the Company for
The Company accounts for the common control the financial year starting 1st April, 2021.
transactions in accordance with the ‘pooling of 2. Note on COVID-19
interests’ method prescribed under Ind AS 103
– Business Combinations for common control In view of the lockdown across the country
transactions where all the assets and liabilities due to the outbreak of COVID pandemic during
of transferor companies would be recorded at the the year, operations in many of the Company’s
book value as at the Appointed date. locations (manufacturing, offices, etc.) are
scaled down or shut down in compliance with the
(v) Contingent Liability and Contingent Assets directives/orders issued by the local Panchayat/
A contingent liability is a possible obligation that Municipal Corporation/State/Central Government
arises from past events whose existence will be authorities.
confirmed by the occurrence or non-occurrence As per management’s assessment, no significant
of one or more uncertain future events not wholly impact on carrying amounts of inventories,
within the control of the Company or a present intangible assets, trade receivables, investments
obligation that is not recognized because it and other financial assets is expected, and
is not probable that an outflow of economic management will continue to monitor changes
resources will be required to settle the obligation. in future economic conditions. The eventual
A contingent liability also arises in extremely outcome of the impact of the global health
rare cases where there is a liability that cannot pandemic may be different from those estimated
be recognized because it cannot be measured as on the date of approval of these standalone
reliably. The Company does not recognize a financial statements.
contingent liability but discloses its existence in
the standalone financial statements.

Note 3: Property, Plant & Equipment
Free- Lease- Buildings Plant and Bearer Electric Furniture Office Laboratory Vehicles Total
hold hold Equipment plants Installations and Equipment Equipment
Land Land Fixtures
Gross carrying amount
Balance as at 1 April 2019 14,705 13,792 22,697 30,554 258 2,006 891 1,732 275 1,867 88,777
Additions - - 10,391 40,907 - 167 213 308 36 253 52,275
Disposals - - - (3,260) (258) - - (102) (41) (220) (3,881)
Adjustment (Transfer to (3,095) - - - - - - - - (3,095)
Investment property)*
Reclassified on account of (13,792) (258) - - - - - - -
adoption of Ind AS 116 (14,050)
Gross carrying amount as 11,610 - 32,830 68,201 - 2,173 1,104 1,938 270 1,900 120,026
at 31 March 2020
Accumulated depreciation
Balance as at 1 April 2019 - (450) (2,177) (12,805) (24) (1,132) (430) (990) (179) (849) (19,036)
Depreciation charge for - (1,487) (5,257) (25) (164) (116) (326) (22) (455) (7,852)
the year (refer footnote 1
below)

On disposals - - 3,212 49 - - 90 39 145 3,535
Adjustment (Transfer to - - - - - - - - -
Investment property)*
Reclassified on account of 450 143 - - - - - - - 593
adoption of Ind AS 116
Accumulated depreciation - - (3,521) (14,850) - (1,296) (546) (1,226) (162) (1,159) (22,760)
as at 31 March 2020
Net carrying amount as at 11,610 - 29,309 53,351 - 877 558 712 108 741 97,266
31 March 2020
Balance as at 1 April 2020 11,610 - 32,830 68,201 - 2,173 1,104 1,938 270 1,900 120,026
Additions - - - 1,199 - 8 7 140 34 57 1,445
Disposals - - (186) (184) - - - (76) (15) (390) (851)
Gross carrying amount as 11,610 - 32,644 69,216 - 2,181 1,111 2,002 289 1,567 120,620
at 31 March 2021
Note 3: Property, Plant & Equipment
Free- Lease- Buildings Plant and Bearer Electric Furniture Office Laboratory Vehicles Total
hold hold Equipment plants Installations and Equipment Equipment
Land Land Fixtures
Balance as at 1 April 2020 - - (3,521) (14,850) - (1,296) (546) (1,226) (162) (1,159) (22,760
Depreciation charge for - - (1,563) (5,144) - (172) (108) (258) (24) (311) (7,580)
the year (refer footnote 1
below)
On disposals - - 160 174 - - - 72 14 254 674
Accumulated depreciation - - (4,924) (19,820) - (1,468) (654) (1,412) (172) (1,216)
as at 31 March 2021 (29,666)
Net carrying amount as at 11,610 - 27,720 49,396 - 713 457 590 117 351 90,954
31 March 2021
1. Depreciation amounting to ₹ 1,181 Lakhs (31 March 2020 : ₹ 1,473 Lakhs) has been recharged to 100% subsidiary Smartchem Technologies Limited
for sharing of common facilities.
*During the year ended March 31, 2020. the management categorised the Freehold vacant land parcel located at Yerwada, Pune as Investment property
as per Ind AS 40, based on the re-assessment of use of respective vacant land parcel.
Refer Note 22 foot note for information on Property, plant and equipment provided as security by the Company.
Refer Note 35 for finance cost capitalized.
Refer Note 34 for salary cost capitalized.

Note 4: Capital Work in Progress
31 March 2021 31 March 2020
Projects (Mainly comprising of building and plant & machinery) 1,211 1,725
Others 852 605
Total 2,063 2,330
Note 4a: Intangible Assets Under Development
31 March 2021 31 March 2020
Intangible assets under Development 312 16
Total 312 16
Note 5: Investment Property
31 March 2021 31 March 2020
Gross block
Opening gross carrying amount 3,146 51
Reclassification from Property, plant and equipment - 3,095
Closing balance 3,146 3,146
Opening balance - -
Depreciation charge - -
Closing balance - -
Net carrying amount 3,146 3,146
Fair value
31 March 2021 31 March 2020
Investment properties 8,894 8,894
a) Disclosures relating to fair valuation of investment property

Fair value of the above investment property as at 31 March 2021 is ₹ 8,894 Lakhs (31 March 2020: ₹ 8,894 Lakhs) based
on valuation report obtained by management from an independent valuer.
Fair value Hierarchy
The fair values of investment properties have been determined by an external, independent property valuer, having
appropriate recognised professional qualifications and relevant experience in the category of the land parcel being valued.
The fair value measurement for the investment property has been categorised as a Level 3 fair value based on the inputs
to the valuation techniques used. The investment property constitute of land parcels at Panchagini, Khamgaon, Solapur
and vacant land at yerwada.
Description of valuation technique used
The Company obtains independent valuations of its investment property after every three years as per requirement of
Ind AS 40. The fair value of the investment property has been derived using the Direct Comparison Method. The direct
comparison approach involves a comparison of the investment property to similar properties that have actually been
sold in arms-length transaction or are offered for sale in the same region. This approach demonstrates what buyers have
historically been willing to pay (and sellers willing to accept) for similar properties in an open and competitive market,

and is particularly useful in estimating the value of the land and properties that are typically traded on a unit basis. This
approach leads to a reasonable estimation of the prevailing price. Given that the comparable instances are located in close
proximity to the investment property; these instances have been assessed for their locational comparative advantages
and disadvantages while arriving at the indicative price assessment for investment property.
b) The Company has neither earned any rental income nor incurred any direct operating expense on the above properties.
Note 6: Leases
A) Right of use assets
Leasehold Leasehold land Furniture and Total

Building fixtures

Balance as at 1 April 2019 2,266 - - 2,266
Add: Reclassification on account of adoption of Ind AS 116 - 13,342 - 13,342
Add: Additions - - 302 302
Reclassified on account of adoption of Ind AS 116 115 - - 115
Less: Disposals (245) (5,801) - (6,046)
Gross carrying amount as at 31 March 2020 2,136 7,541 302 9,979
Accumulated amortization
Balance as at 1 April 2019 - - - -
Amortisation for the year (493) (134) (32) (659)
Accumulated depreciation as at 31 March 2020 (493) (134) (32) (659)
Net carrying amount as at 31 March 2020 1,643 7,407 270 9,320
Balance as at 1 April 2020 2,136 7,541 302 9,979
Add: Additions - 442 - 442
Less: Disposals - - - -
Gross carrying amount as at 31 March 2021 2,136 7,983 302 10,421
Balance as at 1 April 2020 (493) (134) (32) (659)
Amortisation for the year (515) (88) (60) (663)
Accumulated depreciation as at 31 March 2021 (1,008) (222) (92) (1,322)
Net carrying amount as at 31 March 2021 1,128 7,761 210 9,099
B) Lease liabilities
31 March 2021 31 March 2020
Current 429 633
Non Current 1,048 1,291
Total 1,477 1,924
C) Interest expenses on lease liabilities
31 March 2021 31 March 2020
Interest on lease liabilities 187 223
D) Expenses on short term leases / low value assets
31 March 2021 31 March 2020
Short term leases 23 1,403

E) Amounts recognised in the statement of cash flow
31 March 2021 31 March 2020
Total cash outflow for leases 447 611
F) Maturity analysis – contractual undiscounted cash flows
31 March 2021 31 March 2020
Less than one year 561 633
One to five years 1,232 1,793
More than five years - -
Total undiscounted lease liabilities at 31 March 1,793 2,426
Other Information:
The company has leases mainly for Corporate building and some furniture items. These lease contracts provide for payment to
increase each year by inflation.
Leases not yet commenced to which the lessee is committed
At 31 March 2021 the Company had committed to leases which had not yet commenced. The total future cash outflows for
leases that had not yet commenced is amounting to ₹ 85 lakhs.
The difference between the future minimum lease rental commitments towards non-cancellable operating leases reported as
at 31 March 2019 compared to the lease liability as accounted as at 1 April 2019 is primarily due to inclusion of present value
of the lease payments for the cancellable term of the leases, reduction due to discounting of the lease liabilities as per the
requirement of Ind AS 116 and exclusion of the commitments for the leases to which the Company has chosen to apply the
practical expedient as per the standard.
The company does not face significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to
meet the obligations related to lease liabilities as and when they fall due.There are no variable lease payments and guaranteed
residual value in existing lease agreements.
The incremental borrowing rate of 9.65% p.a. has been applied to lease liabilities recognised in the Balance Sheet.
For transition, the Company has elected not to apply the requirements of Ind AS 116 to leases which are expiring within 12
months from the date of transition by class of asset and leases for which the underlying asset is of low value on a lease-by-
lease basis. The Company has also used the practical expedient provided by the standard when applying Ind AS 116 to leases
previously classified as operating leases under Ind AS 17 and therefore, has not reassessed whether a contract, is or contains a
lease, at the date of initial application, relied on its assessment of whether leases are onerous, applying Ind AS 37 immediately
before the date of initial application as an alternative to performing an impairment review, excluded initial direct costs from
measuring the right of use asset at the date of initial application and used hindsight when determining the lease term if the
contract contains options to extend or terminate the lease. The Company has used a single discount rate to a portfolio of leases
with similar characteristics.
Note 7: Intangible Assets

Computer License Fees Total

Software
Gross carrying amount as on 1 April 2019 250 338 588

Additions during the year 583 216 799
Gross carrying amount as on 1 April 2020 833 554 1,387
Additions during the year 92 79 171
Gross carrying amount as on 31 March 2021 925 633 1,558

Computer License Fees Total
Software
Accumulated Amortisation -
Accumulated amortisation as at 1 April 2019 116 250 366
Amortisation charge for the year 102 88 190
Accumulated amortisation as at 1 April 2020 218 338 556
Amortisation charge for the year 134 102 236
Closing accumulated amortisation as at 31 March 2021 352 440 792
Net Block as at 31 March 2020 615 216 831
Net Block as at 31 March 2021 573 193 766
Refer Note 2.3(d) for policy on amortisation
FINANCIAL ASSETS
Note 8: Investment In Subsidiaries & Associates - Non - Current
31 March 2021 31 March 2020
Investments carried at cost

Investments in equity shares (unquoted) of subsidiaries (fully paid up)
1,70,49,987 (31 March 2020: 1,70,49,987) equity shares of Smartchem Technology Limited 82,463 81,563
(wholly owned subsidiary) of ₹ 10 each
1,60,000 (31 March 2020: 1,60,000) equity shares of Deepak Nitrochem Pty. Limited (wholly 20 20
owned subsidiary) of AUD 1 each
9,998 (31 March 2020: 9,998) equity shares of Deepak Mining Services Private Limited (wholly 1 1
owned subsidiary) of ₹ 10 each
49,993 (31 March 2020:49,993) equity shares of SCM Fertichem Limited (wholly owned 4 4
subsidiary) of ₹ 10 each
40,99,994 (31 March 2020: 74,994) equity shares of Ishanya Brand Services Limited of ₹ 10 each 411 8
Investments in equity shares (unquoted) of Associates (fully paid up)
49,994 (31 March 2020: 49,994) equity shares of Ishanya Realty Corporation Limited of ₹10 each 5 5
Total (equity instruments) 82,904 81,601
Aggregate amount of unquoted investments 82,904 81,601
Note 9: Investments
31 March 2021 31 March 2020
Investments in equity shares (unquoted) (fully paid up) (fair value through other comprehensive
income)
88,448 (31 March 2020: 88,448) equity shares of Deepak International Limited of $ 1 each - 69
Total - 69
Refer Note 38(i) for Fair value measurements of financial assets and liabilities and refer Note 38(ii) for Fair value hierarchy disclosures for
financial assets and liabilities.

Note 10: Investments in Associate (held-for-sale)
31 March 2021 31 March 2020
Investments in equity shares (unquoted) of Associates (fully paid up) carried at lower of cost or
net realisable value
NIL (31 March 2020: 12,70,341) equity shares of Desai Fruit and Vegetables Private Limited of - 589
₹ 10 each
Total - 589
The Company had signed Share purchase agreement with Contract Farming India A.G. (CFI) on 6 April 2019 to sell shares at
₹ 74 per share for a total consideration of ₹ 3,760 Lakhs. During the year 2020-21, the Company has transferred 12,70,341 shares
to Contract Farming India A.G. (CFI) at consideration of ₹ 74 per share for total consideration of ₹ 940 Lakhs (31 March 2020:
38,11,022 shares of ₹ 74 per share for total consideration of ₹ 2,820 Lakhs).
Note 11: Current Investments
31 March 2021 31 March 2020
Quoted
Investment in mutual funds (measured at fair value through profit and loss) -
Adiya Birla Sun Life Overnight Fund Growth - Regular Plan (1,72,883 units) 1,918 -
Axis Overnight Fund - Regular Growth - ONDG (1,58,038 units) 1,717 -
HDFC Overnight Fund - Regular Plan - Growth (59,766 units) 1,817 -
ICICI Prudential Overnight Fund Growth (13,70,703 units) 1,518 -
Kotak Overnight Fund Growth (Regular plan) (1,29,253 units) 1,417 -
SBI Overnight Fund Regular Growth (63,781 units) 2,117 -
Total 10,504 -
Aggregate carrying value of quoted investments 10,504
Aggregate market value of quoted investments 10,504 -
Note 12: Trade Receivables
31 March 2021 31 March 2020
Unsecured, considered good

Others 25,205 41,245
Unsecured, credit Impaired 666 632
Less: Impairment loss allowance (666) (632)
Total 25,205 41,245
Movement in allowance for expected credit loss:
31 March 2021 31 March 2020
Balance at beginning of the year 632 314

Add: Allowance for expected credit loss 34 318
Less: Reversed / utilized during the year - -
Balance as at the end of the year 666 632

Trade receivables have been offered as security against the working capital facilities provided by the banks (refer note 23)

Refer Note 39(i) on credit risk of trade receivables, which explains how the Company manages and measures credit quality of trade receivables
that are neither past due nor impaired.
Refer Note 41(b) for amount receivable from related parties which includes debts due by companies in which any director is a director or member.
The Company’s exposure to customers is diversified and no single customer, other than a subsidiary, contributes more than 10% of the
outstanding receivables as at March 31, 2021 and March 31, 2020.
Note 13: Loans
31 March 2021 31 March 2020

Current Non Current Current Non Current
Loans to subsidiaries (Refer Note 44) 5,075 43,551 1,336 -
Loans to employees 15 - 32 -
Security deposits 856 2,186 - 2,776
Other loans 4 - 21 -
Unsecured, considered doubtful
Less: Provision for doubtful loans (192) - (138) -
Total 5,950 45,737 1,389 2,776
Refer Note 41(b) for Security deposits receivable from related parties.
Note 14: Cash & Cash Equivalents
31 March 2021 31 March 2020
Balances with banks

- in current accounts 2,273 6,751
- in EEFC accounts - 12
Deposits with original maturity upto three months 301 2,234
Cash on hand 6 8
Total 2,580 9,005
Note 15: Other Bank Balances
31 March 2021 31 March 2020
Earmarked balances with banks

Unclaimed dividend 731 767
Deposits with remaining maturity upto 12 months from the reporting date 6,941 8,850
Total 7,672 9,617

Note 16: Other Financial Assets
31 March 2021 31 March 2020

Derivatives
(i) Foreign-exchange forward contracts - - 29 -
(ii) Foreign-exchange option contracts 12 - 341 -
(iii) Commodity hedge contracts 723 - - -
(iv) Embedded Derivative 102 - - -
Interest receivable
(i) From bank 25 - 339 -
(ii) From others 2,509 - 133 -
Amount paid under protest for claims from - 1,507 - 1,507
supplier*
Others 50 - 50 -
Total 3,421 1,507 892 1,507
Refer Note 41(b) for Interest receivable on Loan to related parties
*Included in supplier claim (refer note 42)
Note 17: Other Non-Current Assets
31 March 2021 31 March 2020
Capital advances 1,203 163

Balance with government authorities 7,212 7,013
Prepaid Expenses 165 14
Total 8,580 7,190
Note 18: Inventories
31 March 2021 31 March 2020
Raw materials ((includes ₹ 235 Lakhs in transit)(31 March 2020 ₹ 355 Lakhs) 2,087 2,943
Finished goods 1,397 1,020
Stock-in-trade ((includes ₹ 1,997 Lakhs in transit)(31 March 2020 ₹ Nil) 4,429 2,670
Stores and spares 4,895 3,340
Packing material 46 25
Total 12,854 9,998
(i) The cost of inventories recognised as an expense includes ₹ 382 Lakhs (31 March 2020: ₹ 6 Lakhs) in respect of write-down of inventories
to net realisable value.
(ii) Inventories have been offered as security against the working capital facilities provided by the banks. (refer note 23)

Note 19: Other Current Assets
31 March 2021 31 March 2020
Advances for supply of goods and services 711 521

Balances with government authorities 1,281 4,039
Prepaid expenses 409 1,704
Other receivables 297 26
Total 2,698 6,290
Note 20: Share Capital
31 March 2021 31 March 2020
Authorised
13,50,50,000 equity shares of ₹ 10/- each. 13,505 13,505
(31 March 2020: 13,50,50,000 equity shares of ₹ 10/- each)
13,505 13,505
Issued, subscribed and fully paid-up share capital
Fully paid-up share capital as at year end 10,268 8,928
(i) Reconciliation of the number of shares and amount outstanding at the beginning and at the year end
31 March 2021 31 March 2020

No. of Shares Amount No .of Shares Amount
Equity Shares
Balance as at the beginning and at the end of 89,284,425 8,928 88,204,943 8,820
the year
Add: Issued during the year - - 1,079,482 108
Add:Right issue of shares during the year 13,392,663 1,340
102,677,088 10,268 89,284,425 8,928
Terms and rights attached to equity shares
The Company has only one class of equity shares having par value of ₹ 10 per share. Holder of each equity share is entitled to
one vote per share.
The Company declares and pays dividend in Indian Rupees except in the case of overseas shareholders where dividend is paid
in respective foreign currencies considering foreign exchange rate applied at the date of remittance. The dividend proposed by
the Board of Directors is subject to the approval of shareholders in the Annual General Meeting.
In the event of liquidation of the Company the holders of equity share will be entitled to receive remaining assets of the Company,
after distribution of all preferential amounts in proportion to their shareholding. The distribution will be in proportion to the
numbers of equity shares held by the shareholder.
(ii) Details of shareholders holding more than 5% shares in the company
31 March 2021 31 March 2020

No. of Shares % Holding No. of Shares % Holding
Nova Synthetic Limited 43,592,875 42.46% 42,706,848 47.83%
Robust Marketing Services Private Limited 10,759,301 10.48% - -

Note 21: Other Equity (Refer Statement of Changes in Equity for Reserves movement)
Nature and purpose of other equity

(a) Securities premium: Amount received in excess of face value of the equity shares is recognized in Securities Premium. The
reserve is eligible for utilisation in accordance with the provisions of the Companies Act, 2013.
(b) Capital redemption reserve: The Company had issued redeemable preference shares and as per the provisions of the Act
where preference shares are redeemed out of divisible profits, an amount equal to the nominal value of shares so redeemed
must be transferred to capital redemption reserve, out of divisible profits.
(c) Share Warrants : During the year 2018-19, the Company has issued 64,76,893 convertible warrants at an issue price of
₹ 308.79 per warrant each to a promoter group company. These warrants are convertible into equal number of fully paid
equity shares of ₹ 10 each upon exercise of the option of conversion of warrants held by the holders within a period of
18 months from the date of allotment of warrants. Out of 64,76,893 warrants issued, 10,79,482 are converted in equity
shares during the preious year 2019-20. Since, the Company did not receive the balance subscription amount of ₹ 12,500
lakhs from the Warrant holder before the extended due date, the balance lying in the Company paid as Upfront Warrant
Subscription Amount towards 25% of the issue price of the warrants and still not converted by the warrant holder into equity
amounting to ₹ 4,166 lakhs, was forfeited and transferred to Capital reserve in current year in terms of Regulation 169 (3)
of the aforesaid SEBI Regulations.
(d) Equity portion of non-current borrowings (FCCB): During the year, the Company has received tranche 2 subscription
amount $15,000,000 (31 March 2020: Trache 1 $15,000,000) towards Foreign Currency Convertible Bonds (“FCCBs”)
issued by the Company to International Finance Corporations (“IFC”). The same have been bifurcated into equity and
liability components as per the principles of the Indian Accounting Standards.
(e) General reserve: This represents appropriation of profits by the Company to General Reserve and is available for distribution
of dividend.
(f) Retained earnings: Retained earnings are the profits that the Company has earned till date, less any transfers to general
reserve, dividends or other distributions paid to shareholders.
FINANCIAL LIABILITIES
Note 22: Non-Current Borrowings
Terms of repayment Coupon/ Interest 31 March 2021 31 March 2020

& Maturity date rate
Secured - at amortised cost
Term loans from banks
(i) Bank of Baroda Repayable in quarterly 8.15% to 9.40% per 19,302 19,350
instalments starting annum
from June 2021 and end
date of 31 March 2028
(ii) Export Import Bank of India Repayable in quarterly 8.85% to 9.35% per 22,179 22,186
(iii) Bank of Baroda Repayable in quarterly 9.05% to 9.85% per 16,722 9,904
from October 2020 and
end date of October
2023

Terms of repayment Coupon/ Interest 31 March 2021 31 March 2020
& Maturity date rate
Unsecured
(iv) F
oreign currency convertible bonds Simple Interest : 18,140 9,312
issued to International Finance Upto March 12,
Corporation (IFC), USA (refer note (c) 2021 :
below) 5% simple interest
per annum
March 13, 2021
Onwards : 4.5%
simple interest per
anum and
Compound Interest :
Upto March 12, 2021
: 1.75% compound
interest per annum
From March 13,
2021 onwards :
2.25% compound
interest per annum
Total non-current borrowings 76,343 60,752

Less: Current maturities of long-term debt 12,308 3,076
(included in note 24)
Total 64,035 57,676
a) The term loan (i) and (ii) has been availed for financing of Nitric Acid project at Dahej. The term loan is secured by pari
passu charge on the land & building and hypothecation of all the present & future immovable fixed assets and intangible
assets pertaining to Nitric Acid project at Dahej.
b) The term loan (iii) has been availed to shore up the net working capital of the Company. The term loan is secured by
exclusive charge on the immovable property situated at Yerwada Pune belonging to joint operation, M/s Yerrowda
Investments Limited (YIL). Corporate Guarantee of M/s Yerrowda Investments Limited (YIL) to the extent of the value of
Immovable property is offered to Bank of Baroda.
c) The FCCB’s will be pari-passu with the senior unsecured creditors of the Company. The Company has received Tranche 2
subscription amount $15,000,000 during current financial year (31 March 2020: Trache 1 $15,000,000). Foreign Currency
Convertible Bonds (“FCCBs”) issued by the Company to International Finance Corporations (“IFC”) have been bifurcated
into equity and liability components as per the principles of the Indian Accounting Standards. The financial liability
component has been measured at amortized cost in the financial statements as per Ind AS 109, Financial Instruments.
The FCCBs are convertible into equity shares of the Company at a predetermined price of ₹ 195 per share (₹ 250 per share
till July 16, 2020) at the option of IFC and carry several rights and obligations including adherence to specific financial
covenants. The shares issued upon conversion of the FCCB’s will rank pari-passu in all respects with the existing shares
of the Company. In the event of non-conversion till the end of the stipulated period, the amount raised through the issue
of FCCBs is repayable in full to IFC. The FCCBs carry a coupon rate of 4.5% simple interest p.a.(5% p.a. upto March 12,
2021), payable semi annually and 2.25% compound interest p.a.(1.75% p.a. upto March 12, 2021), payable on redemption.

Note 23: Current Borrowings
31 March 2021 31 March 2020
Loans repayable on demand

From banks
Secured
- Short term loan - 17,122
- Cash credit facilities 151 -
Unsecured
From related parties - 265
Total 151 17,387
Reconciliation of Borrowings as required by Ind As 7 ‘’Statement of Cash Flows’’
31 March 2021 31 March 2020
Non-current borrowings 76,343 60,752

Current borrowings 151 17,387
Interest accrued (refer note 24) 615 269
77,109 78,408
Cash and Non-cash adjustments
Equity portion of non-current borrowings (1,504) (1,286)
Deferred tax on equity portion of non-current borrowings (505) (432)
Unrealized forex Loss (161) 481
Proceeds from borrowings 21,270 97,308
Repayment of borrowings (20,744) (85,333)
Interest expense 8,660 8,525
Interest paid (8,314) (8,482)
Movement of borrowings (net) (1,298) 10,781
Short term loan from bank is repayable on demand, carries average interest rate of Nil (31 March 2020 - 9.35%) and is secured
by a first pari passu charge by way of hypothecation of stock of raw materials, finished goods and consumable stores and book
debts.
Cash credit is repayable on demand and carries variable rate of interest. Average interest rate for the year is 8.50% (31 March
2020 - NIL). Cash credit facilities sanctioned by banks including working capital demand loans are secured by a first pari passu
charge by way of hypothecation of stocks of raw materials, finished goods, consumable stores and book debts.
Unsecured loan availed from related party Deepak Agro Solutions Ltd and is repayable on demand.

Note 24: Other Financial Liabilities
31 March 2021 31 March 2020
Non-current
Embedded Derivative Liability 17 -
Financial Guarantee Liability 789 307
Total 806 307
Current
Current maturities of non-current borrowings 12,308 3,076
Interest accrued 615 269
Security deposits 581 748
Capital creditors 470 1,883
Commission payable (refer Note 41(b)) 836 -
Financial Guarantee Liability 368 237
Salary payables 3,012 2,045
Others - 646
Total 18,190 8,904
Note 25: Provisions
31 March 2021 31 March 2020

Current Non - Current Current Non - Current
Provision for employee benefits
Gratuity 439 1,451 300 925
Compensated absences 365 826 561 1,079
Defined pension benefits 154 168 154 14
Total (A) 958 2,445 1,015 2,018
Provisions for tax contingencies (refer note 5,744 - 5,656 -
below)
Provision for site restoration (refer note below) - 472 - 427
Total (B) 5,744 472 5,656 427
Total (A+B) 6,702 2,917 6,671 2,445
Movement in Provisions for tax contingencies
Tax contingencies Site restoration Compensated absences

As at 1 April 2019 5,656 454 1,393
Additional provisions recognised - 41 247
Excess amounts reversed/utilised - (68) -
As at 1 April 2020 5,656 427 1,640
Additional provisions recognised 88 45 -
Excess amounts reversed/utilised - - (449)
As at 31 March 2021 5,744 472 1,191
The site restoration expense and decommissioning charges outflow is expected to be within a period of one to five years from date of balance
sheet.

(A) Defined Contribution Plans (refer Note 34)
Particulars 31 March 2021 31 March 2020
Employer’s contribution to provident fund 224 185
Employer’s contribution to employee’s pension scheme 66 54
Employer’s contribution to superannuation fund 250 193
Employer’s contribution to employee state insurance 1 1
Total 541 433
(B) Defined Benefit Plans

i. Gratuity
In accordance with Ind AS 19 “Employee Benefits”, an actuarial valuation has been carried out in respect of gratuity.
The discount rate assumed is 6.60% p.a. (31 March 2020: 6.40% p.a) which is determined by reference to market yield
at the Balance Sheet date on Government bonds. The retirement age has been considered at 60 years (31 March 2020:
60 years), withdrawal rate is 8% p.a. (31 March 2020: 14% p.a.) and mortality table is as per IALM (2012-14) (31 March
2020: IALM (2012-14)).
The estimates of future salary increases, considered in actuarial valuation is 8% p.a. (31 March 2020: 8% p.a), taking
into account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment
market.
The plans assets are maintained with Life Insurance Corporation of India in respect of gratuity scheme of the Company.
The details of investments maintained by Life Insurance Corporation are not available with the Company, hence not
disclosed. The expected rate of return on plan assets is 6.40% p.a. (31 March 2020: 7.50% p.a).
Reconciliation of opening and closing balances of the present value of the defined benefit obligation:
Present value of obligation at the beginning of the year 5,191 4,344
Current service cost 459 308
Interest cost 316 311
Actuarial loss 410 605
Benefits paid (486) (377)
Present value of obligation at the end of the year 5,890 5,191
Reconciliation of the present value of defined benefit obligation and the fair value of the plan assets:
Fair value of plan assets at the end of the year 4,001 3,966
Net (asset)/liabilities recognised in the Balance Sheet 1,890 1,225

Fair value of Plan assets :
Plan assets at the beginning of the year 3,966 3,939
Expected return on plan assets 246 284
Contribution by employer 459 372

Actual benefits paid (702) (685)
Actuarial gain/(loss) 32 56
Plan assets at the end of the year 4,001 3,966
Expense recognised in the Statement of Profit and Loss under employee benefits expense:
Interest cost 71 28
Expense recognised in the Statement of Profit and Loss 530 336
Amount recognised in the other comprehensive income:
Remeasurements Cost / (Credit) 410 605
Actuarial (gain)/loss on plan assets (32) (56)
Amount recognised in the Other Comprehensive Income 378 549
Remeasurements for the year (Actuarial (Gain) / Loss)
Experience Loss on plan liabilities 374 115
Demographic Loss on plan liabilities 87 38
Financial (Gain)/ Loss on plan liabilities (51) 451

Experience (Gain) / Loss on plan assets (74) (55)
Financial (Gain) / Loss on plan assets 42 -
Categories of the fair value of total plan assets:
Insured managed funds 4,001 3,966
(%) of total plan assets 100% 100%

Sensitivity analysis :
31 March 2021 31 March 2020

Assumptions Discount rate Discount rate
Sensitivity level 1.00% increase 1.00% decrease 1.00% increase 1.00% decrease
Impact on defined benefit (decrease)/increase (242) 268 (185) 200
31 March 2021 31 March 2020

Assumptions Future salary increase Future salary increase
Impact on defined benefit (decrease)/increase 217 (200) 149 (140)
The sensitivity analysis above have been determined based on reasonably possible changes of the respective assumptions
occurring at the end of the year and may not be representative of the actual change. It is based on a change in the key assumption
while holding all other assumptions constant.
Maturity profile of defined benefit obligation (Gratuity) is as follows:
Within the next 12 months (next annual reporting period) 1,742 1,822
Later than 1 year and not later than 5 years 2,816 2,830
Weighted average duration of the plan (based on discounted cash flows using mortality, withdrawal rate and interest rate) is
8.22 years (31 March 2020: 6.17 years)
Risk Exposure and Asset Liability Matching
Provision of a defined benefit scheme poses certain risks, some of which are detailed hereunder, as companies take on
uncertain long term obligations to make future benefit payments.
1. Liability Risks
a. Asset-Liability Mismatch Risk-
Risk which arises if there is a mismatch in the duration of the assets relative to the liabilities. By matching duration with
the defined benefit liabilities, the company is successfully able to neutralize valuation swings caused by interest rate
movements. Hence companies are encouraged to adopt asset-liability management.
b. Discount Rate Risk
Variations in the discount rate used to compute the present value of the liabilities may seem small, but in practise can
have a significant impact on the defined benefit liabilities.
c. Future Salary Escalation and Inflation Risk
Since price inflation and salary growth are linked economically, they are combined for disclosure purposes. Rising
salaries will often result in higher future defined benefit payments resulting in a higher present value of liabilities
especially unexpected salary increases provided at management’s discretion may lead to uncertainities in estimating
this increasing risk.

2. Asset Risks
Plan assets are maintained in a trust fund partly managed by a public sector insurer viz; LIC of India and partly managed by
a private sector insurer viz; India First Life Insurance.
The company has opted for a traditional fund wherein all assets are invested primarily in risk averse markets. The company
has no control over the management of funds but this option provides a high level of safety for the total corpus. A single
account is maintained for both the investment and claim settlement and hence 100% liquidity is ensured. Also interest rate
and inflation risk are taken care of.
ii. Defined pension benefits
The Company has a Post Retirement Benefit plan, which is a defined benefit retirement plan, according to which
executives superannuating from the service after ten years of service are eligible for certain benefits like medical, fuel
expenses, telephone reimbursement, club membership etc. for specified number of yea ₹ The liability is provided for
on the basis of an independent acturial valuation.
In accordance with Ind AS 19 “Employee Benefits”, an actuarial valuation has been carried out in respect of post
retirement benefits. The discount rate assumed is 6.60% p.a. (31 March 2020: 6.40% p.a) which is determined by
reference to market yield at the Balance Sheet date on Government bonds. The retirement age has been considered at
60 years (31 March 2020: 60 years), withdrawal rate is 8% p.a. (31 March 2020: 14% p.a.) and mortality table is as per
IALM (2012-14) (31 March 2020: IALM (2012-14)).
31 March 2021 31 March 2020
Present value of obligation at the beginning of the year 168 126
Past service cost - -
Interest cost 10 8
Present value of obligation at the end of the year 322 168
31 March 2021 31 March 2020
Interest cost 10 8
31 March 2021 31 March 2020
Actuarial (gain)/loss on plan assets 136 37

31 March 2021 31 March 2020

Impact on defined benefit (74) 102 (35) 46
Note 26: Trade Payables
31 March 2021 31 March 2020
Trade payables
(a) total outstanding dues of micro and small enterprises 920 268
(b) total outstanding dues of creditors other than micro and small enterprises#* 24,309 31,865
Total 25,229 32,133
# Includes payable to related party ₹ 540 lakhs (31 March 2020: ₹ 156 lakhs)
* Trade payable as stated above includes trade payables related to materials for ₹ 19,909 lakhs (31 March 2020: ₹ 22,056 lakhs)
31 March 2021 31 March 2020
The principal amount and the interest due thereon remaining unpaid to any supplier as at the end
of each accounting year
- Principal amount outstanding (whether due or not) to micro and small enterprises 920 268
- Interest due thereon 9 7
The amount of interest paid by the Company in terms of section 16 of the MSMED Act, 2006 along - -
with the amounts of the payment made to the supplier beyond the appointed day during each
accounting year
The amount of payment made to the supplier beyond the appointed day during the year 3,627 711
Amount of interest due and payable on delayed payments 38 12
Amount of interest accrued and remaining unpaid as at year end 78 31
The amount of further interest remaining due and payable even in the succeeding year - -
To comply with the requirement of The Micro, Small And Medium Enterprises Development Act, 2006 (‘MSMED Act’), the
Company requested its suppliers to confirm whether they are Micro, Small or Medium enterprise as defined in the said MSMED
Act. Based on the communications received from such suppliers confirming their coverage as such enterprise, the Company has
recognised them for the necessary treatment as provided under the MSMED Act, from the date of receipt of such confirmations.
Note 27: Deferred Tax Liabilities (Net)

The balance comprises temporary differences attributable to:
31 March 2021 31 March 2020
(a) Deferred tax assets (1,813) (2,546)
(b) Deferred tax liabilities 4,856 4,009
Net deferred tax liabilities 3,043 1,463

Movements in deferred tax liabilities:
Movements during the year ended 31 March 2021:
1 April 2020 Charge/ Credit/ Charge/(credit) 31 March

(credit) in the (Charge) in in the Other 2021
statement of equity Comprehensive
Profit and Loss Income
Property, plant and equipment, investment property 3,518 356 - - 3,874
and intangibles assets
Business loss (1,176) 1,176 - - -
Financial assets at fair value through profit or loss (260) - - (260)
Expenses allowable in the year of payment (section (1,110) 23 - (129) (1,216)
43B of Income Tax Act 1961)
MAT credit - - - - -
Foreign Currency Convertible Bonds 459 (88) 505 876
Impairment Provision - (255) - - (255)
Financial assets at fair value through OCI - - - 107 107
Others 32 (115) - - (83)
Net deferred tax liabilities 1,463 1,097 505 (22) 3,043
1 April 2019 Charge/ Credit/ Charge/(credit) 31 March
(credit) in the (Charge) in in the Other 2020
Property, plant and equipment, investment property 3,776 (258) - - 3,518

Business losses comprising Unabsorbed tax - (1,176) - - (1,176)
depreciation
Financial assets at fair value through profit or loss (157) 44 - (147) (260)
Expenses allowable in the year of payment (section (1,222) 112 - - (1,110)
43B of Income Tax Act 1961)
MAT credit* (1,718) 1,718 - - -
Foreign Currency Convertible Bonds - 26 433 - 459
Others (261) 293 - - 32
Deferred tax liabilities (net) 418 759 433 (147) 1,463
* Includes MAT credit of ₹ 1,637 lakhs which was utilized in earlier period.
Note 28: Other Current Liabilities

31 March 2021 31 March 2020
Advances from customers 392 717
Unclaimed dividend (#) 731 767
Statutory dues payable 1,282 1,201
Other payables 118 9
Total 2,523 2,694

(#) ₹ 100 Lakhs (31 March 2020 ₹. 90 Lakhs) transferred to the Investor Education and Protection Fund during the year. There has been no delay
in transferring amounts required to be transferred to the Investor Education and Protection Fund by the Company except for ₹ 0.37 Lakhs (31
March 2020 ₹ 0.37 Lakhs), wherein legal disputes with regards to ownership have remained unresolved.

Note 29: Revenue from Opertations
31 March 2021 31 March 2020
Sale of products
Traded goods 58,906 70,666

Power generated from windmills 253 745
Revenue from realty business 881 1,498
Other operating revenues 165 54
Total 181,131 170,775
Contracts with customer
31 March 2021 31 March 2020
Revenue recognised from contracts with customers 181,131 170,775
Disaggregation of revenue
Based on type of goods

- Sale of industrial chemicals 129,575 97,812
- Sale of traded products
(i) Industrial chemicals 50,066 70,001
(ii) Value added real estate (VARE) - Sale of furniture 191 665
- Revenue from power generated from windmills 253 745
- Revenue from realty operation 881 1,498
- Other operating revenues 165 54

Impairment losses recognised on receivables or contract assets arising from an entity’s 666 632
contracts with customers
Details of contract balances:

31 March 2021 31 March 2020
Opening balance of receivables 41,245 43,734
Closing balance of receivables 25,205 41,245
Significant changes in the contract liability balances during the year ended are as follows:

31 March 2021 31 March 2020
Contract liabilities at the beginning of the year 717 612
Revenue recognised that was included in the contract liability balance at the beginning of the year 717 612
Increase due to cash received, excluding amounts recognised as revenue during the year 392 717
Contract liabilities at the end of the year 392 717
There is no significant change in the contract asset and contract liabilities.

Performance obligations
The Company satisfies its performance obligations pertaining to the sale of products at a point in time when the control
of goods is actually transferred to the customer No significant judgment is involved in evaluating when a customer obtains
control of promised goods. The contract is a fixed price contract subject to refund due to shortages and discounts during
the mode of transportation and do not contain any financing component. The payment is generally due within 30-90 days.
The Company is obliged to give refunds due to shortages and discounts. There are no other significant obligations attached in
the contract with customer.
Transaction price
There is no remaining performance obligation for any contract for which revenue has been recognised till period end. Further,
the Company has not applied the practical expedient as specified in para 121 of Ind AS 115 as the Company do not have any
performance obligations that have an original expected duration of one year or less or any revenue stream in which consideration
from a customer corresponds directly with the value to the customer of the entity’s performance completed to date.
Determining the timing of satisfaction of performance obligations
There is no significant judgement involved in ascertaining the timing of satisfaction of performance obligations, in evaluating
when a customer obtains control of promised goods, transaction price and allocation of it to the performance obligations.
Determining the transaction price and the amounts allocated to performance obligations
The transaction price ascertained for the only performance obligation of the Company (i.e. Sale of goods) is agreed in the
contract with the customer. There is no variable consideration involved in the transaction price except for refund due to
shortages and discounts which is adjusted with revenue.
Reconciliation of contract price with revenue recognised in statement of profit and loss:

31 March 2021 31 March 2020
Contract price 183,372 178,481
Less: Amount recognised as Discounts / shortages 2,241 7,706
Revenue recognised in the statement of profit and loss 181,131 170,775
Cost to obtain a contract or fulfil a contract

There is no cost incurred for obtaining or fulfilling a contract and there is no closing assets recognised from the costs incurred
to obtain or fulfil a contract with a customer.
Note 30: Other Income

31 March 2021 31 March 2020
Interest income from financial assets measured at amortized cost 2,941 561
Fair value gain on financial assets mandatorily measured at fair value through profit or loss 8 -
Net gain on sale of investments# 519 1,112
Gain on sale of land and property, plant and equipment* - 3,566
Unwinding of discount on security deposits 113 269
Foreign exchange fluctuation gain (net) 314 -
Corporate Guarantee income 288 294
Other non-operating income 407 970
Total 4,590 6,772

# Includes profit on sale of investment in an associate amounting to ₹ 351 lakhs (31 March 2020: ₹ 1,053 lakhs).
* Includes profit on sale of plot of industrial leasehold land at Dahej, Gujarat in the previous year as part of the strategy to divest non-core assets
amounting to ₹ 3,544 Lakhs

Note 31: Cost of Materials Consumed
31 March 2021 31 March 2020
Raw materials as at the beginning of the year 2,943 2,128
Add: Purchases during the year 66,200 74,818
Less: Raw material as at the end of the year 2,087 2,943
Total 67,056 74,003
Note 32: Purchase of Stock-in-Trade
31 March 2021 31 March 2020
Purchases of stock-in- trade 52,907 62,071
Total 52,907 62,071
Note 33: Changes in Inventories of Stock-in-Trade and Finished Goods
31 March 2021 31 March 2020
Opening balance
Stock-in-trade 2,670 5,867
Total opening balance 3,690 7,427
Closing balance
Total closing balance 5,826 3,690
Total (2,136) 3,737
Note 34: Employee Benefit Expenses
31 March 2021 31 March 2020
Salaries, wages and bonus * # 7,362 5,732

Contribution to provident fund & other funds 541 433
Gratuity (refer note 25) 530 336
Post-employment pension benefits (refer note 25) 39 40
Staff welfare expenses 333 303
Total 8,805 6,844
(*) Net of recharges of ₹ 7,844 Lakhs (31 March 2020 : ₹ 6,401 Lakhs) to subsidiary company - Smartchem Technologies Limited.
(#) Salary of NIL (31 March 2020 : ₹ 163 Lakhs) capitalised in property, plant and equipment during the year.
Note 35: Finance Costs
31 March 2021 31 March 2020
Interest cost on financial liabilities measured at amortized cost 7,655 7,452

Less: Interest capitalised - (112)
Finance charges on finance leases 187 223

31 March 2021 31 March 2020
Increases in the decommissioning liabilities 45 (22)
Interest others - 64
Other borrowing costs 806 879
Exchange differences regarded as an adjustment to borrowing costs (33) 41
Total 8,660 8,525
Note 36: Depreciation And Amortisation Expense
31 March 2021 31 March 2020
Depreciation on property, plant and equipment* 6,399 6,379
Amortisation of right of use assets 663 659
Amortisation on intangible assets 236 190
Total 7,298 7,228
(*) Net of recharges of ₹1,181 lakhs (31 March 2020 : ₹1,473 Lakhs) to a subsidiary company - Smartchem Technologies Limited.
Note 37: Other Expenses (Net)
31 March 2021 31 March 2020
Consumption of stores and spares 3,372 2,407
Power, fuel and water* 1,908 886
Repairs to :
- Building 175 165
- Plant and machinery 2,146 1,749
- Others 672 535
Rent 98 270
Insurance 703 522
Rates, taxes and duties # 1,070 204
Travelling and conveyance 84 233
Legal and professional fees 1,316 588
Payments to auditors (note 37(a) below) 39 41
Directors’ fees 97 40
Carriage outward (net) 916 573
Warehouse and handling charges 628 911
Loss on disposal of property, plant and equipment 82 -
Commission on sales 37 42
Sales and promotion expenses 179 365
Utility services 214 293
Communiation expenses 35 59

31 March 2021 31 March 2020
Corporate social responsibility expenditure (note 37(b) below) 81 62
Foreign exchange fluctuations loss (net) - 1,350
Bad Debts Written Off 57 -
Provision for doubtful debts 34 318
Provision for doubtful loans, advances and other receivable (including write off) 504 37
Miscellaneous expenses @ 1,448 1,296
Total 15,895 12,946
Other expenses are net of recharges of ₹ 4,050 Lakhs (31 March 2020 : ₹3,909 Lakhs) to subsidiary company - Smartchem Technologies
Limited.
* net of reversal of MSEB electricity duty provision NIL (31 March 2020 : ₹ 1,923 Lakhs)
# net of reversal of provision for local body tax of Nil (31 March 2020 : ₹ 949 Lakhs)
@ Miscellaneous expenses include Provision for impairment of capital work in progress amounting to ₹ 1,015 Lakhs (31 March 2020 :₹ 575
Lakhs)
Note 37(a): Details of Payments to Auditors
31 March 2021 31 March 2020
Payment to auditors*
As auditor:
Audit fee 33 32
Certification fees in the capacity of statutory auditors 4 6
In other capacities
Reimbursement of expenses 2 3
Total 39 41
* Payment to auditors for current year include payment to previous auditor of ₹ 16 Lakhs.
Note 37(b): Corporate Social Responsibility Expenditure
31 March 2021 31 March 2020
Contributions to Ishanya Foundation 75 40
Others 6 22
Total 81 62
Amount required to be spent as per Section 135 of the Act 46 222

Amount spent during the year on
(i) Construction/acquisition of an asset - -
(ii) On purposes other than (i) above 81 62
Note 37(c): Earnings Per Share (EPS)

Basic EPS amounts are calculated by dividing the profits for the year attributable to equity share holders of The Company by
weighted average number of equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity shareholders of the Company by the weighted
average number of equity shares outstanding during the year plus the weighted average number of Equity shares that would be
issued on conversion of all the dilutive potential Equity Shares into equity shares.
The following reflects the profit and share data used in the basic and diluted EPS computation
31 March 2021 31 March 2020
Numerator for basic and diluted EPS
Net profit after tax attributable to equity shareholders of parent (₹ in Lakhs) for basic EPS 20,899 3,071
Add: Adjustment for interest on Foreign currency convertible bonds post tax 1,073 -
Net profit after tax attributable to equity shareholders of parent (₹ in Lakhs) for dilutes EPS 21,972 3,071
Denominator for basic and diluted EPS
Weighted average number of equity shares for basic EPS 96,531,814 91,124,605
Add: Adjustment for Foreign currency convertible bonds 8,324,718 -
Weighted average number of equity shares for diluted EPS 104,856,532 91,124,605
Basic earnings per share of face value of ₹ 10 each (in ₹/share) 21.65 3.37
Diluted earnings per share of face value of ₹ 10 each (in ₹/share) 20.95 3.37
Note 38: Fair Value Measurements

(i) Financial instruments by category
31 March 2021 31 March 2020

Fair value Fair value Amortised Fair value Fair value Amortised
through through OCI cost through through OCI cost
Profit & Profit &
Loss Loss
Financial assets
Investments
-E
quity instruments other than investments in - - - - 69 -
subsidiaries and associates*
- Mutual funds 10,504 - - - - -
Trade receivables - - 25,205 - - 41,245
Cash and cash equivalents - - 2,580 - - 9,005
Other bank balances - - 7,672 - - 9,617
Loans - - 51,687 - - 4,165
Other financial assets - -
-D
erivative financial asset, not designated as 12 - - 370 - -
hedges
- Derivative financial asset, designated as hedges 229 494 - - - -
- Embedded derivative 102 - - - - -
- Others - - 4,585 - - 2,029
Total financial assets 10,847 494 91,729 370 69 66,061
Borrowings - - 64,186 - - 75,063
Lease Liabilities 1,477 1,924
Trade payables - - 25,229 - - 32,133

31 March 2021 31 March 2020
through through OCI cost through through OCI cost
Profit & Profit &
Loss Loss
Other financial liabilities - - -
- Current maturities of long term debt - - 12,308 3,076
- Capital creditors - - 470 - - 1,883
- Security deposits - - 581 - - 748
- Interest accrued - - 615 - - 269
- Embedded derivative 17 - - 190
- Financial guarantee liability 1,157 - - 544 - -
- Others - - 3,848 - - 2,501
Total financial liabilities 1,174 - 108,714 734 - 117,597
* Investment in Subsidiaries and Associates are shown at Cost in balance sheet as per Ind AS 27 : Separate Financial Statements
(ii) Fair value hierarchy
The following table summarises financial assets and liabilities measured at fair value on a recurring basis and financial
assets that are not measured at fair value on a recurring basis (but fair value disclosures are required) :
The different levels have been defined as follows:
Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
Level 2 - Inputs other than quoted prices included within level-1 that are observable for asset or liability, either directly (i.e.
as prices) or indirectly (i.e. derived from prices).
Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs). Fair values
are determined in whole or in part using a valuation model based on assumptions that are neither supported by prices from
observable current market transactions in the same instrument nor are they based on available market data.
Financial assets and liabilities measured at fair 31 March 2021 31 March 2020
value
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
Financial assets
Financial Investments at FVPL
Mutual funds 10,504 - - - - - -
Financial Investments at FVOCI
Equity instruments - - - - 69 69
Derivatives
Foreign exchange forward contracts/options - 12 - 12 - 370 - 370
Commodity Hedge contract - 723 - 723 - - - -
Embedded derivative - 102 - - - - - -
Total financial assets 10,504 837 - 735 - 370 69 69
Derivatives
Embedded derivative - 17 - 17 - 190 - 190
Financial guarantee liability - 1,157 - 1,157 - 544 - 544
Total financial assets - 1,174 - 1,174 - 734 - 734

There are no transfers between Level 1, Level 2 and Level 3 during the year ended 31 March 2021 and 31 March 2020.
The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a
current transaction between willing parties, other than in a forced or liquidation sale.
(iii) Valuation technique to determine fair value
The following methods and assumptions were used to estimate the fair values of financial instruments:
a) The management assessed that fair value of cash and cash equivalents, trade receivables, trade payables, bank
overdrafts and other current financial assets and liabilities approximate their carrying amounts largely due to the short-
term maturities of these instruments.
b) The investments measured at fair value and falling under fair value hierarchy Level 3 are valued on basis of valuation
reports provided by external valuers with the exception of certain investments, where cost has been considered as an
appropriate estimate of fair value because of wide range of possible fair value measurements and cost represents the
best estimate of fair values within that ranges.
c) The fair values of investments in mutual fund units is based on the net asset value (NAV) as stated by the issuers of
these mutual fund units in the published statements as at Balance Sheet date, NAV represents the price at which the
issuers will issue further units of mutual fund and the price at which issuers will redeem such units from investor.
d) The Company enters into derivative financial instruments with various counterparties, principally banks. The fair value
of derivative financial instrument is based on observable market inputs including currency spot and forward rate,
yield curves, currency volatility, credit quality of counterparties, interest rate and forward rate curves of the underlying
instruments etc. and use of appropriate valuation models.
Note 39: Financial Risk Management
Risk management framework

The Company’s Board of Directors have overall responsibility for the establishment and oversight of the Company’s risk
management framework.
The Company, through three layers of defense namely policies and procedures, review mechanism and assurance aims to
maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.
The Audit committee of the Board with top management oversee the formulation and implementation of the Risk management
policies. The risk are identified at business unit level and mitigation plans are identified, deliberated and reviewed at appropriate
forums.
The Company has exposure to the following risks arising from financial instruments:
(i) credit risk;
(ii) liquidity risk; and
(iii) market risk.
i. Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counter party to a financial instrument
fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers, loans and
investments.
The carrying amount of financial assets represents the maximum credit risk exposure.
Trade receivables and other financial assets
The Company has established a credit policy under which each new customer is analysed individually for creditworthiness
before the payment and delivery terms and conditions are offered. The Company’s review includes external ratings, if they
are available, financial statements, credit agency information, industry information and business intelligence. Sale limits are
established for each customer and reviewed annually. Any sales exceeding those limits require approval from the appropriate
authority as per policy.

In monitoring customer credit risk, customers are grouped according to their credit characteristics, including whether they are
an individual or a legal entity, whether they are a institutional, dealers or end-user customer, their geographic location, industry,
trade history with the Company and existence of previous financial difficulties.
Expected credit loss for trade receivables:
The Company based on internal assessment which is driven by the historical experience/ current facts available in relation to
default and delays in collection thereof, considers the credit risk for trade receivables to be low. The Company estimates its
allowance for trade receivable using lifetime expected credit loss. The balance past due for more than 6 month (net of expected
credit loss allowance), excluding receivable from group companies is ₹ 549 lakhs (31 March 2020: ₹ 503 lakhs)
Movement in the expected credit loss allowance of trade receivables are as follows:
31 March 2021 31 March 2020
Balance at the beginning of the year 632 314

Add: Provided during the year (net of reversal) 34 318
Less: Amount written off - -
Balance at the end of the year 666 632
Expected credit loss on financial assets other than trade receivables:

With regards to all financial assets with contractual cash flows other than trade receivable, management believes these to be
high quality assets with negligible credit risk. The management believes that the parties from which these financial assets
are recoverable, have strong capacity to meet the obligations and hence the risk of default is negligible and accordingly no
provision for excepted credit loss has been provided on these financial assets.
ii. Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulties in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial asset. The Company’s approach to manage liquidity is to
ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and
stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.
The Company’s treasury department is responsible for managing the short term and long term liquidity requirements. Short
term liquidity situation is reviewed periodically by treasury. Longer term liquidity position is reviewed on a regular basis by
the Board of Directors and appropriate decisions are taken according to the situation.
Exposure to liquidity risk
The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and
undiscounted, and include contractual interest payments.
Payable within Between 1 and 5 More than 5

31 March 2021 Carrying Amount Total
1 year years years
Non-derivatives financial liabilities
Borrowings 76,494 12,459 44,396 19,640 76,495
Lease Liabilities 1,477 429 1,048 1,477
Trade payables 19,182 19,182 19,182
Other financial liabilities 6,688 5,899 764 25 6,688
Total non-derivative liabilities 103,841 37,969 46,208 19,665 103,841
Derivatives financial liabilities
Trade payables 6,047 6,047 - - 6,047
Total derivative liabilities 6,047 6,047 - - 6,047

Payable within Between 1 and 5 More than 5
31 March 2020 Carrying Amount Total
1 year years years
Borrowings 75,063 20,463 31,454 23,146 75,063
Lease Liabilities 1,924 633 1,291 - 1,924
Trade payables 24,097 24,097 - - 24,097
Other financial liabilities 9,090 8,783 307 - 9,090
Total non-derivative liabilities 110,174 53,976 33,052 23,146 110,174
- Interest Accrued 121 121 - - 121
- Trade payables 8,036 8,036 - - 8,036
iii. Market risk

Market risk is the risk that changes in market prices such as foreign exchange rates, interest rates that will affect the
Company’s income or the value of its holdings of financial instruments. The objective of market risk management is to
manage and control market risk exposures within acceptable parameters, while optimising the return.
a. Currency risk
The Company is exposed to currency risk to the extent that there is a mismatch between the currencies in which sales,
purchases and borrowings are denominated and the functional currency of the Company. The currencies in which the
Company is exposed to risk are USD, AED and EUR.
The Company follows a natural hedge driven currency risk mitigation policy to the extent possible. Any residual risk is
evaluated and appropriate risk mitigating steps are taken, including but not limited to, entering into forward contracts.
Exposure to currency risk
(i) The Company’s exposure to foreign currency risk at the end of the reporting period is presented in Note no 45.
(ii) The sensitivity of profit or loss to changes in the exchange rates arises mainly from foreign currency denominated financial
instruments and forward contracts.
Particulars Impact on profit after tax

31 March 2021 31 March 2020
USD sensitivity
₹ /USD -appreciated by 1% (31 March 2020-1%) (184) 89
₹ /USD -depreciated by 1% (31 March 2020-1%) 184 (89)
- -
b. Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. The Company is exposed to interest rate risk because funds are borrowed at both
fixed and floating interest rates. Interest rate risk is measured by using the cash flow sensitivity for changes in variable
interest rate. The borrowings of the Company are principally denominated in rupees and US dollars with a mix of fixed
and floating rates of interest. The Company has exposure to interest rate risk, arising principally on changes in base
lending rate and LIBOR rates. The risk is managed by the Company by maintaining an appropriate mix between fixed
and floating rate borrowings.
Exposure to interest rate risk
The interest rate profile of the Company’s interest‑bearing financial instruments as reported to the management of the Company
is as follows:

The following table provides a break-up of the Company’s fixed and floating rate borrowings:
31 March 2021 31 March 2020
Variable rate borrowings 76,494 60,752

Fixed rate borrowings - 17,387
Total borrowings 76,494 78,139
The Company has not obtained Interest Rate Swaps (IRS) for variable rate borrowings.
(ii) Sensitivity
The sensitivity analysis below has been determined based on the exposure to interest rates for floating rate liabilities
assuming the amount of the liability outstanding at the year-end was outstanding for the whole year.
If interest rates had been 50 basis points higher / lower and all other variables were held constant, the Company’s profit
for the year ended 31 March 2021 before tax would decrease / increase by ₹ 382 lacs (for the year ended 31 March 2020:
decrease / increase by ₹ 304 lacs). This is mainly attributable to the Company’s exposure to interest rates on its variable
rate borrowings.
Note 40: Capital Management

(a) Risk Management
The Company’s objectives when managing capital are to:
- safeguard its ability to continue as a going concern, so that its can continue to provide returns for its shareholders and
benefits for other stakeholders, and
- maintain an optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders,
return capital to shareholders, issue new shares or sell assets to reduce debt.
Consistent with others in the industry, the Company monitors capital on the basis of the following gearing ratio:
Net debt (total borrowings net of cash and cash equivalents and other bank balances) and divided by Total ‘equity’ (as
shown in the Balance Sheet).
The gearing ratios were as follows:
31 March 2021 31 March 2020
Net debt 66,242 59,517

Total equity 201,094 163,814
Net debt to equity ratio 0.33 0.36
(b) Dividends
31 March 2021 31 March 2020
(i) Equity shares

Final dividend for the year ended 31 March 2020 of ₹ 3 per fully paid equity share (31 March 2,679 2,646
2019 of ₹ 3 per fully paid equity share)
(ii) Dividend not recognised at the end of the reporting period
In addition to the above dividends, since year end the directors have recommended the 7,701 2,679
payment of a final dividend of ₹ 7.50 per fully paid equity share (31 March 2020 : ₹ 3). The
proposed dividend is subject to the approval of shareholders in the ensuring annual general
meeting.

After the reporting date, the following dividend (excluding dividend distribution tax) has been proposed by the Directors subject
to the approval at the Annual General Meeting; the dividends have not been recognised as a liability. The Finance Act, 2020 in
India has repealed Dividend Distribution Tax (DDT). The Companies are now required to pay/ distribute dividend after deducting
applicable taxes. The remittance of dividends outside India is governed by Indian law on foreign exchange and is also subject
to withholding tax at applicable rates as per Finance Act, 2020.
Note 41(a): Names of the Related Parties and Relationships
A Significant influence over the entity G Key management personnel

1 Nova Synthetic Limited (a) Executive directors
Mr. Sailesh Chimanlal Mehta
B Associates
1 Ishanya Realty Corporation Limited (b) Non-executive directors
Mrs. Parul Sailesh Mehta
C Subsidiaries Mr. Madhumilan Parshuram Shinde
Direct
1 Smartchem Technologies Limited (STL) (c ) Non-executive Independent directors
2 SCM Fertichem Limited
3 Ishanya Brand Services Limited Mr. Berjis Minoo Desai
4 Deepak Mining Services Private Limited (DMSPL) Mr. Ashok Kumar Purwaha
5 Deepak Nitrochem Pty Limited Mr. Mahesh Ramchand Chhabria (upto
31/07/2020)
Mr. Pranay Dhansukhlal Vakil (upto 21/09/2020)
Indirect Mr. Alok Perti
1 Performance Chemiserve Limited Dr. Amit Biswas
2 Australian Mining Explosives Pty Ltd (Subsidiary of PBS) Mr. Partha Sarathi Bhattacharyya
3 Platinum Blasting Services Pty Limited [PBS] (Subsidiary of STL) Mr. Bhuwan C Tripathi
4 Mahadhan Farm Technologies Private Limited (Subsidiary of STL) Ms. Renu Chullu (from 13/05/20 to 31/10/2020)
5 Complete Mining Solution Private Limited (Subsidiary of DMSPL) Mr. Sujal Shah (w.e.f 30/06/2020)
Ms. Varsha Vasant Purandare (w.e.f
31/01/2021)
D Jointly Controlled Entity
1 Yerrowda Investments Limited (c ) Company Secretary
Mr. K Subharaman (upto 06/11/2020)
E Entities over which key managerial personnel are able to Mr. Gaurav Munoli (From 07/11/2020 to
exercise significant influence: 03/02/2021)
1 Nova Synthetic Limited Mr. Ritesh Chaudhry (w.e.f 03/02/2021)
2 Ishanya Foundation
3 Robust Marketing Services Private Limited (d) Chief Finance Officer
4 Deepak Agro Solution Ltd Mr. Amitabh Bhargava
F Entities over which relatives of key managerial personnel are H Relatives of key management personnel
able to exercise significant influence:
1 Deepak Nitrite Limited 1 Mr. Yeshil Mehta
2 Deepak Phenolics Limited 2 Ms. Rajvee Mehta
3 Ishanya Foundation

Note 41(b): Related Party Transactions
31 March 2021 31 March 2020
Sr. Nature of Transactions Subsi- Jointly Key Relative Entities Enterprises Total Subsi- Jointly Key Relative Entities Enterprises Total
No. diaries Controlled Manage- of Key over Over Which diaries Cont- Manage- of Key over Over Which
Entity ment Manage- which Key Relatives rolled ment Manage- which Key Relatives
Personnel ment Manage- Are Able Entity Personnel ment Manage- Are Able
Personnel ment To Exercise Personnel ment To Exercise
Personnel Significant Personnel Significant
are able to Influence are able to Influence
exercise exercise
significant significant
Influence Influence
(*) (*)
1 Sale of goods
Smartchem Technologies Limited 40,358 - - - - - 40,358 58,140 - - - - 58,140
Deepak Nitrite Limited - - - - - 7,701 7,701 - - - - 6,953 6,953
Deepak Phenolics Limited - - - - - - - 21 21
Ishanya Brand Services Ltd 140 - - - - - 140 438 438
2 Rendering of services/
reimbursement of expenses
Smartchem Technologies Limited 14,238 - - - - - 14,238 13,736 - - - - 13,736
Performance Chemiserve Private 356 - - - - - 356 340 - - - - 340

Limited

SCM Fertichem Limited 52 - - - - - 52 53 - - - - 53
Ishanya Foundation - - - - - - - - - - 4 4
Yerrowda Investments Limited - 24.00 - - - - 24.00 - - - - - - -
Ishanya Brand Services Ltd 136 - - - - - 136 171 171
Complete mining solution pvt ltd 21 - - - - - 21 - - - - - -
3 Interest on loan given
Deepak Mining Services 2 - - - - - 2 1 - - - - 1
Smartchem Technologies Limited 2,426 - - - - - 2,426 98 - - - - 98
SCM Fertichem Limited 36 - - - - - 36 11 - - - - 11
4 Interest on loan taken

Deepak Agro Solution Ltd - - - - (15) - (15) - - - (14) - (14)
Robust Marketing Services Private - - - - (421) - (421) - - - - - -

Limited
Nova synthetic limited - - - - (112) - (112) - - - - - -
5 Purchase of goods and services
Smartchem Technologies Limited (11,446) - - - - - (11,446) (14,564) - - - - (14,564)

Ishanya Foundation - - - - (3.00) (3) - - - - - - -
31 March 2021 31 March 2020
exercise exercise
Influence Influence
(*) (*)
6 Receiving of services/reimbursement
of expenses
Yerrowda Investments Limited - - - - - - (86) - - - - (86)
Performance Chemiserve Private (313) - - - - - (313) (239) - - - - - (239)

Limited
M P Shinde - - (6) - - - (6) - - (8) - - - (8)
Ishanya Foundation - - - - - - - - - - - (1) - (1)
7 Asset Sale
Smartchem Technologies Limited - - - - - - - 686 - - - - 686
Deepak Nitrate Limited - - - - - - - - - - - 9,925 9,925
SCM Fertichem Limited - - - - - - - 461 - - - - 461
8 Donation given
Ishanya Foundation - - - - (75) - (75) - - - (40) - (40)
9 Remuneration & commission

(including perquisites)*
Mr Sailesh Chimanlal Mehta - - (1,318) - - - (1,318) - - (415) - - - (415)
Mr Amitabh Bhargava - - (292) - - - (292) - - (316) - - - (316)
Mr K Subharaman - - (65) - - - (65) - - (71) - - - (71)
Mr Ritesh Choudhary - - (10) - - - (10) - - - - - - -
Mr Gaurav Munoli (5.00) - - - (5.00) - - - - - - -
Ms. Rajvee Sailesh Mehta - - - (30) - - (30) - - - (26) - - (26)
Other Directors (157.00) (157.00) - - - - - - -
10 Lease rental income
Deepak Nitrite Ltd. - - - - - 7 7 - - - - - 7 7
11 Lease rental expenses
Robust Marketing Services Private - - - - (99) - (99) - - - - (76) - (76)

Limited

31 March 2021 31 March 2020
exercise exercise
Influence Influence
(*) (*)
12 Loan or Advances Taken
Robust Marketing Services Private - - - - 12,500 - 12,500 - - - - - - -

Limited
Nova synthetic Limited - - - - 7,500 - 7,500 - - - - - - -
Deepak Agro Solution limited - - - - - - - - - - - 265 - 265
13 Loan or Advances Repaid
Robust Marketing Services Private - - - - (12,500) - - - - - - - -

Limited (12,500)
Nova synthetic Limited (7,500) (7,500) - - - - - - -
14 Loan or Advances Given
Smartchem Technologies Limited (47,736) - - - - - (815) (815)

(47,736)
Deepak Mining Services (4) - - - - - (4) - - - - - - -
SCM Fertichem Limited - - - - - - - (500) - - - - - (500)
15 Loan or Advances received back/ -

(written off)
Smartchem Technologies Limited - - - - - - - 6,000 6,000
SCM Fertichem Limited (450) - - - - - (450) - - - - - - -
16 Shared subscribed in Right shares
Ishanya Brand solution limited (400) - - - - - (400) - - - - - - -
17 Allotment of equity shares
Robust Marketing Services Private - - - - 4,917 - 4,917 - - - - 3,333 - 3,333

Limited
Nova synthetic Limited - - - - 7,562 - 7,562 - - - - - - -
18 Purchase of equity shares Ishanya -

Brand Services Limited
Mr Sailesh Mehta - - - - - - - - - (3) - - - (3)
19 Advance paid for equity shares -

Ishanya Brand Services Limited
31 March 2021 31 March 2020
exercise exercise
Influence Influence
(*) (*)
Mrs Parul Mehta - - - - - - - - - - (3) - - (3)
20 Money received against share

warrant
Robust Marketing Services Private - - - - - - - - - - - (4,167) - (4,167)
Limited
21 Leasehold improvements (CWIP) to - - - - - - - 541.00 - - - 541.00
Key Management Personal
22 Amount outstanding -
Trade payables
Performance Chemiserve Private (540) - - - - - (540) (137) - - - - (137)

Limited
SCM Fertichem Limited - - - - - - - (19) - - - - - (19)
Remunerations payable -
Mr Sailesh Mehta - - (679) - - - (679) - - - - - -
Other Directors - - (157) - - - (157)
Trade receivables -
Smartchem Technologies Limited 8,086 - - - - - 8,086 15,775 - - - - - 15,775
Deepak Nitrite Ltd. - - - - - 1,360 1,360 - - - - - 877 877
SCM Fertichem Limited 35 - - - - - 35 - - - - - - -
Yerrowda Investments Limited - 8 - - - - 8 - 65 - - - - 65
Deepak Mining Services 15 - - - - - 15 22 - - - - - 22
Ishanya Brand Services Ltd 80 - - - - - 80 349 - - - - - 349
Deepak agro solution limited - - - - 5 - 5 - - - - - - -
Deepak Phenolics Limited - - - - - - - - - - - - 25 25
Robust Marketing Services Private - - - - - - - - - - - 3 - 3

Limited
Interest Receivable -
Deepak Mining Services 2 - - - - - 2 -
Smartchem Technologies Limited 2,426 - - - - - 2,426 98 - - - - - 98

31 March 2021 31 March 2020
exercise exercise
Influence Influence
(*) (*)
SCM Fertichem Limited 43 - - - - - 43 11 - - - - - 11
Deepak Mining Services 9 9 - - - - - - -
Interest Payable -
Deepak Agro Solution Ltd. - - - - - - - - - - - (12) (12)
Deposits Receivables -
Mr Sailesh Mehta - - 1,500 - - - 1,500 - - - 1,500 - - 1,500
Robust Marketing Services Private - - - - 650 - 650 - - - - 650 - 650

Limited
Loans recoverable -
Deepak Mining Services 25 - - - - - 25 21 - - - - - 21

Smartchem Technologies Limited 48,551 - - - - - 48,551 815 - - - - - 815
SCM Fertichem Limited 50 - - - - - 50 500 - - - - - 500
Loan Payable -
Deepak Agro Solution Ltd - - - - - - - - - - - (265) - (265)
Note : Figures in bracket are outflows.
Management is of the view that all transactions with related parties are in ordinary course and on an arm’s length basis.
*Remuneration doesn’t include sitting fees paid to non-executive directors of ₹ 97 Lakhs (31 March 2020 : ₹ 40 Lakhs). As the liability of Leave encashment and Gratuity is provided on Actuarial basis for
company as a whole, the said amounts are not included above.
Note :The Company has received Corporate Guarantee from M/s Yerrowda Investments Limited (YIL) (Refer note 22 point no (b)
All Transactions are in ordinary course and on an arm’s length basis
(*) Includes transaction with enterprises over which relatives are able to exercise significant influence
Note 42(a): Contingent Liabilities and Commitments
31 March 2021 31 March 2020
A. Contingent liabilities
Claims by suppliers not acknowledged as debts 8,197 31,976
Income Tax Demands 7,196 7,223
Excise/Service Tax/Custom Demands # 5,320 4,798
Sales Tax/ VAT Demands 10,042 4,661
Local Body Tax 1,543 1,543
Penalty on Entry Tax 1,551 1,551
Total 33,849 51,752
B. Capital commitments
Related to Projects 803 5,621
Related to Realty 551 601
C. Other Commitments
Commitments to Supplier 15,577 -
Total 16,931 6,222
# includes ₹1,881 Lakhs (31 March 2020 : ₹1,881 Lakhs) which pertains to service tax liabilities. Company has received a favourable order from
CESTAT against which the department has gone into appeal on December 04, 2019.
C. Other Commitments
During the year, the company has received a letter of waiver from a supplier for offtake liability and consequently, the
company now has to complete its purchase obligation over a period of eight years.
Note 43(a): Right issue of Shares

The Company has, issued 1,33,92,663 equity shares of face value of ₹ 10/- each (‘Rights Equity Shares’) to the Eligible Equity
Shareholders at.an issue price of ₹ 133 per Rights
Equity Share (including premium of ₹ 123 per Rights Equity Share). There is no deviation in use of proceeds from the objects
stated in the Offer document for rights issue.
Following are the details of utilization of proceeds from rights issue raised on October 20, 2020
Purpose for which proceeds are used (Amount ₹ in Lakhs)

1) Repayment of ICD received from related parties 12,500
2) Reduction of the consolidated borrowings of the Company by way of issuing an ICD to wholly owned 1,500
Subsidiary, STL, for repayment / prepayment of portion of their outstanding indebtedness
3) General Purpose (as mentioned in the Objects Clause of Letter of Offer dated 11th September 2020) 3,623
Total 17,623

Note 44: Disclosure Required Under Section 186(4) of Companies Act, 2013 and Schedule V read with Regulations 34(3)
and 53(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
Loans and advances to related parties includes loan given to a subsidiary. The particulars of which are disclosed below as required.
Name of the party Rate of interest Due date and Purpose 31 March 2021 31 March 2020
amount payable
SmartChem Technologies Limited 9.18% - 10% Repayable on The loan has been 48,551 815
demand granted to the subsidiary
for working capital
requirements. The loan is
repayable on demand.
Deepak Mining and Services Pvt 9.20% Repayable on The loan has been 25 21
Ltd demand granted to the subsidiary
for working capital
SCM Fertichem Ltd 9.20% Repayable on The loan has been 50 500
demand granted to the subsidiary
for working capital
Total 48,626 1,336
The Company has issued corporate guarantees on behalf of subsidiaries to banks. Details are as below :
Name of the party 31 March 2021 31 March 2020

Foreign currency Amount Foreign currency Amount
(Lakhs) (Lakhs)
Platinum Blasting Services Pty. Ltd (subsidiary of wholly owned AUD 93.5 5,200 AUD 93.5 4,327
subsidiary, Smartchem Technologies Limited)
Smartchem Technologies Limited (wholly owned subsidiary) - 74,010 - 76,052
Note 45: Foreign Currency Balances Outstanding
31 March 2021 31 March 2020

Amount in foreign Equivalent Amount Amount in foreign Equivalent Amount
currency in INR currency in INR
Hedged Position*
Creditors (in USD) 83 6,047 106 8,036
Interest on borrowing (USD) - - 2 121
Total 83 6,047 108 8,157
Un-hedged Position
Creditors (in USD) 5 400 21 1,601
Creditors (in EURO)# - - 0 26
Borrowings and interest (USD) 256 18,755 127 9,581
Exports Receivables (in USD) (8) (606) (9) (661)
Bank Balance (in USD)# - - (0) (12)
Total 253 18,549 139 10,535
# less than ₹ 50,000/-
*The above transactions are hedged by following derivative contracts

31 March 2021 31 March 2020
Amount in foreign Equivalent Amount Amount in foreign Equivalent Amount
currency in INR currency in INR
Forward Contracts -USD 14 1,005 15 1,148
Options Contracts - USD 69 5,042 93 7,009
Total 83 6,047 108 8,157
The Company has chosen to not designate the foreign exchange forward contracts and options contracts as hedges under IND
AS 109 since these contracts do not meet the Hedge accounting requirements.
Unhedged Foreign Currency exposure is as under
Amount in foreign 31 March 2021 Amount in foreign 31 March 2020

currency currency
Payables and borrowings (including interest) 261 19,155 148 11,208
Receivables and bank balances (8) (606) (9) (673)
Note 46: Impact of Hedging activities

The company is exposed to commodity price risk because the prices of its purchase of Propylene vary as a result of fluctuations
of the natural gas liquid. So, the company has used option contract to hedge its commodity i.e natural gas liquid. This natural
gas liquid consists of propane and Butane which is formula linked to the prices of propylene.
For Hedges of this commodity purchases, the company entered into a Hedge relationships where the critical terms of the
Hedging instrument match exactly with the terms of the Hedge item. The company therefore performs a qualitative assessment
of effectiveness. There was no ineffectiveness during financial year ended March 31, 2021 in relation to commodity rate hedge.
The company has not entered into any Cash flow Hedge contracts during financial year 2019-20.
A. Disclosure of effects of Hedge accounting on Financial position:
Type of Hedge and risk Gross Notional Carrying amount of Maturity date Hedge Weighted average
amounts of Hedging Hedging instrument ratio strike price
instrument
Cash flow Hedge- Commodity price
risk Units Quantity Asset Liabilities
Propane MT 3000 315 - July 31, 2021 1:4.4 USD 399 USD 351.6
Butane MT 4500.00 408 - July 31, 2021 1:4.4 USD 398 USD 352.6
B. Disclosure of effects of Hedge accounting on financial performance
Type of Hedge Changes in the Hedge ineffectiveness Amount Line item affected in
value of hedging recognised in profit or loss recognised statement of profit
instrument from Cash Flow and loss because of
recognised in OCI hedging reserve reclassification
to profit or loss
Cash Flow Hedge
Cost of material
Commodity rate risk 1,193 - 698
consumed

C. Movement in cash Flow hedging reserve
Risk category Commodity rate risk

1. Cash Flow Hedging reserve
As at April 1 , 2020 -
Add: Changes in fair value of commodity hedge contracts 1,193
Less: Amount reclassified to profit or loss 698
Less: Deferred tax relating to above 124
As at March 31, 2021 370
Note 47: Income Taxes

A. Components of Income Tax Expenses
31 March 2021 31 March 2020
I. Tax expense recognised in the statement of profit and loss
Current Tax
Current Year 5,240 -
Adjustments/(credits) related to previous year - (net) - -
Total (A) 5,240 -
Deferred tax charge/(credit) 1,097 (878)
Total (B) 1,097 (878)
Total (A+B) 6,337 (878)
II. Tax on Other Comprehensive Income
Deferred Tax
(Gain)/Loss on remeasurement of net defined benefit plans (129) (147)
(Gain)/Loss on debt instruments through other comprehensive income 107 -
Total (22) (147)
Reconciliation of tax expense and accounting profit multiplied by India’s domestic tax rate 31 March 2021 and 31 March 2020
31 March 2021 31 March 2020
Accounting profit before tax 27,236 2,193
At India’s statutory income tax rate of 25.17% (31 March 2017: 34.608%) (A) 6,855 552
Effects of non-deductible business expenses (122) 383
Effect of adopting new tax rates from Taxation Laws (Amendment) Act (refer note below) - (520)
Long term capital profit not subjected to income tax (131) (1,157)
Permanent adjustment of PPE Block (165) -
Effect of Depreciation recharges (231) (150)
Others 131 14
Total (B) (518) (1,430)
Income Tax expense reported in the statement of profit or loss (A+B) 6,337 (878)

During the year 2019-20, the Company decided to exercise the option permitted under Section 115BAA of the Income Tax Act,
1961 as introduced by the Taxation Laws (Amendment) Act, 2019 from the previous financial year. Accordingly, the provision
for income tax and deferred tax balances have been recorded/ remeasured using the new tax rate and the Company had
reversed deferred tax liabilities amounting to ₹ 520 lakhs in 2019-20.
Note 48:
Pursuant to the provisions of Section 132 and 133A of the Income-tax Act, 1961, a Search Operation was conducted by t he
Income Tax Department during the period from 15 November 2018 to 21 November 2018.
Block assessment of the company is in progress, assessment orders are awaited. Management is of the view that this will not
have any significant impact on the Company’s financial position and performance as at and for the year ended 31 March 2021
and hence no provision has been recognized as at 31 March 2021.
Note 49:
Segment information has been presented in the Consolidated Financial Statements as permitted by Indian Accounting Standard
Ind AS 108, Operating Segments as notified under the Companies (Indian Accounting Standard) Rules, 2015.
Note 50:
Entry tax liabilities have been classified as provisions (refer Note 25) during previous year.
The management based on legal advise is confident that the demand of Entry Tax to the extent of 9.5% of the purchase price
of the Natural Gas is revenue neutral since full set-off is available under the MVAT Act. The Company, therefore, had made a
provision only of 3% of the demand amount including interest. The penalty on the same had been disclosed under contingent
liabilities.
Note 51:
The Code on Social Security, 2020 (‘Code’) relating to employee benefits during employment and post- employment benefits
received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on
which the Code will come into effect has not been notified. The company will assess the impact of the Code when it comes into
effect and will record any related impact in the period the Code becomes effective.
Notes 3 to 51 form an integral part of the standalone financial statements.
For P G BHAGWAT LLP S. C. Mehta Amitabh Bhargava

Abhijeet Bhagwat P.S. Bhattacharyya Ritesh Choudhary



INDEPENDENT AUDITORS’ REPORT
To the Members of Financial Statements under the provisions of the Act and
Deepak Fertilisers And Petrochemicals Corporation Limited the Rules thereunder, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and
Report on the Audit of the Consolidated Financial Statements the Code of Ethics.
Opinion We believe that the audit evidence obtained by us and other
We have audited the accompanying Consolidated Financial auditors in terms of their reports referred to in “Other Matters”
Statements of Deepak Fertilisers And Petrochemical paragraph, is sufficient and appropriate to provide a basis for
Corporation Limited (hereinafter referred to as the “Holding our opinion.
Company”), its Subsidiaries (Holding Company and its
Emphasis of matter
Subsidiaries together referred to as “the Group”) and its
Joint Operation, which comprise the Consolidated Balance We draw attention to note 47 to the Consolidated Financial
Sheet as at March 31, 2021, the Consolidated Statement of Statements which describes that a Search Operation was
Profit and Loss (including Other Comprehensive Income), carried out by the Income Tax Department on the Holding
the Consolidated Statement of Changes in Equity and the Company and a Subsidiary in November 2018. Pursuant to
Consolidated Statement of Cash Flows for the year then notices received in the last quarter of the year 2019-20, the
ended, and notes to the Consolidated Financial Statements, Holding Company and its Subsidiary have filed revised tax
including a summary of significant accounting policies and returns for Assessment Years 2013-14 to 2018-19.
other explanatory information (hereinafter referred to as “the
A. The Holding Company’s Management does not expect
Consolidated Financial Statements”).
any significant additional liability to devolve on the
In our opinion and to the best of our information and Holding Company and no provision has been recognised
according to the explanations given to us, and based on as of March 31, 2021. Though the Holding Company
the consideration of reports of other auditors on separate has not received any demand and notices till date, the
financial statements and on the other financial statements/ uncertainty in the matter remains till the proceedings
financial information prepared by the management, the are concluded.
aforesaid Consolidated Financial Statements give the
B. During the year, the Subsidiary Company has filed
information required by the Companies Act, 2013 (“the Act”)
an application with the Income Tax Settlement
in the manner so required and give a true and fair view in
Commission (ITSC) for the earlier years to conclude the
conformity with the accounting principles generally accepted
final assessment for these years and offered additional
in India, of the consolidated state of affairs of the Group and
income in its application filed with ITSC and paid tax
its Joint Operation as at March 31, 2021, of the consolidated
and interest thereon. The amount of income tax and
profit and other comprehensive income, consolidated
interest so paid has been provided for in its financial
changes in equity and its consolidated cash flows for the year
statements.
then ended.
Our opinion is not modified in respect of this matter.
Basis for Opinion
We conducted our audit in accordance with the Standards Key Audit Matters
on Auditing (“SAs”) specified under section 143(10) of the Key audit matters are those matters that, in our professional
Act. Our responsibilities under those Standards are further judgment and based on consideration of the reports of
described in the Auditor’s Responsibilities for the Audit of other auditors, were of most significance in our audit of the
the Consolidated Financial Statements section of our report. Consolidated Financial Statements of the current period.
We are independent of the Group and its Joint Operation in These matters were addressed in the context of our audit
accordance with the Code of Ethics issued by the Institute of the Consolidated Financial Statements as a whole, and in
of Chartered Accountants of India together with the ethical forming our opinion thereon, and we do not provide a separate
requirements that are relevant to our audit of the Consolidated opinion on these matters.
Key Audit Matter Our Principal Audit Procedures

a. Contingent Liabilities i. Obtained an understanding of key internal financial
The Holding Company operates in various states within controls in respect of assessment of litigations and
India, exposing it to a variety of different Central and claims relating to the relevant laws and regulations;
State laws and regulations and interpretations thereof

In this complex regulatory environment, there is a high risk of ii. Obtained the Holding Compnay’s assessment of the
litigations and claims. The Holding Company’s tax positions pending disputes including where applicable, external
have been challenged by the authorities on a range of matters. legal counsel opinions, developments during FY 2020-
Moreover, resolution of tax and legal proceedings may span 21 and post year-end status of litigations;
over multiple years and may involve protracted negotiations or iii. Inquired with the Holding Company’s external legal
litigation. The Holding Company applies significant judgment counsels, where applicable and in case of material
in estimating the likelihood of the outcome of each case contingent liabilities, to understand the Holding
and consequently its impact on the Consolidated Financial Company’s assessment of the litigations and claims;
Statements. These estimates could change over time as new
facts emerge and as each matter progresses. Refer note iv. Evaluated the Holding Company’s assessments by
42 and note 50 to the Consolidated Financial Statements. understanding precedents set in similar cases and
Accordingly, we identified Contingent Liabilities as a key audit assessed the reliability of the Holding Company’s past
matter. estimates/judgements;
v. Performed test checks on the provision made/ contingent
liabilities/ other significant litigations /disclosures made
in the Consolidated Financial Statements; and
vi. Assessed the adequacy of the disclosures relating
to contingent liabilities in the Consolidated Financial
Statements.
b. Revenue Recognition: as reported by component Principle Audit Procedures by component auditors of
auditors of Smartchem Technologies Limited Smartchem Technologies Limited
Revenue is measured at the fair value of the consideration  Understood the policies and procedures applied to
received or receivable as reduced by dealer discounts revenue recognition, as well as compliance therewith,
and other similar allowances. including an analysis of the effectiveness of controls
related to revenue recognition processes.
Subsidy income is booked as revenue when the sale
 Analyzed and discussed with management significant
to dealer/retailer is recognised and is subject to the
contracts including contractual terms and conditions
Company ensuring compliance with relevant regulatory
related to discounts, incentives and rebates.
requirements.
 Reviewed the relevant estimates made in connection
Volume discounts are assessed based on anticipated with volume discounts and its accounting treatment in
sales. Further, timing of revenue recognition is dependent the books of account.
on the shipping terms agreed with customers in relation
 Performed procedures to ensure that subsidy is correctly
to passing of risk and rewards of ownership.
and timely booked as revenue at the rates prescribed by
The application of Indian accounting standard (Ind the Department of Fertilizers and in the correct period.
AS 115) involves significant judgements/material  Performed cut-off procedures to ensure that revenue is
estimates relating to identification of distinct accounted in the correct period.
performance obligations, determination of transaction  Selected a sample of contracts and performed the
price of the identified performance obligations and the following procedures:
appropriateness of the basis used to measure revenue
a. Analysed and identified the distinct performance
recognized over a period.
obligations in these contracts.
b. Compared such performance obligations with that
identified and recorded by the Company.
c. Reviewed contracts terms to determine
the transaction price including any variable
consideration to determine the appropriate
transaction price for computing revenue and to test
the basis of estimation of the variable consideration.
 Reviewed disclosures included in the notes to the
accompanying financial statements.

c. Impairment of Assets: as reported by component auditor Principle Audit Procedures by component auditors of
of Performance Chemiserve Limited Performance Chemiserve Limited
PCL has significant Capital Work in Progress relating to  Evaluated the reasonableness of management’s
the Ammonia Project. As the amount is significant, an conclusions on key assumptions, including forecast
assessment of the carrying value of assets of Ammonia cashflows focusing on revenues and earnings,
Project was required. assessing the appropriateness of discount rates,
historical and budgetary financial information, current
market conditions and growth rates.
 Assessed the reliability of the management’s forecast,
whilst considering the risk of management bias.
 Assessed the competence, capabilities, objectivity of the
independent professionals who provided the valuation
report.
 Evaluated the appropriateness of impairment model
prepared by the independent professional.
Other Information principles generally accepted in India, including the Indian

The Holding Company’s Board of Directors is responsible for Accounting Standards specified under section 133 of the
the other information. The other information comprises the Act read with the Companies (Indian Accounting Standards)
Management Discussion and Analysis; Board of Directors’ Rules, 2015, as amended.
Report along with its Annexures and Corporate Governance The respective Board of Directors of the companies included
Report included in the Annual Report but does not include the in the Group and its Joint Operation are responsible for
Consolidated Financial Statements and our Auditors’ Report maintenance of adequate accounting records in accordance
thereon. with the provisions of the Act for safeguarding the assets
Our opinion on the Consolidated Financial Statements does of the Group and its Joint Operation and for preventing
not cover the other information and we do not express any and detecting frauds and other irregularities; selection and
form of assurance conclusion thereon. In connection with application of appropriate accounting policies; making
our audit of the Consolidated Financial Statements, our judgments and estimates that are reasonable and prudent;
responsibility is to read the other information and, in doing and the design, implementation and maintenance of adequate
so, consider whether the other information is materially internal financial controls, that were operating effectively
inconsistent with the Consolidated Financial Statements or for ensuring accuracy and completeness of the accounting
our knowledge obtained in the audit or otherwise appears records, relevant to the preparation and presentation of the
to be materially misstated. If, based on the work we have Consolidated Financial Statements that give a true and fair
performed, we conclude that there is a material misstatement view and are free from material misstatement, whether due
of this other information; we are required to report that fact. to fraud or error, which have been used for the purpose of
We have nothing to report in this regard. preparation of the Consolidated Financial Statements by the
Directors of the Holding Company, as aforesaid.
Responsibilities of Management and Those Charged with
Governance for the Consolidated Financial Statements In preparing the Consolidated Financial Statements, the
respective Board of Directors of the companies included in the
The Holding Company’s Board of Directors are responsible Group and its Joint Operation are responsible for assessing
for the preparation and presentation of these Consolidated the ability of the Group and its Joint Operation to continue
Financial Statements in term of the requirements of the Act as a going concern, disclosing, as applicable, matters related
that give a true and fair view of the consolidated financial to going concern and using the going concern basis of
position, consolidated financial performance (including other accounting unless management either intends to liquidate
comprehensive income), the consolidated statement of the Companies included in the Group and its Joint Operation
changes in equity and consolidated cash flows of the Group or to cease operations, or has no realistic alternative but to
and its Joint Operation in accordance with the accounting do so.

The respective Board of Directors of the companies included uncertainty exists related to events or conditions that
in the Group and its Joint Operation are responsible for may cast significant doubt on the ability of the Group
overseeing the financial reporting process of the Group and and its Joint Operation to continue as a going concern.
its Joint Operation. If we conclude that a material uncertainty exists, we
are required to draw attention in our auditor’s report to
Auditor’s Responsibilities for the Audit of the Consolidated
the related disclosures in the Consolidated Financial
Financial Statements
Statements or, if such disclosures are inadequate, to
Our objectives are to obtain reasonable assurance about modify our opinion. Our conclusions are based on the
whether the Consolidated Financial Statements as a whole audit evidence obtained up to the date of our auditor’s
are free from material misstatement, whether due to fraud report. However, future events or conditions may cause
or error, and to issue an auditor’s report that includes our the Group and its Joint Operation to cease to continue
opinion. Reasonable assurance is a high level of assurance as a going concern.
but is not a guarantee that an audit conducted in accordance
 Evaluate the overall presentation, structure and content
with SAs will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are of the Consolidated Financial Statements, including the
considered material if, individually or in the aggregate, they disclosures, and whether the Consolidated Financial
could reasonably be expected to influence the economic Statements represent the underlying transactions and
decisions of users taken on the basis of these Consolidated events in a manner that achieves fair presentation.
Financial Statements.  Obtain sufficient appropriate audit evidence regarding
As part of an audit in accordance with SAs, we exercise the financial information of the entities or business
professional judgment and maintain professional skepticism activities within the Group and its Joint Operation
throughout the audit. to express an opinion on the Consolidated Financial
Statements. We are responsible for the direction,
We also: supervision and performance of the audit of the
 Identify and assess the risks of material misstatement Financial Statements of such entities included in the
of the Consolidated Financial Statements, whether due Consolidated Financial Statements of which we are the
to fraud or error, design and perform audit procedures independent auditors. For the other entities included
responsive to those risks, and obtain audit evidence in the Consolidated Financial Statements, which have
that is sufficient and appropriate to provide a basis been audited by other auditors, such other auditors
for our opinion. The risk of not detecting a material remain responsible for the direction, supervision and
misstatement resulting from fraud is higher than for performance of the audits carried out by them. We
one resulting from error, as fraud may involve collusion, remain solely responsible for our audit opinion. Our
forgery, intentional omissions, misrepresentations, or responsibilities in this regard are further described in
the override of internal control. section titled ‘Other Matters’ in this audit report.
 Obtain an understanding of internal control relevant to We communicate with those charged with governance of
the audit in order to design audit procedures that are the Holding Company and other companies included in the
appropriate in the circumstances. Under section 143(3) Consolidated Financial Statements of which we are the
(i) of the Act, we are also responsible for expressing our independent auditors regarding, among other matters, the
opinion on whether the Group and its Joint Operation planned scope and timing of the audit and significant audit
has adequate internal financial controls with reference findings, including any significant deficiencies in internal
to the Consolidated Financial Statements in place and control that we identify during our audit.
the operating effectiveness of such controls. We also provide those charged with governance with a
 Evaluate the appropriateness of accounting policies statement that we have complied with relevant ethical
used and the reasonableness of accounting estimates requirements regarding independence, and to communicate
and related disclosures made by management. with them all relationships and other matters that may
reasonably be thought to bear on our independence, and
 Conclude on the appropriateness of management’s use where applicable, related safeguards.
of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material From the matters communicated with those charged with
governance and based on audit reports of other auditors,

we determine those matters that were of most significance 2. The Consolidated Financial Statements include the
in the audit of the Consolidated Financial Statements of the financial statements and financial information of one
current period and are therefore the key audit matters. We subsidiary which have not been audited by us, whose
describe these matters in our auditor’s report unless law or financial statements reflect total assets of ` 27 Lakhs
regulation precludes public disclosure about the matter or and net assets of ` 27 Lakhs as at March 31, 2021,
when, in extremely rare circumstances, we determine that a total revenues of ` Nil Lakhs, total comprehensive
matter should not be communicated in our report because income (comprising of profit and other comprehensive
the adverse consequences of doing so would reasonably income) of ` Nil Lakhs and net cash inflows of ` 5
be expected to outweigh the public interest benefits of such Lakhs, for the year ended as on that date. The financial
communication. statements and financial information of this subsidiary
are management drawn. According to the information
Other Matters
and explanations given to us by the management and in
1. We did not audit the financial statements and financial our opinion, these financial statements are not material
information of nine subsidiaries included in the to the Group.
Consolidated Financial Statements, whose financial
statements reflect total assets of ` 740,911 Lakhs and 3. We did not audit the financial statements and financial
net assets of ` 360,326 Lakhs as at March 31, 2021, information of one joint operation included in the
revenues from operation of ` 429,708 Lakhs, total Standalone Financial Statements. The management
comprehensive income (comprising of profit and other of the Holding Company recorded its share based
comprehensive income) of ` 22,582 Lakhs and net on Management drawn financial statements of the
cash inflows of ` 7,622 Lakhs, for the year ended as joint operation. According to the information and
on that date. These financial statements and financial explanations given to us by the management and in our
information have been audited by other auditors whose opinion, these financial statements are not material to
reports have been furnished to us by the management the Group.
and our opinion on the Consolidated Financial 4. The management has not consolidated its Associate,
Statements, in so far as it relates to the amounts and Ishanya Realty Corporation Limited in which the Holding
disclosures included in respect of these subsidiaries Company holds 5 Lakhs. According to the information
and our report in terms of sub-section (3) of Section and explanations given to us by the management and
143 of the Act, in so far as it relates to the aforesaid in our opinion, the share in the financial profit/(loss) of
subsidiaries, is based solely on the reports of the other this Associate is not material to the Group.
auditors.
5. The Consolidated Financial Statements of the Group
Certain of these subsidiaries are located outside and its Joint Operation for the year ended March 31,
India whose financial statements and other financial 2020, were audited by other auditors who had expressed
information have been prepared in accordance with an unmodified opinion on those statements on June 30,
accounting principles generally accepted in their 2020.
respective countries and which have been audited
by other auditors under generally accepted auditing Our opinion on the Consolidated Financial Statements, and
standards applicable in their respective countries. The our report on Other Legal and Regulatory Requirements
Company’s management has converted the financial below, is not modified in respect of the above matters with
statements of such subsidiaries located outside respect to our reliance on the work done and the reports of
India from accounting principles generally accepted the other auditors and the financial statements certified by
in their respective countries to accounting principles the Holding Company’s Management.
generally accepted in India. We have audited these
Report on Other Legal and Regulatory Requirements
conversion adjustments, if any, made by the Company’s
management. Our opinion in so far as it relates to As required by Section 143(3) of the Act, based on our
the balances and affairs of such subsidiaries located audit and on the consideration of reports of the other
outside India is based on the report of other auditors auditors on separate financial statements and the other
and the conversion adjustments prepared by the financial statements/ financial information prepared by the
management of the Company and audited by us. management, as noted in the Other Matters paragraph, we
report, to the extent applicable, that:

a) We have sought and obtained all the information and excess of the limit laid down under section 197 of the
explanations which to the best of our knowledge and Act.
belief were necessary for the purposes of our audit of
h) With respect to the other matters to be included in
the aforesaid Consolidated Financial Statements.
the Auditor’s Report in accordance with Rule 11 of the
b) In our opinion, proper books of account as required Companies (Audit and Auditors) Rules, 2014, in our
by law relating to preparation of the aforesaid opinion and to the best of our information and according
Consolidated Financial Statements have been kept so to the explanations given to us and on the consideration
far as it appears from our examination of those books of reports of the other auditors on separate financial
and the reports of the other auditors. statements:
c) The Consolidated Balance Sheet, the Consolidated (i) The Consolidated Financial Statements disclose
Statement of Profit and Loss (including Other the impact of pending litigations as at March 31,
Comprehensive Income), the Consolidated Statement 2021 on the consolidated financial position of the
of Changes in Equity and the Consolidated Statement of Group and its Joint Operation - Refer Note 42 and
Cash Flows dealt with by this Report are in agreement 50 to the Consolidated Financial Statements.
with the relevant books of account maintained for the
(ii) The Group and its Joint Operation did not have any
purpose of preparation of the Consolidated Financial
long-term contracts including derivative contracts
Statements.
for which there were any material foreseeable
d) In our opinion, the aforesaid Consolidated Financial losses as at March 31, 2021.
Statements comply with the Indian Accounting
(iii) There are no delay in amounts, required to
Standards specified under Section 133 of the Act, read
be transferred, to the Investor Education and
with Companies (Indian Accounting Standards) Rules,
Protection Fund by the companies incorporated
2015, as amended.
in India in the Group and its Joint Operation
e) On the basis of the written representations received during the year ended March 31, 2021 except the
from the directors of the Holding Company as on March following:
31, 2021 taken on record by the Board of Directors of
the Holding Company and the reports of the statutory Year Type of Dividend Status
auditors of companies incorporated in India included dividend unpaid in
in the Group, none of the directors of the companies Lakhs
incorporated in India included in the Group, is 1997- Final 0.37 Not yet transferred to
disqualified as on March 31, 2021 from being appointed 1998 Investor Education and
as a director in terms of Section 164(2) of the Act. Protection Fund due
to legal dispute with
f) For our opinion on the internal financial controls with
regards ownership of
reference to Consolidated Financial Statements of the
shares which remains
Holding Company and its subsidiaries incorporated in
unresolved
India and the operating effectiveness of such controls,
refer to our separate Report in Annexure I. For P. G. BHAGWAT LLP
g) As required by section 197 (16) of the Act; in our opinion
and according to the information and explanations
given to us, and on the consideration of reports of Abhijeet Bhagwat
the other auditors on separate financial statements; Partner
the remuneration paid during the current year to its Membership No.: 136835
Directors by the companies incorporated in India to UDIN: 21136835AAAABO4481
whom section 197 applies, included in the Group is in
accordance with the provisions of section 197 of the Place: Pune
Act. The remuneration paid to any director is not in Date: 28 May 2021

Annexure I to the Independent Auditors’ Report Our audit involves performing procedures to obtain audit
evidence about the internal financial controls with reference
Referred to in paragraph 2 (f) under the heading, “Report on
to Consolidated Financial Statements and their operating
effectiveness. Our audit of internal financial controls with
even date:
reference to Consolidated Financial Statements included
Report on the Internal Financial Controls with reference to obtaining an understanding of internal financial with reference
Consolidated Financial Statements to Consolidated Financial Statements, assessing the risk that
a material weakness exists, and testing and evaluating the
under Clause (i) of Sub-section 3 of Section 143 of the design and operating effectiveness of internal control based
Companies Act, 2013 (“the Act”) on the assessed risk. The procedures selected depend on
We have audited the internal financial controls with the auditor’s judgement, including the assessment of the
reference to the Consolidated Financial Statements of risks of material misstatement of the Consolidated Financial
Deepak Fertilisers And Petrochemical Corporation Limited Statements, whether due to fraud or error.
(hereinafter referred to as the “Holding Company”) and its We believe that the audit evidence we have obtained, and
subsidiaries incorporated in India for the year ended on that audit evidence obtained by other auditors of subsidiaries
date. incorporated in India, referred to in other matter paragraph
Management’s Responsibility for Internal Financial Controls below is sufficient and appropriate to provide a basis for
our audit opinion on the Holding Company and subsidiary
The management of the companies incorporated in India companies incorporated in India’s internal financial controls
included in the Group and its Joint Operation incorporated in with reference to Consolidated Financial Statements.
India is responsible for establishing and maintaining internal
financial controls based on the internal control over financial Meaning of Internal Financial Controls with reference to the
reporting criteria established by the Holding Company Consolidated Financial Statements
considering the essential components of internal control A company’s internal financial control with reference to the
stated in the Guidance Note on Audit of Internal financial Consolidated Financial Statements is a process designed
controls over financial reporting issued by the Institute to provide reasonable assurance regarding the reliability
of Chartered Accountants of India. These responsibilities of financial reporting and the preparation of Consolidated
include the design, implementation and maintenance of Financial Statements for external purposes in accordance
adequate internal financial controls that were operating with generally accepted accounting principles. A company’s
effectively for ensuring the orderly and efficient conduct of internal financial control with reference to the Consolidated
its business, including adherence to company’s policies, the Financial Statements those policies and procedures that (1)
safeguarding of its assets, the prevention and detection of pertain to the maintenance of records that, in reasonable detail,
frauds and errors, the accuracy and completeness of the accurately and fairly reflect the transactions and dispositions
accounting records, and the timely preparation of reliable of the assets of the company; (2) provide reasonable
financial information, as required under the Act. assurance that transactions are recorded as necessary to
Auditors’ Responsibility permit preparation of Consolidated Financial Statements in
accordance with generally accepted accounting principles,
Our responsibility is to express an opinion on the Group and that receipts and expenditures of the company are being
internal financial controls with reference to the Consolidated made only in accordance with authorisations of management
Financial Statements based on our audit. We conducted and directors of the company; and (3) provide reasonable
our audit in accordance with the Guidance Note on Audit assurance regarding prevention or timely detection of
of Internal financial controls over financial reporting (the unauthorised acquisition, use, or disposition of the company’s
“Guidance Note”) and the Standards on Auditing, to the extent assets that could have a material effect on the Consolidated
applicable to an audit of internal financial controls, both Financial Statements.
issued by the Institute of Chartered Accountants of India.
Those Standards and the Guidance Note require that we Inherent Limitations of Internal Financial Controls with
comply with ethical requirements and plan and perform the reference to the Consolidated Financial Statements
audit to obtain reasonable assurance about whether adequate Because of the inherent limitations of internal financial
internal financial controls with reference to Consolidated controls with reference to the Consolidated Financial
Financial Statements was established and maintained and Statements, including the possibility of collusion or improper
if such controls operated effectively in all material respects. management override of controls, material misstatements

due to error or fraud may occur and not be detected. Also, Other Matters
projections of any evaluation of the internal financial controls Our aforesaid reports under Section 143(3)(i) of the Act on
with reference to the Consolidated Financial Statements the adequacy and operating effectiveness of the internal
to future periods are subject to the risk that the internal financial controls with reference to consolidated financial
financial control with reference to the Consolidated Financial statements insofar as it relates to four subsidiary companies
Statements may become inadequate because of changes in incorporated in India, is based on the corresponding reports
conditions, or that the degree of compliance with the policies of the auditors of such companies incorporated in India.
or procedures may deteriorate.
Opinion
For P. G. BHAGWAT LLP
In our opinion and based on the audit reports of other
auditors, the Holding Company and subsidiaries incorporated
in India have, in all material respects, adequate internal
financial controls with reference to Consolidated Financial Abhijeet Bhagwat
Statements and such internal financial controls with Partner
reference to Consolidated Financial Statements were Membership No.: 136835
operating effectively as at March 31, 2021, based on the UDIN: 21136835AAAABO4481
internal control over financial reporting criteria established by
the Holding Company considering the essential components Place: Pune
of internal control stated in the Guidance Note on Audit of Date: 28 May 2021
Internal financial controls over financial reporting issued by
the Institute of Chartered Accountants of India.

CONSOLIDATED BALANCE SHEET
ASSETS
Non-current assets
Property, plant and equipment 3 2,25,347 2,42,500
Capital work-in-progress 4 1,61,574 1,30,940
Investment property 5 3,607 3,607
Right of use of assets 5(a) 27,100 19,095
Goodwill on consolidation 5(b) 4,368 4,093
Other intangible assets 6 1,663 1,887
Intangible asset under development 4a 312 16
Investment in equity accounted investees 7 5 5
Financial assets
i. Investments 8 3 72
ii. Loans 12 2,823 3,140
iii. Other financial assets 15 1,740 1,590
Deferred tax assets (net) 26 4,703 4,589
Income tax assets (net) 11,069 12,112
Other non-current assets 16 29,067 28,924
Total non-current assets 4,73,381 4,52,570
Current assets
Inventories 17 63,722 68,369
Investment in equity shares (held-for-sale) 9 - 149
Financial assets
i. Investments 10 44,920 1,011
ii. Trade receivables 11 90,612 1,27,580
iii. Cash and cash equivalents 13 16,959 15,757
iv. Other bank balances 14 7,672 10,169
v. Loans 12 1,018 144
vi. Other financial assets 15 1,861 2,501
Other current assets 18 14,177 14,873
Total current assets 2,40,941 2,40,553
Total assets 7,14,322 6,93,123
EQUITY AND LIABILITIES
Equity
Equity share capital 19 10,268 8,928
Other equity 20 2,59,991 2,09,150
Equity attributable to owners of the Company 2,70,259 2,18,078
Non controlling interest 9,701 4,313
Total equity 2,79,960 2,22,391

CONSOLIDATED BALANCE SHEET
Liabilities
Non-current liabilities
Financial Liabilities
i. Borrowings 21 2,18,659 2,08,425
ii. Lease liabilities 5(a) 6,619 6,784
iii. Other financial liabilities 23 4,409 170
Total non-current liabilities 2,36,395 2,21,066
Current liabilities
i. Borrowings 22 11,019 71,930
ii. Lease liabilities 5(a) 1,333 1,944
iii. Trade payables
(a) total outstanding dues of micro and small enterprises 25 1,436 762
(b)
total outstanding dues of creditors other than micro and small enterprises 25 1,28,240 1,28,687
iv. Other financial liabilities 23 43,048 33,722
Other current liabilities 27 4,936 4,476
Current tax liabilities (net) 580 244
Total current liabilities 1,97,967 2,49,666
Total liabilities 4,34,362 4,70,732
Total equity and liabilities 7,14,322 6,93,123

Firm Registration No.: 101118W/W100682 DIN : 00128204



CONSOLIDATED STATEMENT OF PROFIT AND LOSS
Notes Year ended Year ended 31

31 March 2021 March 2020
INCOME
Revenue from operations 28 5,80,849 4,68,538
Other income 29 3,267 9,545
Total income 5,84,116 4,78,083
EXPENSES
Cost of materials consumed 30 2,89,212 2,61,470
Purchases of stock-in-trade 31 84,351 55,471
Changes in inventories of finished goods & stock-in-trade 32 6,826 14,017
Employee benefits expense 33 36,513 30,617
Finance costs 34 18,771 24,293
Depreciation and amortisation expense 35 21,195 21,353
Other expenses 36 68,416 60,537
Total expenses 15,25,284 4,67,758
Profit before share of (loss) of equity accounted investees and income tax 58,832 10,325
Share of (loss) of equity accounted investees - (17)
Tax expense
Current tax 18,672 381
Deferred tax (credit)/charge (484) 1,026
Total tax expense 18,188 1,407
Profit for the year 40,644 8,901
Other comprehensive income ('OCI')
(A) Items that will not be reclassified to profit or loss
Remeasurement of defined benefit obligations (840) (1,121)
Income tax relating to these item 243 334
Total (A) (597) (787)
(B) Items that will be reclassified subsequently to profit or loss
Exchange differences on translation of foreign operations 882 (191)

Changes in fair value of investments carried at fair value through OCI (69) -
Cash Flow hedge 494 -
Income tax relating to this item (107) -
Total (B) 1,200 (191)
Other comprehensive income for the year (A+B), net of tax liability 603 (978)
Total comprehensive income for the year 41,247 7,923

CONSOLIDATED STATEMENT OF PROFIT AND LOSS
Notes Year ended Year ended 31

31 March 2021 March 2020
Profit for the year attributable to:
- Owners of the Company 40,031 8,726
- Non controlling interests 613 175
Other comprehensive income (net of tax) attributable to:
- Owners of the Company 294 (911)
- Non controlling interests 309 (67)
Total comprehensive income for the year attributable to:
- Owners of the Company 40,325 7,815
- Non controlling interests 922 108
Earnings per equity share of ₹ 10 each 37(c)
i) Basic (in `) 41.47 9.58
ii) Diluted (in `) 39.20 9.58
The accompanying notes form an integral part of the consolidated financial statements 3 - 53




CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
A. EQUITY SHARE CAPITAL

31 March 2021 31 March 2020
Balance at the beginning and at the end of the year 8,928 8,820
Shares issued during the year - 108
Right issues of shares during the year 1,340 -
Balance as at the end of the year 10,268 8,928
B. OTHER EQUITY
Reserves and surplus Items of Other Total Non Total

Comprehensive attributable Controlling
Income to Owners Interest
of the
Securities Capital Share Capital Equity General Retained Fair Other Company
premium redemption Warrants Reserve portion of reserve earnings value Items of
reserve non-current through Compre-
borrowings OCI hensive
(FCCB) Income
Balance as at 10,536 1,950 5,000 - - 17,922 1,66,593 (45) (991) 2,00,965 4,377 2,05,342
1 April 2019
Profit for the - - - - - - 8,726 - - 8,726 175 8,901
year
Fair value - - - - - - - - - - - -
changes on
cash flow
hedge, net of
tax
Other compre- - - - - - - - - (911) (911) (67) (978)
hensive income
Exchange - - - - - - - - - -
difference on
account of
issue of share
Total compre- - - - - 8,726 - (911) 7,815 108 7,923
hensive income
for the year
Issue of Share - - - - - - - - - - 24 24
warrants
Adjustment - - - - - - (134) (134) (72) (206)
from adoption
of IND AS 116
Conversion of 3,225 - (833) - 2,392 2,392
Share warrants
to equity shares
Movement of - - - - - - 16 - - 16 (16) -
NCI on account
additional
share purchase
of Complete
Mining Solution
Private Limited
Equity portion - - - - 1,286 - - - - 1,286 - 1,286
of Foreign
Currency Con-
vertible Bonds
Dividend paid to - - - - - - - - - - (108) (108)
non-controlling
interest
Dividend paid - - - - - - (3,190) - - (3,190) - (3,190)
including tax on
dividend
Balance as at 13,761 1,950 4,167 - 1,286 17,922 1,72,011 (45) (1,902) 2,09,150 4,313 2,13,463
1 April 2020

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Reserves and surplus Items of Other Total Non Total

Comprehensive attributable Controlling
Income to Owners Interest
of the
Securities Capital Share Capital Equity General Retained Fair Other Company
premium redemption Warrants Reserve portion of reserve earnings value Items of
reserve non-current through Compre-
borrowings OCI hensive
(FCCB) Income
Profit for the - - - - - - 40,031 - - 40,031 613 40,644
year
Fair value - - - - - - - - - - - -
changes on
cash flow
hedge, net of
tax
Other compre- - - - - - - - 891 (597) 294 309 603
hensive income
Total compre- - - - - - 40,031 891 (597) 40,325 922 41,247
hensive income
for the year
Premium on 16,473 - - - - - - - 16,473 - 16,473
allotment of
shares under
Right issue
Share issue (190) - - - - - - - (190) - (190)
expenses
Increase in - - - - - (4,592) - - (4,592) 4,592 -
non-controlling
interest due
to issuance of
share capital
Equity portion - - - 1,504 - - - - 1,504 - 1,504
of Foreign
Currency Con-
vertible Bonds
Share warrant - - (4,167) 4,167 - - - - - - - -
forfeiture trans-
ferred to Capital
reserve
Dividend - - - - - - - - - (126) (126)
payable to
non-controlling
interest
Dividend - - - - - (2,679) - - (2,679) - (2,679)
Balance as at 30,044 1,950 - 4,167 2,790 17,922 2,04,771 846 (2,499) 2,59,991 9,701 2,69,692
31 March 2021
Note: Refer note 20 for nature and purpose of other equity.
The accompanying notes form an integral part of the consolidated financial statements




CONSOLIDATED STATEMENT OF CASH FLOWS

31 March 2021 31 March 2020
Cash flow from operating activities
Profit before tax as per statement of profit and loss 58,832 10,308
Adjustments for
Depreciation and amortisation expense 21,195 21,353
(Profit)/Loss on sale of property, plant and equipment (net) 562 (3,516)
Provision for doubtful trade receivables 2,474 801
Provision for doubtful advances, loans and other receiveable 52 -
Bad debts 50 -
Gain on sale of investments (1,220) (2,907)
Changes in fair value of financial assets at fair value through profit or loss 48 89
Provision for stores and spares (28) 303
Provision for capital work-in-progress 1,015 575
Unrealised (gain)/loss on embedded derivative contracts (788) 908
Share of loss of associates - 17
Interest income (923) (1,048)
Finance costs 18,771 24,293
Unrealized foreign exchange fluctuations (gain)/loss ( net) (919) 1,504
Cash generated from operations before working capital changes 99,122 52,680
Change in trade receivables 34,810 10,988
Change in inventories 4,675 14,118
Change in trade payables 844 (21,978)
Change in other financial liabilities 2,441 1,310
Change in other financial assets 1,576 (1,579)
Change in other non-current assets (1,627) (12,918)
Change in other current assets 696 18,313
Change in other security deposits (609) -
Change in provisions (345) 424
Change in other current liabilities 460 (1,820)
Cash generated from operations 1,42,043 59,538
Income taxes paid (net) (17,293) (1,711)
Net cash generated from operating activities 1,24,750 57,827
Cash flows from investing activities
Payment for acquisition of subsidiary, net of cash acquired - (1,383)
Purchase of property, plant and equipment, intangible assets (including Capital work-in- progress) (23,654) (44,897)
Proceeds from sale of property, plant and equipment 270 9,812
Proceeds from sale of investments in mutual fund 2,27,002 (2,26,753)
Purchase of investments in mutual fund (2,70,534) 2,50,826
Loans to employees and other loans given - 30
Proceeds from issue of shares to non controlling interest - 24
Proceeds from sale of investment in associate 944 2,820
Fixed deposit placed (36,356) (30,622)
Fixed deposit matured 38,757 23,169
Interest received 1,179 1,409
Net cash (used in) investing activities (62,392) (15,565)

CONSOLIDATED STATEMENT OF CASH FLOWS

31 March 2021 31 March 2020
Cash flows from financing activities
Proceeds from borrowings - non current 12,700 23,528
Repayment of borrowings - non current (13,604) (8,239)
Proceeds from issue of foreign currency convertible bonds (FCCB) 11,150 10,549
Proceeds from issue of compulsory convertible debentures 10,500 10,500
Proceeds from borrowings - current 48,923 3,14,676
Repayment of borrowings - current (1,10,054) (3,60,337)
Payment of lease (2,144) (1,900)
Proceeds of call on Share capital - 2,500
Proceeds from Right issue of Equity shares 17,623 -
Interest paid (33,758) (23,391)
Dividends paid (including dividend distribution tax) (2,643) (3,157)
Dividends paid to non-controlling interests - (108)
Net cash (used in) from financing activities (61,307) (35,379)
Net (decrease) in cash and cash equivalents 1,051 6,883
Cash and cash equivalents at the beginning of the year 15,757 8,874
Cash and cash equivalents at end of the year 16,808 15,757
The accompanying notes form an integral part of the consolidated financial statements.
Reconciliation of cash and cash equivalents as per the Cash flow statement
Cash and cash equivalents at the end of year 16,959 15,757
Bank overdraft (151) -
16,808 15,757
The above statement of Cash Flows has been prepared under the ‘Indirect Method’ as set out in
Ind AS 7, ‘’Statement of Cash Flows’’




NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2021
1. Corporate Information The consolidated financial statements are

presented in Indian Rupees (“INR”), which is also
Deepak Fertlisers and Petrochemicals Corporation
the Group functional currency and all values are
Limited (“the Holding Company or the Parent Company”)
rounded off to the nearest Lakhs, except when
is a public limited company domiciled in India, with
otherwise indicated. Wherever, an amount is
its registered office at Pune, Maharashtra, India. The
presented as INR ‘0’ (zero) it construes value less
Holding Company has been registered under the
than ₹ 50,000.
provisions of the Indian Companies Act and its equity
shares are listed on the National Stock Exchange (NSE) 2.2A Significant accounting estimates, assumptions
and the Bombay Stock Exchange (“BSE”) in India. and judgements
The Holding Company and its subsidiaries (together The preparation of the consolidated financial
referred to as “the Group”) is engaged in the business statements requires management to make
of fertlisers, agri services, bulk chemicals, mining estimates and assumptions that affect the
chemicals and value-added real estate. reported amounts of revenues, expenses, assets
and liabilities, and the accompanying disclosures,
These consolidated financial statements of the Group
and the disclosure of contingent liabilities.
as at and for the year ended on 31 March 2021 were
Uncertainty about these assumptions and
approved for issue in accordance with the resolution of
estimates could result in outcomes that require
the Board of Directors on 28 May 2021.
a material adjustment to the carrying amount of
2. Significant Accounting Policies assets or liabilities effected in future periods.
This note provides a list of the significant accounting Estimates and assumptions
policies adopted in the preparation of these consolidated
The key assumptions concerning the future and
financial statements. These policies have been
other key sources of estimation uncertainty at
consistently applied to all the years presented, unless
the reporting date, that have a significant risk of
otherwise stated.
causing a material adjustment to the carrying
2.1 Basis of preparation amount of assets and liabilities within the next
financial year, are described below. The Group
The consolidated financial statements of the has based its assumptions and estimates on
Group have been prepared in accordance with parameters available when the consolidated
Indian Accounting Standards (‘Ind AS’) notified financial statements were prepared. Existing
under Section 133 of the Companies Act, 2013 circumstances and assumptions about future
(“the Act”) read with the Companies (Indian developments, however, may change due to
Accounting Standards) Rules, 2015 notified, as market changes or circumstances arising that are
amended thereafter and other relevant provisions beyond the control of the Group. Such changes are
of the Act. reflected in the assumptions when they occur.
The consolidated financial statements have Taxes
been prepared on an accrual basis and under the
historical cost convention, except for the following There are many transactions and calculations
assets and liabilities which have been measured undertaken during the ordinary course of business
at fair value: for which the ultimate tax determination is
uncertain. Where the final outcome of these
 Derivative financial instruments; matters is different from the amounts initially
 Certain financial assets and liabilities recorded, such differences will impact the current
measured at fair value (refer accounting and deferred tax provisions in the period in which
policy on financial instruments); and the tax determination is made. The assessment
of probability involves estimation of a number of
 Employee defined benefits plans – plan factors including future taxable income.
assets are measured at fair value

Useful lives of Property, plant and equipment active markets, their fair value is measured using
(‘PPE’) valuation techniques including the Discounted
Cash flow (“DCF”) model. The inputs to these
The Management reviews the estimated useful
models are taken from observable markets where
lives and residual value of PPE at the end of
possible, but where this is not feasible, a degree
each reporting period. Factors such as changes
of judgement is required in establishing their
in the expected level of usage, number of shifts
fair values. Judgements include consideration
of production, technological developments and
of inputs such as liquidity risk, credit risk and
product life-cycle, could significantly impact the
volatility. Changes in assumptions about these
economic useful lives and the residual values
factors could affect the reported fair values of
of PPE, consequently leading to a change in the
financial instruments.
future depreciation charge.
Impairment of financial assets
Defined benefit plans
The Group assesses impairment based on the
Employee benefit obligations are determined using
expected credit loss (“ECL”) model on trade
independent actuarial valuations. An actuarial
receivables. The Group uses a provision matrix
valuation involves making various assumptions
to determine impairment loss allowance on the
that may differ from actual results in the future.
portfolio of trade receivables. The provision matrix
These include the determination of the discount
is based on its historically observed default rates
rate, future salary increases, experience of
over the expected life of the trade receivables.
employee departures and mortality rates. Due to
the complexities involved in the valuation and its Impairment of non-financial assets (including
long-term nature, employee benefit obligation is PPE, CWIP and intangible assets)
highly sensitive to changes in these assumptions.
The Group assesses at each reporting date
All assumptions are reviewed at each reporting
whether there is an indication that an asset may
date.
Provisions for Litigations and claims annual impairment testing for an asset is required,
the Group estimates that the assets’ recoverable
From time to time, the Group is subject to legal
amount. An assets’ recoverable amount is the
proceedings, the ultimate outcome of each being
higher of an asset’s fair value less costs of disposal
always subject to many uncertainties inherent in
and its value in use. The recoverable amount is
litigation. A provision for litigation is made when
determined for an individual asset unless the
it is considered probable that a payment will be
asset does not generate cashflows that are largely
made and the amount of the charge/ expense can
independent of those from other assets or group
be reasonably estimated. Significant judgement
of assets. Where the carrying amount of an asset
is made when evaluating, among other factors,
exceeds its recoverable amount, the asset is
the probability of unfavourable outcomes and
considered impaired and it is written down to its
the ability to make a reasonable estimate of the
recoverable amount. In assessing value in use, the
amount of potential loss. Litigation provisions
estimated future cashflows are discounted to their
are reviewed at each accounting period and
present value using a pre-tax discount rate that
revisions are made for the changes in facts and
reflects current market assessment of the time
circumstances. Contingent liabilities are disclosed
value of money and the risk specific to the asset. In
in the notes forming part of the consolidated
determining fair value less cost of disposal, recent
financial statements. Contingent assets are not
market transactions are taken in account. If no
disclosed in the consolidated financial statements
such transactions can be identified, an appropriate
unless an inflow of economic benefits is probable.
valuation model is used. These calculations are
Fair value measurement of financial instruments corroborated by valuation multiples, quoted share
price for publicly traded entities or other available
When the fair values of financial assets and fair value indicators.
financial liabilities recorded in the Balance Sheet
cannot be measured based on quoted prices in

2.2B Principles of consolidation and equity accounting contractual rights and obligations of each
investor, rather than the legal structure of the
(i) Subsidiaries
joint arrangement.
Subsidiaries are all entities (including
Joint Ventures
structured entities) over which the Group
has control. The group controls an entity Interests in joint ventures are accounted for using
when the Group is exposed to, or has rights the equity method (see (iv) below), after initially
to, variable returns from its involvement being recognised at cost in the consolidated
with the entity and has the ability to affect balance sheet.
those returns through its power to direct the
Equity method of accounting (equity accounted
relevant activities of the entity. Subsidiaries
investees)
are fully consolidated from the date on
which control is transferred to the Group. Under the equity method of accounting, the
They are deconsolidated from the date that investments are initially recognised at cost and
control ceases. The acquisition method of adjusted thereafter to recognise the Group’s share
accounting is used to account for business of the post-acquisition profits or losses of the
combinations by the Group. The Group investee in profit and loss, and the Group’s share
combines the financial statements of the of other comprehensive income of the investee in
parent and its subsidiaries line by line adding other comprehensive income. Dividends received
together like items of assets, liabilities, or receivable from associates and joint ventures
equity, income and expenses. Intercompany are recognised as a reduction in the carrying
transactions, balances and unrealised gains amount of the investment.
on transactions between group companies
are eliminated. Unrealised losses are also When the Group’s share of losses in an equity-
eliminated unless the transaction provides accounted investment equals or exceeds its
evidence of an impairment of the transferred interest in the entity, including any other unsecured
asset. Accounting policies of subsidiaries long-term receivables, the Group does not
have been changed where necessary to recognise further losses, unless it has incurred
ensure consistency with the policies adopted obligations or made payments on behalf of the
by the Group. Non-controlling interests in the other entity.
results and equity of subsidiaries are shown Unrealised gains on transactions between the
separately in the consolidated statement of Group and its associates and joint ventures are
profit and loss, consolidated statement of eliminated to the extent of the Group’s interest
changes in equity and consolidated balance in these entities. Unrealised losses are also
sheet respectively. eliminated unless the transaction provides
(ii) Associates evidence of an impairment of the asset transferred.
Accounting policies of equity accounted investees
Associates are all entities over which the have been changed where necessary to ensure
Group has significant influence but not consistency with the policies adopted by the
control or joint control. This is generally the Group. The carrying amount of equity accounted
case where the Group holds between 20% investments are tested for impairment.
and 50% of the voting rights. Investments
in associates are accounted for using the Changes in ownership interests:
equity method of accounting (see (iv) below), The Group treats transactions with non-controlling
after initially being recognised at cost. interests that do not result in a loss of control as
(iii) Joint Arrangements transactions with equity owners of the Group.
A change in ownership interest results in an
Under Ind AS 111 Joint Arrangements, adjustment between the carrying amounts of
investments in joint arrangements are the controlling and non-controlling interests to
classified as either joint operations or joint reflect their relative interests in the subsidiary. Any
ventures. The classification depends on the difference between the amount of the adjustment

to non-controlling interests and any consideration in other comprehensive income in respect of that
paid or received is recognised within equity. entity are accounted for as if the Group had directly
disposed of the related assets or liabilities. This
When the Group ceases to consolidate or equity
may mean that amounts previously recognised in
account for an investment because of a loss of
other comprehensive income are reclassified to
control, joint control or significant influence, any
profit or loss.
retained interest in the entity is remeasured to
its fair value with the change in carrying amount If the ownership interest in a joint venture or an
recognised in profit or loss. This fair value becomes associate is reduced but joint control or significant
the initial carrying amount for the purposes of influence is retained, only a proportionate share
subsequently accounting for the retained interest of the amounts previously recognised in other
as an associate, joint venture or financial asset. comprehensive income are reclassified to profit or
In addition, any amounts previously recognised loss where appropriate.
The details of consolidated entities are as follows:
Name of the Companies Country of Percentage of

incorporation ownership interest
1 Smartchem Technologies Limited (STL) India 100.00%

2 Deepak Nitrochem Pty Limited Australia 100.00%
3 Deepak Mining Services Private Limited (DMSPL) India 100.00%
4 Complete Mining Solution Private Limited (formerly known as Runge India 100.00%
PincockMinarco India Private Limited) (Subsidiary of DMSPL)
5 SCM Fertichem Limited India 100.00%
6 Platinum Blasting Services Pty Limited (PBS) [Subsidiary of STL] Australia 65.00%
7 Australian Mining Explosives Pty Limited (AME) [Subsidiary of PBS] Australia 65.00%
8 Performance Chemiserve Limited (formerly known as Performance India 88.91%
Chemiserve Private Limited) [Subsidiary of STL]
9 Ishanya Brand Services Limited India 100.00%
10 Mahadhan Farm Technologies Private Limited (Subsidiary of STL) India 100.00%
Goodwill on consolidation is measured as the excess of of equity attributable to non-controlling shareholders at

the sum of the consideration transferred, the amount of the date of acquisition.
NCI in the acquiree, and the fair value of the acquiror’s
2.3 Summary of significant accounting policies
previously held equity instruments in the acquiree (if any)
over the net of acquisition date fair value of identifiable (a) Current versus non-current classification
net assets acquired and liabilities assumed. Profit or
loss and each component of Other comprehensive The Group presents assets and liabilities in
income (OCI) are attributed to the equity holders of the the Balance Sheet based on current/ non-
Holding Company and to the NCI, even if this results in current classification.
the NCI having a deficit balance. An asset is treated as current when:
The results of subsidiaries acquired or disposed off  It is expected to be realised or intended
during the year are included in the consolidated financial to be sold or consumed in the normal
statements from the effective date of acquisition and operating cycle;
upto the effective date of disposal, as appropriate.
 It is held primarily for the purpose of
Non-controlling interests (NCI) in the net assets of the trading;
subsidiaries that are consolidated consist of the amount


It is expected to be realised recognizing the revenue is determined by
within twelve months after the the five-stage model specified in Ind AS 115
reporting period; or “Revenue from contracts with customers”.
 It is a cash or cash equivalent Sale of Goods:

unless restricted from being
Revenue is recognised upon transfer of
exchanged or used to settle
control of promised goods to customers for
a liability for at least twelve
an amount that reflects the consideration
months after the reporting
which the Group expects to receive in
period.
exchange for those goods. Revenue from
The Group classifies all other assets the sale of goods is recognised at the point
as non-current. in time when control is transferred to the
customer which is usually on dispatch/
A liability is current when:
delivery of goods, based on contracts
 It is expected to be settled in with the customers. Revenue is measured
normal operating cycle; based on the transaction price, which is
the consideration, adjusted for volume

It is held primarily for the discounts, price concessions, incentives,
purpose of trading; and returns, if any, as specified in the

It is due to be settled within contracts with the customers. Revenue
twelve months after the excludes taxes collected from customers
reporting period; or on behalf of the government. Accruals
for discounts/incentives and returns are
 There is no unconditional right estimated (using the most likely method)
to defer the settlement of based on accumulated experience and
the liability for at least twelve underlying schemes and agreements with
months after the reporting customers. Due to the short nature of
period. credit period given to customers, there is no
financing component in the contract.
The Group classifies all other liabilities as non-
current. Sale of Services:
Deferred tax assets and liabilities are classified as Sale of services are recognised on
non-current assets and liabilities respectively. satisfaction of performance obligation
towards rendering of such services.
The operating cycle is the time between the
acquisition of assets for processing and their Interest Income:
realisation in cash and cash equivalents. The
Group has identified twelve months as its Interest Income from a financial asset is
operating cycle for the purpose of current and recognised when it is probable that the
non-current classification of assets and liabilities. economic benefits will flow to the Group
and the amount of income can be measured
(b) Revenue recognition reliably. Interest income is accrued on a
time basis, by reference to the principal
Revenue from contracts with customers is
outstanding and at the effective interest
recognised when control of the goods or
rate applicable.
services are transferred to the customer
i.e. when the customer is able to direct the Dividend Income:
use of the transferred goods or rendering of
services and obtains substantially all of the Dividend income from investments in
remaining benefits at an amount that reflects shares is recognised when the owner’s right
the consideration entitled in exchange to receive the payment is established.
for those goods or services. The policy of

(c) Property, plant and equipment an item of property, plant and equipment
are determined by comparing the proceeds
An item of property, plant and equipment
from disposal with the carrying amount
(‘PPE’) is recognised as an asset if it is
of property, plant and equipment, and are
probable that the future economic benefits
recognised within other income/expenses
associated with the item will flow to the
in the statement of profit and loss.
Group and its cost can be measured reliably.
These recognition principles are applied to PPE acquired and put to use for projects
the costs incurred initially to acquire an are capitalised and depreciation thereon is
item of PPE, to the pre-operative and trial included in the project cost till the project
run costs incurred (net of sales), if any and is ready for commissioning. Depreciation
also to the costs incurred subsequently on PPE (except leasehold improvements)
to add to, replace part of, or service it is calculated using the straight-line method
and subsequently carried at cost less to allocate their cost, net of their residual
accumulated depreciation and accumulated values, over their estimated useful lives.
impairment losses, if any. However, leasehold improvements are
depreciated on a straight-line method over
The cost of PPE includes interest on
the shorter of their respective useful lives
borrowings directly attributable to the
or the tenure of the lease arrangement.
acquisition, construction or production of
Freehold land is not depreciated. Schedule
a qualifying asset. A qualifying asset is an
II to the Act prescribes the useful lives for
asset that necessarily takes a substantial
various class of assets. For certain class of
period of time to be made ready for its
assets, based on technical evaluation and
intended use or sale. Borrowing costs and
assessment, Management believes that the
other directly attributable cost are added to
useful lives adopted by it reflect the periods
the cost of those assets until such time as
over which these assets are expected to
the assets are substantially ready for their
be used. Accordingly, for those assets, the
intended use, which generally coincides with
useful lives estimated by the management
the commissioning date of those assets.
are different from those prescribed in the
The present value of the expected cost for Schedule. Management’s estimates of the
the decommissioning of an asset after its useful lives for various class of PPE are as
use is included in the cost of the respective given below:
asset if the recognition criteria for a Name of assets Estimated useful life (in
provision is met. Machinery spares that years)
meet the definition of PPE are capitalised Computers – Servers and 3–6
and depreciated over the useful life of Networks
the principal item of an asset. All other End User Devices such as 3–6
repair and maintenance costs, including desktops and laptops
regular servicing, are recognised in the
Vehicles 4–7
consolidated Statement of Profit and Loss
Buildings (other than factory 61
as incurred. When a replacement occurs,
buildings) with RCC frame
the carrying value of the replaced part is
structure
de-recognised. Where an item of property,
plant and equipment comprises major Plant and equipment Various estimated lives
components having different useful lives, including office and laboratory upto 25 years. WNA
these components are accounted for as equipments III plant is depreciated
separate items. at 25.88% on the WDV
method
An item of property, plant and equipment Windmill 19
is derecognized upon disposal or when no Plant & machinery used for 40
future benefits are expected from its use or generation of power through
disposal. Gains and losses on disposal of gas

Capital work in progress (CWIP) Goodwill is allocated to cash-generating
units for the purpose of impairment
Projects under commissioning and other
testing. The allocation is made to those
CWIP are carried at cost, comprising direct
cash-generating units or groups of cash-
cost, related incidental expenses and
generating units that are expected to benefit
attributable borrowing cost. Subsequent
from the business combination in which
expenditures relating to property, plant
the goodwill arose. The units or groups of
and equipment are capitalised only when
units are identified at the lowest level at
it is probable that future economic benefit
which goodwill is monitored for internal
associated with these will flow to the Group
management purposes, which in our case
and the cost of the item can be measured
are the operating segments.
reliably. Advances given to acquire property,
plant and equipment are recorded as non- Name of intangible assets Estimated useful life (in
current assets and subsequently transferred years)
to CWIP on acquisition of related assets.
Computer software 3 to 8
(d) Intangible assets License fees 3 to 8
Intangible assets are initially recognized at Technical know-how/ 3 to 8
cost. Following initial recognition, intangible engineering fees
assets with finite useful life are carried at (e) Bearer plant
cost less any accumulated amortization and
accumulated impairment losses. Internally Bearer plants are living plants used in the
generated intangibles, excluding capitalized production or supply of agricultural produce;
development costs, are not capitalized and are expected to bear produce for more than
the related expenditure is reflected in the one period; and have a remote likelihood of
consolidated Statement of Profit and Loss being sold as agricultural produce, except for
in the period in which the expenditure is incidental scrap sales. Bearer plants mainly
incurred. include mature and immature pomegranate
plantations. Immature plantations are
The amortization period and the stated at acquisition cost which includes
amortization method for an intangible costs incurred for field preparation,
asset with a finite useful life is reviewed at planting, fertilising and maintenance, and
least at the end of each reporting period. an allocation of other indirect costs based
Gains or losses arising from de-recognition on planted hectares.
of an intangible asset are measured as
the difference between the net disposal Mature plantations are stated at acquisition
proceeds and the carrying amount of the cost less accumulated depreciation
asset and are recognized in the consolidated and impairment. Mature plantations are
Statement of Profit and Loss when the asset depreciated on a straight-line basis and over
is derecognized. its estimated useful life of 6 years, upon
commencement of commercial production.
Goodwill
The carrying values of bearer plants are
Goodwill on acquisitions of subsidiaries is reviewed for impairment when events or
included in intangible assets. Goodwill is changes in circumstances indicate that the
not amortised but it is tested for impairment carrying value may not be recoverable. The
annually, or more frequently if events or residual values, useful life and depreciation
changes in circumstances indicate that it method are reviewed at each financial year
might be impaired, and is carried at cost less end to ensure that the amount, method
accumulated impairment losses. Gains and and period of depreciation are consistent
losses on the disposal of an entity include with previous estimates and the expected
the carrying amount of goodwill relating to pattern of consumption of the future
the entity sold.

economic benefits. A bearer plant is The effects of any revision are included in
derecognised upon disposal or when no the consolidated Statement of Profit and
future economic benefits are expected Loss when the changes arise.
from its use or disposal. Any gain or loss
An investment property is de-recognised
arising on derecognition of the bearer plant
when either the investment property has
is included in the income statement in the
been disposed of or do not meet the
year the bearer plant is derecognized.
criteria of investment property i.e. when
(f) Borrowing costs the investment property is permanently
withdrawn from use and no future economic
Borrowing costs that are directly
benefit is expected from its disposal.
attributable to the acquisition, construction
The difference between the net disposal
or production of an asset, that necessarily
proceeds and the carrying amount of the
takes a substantial period of time to get
asset is recognised in the consolidated
ready for its intended use, are capitalised
Statement of Profit and Loss in the period
as a part of the cost of the asset. All
of de-recognition.
other borrowing costs are expensed in
the period in which they occur. Borrowing (h) Non-current assets held for sale
costs consist of interest and other costs
Non-current assets are classified as
that an entity incurs in connection with
held for sale if their carrying amount will
the borrowing of funds. Borrowing cost
be recovered principally through a sale
also includes exchange differences to the
transaction rather than through continuing
extent regarded as an adjustment to the
use and a sale is considered highly
borrowing costs. Investment income earned
probable. Non-current assets classified as
on the temporary investment of specific
held for sale are measured at lower of their
borrowings is deducted from the borrowing
carrying amount and fair value less cost to
costs eligible for capitalisation.
sell. Non-current assets classified as held
(g) Investment property for sale are not depreciated or amortised
from the date when they are classified as
Investment properties are land and buildings
held for sale. Non-current assets classified
that are held for long term lease rental yields
as held for sale are presented separately
and/ or for capital appreciation. Investment
from the other assets and liabilities in the
properties are initially recognised at cost
consolidated balance sheet.
including transaction costs. Subsequently
investment properties comprising buildings (i) Foreign currency transactions and balances
are carried at cost less accumulated
The functional currency of the Group (i.e.
depreciation and accumulated impairment
the currency of the primary economic
losses, if any. Subsequent expenditure is
environment in which the Group operates) is
capitalised to the asset’s carrying amount
the Indian Rupee (`). On initial recognition,
only when it is probable that future economic
all foreign currency transactions are
benefits associated with expenditure will
recorded at exchange rates prevailing on
flow to the Group and the cost of the item
the date of the transaction. Monetary assets
can be measured reliably. All other repairs
and liabilities, denominated in a foreign
and maintenance costs are expensed when
currency, are translated at the exchange rate
incurred.
prevailing on the Balance Sheet date and
Depreciation on buildings is provided over the resultant exchange gains or losses are
the estimated useful lives as specified recognised in the consolidated Statement
in note (c) above. The residual values of Profit and Loss. Non-monetary items,
estimated useful lives and depreciation which are measured in terms of historical
method of investment properties are cost denominated in a foreign currency, are
reviewed, and adjusted on prospective reported using the exchange rate at the date
basis as appropriate, at each reporting date. of the transaction.

Foreign operations by regulation or convention in the market
place (regular way trades) are recognised on
Assets and liabilities of entities with functional the trade date, i.e., the date that the Group
currencies other than presentation currency have commits to purchase or sell the asset.
been translated to the presentation currency using
exchange rates prevailing on the Balance Sheet Subsequent measurement
date. The Statement of Profit and Loss has been
For purposes of subsequent measurement,
translated using the average exchange rates. The
financial assets are classified in four
net impact of such translation are recognised
categories:
in OCI and held in foreign currency translation
reserve (‘FCTR’), a component of Equity.  Debt instruments at amortised cost
On the disposal of a foreign operation (i.e. a  Debt instruments at fair value through
disposal of the Group’s entire interest in a foreign other comprehensive income (FVOCI)
operation, a disposal involving loss of control, 
Debt instruments, derivatives and
over a subsidiary that includes a foreign operation, equity instruments at fair value
or a partial disposal of an interest in a joint through profit or loss (FVPL)
arrangement that includes a foreign operation of
 Equity instruments measured at fair
which the retained interest becomes a financial
value through other comprehensive
asset), the exchange differences accumulated
income (FVOCI)
in equity in respect of that operation attributable
to the owners of the Group are reclassified to the Debt instruments at amortised cost
consolidated Statement of Profit and Loss as part
A ‘debt instrument’ is measured at the
of the gain or loss on disposal.
amortised cost if both the following
In case of a partial disposal of interests in a conditions are met:
subsidiary that includes a foreign operation a) The asset is held within a business
that does not result in the Group losing control model whose objective is to hold
over the subsidiary, the proportionate share assets for collecting contractual cash
of accumulated exchange differences are re- flows; and
attributed to NCI and are not recognised in the
consolidated Statement of Profit and Loss. For b) Contractual terms of the asset give
all other partial disposal (i.e. partial disposals of rise on specified dates to cash
joint arrangements that do not result in the Group flows that are solely payments of
losing significant influence or joint control), the principal and interest (SPPI) on the
proportionate share of the accumulated exchange principal amount outstanding. After
differences is reclassified to the consolidated initial measurement, such financial
Statement of Profit and Loss. assets are subsequently measured
at amortised cost using the effective
(j) Financial instruments interest rate (EIR) method. Amortised
cost is calculated by taking into
A Financial instrument is any contract that
account any discount or premium
gives rise to a financial asset of one entity
on acquisition and fees or costs that
and a financial liability or equity instrument
are an integral part of the EIR. The
of another entity.
EIR amortisation is included in other
Financial assets: Initial recognition and income in the consolidated Statement
measurement of Profit and Loss. The losses arising
from impairment are recognised in the
All financial assets are recognised initially at consolidated Statement of Profit and
fair value plus, in the case of financial assets Loss. This category generally applies
not recorded at fair value through profit or to trade and other receivables.
loss, transaction costs that are attributable
to the acquisition of the financial asset. Debt instrument at FVOCI
Purchases or sales of financial assets that A ‘debt instrument’ is classified as at the
require delivery of assets within a time FVOCI if both of the following criteria are
frame established met:

a) The objective of the business model dividends, are recognised in the OCI. There
is achieved both by collecting is no recycling of the amounts from OCI to
contractual cash flows and selling the the consolidated Statement of Profit and
financial assets; and Loss, even on sale of investment. However,
the Group may transfer the cumulative gain
b) The asset’s contractual cash flows or loss within equity. Equity instruments
represent SPPI. Debt instruments included within the FVPL category are
included within the FVOCI category measured at fair value with all changes
are measured initially as well as at recognised in the consolidated Statement
each reporting date at fair value. Fair of Profit and Loss.
value movements are recognised
in the other comprehensive income Impairment of financial assets
(OCI). On derecognition of the asset,
cumulative gain or loss previously The Group recognizes loss allowance using
recognized in OCI is reclassified to the the expected credit loss (ECL) model for the
consolidated Statement of Profit and financial assets which are not fair valued
Loss. Interest earned whilst holding through profit or loss. Loss allowance
FVTOCI debt instrument is reported as for trade receivables with no significant
interest income using the EIR method. financing component is measured at an
amount equal to lifetime ECL. For all financial
Debt instrument at FVPL assets with contractual cash flows other
than trade receivable, ECLs are measured
FVPL is a residual category for debt at an amount equal to the 12-month ECL,
instruments. Any debt instrument, which unless there has been a significant increase
does not meet the criteria for categorisation in credit risk from initial recognition in which
as at amortised cost or as FVOCI, is case those are measured at lifetime ECL.
classified as at FVPL. In addition, the Group The amount of ECLs (or reversal) that is
may elect to designate a debt instrument, required to adjust the loss allowance at the
which otherwise meets amortised cost or reporting date to the amount that is required
FVOCI criteria, as at FVPL. However, such to be recognised as an impairment gain or
election is allowed only if doing so reduces loss in the consolidated Statement of Profit
or eliminates a measurement or recognition and Loss.
inconsistency (referred to as ‘accounting
mismatch’). Debt instruments included Derecognition
within the FVPL category are measured at
fair value with all changes recognised in the A financial asset (or, where applicable, a
consolidated Statement of Profit and Loss. part of a financial asset or part of a group
of similar financial assets) is primarily
Equity investments derecognized (i.e., removed from the Group
balance sheet) when:
All equity investments in scope of Ind AS
109 are measured at fair value. Equity  The rights to receive cash flows from
instruments which are held for trading and the asset have expired, or
contingent consideration recognised by an
acquirer in a business combination to which  The Group has transferred its rights
Ind AS 103 applies are classified as at FVPL. to receive cash flows from the asset
For all other equity instruments, the Group or has assumed an obligation to pay
may make an irrevocable election to present the received cash flows in full without
in other comprehensive income subsequent material delay to a third party under
changes in the fair value. The Group a ‘pass-through’ arrangement and
makes such election on an instrument by- either (a) the Group has transferred
instrument basis. The classification is made substantially all the risks and rewards
on initial recognition and is irrevocable. of the asset, or (b) the Group has
If the Group decides to classify an equity neither transferred nor retained
instrument as at FVOCI, then all fair value substantially all the risks and rewards
changes on the instrument, excluding of the asset, but has transferred
control of the asset.

When the Group has transferred its rights services and amortised over the period of
to receive cash flows from an asset or has the facility to which it relates.
entered into a pass-through arrangement,
it evaluates if and to what extent it has Derecognition
retained the risks and rewards of ownership. A financial liability is derecognised when the
When it has neither transferred nor retained obligation under the liability is discharged
substantially all of the risks and rewards or cancelled or expires. When an existing
of the asset, nor transferred control of the financial liability is replaced by another from
asset, the Group continues to recognise the same lender on substantially different
the transferred asset to the extent of the terms, or the terms of an existing liability are
Group continuing involvement. In that case, substantially modified, such an exchange or
the Group also recognises an associated modification is treated as the derecognition
liability. The transferred asset and the of the original liability and the recognition
associated liability are measured on a basis of a new liability. The difference in the
that reflects the rights and obligations that respective carrying amounts is recognised
the Group has retained. in the consolidated Statement of Profit and
Financial liabilities Loss.
Financial liabilities are classified and Derivative financial instruments

measured at amortised cost or FVPL. A The Group uses various types of
financial liability is classified as at FVPL derivative financial instruments to hedge
if it is classified as held‑for‑trading, or it is its currency and interest risk etc. Such
a derivative or it is designated as such on derivative financial instruments are initially
initial recognition. Financial liabilities at recognised at fair value on the date on
FVPL are measured at fair value and net which a derivative contract is entered into
gains and losses, including any interest and are subsequently re-measured at fair
expense, are recognised in Statement of value. Derivatives are carried as financial
Profit and Loss. Other financial liabilities are assets when the fair value is positive and
subsequently measured at amortised cost as financial liabilities when the fair value is
using the effective interest method. Interest negative.
expense and foreign exchange gains and
losses are recognised in consolidated Offsetting
Statement of Profit and Loss. Any gain or
Financial assets and financial liabilities
loss on derecognition is also recognized in
are offset and the net amount presented in
consolidated Statement of Profit and Loss.
the consolidated Balance Sheet when, and
Borrowings only when, the Group currently has a legally
enforceable right to set off the amounts and
Borrowings are initially recognised at fair it intends either to settle them on a net basis
value, net of transaction costs incurred. or to realise the asset and settle the liability
Borrowings are subsequently measured at simultaneously.
amortised cost. Any difference between the
proceeds (net of transaction costs) and the Financial guarantee contracts
redemption amount is recognised in profit
Financial guarantee contracts are
or loss over the period of the borrowings
recognised as a financial liability at the
using the effective interest method. Fees
time of issuance of guarantee. The liability
paid on the establishment of loan facilities
is initially measured at fair value and is
are recognised as transaction costs of the
subsequently measured at the higher of
loan to the extent that it is probable that
the amount of loss allowance determined,
some or all of the facility will be drawn
or the amount initially recognised less, the
down. In this case, the fee is deferred until
cumulative amount of income recognised.
the drawdown occurs. To the extent there is
no evidence that it is probable that some or Fair value of financial instruments
all of the facility will be drawn down, the fee
is capitalised as a prepayment for liquidity In determining the fair value of its financial

instruments, the Group uses a variety of date, discounted using the interest rate
methods and assumptions that are based implicit in the lease or, if that rate cannot be
on market conditions and risks existing at readily determined, the Group incremental
each reporting date. The methods used to borrowing rate. For leases with reasonably
determine fair value include discounted similar characteristics, the Group, on a
cash flow analysis, available quoted market lease by lease basis, may adopt either the
prices and dealer quotes. All methods incremental borrowing rate specific to the
of assessing fair value result in general lease or the incremental borrowing rate for
approximation of value. the portfolio as a whole. Lease payments
included in the measurement of the lease
(k) Leases
liability comprise the fixed payments,
The Group assesses whether a contract including in-substance fixed payments and
contains a lease, at inception of a contract. lease payments in an optional renewal
A contract is, or contains, a lease if the period if the Group is reasonably certain to
contract conveys the right to control the exercise an extension option.
use of an identified asset for a define period
The lease liability is measured at amortised
of time in exchange for consideration. To
cost using the effective interest method.
assess whether a contract conveys the right
The Group has elected not to recognise
to control the use of an identified assets,
right of use assets and lease liabilities for
the Group assesses whether: (i) the contact
short-term leases that have a lease term of
involves the use of an identified asset (ii) the
12 months or less and leases of low-value
Group has substantially all of the economic
assets. The Group recognises the lease
benefits from use of the asset through the
payments associated with these leases as
period of the lease and (iii) the Group has
an expense on a straight-line basis over
the right to direct the use of the asset.
the lease term. The Group has applied a
As a lessee, the Group recognises a right of single discount rate to a portfolio of leases
use asset and a lease liability at the lease of similar assets in similar economic
commencement date. The right of use environment with a similar end date.
asset is initially measured at cost, which
The determination of whether an
comprises the initial amount of the lease
arrangement is (or contains) a lease is based
liability adjusted for any lease payments
on the substance of the arrangement at the
made at or before the commencement
inception of the lease. The arrangement
date, plus any initial direct costs incurred
is, or contains, a lease if fulfilment of the
and an estimate of costs to dismantle and
arrangement is dependent on the use of a
remove the underlying asset or to restore
specific asset or assets and the arangement
the underlying asset or the site on which it is
conveys a right to use the asset or assets,
located, less any lease incentives received.
even if that right is not explicitly specified in
The right of use asset is subsequently
an arrangement.
depreciated using the straight-line method
from the commencement date to the earlier (l) Inventories
of the end of the useful life of the right of
use asset or the end of the lease term. The Cost of raw materials, traded goods, packing
estimated useful lives of right of use assets materials and stores and spares comprises
are determined on the same basis as those cost of purchases and cost of finished
of property and equipment. In addition, the goods comprises direct materials, direct
right of use asset is periodically reduced labour and an appropriate proportion of
by impairment losses, if any, and adjusted variable and fixed overhead expenditure, the
for certain remeasurements of the lease latter being allocated on the basis of normal
liability. operating capacity. Cost of inventories also
include all other costs incurred in bringing
The lease liability is initially measured at the inventories to their present location and
the present value of the lease payments condition. Costs of purchased inventory are
that are not paid at the commencement determined after deducting rebates and
discounts.

 Raw materials, packing materials and such transactions can be identified, an
stores and spares are valued at the appropriate valuation model is used. These
lower of cost and net realisable value. calculations are corroborated by valuation
Cost is determined on the basis of multiples, quoted share price for publicly
moving weighted average method. traded entities or other available fair value
The aforesaid items are valued indicators. For assets excluding goodwill, an
below cost if the finished products in assessment is made at each reporting date
which they are to be incorporated are to determine whether there is an indication
expected to be sold at a loss. that previously recognised impairment loss
no longer exist or has decreased. If such

Finished goods and by-products indication exists, the Group estimates the
including those held for captive assets’ or CGU’s recoverable amount. A
consumption are valued at the lower previously recognised impairment loss is
of cost and net realisable value. Cost reversed only if there has been a change
is determined on actual cost basis. in the assumptions used to determine
Cost of finished goods includes taxes the assets’ recoverable amount, since
and duties, as applicable. Variances, the last impairment loss was recognised.
exclusive of abnormally low volume The reversal is limited so that the carrying
and operating performance, are amount of the asset does not exceed its
adjusted to inventory. Stock-in-trade recoverable amount, nor exceed the carrying
is valued at lower of cost and net amount that would have been determined,
realisable value. net of depreciation, had no impairment
 Net realizable value is the estimated loss been recognised for the asset in prior
selling price in the ordinary course years. Such reversal is recognised in the
of business, less estimated costs of consolidated Statement of Profit and Loss.
completion and the estimated costs (n) Provisions
necessary to make the sale.
Provisions are recognised when the
(m) Impairment of non-financial assets Group has a present obligation (legal or
The Group assesses at each reporting date, constructive), as a result of a past event,
whether there is an indication that an asset it is probable that an outflow of resources
may be impaired. If any indication exists, or embodying economic benefits will be
when annual impairment testing for an asset required to settle the obligation and a reliable
is required, the Group estimates the assets’ estimate can be made of the amount of the
recoverable amount. An assets’ recoverable obligation.
amount is the higher of an asset’s fair value When the Group expects some or all
less costs of disposal and its value in use. of a provision to be reimbursed, for
The recoverable amount is determined for example, under an insurancecontract, the
an individual asset unless the asset does reimbursement is recognized as a separate
not generate cashflows that are largely asset, but only when the reimbursement is
independent of those from other assets or virtually certain. The expense relating to a
group of assets. Where the carrying amount provision is presented in the consolidated
of an asset exceeds its recoverable amount, Statement of Profit and Loss. net of any
the asset is considered impaired and it is reimbursements.
written down to its recoverable amount.
If the effect of time value of money is
In assessing value in use, the estimated material, provisions are discounted using
future cashflows are discounted to their a current pre-tax rate that reflects, when
present value using a pre-tax discount rate appropriate, the risks specific to the liability.
that reflects current market assessment When discounting is used, the increase in
of the time value of money and the risk the provision due to the passage of time
specific to the asset. In determining fair is recognized as a finance cost. Provisions
value less cost of disposal, recent market are reviewed at each balance sheet date
transactions are taken in account. If no

and are adjusted to reflect the current best periods. Changes in the present value of
estimates. the defined benefit obligation resulting
from plan amendments or curtailments are
(o) Employee benefits recognised immediately in the consolidated
Employee benefits consist of provident Statement of Profit and Loss as past service
fund, superannuation fund, gratuity fund, cost.
compensated absences, long service Short-term employee benefits
awards, post-retirement medical benefits,
directors’ retirement obligations and family The short-term employee benefits expected
benefit scheme. to be paid in exchange for the services
rendered by employees is recognised
Post-employment benefit plans during the period when the employee
Defined contribution plans renders the service. These benefits include
compensated absences such as paid
Payments to a defined contribution annual leave and performance incentives
retirement benefit scheme for eligible which are expected to occur within twelve
employees in the form of provident fund months after the end of the period in which
and superannuation fund are charged as an the employee renders the related services.
expense as they fall due. Such benefits are
classified as Defined Contribution Schemes The cost of compensated absences is
as the Group does not carry any further accounted as under:
obligations, apart from the contributions (a) In case of accumulating compensated
made. absences, when employees render
Defined benefit plans service that increase their entitlement
of future compensated absences; and
For defined benefit schemes in the form of
gratuity fund, the cost of providing benefits (b)
In case of non - accumulating
is actuarially determined using the projected compensated absence, when the
unit credit method, with actuarial valuations absences occur.
being carried out at each Balance Sheet Other long-term employee benefits
date. The retirement benefit obligation
recognised in the consolidated balance Compensated absences which are not
sheet represents the present value of the expected to occur within twelve months after
defined benefit obligation as reduced by the the end of the period in which the employee
fair value of scheme assets. The present renders the related services are recognised
value of the said obligation is determined as a liability. The cost of providing benefits
by discounting the estimated future cash is actuarially determined using the projected
outflows, using market yields of government unit credit method, with actuarial valuations
bonds of equivalent term and currency to being carried out at each Balance Sheet
the liability. The interest income / (expense) date. Long Service Awards are recognised
are calculated by applying the discount rate as a liability at the present value of the
to the net defined benefit liability or asset. obligation at the Balance Sheet date. All
gains/losses due to actuarial valuations are
The net interest income / (expense) on the immediately recognised in the consolidated
net defined benefit liability is recognised Statement of Profit and Loss.
in the consolidated Statement of Profit
and Loss. Remeasurements, comprising (p) Derivative financial instruments
of actuarial gains and losses, the effect of
the asset ceiling (if any), are recognised The Group uses derivative financial
immediately in the consolidated Balance instruments such as forward currency
Sheet with a corresponding charge or credit contracts and interest rate swaps to hedge
to retained earnings through OCI in the its foreign currency risks and interest rate
period in which they occur. Remeasurements risks respectively. Such derivative financial
are not reclassified to the consolidated instruments are initially recognised at fair
Statement of Profit and Loss in subsequent value on the date on which the derivative

contract is entered into and are subsequently (q) Cash and cash equivalents
re-measured at fair value at the end of
each reporting period. The accounting for Cash and cash equivalents in the balance
subsequent changes in fair value depends sheet comprise cash at banks and on hand
on whether the derivative is designated as a and short-term deposits with an original
hedging instrument, and if so, the nature of maturity of three months or less, which are
the item being hedged and the type of hedge subject to an insignificant risk of changes in
relationship which is designated. value.
Cash flow hedges that qualify for hedge For the purpose of the statement of cash
accounting: The effective portion of changes flows, cash and cash equivalents consist
in the fair value of derivatives that are of cash and short-term deposits, as defined
designated and qualify as cash flow hedges above.
is recognised in ‘other comprehensive (r) Cash dividend
income’ in cash flow hedging reserve within
equity, limited to the cumulative change in The Group recognizes a liability to make
fair value of the hedged item on a present cash distributions to equity shareholders
value basis from the inception of the hedge. when the distribution is authorized and the
The gain or loss relating to the ineffective distribution is no longer at the discretion
portion is recognised immediately in the of the Group. As per the corporate laws in
consolidated Statement of Profit and India, a distribution is authorized when it is
Loss. Amounts accumulated in equity are approved by the shareholders of the Group.
reclassified to the consolidated Statement
(s) Income taxes
of Profit and Loss in the periods in which the
hedged item affects the profit or loss. Current income tax assets and liabilities
are measured at the amounts expected to
If the hedging relationship no longer meets
be recovered from or paid to the taxation
the criteria for hedge accounting, then hedge
authorities in accordance with the Income
accounting is discontinued prospectively. If
Tax Act, 1961. The tax rates and tax laws
the hedging instrument expires or is sold,
used to compute the amounts are those that
terminated or exercised, the cumulative
are enacted or substantively enacted at the
gain or loss on the hedging instrument
reporting date.
recognised in cash flow hedging reserve
till the period the hedge was effective Current income tax relating to items
remains in cash flow hedging reserve recognized outside profit and loss is
until the underlying transaction occurs. recognized outside profit and loss (either
The cumulative gain or loss previously in other comprehensive income or in
recognised in the cash flow hedging reserve equity). Current tax items are recognized
is transferred to the Statement of Profit and in correlation to the underlying transaction
Loss upon the occurrence of the underlying either in OCI or directly in equity. Management
transaction. If the forecasted transaction periodically evaluates positions taken in
is no longer expected to occur, then the the tax returns with respect to situations in
amount accumulated in cash flow hedging which applicable tax regulations are subject
reserve is reclassified in the Statement of to interpretation and establishes provisions
Profit and Loss. where appropriate.
Derivatives that are not designated as Deferred income tax is provided using the
hedges: The Group enters into certain liability method on temporary differences
derivative contracts to hedge foreign between the tax bases of assets and
exchange risks which are not designated liabilities and their carrying amounts for
as hedges. Such derivative contracts are financial reporting purposes at the reporting
accounted for at each reporting date at fair date. Deferred tax liabilities are recognized
value through the consolidated Statement of for all taxable temporary differences except
Profit and Loss. when the deferred tax liability arises from

the initial recognition of goodwill or an (t) Earnings per share
asset or liability in a transaction that is not a
business combination and at the time of the Basic earnings per share is calculated by
transaction, affects neither the accounting dividing the net profit or loss for the period
profit nor taxable profit or loss; or in attributable to the equity shareholders by
respect of taxable temporary differences the weighted average number of equity
associated with investment in subsidiaries, shares outstanding during the period. For
associates and interests in joint ventures, the purposes of calculating diluted earnings
when the timing of the reversal of temporary per share, the net profit for the period
differences can be controlled and it is attributable to equity shareholders and the
probable that the temporary differences will weighted average number of equity shares
not reverse in the foreseeable future. outstanding during the period are adjusted
for the effects of all dilutive potential equity
Deferred tax assets on deductible temporary shares.
differences, the carry forward of unused
tax credits and any unused tax losses (u) Segment reporting
are recognized to the extent that there is Based on the “Management approach” as
reasonably certainty that taxable profits will defined in Ind AS 108: Operating Segments,
be available against which the deductible the Chief Operating Decision Maker
temporary differences and the carry forward evaluates the Group performance and
of unused tax credits and tax losses can allocates resources based on an analysis
be utilized, except when the deferred tax of various performance indicators by
asset relating to the deductible temporary business segments. Inter-segment sales
difference arises from the initial recognition and transfers are reflected at market prices.
of an asset or liability in a transaction that
is not a business combination and at the Segment policies
time of the transaction, affects neither the
The Group prepares its segment information
accounting profit nor taxable profit or loss.
in conformity with the accounting policies
The carrying amount of deferred tax assets adopted for preparing and presenting
is reviewed at each reporting period and is the consolidated financial statements
reduced to the extent that it is no longer as a whole. Common allocable costs
probable that sufficient taxable profits will be are allocated to each segment on an
available to allow all or part of the deferred appropriate basis. Revenues, expenses,
tax asset to be utilized. Unrecognised assets and liabilities, which are common
deferred tax assets are re-assessed at to the enterprise as a whole and are not
each reporting date and are recognized to allocable to segments on a reasonable
the extent that it has become reasonably basis, have been treated as “unallocated
certain that future taxable profits will allow revenues/expenses/ assets/ liabilities”, as
the deferred tax asset to be recovered. the case may be.
Deferred tax assets and liabilities are (v) Business combinations

measured at the tax rates that are expected
The Group accounts for its business
to apply in the year when the asset or liability
combinations under acquisition method of
is settled based on tax rates and tax laws
accounting. Acquisition related costs are
that have been enacted or substantively
recognised in the consolidated statement
enacted at the reporting date. Deferred
of profit and loss, as incurred. The
tax relating to items recognized outside
acquiree’s indentifiable assets, liabilities
profit and loss is recognized outside profit
and contingent liabilities that meet the
and loss (either in other comprehensive
condition for recognition are recognised
income or in equity). Deferred tax items are
at their fair values at the acquisition date
recognized in correlation to the underlying
except deferred tax assets or liabilities and
transaction either in OCI or directly in equity.
assets or liabilities related to employee
benefit arrangements, which are recognised
and measured in accordance with Ind AS

12 Income taxes and Ind AS 19 Employee with the corresponding gain or loss being
benefits. recognised in consolidated statement of
profit and loss.
Goodwill is measured as the excess of the
sum of the consideration transferred, the When a business combination is achieved
amount of NCI in the acquiree and the fair in stages, the Group’s previously held equity
value of acquirer’s previously held equity interest in the acquiree is remeasured
instrument in the acquire (if any) over the net to its acquisition-date fair value and the
of acquisition date fair value of identifiable resulting gain or loss, if any, is recognised
net assets acquired and liabilities assumed. in consolidated Statement of Profit and
Where the fair values of identifiable assets Loss. Amounts arising from interests in the
and liabilities exceed the cost of acquisition, acquiree prior to the acquisition date that
after reassessing the fair values of the net have previously been recognised in other
assets and contingent liabilities, the excess comprehensive income are reclassified to
is recognised as capital reserve. consolidated Statement of Profit and Loss
where such treatment would be appropriate
The interest of non-controlling shareholders
if that interest were disposed off.
is initially measured either at fair value
or at the NCI’s proportionate share of the If the initial accounting for a business
acquiree’s identifiable net assets. The combination is incomplete by the end of the
choice of measurement basis is made on reporting period in which the combination
an acquisition by acquisition basis. occurs, the Group reports provisional amount
for the items for which the accounting is
When the consideration transferred by the
incomplete. Those provisional amount
Group in a business combination includes
are adjusted during the measurement
assets or liabilities resulting in a contingent
period, or additional assets or liabilities
consideration arrangement, such contingent
are recognised, to reflect new information
consideration, on the acquisition date is
obtained about facts and circumstances
measured at fair value and included as
that existed at the acquisition date that, if
a part of the consideration transferred in
known, would have affected the amount
a business combination. Changes in the
recognised at that date.
fair value of the contingent consideration
that qualify as measurement period Changes in the proportion of the equity
adjustments, are adjusted retrospectively, held by NCI are accounted for as equity
with corresponding adjustments against transactions. The carrying amount of the
goodwill or capital reserve as the case controlling interests and NCI are adjusted to
may be. Measurement period adjustments reflect the changes in their relative interests
are adjustments that arise from additional in the subsidiaries. Any difference between
information during the ‘measurement the amount by which the NCI are adjusted
period’ (which cannot exceed one year and the fair value of the consideration paid
from the acquisition date) about facts or received is recognised directly in equity
and circumstances that existed at the and attributed to owners of the Group.
acquisition date.
The Group accounts for the common
The subsequent accounting for changes in control transactions in accordance with
the fair value of the contingent consideration the ‘pooling of interests’ method prescribed
that do not qualify as the measurement under Ind AS 103 – Business Combinations
period adjustments depends on how the for common control transactions where
contingent consideration is classified. all the assets and liabilities of transferor
Contingent consideration that is classified companies would be recorded at the book
as equity is not remeasured at subsequent value as at the Appointed date.
reporting dates and its subsequent
settlement is accounted for within equity. (w) Contingent Liability and Contingent Assets
Contingent consideration that is classified A contingent liability is a possible
as an asset or a liability is remeasured at obligation that arises from past events
fair value at subsequent reporting dates whose existence will be confirmed by the

occurrence or non-occurrence of one or such notification which would have
more uncertain future events not wholly been applicable from 1st April, 2021.
within the control of the Group or a present MCA issued notifications dated 24th
obligation that is not recognized because it March, 2021 to amend Schedule III to
is not probable that an outflow of economic the Companies Act, 2013 to enhance
resources will be required to settle the the disclosures required to be made by
obligation. A contingent liability also arises the Group in its financial statements.
in extremely rare cases where there is a These amendments are applicable
liability that cannot be recognized because to the Group for the financial year
it cannot be measured reliably. The Group starting 1st April, 2021.
does not recognize a contingent liability but
discloses its existence in the consolidated 2. Note on COVID-19
financial statements. In view of the lockdown across
A contingent asset is not recognized unless the country due to the outbreak
it becomes virtually certain that an inflow of COVID pandemic, operations
of economic benefits will arise. When an in many of the Group’s locations
inflow of economic benefits is probable, (manufacturing, warehouses, offices,
contingent assets are disclosed in the etc.) are scaled down or shut down
consolidated financial statements. in compliance with the directives/
orders issued by the local Panchayat/
Contingent liabilities and contingent assets Municipal Corporation/State/Central
are reviewed at each balance sheet date. Government authorities.
(x) Changes in significant accounting policies As per management’s current

assessment, no significant impact
There have been no changes in accounting on carrying amounts of inventories,
policies during the Financial year 2019-20, intangible assets, trade receivables,
except for implementation of Ind AS 116 investments and other financial assets
as described in point 2.3 (k) of accounting is expected, and management will
policies. continue to monitor changes in future
(y)
Recent Indian Accounting Standard (Ind economic conditions. The eventual
AS) and note on COVID-19 outcome of the impact of the global
health pandemic may be different
1. Recent Accounting Pronouncements from those estimated as on the date
of approval of these consolidated
Ministry of Corporate Affairs (“MCA”)
financial statements.
notifies new standard or amendments
to the existing standards. There is no

Note 3: Property, Plant and Equipment
Free- Lease- Lease- Build- Plant Bearer Electric Furni- Office Labo- Vehicles Total
hold hold hold Im- ings and plants Installa- ture and Equip- ratory
Land Land prove- Equip- tion Fixtures ment Equip-
ments ment ment
As at 1 April 2019 24,642 16,648 - 42,743 1,74,559 258 4,833 1,168 2,873 634 2,999 2,71,357
Additions 5,574 - 101 11,106 46,014 210 169 221 366 38 475 64,274
Disposals - - (10) - (3,274) (258) - - (227) (41) (397) (4,207)
Reclassified on account of adoption of Ind - (16,554) - (258) - - - - - - - (16,812)

AS 116
Adjustment (Transfer to Investment property)* (3,096) - - - - - - - - - - (3,096)
Gross carrying amount as at 31 March 2020 27,120 94 91 53,591 2,17,299 210 5,002 1,389 3,012 631 3,077 3,11,516
Opening accumulated depreciation - (554) - (4,589) (43,551) (24) (1,941) (566) (1,611) (266) (1,372) (54,474)
Depreciation charge for the year - - (14) (2,361) (14,557) (45) (434) (154) (583) (72) (672) (18,892)
On disposals - - 3 - 3,184 52 - - 213 39 192 3,683
Reclassified on account of adoption of - 521 - 143 - - - - - - - 664

Ind AS 116
Exchange differences - - - - (4) - - - 7 - - 3
Accumulated depreciation as at - (33) (11) (6,807) (54,928) (17) (2,375) (720) (1,974) (299) (1,852) (69,016)
31 March 2020
Net carrying amount as on 31 March 2020 27,120 61 80 46,784 1,62,371 193 2,627 669 1,038 332 1,225 2,42,500
As at 1 April 2020 27,120 94 91 53,591 2,17,299 210 5,002 1,389 3,012 631 3,077 3,11,516
Additions 4,068 - 20 47 5,768 - 8 12 243 37 358 10,560
Disposals - - (88) (186) (265) (173) - - (105) (15) (697) (1,530)
Reclassified on account of adoption of (8,808) - - - - - - - - - - (8,808)

Ind AS 116
Adjustment (Transfer to Investment property)* - (94) 94 - - - - - - - - -
Exchange differences - - 17 - 975 - - - 8 - 55 1,056
Gross carrying amount as at 31 March 2021 22,380 - 133 53,452 2,23,777 37 5,010 1,401 3,158 653 2,793 3,12,794
Note 3: Property, Plant and Equipment
Free- Lease- Lease- Build- Plant Bearer Electric Furni- Office Labo- Vehicles Total
hold hold hold Im- ings and plants Installa- ture and Equip- ratory
Land Land prove- Equip- tion Fixtures ment Equip-
ments ment ment
Opening accumulated depreciation - (33) (11) (6,807) (54,928) (17) (2,375) (720) (1,974) (299) (1,852) (69,016)
Depreciation charge for the year - - (16) (2,441) (14,912) (20) (417) (134) (406) (78) (502) (18,926)
On disposals - - - 160 198 - - - 88 14 362 822
Exchange differences - - (7) (262) - - - (6) - (52) (327)
Accumulated depreciation as at 31 March 2021 - (33) (34) (9,088) (69,903) (37) (2,792) (854) (2,298) (363) (2,045) (87,447)
Net carrying amount as on 31 March 2021 22,380 (33) 99 44,364 1,53,873 (0) 2,218 547 860 290 749 2,25,347
Refer Note 2.3(c) for policy on depreciation

*During the year ended March 31, 2020, the management categorised the Freehold vacant land parcel located at Yerwada, Pune as Investment property as per Ind AS 40, based
on the re-assessment of use of respective vacant land parcel.
The above does not include stamp duty on the assets (land and other assets) transferred under a restructuring scheme from the Holding Company to Smartchem Technologies
Limited, the subsidiary company for which an application for adjudication has been made to the Collector of Stamps (Enforcement), Mumbai. The order in respect of the same
is awaited. After completion of the aforesaid process, title deeds of leasehold and freehold land having Gross Block of ₹ 3,213 Lakhs (Net Block 3,199 Lakhs) will be transferred
in the name of the subsidiary company.
Refer Note 21 foot note for information on Property, plant and equipment provided as security by the Group.
Refer Note 34 for finance cost capitalized.
Refer Note 33 for salary cost capitalized.

Note 4: Capital Work-in-Progress
31 March 2021 31 March 2020
Projects (Mainly comprising of building and plant and machinery)#* 1,55,667 1,27,196
Others 5,907 3,744
Total 1,61,574 1,30,940

#
Includes borrowing cost of ₹ 38,256 Lakhs (31 March 2020 ₹ 25,790 Lakhs)
*
Includes salary cost of ₹1,343 Lakhs. (31 March 2020 ₹ 533 Lakhs)
Note 4a: Intangible Assets Under Development
31 March 2021 31 March 2020
Intangible assets under Development 312 16
Total 312 16
Note 5: Investment Properties
31 March 2021 31 March 2020
Opening gross carrying amount 3,607 511
Additions - 3,096
Closing gross carrying amount 3,607 3,607
Opening accumulated depreciation - -
Depreciation charge - -
Closing accumulated depreciation - -
Net carrying amount 3,607 3,607
(i) Fair value
31 March 2021 31 March 2020
Investment properties 9,480 9,484
a) Disclosures relating to fair valuation of investment property

Fair value of the above investment property is ₹ 9,480 Lakhs (31 March 2020: ₹ 9,484 Lakhs) based on external valuation.
Fair value Hierarchy

The fair values of investment properties have been determined by an external, independent property valuer, having appropriate recognised
professional qualifications and relevant experience in the category of the land parcel being valued. The fair value measurement for the
investment property has been categorised as a Level 3 fair value based on the inputs to the valuation techniques used. The investment
property constitute of land parcels at Panchagini, Khamgaon, Solapur, Nashik and vacant land at Yerwada, Pune.
Description of valuation technique used

The Group obtains independent valuations of its investment property after every three years as per requirement of Ind AS 40. The fair
value of the investment property has been derived using the Direct Comparison Method. The direct comparison approach involves a
comparison of the investment property to similar properties that have actually been sold in arms-length transaction or are offered for
sale in the same region. This approach demonstrates what buyers have historically been willing to pay (and sellers willing to accept) for
similar properties in an open and competitive market, and is particularly useful in estimating the value of the land and properties that
are typically traded on a unit basis. This approach leads to a reasonable estimation of the prevailing price. Given that the comparable

instances are located in close proximity to the investment property; these instances have been assessed for their locational comparative
advantages and disadvantages while arriving at the indicative price assessment for investment property.
b) The Group has neither earned any rental income nor incurred any direct operating expense on the above properties.
Note 5(a): Leases

Land and Furniture & Leasehold Other Total

Building fixtures Land Equipment

Balance as at 1 April 2019 5,351 - - 3,966 9,317
Add: Reclassification on account of adoption of Ind AS 116 115 - 16,033 - 16,148
Add: Additions during the year - 302 168 - 470
Less: Disposals - - (5,115) - (5,115)
Gross carrying amount as at 31 March 2020 5,466 302 11,086 3,966 20,820
Balance as at 1 April 2019 - - - - -
Amortisation for the year (952) (32) (176) (565) (1,725)
Accumulated depreciation as at 31 March 2020 (952) (32) (176) (565) (1,725)
Net carrying amount as at 31 March 2020 4,514 270 10,910 3,401 19,095
Balance as at 1 April 2020 5,466 302 11,086 3,966 20,820
Add: Additions 8,825 - 436 531 9,792
Less: Disposals (245) - - - (245)
Exchange differences 315 - 8 - 323
Gross carrying amount as at 31 March 2021 14,361 302 11,530 4,497 30,690
Balance as at 1 April 2020 (952) (32) (176) (565) (1,725)
Amortisation for the year (1,102) (60) (588) (108) (1,858)
Exchange differences (4) - (3) - (7)
Accumulated depreciation as at 31 March 2021 (2,058) (92) (767) (673) (3,590)
Net carrying amount as at 31 March 2021 12,303 210 10,763 3,824 27,100
B) Lease liabilities
31 March 2021 31 March 2020
Current 1,333 1,944
Non Current 6,619 6,784
Total 7,952 8,728
C) Interest expenses on lease liabilities
31 March 2021 31 March 2020
Interest on lease liabilities 644 793
D) Expenses on short term leases / low value assets
31 March 2021 31 March 2020
Short term lease 1,628 2,731

E) Amounts recognised in the statement of cash flow
31 March 2021 31 March 2020
Total cash outflow for leases 2,144 1,900
F) Maturity analysis – contractual undiscounted cash flows
31 March 2021 31 March 2020
Less than one year 1,465 1,991
One to five years 4,577 8,440

More than five years 2,438 1,024
Total undiscounted lease liabilities at March 31, 2021 8,480 11,455
Other Information:
The Group has leases mainly for Land, Corporate building, furniture items and other equipments. These lease contracts provide
for payment to increase each year by inflation.
Leases not yet commenced to which the lessee is committed
At 31 March 2021 the Holding company had committed to leases which had not yet commenced. The total future cash outflows
for leases that had not yet commenced is amounting to ₹ 85 lakhs.
The difference between the future minimum lease rental commitments towards non-cancellable operating leases reported
as at 31 March 2019 compared to the lease liability as accounted as at 1 April 2019 is primarily due to inclusion of present
value of the lease payments for the cancellable term of the leases, reduction due to discounting of the lease liabilities as per
the requirement of Ind AS 116 and exclusion of the commitments for the leases to which the Group has chosen to apply the
practical expedient as per the standard.
The Group does not face significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the
obligations related to lease liabilities as and when they fall due.There are no variable lease payments and guaranteed residual
value in existing lease agreements.
The incremental borrowing rate of 9.65% p.a. has been applied to lease liabilities recognised in the Balance Sheet.
For transition, the Group has elected not to apply the requirements of Ind AS 116 to leases which are expiring within 12 months
from the date of transition by class of asset and leases for which the underlying asset is of low value on a lease-by-lease basis.
The Group has also used the practical expedient provided by the standard when applying Ind AS 116 to leases previously
classified as operating leases under Ind AS 17 and therefore, has not reassessed whether a contract, is or contains a lease, at
the date of initial application, relied on its assessment of whether leases are onerous, applying Ind AS 37 immediately before
the date of initial application as an alternative to performing an impairment review, excluded initial direct costs from measuring
the right of use asset at the date of initial application and used hindsight when determining the lease term if the contract
contains options to extend or terminate the lease. The Group has used a single discount rate to a portfolio of leases with similar
characteristics.
Note 5(b): Goodwill on Consolidation
31 March 2021 31 March 2020
Opening balance 4,093 2,632
Goodwill on acquisition of Mahadhan Farm Technologies Private Limited - 1,541

Adjustment for foreign exchange (Platinum Blasting Services Pty Limited) 275 (80)
Total 4,368 4,093
Goodwill of ` 4,368 Lakh (2020: ` 4,093 Crore) relates to the CGUs namely Mahadhan Farm Technologies Private Limited
` 1,542 lakh (31 March 2020: ` 1,542 Lakh), Performance Chemiserve Limited ` 1,190 Lakh (31 March 2020: ` 1,190 Lakh) and
Australian Minning Explosives Pty Ltd ` 1,637 Lakh (31 March 2020: ` 1,362 Lakhs) respectively.

The management has performed the impairment testing of all the companies identified as CGUs based on the revenue
generated, profit earned, return on investment, market valuation of ongoing projects and net worth of these companies. Based
on assesment of all these factors, management is of the view that there is no indicator of impairment in any of the companies
and did not result in any probable scenario in which the recoverable amount of the CGUs would decrease below the carrying
amount.
Note 6: Other Intangible Assets
Computer Technical License Fees Total

Software Know-How /
Engineering
fees
Gross carrying amount as on 1 April 2019 883 332 1,326 2,541

Additions during the year 1,480 - 316 1,796
Disposals/ Transfers/ Adjustments (37) (4) - (41)
Gross carrying amount as on 1 April 2020 2,326 328 1,642 4,296
Additions during the year 100 - 87 187
Gross carrying amount as on 31 March 2021 2,426 328 1,729 4,483
Accumulated Amortisation
Accumulated amortisation as at 1 April 2019 281 128 1,268 1,677
Amortisation charge for the year 602 34 100 736
Disposals/ Transfers/ Adjustments (4) - - (4)
Accumulated amortisation as at 1 April 2020 879 162 1,368 2,409
Amortisation charge for the year 268 27 116 411
Closing accumulated amortisation as at 31 March 2021 1,147 189 1,484 2,820
Net Block as at 31 March 2020 1,447 166 274 1,887
Net Block as at 31 March 2021 1,279 139 245 1,663
Refer Note 2.3(d) for policy on amortisation
Note 7: Investment In Equity Accounted Investees
31 March 2021 31 March 2020
Investments in equity shares (unquoted) of Associates (fully paid up) at Cost
49,994 (31 March 2020: 49,994) equity shares of Ishanya Realty Corporation Limited of ` 10 each 5 5
Total (equity instruments) 5 5
Aggregate amount of unquoted investments 5 5
Aggregate amount of impairment in the value of investments - -

Note 8: Investments
31 March 2021 31 March 2020
Investment in equity shares (quoted) (fully paid up) (fair value through profit and loss)
4,715 (31 March 2020: 4,715) Equity shares of Punjab National Bank Limited of ₹ 2/- each fully 3 3
paid up
Investments in equity shares (unquoted) (fully paid up) (fair value through other comprehensive
income)
88,448 (31 March 2020: 88,448) equity shares of Deepak International Limited of AUD 1 each - 69
Total (equity instruments) 3 72
Total 3 72
Aggregate amount of quoted investments and market value thereof 3 3
Aggregate amount of unquoted investments - 69
Note 9: Investment In Associate (Held-for-Sale)
31 March 2021 31 March 2020
Investment in equity shares (unquoted) of Associates (fully paid up) carried at lower of cost or
net realisable value
NIL (31 March 2020: 12,70,341) equity shares of Desai Fruit and Vegetables Private Limited of - 149
` 10 each
Total - 149
The Group had signed Share purchase agreement with Contract Farming India A.G. (CFI) on 6 April 2019 to sell shares at
₹ 74 per share for a total consideration of ₹ 3,760 Lakh. During the year 2020-21, the Group has transferred 12,70,341 shares to
Contract Farming India A.G. (CFI) at consideration of ₹ 74 per share for total consideration of ₹ 940 Lakh (31 March 2020:
38,11,022 shares of ₹ 74 per share for total consideration of ₹ 2,820 Lakh).
Note 10: Current Investments
31 March 2021 31 March 2020
Unquoted
Investment in mutual funds (carried at fair value through profit and loss) 44,920 1,011
Total 44,920 1,011
Aggregate carrying value of unquoted investments 44,920 1,011
Aggregate market value of unquoted investments 44,920 1,011
Note 11: Trade Receivables
31 March 2021 31 March 2020
Unsecured, considered good 90,612 1,27,580

Unsecured, credit Impaired 4,784 2,310
Less: Impairment loss allowance (4,784) (2,310)
Total 90,612 1,27,580

Movement in allowance for expected credit loss:
31 March 2021 31 March 2020
Balance at beginning of the year 2,310 1,509

Add: Allowance for expected credit loss 2,474 1,192
Less: Reversed / utilized during the year - (391)
Balance as at the end of the year 4,784 2,310
Trade receivables have been offered as security against the working capital facilities provided by the banks (Refer Note 22).
Refer Note 39(i) on credit risk of trade receivables, which explains how the Group manages and measures credit quality of trade receivables
that are neither past due nor impaired.
Refer Note 41(b) for amount receivable from related parties which includes debts due by companies in which any director is a director or
member.
Note 12: Loans
31 March 2021 31 March 2020

Current Non-Current Current Non-Current
Loan to employees 59 - 98 -
Security deposits 952 2,823 26 3,140
Unsecured, considered doubtful
Less: Provision for doubtful loans (192) - (138) -
Total 1,018 2,823 144 3,140
Refer Note 38(i) for Fair value measurements of financial assets and liabilities and refer Note 38(ii) for Fair value hierarchy
disclosures for financial assets and liabilities.
Refer Note 41(b) for Security deposits receivable from related parties.
Note 13: Cash & Cash Equivalents
31 March 2021 31 March 2020
Balances with banks

- in current accounts 10,235 12,415
- in EEFC accounts - 12
Deposits with original maturity upto three months 6,712 3,316
Cash on hand 12 14
Total 16,959 15,757

Note 14: Other Bank Balances
31 March 2021 31 March 2020
Earmarked balances with banks

Unclaimed dividend 731 767
Deposits with remaining maturity upto 12 months from the reporting date 6,941 9,402
Total 7,672 10,169
Note 15: Other Financial Assets
31 March 2021 31 March 2020

Derivatives
(i) Foreign-exchange forward contracts - - 29 -
(ii) Foreign-exchange option contracts 151 - 2,016 -
(iii) Commodity hedge contracts 723 - - -
(iv) Embedded Derivative 788 - - -
Interest receivable
(i) From bank 25 - 126 -
(ii) From others 124 - 280 -
Deposit with banks with maturity after 12 - 136 - 76
months from the reporting date
Amount paid under protest for claims from - 1,507 - 1,507
supplier*
Others 50 97 50 7
Total 1,861 1,740 2,501 1,590
*Included in supplier claim (Refer Note 42)
Note 16: Other Non-Current Assets
31 March 2021 31 March 2020
Capital advances 5,718 7,202

Balance with government authorities 23,102 21,707
Prepaid Expenses 247 15
Total 29,067 28,924

Note 17: Inventories
31 March 2021 31 March 2020
Raw materials ((includes ₹295 Lakhs in transit) (31 March 2020: ₹6,094 Lakhs)) 22,575 22,861
Stock-in-trade ((includes ₹ 1,997 Lakhs) (31 March 2020: NIL)) 14,103 7,739
Stores and spares ((includes ₹ 381 Lakhs) (31 March 2020: ₹ 16 Lakhs)) 16,150 14,224
Packing material 2,434 1,895
Total 63,722 68,369
(i) The cost of inventories recognised as an expense includes ₹ 382 Lakhs (31 March 2020: ₹ 6 Lakhs) in respect of write-down of
inventories to net realisable value.
(ii) Inventories have been offered as security against the working capital facilities provided by the banks. (Refer Note 22)
Note 18: Other Current Assets
31 March 2021 31 March 2020
Advances for supply of goods and services 2,329 1,696

Balances with government authorities 8,476 10,467
Prepaid expenses 2,400 2,582
Other receivables 972 128
Total 14,177 14,873
Note 19: Share Capital
31 March 2021 31 March 2020
Authorised
(31 March 2020: 13,50,50,000 equity shares of ₹10/- each)
13,505 13,505
Issued, subscribed and fully paid-up share capital

(31 March 2020: 8,92,84,425 equity shares of ₹ 10/- each)
Fully paid-up share capital as at year end 10,268 8,928
(i) Reconciliation of the number of Equity Shares
31 March 2021 31 March 2020

No. of Shares Amount No. of Shares Amount
Equity Shares
Balance as at the beginning and at the end of 8,92,84,425 8,928 8,82,04,943 8,820
the year
Add: Issued during the year - - 10,79,482 108
Add: Right issue of shares during the year 1,33,92,663 1,340 - -
Balance as at the end of the year 10,26,77,088 10,268 8,92,84,425 8,928
Terms and rights attached to equity shares
The Company has only one class of equity shares having par value of ₹ 10 per share. Holder of each equity share is entitled to
one vote per share.

The Company declares and pays dividend in Indian Rupees except in the case of overseas shareholders where dividend is paid
in respective foreign currencies considering foreign exchange rate applied at the date of remittance. The dividend proposed by
the Board of Directors is subject to the approval of shareholders in the Annual General Meeting.
In the event of liquidation of the Company the holders of equity share will be entitled to receive remaining assets of the Company,
after distribution of all preferential amounts in proportion to their shareholding. The distribution will be in proportion to the
numbers of equity shares held by the shareholder.
(ii) Details of shareholders holding more than 5% shares in the company
31 March 2021 31 March 2020

No. of Shares % Holding No. of Shares % Holding
Nova Synthetic Limited 4,35,92,875 42.46% 4,27,06,848 47.83%
Robust Marketing Services Private Limited 1,07,59,301 10.48% - -
Note 20: Other Equity (Refer Statement of Changes in Equity for Reserves movement)
(ii) Nature and purpose of other equity

(a) Securities premium: Amount received in excess of face value of the equity shares is recognized in Securities
Premium. The reserve is eligible for utilisation in accordance with the provisions of the 2013 Act.
(b) Capital redemption reserve: The Group had issued redeemable preference shares and as per the provisions of the
Act where preference shares are redeemed out of divisible profits, an amount equal to the nominal value of shares
so redeemed must be transferred to capital redemption reserve, out of divisible profits.
(c) Share Warrants : During the year 2018-19, the Group has issued 64,76,893 convertible warrants at an issue price of
₹ 308.79 per warrant each to a promoter group company. These warrants are convertible into equal number of fully
paid equity shares of ₹ 10 each upon exercise of the option of conversion of warrants held by the holders within
a period of 18 months from the date of allotment of warrants. Out of 64,76,893 warrants issued, 10,79,482 are
converted in equity shares during the preious year 2019-20. Since, the Group did not receive the balance subscription
amount of ₹ 12,500 lakhs from the Warrant holder before the extended due date, the balance lying in the Group paid
as Upfront Warrant Subscription Amount towards 25% of the issue price of the warrants and still not converted by
the warrant holder into equity amounting to ₹ 4,166 lakhs, was forfeited and transferred to Capital reserve in current
year in terms of Regulation 169 (3) of the aforesaid SEBI Regulations.
(d) Equity portion of non-current borrowings (FCCB): During the year, the Group has received tranche 2 subscription
amount $15,000,000 (31 March 2020: Trache 1 $15,000,000) towards Foreign Currency Convertible Bonds (“FCCBs”)
issued by the Group to International Finance Corporations (“IFC”). The same have been bifurcated into equity and
liability components as per the principles of the Indian Accounting Standards.
(e) General reserve: This represents appropriation of profits by the Group to General Reserve and is available for
distribution of dividend.
(f) Retained earnings: Retained earnings are the profits that the Group has earned till date, less any transfers to general
reserve, dividends or other distributions paid to shareholder.
(g) Retained earnings: This represents equity instruments carried at fair value through OCI, foreign currency exchange
differences, Hedge income and remeasurement of employee benefits (gratuity & post retirement benefit).

FINANCIAL LIABILITIES
Note 21: Non-Current Borrowings

Coupon/ Interest
Terms of repayment 31 March 2021 31 March 2020
rate
Secured
Term loans
(i) State Bank of India (refer note 1) Repayable in 28 10.25% per annum 18,073 25,405
quarterly instalments 9.60% to 9.80% per
starting from June 2017 annum
onwards.
(ii) Export Import Bank of India 4,288 5,716
(Loan 1) (refer note 1)
(iii) Export Import Bank of India Repayable in 28 9.55% to 9.75% per 27,049 28,662
(Loan 2) (refer note 2) quarterly instalments annum
starting from June 2020
onwards.
(iv) Bank of Baroda (refer note 3) Repayable in quarterly 10.72% per annum 68,694 66,735
instalment starting from
March 2023
(v) Export Import Bank of India Repayable in quarterly 9.53% per annum 18,215 18,346
(Loan 3) (refer note 3) instalment starting from
March 2023
(vi) Bank of Baroda (refer note 4) Repayable in quarterly 8.15% to 9.40% per 19,302 19,350
(vii) Export Import Bank of India Repayable in quarterly 8.85% to 9.35% per 22,179 22,186
(Loan 4) (refer note 4) instalments starting annum
(viii) Bank of Baroda (refer note 6) Repayable in quarterly 9.05% to 9.85% per 16,722 9,904
from October 2020 and
end date of October
2023
(ix) Term Loan - State Bank of India, Repayable from calendar 4.55% per annum 5,483 4,605
Sydney (refer note 5) year 2018 to 2022
Unsecured
(i) Foreign currency convertible bonds Simple Interest : 18,140 9,312
- IFC (refer note 7) Upto March 12, 2021 :
5% simple interest per
annum
March 13, 2021
Onwards : 4.5%
simple interest
per annum and
Compound Interest
:Upto March 12, 2021
: 1.75% compound
interest per annum
From March 13, 2021
onwards : 2.25%
compound interest
per annum
(ii) Compulsory convertible debentures 8% per annum 22,180 10,638
- International Finance Corporation (IRR : 15.25%)
(IFC), USA (refer note 8)
Total 2,40,325 2,20,859
Less: Current maturities of long-term debt (included in note 23) 21,666 12,434
Total 2,18,659 2,08,425

1) The term loans from State Bank of India and Export Import Bank of India have been availed for financing NPK project. The
term loans are secured by pari passu first charge to be created on the entire fixed assets pertaining to Nitro phosphate
plant (NPK project), being all present and future immovable and movable fixed assets pertaining to NPK project from Plot
K1 to Plot K5., MIDC Industrial Area, Taloja, Dist. Raigad.
2) The term loan from Export Import Bank of India is secured by hypothecation of movable fixed assets i.e Plant and
machinery located at Plot no 7 Haryana Industrial development corporation Panipat and original title deeds of Panipat
land given to Export Import Bank of India. Further term loan is secured by pari passu charge to be created on the fixed
assets located at Plot K7, K8 MIDC Taloja.
3) The term loan from Bank of Baroda and Exim Bank has been availed for financing of Ammonia Project at Taloja. The term
loan is secured by first charge by way of hypothecation in favour of all lenders movable assets, immovable properties, and
all the intangible assets in relation to the project, both present and future.
4) The term loans from Bank of Baroda (Dahej) and Export Import Bank of India (Dahej) have been availed for financing of
Nitric Acid project at Dajej. The term loans are secured by pari pasu charge on the land & building and hypothecation of
all the present & future immovable fixed assets and intangible assets pertaining to Nitric Acid project at Dahej.
5) The term loan availed from State Bank of India, Sydney is secured by pari pasu first charge on the movable and immovable
fixed assets of the subsidiary, second charge on current assets of subsidiary.
6) The term loan from Bank of Baroda has been availed to shore up the net working capital of the Company. The term loan
is secured by exclusive charge on the immovable property situated at Yerwada Pune belonging to joint operation, M/s
Yerrowda Investments Limited (YIL). Corporate Guarantee of M/s Yerrowda Investments Limited (YIL) to the extent of the
value of Immovable property is offered to Bank of Baroda.
7) The FCCB’s will be pari-passu with the senior unsecured creditors of the Company. The Company has received Tranche 2
subscription amount $15,000,000 during current financial year (31 March 2020: Trache 1 $15,000,000). Foreign Currency
Convertible Bonds (“FCCBs”) issued by the Company to International Finance Corporations (“IFC”) have been bifurcated
into equity and liability components as per the principles of the Indian Accounting Standards. The financial liability
component has been measured at amortized cost in the financial statements as per Ind AS 109, Financial Instruments.
The FCCBs are convertible into equity shares of the Company at a predetermined price of ₹ 195 per share (₹ 250 per share
till July 16, 2020) at the option of IFC and carry several rights and obligations including adherence to specific financial
covenants. The shares issued upon conversion of the FCCB’s will rank paripassu in all respects with the existing shares of
the Company. In the event of non-conversion till the end of the stipulated period, the amount raised through the issue of
FCCBs is repayable in full to IFC. The FCCBs carry a coupon rate of 4.5% simple interest p.a.(5% p.a. upto March 12, 2021),
payable semi annually and 2.25% compound interest p.a.(1.75% p.a. upto March 12, 2021), payable on redemption.
8)
The Subsidiary Company (Smartchem Technologies Limited) has received tranche 2 subscription amount of INR
1,050,000,000 during this financial year. Compulsory Convertible Debentures (“CCD’s”) issued by the Subsidiary Company
to International Finance Corporations (“IFC”) have been shown as liability as per the principles of the Indian Accounting
Standards. The financial liability component has been measured at amortized cost in the financial statements as per Ind
AS 109, Financial Instruments. IFC have the right to voluntary convert the CCD’s, also, the IFC CCDs shall compulsorily
convert into common equity shares at the end of 10 years from the date of investment,IFC shall be entitled to receive
such number of common equity shares as per conversion formula, the fair value of which will provide IFC with an IRR of
[15] % on its investment, the IFC investment carry several rights and obligations including adherence to specific financial
covenants. The shares issued upon conversion of the CCD’s will rank pari passu in all respects with the existing shares
of the Subsidiary Company.The CCD’s carry a coupon rate of 8% simple interest p.a., payable semi annually and XIRR of
15.25%.
Note 22: Current Borrowings
31 March 2021 31 March 2020
Loans repayable on demand - at amortized cost

Secured
- Short term loan 10,868 70,255
- Cash credit facilities 151 1,410
Unsecured
- From related parties - 265
Total 11,019 71,930

Reconciliation of Borrowings as required by Ind AS 7 ‘’Statement of Cash Flows’’
Non-current borrowings 2,40,325 2,20,859

Current borrowings 11,019 71,930
Interest accrued (refer note 23) 1,257 2,004
2,52,601 2,94,793
Cash and Non-cash adjustments
Equity portion of non-current borrowings (1,504) (1,286)
Deferred tax on equity portion of non-current borrowings (505) (432)
Unrealized forex Loss 15,190 481
Proceeds from borrowings 83,273 3,59,253
Repayment of borrowings (1,23,658) (3,68,576)
Interest expense 18,771 138
Interest paid (33,759) -
Movement of borrowings (net) (42,192) (10,422)
(i) Short term loan from bank is repayable on demand, carries average interest rate of 9.14% (31 March 2020 - 9.19%) and is
secured by a first charge by way of hypothecation of stock of raw materials, finished goods and consumable stores and
book debts.
(ii) Cash credit is repayable on demand and carries variable rate of interest. Average interest rate for the year is 8.50% (31
March 2020 - NIL). Cash credit facilities sanctioned by banks including working capital demand loans are secured by a
first pari passu charge by way of hypothecation of stocks of raw materials, finished goods, consumable stores and book
debts.
(iii) Unsecured loan is availed from related party Deepak Agro Solutions Ltd. and is repayable on demand.
Note 23: Other Financial Liabilities
31 March 2021 31 March 2020
Non-current
Security deposits 4,292 -
Embedded Derivative liability 117 170
Total 4,409 170
Current
Current maturities of non-current borrowings 21,666 12,434
Interest accrued 1,257 2,004
Security deposits 2,276 5,872

Capital creditors 10,654 8,141
Commission payable (refer Note 41(b)) 1,944 19
Foreign-exchange forward contracts payables - 22
Salary payables 5,037 3,978
Others 214 1,252
Total 43,048 33,722

Note 24: Provisions
31 March 2021 31 March 2020
Current Non - Current Current Non - Current
Provision for employee benefits
Gratuity 757 4,148 1,017 3,200
Compensated absences 592 1,782 986 2,028
Defined pension benefits 283 306 242 32
Total (A) 1,632 6,236 2,245 5,260
Provisions for tax contingencies (Refer Note 5,743 - 5,656 -
below)
Provision for site restoration (Refer Note below) - 472 - 427
Total (B) 5,743 472 5,656 427
Total (A+B) 7,375 6,708 7,901 5,687
Movement in Provision
Tax contingencies# Site restoration* Compensated absences

As at 1 April 2019 5,656 454 2,629
Additional provisions recognised - 41 385
unsed amounts reversed - (68) -
As at 1 April 2020 5,656 427 3,014
Additional provisions recognised 87 45 -
Unsed amounts reversed - - (640)
As at 31 March 2021 5,743 472 2,374
#
The provision is mainly on account of entry tax, MVAT applicable on purchase of natural gas and income tax provision.
* The site restoration expense and decommissioning charges outflow is expected to be within a period of one to five years from date of
balance sheet.
(A) Defined Contribution Plans (refer Note 33)

The Group has certain defined contribution plans such as provident fund, employee state insurance, employee pension
scheme, employee superannuation fund wherein specified percentage is contributed to them. During the year, the Group
has contributed following amounts to:
31 March 2021 31 March 2020
Employer’s contribution to provident fund 809 773
Employer’s contribution to employee’s pension scheme 264 233
Employer’s contribution to superannuation fund 938 1,057
Employer’s contribution to employee state insurance 7 8
Total 2,018 2,071
(B) Defined Benefit Plans

i. Gratuity
In accordance with Ind AS 19 “Employee Benefits”, an actuarial valuation has been carried out in respect of gratuity.
The discount rate assumed is 6.60% p.a. (31 March 2020: 6.40% p.a) which is determined by reference to market yield
at the Balance Sheet date on Government bonds. The retirement age has been considered at 60 years (31 March 2020:
60 years), withdrawal rate is 8% p.a. (31 March 2020: 14% p.a.) and mortality table is as per IALM (2012-14) (31 March
2020: IALM (2012-14)).

The estimates of future salary increases, considered in actuarial valuation is 8% p.a. (31 March 2020: 8% p.a), taking
into account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment
market.
The plans assets are maintained with Life Insurance Corporation of India in respect of gratuity scheme of the Group.
The details of investments maintained by Life Insurance Corporation are not available with the Group, hence not
disclosed. The expected rate of return on plan assets is 6.40% p.a. (31 March 2020: 7.50% p.a).
Present value of obligation at the beginning of the year 8,796 7,309
Actuarial loss 595 1,154
Reconciliation of the present value of defined benefit obligation and the fair value of the plan assets:
Fair value of plan assets at the end of the year 4,973 4,579
Net liabilities recognised in the Balance Sheet 4,905 4,217
Fair value of Plan assets :
Plan assets at the beginning of the year 4,579 4,232
Interest income 49 33
Expected return on plan assets 250 274

Contribution by employer 765 669
Actual benefits paid (702) (685)
Actuarial gain/(loss) 32 56
Plan assets at the end of the year 4,973 4,579

Actuarial loss on defined benefit obligation 595 1,154
Actuarial (gain) on plan assets (36) (47)
Amount recognised in the Other Comprehensive Income 559 1,107
Remeasurements for the year (Actuarial (Gain) / Loss)
Experience Loss on plan liabilities 520 231
Demographic Loss on plan liabilities 174 74
Financial (Gain) / Loss on plan liabilities (99) 848

Experience (Gain) / Loss on plan assets (86) (47)
Financial Loss on plan assets 50 -
Categories of the fair value of total plan assets:
Funds managed by insurer 4,973 4,579
(%) of total plan assets 100% 100%
31 March 2021 31 March 2020

Particulars
Discount rate Discount rate
Assumptions
Impact on defined benefit (decrease)/increase (466) 516 (343) 372
31 March 2021 31 March 2020

Particulars
Future salary increase Future salary increase
Assumptions
Impact on defined benefit 422 (389) 283 (266)
The sensitivity analysis above have been determined based on reasonably possible changes of the respective assumptions
occurring at the end of the year and may not be representative of the actual change. It is based on a change in the key assumption
while holding all other assumptions constant.
Maturity profile of defined benefit obligation (Gratuity) is as follows:
Within the next 12 months (next annual reporting period) 2,314 2,539
Total expected payments 14,406 13,043

Weighted average duration of the plan (based on discounted cash flows using mortality, withdrawal rate and interest rate) is
8.22 years (31 March 2020: 6.17 years)
Risk Exposure and Asset Liability Matching
Provision of a defined benefit scheme poses certain risks, some of which are detailed hereunder, as companies take on
uncertain long term obligations to make future benefit payments.
1. Liability Risks
a. Asset-Liability Mismatch Risk
Risk which arises if there is a mismatch in the duration of the assets relative to the liabilities. By matching duration
with the defined benefit liabilities, the Group is successfully able to neutralize valuation swings caused by interest rate
movements. Hence companies are encouraged to adopt asset-liability management.
b. Discount Rate Risk
Variations in the discount rate used to compute the present value of the liabilities may seem small, but in practise can
have a significant impact on the defined benefit liabilities.
c. Future Salary Escalation and Inflation Risk
Since price inflation and salary growth are linked economically, they are combined for disclosure purposes. Rising
salaries will often result in higher future defined benefit payments resulting in a higher present value of liabilities
especially unexpected salary increases provided at management’s discretion may lead to uncertainties in estimating
this increasing risk.
2. Asset Risks
Plan assets are maintained in a trust fund partly managed by a public sector insurer viz; LIC of India and partly managed by
a private sector insurer viz; India First Life Insurance.
The Group has opted for a traditional fund wherein all assets are invested primarily in risk averse markets. The Group
has no control over the management of funds but this option provides a high level of safety for the total corpus. A single
account is maintained for both the investment and claim settlement and hence 100% liquidity is ensured. Also interest rate
and inflation risk are taken care of.
ii. Defined pension benefits
The Group has a Post Retirement Benefit plan, which is a defined benefit retirement plan, according to which executives
superannuating from the service after ten years of service are eligible for certain benefits like medical, fuel expenses,
telephone reimbursement, club membership etc. for specified number of year. The liability is provided for on the basis
of an independent actuarial valuation.
In accordance with Ind AS 19 “Employee Benefits”, an actuarial valuation has been carried out in respect of post
retirement benefits. The discount rate assumed is 6.60% p.a. (31 March 2020: 6.40% p.a) which is determined by
reference to market yield at the Balance Sheet date on Government bonds. The retirement age has been considered at
60 years (31 March 2020: 60 years), withdrawal rate is 8% p.a. (31 March 2020: 14% p.a.) and mortality table is as per
IALM (2012-14) (31 March 2020: IALM (2012-14)).
31 March 2021 31 March 2020
Present value of obligation at the beginning of the year 274 228
Interest cost 16 15
Present value of obligation at the end of the year 589 274

Interest cost 16 15
Remeasurements Cost / (Credit ) 281 14
31 March 2021 31 March 2020

Impact on defined benefit (140) 196 (58) 79
Note 25: Trade Payables
31 March 2021 31 March 2020
Trade payables
(a) total outstanding dues of micro and small enterprises 1,436 762
(b) total outstanding dues of creditors other than micro and small enterprises 1,28,240 1,28,687
Total 1,29,676 1,29,449
The information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been
determined to the extent such parties have been identified on the basis of information available with the Group. The amount
of principal and interest outstanding during the year is given below :
31 March 2021 31 March 2020
The principal amount and the interest due thereon remaining unpaid to any supplier as at the end
of each accounting year
- Principal amount outstanding (whether due or not) to micro and small enterprises 1,436 762
- Interest due thereon 24 7
The amount of interest paid by the Group in terms of section 16 of the MSMED Act, 2006 along - -
with the amounts of the payment made to the supplier beyond the appointed day during each
accounting year
The amount of payment made to the supplier beyond the appointed day during the year 9,015 2,441
Amount of interest due and payable on delayed payments 127 53
Amount of interest accrued and remaining unpaid as at year end 249 98
The amount of further interest remaining due and payable even in the succeeding year - -

Details of Micro and Small Enterprises as define under MSMED ACT, 2006
To comply with the requirement of The Micro, Small And Medium Enterprises Development Act, 2006, the Group requested its
suppliers to confirm whether they are covered as Micro, Small or Medium enterprise as is defined in the said Act. Based on the
communications received from such suppliers confirming their coverage as such enterprise, the Group has recognised them for
the necessary treatment as provided under the Act, from the date of receipt of such confirmations.
Note 26: Deferred Tax Assets (Net)
31 March 2021 31 March 2020
The balance comprises temporary differences attributable to:
(a) Deferred tax assets 59,506 58,954
(b) Deferred tax liabilities (54,803) (54,365)
Net deferred tax assets 4,703 4,589
Movements during the year ended 31 March 2021
1 April 2020 Credit/ Credit/ Credit/(charge) 31 March

(charge) in the (Charge) in in the Other 2021
Property, plant and equipment, investment property (54,365) 545 - - (53,820)
Business loss 33,930 9,626 - - 43,556
Financial assets at fair value through profit or loss 668 (93) - 114 689
Expenses allowable in the year of payment 2,300 (126) - 129 2,303
(section 43B of Income Tax Act 1961)
MAT credit 3,460 (3,460) - - -
Equity portion of Foreign Currency Convertible Bonds (459) 88 (505) - (876)
Impairment Provision - 255 - - 255
Financial assets at fair value through OCI - - - (107) (107)
Reversal of deferred tax on goodwill adjustment and 19,084 (7,281) - - 11,803
other intangible assets
Others (29) 930 - - 900
Net deferred tax assets 4,589 484 (505) 136 4,703
1 April 2019 Credit/ Credit/ Credit/(charge) 31 March
(charge) in the (Charge) in in the Other 2020
Property, plant and equipment, investment property (51,750) (2,615) - - (54,365)
Business losses comprising Unabsorbed tax 30,505 3,425 - - 33,930
depreciation
Financial assets at fair value through profit or loss 308 26 - 334 668
Expenses allowable in the year of payment 2,221 79 - - 2,300
(section 43B of Income Tax Act 1961)
MAT credit* 5,013 (1,553) - - 3,460
Equity portion of Foreign Currency Convertible Bonds - (26) (433) - (459)
Reversal of deferred tax on intangible assets 20,728 (1,644) 19,084
Others 328 (357) - - (29)
Net deferred tax assets 7,353 (2,665) (433) 334 4,589
* Includes MAT credit of ₹ 1,637 lakhs which was utilized in earlier period.

Note 27: Other Current Liabilities
31 March 2021 31 March 2020
Advances from customers 1,546 1,582
Unclaimed dividend (#) 731 767
Statutory dues payable 2,527 2,113
Other payables 132 14
Total 4,936 4,476
(#) ₹ 100 Lakhs (31 March 2020: ₹ 90 Lakhs) transferred to the Investor Education and Protection Fund during the year. There has been no
delay in transferring amounts required to be transferred to the Investor Education and Protection Fund by the Holding Company except for
₹ 0.37 Lakhs (31 March 2020: ₹ 0.37 Lakhs), wherein legal disputes with regards to ownership have remained unresolved.
Note 28: Revenue from Opertations

31 March 2021 31 March 2020
Sale of products
- Finished goods 4,82,762 3,84,753
- Traded goods 96,505 81,387

Power generated from windmills 253 745
Revenue from realty business 786 1,396
Other operating revenues 543 257
Total 5,80,849 4,68,538
Contracts with customer
Revenue recognised from contracts with customers 5,80,849 4,68,538
Disaggregation of revenue
Based on type of goods

Sale of finished goods -
(i) Sale of chemicals 2,65,708 2,26,200
(ii) Sale of fertilisers 2,17,054 1,58,553
Sale of traded goods -
(i) Industrial Chemicals 49,897 48,155
(ii) Fertilisers 46,214 32,467
(iii) Value added real estate (VARE) - Sale of furniture 394 765
- Revenue from power generated from windmills 253 745
- Income from realty operation 786 1,396
- Other operating revenues 543 257
Impairment losses recognised on receivables or contract assets arising from an entity’s 4,784 2,310
contracts with customers

Details of contract balances:
Particulars Year ended Year ended

31 March 2021 31 March 2020
Opening balance of receivables 1,27,580 1,39,626

Closing balance of receivables 90,612 1,27,580
Significant changes in the contract liability balances during the year ended are as follows:
Particulars Year ended Year ended

31 March 2021 31 March 2020
Contract liabilities at the beginning of the year 1,582 821

Revenue recognised in the reporting period that was included in the contract liability balance at 1,582 821
the beginning of the period
Increase due to cash received, excluding amounts recognised as revenue during the year 1,546 1,582
Contract liabilities at the end of the year 1,546 1,582
There is no significant change in the contract asset and contract liabilities.
Performance obligations
The Group satisfies its performance obligations pertaining to the sale of products at point in time when the control of goods
is actually transferred to the customer. No significant judgment is involved in evaluating when a customer obtains control of
promised goods. The contract is a fixed price contract subject to refund due to shortages and discounts during the mode of
transportation and do not contain any financing component. The payment is generally due within 30-90 days.
The Group is obliged for refunds due to shortages and discounts. There are no other significant obligations attached in the
contract with customer.
Transaction price
There is no remaining performance obligation for any contract for which revenue has been recognised till period end. Further, the
Group has not applied the practical expedient as specified in para 121 of Ind AS 115 as the Group do not have any performance
obligations that has an original expected duration of one year or less or any revenue stream in which consideration from a
customer corresponds directly with the value to the customer of the entity’s performance completed to date.
Determining the timing of satisfaction of performance obligations
There is no significant judgements involved in ascertaining the timing of satisfaction of performance obligations, in evaluating
when a customer obtains control of promised goods, transaction price and allocation of it to the performance obligations.
Determining the transaction price and the amounts allocated to performance obligations
The transaction price ascertained for the only performance obligation of the Group (i.e. Sale of goods) is agreed in the contract
with the customer. There is no variable consideration involved in the transaction price except for refund due to shortages and
discounts which is adjusted with revenue.
Reconciliation of contract price with revenue recognised in statement of profit and loss:
Contract price 6,07,942 4,97,709
Less: Amount recognised as Discounts / shortages 27,093 26,053
Revenue recognised in statement of profit and loss 5,80,849 4,68,538

Cost to obtain contract or fulfil a contract
There is no cost incurred for obtaining or fulfilling a contract and there is no closing assets recognised from the costs incurred
to obtain or fulfil a contract with a customer.
Note 29: Other Income
31 March 2021 31 March 2020
Interest income from financial assets measured at amortized cost 922 1,048
Fair value loss on financial assets mandatorily measured at fair value through profit or loss (48) -
Net gain on sale of investments #
1,220 2,907
Gain on on disposal of property, plant and equipment* - 3,566
Unwinding of discount on security deposits 113 269
Foreign exchange fluctuation gain (net) 394 -
Other non-operating income 667 1,755
Total 3,267 9,545
#
Includes profit on sale of investment in an associate amounting to ₹ 795 Lakh (31 March 2020: ₹ 2,372 Lakh).
* Includes profit on sale of plot of industrial leasehold land at Dahej,Gujarat in the previous year as part of the strategy to divest non-core assets
amounting to ₹ 3,544 Lakh.
Note 30: Cost of Materials Consumed
31 March 2021 31 March 2020
Raw materials as at the beginning of the year 22,861 25,895
Add: Purchases during the year 2,88,926 2,58,436
Less: Raw material as at the end of the year 22,575 22,861
Total 2,89,212 2,61,470
Note 31: Purchase of Stock-in-Trade
31 March 2021 31 March 2020
Purchases of stock-in- trade 84,351 55,471
Total 84,351 55,471
Note 32: Changes in Inventories of Stock-in-Trade and Finished Goods
31 March 2021 31 March 2020
Opening balance
Total opening balance 29,389 43,406

Closing balance
Total closing balance 22,563 29,389
Total changes in inventories of stock-in-trade and finished goods 6,826 14,017

Note 33: Employee Benefits Expenses
31 March 2021 31 March 2020
Salaries, wages and bonus #

32,132 26,473
Contribution to provident fund & other funds 2,018 2,071
Gratuity (ReferNnote 24) 980 733
Post-employment pension benefits (Refer Note 24) 68 72
Staff welfare expenses 1,315 1,268
Total 36,513 30,617
(#)Salary of ₹ NIL (31 March 2020: ₹163 Lakh) capitalised in property, plant and equipment during the year.
Note 34: Finance Costs
31 March 2021 31 March 2020
Interest cost on financial liabilities measured at amortized cost 24,960 29,939

Less: Interest capitalised (12,466) (9,674)
Finance charges on finance leases 644 793
Increases in the decommissioning liabilities 45 (22)
Interest others 3,525 1,490
Other borrowing costs 2,096 1,726
Exchange differences regarded as an adjustment to borrowing costs (33) 41
Total 18,771 24,293
Note 35: Depreciation and Amortisation Expense
31 March 2021 31 March 2020
Depreciation on property, plant and equipment 18,926 18,892
Amortisation on right of use asset 1,858 1,725
Amortisation on intangible assets 411 736
Total 21,195 21,353
Note 36: Other Expenses
31 March 2021 31 March 2020
Consumption of stores and spares 9,477 7,274
Power, fuel and water* 8,309 6,188
Repairs to :
- Building 706 670
- Plant and machinery 7,085 5,960
- Others 1,705 1,309
Rent 1,277 1,922
Insurance 2,167 1,748
Rates, taxes and duties # 2,379 1,658

31 March 2021 31 March 2020
Travelling and conveyance 529 1,238
Legal and professional fees 3,444 3,390
Payments to auditors (Note 37(a) below) 96 81
Directors' sitting fees 132 69
Carriage outward (net) 19,740 15,502
Warehouse and handling charges 768 1,234
Loss on disposal of property, plant and equipment 562 50
Commission on sales 377 381
Sales and promotion expenses 1,205 1,386
Utility services 1,299 1,294
Communication expenses 57 307
Corporate social responsibility expenditure (Note 37(b) below) 166 67
Bad debts 50 403
Provision for doubtful debts 2,474 801
Provision for doubtful loans 54 37
Foreign exchange fluctuations loss ( net) - 4,270
Miscellaneous expenses @
4,358 3,298
Total 68,416 60,537
* net of reversal of MSEB electricity duty provision of NIL (31 March 2020 : 2,552 Lakhs)
#
net of reversal of provision of local body tax NIL (net of reversal of provision for penalty on entry tax 31 March 2020 : 949 Lakhs)
@
Miscellaneous expenses include ₹ 1,015 Lakhs of Provision for capital work in progress (31 March 2020 : ₹ 575 Lakhs)
Note 37(a): Details of Payments to Auditors
31 March 2021 31 March 2020
Payment to auditors
As auditor:
Audit fee 68 59
Tax audit fee 6 6
Certification fees in the capacity of statutory auditors 14 11
In other capacities
Taxation matters 6 1
Re-imbursement of expenses 2 4
Total 96 81
* Payment to auditors for current year include payment to previous auditor of ₹ 16 Lakhs

Note 37(b): Corporate Social Responsibility Expenditure
31 March 2021 31 March 2020
Contributions to Ishanya Foundation 133 40
Others 33 27
Total 166 67
Amount required to be spent as per Section 135 of the Act 129 289
Amount spent during the year on
(i) Construction/acquisition of an asset -
(ii) On purposes other than (i) above 166 67
Note 37(c): Earnings Per Share (EPS)

Basic EPS amounts are calculated by dividing the profits for the year attributable to equity shareholders of the group by weighted
average number of equity shares outstanding during the year.
Diluted EPS amounts are calculated by dividing the profit attributable to equity shareholders of the group by the weighted
average number of equity shares outstanding during the year plus the weighted average number of Equity shares that would be
issued on conversion of all the dilutive potential Equity Shares into equity shares.
The following reflects the profit and share data used in the basic and diluted EPS computation:
31 March 2021 31 March 2020
Numerator for basic and diluted EPS
Net profit after tax attributable to equity shareholders of parent (₹ in Lakhs) for basic EPS 40,031 8,726
Add: Adjustment for interest on Foreign currency convertible bonds post tax 1,073 -
Net profit after tax attributable to equity shareholders of parent (₹ in Lakhs) for diluted EPS 41,104 8,726
Denominator for basic and diluted EPS
Weighted average number of equity shares for basic EPS 9,65,31,814 9,11,24,605
Add: Adjustment for Foreign currency convertible bonds 83,24,718 -
Weighted average number of equity shares for diluted EPS 10,48,56,532 9,11,24,605
Basic earnings per share of face value of ₹ 10 each (in ₹/share) 41.47 9.58
Diluted earnings per share of face value of ₹ 10 each (in ₹/share) 39.20 9.58

Note 38: Fair Value Measurements
(i) Financial instruments by category
31 March 2021 31 March 2020

through P&L through OCI cost through P&L through OCI cost
Financial assets
Investments
- Equity instruments other than investments in 3 - - 3 69 -
associates
- Mutual funds 44,920 - - 1,011 - -
Trade receivables - - 90,612 - - 1,27,580
Cash and cash equivalents - - 16,959 - - 15,757
Other bank balances - - 7,672 - - 10,169
Loans - - 3,841 - - 3,284
Other financial assets
- Derivative financial assets, not designated as 151 - - 2,045 - -
hedges
- Derivative financial asset, designated as hedges 229 494 - - - -
- Embedded derivative 788 - - - - -
- Others - - 1,939 - - 2,046
Total financial assets 46,091 494 1,21,023 3,059 69 1,58,836
Borrowings - - 2,29,678 - - 2,80,355
Lease Liabilities - - 7,952 - 8,728
Trade payables - - 1,29,676 - - 1,29,449
Other financial liabilities
- Current maturities of long term debt - - 21,666 - - 12,434
- Derivative financial liabilities, not designated as - - - 22 - -
hedges
- Capital creditors - - 10,654 - - 8,141
- Security deposits - - 6,568 - - 5,872
- Interest accrued - - 1,257 - - 2,004
- Embedded derivative 117 - - 170 - -
- Others - - 7,195 - - 5,249
Total financial liabilities 117 - 4,14,646 192 - 4,52,232
(ii) Fair value hierarchy

The following table summarises financial assets and liabilities measured at fair value on a recurring basis and financial
assets that are not measured at fair value on a recurring basis (but fair value disclosures are required) :
The different levels have been defined as follows:
Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
Level 2 - Inputs other than quoted prices included within level-1 that are observable for asset or liability, either directly (i.e.
as prices) or indirectly (i.e. derived from prices).
Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs). Fair values
are determined in whole or in part using a valuation model based on assumptions that are neither supported by prices from
observable current market transactions in the same instrument nor are they based on available market data.

Financial assets and liabilities measured at fair 31 March 2021 31 March 2020
value
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
Financial assets
Financial Investments at FVPL
Equity instruments other than investments in 3 - - 3 3 - - 3

associates
Mutual funds 44,920 - - 44,920 1,011 - - 1,011
Financial Investments at FVOCI - - - - -
Equity instruments - - - - - - 69 69
Derivatives - - - - - -
Foreign exchange forward contracts/options - 151 - 151 - 2,045 - 2,045
Commodity Hedge contract - 723 - 723 - - - -
Embedded derivative - 788 - 788 - - - -
Total financial assets 44,923 1,662 - 46,585 1,014 2,045 69 3,128
Derivatives
Foreign exchange forward contracts/options - - - - - 22 - 22
Embedded derivative - 117 - 117 - 170 - 170
Total financial liabilities - 117 - 117 - 192 - 192
There are no transfers between Level 1, Level 2 and Level 3 during the year ended 31 March 2021 and 31 March 2020.
The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a
current transaction between willing parties, other than in a forced or liquidation sale.
(iii) Valuation technique to determine fair value
The following methods and assumptions were used to estimate the fair values of financial instruments:
a) The management assessed that fair value of cash and cash equivalents, trade receivables, trade payables, bank
overdrafts and other current financial assets and liabilities approximate their carrying amounts largely due to the short-
term maturities of these instruments.
b) The investments measured at fair value and falling under fair value hierarchy Level 3 are valued on basis of valuation
reports provided by external valuers with the exception of certain investments, where cost has been considered as an
appropriate estimate of fair value because of wide range of possible fair value measurements and cost represents the
best estimate of fair values within that ranges.
c) The fair values of investments in mutual fund units is based on the net asset value (NAV) as stated by the issuers of
these mutual fund units in the published statements as at Balance Sheet date, NAV represents the price at which the
issuers will issue further units of mutual fund and the price at which issuers will redeem such units from investor.
d) The Company enters into derivative financial instruments with various counterparties, principally banks. The fair value
of derivative financial instrument is based on observable market inputs including currency spot and forward rate,
yield curves, currency volatility, credit quality of counterparties, interest rate and forward rate curves of the underlying
instruments etc. and use of appropriate valuation models.

Note 39: Financial Risk Management
Risk management framework

The Group’s Board of Directors has overall responsibility for the establishment and oversight of the Group’s risk management
framework.
The Group, through three layers of defence namely policies and procedures, review mechanism and assurance aims to maintain
a disciplined and constructive control environment in which all employees understand their roles and obligations. The Audit
committee of the Board with top management oversee the formulation and implementation of the Risk management policies.
The risk are identified at business unit level and mitigation plans are identified, deliberated and reviewed at appropriate forums.
The Group has exposure to the following risks arising from financial instruments:
- credit risk;
- liquidity risk; and
- market risk.
i. Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counter party to a financial instrument fails to meet
its contractual obligations, and arises principally from the Group’s receivables from customers, loans, investments and
balances with banks.
The carrying amount of financial assets represents the maximum credit risk exposure.
Trade receivables and other financial assets
The Group has established a credit policy under which each new customer is analysed individually for creditworthiness before
the payment and delivery terms and conditions are offered. The Group’s review includes external ratings, if they are available,
financial statements, credit agency information, industry information and business intelligence. Sale limits are established for
each customer and reviewed annually. Any sales exceeding those limits require approval from the appropriate authority as per
policy.
In monitoring customer credit risk, customers are grouped according to their credit characteristics, including whether they are
an individual or a legal entity, whether they are a institutional, dealers or end-user customer, their geographic location, industry,
trade history with the Group and existence of previous financial difficulties.
There is no substantial concentration of credit risk as the revenue and trade receivables from any of the single customer do not
exceed 10% of Group revenue.
Expected credit loss for trade receivables:
The Group based on internal assessment which is driven by the historical experience/ current facts available in relation to default
and delays in collection thereof, the credit risk for trade receivables is considered low. The Group estimates its allowance for
trade receivable using lifetime expected credit loss. The balance past due for more than 6 month (net of expected credit loss
allowance), ₹3,542 Lakhs (31 March 2020: ₹1,009 Lakhs). There is no concentration of credit risk in trade receivables either at
31 March 2021 or 31 March 2020.
Movement in the expected credit loss allowance of trade receivables are as follows:
31 March 2021 31 March 2020
Balance at the beginning of the year 2,310 1,509

Add: Provided during the year (net of reversal) 2,474 1,192
Less: Amount written off - (391)
Balance at the end of the year 4,784 2,310
Expected credit loss on financial assets other than trade receivables:

With regards to all financial assets with contractual cash flows other than trade receivable, management believes these to be
high quality assets with negligible credit risk. The management believes that the parties from which these financial assets are
recoverable, have strong capacity to meet the obligations and hence the risk of default is negligible and accordingly there are
no significant provisions for expected credit loss on these balance financial assets.

ii. Liquidity Risk

Liquidity risk is the risk that the Group will encounter difficulties in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial asset. The Group’s approach to managing liquidity is to
ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and
stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation.
The Group’s treasury department is responsible for managing the short term and long term liquidity requirements. Short
term liquidity situation is reviewed periodically by treasury. Longer term liquidity position is reviewed on a regular basis by
the Board of Directors and appropriate decisions are taken according to the situation.
Exposure to liquidity risk
The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and
undiscounted, and include contractual interest payments.
31 March 2021 Carrying Amount Payable within Between 1 and 5 More than 5 Total
1 year years years

Borrowings 2,51,344 29,317 1,39,894 82,133 2,51,344
Lease Liabilities 7,952 1,333 6,619 7,952
Trade payables 65,069 65,069 - - 65,069
Interest accrued 1,211 1,211 1,211
Security deposits 2,276 2,276 2,276
Capital creditors 10,654 10,654 - - 10,654
Other financial liabilities 11,604 11,604 117 - 11,721
Total non-derivative liabilities 3,50,110 1,21,464 1,46,630 82,133 3,50,227
Interest accrued 46 46 - - 46
Trade payables 64,607 64,607 - - 64,607
31 March 2020 Carrying Amount Payable within Between 1 and 5 More than 5 Total
1 year years years

Borrowings 2,92,789 87,422 1,19,270 86,097 2,92,789
Lease Liabilities 8,728 1,944 6,784 - 8,728
Trade payables 72,101 72,101 - - 72,101
Interest accrued 1,883 1,883 - - 1,883
Security deposits 5,872 5,872 - - 5,872
Embedded derivative 360 190 170 - 360
Foreign exchange forward contracts 22 22 - - 22
Other financial liabilities 5,059 5,059 - - 5,059
Total non-derivative liabilities 3,92,080 1,79,759 1,26,224 86,097 3,92,080
Interest accrued 121 121 - - 121
Trade payables 57,348 57,348 - - 57,348

iii. Market risk
Market risk is the risk that changes in market prices such as foreign exchange rates, interest rates that will affect the
Group’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage
and control market risk exposures within acceptable parameters, while optimising the return.
a. Currency risk
The Group is exposed to currency risk to the extent that there is a mismatch between the currencies in which sales,
purchases and borrowings are denominated and the functional currency of the Group. The currencies in which the
Group is exposed to risk are USD, AED and EUR.
The Group follows a natural hedge driven currency risk mitigation policy to the extent possible. Any residual risk is
evaluated and appropriate risk mitigating steps are taken, including but not limited to, entering into forward contracts.
Exposure to currency risk
(i) The Group’s exposure to foreign currency risk at the end of the reporting period is presented in Note no. 44.
(ii) The sensitivity of profit or loss to changes in the exchange rates arises mainly from foreign currency denominated financial
instruments and forward contracts.
Particulars Impact on profit after tax

31 March 2021 31 March 2020
USD sensitivity
` / USD - appreciated by 1% (31 March 2020 - 1%) 620 736
` / USD - depreciated by 1% (31 March 2020 - 1%) (620) (736)
EUR sensitivity
` / EUR - appreciated by 1% (31 March 2020 - 1%) - 1
` / EUR - appreciated by 1% (31 March 2020 - 1%) - (1)
b. Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. The Group is exposed to interest rate risk because funds are borrowed at both fixed
and floating interest rates. Interest rate risk is measured by using the cash flow sensitivity for changes in variable
interest rate. The borrowings of the Group are principally denominated in rupees and US dollars with a mix of fixed and
floating rates of interest. The Group has exposure to interest rate risk, arising principally on changes in base lending
rate and LIBOR rates. The risk is managed by the Group by maintaining an appropriate mix between fixed and floating
rate borrowings.
Exposure to interest rate risk
The following table provides a break-up of the Group’s fixed and floating rate borrowings:
31 March 2021 31 March 2020
Variable rate borrowings 2,21,666 1,25,158
Fixed rate borrowings 29,680 1,67,631
Total borrowings 2,51,346 2,92,789
(ii) Sensitivity
The sensitivity analysis below has been determined based on the exposure to interest rates for floating rate liabilities
assuming the amount of the liability outstanding at the year-end was outstanding for the whole year.
If interest rates had been 50 basis points higher / lower and all other variables were held constant, the Group’s profit before
tax for the year ended 31 March 2021 would decrease / increase by ₹ 1,108 Lakhs (for the year ended 31 March 2020:
decrease / increase by ₹ 626 Lakhs). This is mainly attributable to the Group’s exposure to interest rates on its variable rate
borrowings.

Note 40: Capital Management
(a) Risk Management
The Group’s objectives when managing capital are to:
- safeguard its ability to continue as a going concern, so that its can continue to provide returns for its shareholders and
benefits for other stakeholders, and
- maintain an optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders,
return capital to shareholders, issue new shares or sell assets to reduce debt.
Consistent with others in the industry, the Group monitors capital on the basis of the following gearing ratio:
Net debt (total borrowings net of cash and cash equivalents and other bank balances) and divided by Total ‘equity’ (as
shown in the Balance Sheet)
The gearing ratios were as follows:
31 March 2021 31 March 2020
Net debt 2,26,713 2,66,863
Total equity 2,79,960 2,22,391
Net debt to equity ratio 0.81 1.20
(b) Dividends
31 March 2021 31 March 2020
(i) Equity shares
Final dividend paid for the year ended 31 March 2020 of ₹ 3 per fully paid equity share 2,679 2,646
(31 March 2019 of ₹ 3 per fully paid equity share)
(ii) Dividend not recognised at the end of the reporting period
In addition to the above dividends, since year end the directors have recommended the 7,701 2,679
payment of a final dividend of ₹ 7.50 per fully paid equity share (31 March 2020 : ₹ 3). The
proposed dividend is subject to the approval of shareholders in the ensuring annual general
meeting.
After the reporting date, the following dividend (excluding dividend distribution tax) has been proposed by the Directors subject
to the approval at the Annual General Meeting; the dividends have not been recognised as a liability. The Finance Act, 2020 in
India has repealed Dividend Distribution Tax (DDT). The Companies are now required to pay/ distribute dividend after deducting
applicable taxes. The remittance of dividends outside India is governed by Indian law on foreign exchange and is also subject
to withholding tax at applicable rates as per Finance Act, 2020.

Note 41(a): Names of the Related Parties and Relationships
A Significant influence over the entity G Key management personnel

1 Nova Synthetic Limited (a) Executive directors
Mr. Sailesh Chimanlal Mehta
B Associates Mr. Yeshil Mehta
1 Ishanya Realty Corporation Limited
(b) Non-executive directors
C Jointly Controlled Entity Mr. Parul Sailesh Mehta
1 Yerrowda Investments Limited Mr. Madhumilan Parshuram Shinde
Mr Tapan Kumar Chatterjee
D Entities over which key managerial personnel are able to exercise Mr. Ashok Shah
significant influence:
1 Nova Synthetic Limited Mr. Rahgunath Kelkar

2 Ishanya Foundation Mr. Amitabh Bhargava
3 Robust Marketing Services Private Limited Mr. K Subharaman
4 Deepak Agro Solution Ltd
E Entities over which relatives of key managerial personnel are able to (c) Non-executive Independent directors
exercise significant influence:
1 Deepak Nitrite Limited Mr. Berjis Minoo Desai

2 Deepak Phenolics Limited Mr. Ashok Kumar Purwaha
3 Ishanya Foundation Mr. Mahesh Ramchand Chhabria (upto 31/07/2020)
Mr. Pranay Dhansukhlal Vakil (upto 21/09/2020)
Mr. Alok Perti
F Relatives of key management personnel Dr. Amit Biswas
1 Ms. Rajvee Mehta Mr. Partha Sarathi Bhattacharyya
Mr. Bhuwan C Tripathi
Ms. Renu Challu (from 13/05/20 to 31/10/2020)
Mr. Sujal Shah (w.e.f 30/06/2020)
Ms. Varsha Vasant Purandare (w.e.f 31/01/2021)
Mr. Sewak Ram Wadhwa
Mr. Urmilkumar Purushottamdas Jhaveri
Mr. R Shriraman
(d) Company Secretary
Mr. K Subharaman (upto 06/11/2020)
Mr. Gaurav Munoli (From 07/11/2020 to 03/02/2021)
Mr. Ritesh Chaudhry (w.e.f 03/02/2021)
Mr. Pankaj Gupta
(e) Chief Finance Officer
Mr. Amitabh Bhargava
The above list includes the Companies with whom the Company has entered into the transactions during the year

Note : 41(b) Consolidated Related Party transactions
Sr. Nature of Transactions 31 March 2021 31 March 2020
No.
Entity Key Relatives Other Total Entity Key Relatives Other Total
with Joint Manage- of Key related with Joint Manage- of Key related
Control ment Manage- parties Control ment Manage- parties
Personnel ment Personnel ment
Personnel Personnel
1 Sale of goods
Deepak Nitrite Limited - - - 7,839 7,839 - - - 7,105 7,105
Mahadhan Farm Technologies Private - - - - - - - - 548 548
Limited*
Deepak Phenolics Limited - - - - - - - - 21 21
2 Rendering of services/reimbursement of
expenses
Ishanya Foundation - - - - - - - - 4 4
Yerrowda Investments Limited 24 - - - 24 - - - - -
3 Interest on loan taken
Deepak Agro Solution Ltd - - - (15) (15) - - - (14) (14)
Robust Marketing Services Private Limited - - - (421) (421) - - - - -
Nova Synthetic Limited - - - (112) (112) - - - - -

4 Asset Sale
Deepak Nitrite Limited - - - - - - 9,925 9,925
5 Purchase of goods and
services
Mahadhan Farm Technologies Private - - - - - - - - (1,017) (1,017)
Limited
Ishanya Foundation - - - (3) (3) - - - - -
6 Receiving of services/
reimbursement of expenses
M P Shinde - (20) - - (20) - (15) - - (15)
Yerrowda Investments Limited - - - - - (86) - - - (86)
7 Donation given
Ishanya Foundation - - - (128) (128) - - - (40) (40)
8 Remuneration & commission (including
perquisites)
Mr Sailesh Chimanlal Mehta - (1,318) - - (1,318) - - - (415) (415)
Mr Yeshil Mehta - (1,077) - - (1,077) - - - (102) (102)

No.
Personnel Personnel
Mr Amitabh Bhargava - (292) - - (292) - - - (316) (316)
Mr K Subharaman - (65) - - (65) - - - (71) (71)
Mr Ritesh Choudhary - (10) - - (10) - - - - -
Mr Pankaj Gupta - (53) - - (53) - - - (44) (44)
Mr Gaurav Munoli - (5) - - (5) - - - - -
Ms. Rajvee Sailesh Mehta - - (30) - (30) - - (26) - (26)
Other directors commission - (292) - - (292) - - - - -
9 Lease rental income
Deepak Nitrite Ltd. - - - 7 7 - - - 7 7
10 Lease rental expenses
Robust Marketing Services Private Limited - - - (99) (99) - - - (76) (76)
11 Loan or Advances Taken
Robust Marketing Services Private Limited - - - 12,500 12,500 - - - - -

Nova Synthetic Limited - - - 7,500 7,500 - - - - -
Deepak Agro Solution Limited - - - - - - - - 265 265
12 Loan or Advances Repaid
Robust Marketing Services Private Limited - - - (12,500) (12,500) - - - - -
Nova Synthetic Limited - - - (7,500) (7,500) - - - - -
13 Shares Allotted in Right Issue
Robust Marketing Services Private Limited - - - 4,917 4,917 - - - 3,333 3,333
Nova Synthetic Limited - - - 7,562 7,562 - - - - -
14 Purchase of equity shares of Mahadhan
Farm
Technologies Limited and Ishanya Brand
Services Limited
Mr. Sailesh Mehta - - - - - - (1,385) - - (1,385)
Ms. Parul Mehta - - - - - - (1) - - (1)
No.
Personnel Personnel
15 Advance paid for Equity Share of Ishanya
Brand Services Limited
Ms. Parul Mehta - - - - - - (3) - - (3)
16 Leasehold improvements (CWIP) to Key - - - - - - 541 - - 541
management personnel
17 Amount outstanding Remunerations payable

Mr Sailesh Mehta - (679) - - (679) - - - - -
Mr Yeshil Mehta - (973) - - (973) - - - - -
Other directors commission - (292) - - (292) - - - - -
Trade receivables
Deepak Nitrite Ltd. - - - 1,390 1,390 - - - 910 910
Yerrowda Investments Limited 8 - - - 8 65 - - - 65
Deepak Agro Solution Limited - - - 5 5 - - - - -
Robust Marketing Services Private Limited - - - - - - - - 3 3
Deepak Phenolics Limited - - - - - - - - 25 25
Deposits Receivables
Mr Sailesh Mehta - 1,500 - - 1,500 - - 1,500 - 1,500
Robust Marketing Services Private Limited - - - 650 650 - - - 650 650
Interest Payable
Deepak Agro Solutions Limited - - - - - - - - (12) (12)
Loan Payable
Deepak Agro Solutions Limited - - - - - - - - (265) (265)
Money received against share warrant
Robust Marketing Services Private Limited - - - - - - - - (4,167) (4,167)
Note : Figures in bracket are outflows.

Management is of the view that all transactions with related parties are in ordinary course and on an arm’s length basis.
*Remuneration doesn’t include sitting fees paid to non-executive directors of ₹ 132 Lakh (31 March 2020 : ₹ 69 Lakh). As the liability of Leave encashment and Gratuity is pro-
vided on Actuarial basis for company as a whole, the said amounts are not included above.
Note :The Company has received Corporate Guarantee from M/s Yerrowda Investments Limited (YIL) (Refer Note 21 point no. 6)

Note 42: Contingent Liabilities and Commitments
31 March 2021 31 March 2020
A. Contingent liabilities
Claims by suppliers not acknowledged as debts* 14,519 37,645
Income Tax Demands 7,295 7,244
Excise/Service Tax/Custom Demands# 5,320 4,798
Sales Tax/ VAT Demands 11,979 6,589
Local Body Tax 2,176 2,176
Penalty on Entry Tax 1,551 1,551
Total 42,840 60,003
B. Capital Commitments
Related to Projects 1,31,072 48,256
Related to Realty 551 601
C. Other Commitments*
Other Commitment 18,824 2,038
Total 1,50,447 50,895
# includes ₹1,881 Lakhs (31 March 2020 : ₹1,881 Lakhs) which pertains to service tax liabilities. Subsequent to the year end, the Holding
Company has received a favourable order from CESTAT against which the department has not gone into appeal.
* During the year, the Holding company has received a letter of waiver from a supplier for offtake liability and consequently, the company now
has to complete its purchase obligation over a period of eight years.
Note 43: Right Issue of Shares

The Holding company has, issued 1,33,92,663 equity shares of face value of ₹ 10/- each (‘Rights Equity Shares’) to the Eligible
Equity Shareholders at.an issue price of ₹ 133 per Rights Equity Share (including premium of ₹ 123 per Rights Equity Share).
There is no deviation in use of proceeds from the objects stated in the Offer document for rights issue.
Following are the details of utilization of proceeds from rights issue raised on October 20, 2020
Purpose for which proceeds are used (Amount ₹ in Lakhs)
1) Repayment of ICD received from related parties 12,500
2) Reduction of the consolidated borrowings of the Holding company by way of issuing an ICD to wholly owned 1,500
Subsidiary, STL, for repayment / prepayment of portion of their outstanding indebtedness
3) General Purpose (as mentioned in the Objects Clause of Letter of Offer dated 11th September 2020) 3,623
Total 17,623

Note 44: Foreign Currency Balances Outstanding

Amount in Foreign Equivalent Amount Amount in Foreign Equivalent Amount
Currency Lakhs (in Lakhs) Currency Lakhs (in Lakhs)
Hedged Position*
Creditors (in USD) 884 64,607 796 60,223
Interest on borrowing (USD) 1 46 2 121
Un-hedged Position
Creditors (in USD) 5 400 35 2,660
Creditors (in EURO) - 41 1 109
Interest accrued (in EURO) - 19 2 171
Creditors (in GBP) - 1 - -
Borrowings and interest (USD) 256 18,755 151 11,445
Exports receivable (in USD) (13) (1,020) (12) (871)
Bank Balance (in USD) #

- - - (12)
#
less than ₹ 50,000/-
*The above transactions are hedged by following derivative contracts

Amount in Foreign Equivalent Amount Amount in Foreign Equivalent Amount
Currency Lakhs (in Lakhs) Currency Lakhs (in Lakhs)
Forward Contracts -USD 297 21,676 53 4,024
Options Contracts - USD 588 42,977 745 56,320
Total 885 64,653 798 60,344
The Group has chosen to not designate the foreign exchange forward contracts and options contracts as hedges under IND AS
109 since these contracts do not meet the Hedge accounting requirements.
Unhedged Foreign Currency exposure is as under:
Particulars Amount in foreign 31 March 2021 Amount in foreign 31 March 2020

currency currency
Payables and borrowings (including interest) 261 19,216 189 14,385
Receivables and bank balances (13) (1,020) 12 883
Note 45: Impact of Hedging Activities

The Holding company is exposed to commodity price risk because the prices of its purchase of Propylene vary as a result of
fluctuations of the natural gas liquid. So, the Holding company has used option contract to hedge its commodity i.e natural gas
liquid. This natural gas liquid consists of Propane and Butane which is formula linked to the prices of propylene.
For Hedges of this commodity purchases, the Holding company entered into a Hedge relationships where the critical terms of
the Hedging instrument match exactly with the terms of the Hedge item. The Holding company therefore performs a qualitative
assessment of effectiveness. There was no ineffectiveness during financial year ended March 31, 2021 in relation to commodity
rate hedge. The Holding company has not entered into any Cash flow Hedge contracts during financial year 2019-20.

A. Disclosure of effects of Hedge accounting on Financial position:
Type of Hedge and risk Gross Notional Carrying amount of Maturity date Hedge Weighted average
amounts of Hedging Hedging instrument ratio strike price
instrument
Cash flow Hedge- Commodity price
risk Units Quantity Asset Liabilities
Propane MT 3000 315 - July 31, 2021 1:4.4 USD 399 USD 351.6
Butane MT 4500 408 - July 31, 2021 1:4.4 USD 398 USD 352.6
B. Disclosure of effects of Hedge accounting on financial performance
Type of Hedge Changes in the Hedge ineffectiveness Amount Line item affected in
value of hedging recognised in profit or loss recognised statement of profit
instrument from Cash Flow and loss because of
recognised in OCI hedging reserve reclassification
to profit or loss
Cash Flow Hedge
Cost of material
Commodity rate risk 1,193 - 698
consumed
C. Movement in cash Flow hedging reserve
Risk category Commodity rate risk

Cash Flow Hedging reserve
As at April 1 , 2020 -
Add: Changes in fair value of commodity hedge contracts 1,193
Less: Amount reclassified to profit or loss 698
Less: Deferred tax relating to above 124
As at March 31, 2021 370
Note 46: Income Taxes

A. Components of Income Tax Expenses
31 March 2021 31 March 2020
I. Tax expense recognised in the statement of profit and loss
Current Tax
Current tax on profits for the year 18,672 381
Total (A) 18,672 381
Deferred tax (credit)/charge (484) 1,026
Total (B) (484) 1,026
Total (A+B) 18,188 1,407
II. Tax on Other Comprehensive Income
Deferred Tax
Loss on remeasurement of defined benefit obligations (243) (334)
Gain on debt instruments through other comprehensive income 107 -
Total (136) (334)

Reconciliation of tax expense and accounting profit multiplied by India’s domestic tax rate 31 March 2021 and 31 March 2020
31 March 2021 31 March 2020
Accounting profit before tax 58,832 10,325
At India's statutory income tax rate of 25.17% (31 March 2020: 25.17%) (A) 14,808 2,599
Effects of non-deductible business expenses (118) 392
Effect of adopting new tax rates from Taxation Laws (Amendment) Act (refer note below) - (520)
Long term capital profit not subjected to income tax (131) (1,157)
Permanent adjustment of PPE Block (165) -
Effect of Depreciation recharges (231) (150)
Impact on current and deferred tax of earlier years (Refer Note 47) 1,259 -
Deferred tax recognized on reasonable certainity (5,652) -
Deferred tax asset reversal on Goodwill 5,617 -
Tax rate difference 2,391 144
Reversal of earlier year tax provision - (103)
Others 410 202
Total (B) 3,380 (1,192)
Income Tax expense reported in the statement of profit or loss (A+B) 18,188 1,407
During the year 2019-20, the Group except Smartchem Technologies Limited (wholly owned subsidiary) decided to exercise the
option permitted under Section 115BAA of the Income Tax Act, 1961 as introduced by the Taxation Laws (Amendment) Act,
2019 from the previous financial year, and the Holding company had reversed deferred tax liabilities amounting to ` 520 Lakhs.
Accordingly, the provision for income tax and deferred tax balances have been recorded/ remeasured using the new tax rate in
2019-20 and 2020-21.
Note 47:
Pursuant to the provisions of Section 132 and 133A of the Income-tax Act, 1961, a Search Operation was conducted by the
Income Tax Department during the period from 15 November 2018 to 21 November 2018.
(a) Block assessment of the Holding company is in progress, assessment orders are awaited. Management is of the view that
this will not have any significant impact on the Holding company’s financial position and performance as at and for the year
ended 31 March 2021 and hence no provision has been recognized as at 31 March 2021.
(b) Material subsidiary company, M/s Smartchem Technologies Limited (STL) filed the application with the Income Tax
Settlement Commission (ITSC) for the earlier years to conclude the final assessment and to avoid protracted and expensive
litigation for these years. The applicable tax and interest paid has been provided for in the financial statements
Note 48: Consolidated Segment Reporting

Sr. Particulars Chemicals Fertilisers Realty Windmill Common Total
No.
1 Revenue
a) External Sales
I) Manufactured 2,65,708 2,17,054 786 253 4,83,801
Previous Year 2,26,200 1,58,553 1,396 745 - 3,86,894
ii) Traded 49,897 46,214 394 - - 96,505
Previous Year 48,155 32,467 765 - - 81,387
b) Inter-segment sales - - - - - -
Previous Year - - - - - -
c) Other operating income 144 399 - - - 543
Previous Year 54 203 - - - 257
d) Unallocated Corporate other income - - - - 3,267 3,267
Previous Year - - - - 9,545 9,545
Total Income 3,15,749 2,63,667 1,180 253 3,267 5,84,116
Previous Year 2,74,409 1,91,223 2,161 745 9,545 4,78,083

Sr. Particulars Chemicals Fertilisers Realty Windmill Common Total
No.
2 Segment Result 74,439 19,751 (1,806) (176) 3,267 95,475
Previous Year 41,358 3,344 (1,428) 353 9,545 53,172
3 Interest - - - - 18,771 18,771
Previous Year - - - - 24,293 24,293
4 Unallocated Corporate expenses - - - - 17,872 17,872
Previous Year - - - - 18,554 18,554
5 Profit before share of (loss) of equity accounted - - - - - 58,832
investees and income tax
Previous Year - - - - - 10,325
6 Other Information
a) Segment Assets 3,93,930 1,73,032 21,937 1,423 1,24,000 7,14,322
Previous Year 3,69,794 2,03,873 22,494 1,663 95,299 6,93,123
b) Segment Liabilities 1,97,644 1,19,642 887 108 1,16,081 4,34,362
Previous Year 2,27,400 1,60,183 3,268 3 79,878 4,70,732
c) Capital Expenditure incurred during the year 10,456 6,134 18 - 1,870 18,478
Previous Year 52,844 3,266 833 - 2,633 59,576
d) Depreciation/ Amortisation 13,101 6,656 1,213 225 - 21,195
Previous Year 10,793 9,241 1,094 224 - 21,353
Segment information
1. Primary segment reporting (by business segments)
Composition of business segment
Segment Products covered

a) Chemicals Ammonia, Methanol, Dilute nitric acid, Concentrated nitric acid, CO2, Technical ammonium nitrate
b) Bulk Fertilisers Iso-propyl alcohol, Propane, Bulk and Speciality Chemical. Nitro phosphate, Mutriate of potash,
Diammonium phosphateAP, Single super phosphate, Sulphur, Micronutrients, SSF, Bio Fertilisers
c) Realty Real Estate Business
d) Windmill Windmill Power
2 Secondary Segment Information: There are no reportable geographical segments since the Group caters mainly to needs
of Indian Markets.
Note 49:
GAIL has claimed a sum of ₹ 357 crores in respect of supply of domestic natural gas for the period July 2006 to May 2014
(inclusive of interest till 2016), alleging usage for manufacture of products other than Urea. As per two contracts entered
into 2006 and 2010 between the subsidiary company, Smartchem Technologies Limited (STL) and GAIL, the purchase of gas
was clearly intended, supplied and utilised for industrial applications. It has been in the full knowledge of the Department of
Fertilisers, Government of India that STL; as per the industrial license, since its inception was never engaged in the manufacture
of Urea and the dispute was referred to Arbitration.
Claims by GAIL were divided into two parts by STL while challenging arbitration. Claim under Gas Sales and Transportation
Agreement of 2006 is non-arbitrable. Similarly, the claim for the period from 2011 to 2013; are barred by limitation. Accepting
STL’s stand, the Arbitration Tribunal has rejected the claims of GAIL vide orders dated 05.09.2017 and 13.12.2017. Thereafter
GAIL filed Arb Appeal (COMM) No. 3/2018 challenging the order dated 05.09.2017 and OMP (COMM) No. 31/2018 before
Hon’ble Delhi High Court, which dismissed both the appeals vide its order dated 20.12.2018 and upheld the order of Arbitrator.

Consequently, GAIL has preferred a Special Leave petition before the Hon’ble Supreme Court against dismissal of Arb Appeal
(COMM) 3/2018 and also preferred an appeal before Divisional bench of Hon’ble Delhi High Court against dismissal of OMP
(COMM) No. 31/2018. Both the petitions are pending adjudication as at the reporting date.
Note 50:
Entry tax liabilities have been classified as provisions (refer Note 24) during previous year.
The management based on legal advise is confident that the demand of Entry Tax to the extent of 9.5% of the purchase price of
the Natural Gas is revenue neutral since full set-off is available under the MVAT Act. The Holding company, therefore, had made
a provision only of 3% of the demand amount including interest. The penalty on the same had been disclosed under contingent
liabilities.
Note 51:
The Code on Social Security, 2020 (‘Code’) relating to employee benefits during employment and post-employment benefits
received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on
which the Code will come into effect has not been notified. The Group will assess the impact of the Code when it comes into
effect and will record any related impact in the period the Code becomes effective.
Note 52: Additional information pursuant to Schedule III of the Companies Act, 2013
Statement of Net Assets and Profit or Loss Attributable to Owners and Non-controlling Interests
F.Y: 2020-21
Name of Entities Net Assets Share in profit or loss Other comprehensive Total comprehensive
income (OCI) income
As % of Amount As % of Amount As % of Amount As % of Amount
consoli- consolidated consoli- consolidated
dated net P&L dated OCI Total com-
assets prehensive
Income
Parent
Deepak Fertilisers And 72% 2,01,094 51% 20,899 (11%) (67) 51% 20,832
Limited
Subsidiaries
Indian
Smartchem Technologies 101% 2,83,988 7% 20,041 (35%) (212) 48% 19,829
Limited
Deepak Mining Services Private 0% (49) 0% (29) 0% - 0% (29)
Limited
SCM Fertichem Limited 0% (88) 0% (65) 0% - 0% (65)
Ishanya Brand Services Limited 0% 253 0% (111) 0% - 0% (111)
Performance Chemiserve 25% 69,979 0% 268 0% - 1% 268
Limited
Mahadhan Farm Technologies 0% 5 0% 118 0% - 0% 118
Private Limited
Foreign
Deepak Nitrochem Pty Limited 0% 26 0% - 0% - 0% -
Platinum Blasting Services Pty 2% 6,238 0% 1,077 95% 573 4% 1,650
Limited
129% 3,60,352 8% 21,299 60% 361 53% 21,660

income (OCI) income
assets prehensive
Income
Non-controlling interests in all 3% 9,701 2% 613 51% 309 2% 922
subsidiaries
Adjustment arising out of (104%) (2,91,187) 39% (2,167) 0% - (5%) (2,167)
Consolidation
Total after elimination on 100% 2,79,960 100% 40,644 100% 603 100% 41,247
account of consolidation
F.Y: 2019-20
income (OCI) income
assets prehensive
Income
Parent
Deepak Fertilisers And 74% 1,63,814 35% 3,071 45% (439) 33% 2,632
Limited
Subsidiaries
Indian
Smartchem Technologies 118% 2,63,259 11% 938 36% (348) 7% 590
Limited
Deepak Mining Services Private 0% (20) 0% (5) 0% - 0% (5)
Limited
SCM Fertichem Limited 0% (22) 0% (2) 0% - 0% (2)
Ishanya Brand Services Limited 0% (36) 0% (34) 0% - 0% (34)
Performance Chemiserve 20% 44,972 4% 317 0% - 4% 317
Limited
Mahadhan Farm Technologies 0% (113) 1% 45 0% - 1% 45
Private Limited
Foreign
Deepak Nitrochem Pty Limited 0% 22 0% (1) 0% - 0% (1)
Platinum Blasting Services Pty 2% 4,062 3% 247 13% (124) 2% 123
Limited
140% 3,12,124 17% 1,505 48% (472) 13% 1,033
Non-controlling interests in all 2% 4,313 2% 175 7% (67) 1% 108
subsidiaries
Adjustment arising out of (116%) (2,57,860) 47% 4,150 0% - 52% 4,150
Consolidation
Total after elimination on 100% 2,22,391 100% 8,901 100% (978) 100% 7,923
account of consolidation

Note 53: Group Informations
Particulars of subsidiaries and joint operation which have been considered in the preparation of the Consolidated Financial
Statements:
Country of Nature of business % Equity interest

incorporation
31 March 2021 31 March 2020
Subsidiaries
Direct
Smartchem Technologies Limited India Manufacturing and Trading 100.00 100.00
Deepak Mining Services Private Limited India Services 100.00 100.00
Deepak Nitrochem Pty Limited Australia Services 100.00 100.00
SCM Fertichem Limited India Farm and Trading 100.00 100.00
Ishanya Brand Services Limited India Trading 100.00 74.99
Indirect
Platinum Blasting Services Pty Limited Australia Services 65.00 65.00
Performance Chemiserve Limited India Manufacturing 88.91 85.64
Australian Mining Explosives Pty Ltd Australia Services 65.00 65.00
Complete Mining Solution Private Limited India Services 100.00 100.00
Mahadhan Farm Technologies Private Limited India Manufacturing and Trading 100.00 100.00
Entity with joint control
Yerrowda Investments Limited India Realty 85.00 85.00
The company has not consolidated its associate, Ishanya Realty Corporation Limited in which it holds 49.99% (` 5 lakhs) as it has not started
its operations yet and does not have any material impact on the consolidated financial statements.
Notes 3 to 53 form an integral part of the Consolidated Financial Statements.




Company Information
C. K. Mehta
Chairman Emeritus
BOARD OF DIRECTORS
MANAGEMENT TEAM
S. C. Mehta AUDITORS
Amitabh Bhargava
Chairman & Managing Director P G BHAGWAT LLP
President – Finance & CFO
Parul S. Mehta Arun Vijayakumar
Non-Executive Woman Director President – Projects SECRETARIAL AUDITOR
M. P. Shinde Debasish Banerjee SVD & Associates
Non-Executive President – Strategic Projects
Non-Independent Director D. S. Ravindra Raju COST AUDITOR
President – Manufacturing Y R Doshi & Company
Partha Bhattacharyya
Mahesh Girdhar (FY 2020-21)
Independent Director
President – Crop Nutrition Business Harshad Deshpande & Associates
Pranay Vakil Naresh Kumar Pinisetti (FY 2021-22)
Independent Director President – Corporate Governance
(Upto 21st September, 2020) INTERNAL AUDITOR
Pandurang Landge
Ernst & Young LLP
Berjis Desai President – Commercials & Strategic
Independent Director Growth
REGISTERED AND
Rajiv Rao
Ashok Kumar Purwaha CORPORATE OFFICE
President – Industrial Chemicals
Independent Director Sai Hira, Survey No. 93,
Romy Sahay
Mundhwa, Pune - 411 036,
Alok Perti President – Human Resource Maharashtra.
Independent Director
Shyam Sharma CIN: L24121MH1979PLC021360
Dr. Amit Biswas President – Strategy & Transformation E-mail: investorgrievance@dfpcl.com
Independent Director Tarun Sinha Website: www.dfpcl.com
Phone: +91 20 6645 8000
President – Technical Ammonium
Bhuwan Tripathi
Nitrate
Independent Director PLANTS:
Renu Challu BANKERS Plot K1, K7-K8,
MIDC Industrial Area,
Woman Independent Director State Bank of India Taloja, A.V. – 410 208,
(Upto 31st October, 2020) Bank of Baroda District Raigad,
Sujal Shah HDFC Bank Limited Maharashtra.
Independent Director IDFC First Bank Limited
(w.e.f. 30th June, 2020) Axis Bank Limited Village Ponnada,
Kotak Mahindra Bank Limited Etcherla Mandalam,
Varsha Purandare IDBI Bank Limited Srikakulam – 532 408,
Independent Woman Director Export Import Bank of India Andhra Pradesh.
(w.e.f. 31st January, 2021) IndusInd Bank
Plot No. 47,
HSIIDC Industrial Estate,
LEGAL ADVISORS Refinery Road,
COMPANY SECRETARY AND
COMPLIANCE OFFICER Crawford Bayley & Co. Panipat – 132 140,
Agarwal Law Associates Haryana.
Ritesh Chaudhry
Zeus Law Associates
Vice President & Head - Legal & Plot No. D - II / 7A,
Hariani & Co.
Secretarial Dahej GIDC Industrial Estate,
Samvad Partners
(w.e.f. 3rd February, 2021) Village Rahiyad, Taluka Vagra
Argus Partners
District Bharuch – 392 130,
Link Legal Gujarat.
Mining Chemicals
Crop Nutrition
Industrial Chemicals

Mundhwa, Pune – 411 036,
Maharashtra, India.
CIN: L24121MH1979PLC021360
www.dfpcl.com

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FUTURE

Deepak Fertilisers And

As part of our transformational journey to become a specialty

We are determined and focused to be the nextgen chemicals

We, at Deepak Fertilisers And Petrochemicals Corporation Limited,

Our goal remains certain to serve and build sustainable futuristic

We are Future Ready.

• Most trusted chemicals and

• Aligned to India’s growth

• Diversified portfolio to meet

• Preferred chemical partner,

02 | Deepak Fertilisers And Petrochemicals Corporation Limited

2 | Deepak Fertilisers And Petrochemicals Corporation Limited

Headquartered in Pune, Maharashtra,

` 406 CRORE - CONSOLIDATED HIGHEST-EVER PROFIT

Annual Report 2020-21 | 3

2ND LARGEST LEADING LARGEST

04 | Deepak Fertilisers And Petrochemicals Corporation Limited

Crop Nutrition Business (CNB)

Technical Ammonium Nitrate (TAN)

Annual Report 2020-21 | 05

Value Added Real Estate

Area Sales Offices

6 | Deepak Fertilisers And Petrochemicals Corporation Limited

Nitro Phosphate Fertiliser, NPK

INDUSTRIAL CROP NUTRITION

• Actively engaged with 65 lakh farmers by the end of

• More than 3.5 lakh+ followers on Facebook, more

08 | Deepak Fertilisers And Petrochemicals Corporation Limited

• Forward integration for finished products required by

• Deployment of specially designed Bulk Mixing and

• Identification of mine and quarry productivity

• Mechanical completion of Ammonia Plant at Taloja,

Annual Report 2020-21 | 09

Revenue from Operations (` in Crores) 4,378 6,062 6,742 4,685 5,808

EBITDA (` in Crores) 473 545 459 464 955

EBITDA margin (%) 10.81 8.99 6.81 9.91 16.45

PAT (` in Crores) 155 164 73 89 406

PAT margin (%) 3.53 2.71 1.09 1.90 7.00

Earnings per share (`) 17.53 18.44 8.01 9.58 41.47

Total Assets (` in Crores) 5,048 6,991 7,118 6,931 7,143

Net Worth (` in Crores) 2,016 2,046 2,098 2,181 2,703

Gross debt to equity (x) 1.00 1.73 1.45 1.34 0.93

Gross debt EBITDA margin PAT margin EPS

* Cautiously consolidated trading portfolio with focus on high-margin products

In an environment of severe - 24% improvement in Top-line efficiencies in Raw Material

preparation and an end-to-end IT enabled Sales The Future Readiness initiatives

Our new Acid complex capex

FY2020-21 has been one of the best

The delivery of profitable growth has

16 | Deepak Fertilisers And Petrochemicals Corporation Limited

Annual Report 2020-21 | 17

Mrs. Mehta receives Mahatma Award for ‘Social Good’ - 2020

This Mahatma award is conferred upon only

‘Indian Achievers Award 2020’ for ‘Chemicals & Petrochemicals

‘Overall Excellence in Logistics ‘Certificate of Appreciation’

Annual Report 2020-21 | 19

21,371 17,861 3,510

Ishanya Foundation (IsFon) Sector-wise family coverage 2020-21