Deepak Nitrite Ltd
Chairman Speech
We have recently signed an MoU with Government of Gujarat for
additional investment of 5,000 Crores in the State of Gujarat to set up Greenfield
Projects of Advance Intermediate Products, Phenol, Acetone and Bisphenol-A. This will be a
big step forward towards making Bharat Aatmanirbhar in manufacturing these materials.
Deepak C. Mehta
Chairman and Managing Director
Dear Stakeholders,
We are pleased to share our 52nd Annual Report for the
Financial Year 2022-23, highlighting Deepak's sustained performance through our
manufacturing expertise, integrated facilities and agile operations. We are committed to
strengthening our financial position and continue to invest in the Company in means that
align with our vision and strategy. Our focus continues to be on building world-class
facilities, innovative products and processes, while balancing market access and cost
optimisation to achieve our goals. While doing so, we remain mindful of fulfilling our
social as well as environmental obligations. The Company believes in growing responsibly
while making an impact in the society. In addition to employee welfare and environment
protection, your Company has consistently supported sustainable livelihoods with better
healthcare facilities and offering education to marginal segments of the society. The
objective is to contribute in a positive way by conserving natural resources while
touching as many lives as possible and making them a part of our growth journey.
SUSTAINABILITY: KEY DRIVER OF INNOVATION
For Deepak, sustainability is neither a corporate social responsibility
nor a cost line-item, rather it is a business imperative that is at the forefront. It
forms a core of what we do and how we grow as an organisation. In the past, we have
received several accolades demonstrating our efforts of growing responsibly by making a
visible change on the ground. Recently, one of our units in Dahej achieved a milestone of
receiving 100% score in its very first attempt in Together for
Sustainability (TfS) Audit conducted by DQS India. This speaks volumes
of our commitment to offer best-in-class solutions to our customers by using sustainable
manufacturing practices. This achievement adds to other steps undertaken such as a
signatory of prestigious ‘Responsible Care', ‘Nicer Globe alliance' as
well as receipt of a silver medal with 60% assessment score from EcoVadis, which is a
leading provider of business sustainability ratings. All this is a testament to our
dedication of achieving the core objectives of people, planet and profit.
We firmly believe that sustainability is the critical ingredient of
organisational and technological innovations that generate positive impact on both
financial performance as well as overall business growth. In-line with this, we are
steadily investing to innovate our product portfolio and expand our process expertise to
deliver sustainable outcomes. We want sustainability and innovation to go hand-in-hand,
which is why we have strengthened our R&D infrastructure with an endeavour to innovate
new compounds, upgrade the existing processes and efficiently recover by-products from
effluents. This is a right move towards a circular economy thereby limiting the damage
caused to the environment.
Your Company is convinced that the creation of value in medium-to-long
term, relies on effective integration of business, social and environmental performance.
This will create sustained shareholder value and will be critical driver to continued
success in the future.
INDIAN ECONOMIC SCENARIO
The Indian economy is poised to be one of the world's
fastest-growing economies, despite global uncertainties and challenges. The International
Monetary Fund (IMF) has revised its growth projection for India in 2023-24 to 5.9%. This
revision is primarily due to expected decrease in consumption and tighter monetary
policies, thereby impacting global growth. Slower consumption growth, coupled with
external factors such as rising borrowing costs and sluggish income growth, is likely to
impact private and Government consumption, as fiscal support measures introduced during
the pandemic are phased out. Nevertheless, the recently presented Union Budget 2023
focusses on stability, sustainable development, inclusive growth and introducing policies
to stimulate demand for various chemicals in sectors such as construction, emission
control, polyurethanes, bio-pesticides and more.
Despite facing challenges on account of after effects of pandemic-led
disruption, the Russia-Ukraine conflict and related supply side shocks, inflation global
monetary tightening, and the Indian economy has demonstrated a resilient recovery across
multiple sectors, positioning itself for a return to the pre-pandemic growth levels in FY
2022-23. India's impressive average growth rate of 7.5% per year over the past two
decades, second only to China's 9.6% growth, further underscores its promising growth
trajectory.
INDIAN CHEMICAL INDUSTRY
Over the last decade, the chemical industry in India has demonstrated
remarkable growth, surpassed expectations and generated substantial wealth for its
shareholders. This impressive foundation has positioned India as a promising contender to
become a leading global hub for chemical manufacturing. The sector's outperformance
has opened up new opportunities in the upstream and downstream industries. Such growth has
been fostered by consistent revenue expansion, increasing profit margins and enhanced
valuations.
The Global Chemical sector is expected to grow significantly from 2021
to 2040, with a strong growth rate of 11 to 12% in the period of 2021-2027 and a 7 to 10%
growth rate from 2027-2040. This growth will triple the sector's global market share
by 2040. India's contribution to global chemical consumption growth is projected to
be over 20% in the next two decades, with domestic demand for chemicals in India surging
from USD 170 billion in 2021 to an impressive USD 850 billion to USD 1,000 billion by
2040. India's chemicals sector is well-positioned to become a preferred destination
for Companies seeking to fortify their supply chains due to its compelling value
proposition and the changing geopolitical landscape. Additionally, India's speciality
chemicals segment, particularly the Agrochemicals and Food and feed ingredient chemicals
subsegments, demonstrates robust performance and strong market attractiveness, with
projected significant growth rates. The Agrochemicals market in India is valued at USD 5.5
billion and is expected to represent nearly 40% of India's total chemicals exports by
2040. The Food and feed ingredient chemicals sub-segment, valued at USD 3 billion,
anticipates a growth rate of 7 to 9%.
Despite global challenges, the Indian chemical industry has shown
resilience and is moving towards becoming a player on the global stage. The industry is a
crucial contributor
The Global Chemical sector is expected to grow significantly from 2021
to 2040, with a strong growth rate of 11 to 12% in the period of 2021-2027 and a 7 to 10%
growth rate from 2027-2040. This growth will triple the sector's global market share
by 2040. India's contribution to global chemical consumption growth is projected to
be over 20% in the next two decades to India's ‘Make in India' and
Atmanirbhar Bharat Abhiyaan initiatives and the recent budget policies are expected to
generate demand for various chemicals. The proposed customs duty rate structure and basic
custom duty changes aim to boost domestic production, exports and the Government's
green initiative programme. Given the industry's role in providing building blocks
and raw materials for many sectors, it will benefit from India's strong macroeconomic
indicators. The Indian chemical sector is now seen as a reliable supplier for global
companies pursuing a China+1 and Europe+1 strategy to de-risk their operations.
India has the potential to become a major player in the global
chemicals industry due to its rapid economic growth, expanding middle-class population and
lower labour costs. The country has demonstrated impressive growth in this sector,
positioning itself as a potential global powerhouse in chemicals manufacturing and
utilisation. Although challenges exist, India's enormous potential should not be
underestimated. It is crucial to harness this potential and strive towards building a
thriving chemicals industry that contributes significantly to the nation's growth and
prosperity.
DNL's GROWTH & PERFORMANCE
In FY 2022-23, your Company exhibited resilient performance, delivering
healthy topline growth driven by stable demand and high plant efficiency products continue
to improve, as we scale new production and delivery volume benchmarks for the portfolio
products.
Despite persistent inflationary pressures, we remain committed to
deliver sustainable profitability and following the core objectives of people, planet and
profit.
Amid operational and macroeconomic challenges, our business model has
proven its strength and resilience backed by immense agility. Incremental investments have
boosted our capacity, while sustained demand from end-user industries has driven growth in
revenue. Notably, Deepak Nitrite has emerged as a dominant player across various business
verticals, with over ~70% of the domestic market share for basic intermediate sodium
nitrate/ nitrite. Its subsidiary, Deepak Phenolics, similarly commands over ~56% of the
market share for Phenol, Acetone & IPA. With sharp focus on import substitution of key
chemicals, the Company has developed specialised expertise and strives for market
leadership.
Our emphasis remains on extending our product portfolio by graduating
new products from our R&D pipeline, thereby sustaining momentum across established as
well as new high-potential chemistries. Our teams have successfully overcome the setback
caused by Nandesari full production capacity and fulfilling supply commitments of
customers. Large-scale investment plans reflect our enthusiasm for the opportunities
created by India's global potential.
We are excited about our prospects and committed to consistently
enhancing the stakeholders' value proposition. The introduction of novel solvents
will diversify our product offering, broaden our clientele and improve our overall value
proposition. Our robust financial position, deep client relationships and towering growth
aspirations position us well for future success.
NEXT PHASE OF DNL
We have announced investment aggregating to 2,500 Crores for expanding
our capacity, enabling assured availability of inputs, backward integration for improved
efficiency, widening of product portfolio and assimilation of new chemistries within our
operations –
• To enhance market share and maintain our leadership position, we
have planned brownfield projects for certain key products. These projects aim to meet the
growing demand and improve the overall business proposition
• A Greenfield exp ansion in Polycarbonate compounding will help
us venture into the Polycarbonate business. This expansion will provide valuable insights
into the market, including niche and major players. It will also enable the catering of
specialised demand in new-age applications such as 5G boxes, EV batteries, medical devices
and more
• Another project focussed on backward integration will
incorporate new chemistry platforms like photochlorination and fluorination, we aim to
reduce supply chain risks in the agro space and expand the range of products using these
chemistries. It will strengthen the backward integration e opportunities capabilities for
key inputs
• The MIBK-MIBC project involves forward integration. These
products are derived from acetone and the objective is to introduce new chemistries
thereby enabling utilisation of a higher proportion of acetone internally to manufacture
MIBK and MIBC. This move enables the production of other downstream value-added products
These projects will contribute to our robust revenue growth, expand its market share,
improve margins, mitigate business risks through a diversified product mix and strengthen
customer and supplier relationships.
The Board has approved an investment of up to 51% of the Equity Share
Capital of Deepak Oman Industries FZC LLC to set up a facility in Oman to manufacture key
chemicals and benefit from low-cost inputs of raw materials and energy to serve global
markets. As global supply chains are being redrawn, we are developing new relationships to
allow more global customers to ‘Depend on Deepak'.
We have recently signed an MoU with Government of Gujarat for
additional investment of 5,000 Crores in the State of Gujarat to set up Greenfield
Projects of Advance Intermediate Products,
Phenol, Acetone and Bisphenol-A. This will be a big step forward
towards making Bharat Aatmanirbhar in manufacturing these materials.
Additionally, we are excited to announce the forthcoming establishment
of a world-class research and technology centre. This state-of-the-art facility will house
versatile pilot plants, compact plants, an environmental laboratory and scalable
technology platforms. We are proud to uphold the trust and expectations of all our
stakeholders and with enthusiasm and humility, we are dedicated to fostering inclusive,
top-quality growth in the short and long term.
VOTE OF THANKS
I express my sincere gratitude to our stakeholders, including
shareholders and investors, for their unwavering support. Our dedicated employees have
played a vital role in achieving our objectives and fulfilling our vision, while the
esteemed Board members has been invaluable. Deepak Nitrite and Deepak Phenolics Limited
have consistently delivered value to customers worldwide, thanks to our productive
workforce.
mor Lookingahead,weareconfident ofseizing and accelerating our growth
trajectory. Our focus remains on maintaining agility to capitalise on changing industry
landscape.
To conclude, we thank everyone for being part of our Company's
prosperous journey. We are honoured to be associated with you as we pursue sustainable
growth and value creation.
Best Regards,
DEEPAK C. MEHTA
Chairman and Managing Director
Executive Director & CEO's Message
DNL is poised to capitalise on the ‘Make in India for the
World' initiative and the growing trend of the China+1 strategy, as a multitude of
opportunities emerge in the industry.
Maulik D. Mehta
Executive Director and CEO
Dear Stakeholders,
During the fiscal year 2023, the operating environment experienced
significant volatility due to the outbreak of the Russia-Ukraine war. This led to
disruptions in global supply chains and a surge in commodity prices, resulting in high
inflationary pressures on inputs. Additionally, the Company Nandesari plant, which caused
around 40-day loss in production and sales. Despite these obstacles, the Company's
business model remained resilient, with incremental investments enhancing throughput and
sustained demand from end-user industries driving growth.
In this backdrop, DNL reported strong double-digit revenue growth and
improved plant efficiencies that will yield consistent bottom line benefits while reducing
the carbon and water footprint of all sites. However, profitability was impacted by lag in
transmission of high input prices, inflationary environment and normalisation of spread in
certain products from exceptional levels in the preceding fiscal. DNL has taken
significant steps to mitigate risks in its business model by ensuring a secured supply of
additional inputs, establishing captive power supply and deriving value from waste.
Moreover, contracted supply arrangements with customers for products from both business
segments provide high visibility for continued growth.
COMMITMENT TO VALUE CREATION FOR STAKEHOLDERS
In FY 2022-23 we asked key stakeholders a question: "how can we
create more value for you?" Their answers prompted us to create succinct value
drivers for 4 pillars i.e. shareholders, customers, people and community and we pledge to
align ourselves with these statements.
In an ever-changing economic landscape influenced by global events
alongside internal challenges, our adept teams successfully navigated through the
uncertainties and evaluated our mission from the perspective of our key stakeholders.
Understanding the valuable investments of resources made by each stakeholder, including
finances, time, business and trust, we pledge to demonstrate their importance by grounds
to ‘Depend on Deepak'.
We remain dedicated to safeguarding the health and well-being of our
employees and the communities we operate in. Our unwavering commitment remains steadfast
on prioritising these 4 pillars:
• Shareholders – We have developed a roadmap based on our
core fundamentals and values, ensuring responsible growth and a clear ‘Right to
Win' by balancing process excellence with high returns on capital. Our focus is on
sustainable and high-quality growth, considering future potential and long-term
strategies.
• Customers – We prioritise responsiveness and leverage our
deep process expertise to become the preferred partner, supplying complex chemicals
manufactured through safe and sustainable practices. We aim to be the first choice for
customers and align our processes with their environmental, social and governance (ESG)
values. We have taken several initiatives by completing a customer insight through
industry expert and initiated on co-developing molecules with customers in the
agrochemical and personal care products.
• People – Our people practices foster agile and adaptive
leaders who build teams driven by action and guided by principles. We reward proactive
action-taking and prioritise doing what is right over adhering to traditional hierarchies.
We have taken several initiatives by appointing best professional agency to ensure
effective and transparent professional growth across the group, an initiative on
Diversity, Equity and Inclusivity which is governed by a fellow member of the Board of
Director, empanelled coaches and co-created programs at all levels with reputed management
institutes,
• Community – We strive to make a positive impact on society,
ensuring that our presence benefits the communities we operate in. We aim to contribute to
the betterment of society rather than merely existing within it.
FINANCIAL PERFORMANCE OVERVIEW – FY 2022-23 persuasive
Despite the challenging macroeconomic conditions, it is heartening to
note that our credibility, strategy and customer wallet share remains intact. Deepak
achieved remarkable growth in its top line performance. Building upon a sturdy base, we
strategically employ gradual capital injections to strengthen processes, enhance
capabilities and meet the ongoing needs of various industries. As a result, we have
achieved remarkable progress, witnessing a 17% year-on-year growth in our overall revenue,
surpassing the milestone of 8,000 Crores in turnover, in contrast to the previous fiscal
year's 6,845 Crores. This growth can be attributed to the Company's ability to
maintain stable demand and maximise plant efficiency. EBITDA for the year stood at 1,337
Crores, reflecting a 19% decrease compared to the previous year mainly due to very high
input cost, particularly of commodity building blocks. These results are to be viewed in
light of the impact of ongoing war, sharp rise in commodity prices and consequent rise in
input prices, leading to inflationary pressures.
Furthermore, the global supply chain for crude, fertilisers,
petrochemical derivatives and speciality chemicals had been especially disrupted due to
the Russia-Ukraine conflict, further impacting the Company's performance.
Segmental Highlights
In line with Ind AS 108 guidelines, we have combined our strategic
business units. As a result, our Group's activities are now categorised into two
segments: Advanced Intermediates and Phenolics. Over the course of the year, both segments
showcased noteworthy improvements, resulting in impressive financial expansion as a
collective entity. Despite the challenges presented by the surroundings, the growth was
attained through increased demand and a positive reception of our fundamental offerings.
DNL remains unwavering in its dedication to nurturing development and expanding its
endeavors to seize promising opportunities.
• Advanced Intermediates –
In the fiscal year 2023, our revenue experienced a remarkable growth of
21% to reach 3,074 Crores.
Despite the current challenging circumstances, we managed to achieve an
EBIT of 555 Crores, resulting in a margin of
18%. The Advanced Intermediates unit particularly stood out with its
impressive revenue growth, driven by strong demand from end-user industries.
During the year, we actively pursued opportunities with both domestic
and international customers. Given the global shift in the supply chain towards Asia and
positive demand trends, we anticipate this segment to continue its strong performance.
However, it is important to acknowledge the hurdles we face in terms of logistics, which
may cause delays in passing on the prices.
Looking ahead, our future performance will be influenced by several
factors, including new multiyear contracts, successful pilot projects and the introduction
of new products in our portfolio.
• Phenolics –
In FY 2022-23, Deepak Phenolics reported a healthy financial
performance, with revenue reaching 4,986 Crores and EBITDA amounting to 712 Crores, the
Company achieved a margin of 14%. This success was primarily driven by improved plant
efficiency, leading to a significant increase in volume for the phenolics division.
The phenol plant showcased exceptional performance, achieving an
average utilization rate well over 120% for the year. Continued process improvement
through the year supported by the captive power plant, resulted in the highest-ever
quarterly domestic sales in Q4, along with the highest daily production of phenol. The
impressive growth in volume was primarily attributed to improved acceptance of the
Company's products and improved operational efficiency. Notably, both Phenol and
Acetone experienced a significant increase in revenue realisation compared to the previous
quarter.
Furthermore, the phenolics division plans to enhance its downstream
products. With the upcoming implementation of projects like MIBC and MIBK, which are
solvents, the utilisation of acetone is expected to increase further. Overall, the Company
remains optimistic about the future prospects of its phenolics business.
KEY DEVELOPMENTS & GROWTH INITIATIVES
FY 2022-23 has proven to be a transformative year for us, as we have
witnessed the realisation of several growth initiatives.
A significant milestone for Deepak Phenolics has been the successful
implementation of debottlenecking measures, a crucial development that will bolster our
production capabilities. This enhancement is set to commence within the current quarter,
ensuring a swift and efficient integration. Furthermore, we have greenlit an advanced
process control project, which is expected to go live in the subsequent quarter. We have
taken several steps to improve our sustainable profitability by adding new products and
debottlenecked existing plants. This initiative holds the potential to amplify operational
efficiency and elevate product quality, further solidifying our market position and
bolstering our competitive edge.
In addition to these accomplishments, we are actively pursuing various
other ventures to expand our business horizons. Our SAC unit, a recent installation aimed
at enhancing sustainability in Nandesari, has been successfully commissioned, marking a
significant step forward. Looking ahead, we are planning to implement the
photochlorination and chlorination project in the third quarter, followed by the acid
project in the fourth quarter.
These endeavours will effectively cater to our present and future
requirements. By the first quarter of FY 2024-25, we anticipate the commissioning of our
MIBK and MIBC plants, which, as previously mentioned, are derived from acetone. Moreover,
the approval for our hydrogenation and multipurpose distillation facility signifies
further progress in our expansion endeavours.
in Additionally, it should be emphasised that DNL's subsidiary,
Deepak Chem Tech Limited ("DCTL"), has been proactively bolstering its workforce
by recruiting essential personnel across departments including project management,
procurement and support functions. DNL has allocated 400 Crores to DCTL to part finance
the ongoing capital projects undertaken by the Group.
During the year, we have taken substantial measures to mitigate
business risks, such as ensuring a consistent supply of critical raw materials and
actively reducing debt to fortify our financial position. With the Nandesari plant
operating at full capacity and other facilities operating at high utilisation rates, our
momentum remains strong. As we gear up to commission multiple plants in the forthcoming
quarters, we are poised to deliver growth and generate value for our esteemed
shareholders. Acknowledging this, the Board of Directors has announced a final dividend of
7.50 per equity share, representing a remarkable 375% return on the face value of 2.00
each for the fiscal year 2022-23, in recognition of the Company's steady performance.
SUSTAINABILITY AT THE FOREFRONT FOR DNL
Our Company is committed to a sustainable future and we have
implemented various measures to reduce our carbon and water footprints. Additionally, we
have found innovative ways to transform by-products into valuable compounds. These
initiatives have been recognised by prestigious awards, such as being named "The Best
Compliant Company for the Codes Under Responsible Care" by the Indian Chemical
Council and receiving the Divya Bhaskar Pride of Gujarat award for "The Most
Responsible Company." As proud signatories of Responsible Care, Together for
Sustainability (TfS)) and Nicer Globe, we prioritise environmental, health and safety
guidelines. Deepak Nitrite is dedicated to responsible chemistry and the creation of
At Deepak Nitrite, we understand the risks associated with a
constrained production process, including operational errors and warehousing
misjudgements. To address this, we have taken on greater responsibility for developing and
implementing automation and plant safety standards. These measures aim to minimise errors
and ensure a safe working environment. Our commitment to quality, environmental standards,
human resource management and efficiency in hazardous and complex chemical processes has
made us a trusted supplier for major global customers.
We are pleased to share that our Dahej facility achieved a remarkable
score of 100 out of 100 in the Together for
Sustainability Audit, in the first attempt. It's worth noting that
Together for Sustainability (TfS) is the European counterpart to
Responsible Care, an esteemed institution in the United States. TfS is highly regarded by
large European, Japanese and American companies. We are confident that this milestone will
inspire many more companies to follow suit and strive for excellence in sustainability.
FUTURE OUTLOOK
DNL is poised to capitalise on the ‘Make in India for the
World' initiative and the growing trend of the China+1 strategy, as a multitude of
opportunities emerge in the industry. With a lineup of projects worth around 25 billion
spanning its core product lines,
DNL is clearly dedicated to continuous growth and enhancing value. By
utilising its strong manufacturing infrastructure and extensive expertise in chemistry,
DNL has become a vital partner for major Indian and international conglomerates.
Positioned strategically, DNL is well-equipped to achieve incremental
advantages in both its segments by implementing key projects scheduled for the upcoming
year. These projects include expanding the capacity of specific products through
brownfield projects, enhancing backward integration capabilities to boost margins and
ensure a reliable supply, developing valuable downstream derivatives like solvents derived
from Phenol and Acetone, establishing new chemistry platforms for photo chlorination and
fluorination, investing in a asset to cater to the diverse needs of India's 5G,
electronics, EVs and medical devices industries and creating innovative products that
leverage highly efficient chemistries end-user industries.
Our focus is on implementing a pioneering growth strategy centred
around a robust platform. This strategy entails directing investments towards our existing
customers and businesses, utilising our current assets as a foundation for new value-added
products. By incorporating specialised balancing equipments, we aim to achieve high return
on capital employed (ROCE) targets.
Additionally, we are excited to announce the forthcoming establishment
of a world-class research and technology centre. This state-of-the-art facility will house
versatile pilot plants, compact plants, an environmental laboratory and scalable
technology platforms. We are proud to uphold the trust and expectations of all our
stakeholders and with enthusiasm and humility, we are dedicated to fostering inclusive,
top-quality growth in the short and long term.
Furthermore, I want to take this opportunity to thank all our investors
and stakeholders for their continuous commitment and confidence.
Best Regards,
Maulik D. Mehta
Executive Director and CEO
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Deepak Nitrite Ltd
Directors Reports
Dear Shareholders,
Your Directors have pleasure in presenting the Fi_y First (51st) Annual
Report and the second Integrated Report of Deepak Nitrite Limited (‘your
Company' or ‘the Company') along with the Audited Financial Statements for
the Financial Year (‘FY') ended March 31, 2022. The consolidated performance of
the Company and its subsidiaries has been referred to wherever required.
FINANCIAL RESULTS
Your Company's financial performance for the year ended March 31,
2022 is summarised below:
|
|
|
|
(Rs in Crores) |
| Particulars |
Standalone |
Consolidated |
|
2021-22 |
2020-21 |
2021-22 |
2020-21 |
| Total Revenue (Gross) |
2,581.85 |
1,822.68 |
6,844.80 |
4,381.27 |
| Operating Profit Before Depreciation, Finance Cost, |
716.15 |
549.61 |
1,646.19 |
1,268.55 |
| Exceptional Item and Tax (EBITDA) |
|
|
|
|
| Less: Depreciation and Amortisation expenses |
72.54 |
66.88 |
177.70 |
152.63 |
| Less: Finance Costs |
1.60 |
4.12 |
34.04 |
74.20 |
| Profit before Tax |
642.01 |
478.61 |
1,434.45 |
1,041.72 |
| Less: Tax expenses |
155.80 |
123.89 |
367.81 |
265.91 |
| Net Profit for the Year |
486.21 |
354.72 |
1,066.64 |
775.81 |
| Other Comprehensive Income |
0.06 |
(1.30) |
0.17 |
(1.07) |
| Total Comprehensive Income for the Year |
486.27 |
353.42 |
1,066.81 |
774.74 |
| Surplus brought forward from previous year |
1,288.07 |
934.73 |
1,789.97 |
1,015.31 |
| Balance available for Appropriation |
1,774.54 |
1,288.07 |
2,856.98 |
1,789.97 |
Your Company continues to take precautions at all facilities and
offices and has complied with all prescribed norms while operating its facilities during
the Financial Year to ensure safety and well-being of employees. Deepak Nitrite continues
to prioritise the health and well-being of its associates and the communities it serves
and has strived to ensure that all of its employees and their families are completely
vaccinated. The Company is proud to claim a 100% vaccination record across its operations.
Without doubt, your Company's business model has been put to test
by the ongoing global pandemic. The fundamental characteristics of placing the customer
first, focusing on high quality of product and efficient execution, diversified operations
as well as committed and motivated manpower have enabled the Company to navigate the
uncertainties and emerge stronger through the unprecedented challenges.
PERFORMANCE REVIEW
Standalone
Your Company performed well amid a challenging macro environment,
maintaining its performance momentum during the Financial Year 2021-22. Aside from the
instability induced by the second wave of Covid-19 in India, the operational performance
was marked with rising input and energy costs, fluctuating foreign exchange rates, inbound
and outward logistic constraints coupled with higher logistics costs, owing to various
macroeconomic and geo-political reasons. Your Company has leveraged its manufacturing
expertise, large facilities and nimble operations to ensure efficient performance backed
up with a strong financial position. Further, your Company has undertaken several Project
investments to accelerate its growth momentum going forward.
The economic ramifications of the Ukraine-Russia conflict are being
felt around the world. Every commodity, from oil to cereals to chemicals, is facing a
price increase owing to disrupted supply chains. Chemical sector had just turned around
after gaining ground from Covid-19 induced disruptions. However, the Russia-Ukraine
stand-o_ has emerged as a cause of concern for the sector, as availability of several key
building blocks is constrained leading to impact on margins for key industry participants
in the near future. Substantial impact is arising on account of the sharp rise in the
prices of crude oil which is a key raw material for many players. Sanctions on commodities
formerly exported from Russia, voluntary export limits, and measures to reduce oil and gas
imports will all have an impact on global trade. If the war persists, established trade
channels may be significantly destabilised leading to trade flows getting significantly
reshaped.
Notwithstanding these challenges, Deepak Nitrite's business
performance has been strong, with Y-o-Y growth in all its Strategic Business Units
('SBUs') towards the end of the year. In FY 2021-22, total revenue, including
other income, was _ 2,581.85 Crores, up from _ 1,822.68 Crores in FY 2020-21, a 42%
increase. EBITDA for FY 2021-22 was _ 716.15 Crores, up 30% from _ 549.61 Crores in the
previous year. In FY 2021-22, Profit Before Tax (‘PBT') was _ 642.01 Crores, up
from _ 478.61 Crores in FY 2020-21, a 34% increase. Profit A_er Tax (‘PAT') was
_ 486.21 Crores in FY 2021-22, up 37% from _ 354.72 Crores the previous year.
The first half of FY 2021-22 witnessed contrasting business challenges,
with strong demand at the outset succumbing to sharp rises in raw material, utility, and
logistics costs. Within this backdrop, the Company's efforts to focus on cost
management and operational excellence enabled to alleviate the worst of the volatility.
Across all businesses, your Company has endeavored to maintain and grow its market share
while sustaining or increasing its profitability. During the year, depreciation and
finance costs amounted to _ 72.54 Crores and _ 1.60 Crores, respectively. Your Company is
net debt-free as of March 31, 2022, and its operational surplus of _ 436.79 Crores is
invested in liquid mutual funds, which offer liquidity, stability, and greater yields.
Domestic revenues grew by 52% to _ 1,454.16 Crores in FY 2021-22, from
_ 954.25 Crores in FY 2020-21, owing to consistent demand from key end-user industries,
also bolstered by targeted initiatives on the product-mix front. Domestic requirements for
chemical intermediates are on an upswing, presenting new opportunities for companies like
yours. While Export revenue came in at _ 1,056.89 Crores, up from _ 854.89 Crores recorded
in the previous year. Export performance was driven by focused approach while several
countries where customers are located, were experiencing faster return to normalcy with
positive demand trajectory. Moreover, international customers are reinforcing their supply
chains and are seeking a strategic shi_ from a philosophy of ‘just in time' to
‘just in case' – a move that benefits your Company's wide portfolio of
key intermediates.
Your Company has the potential to take advantage of the situation and
accelerate in the medium term to long term. With its unique product mix and several
decades of manufacturing experience, Deepak Nitrite is an outstanding candidate to lead
the India's chemical manufacturing trend. This, combined with contributions from existing
brownfield expansions and upcoming greenfield projects with value added forward
integration, will strengthen the competitiveness and places your Company aptly to grow its
market share, thereby generating value for all stakeholders.
Deepak Phenolics Limited
Deepak Phenolics Limited (‘DPL'), is a wholly owned material
subsidiary of your Company, engaged in business of manufacture of Phenol, Acetone, Cumene
and Isopropyl Alcohol ('IPA').
FY 2021-22 started with very good demand for Phenol and Acetone, and
prices remained buoyant on the back of regional manufacturing disruptions and at the same
time strong demand in global markets. Though, global markets su_ered by trade conflicts,
unavailability of vessels, political uncertainties, heightened volatility in commodity
prices, demand for chemical and petrochemical products witnessed significant increase,
especially in Indian sub-continent, with crude oil prices started climbing to new levels
and by start of third quarter of the Financial Year, crude oil prices crossed hundred US
dollar mark. Other commodity prices in non-ferrous and ferrous metals segments climbed to
highest ever levels mainly due to Russia and Ukraine war followed by plethora of sanctions
imposed by US and EU on Russia.
With healthy demand across all applications for all products of DPL and
highest ever prices of Phenol and Acetone, DPL has demonstrated encouraging performance on
sustained basis in FY 2021-22, despite the challenges pertaining to feedstocks as well
Covid-19. In FY 2021-22, DPL reported Revenues of _ 4303.42 Crores as against _ 2563.48
Crores in FY 2020-21 with Profit After Tax of _ 624.36 Crores in FY 2021-22 as against _
421.16 Crores in FY 2020-21, registering a growth of 68% and 48%, respectively. Phenol
business demonstrated encouraging performance on a sustained basis, largely attributable
to strong demand in India and excellent operations carried out by the team. DPL also
exported smaller quantities to high-demand markets. Inspite of steep challenge posed by
peak of second wave of Covid-19, especially in availability of logistics and manpower, the
facility continued to operate at high utilisation level.
As the next phase of growth is undertaken with deployment of _ 700
Crores, the Group's product mix is expected to change to more specialised products,
both upstream and downstream, with higher captive consumption of both Phenol and Acetone.
The value chain integration of chemical intermediates is expected to result in increased
value addition.
In a key development, the brownfield expansion of IPA has been
successfully completed in December, 2021. As a result, the capacity for IPA has doubled to
60,000 MTPA. DPL is on the right track of becoming a diversified chemical major, where the
business trajectory will continue to endure, with focus on innovation. DPL aims to become
a world-class supplier of solvents, which are well integrated with its wide product basket
and process competencies.
Consolidated
Your Company's total revenue, including other income, was recorded
at _ 6,844.80 Crores in the Financial Year 2021-22, gaining 56% from _ 4,381.27 Crores in
the previous year. This was attributable to recovery in standalone operations, across all
segments, which was aided by DPL's significantly improved performance. Even though
several end-user industries were yet to recover to pre-Covid levels of activity, the
Company and DPL have actively catered to both domestic and overseas markets to drive
higher volumes and capitalise on favourable realisation trends. Against this backdrop,
your Company has implemented its operational plan effectively and efficiently, as well as
met its supply commitments, ensuring reliable and predictable deliveries to customers.
Overall, the Group has been responsive to maximise the benefits of improved operating
environment.
In FY 2021-22, EBITDA was _ 1,646.19 Crores, up 30% from _ 1,268.55
Crores in FY 2020-21. The improved operating performance in the current year-to-date has
driven EBITDA.
Profit Before Tax (‘PBT') stood at _ 1,434.45 Crores as
compared to _ 1,041.72 Crores in FY 2020-21, while Profit A_er Tax (‘PAT') came
in at _ 1,066.64 Crores as compared to _ 775.81 Crores in FY 2020-21, representing a
strong growth of 38% and 37% respectively. Even though the economy is still recovering
from the effects of various macro-economic and geo-political factors including the
pandemic, the Company was able to report accelerated PAT performance. Depreciation and
Finance costs during the year stood at _ 177.70 Crores and _ 34.04 Crores, respectively.
Domestic Revenues stood at _ 5,272.15 Crores from _ 3,088.06 Crores in
FY 2020-21, up by 71%, while Revenue from Exports grew by 20% to _ 1,530.04 Crores as
compared to _ 1,271.69 Crores last year. Overall, the demand outlook appears to be robust,
with most industries returning to pre-COVID production levels and incremental demand
resulting from a strategic shi_ in the global supply chain from China and Russia to other
countries, including India. As a result of increasing dependence on India, your Company is
optimistic about manifold opportunities that have emerged and is well poised to capitalise
these prospects.
DIVIDEND
Based on the Company's healthy performance, the Board of Directors
of your Company is pleased to recommend a Dividend of _ 7/- (Rupees Seven only) per Equity
Share of _ 2/- (Rupees Two only) each for the year ended March 31, 2022. The total
Dividend outgo amounts to _ 95.48 Crores.
The Register of Members and Share Transfer Books of the Company will
remain closed from Wednesday, July 27, 2022 to Wednesday, August 3, 2022 (both days
inclusive) for the purpose of payment of the Dividend for the Financial Year ended March
31, 2022 and 51st Annual General Meeting of the Company.
Pursuant to the Finance Act, 2020, Dividend income is taxable in the
hands of the shareholders effective from April 1, 2020 and the Company is required to
deduct tax at source from Dividend paid to the Members at prescribed rates as per the
Income Tax Act, 1961.
According to Regulation 43A of the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015 (‘Listing Regulations'), top 1,000
listed entities based on market capitalisation, calculated as on March, 31 of every
Financial Year are required to formulate a Dividend Distribution Policy which shall be
disclosed on the website of the listed entity and a weblink shall also be provided in
their Annual Reports. Accordingly, your Company has adopted the Dividend Distribution
Policy and the same can be accessed using the following link:
https://www.godeepak.com/investor-compliances/.
TRANSFER TO RESERVES
The Board of Directors has decided to retain the entire amount of
profit for FY 2021-22 appearing in the statement of profit and loss.
SHARE CAPITAL
The issued, subscribed and paid-up Equity Share Capital of the Company
as on March 31, 2022 was _ 27.28 Crores comprising of 13,63,93,041 Equity Shares of _ 2/-
each. The Company has not issued any Equity Shares during FY 2021-22. There was no change
in Share Capital during the year under review.
FINANCE
Your Company aims to maintain a reasonable amount of debt while
balancing its capital structure on a consolidated level while adhering to strict criteria
to efficiently manage its working capital requirements.
Though the Company has remained net debt free, sound credit rating has
helped the Company in its activities like sourcing, bank charges etc. Owing to additions
of certain Property, Plant, and Equipment, there has been increase in depreciation during
the year under review. Your Company has a specialised professional team that monitors
foreign exchange exposure and dynamically reduces the risk associated with it. Your
Company has been able to manage its cash flow position effectively, thanks to the
team's dynamic and proactive management. On a Standalone basis, Net Debt: Equity as
on March 31, 2022, has been nil same as last year.
Your Company is well placed in the industry, delivering quality guided
by a robust product mix. Thus, on the back of steady performance during the year, ICRA has
rea_irmed the long-term credit rating at "ICRA AA/Positive" (from "ICRA
AA/Stable") while the short-term rating of the Company remains at the highest level
at A1+. This is primarily owing to the Company's sustainable business performance,
ability to cater to varied end use segments, diversified product portfolio, constant
improvement and efficient operations.
During FY 2021-22, the Company had obtained approval from the
shareholders by passing Special Resolution through Postal Ballot on January 27, 2022, for
raising of funds in one or more tranches, by issue and allotment of equity shares and/or
eligible securities by way of Qualified Institutions Placement ("QIP") for an
aggregate amount upto _ 2,000 Crores. Considering the volatile capital market and since
the Special Resolution is valid for one year, your Company will launch the QIP at an
appropriate time for raising funds.
In case of the Company's wholly owned subsidiary, Deepak Phenolics
Limited, ICRA has upgraded the long-term credit rating by one notch i.e. from "ICRA
AA-/Stable" to "ICRA AA/Positive" and rea_irmed the short term credit
rating at "ICRA A1+" which is the highest rating in short term category.
During the year, DPL has pre-paid substantial part of its borrowing
apart from honouring committed repayments. Pursuant to this, consolidated Net Debt /
Equity ratio is nil as of March 31, 2022 compared to 0.15x as of March 31, 2021.
DIRECTORS AND KEY MANAGERIAL PERSONNEL
In accordance with the provisions of Section 152 of the Act, Shri Ajay
C. Mehta (DIN: 00028405) and Shri Sanjay Upadhyay (DIN: 01776546) retire by rotation at
the ensuing Annual General Meeting of the Company and being eligible, offered themselves
for re-appointment. The Board recommends their re-appointment.
The Members of the Company at their 50th Annual General Meeting held on
July 30, 2021, approved:
(a) re-appointment of Shri Maulik Mehta (DIN: 05227290) as the
Executive Director & Chief Executive Officer of your Company for further period of
five (5) years with effect from May 9, 2021.
(b) continuation of directorship of Dr. Richard H. Rupp (DIN: 02205790)
as an Independent Director of the Company beyond the age of seventy five (75) years in
terms of Regulation 17 (1A) of the Listing Regulations.
During the year under review, Shri Sanjay Upadhyay (DIN: 01776546) has
been re-appointed as the Director (Finance) & Chief Financial Officer of the Company,
for further period from April 28, 2022 up to July 31, 2026, subject to approval of Members
of the Company.
The Board of Directors at their meeting held on May 4, 2022 considered
and approved the appointment of Shri Meghav Mehta (DIN: 05229853) as an Additional
Director (Non-Executive Non-Independent) of the Company with effect from May 4, 2022.
Independent Directors
Based on the recommendations of Nomination and Remuneration Committee,
the Board of Directors, at their meeting held on May 4, 2022, recommended to the Members
of the Company for their approval, by way of Special Resolution through Postal Ballot,
re-appointment of Shri Sanjay Asher (DIN: 00008221) and Smt. Purvi Sheth (DIN: 06449636)
as Independent Directors of the Company for the second term of three (3) consecutive years
with effect from June 28, 2022.
The Board of Directors at their meeting held on May 4, 2022 and based
on recommendations of Nomination and Remuneration Committee also recommended to the
Members of the Company for their approval, by way of Special Resolution through Postal
Ballot, appointment of Shri Punit Lalbhai (DIN: 05125502), Shri Vipul Shah (DIN: 00174680)
and Shri Prakash Samudra (DIN: 00062355) as Independent Directors of the Company for a
term of three (3) consecutive years with effect from August 8, 2022.
Pursuant to the provisions of Section 149 of the Companies Act, 2013
(‘the Act') Independent Directors of the Company have submitted declarations
that each of them meets the criteria of independence as provided in Section 149 (6) of the
Act along with Rules framed thereunder and Regulation 16 (1) (b) of the Listing
Regulations. There has been no change in the circumstances affecting their status as
Independent Directors of the Company during the year ended March 31, 2022.
During the year under review, the Non-Executive Directors of the
Company had no pecuniary relationship or transactions with your Company, other than
receipt of sitting fees for attending meetings of Board or Committees thereof, commission
on net profits as approved by the Members of the Company and reimbursement of expenses
incurred by them for attending meetings of Board or Committees thereof.
Shri Deepak C. Mehta is also the Chairman & Managing Director of
the Company's wholly owned subsidiary, DPL. As per the terms of his appointment, he
is entitled to receive remuneration from DPL by way of commission on net profits of DPL
calculated in accordance with the provisions of Section 198 of the Act. The aggregate
remuneration of Shri Deepak C. Mehta from the Company and its wholly owned subsidiary
shall always be in accordance with Section V of Part II of Schedule V to the Act.
KEY MANAGERIAL PERSONNEL
Pursuant to provisions of Section 203 of the Act, Shri Deepak C. Mehta,
Chairman & Managing Director, Shri Maulik Mehta, Executive Director & CEO, Shri
Sanjay Upadhyay, Director (Finance) & CFO and Shri Arvind Bajpai, Company Secretary
& Compliance Officer are the Key Managerial Personnel of the Company as on March 31,
2022. There has been no change in the Key Managerial Personnel of the Company during the
year ended March 31, 2022.
NUMBER OF MEETINGS OF THE BOARD AND COMMITTEES OF THE BOARD
During FY 2021-22, five (5) meetings of Board of Directors of the
Company were held. The maximum time gap between any two meetings was not more than 120
days, as prescribed by the Act and Listing Regulations. For details of meetings of the
Board of Directors and Committees with regard to the dates and attendance of each of the
Directors thereat, please refer to the Corporate Governance Report, which is a part of
this Annual Report.
BOARD EVALUATION
Pursuant to the requirement of the Act and the Listing Regulations and
upon recommendation of the Nomination and Remuneration Committee, the Board has adopted a
Performance Evaluation Policy specifying the criteria for effective evaluation of Board,
its Committees and individual Directors. The performance evaluation criteria for
Independent Directors are also provided in the Performance Evaluation Policy as adopted by
the Board.
The process of performance evaluation is in line with the provisions of
the Act and the Listing Regulations, and the Board has carried out an annual evaluation of
its own performance, its Committees and individual Directors, based on the criteria as
provided in the Performance Evaluation Policy.
The performance of the Independent Directors was evaluated by the
entire Board without the presence of Independent Director being evaluated at their meeting
held on May 4, 2022. Based on such evaluation, the Board is of the view that all
Independent Directors are having thorough knowledge, expertise and experience in their
respective areas. They also have very good understanding of the Company's business
and the general economic environment it operates. They devote quality time and full
attention to understand key issues relating to business of the Company and advising on the
same. Their valuable contribution has certainly improved the governance standards within
the Company.
The criteria for evaluation of performance of Independent Directors
are:
a Relevant Knowledge, Expertise and Experience.
a Devotion of time and attention to the Company's long term
strategic issues.
a Addressing the most relevant issues for the Company.
a Discussing and endorsing the Company's strategy
a Professional Conduct, Ethics and Integrity.
a Understanding of Duties, Roles and Function as Independent Director.
The performance of the Committees was also evaluated by the Board after
seeking inputs from the Committee members. Based on such evaluation, the Board is of the
view that various Committee of Directors are well constituted by way of having optimum
number of Independent Directors with precise Terms of Reference/Charter. The respective
Committees actively discussed various matters and effective suggestions were made
concerning business, operations and governance of the Company.
Your Directors have expressed their satisfaction to the evaluation
process.
As required under the provisions of the Act and the Listing
Regulations, a separate meeting of the Independent Directors of the Company was held on
March 10, 2022 to evaluate the performance of the Chairman, Non- Independent Directors and
the Board as a whole and also to assess the quality, quantity and timeliness of flow of
information between the management of the Company and the Board.
AUDIT COMMITTEE
A duly constituted Audit Committee consists of majority of Independent
Directors with Shri Dileep Choksi, Independent Director, as the Chairman of the Committee.
The other members of the Audit Committee are Shri Sudhir Mankad and Shri Sanjay Asher,
Independent Directors and Shri S. K. Anand, Non-Executive Non-Independent Director. The
Committee's purpose is to oversee the accounting and financial reporting process of
the Company, the audits of the Company's financial statements, the appointment,
independence and performance of the Statutory Auditors and the Internal Auditors. The
Terms of Reference of the Audit Committee, details of meetings held during the year and
attendance of members of the Audit Committee are set out in the Report on Corporate
Governance, which forms part of this Report.
During the year under review, all the recommendations of the Audit
Committee were accepted by the Board.
STATUTORY AUDITORS
In line with the requirements of the Companies Act, 2013, Statutory
Auditors, Deloitte Haskins & Sells LLP, Chartered Accountants (ICAI Firm Registration
Number 117366W/ W-100018) was appointed as Statutory Auditor of the Company at the 46th
Annual General Meeting (‘AGM') to hold office from the conclusion of the said
AGM till the conclusion of the 51st AGM of the Company. Accordingly, the first term of
office of Deloitte Haskins & Sells LLP, as Statutory Auditors of the Company is upto
the conclusion of 51st AGM.
The Board of Directors, based on the recommendations of the Audit
Committee, at its meeting held on May 4, 2022, approved and has recommended to the Members
of the Company for their approval at the ensuing AGM, the re-appointment of Deloitte
Haskins & Sells LLP, Chartered Accountants (ICAI Firm Registration Number 117366W/
W-100018) as the Statutory Auditors of the Company for further term of five (5)
consecutive years, to hold office from the conclusion of 51st AGM till the conclusion of
the 56th AGM of the Company.
During the year, the Statutory Auditors have confirmed that they
satisfy the independence criteria required under the Act.
STATUTORY AUDITORS' REPORT
The observations made in the Auditor's Report of Deloitte Haskins
& Sells LLP, Chartered Accountants, Statutory Auditors, for the year ended March 31,
2022, read together with relevant notes thereon, are self-explanatory and hence do not
call for any comments. There is no qualification, reservation, adverse remark or
disclaimer by the Statutory Auditors in their Report. There were no instances of frauds
identified by the Statutory Auditors during the FY 2021-22.
The Standalone and Consolidated Financial Statements of the Company
have been prepared in accordance with Ind AS notified under Section 133 of the Act.
SECRETARIAL AUDITORS
Pursuant to the provisions of Section 204 of the Act read with the
Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the
Secretarial Audit for the year ended March 31, 2022 was carried out by the Secretarial
Auditors, KANJ & Co. LLP, Company Secretaries, Pune. The Board of Directors of your
Company has appointed KANJ & Co. LLP, Company Secretaries, Pune to carry out
Secretarial Audit of your Company for FY 2022-23.
SECRETARIAL AUDITORS' REPORT
The Secretarial Audit Report of KANJ & Co. LLP, Company
Secretaries, Pune, for the year ended March 31, 2022 in Form No. MR-3 is annexed as
Annexure - A, which forms part of this Report.
The observations made in the Secretarial Audit Report of KANJ & Co.
LLP, Company Secretaries, Pune for the year ended March 31, 2022 are self- explanatory and
hence do not call for any comments. There is no qualification, reservation, adverse remark
or disclaimer by the Secretarial Auditors in their Report.
As per the requirement of Act and the Listing Regulations, Secretarial
Audit of DPL, a material unlisted subsidiary was undertaken by Samdani Shah & Kabra,
Company Secretaries, Vadodara for the Financial Year 2021-22. The said Secretarial Audit
Report confirms that DPL has complied with the provisions of the Act, Rules, Regulations
and Guidelines and that there were no deviations or non-compliances. The Secretarial Audit
Report of DPL is annexed to this Annual Report as Annexure-B.
COST AUDITORS
The Company is required to maintain cost records under Companies (Cost
Records and Audit) Rules, 2014, as amended from time to time. Accordingly, cost records
have been maintained by the Company.
The Board of Directors, on the recommendation of the Audit Committee,
appointed B. M. Sharma & Co., Cost Accountants, as Cost Auditors to conduct audit of
the Company's cost records for FY 2022-23 at a remuneration of _ 8,00,000/- (Rupees
Eight Lakhs only) plus applicable taxes, traveling and out of pocket expenses. The Cost
Auditors, B. M. Sharma & Co., Cost Accountants, have confirmed that they are free from
disqualification specified under Section 141 (3) and Section 148 (3) read with Section 141
(4) of the Act and that the appointment meets the requirements of the Act. They have
further confirmed their independent status and an arm's length relationship with the
Company. As required under the provisions of the Act, the remuneration of Cost Auditors as
approved by the Board of Directors is subject to ratification by the Members at the
ensuing Annual General Meeting. An Ordinary Resolution for the ratification of
remuneration of Cost Auditors for FY 2022-23 is provided in the Notice under Special
Businesses.
Your Directors recommend the same for approval by the Members of the
Company.
The Cost Auditor's Report will be filed within the prescribed
period of 180 days from the close of the Financial Year. The Cost Auditor's Report
for FY 2021-22 does not contain any qualifications, reservations, adverse remarks or
disclaimers.
INTERNAL AUDITORS
On the recommendation of the Audit Committee, the Board of Directors of
the Company has appointed Sharp & Tannan Associates, Chartered Accountants, as
Internal Auditors of your Company to conduct the Internal Audit for FY 2022-23.
The Internal Audit function reports its findings and status thereof to
the Audit Committee on a quarterly basis.
REPORTING OF FRAUD BY AUDITORS
During the year under review, the Statutory Auditors, Cost Auditors and
Secretarial Auditor have not reported any instances of frauds committed in the Company by
its Officers or Employees to the Audit Committee under Section 143 (12) of the Act and the
Rules made thereunder.
RISK MANAGEMENT
Risk Management is important to define, assess and track business
threats and obstacles throughout the organisation. Towards this, your Company has adequate
measures in place and has adopted a comprehensive Enterprise Risk Management Framework and
Policy duly approved by the Board of Directors which is aligned with the requirement of
ISO 31000 and COSO. The Risk Management Framework and Policy ensures sustainable business
growth with stability and encompasses establishment of structured and intelligent approach
to Risk Management at the Company.
In compliance with the requirement of Regulation 21 of the Listing
Regulations, your Company is having a duly constituted Risk Management Committee. The
Committee evaluates the performance of your Company against perceived risks, develops
methods to classify potential and evolving risks that may adversely impact the overall
risk exposure of the Company, and determines the strategic plan and framework of Risk
Management. The details about the Risk Management Committee have been provided in the
Report on Corporate Governance which forms part of this Annual Report.
The Board of Directors periodically evaluates the processes for Risk
Identification and Risk Mitigation. The Risk Register is regularly assessed and updated to
make sure that the relevant risks are suitably identified, and mitigation mechanisms are
effective to control them. This provides a constructive and value-added analysis mechanism
that helps to maintain an appropriate level of risk profile in a rapidly evolving
ecosystem.
INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR ADEQUACY
Internal control plays a pivotal role in any organisation and your
Company has sufficient Internal Control mechanisms in place including Internal Financial
Controls. The Internal Control Framework is implemented by written policies, rules, and
protocols to maintain adherence with laws and regulations, processes, and legislation, and
that all resources are secured and protected against loss from unlawful use or disposal,
and that such transactions are appropriately permitted, registered, and documented.
During FY 2021-22, the Internal Auditor performed comprehensive
assessments at all locations and across all functional departments. The internal audit
function provides independent and reasonable assurance about the adequacy and operating
effectiveness of the internal controls to the Audit Committee. The Audit Committee
regularly reviews the internal audit findings and corrective measures are undertaken to
ensure the efficiency of the Internal Control system and processes.
The system of Internal Control is structured to verify that financial
and other documents are correct in compiling financial reports and other data, and in
maintaining transparency for individuals.
The Statutory Auditors have confirmed the adequacy of the Internal
Financial Control systems over Financial Reporting and Statutory Auditors' Report on
Internal Financial Controls as required under Clause (i) of Sub-section 3 of Section 143
of the Act, is annexed with the Independent Auditors' Report.
VIGIL MECHANISM
The Company encourages open and transparent system of working and
dealing among its stakeholders. Pursuant to provisions of Section 177 (9) of the Act, read
with Regulation 22 (1) of the Listing Regulations, your Company has adopted a Whistle
Blower Policy, to provide a formal vigil mechanism to the Directors and employees to
report their concerns about unethical behavior, including actual or suspected leak of
unpublished price sensitive information, actual or suspected fraud or violation of the
Company's Code of Conduct or ethics policy. The Policy provides for adequate
safeguards against victimisation of employees who avail of the mechanism and also provides
for direct access to the Chairman of the Audit Committee in certain cases. It is a_irmed
that no personnel of the Company was denied access to the Audit Committee.
The Whistle Blower Policy is available on the Company's website at
https://www.godeepak.com/wp-content/themes/twentysixteen/
companyfiles/corporate_governancefireport/Whistle_Blower_ Policy.pdf.
DEPOSITS FROM PUBLIC
During FY 2021-22, the Company has not accepted or renewed any Deposits
covered under Chapter V of the Act. As on March 31, 2022, 35 warrants aggregating to _
7,23,507 and interest of _ 409 issued by the Company to the respective deposit holders
towards compulsory repayment of deposits and interest thereon in accordance with the
provisions of Section 74 of the Act remained uncleared. The said amount, having become due
for transfer to Investor Education and Protection Fund (‘IEPF'), have been
transferred to IEPF on May 4, 2022. There has been no default in repayment of deposits or
interest thereon during the year and there are no deposits outstanding as on March 31,
2022.
RELATED PARTY TRANSACTIONS
There are no material related party transactions entered into by the
Company with Promoters, Directors, Key Managerial Personnel or other related parties,
which may have a potential conflict with the interest of the Company at large.
Accordingly, the disclosure of related party transactions, as required under Section 134
(3) (h) of the Act, in Form No. AOC-2 is not applicable to the Company.
All transactions with related parties were reviewed and approved by the
Audit Committee. Prior omnibus approval of the Audit Committee is obtained for related
party transactions which are of repetitive nature and entered in the ordinary course of
business and on arm's length basis. A statement giving details of all related party
transactions is placed before the Audit Committee and the Board of Directors on a
quarterly basis.
None of the Directors has any material pecuniary relationships or
transactions vis-a-vis the Company.
In line with the requirements of the Act and the Listing Regulations,
the Company has formulated a policy on Related Party Transactions.
During the year under review, the Policy has been amended to
incorporate the regulatory amendments in the Listing Regulations.
The updated Policy can be accessed on the Company's website at
www.godeepak.com.
SUBSIDIARY / ASSOCIATE COMPANIES AND CONSOLIDATED FINANCIAL STATEMENTS
As required under Rule 8 (1) of the Companies (Accounts) Rules, 2014,
the Board's Report has been prepared on a Standalone basis.
Pursuant to requirement of Section 136 of the Act, which has exempted
companies from attaching the financial statements of the subsidiary companies along with
the Annual Report of the company, your Company will make available the Annual Financial
Statements of the subsidiary companies and the related detailed information to any Member
of the Company on receipt of a written request from them at the Registered Office of the
Company. The Annual Financial Statements of the subsidiary companies will also be kept
open for inspection at the Registered Office of the Company on any working day during
business hours. These are also available on the website of your Company at
www.godeepak.com.
The Consolidated Financial Statements of the Company and its
subsidiaries, prepared in accordance with Indian Accounting Standards notified under the
Companies (Indian Accounting Standards) Rules, 2015 (‘Ind AS'), forms part of
the Annual Report.
The Consolidated Financial Statements include the financial performance
of following subsidiaries:
a Deepak Phenolics Limited
a Deepak Nitrite Corporation Inc.
a Deepak Chem Tech Limited (formerly known as Deepak Clean Tech
Limited)
Your Company has adopted a Policy for determining Material Subsidiaries
in terms of Regulation 16 (1) (c) of the Listing Regulations. The Policy, as approved by
the Board, is uploaded on the Company's website www.godeepak.com.
PERFORMANCE OF SUBSIDIARIES
(a) Deepak Phenolics Limited
Deepak Phenolics Limited, a wholly owned subsidiary, is in the business
of manufacturing Phenol, Acetone and their downstream products. Phenol and Acetone are
manufactured at DPL's state-of-the-art facility in Dahej, Gujarat.
DPL's Revenue from operations came in at _ 4,303.42 Crores and
Profit After Tax stood at _ 624.36 Crores as of March 31, 2022.
(b) Deepak Nitrite Corporation Inc. (USA)
Deepak Nitrite Corporation Inc. (‘DNC') is a wholly owned
subsidiary based in the United States. This Company was formed to support your
Company's marketing needs in North and South America. DNC's Total Revenue stood
at USD 19,490, with a net income of USD 509 during FY 2021-22.
(c) Deepak Chem Tech Limited (formerly known as Deepak Clean Tech
Limited)
Your Company has incorporated a wholly owned subsidiary company viz.
Deepak Chem Tech Limited (‘DCTL') (formerly known as Deepak Clean Tech Limited).
This subsidiary was incorporated to carry out business of manufacturing of chemical
intermediates and is yet to start production. During FY 2021-22, DCTL's Total Income
stood at _ 1,27,481 and the Net Loss was _ 2,60,79,323.
The Audited Consolidated Financial Statements of the Company for FY
2021-22, together with the Auditor's Report, constitute part of this Annual Report in
compliance with the terms of the Act, Regulation 33 of the Listing Regulations, and
applicable Accounting Standards. A declaration in the specified Form No. AOC-1, detailing
the salient features of the Company's subsidiaries, associates, and joint venture
companies, is appended to the Financial Statements.
PARTICULARSOFLOANS,GUARANTEESANDINVESTMENTS UNDER SECTION 186 OF THE
COMPANIES ACT, 2013
Details of Loans, Guarantees and Investments covered under the
provisions of Section 186 of the Act are given in the Notes to the Financial Statements.
MATERIAL CHANGES AND COMMITMENTS AFFECTING FINANCIAL POSITION OF YOUR
COMPANY
There have been no material changes and commitments affecting the
financial position of the Company since the close of Financial Year i.e. since March 31,
2022 and the date of this Report. Further, it is hereby confirmed that there has been no
change in the nature of business of the Company.
DIRECTORS' RESPONSIBILITY STATEMENT
Based on the framework of Internal Financial Controls established and
maintained by the Company, work performed by the Internal, Statutory, Secretarial and Cost
Auditors and external agencies including audit of Internal Financial Controls over
Financial Reporting by the Statutory Auditors and reviews performed by the management and
relevant Board Committees, including the Audit Committee, the Board is of the opinion that
your Company's Internal Financial Controls were adequate and effective during FY
2021-22.
Accordingly, pursuant to Section 134 (5) of Act, the Board of
Directors, to the best of their knowledge and ability confirm that:
(a) in the preparation of the Annual Accounts for the Financial Year
ended March 31, 2022, the applicable accounting standards have been followed and there are
no material departures;
(b) they have selected such accounting policies and applied them
consistently and made judgments and estimates that are reasonable and prudent so as to
give a true and fair view of the state of affairs of your Company at the end of the
Financial Year ended March 31, 2022 and of the profit of your Company for the year ended
on that date;
(c) they have taken proper and su_icient care for the maintenance of
adequate accounting records in accordance with the provisions of the Act for safeguarding
the assets of your Company and for preventing and detecting fraud and other
irregularities;
(d) they have prepared the Annual Accounts on a going concern basis;
(e) they have laid down Internal Financial Controls to be followed by
your Company and that such Internal Financial Controls are adequate and are operating
effectively; and
(f) they have devised proper systems to ensure compliance with the
provisions of all applicable laws and that such systems were adequate and operating
effectively.
CORPORATE GOVERNANCE
Your Company is committed to maintain the highest standards of
Corporate Governance and adhere to the Corporate Governance requirement set out by
Securities and Exchange Board of India (SEBI). The Report on Corporate Governance under
Regulation 34 of the Listing Regulations read with Schedule V of the said Listing
Regulations forms an integral part of the Annual Report. The requisite Certificate from a
Practicing Company Secretary, KANJ & Co., LLP, Company Secretaries, Pune, confirming
compliance with the conditions of the Corporate Governance is attached to the Report on
Corporate Governance.
BUSINESS RESPONSIBILITY REPORT
The Business Responsibility Report (‘BRR') is one of the
avenues to communicate the Company's obligations and performance to all its
stakeholders.
The BRR forms part of this Report and is annexed as Annexure - C.
INTEGRATED REPORTING
We at Deepak, are committed to transparency in our stakeholder
communications. Your Company started the journey of Integrated Reporting <IR> with
50th Annual Integrated Report for the Financial Year 2020-21. This year also, the
Integrated Report is prepared based on the <IR> framework issued by the Value
Reporting Foundation, formerly known as the International Integrated Reporting Council,
that encompasses reporting of six capitals used by an organisation for stakeholder value
creation.
MANAGEMENT DISCUSSION AND ANALYSIS
In terms of Regulation 34 (2) (e) of Listing Regulations, read with
other applicable provisions, the detailed review of the operations, performance and future
outlook of the Company and its business is given in the Management Discussion and Analysis
Report which forms part of this Annual Report and is incorporated herein by reference and
forms an integral part of this Report.
CORPORATE SOCIAL RESPONSIBILITY
Your Company has pioneered various CSR initiatives since decades and it
continues to remain committed to serve the society. During the year under review, the
Company, alongwith its wholly owned subsidiary, Deepak Phenolics Limited, through the CSR
programmes, have impacted the lives of many people from some of the most weakest sections
of society, including a sustained and significant response to the COVID-19 pandemic during
severe second wave in the year 2021. The Company implements its CSR programmes primarily
through Deepak Group's CSR arm viz. Deepak Foundation and Deepak Medical Foundation,
which works in close collaboration with public systems and partners.
The Company's signature CSR programmes are primarily aimed to
bring positive change addressing critical development issues in healthcare, education,
skill building and Community Development. The Company also focuses on development
imperatives of communities proximate to its operations through multiple initiatives
including improving health through Mobile Health Units, de-addiction drives, enhancing
household livelihoods, empowering women and youth.
The Company has constituted a CSR Committee, chaired by Shri Sudhir
Mankad, as Chairman, and Dr. Swaminathan Sivaram, Shri Deepak C. Mehta, Shri Sanjay
Upadhyay as members. The composition of the CSR Committee is in accordance with Section
135 of the Act.
During the year under review, the Company has spent _ 9.92 Crores on
CSR activities, against the requirement of _ 9.87 Crores, being more than 2% of average
Net Profits for the preceding three years. The Annual Report on CSR activities, in terms
of Section 135 of the Companies Act, 2013 (‘the Act') and the Rules framed
thereunder, is annexed to this Report as Annexure-D.
The Company has in place a CSR Policy based on the activities permitted
under Schedule VII of the Act which provides guidelines to conduct its CSR activities.
The CSR Policy has been posted on the website of the Company at
https://www.godeepak.com/wp-content/uploads/2021/05/DNL-CSR-Policy.pdf.
NOMINATION AND REMUNERATION POLICY
Your Company has adopted a Nomination and Remuneration Policy for the
Directors, Key Managerial Personnel and other employees pursuant to the requirement of
Section 178 of the Act and the Listing Regulations. The Nomination and Remuneration Policy
of your Company is annexed as Annexure - E and is also available on the Company's
website at www.godeepak.com.
PARTICULARS OF EMPLOYEES
The statement pertaining to particulars of employees pursuant to
Section 197 of the Companies Act, 2013 (the ‘Act') read with Rule 5(2) and 5(3)
of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014
(including amendments thereof), forms part of this Report. However, the above mentioned
statement is not being sent to the Members along with the Annual Report in accordance with
the provisions of Section 136 of the Act.
The aforesaid information is available for inspection by the Members up
to the date of the ensuing Annual General Meeting (‘AGM'), on all working days,
during business hours, at the Registered Office of the Company. Members who are interested
in obtaining the said particulars may please write to the Company Secretary.
The details of remuneration of Directors and Employees as required
under Section 197(12) of the Act read with Rule 5(1) of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014 (including amendments thereof), are
given as an Annexure-F and forms part of this Report.
ANNUAL RETURN
Pursuant to Section 134 (3) (a) and 92 (3) of the Act read with Rule 12
of the Companies (Management and Administration) Rules, 2014 (including amendments
thereof) notified by Ministry of Corporate Affairs, the Annual Return of the Company for
the Financial Year ended March 31, 2022 has been placed on the website of the Company at
www.godeepak.com.
CONSERVATION OF ENERGY & TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
The information pertaining to Conservation of Energy & Technology
Absorption and Foreign Exchange Earnings and Outgo as required under Section 134 (3) (m)
of the Act, read with Rule 8 (3) of the Companies (Accounts) Rules, 2014 is attached as
Annexure - G to this Report.
STATE OF COMPANY'S AFFAIRS
The state of your Company's affairs is given under the heading
‘Performance Review' and various other headings in this Report and in the
Management Discussion and Analysis, which forms part of the Annual Report.
SIGNIFICANT AND MATERIAL ORDERS PASSED AGAINST THE COMPANY
Pursuant to the requirement of Section 134 (3) (q) of the Act, read
with Rule 8 (5)(vii) of the Companies (Accounts) Rules, 2014, it is confirmed that during
FY 2021-22 there were no significant and material orders passed by the Regulators or
Courts or Tribunals impacting the going concern status and the Company's operations
in future.
There was no application made or proceeding pending against the Company
under the Insolvency and Bankruptcy Code, 2016 (31 of 2016) during the year under review.
SECRETARIAL STANDARDS OF ICSI
During the year under review, the Company is in compliance with the
Secretarial Standards on Meetings of the Board of Directors (SS-1) and General Meetings
(SS-2) issued by the Institute of Company Secretaries of India ("ICSI") as
approved by the Central Government.
GENERAL DISCLOSURES
Your Directors state that no disclosure or reporting is required in
respect of the following matters as there is no transaction on these items during the year
under review:
(i) Issue of equity shares with differential rights as to dividend,
voting or otherwise.
(ii) Issue of shares (including sweat equity shares) to employees of
the Company under any scheme.
(iii) The Company does not have any scheme of provision of money for
the purchase of its own shares by employees or by trustees for the benefit of employees.
(iv) There is no Corporate Insolvency Resolution Process initiated
under the Insolvency and Bankruptcy Code, 2016.
RESEARCH & DEVELOPMENT
Your Company has a well-equipped Research and Development Centre
(‘DRDC') at Nandesari, Gujarat.
DRDC is crucial to your Company's success with its ability to
develop advanced intermediates which requires complex chemistry and engineering. This
drives its portfolio expansion with a time-bound product development and scale-up process.
DRDC is recognised by Department of Scientific and Industrial Research
(‘DSIR'), New Delhi, on behalf of the Government of India and the recognition
has been extended from time to time. DSIR has vide letter October 14, 2020, has extended
the recognition of DRDC for a further period up to March 31, 2023.
State-of-the-art pilot plants with kilo scale laboratory
Your Company also has two state-of-the-art pilot facilities, one each
situated at Roha, in Maharashtra and Nandesari, in Gujarat. The Pilots act as catalysts
between R&D and commercial production of intermediates for Agrochemicals, Dyes,
Pharmaceuticals etc., thereby allowing your Company to deliver quality product seamlessly.
The Pilot facility boasts of stainless steel and glass lined reactors along with
distillation columns for gas and liquid raw materials and is fully-equipped with advanced
instruments, DCS (Distributed Control system) and utilities like chilled brine, low
pressure steam, cooling water, temper water and more.
SAFETY, HEALTH & ENVIRONMENT
Your Company is committed to ensure a sound Safety, Health and
Environment ("SHE") performance related to its manufacturing processes, products
and services. It is continuously taking various steps to develop and adopt safer process
technologies, unit operations and sustainable systems
The Company is investing in areas such as Process Automation for
increased safety and reduction of human error element, enhanced level of training on
process and behaviour based safety, adoption of safe & environmental friendly
production processes, upgrading e_luent treatment facilities, Reverse Osmosis plants,
Multiple Effect Evaporator etc to reduce the discharge of e_luents, commissioning of Waste
Heat recovery systems, and so on to ensure the reduction, recovery and reuse of e_luents
& other utilities. SHE management system is monitored and reviewed periodically.
Structured & regular safety meetings are carried out to review existing process safety
parameters.
Systematic and well documented scale up procedure is in place for the
development of product from Research & Development to Pilot to Commercial scale. It
includes risk assessment and process safety study at each stage to ensure inherently safe
processes.
The Company has policy and system in place to deploy internationally
recognised guidelines, such as the principles of the United Nations' Global Compact,
the International Labour Organisation ("ILO") conventions and Responsible Care?
Initiative. It has system in place to ensure social compliances related to human rights,
labour & social standards, anti-discrimination, conflict of interest and
anti-corruption.
As per materiality analysis Health and Safety remained a core area of
importance for the Company with an aim to achieve accident-free workplace. Your Company
believes that all injuries, occupational illnesses as well as safety and environmental
incidents are preventable. This ensures that all employees strive for excellence in their
own personal safety and the safety of others including employees, contractors, customers,
and the communities within which the Company operates.
The Company follows a systematic incident reporting system. All
incidents including near misses are also logged into the safety MIS and corrective and
preventive actions based on that are tracked through internally developed so_ware. Each
incident is analyzed for their root-causes and required precautions are taken to prevent
the recurrences. Each technological change and projects undertaken by the Company are made
to undergo HAZOP studies before implementation. All plant-setting changes are first
approved through Management of Change procedure before implementation followed by
pre-start up safety reviews. Workplace safety and Process Safety Management through
employee engagement initiatives are continuously being strengthened. Your Company has a
system of Internal and external Safety Audits and actions based on audit findings are
implemented. All Manufacturing Units including Corporate Office are certified with the
latest standard of ISO 9001, ISO 14001 and ISO 45001. Scheduled safety awareness programs
are conducted across plants to achieve continuous improvement in terms of process safety,
workplace safety and behavioral transformation.
Logistic safety Management system
The Company has, along with its peers, founded Nicer Globe, an
independent platform which provides real-time monitoring of the movement of hazardous
materials across the length and breadth of India. This helps in monitoring any deviations
in speed or route or driving time restrictions, which results in minimising transport
related incidents. Almost all raw materials and products within supply chain framework of
the Company are transported in a secure manner, with GPS for real-time monitoring for the
safety of its customers, carriers, suppliers, distributors, and contractors.
Environment
The Company's commitment to environmental protection extends
beyond the scope of legal requirements. It has implemented chemical industry's
Responsible Care? system and have set out the basic principles fully aligned with UN
Sustainable Development Goals. The Company has taken various initiatives for resource
conservation, and reduction in energy consumption It has focused on recycle and reuse and
reduction of pollution load and constantly working on to reduce environmental footprint
and find innovative solutions that benefit the environment.
Your Company has carried out Sustainability assessment through
EcoVadis, a globally recognised organisation and have received silver medal with 60%
score. The Company has target for even better assessment score in the next review from
silver to gold medal. It has also started assessing Green House Gas (GHG) emissions and
taken initiatives to reduce the same.
HUMAN RESOURCES
Strong, skilful and trained workforce is the most valuable resource for
the Company. Your Company continues its endeavour of investing in Human Talent and Talent
Management Processes through its various interventions to improve competencies,
capabilities, skills and potential of its workforce. This is essential to withstand the
challenges posed by the everchanging business environment. The Company's Human
Resource initiatives and engagement activities have enabled the Company not only sail
through the challenging times witnessed recently, but has helped your Company in
attracting, developing, nurturing, and retaining right talent and keeping them motivated.
In view of the growth plans of the Company, an important strategic focus continues to not
only nurture the workforce, but also to train and encourage them to take up the challenges
of the future.
INSURANCE
All the insurable interests of the Company including inventories,
buildings, plant and machinery are adequately insured against risk of fire and other
risks.
The Company has in place Directors & Officers Liability Insurance
(D&O) for all its Directors (including Independent Directors) and members of the
Senior Management Team for such quantum and risks as determined by the Board in line with
the requirement of Regulation 25 (10) of the Listing Regulations.
DISCLOSURE AS REQUIRED UNDER SECTION 22 OF THE SEXUAL HARASSMENT OF
WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013
The Company has Zero tolerance towards sexual Harassment and is
committed to creating and maintaining a secure work environment where its employees,
agents, vendors and partners can work and pursue business together in an atmosphere free
of harassment, exploitation and intimidation.
To empower women and protect women against sexual harassment, and as
per the requirement of the Sexual Harassment of Women at Workplace (Prevention,
Prohibition & Redressal) Act, 2013 and Rules made thereunder, a policy for prevention
of sexual harassment is already in place and Internal Complaints Committee is duly
Constituted all locations of the Company.
This policy allows employees to report sexual harassment at the
workplace. The Internal Committee is empowered to look into all complaints of sexual
harassment and facilitate free and fair enquiry process with clear timelines. To build
awareness in this regard, the Company has been conducting various programme on a
continuous basis across its all locations.
During FY 2021-22, no complaint was received from any employee and
hence no complaint is outstanding as on March 31, 2022 for redressal.
GREEN INITIATIVES
In commitment to keep in line with the Green Initiatives and going
beyond it, electronic copy of the Notice of 51st Annual General Meeting of the Company
including the Annual Report for FY 2021-22 are being sent to all Members whose address are
registered with the Company/Depository Participant(s).
ACKNOWLEGDEMENT
Your Directors express their gratitude to customers, vendors, dealers,
investors, business associates and bankers for their continued support during the year. We
place on record our appreciation of the commitment and contribution made by the employees
at all levels. Our resilience to meet challenges was made possible by their hard work,
solidarity, cooperation and support.
We thank the Government of India, the State Governments and statutory
authorities and other government agencies for their support and look forward to their
continued support in the future.
|
For and on behalf of the Board |
|
Deepak C. Mehta |
|
Chairman & Managing Director |
|
(DIN: 00028377) |
| Place: Vadodara |
|
| Date: May 4, 2022 |
|
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