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Notes to Accounts of Deepak Nitrite Ltd.

Mar 31, 2023

(b) Shares: Terms/Rights

(i) The Company has Authorised capital of Equity and Preference shares.

(ii) Each holder of the Equity Share is entitled to one vote per Share. The Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to approval of the shareholders at the ensuing Annual General Meeting.

(iii) In the event of liquidation of the Company, the holders of Equity Shares shall be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity Shares held by the Shareholders. No preferential amounts exist as on the Balance Sheet date.

(i) Working Capital borrowings from banks represent Cash Credit and Working Capital Demand Loan with rate of interest as MCLR of respective banks plus spread ranging from 0% to 1.25% p.a. These borrowings are repayable on demand.

(ii) Working Capital borrowings are secured by way of first Hypothecation charge over Companyâs Raw Materials, Semi-Finished and Finished Goods, Consumable Stores and Book Debts and second charge on all Property, Plant and Equipment by way of hypothecation and mortgage. The assets stated herein are disclosed under note 2, 9 and 11.

There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company except for amounts of '' 274000, '' 20390 & '' 380117 pertaining to unclaimed deposits of FY 2014-15 which were due to be transferred on April 11, 2022, April 17, 2022 & April 26, 2022 respectively and the same were transferred on May 03, 2022.

The Unclaimed Matured deposits of '' 0.07 Crores outstanding as at March 31, 2022 represents an aggregate amount of certain cheques issued towards compulsory repayment of the outstanding fixed deposits as on March 31, 2015, which have not been presented to the bank for payment by the depositors.

35. CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)		'' in Crores
	As at March 31, 2023	As at March 31, 2022
I. Claims against the Company not acknowledged as debts in respect of (a) Matters relating to Sales Tax/VAT from FY 2010-11 to FY 2014-15 is being contested at various level of Indirect Tax authorities (b) Bank Guarantees: Financial Performance (c) Disputed Labour Matters Management is not expecting any future cash outflow in respect of (a) & (c). Total (I) II. Commitments Capital Commitments (Net of Advances: Refer Note 8(a)) Total(II)
	0.53	0.92

	62.30	14.71
	14.34	11.17
	Amount not ascertainable

	77.17 26.80

	45.67 39.86
	45.67 39.86

Risk exposure

The Company is exposed to a number of risks, the most significant of which are detailed below:

Interest rate risk: A fall in the discount rate which is linked to the Government Securities Rate will increase the present value of the liability requiring higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on the duration of asset.

Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the planâs liability.

Investment Risk: The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government securities, and other debt instruments.

Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.

Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.

Concentration Risk: Plan is having a concentration risk as all the assets are invested with the insurance company and a default will wipe out all the assets. Although probability of this is very less as insurance companies have to follow regulatory guidelines.

B. Leave Benefit

(a) The Leave Benefit is wholly unfunded. Hence, there are no plan assets attributable to the obligation.

(b) The accumulated balance of Leave Benefit (unfunded) provided in the books as at March 31, 2023, is '' 32.97 Crores (Previous year '' 24.28 Crores), which is determined on actuarial basis using Projected Unit Credit Method.

38. CAPITAL MANAGEMENT

The key objective of the Companyâs capital management is to ensure that it maintains a stable capital structure with the focus on total equity to uphold investor, creditor, and customer confidence and to ensure future development of its business.

The Company focused on keeping strong total equity base to ensure independence, security, as well as a high financial flexibility for potential future borrowings, if required without impacting the risk profile of the Company.

For the purpose of Capital Management, the Company considers the following components of its Balance Sheet to manage capital.

39.2. Fair Value Hierarchy

The table below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined as follows:

Level 1 - Quoted prices in active markets for identical assets or liabilities.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the 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).

Comparative Market Multiples method has been used for estimating the fair value of such Investment. The fair valuation estimates are based on historical annual accounts/annual reports and based on information collected from public domain. Information pertaining to future expected performance of investee companies including projections about their profitability, balance sheet status and cash flow expectations are not available.

39.3. Financial Risk Management objectives

The Company has adequate internal processes to assess, monitor and manage financial risks. These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

The Company seeks to minimise the effects of these risks by using financial instruments such as foreign currency forward contracts and option contracts to hedge risk exposures and appropriate risk management policies as detailed below. The use of these financial instruments is governed by the Companyâs policies, which outlines principles on foreign exchange risk, interest rate risk, credit risk and deployment of surplus funds.

39.4 Market Risk

The Companyâs financial instruments are exposed to market rate changes. The Company is exposed to the following significant market risks

â¢ Foreign currency risk

â¢ Interest rate risk

Market risk exposures are measured using sensitivity analysis. There has been no change to the Companyâs exposure to market risks or the manner in which these risks are being managed and measured.

39.4.1 Foreign Currency Risk management

The Company is exposed to foreign exchange risk on account of following

1. Imports of raw materials and services.

2. Exports of finished goods.

The Company has a forex policy in place whose objective is to mitigate foreign exchange risk by deploying the appropriate hedging strategies through combination of various hedging instruments such as foreign currency forward contracts and option contracts and has a dedicated forex desk to monitor the currency movement and respond swiftly to market situations. The Company follows netting principle for managing the foreign exchange exposure.

(d) Foreign currency sensitivity analysis

The Company is mainly exposed to fluctuations in US Dollar. The following table details the Companyâs sensitivity to a INR 1 increase and decrease against the US Dollar. INR 1 is the sensitivity used when reporting foreign currency risk internally to key management personnel and represents managementâs assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes only net outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a INR 1 change in foreign currency rates. A positive number below indicates an increase in profit where the Rupee strengthens by INR 1 against the US Dollar. For a INR 1 weakening against the US Dollar, there would be a comparable impact on the profit before tax.

39.4.2 Interest Rate Risk Management

The Company draws working capital demand loans, avails cash credit, foreign currency borrowings etc. for meeting its funding requirements. Interest rates on these borrowings are exposed to change in respective benchmark rates. The Company manages the interest rate risk by maintaining appropriate mix/portfolio of the borrowings.

39.5 Credit Risk Management

Customer credit risk is managed by each business unit subject to the Companyâs established policy, procedures and control relating to the customer credit risk management. The Company uses financial information and past experience to evaluate credit quality of majority of its customers and individual credit limits are defined in accordance with this assessment through third party experts. Outstanding receivables and the credit worthiness of its counterparties are periodically monitored and taken upon case to case basis. The Company measured the loss allowance for receivables based on the management estimate and judgment, credit risk and consequential default considering emerging situations due to COVID-19.

The credit risk on cash and bank balances, derivative financial instruments is limited because the counterparties are banks with high credit ratings assigned by international credit rating agencies.

41. SEGMENT INFORMATION

The Company has planned introduction of several downstream chemicals and complex chemical platforms which shall significantly diversify its operations adding to the existing wide range of value-added product mix. It has significant presence in value chain from basic intermediates to fine and speciality products to performance products through integrated operations with processes ranging from manufacturing basic intermediates to niche and complex intermediates, leading to high dependency on each other as most of the products are forward-backward integrated, serving varied end-user industries across all the geographies. This gives flexibility to focus on manufacturing products that enjoy encouraging demand and offer better price. Further, over the period of time, the business scenario and macro-economic conditions have changed.

Owing to increasing number of facilities catering multi products, integrated production processes, similar economic characteristics of products and business scenario, the Chief Operating Decision Maker (CODM) evaluates the performance of the Company as single business segment i.e. âAdvanced Intermediatesâ and allocates resources based on value generated from this segment, as compared to three business segments reported earlier in Standlone Financial Statements (Basic Intermediates, Fine & Speciality chemicals and Performance Products).

In accordance with Ind AS 108, âOperating Segmentsâ, segment information has been given in the Consolidated Financial Statements and therefore, no separate disclosure on segment information is given in the Standalone Financial Statements.

48. On June 02, 2022, an incidence of fire occurred around the warehouse section of Companyâs one of the manufacturing sites located at Nandesari, Gujarat. This incident led to damage of certain property, plant and equipment, inventory and interrupted business. The Company is adequately insured for reinstatement value of damaged assets and loss of profits due to business interruption. The Company has lodged claim of this incident for both replacement value of the damaged facilities and loss of profits due to business interruption with the insurance company which is under process. The Company has estimated and recognised an initial loss of '' 47.20 Crores on account of damage to certain property, plant and equipment & inventory and has recognised insurance claim receivable to the extent of aforesaid losses.

The Company has received an interim relief from the insurance companies towards assets and inventories aggregating of '' 25.00 Crores, out of which '' 11.23 Crores has been received in the month of March 2023 which has been adjusted against the claims receivable and balance '' 13.77 Crores received in the month of April 2023.

49. OTHER STATUTORY INFORMATION

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(ii) The Company does not have any transactions with struck off companies.

(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period,

(iv) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

(v) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

(vi) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

(vii) The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961

50. Events occurring after the balance sheet date: The Board of Directors have recommended, subject to the approval of shareholders, dividend of '' 7.50/- (Rupees Seven & Fifty Paise only) per equity share of face value of '' 2/- (Rupees Two only) each for the year ended March 31, 2023 on 13,63,93,041 equity shares amounting to '' 102.29 Crores.

51. The Standalone Financial Statements were approved for issue by the Board of Directors on May 11, 2023.

Mar 31, 2022

36. EMPLOYEE BENEFIT OBLIGATIONS A. Gratuity

The Company has covered its Gratuity Liability by a Group Gratuity Policy named âEmployee Group Gratuity Assurance Schemeâ issued by Life Insurance Corporation of India. Under this plan, an employee at retirement is eligible for benefit, which will be equal to 15 days salary for each completed year of service. Thus, it is a defined benefit plan and the aforesaid insurance policy is the Plan Asset.

Risk exposure

The Company is exposed to a number of risks, the most significant of which are detailed below:

Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.

Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.

37. CAPITAL MANAGEMENT

For the purpose of Capital Management, the Company considers the following components of its Balance Sheet to manage capital.

38.2. Fair Value Hierarchy

The table below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined as follows:

Level 1 - Quoted prices in active markets for identical assets or liabilities.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the 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).

38.3.Financial Risk Management objectives

The Company seeks to minimise the effects of these risks by using financial instruments such as foreign currency forward contracts to hedge risk exposures and appropriate risk management policies as detailed below. The use of these financial instruments is governed by the Companyâs policies, which outlines principles on foreign exchange risk, interest rate risk, credit risk and deployment of surplus funds.

38.4 Market Risk

The Companyâs financial instruments are exposed to market rate changes. The Company is exposed to the following significant market risks

â¢ Foreign currency risk

â¢ Interest rate risk

Market risk exposures are measured using sensitivity analysis. There has been no change to the Companyâs exposure to market risks or the manner in which these risks are being managed and measured.

38.4.1 Foreign Currency Risk management

The Company is exposed to foreign exchange risk on account of following

1. Imports of raw materials and services.

(d) Foreign currency sensitivity analysis

2. Exports of finished goods.

3. Foreign currency borrowings in the form of Buyers credit, packing credit etc. availed for meeting its funding requirements.

The Company has a forex policy in place whose objective is to mitigate foreign exchange risk by deploying the appropriate hedging strategies through combination of various hedging instruments such as foreign currency forward contracts and has a dedicated forex desk to monitor the currency movement and respond swiftly to market situations. The Company follows netting principle for managing the foreign exchange exposure.

38.4.2 Interest Rate Risk Management

The Company draws working capital demand loans, avails cash credit, foreign currency borrowings including buyers credit, Packing Credit etc. for meeting its funding requirements.

Interest rates on these borrowings are exposed to change in respective benchmark rates. The Company manages the interest rate risk by maintaining appropriate mix/portfolio of the borrowings.

38.5 Credit Risk Management

The Company measured the loss allowance for receivables based on the management estimate and judgment, credit risk and consequential default considering emerging situations due to COVID-19.

The credit risk on cash and bank balances, derivative financial instruments is limited because the counterparties are banks with high credit ratings assigned by international credit rating agencies.

40. SEGMENT INFORMATION

(a) Primary Segment Information

The information reported to the Chief Operating Decision Maker (CODM) for the purpose of resource allocation and assessment of segment performance is based on types of goods delivered. Accordingly, the Companyâs reportable segments under Ind AS 108 are as follows

(i) Basic Intermediates

(ii) Fine & Speciality Chemicals

(iii) Performance Products

The accounting policies of the reportable segments are same as the Companyâs accounting policies. Segment profit represents the profit before interest and tax earned by each segment without allocation of central administrative costs and other income. This is the measure reported to the CODM.

Transfer prices between operating segments are on armâs length basis in a manner similar to transactions with third parties.

47. OTHER STATUTORY INFORMATION

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(ii) The Company does not have any transactions with companies struck off.

(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(iv) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

(v) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

48. The Company has considered the possible effects of COVID 19 and Russia-Ukraine conflict in the preparation of these financial statements including recoverability of trade receivables and inventories. The management has considered relevant internal and external sources of information, including economic forecasts as at the date of approval of these financial statements. The impact of the same may vary considering the prevailing uncertain situation.

49. Events occurring after the balance sheet date: The Board of Directors have recommended, subject to the approval of shareholders, dividend of 7 7/- (Rupees Seven only) per equity share of face value of 7 2/- (Rupees Two only) each for the year ended March 31, 2022 on 13,63,93,041 equity shares amounting to 7 95.48 Crores.

50. The Financial Statements were approved for issue by the Board of Directors on May 04, 2022.

Mar 31, 2021

Risk exposure

The Company is exposed to a number of risks, the most significant of which are detailed below:

Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.

Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.

Leave Encashment

(a) The Leave Encashment Benefit Scheme is a Defined Benefit Plan and is wholly unfunded. Hence, there are no plan assets attributable to the obligation.

(b) The accumulated balance of Leave Encashment (unfunded) provided in the books as at March 31, 2021, is T 20.09 Crores (Previous year T 18.08 Crores), which is determined on actuarial basis using Projected Unit Credit Method.

CAPITAL MANAGEMENT

The key objective of the Company''s capital management is to ensure that it maintains a stable capital structure with the focus on total equity to uphold investor, creditor, and customer confidence and to ensure future development of its business.

. Fair Value Hierarchy

The table below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined as follows:

Level 1 - Quoted prices in active markets for identical assets or liabilities.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

i. Financial Risk Management objectives

Foreign currency sensitivity analysis

The Company is mainly exposed to fluctuations in US Dollar. The following table details the Company''s sensitivity to a INR 1 increase and decrease against the US Dollar. INR 1 is the sensitivity used when reporting foreign currency risk internally to key management personnel and represents management''s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes only net outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a INR 1 change in foreign currency rates. A positive number below indicates an increase in profit where the Rupee strengthens by INR 1 against the US Dollar. For a INR 1 weakening against the US Dollar, there would be a comparable impact on the profit before tax.

R in Crores
currency uSD impact on profit or loss	As at March 31, 2021	As at March 31, 2020
Impact of INR 1 strengthening against US Dollar	0.93	0.14
Impact of INR 1 weakening against US Dollar	(2.81)	(2.24)

40.4.2 interest Rate Risk Management

Interest rates on these borrowings are exposed to change in respective benchmark rates. The Company manages the interest rate risk by maintaining appropriate mix/portfolio of the borrowings.

40.5 credit Risk Management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments. Customer credit risk is managed by each business unit subject to the Company''s established policy, procedures and control relating to the customer credit risk management. The Company uses financial information and past experience to evaluate credit quality of majority of its customers and individual credit limits are defined in accordance with this assessment through third party experts. Outstanding receivables and the credit worthiness of its counterparties are periodically monitored and taken upon case to case basis.

The Company measured the loss allowance for receivables based on the management estimate and judgment, credit risk and consequential default considering emerging situations due to COVID-19.

40.6 Liquidity Risk management

The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows and by matching the maturity profiles of financial assets and liabilities.

Primary Segment information

The information reported to the Chief Operating Decision Maker (CODM) for the purpose of resource allocation and assessment of segment performance is based on types of goods delivered. Accordingly, the Company''s reportable segments under Ind AS 108 are as follows:

(i) Basic Chemicals

(ii) Fine & Speciality Chemicals

(iii) Performance Products

The accounting policies of the reportable segments are same as the Company''s accounting policies. Segment profit represents the profit before interest and tax earned by each segment without allocation of central administrative costs and other income. This is the measure reported to the CODM.

During FY 2020-21, the Company has spent 7 7.44 Crores on Corporate Social Responsibility activities, against the requirement of 7 7.44 Crores, being 2% of average of the net profits for the preceding three years.

The Company has considered the possible effects of COVID 19 in the preparation of these financial statements including recoverability of trade receivables and inventories. The management has considered relevant internal and external sources of information, including economic forecasts as at the date of approval of these financial statements. The impact of the same may vary considering the prevailing uncertain situation.

Events occurring after the balance sheet date: The Board of Directors has recommended, subject to the approval of shareholders, a dividend of 7 4.50 (225%) per equity share. Further, over and above the normal dividend, the Board has also recommended for approval of shareholders, a special dividend of 7 1.00 (50%) per equity share to commemorate Golden Jubilee year of the Company. Accordingly, the total dividend shall be 7 5.50 (275%) per equity share of face value of 7 2.00 (Rupees Two only) each for the year ended March 31, 2021 on 13,63,93,041 equity shares.

The Financial Statements were approved for issue by the Board of Directors on May 05, 2021.

For and on behalf of the Board

Mar 31, 2019

1. COMPANY OVERVIEW

Deepak Nitrite Limited (''DNL'' or ''the Company'') is a prominent chemical manufacturing public limited company incorporated and domiciled in India. Its registered office is located at Aaditya-I Chhani Road, Vadodara- 390 024, Gujarat, India and its manufacturing facilities are located in the states of Gujarat, Maharashtra and Telangana.

The Company manufactures Basic Chemicals, Fine & Speciality Chemicals and Performance Products.

Application of New Ind AS

Ind AS 115, ''Revenue from Contracts with Customers'': On March 28, 2018, the MCA notified the Ind AS 115. The core principle of the new standard is that an entity will recognise revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Further, the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers of the Company. The standard permits two possible methods of transaction:

a) Retrospective approach - Under this approach the standard will be applied retrospectively to each prior reporting period presented in accordance with Ind AS 8, ''Accounting Policies, Changes in Accounting Estimates and Errors''.

b) Retrospectively with cumulative effect of initially applying the standard recognised at the date of initial application (Cumulative catchup approach).

The effective date of adoption of Ind AS 115 is financial period beginning on or after April 01, 2018.

The Company has adopted the standard on April 01, 2018 by using the cumulative catch-up transition method and accordingly, comparatives for the year ending or ended March 31, 2018 will not be retrospectively adjusted. There is no material impact on adoption of Ind AS 115.

Changes in Accounting Standard and recent accounting pronouncements

On March 30, 2019, the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) (Amendments) Rules, 2019, notifying Ind AS 116 on Leases. Ind AS 116 would replace the existing leases standard Ind AS 17. The standard sets out the principles for the recognition, measurement, presentation and disclosures for both parties to a contract, i.e. the lessee and the lessor. Ind AS 116 introduces a single lease accounting model and requires a lessee to recognise assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. Currently for operating lease, rentals are charged to the statement of profit and loss. The Company is currently evaluating the implication of Ind AS 116 on the financial statements.

The Companies (Indian Accounting Standards) Amendment Rules, 2019 also notified amendments to the following accounting standards. The amendments would be effective from April 1, 2019

1. Ind AS 12, Income taxes - Appendix C on uncertainty over income tax treatment

2. Ind AS 12, Income Taxes - Accounting for Dividend Distribution Taxes.

3. Ind AS 23, Borrowing costs

4. Ind AS 28 - investment in associates and joint ventures

5. Ind AS 103 and Ind AS 111 - Business combinations and joint arrangements

6. Ind AS 109 - Financial instruments

7. Ind AS 19 - Employee benefits

The Company is in the process of evaluating the impact of such amendments.

Notes:

1 Property, Plant and Equipment hypothecated/mortgaged as security for borrowings are disclosed under note 17 and note 20.

2 Building includes ? 1,080.00 Lakhs (? 1,080.00 Lakhs at March 31, 2018) in respect of ownership of premises in a co-operative housing society byway of 10 Shares.

3 The useful lives of Plant & Machinery have been changed from Financial Year 2017-18 which is based on technical evaluation done by the Management experts which a re in accordance to the useful life prescribed in Part C of Schedule II to the Act, in order to reflect the actual usage of the assets.

4 Capitalised borrowing costs

Addition to Property, Plant & Equipment include borrowing costs (including exchange difference considered as adjustments to borrowings cost) amounting to ? 168.90 Lakhs (Previous year, ? 5.31 Lakhs)

(i) With respect to fire incident in October 2016, the Company had provisionally recognised Rs. 2,250 Lakhs (Rs. 1,832.90 Lakhs Net of loss on account of fire) both for replacement value of the damaged facilities and loss of profits due to business interruption in the previous year ended March 31, 2018 . During the current year, upon final settlement of both the claims the Company recognised Rs. 348.36 Lakhs in the Statement of Profit and Loss under Fine & Speciality Chemicals Segment.

(ii) Loans to Company have been given for business purpose.

(iii) The Company has paid Rs. 5,000.00 Lakhs for the year ended March 31, 2018 towards Share Application Money pending allotment to Deepak Phenolics Limited (Wholly Owned Subsidiary).

(b) Shares: Terms/Rights

(i) The Company has Authorised capital of Equity and Preference shares.

(iv) During the previous year, the Company offered Equity Shares to Qualified Institutional Buyers (âQIBsâ) through Qualified Institutions Placement in accordance with Chapter VIII of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009. Accordingly, 56,81,775 Equity Shares of Rs. 2/- each were allotted to QIBs on January 30, 2018 at an issue price of Rs. 264 per Equity Share (including premium of Rs. 262 per Equity Share).

The issue proceeds has been fully utilised for the object stated in the offer document.

Secured Term Loans:-

Term loan from Banks are secured by first pari passu charge by way of hypothecation of all existing movable property, plant and equipment and mortgage of immovable properties of the Company.

Repayment Schedule:-

(i) Rate of interest of Rupee loan from Banks are in the range of MCLR plus 0.00% to 1.40% p.a. and is repayable on monthly/quarterly basis with last instalment payable from April, 2020 to March, 2026.

(ii) Rate of interest of External Commercial Borrowings are in the range of LIBOR plus 2.65% p.a. and is repayable on quarterly/half-yearly basis with a step up repayment schedule and last instalment paid in November, 2018.

(iii) Unsecured Term Loan from Banks is repayable on quarterly basis with last instalment payable in September, 2019.

(i) Working Capital borrowings from banks represent Cash Credit, Working Capital Demand Loan, Export Packing Credit with rate of interest as MCLR of respective banks plus spread ranging from 0% -1.25% p.a., Packing Credit in Foreign Currency, Buyers'' Credit against Letter of Undertaking with rate of interest ranging from LIBOR/EURIBOR plus spread ranging from 0.30% p.a. to 1.50% p.a. These borrowings are repayable on demand.

(ii) Working Capital borrowings are secured by way of first Hypothecation charge over Company''s Raw Materials, Semi-Finished and Finished Goods, Consumable Stores and Book Debts and second charge on all Property, Plant & Equipment by way of hypothecation and mortgage.

(iii) Commercial Paper placed by the Company during the year are unsecured and carries interest rate ranging from 7.20% p.a. to 8.60% p.a., tenure of each placement ranging from 55 days to 90 days.

2. EMPLOYEE BENEFIT OBLIGATIONS

A. Gratuity

The Company has covered its Gratuity Liability by a Group Gratuity Policy named ''Employee Group Gratuity Assurance Scheme'' issued by Life Insurance Corporation of India. Under this plan, an employee at retirement is eligible for benefit, which will be equal to 15 days salary for each completed year of service. Thus, it is a defined benefit plan and the aforesaid insurance policy is the Plan Asset.

Risk exposure

The Company is exposed to a number of risks, the most significant of which are detailed below:

Interest rate risk: A fall in the discount rate which is linked to the G.Sec. Rate will increase the present value of the liability requiring higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on the duration of asset.

Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.

Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.

(viii) Sensitivity Analysis

Significant Actuarial Assumptions for the determination of the defined benefit obligation are discount trade, expected salary increase and employee turnover. The sensitivity analysis below, have been determined based on reasonably possible changes of the assumptions occurring at end of the reporting period, while holding all other assumptions constant. The result of Sensitivity analysis is given below:

In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the Balance Sheet. The methods and types of assumptions used in preparing the sensitivity analysis did not change as compared to the prior year.

B. Leave Encashment

(a) The Leave Encashment Benefit Scheme is a Defined Benefit Plan and is wholly unfunded. Hence, there are no plan assets attributable to the obligation.

(b) The accumulated balance of Leave Encashment (unfunded) provided in the books as at March 31, 2019, is Rs. 1,399.25 Lakhs (Previous year Rs. 1,081.54 Lakhs), which is determined on actuarial basis using Projected Unit Credit Method.

3. CAPITAL MANAGEMENT

For the purpose of Capital Management, the Company considers the following components of its Balance Sheet to manage capital.

3.1.Fair Value Hierarchy

The table below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined as follows:

Level 1 - Quoted prices in active markets for identical assets or liabilities.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the 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).

3.2. Financial Risk Management objectives

The Company seeks to minimise the effects of these risks by using financial instruments such as foreign currency forward contracts, option contracts and interest swaps to hedge risk exposures and appropriate risk management policies as detailed below. The use of these financial instruments is governed by the Company''s policies, which outlines principles on foreign exchange risk, interest rate risk, credit risk and deployment of surplus funds.

3.3. Market Risk

The Company''s financial instruments are exposed to market rate changes. The Company is exposed to the following significant market risks

- Foreign currency risk

- Interest rate risk

Market risk exposures are measured using sensitivity analysis. There has been no change to the Company''s exposure to market risks or the manner in which these risks are being managed and measured.

3.1.1 Foreign Currency Risk management

The Company is exposed to foreign exchange risk on account of following

1. Imports of raw materials and services.

2. Exports of finished goods.

3. Foreign currency borrowings in the form of Term loans, External Commercial Borrowings, buyers credit, packing credit etc. availed for meeting its funding requirements.

The Company has a forex policy in place whose objective is to mitigate foreign exchange risk by deploying the appropriate hedging strategies through combination of various hedging instruments such as foreign currency forward contracts, options contracts and has a dedicated forex desk to monitor the currency movement and respond swiftly to market situations. The Company follows netting principle for managing the foreign exchange exposure.

(d) Foreign currency sensitivity analysis

The Company is mainly exposed to fluctuations in US Dollar. The following table details the Company''s sensitivity to a Rs. 1 increase and decrease against the US Dollar. Rs. 1 is the sensitivity used when reporting foreign currency risk internally to key management personnel and represents management''s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes only net outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a Rs. 1 change in foreign currency rates. A positive number below indicates an increase in profit where the Rupee strengthens by Rs. 1 against the US Dollar. For a Rs. 1 weakening against the US Dollar, there would be a comparable impact on the profit before tax.

3.1.2 Interest Rate Risk Management

The Company issues commercial papers, draws working capital demand loans, avails cash credit, foreign currency borrowings including buyers credit, Packing Credit etc. for meeting its funding requirements. Interest rates on these borrowings are exposed to change in respective benchmark rates. The Company manages the interest rate risk by maintaining appropriate mix/portfolio of the borrowings.

(a) Interest rate swap contract

The Company had entered into the swap contracts to hedge the interest rate risks on the external commercial borrowings. Using interest rate swap, Company agrees to exchange LIBOR floating interest rate to LIBOR fixed interest rate on agreed notional principal amounts. Such contracts enable the company to mitigate the interest rate risk. Refer details of the principal and interest rate swaps under Note 39.4.1(b).

(b) Interest rate sensitivity analysis

The sensitivity analysis in para below has been determined for borrowings assuming the amount of borrowings outstanding at the end of the reporting period was outstanding for the whole year. A 10 basis points increase or decrease in case of foreign currency borrowings and 25 basis points increase or decrease in case of rupee borrowings is used when reporting interest rate risk internally to key management personnel and represents management''s assessment of the reasonably possible change in interest rates.

If interest rate had been 10 basis points higher/ lower in case of foreign currency borrowings and 25 basis points higher/ lower in case of rupee borrowings and all other variables were held constant, the Company''s profit for the year ended March 31, 2019 would decrease/ increase by Rs. 77.66 Lakhs (March 31, 2018: Rs. 99.53 Lakhs)

3.2. Credit Risk Management

The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions representing large number of minor receivables operating in independent markets.

The credit risk on cash and bank balances, derivative financial instruments is limited because the counterparties are banks with high credit ratings assigned by international credit rating agencies.

Historical experience of collecting receivables of the Company is supported by low level of past default and hence the credit risk is perceived to be low.

3.3. Liquidity Risk Management

The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

4. SEGMENT INFORMATION

(a) Primary Segment Information

The information reported to the Chief Operating Decision Maker (CODM) for the purpose of resource allocation and assessment of segment performance is based on types of goods delivered. Accordingly, the Company''s reportable segments under Ind AS 108 are as follows

(i) Basic Chemicals

(ii) Fine & Speciality Chemicals

(iii) Performance Products

5. During FY 2018-19, the Company has spent Rs. 250.00 Lakhs on Corporate Social Responsibility activities, against the requirement of Rs. 213.00 Lakhs, being 2% of average of the net profits for the preceding three years.

6. The Income Tax Department has conducted search operations during the year at the premises of the Company. The Company believes that the search operations will not have any material adverse impact on its performance.

7. Events occurring after the balance sheet date: The Board of Directors has recommended, subject to the approval of shareholders, dividend of Rs. 2/- (Rupees Two only) per equity share of face value of Rs. 2/- (Rupees Two only) each for the year ended March 31, 2019 on 13,63,93,041 equity shares amounting to Rs. 3,288.58 Lakhs (including tax on dividend of Rs. 560.72 Lakhs)

8. The Financial Statements were approved for issue by the Board of Directors on May 03, 2019.

Mar 31, 2018

1. RELATED PARTiES DiSCLOSURES

A) Name of Related Party and Nature of Relationship

(i) Subsidiary Companies

Deepak Nitrite Corporation Inc., United States of America Deepak Phenolics Limited

(ii) Key Management Personnel

Mr. D.C. Mehta Chairman & Managing Director

Mr. M.D. Mehta Whole Time Director

Mr. Umesh Asaikar Executive Director & Chief Executive Officer

Mr. Sanjay Upadhyay Director-Finance & Chief Financial Officer

(iii) Entities over which Key Managerial Personnel or their Relatives are able to Exercise Significant influence

Check Point Credits & Capital Private Limited * Deepak Cybit Private Limited * Deepak Fertilizers and Petrochemicals Corporation Limited *Deepak Gulf LLC, Sultanate of Oman* Deepak Foundation * Deepak International Limited * Deepak Medical Foundation * Deepak Research and Development Foundation * Deepak Novochem Technologies Limited. * Forex Leafin Private Limited * Hardik Leafin Private Limited * Pranawa Leafin Private Limited * Skyrose Finvest Private Limited * Sofotel Infra Private Limited * Stepup Credits & Capital Private Limited * Stiffen Credits and Capital Private Limited * Stigma Credit & Capital Private Limited * Storewell Credits and Capital Private Limited * Sundown Finvest Private Limited

(iv) Relative of Key Management Personnel

Mr. C.K. Mehta Mr. A.C. Mehta Mr. Meghav D. Mehta

2. EMPLOYEE BENEFIT OBLIGATIONS

A. Gratuity

Risk Exposure

The Company is exposed to a number of risks, the most significant of which are detailed below:

Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.

Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.

In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognized in the Balance Sheet. The methods and types of assumptions used in preparing the sensitivity analysis did not change as compared to the prior year.

B. Leave Encashment

(a) The Leave Encashment Benefit Scheme is a Defined Benefit Plan and is wholly unfunded. Hence, there are no plan assets attributable to the obligation.

(b) The accumulated balance of Leave Encashment (unfunded) provided in the books as at March 31, 2018, is Rs, 1,081.54 Lakhs (Previous year Rs, 1018.70 Lakhs), which is determined on actuarial basis using Projected Unit Credit Method.

3. CAPITAL MANAGEMENT

For the purposes of Capital Management, the Company considers the following components of its Balance Sheet to manage capital.

39.3.Financial Risk Management Objectives

The Company seeks to minimize the effects of these risks by using financial instruments such as foreign currency forward contracts, option contracts and interest swaps to hedge risk exposures and appropriate risk management policies as detailed below. The use of these financial instruments is governed by the Company''s policies, which outlines principles on foreign exchange risk, interest rate risk, credit risk and deployment of surplus funds.

4.4.Market Risk

The Company''s financial instruments are exposed to market rate changes. The Company is exposed to the following significant market risks

Foreign currency risk

Interest rate risk

Market risk exposures are measured using sensitivity analysis. There has been no change to the Company''s exposure to market risks or the manner in which these risks are being managed and measured.

5. Foreign Currency Risk Management

The Company is exposed to foreign exchange risk on account of following

1. Imports of raw materials and services.

2. Exports of finished goods.

3. Foreign currency borrowings in the form of Term loans, External Commercial Borrowings, buyers credit, packing credit etc. availed for meeting its funding requirements.

The Company has a forex policy in place whose objective is to mitigate foreign exchange risk by deploying the appropriate hedging strategies through combination of various hedging instruments such as foreign currency forward contracts, options contracts and has a dedicated forex desk to monitor the currency movement and respond swiftly to market situations. The Company follows netting principle for managing the foreign exchange exposure.

The forward and option contracts have been entered into to hedge the foreign currency risk on trade receivables and trade payables. The swap contracts have been entered into to hedge the interest rate risks on the external commercial borrowings of the Company.

(d) Foreign Currency Sensitivity Analysis

The above sensitivity analysis does not include effect of Foreign exchange (loss)/gain capitalized as the same does not affect profit or loss or total equity.

39.4.2 interest Rate Risk Management

Interest rates on these borrowings are exposed to change in respective benchmark rates. The Company manages the interest rate risk by maintaining appropriate mix/portfolio of the borrowings.

(a) interest Rate Swap Contract

(b) interest Rate Sensitivity Analysis

If interest rate had been 10 basis points higher/ lower in case of foreign currency borrowings and 25 basis points higher/ lower in case of rupee borrowings and all other variables were held constant, the Company''s profit for the year ended March 31, 2018 would decrease/ increase by Rs, 99.53 Lakhs (March 31, 2017: Rs, 105.99 Lakhs and April 1, 2016 Rs, 59.71 Lakhs)

39.5 Credit Risk Management

Customer credit risk is managed by each business unit subject to the Company''s established policy, procedures and control relating to the customer credit risk management. The Company uses financial information and past experience to evaluate credit quality of majority of its customers and individual credit limits are defined in accordance with this assessment through financial institutions. Outstanding receivables and the credit worthiness of its counterparties are periodically monitored and taken upon case to case basis. The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions representing large number of minor receivables operating in independent markets.

The credit risk on cash and bank balances, derivative financial instruments is limited because the counterparties are banks with high credit ratings assigned by international credit rating agencies.

39.6 Liquidity Risk Management

The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

The table below provides details regarding the contractual maturities of financial (liabilities)/assets including estimated interest payments as at March 31, 2018

6. SEGMENT INFORMATION

(a) Primary Segment information

The information reported to the Chief Operating Decision Maker (CODM) for the purpose of resource allocation and assessment of segment performance is based on types of goods delivered. Accordingly, the Company''s reportable segments under Ind AS 108 are as follows

(i) Basic Chemicals

(ii) Fine & Specialty Chemicals

(iii) Performance Products

Transfer prices between operating segments are on arm''s length basis in a manner similar to transactions with third parties.

(i) Deemed Cost

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognized in the Financial Statements as at the date of transition to Ind AS, measured as per IGAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for decommissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38 ''Intangible Assets'' and investment properties covered by Ind AS 40 ''Investment Property''. The company has determined that the values of items of Plant, Property and Equipment; except for Plant & Machinery, as at March 31, 2016 do not differ materially from fair valuation as at April 1, 2016 (date of transition to Ind AS). Accordingly, the company has not revalued the items of property plant and equipment at April 1, 2016 except for Plant and Machinery which have been measured at fair value at the date of transition to Ind AS. The Company regards the fair value as deemed cost at the transition date, viz., April 1, 2016.

(ii) Designation of Previously Recognized Financial instruments

Ind AS 101 allows an entity to designate investments in equity instruments at FVOCI on the basis of the facts and circumstances at the date of transition to Ind AS.

The Company has elected to apply this exemption for its investment in equity investments.

(iii) investments in Subsidiary Companies and Associate Company

Ind AS 101 permits a first-time adopter to measure it''s investment, at the date of transition, at cost determined in accordance with Ind AS 27, or deemed cost, The deemed cost of such investment shall be it''s fair value at date of transition to Ind AS of the Company, or IGAAP carrying amount at that date. The Company has elected to measure its investment in subsidiary companies and associate company at the IGAAP carrying amount as its deemed cost on the transition date.

(iv) Long-Term Foreign Currency Monetary items

Under IGAAP, para 46A of AS 11 ''The Effects of Changes in Foreign Exchange Rates'', provided an alternative accounting treatment to companies with respect to exchange differences arising on restatement of long-term foreign currency monetary items. Exchange differences on account of depreciable assets can be added | deducted from the cost of the depreciable asset, which will be depreciated over the balance life of the asset. Ind AS 101 includes an optional exemption that allows a first-time adopter to continue the above accounting treatment in respect of the long-term foreign currency monetary items recognized in the Financial Statements for the period ending immediately before the beginning of the first Ind AS financial reporting period.

The Company has opted to apply this exemption.

(b) ind AS Mandatory Exceptions

The Company has applied the following exceptions from full retrospective application of Ind AS as mandatorily required under Ind AS 101.

(i) Estimates

Estimates in accordance with Ind AS at the transition date will be consistent with estimates made for the same date in accordance with IGAAP (after adjustments to reflect any difference in Accounting Policies) unless there is objective evidence that those estimates were in error.

Ind AS estimates as at April 1, 2016 are consistent with the estimates as at the same date made in conformity with IGAAP. The Company made estimates for Investment in equity instruments carried at FVTPL or FVOCI in accordance with Ind AS at the date of transition as these were not required under IGAAP

(ii) Classification and Measurement of Financial Assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets (investment in debt instruments) on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

iii) Notes to the Reconciliations

(a) Plant & Machinery - Fair Value as Deemed Cost As at the date of Transition April 1, 2016, the company has elected to measure Plant & Equipment at fair value and use the fair value as deemed cost with impact of Rs, 71.30 Lakhs in accordance with stipulations of Ind AS 101 with the resultant impact being accounted for in the reserves. During FY 2016-17, depreciation impact on account of Fair valuation amounted to Rs, 531.21 Lakhs which was recognized in the Statement of Profit or Loss.

(b) Forward Contract The Company has recognized the forward contracts at Fair value as on the Balance sheet date and resulting gains losses on the contracts are recognized in the Reserves as on transition date and in the Statement of Profit and Loss for subsequent periods. The underlying assets and liabilities will be measured at the exchange rate prevailing on the balance sheet date.

(c) Fair Valuation of investments Under IGAAP, investments in equity instruments were classified as long-term investments or current investments based on the intended holding period and reliability. Long-term investments were carried at cost less provision for other than temporary decline in the value of such investments. Current investments were carried at lower of cost and fair value. Under Ind AS, these investments are required to be measured at fair value. The resulting fair value changes of these investments have been recognized in other equity and as part of ''Other reserves - FVOCI Equity instruments'' at the date of transition and in the Statement of Profit and Loss for subsequent periods.

(d) Loans & Other Financial Assets Under IGAAP, the Company accounted for Long Term Security Deposits paid and long-term loans to employees at nominal value. Under Ind AS, these financial assets are measured at Fair Value through Profit or Loss. The difference between Fair Value and Nominal value is accounted for as prepaid employee benefit and Deferred Rent Asset. Also under Ind AS, below market interest rate loan received is recorded at fair value by using an appropriate discount rate on date of obtaining the loan. The interest income is recorded periodically till the maturity of the loan and the prepaid account is discounted based on effective interest method.

(e) Deferred Tax MAT credit entitlement which was presented under Other Non Current assets has been presented under Deferred Tax as per the Ind AS requirement. The impact of transition adjustments together with Ind AS mandate of using balance sheet approach (against profit and loss approach in the previous GAAP) for computation of deferred taxes has resulted in charge to the Reserves, on the date of transition, with consequential impact to the Statement of Profit and Loss for the subsequent periods.

(f) Trade Receivables The Company has applied impairment requirements of Ind AS 109.

(g) Retained Earnings Retained earnings as at April 1, 2016 has been adjusted consequent to the above Ind AS transition adjustments.

(h) Proposed Dividend Under IGAAP, dividends proposed by the Board of Directors after the Balance Sheet date, but before the approval of the Financial Statements were considered as adjusting events. Accordingly, provision for proposed dividend was recognized as a liability. Under Ind AS, such dividends are recognized when the same is approved by the Shareholders in the General Meeting. Accordingly, the liability for proposed dividend (including dividend distribution tax) included under current provisions has been reversed with corresponding adjustment to Retained earnings. Consequently, the total equity has increased by an equivalent amount.

(i) Remeasurement of Gratuity Recognized in Other Comprehensive income Under Ind AS, the actuarial gains and losses form part of remeasurement of the net defined benefit liability / asset and are recognized in other comprehensive income. Under previous GAAP, actuarial gains and losses were recognized in statement of profit and loss.

(j) Other Comprehensive income Under Ind AS, all items of income and expense recognized in a period are to be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognized in profit or loss, but are shown in the Statement of Profit and Loss as Other Comprehensive Income which includes remeasurement of defined benefit plans and fair value gain / (loss) on FVOCI equity instruments. The concept of Other Comprehensive Income did not exist under IGAAP.

Mar 31, 2017

Notes:

a. Share issue expenses includes fees of Statutory Auditors of Rs, 15.00 Lakhs (Previous year, Rs, 15.00 Lakhs) for work related to Qualified Institutions Placement.

b. For the year ended March 31, 2017, Dividend per Share is proposed by the Board of Directors as Rs, 1.20/- (Previous year, Rs, 1.20/-). Pursuant to Companies Accounting Standards Amendment Rules 2016 notified by Ministry of Corporate Affairs (G.S.R. 364(E) dated 30.03.2016) amending Accounting Standard 4, dividends proposed/declared after the balance sheet date has not been recognized as Provision/Liability.

Term Loans:-

The Secured Loans from Banks includes:

a) Foreign Currency Loan obtained from Axis Bank during the year amounting to Rs, 4,993.35 Lakhs (Previous year, Rs, Nil) which is to be secured by first pari passu charge by way of mortgage of immovable properties of the Company and both present and future hypothecation of movable assets of the Company. The Company is in the process of executing the necessary charge on the Assets.

b) Term loan from State Bank of India amounting to Rs, 6,639.17 Lakhs (Previous year, Rs, 8,799.17 Lakhs) secured by first pari passu charge by way of mortgage of immovable properties of the Company and both present and future hypothecation of movable assets of the Company. The Company is in the process of executing the necessary charge on the Assets.

c) The outstanding balance of External Commercial Borrowings are from (a) Standard Chartered Bank Rs, 1,653.38 Lakhs (Previous year, Rs, 3,797.56 Lakhs) (b) HSBC Bank (Mauritius) Limited Rs, 1,945.16 Lakhs (Previous year, Rs, 4,974.97 Lakhs) and (c) DBS Bank Limited Rs, 5,458.48 Lakhs (Previous year, Rs, 8,457.44 Lakhs). These are secured by first pari passu charge by way of mortgage of immovable properties of the Company, both present and future and hypothecation of movable assets of the Company and also by second pari passu charge over Current Assets of the Company.

The Unsecured loans from Bank includes long term working capital loan obtained from Kotak Mahindra Bank during the year amounting to Rs, 5,950.00 Lakhs (Previous year, Rs, Nil).

Repayment Schedule:-

a) Rate of interest of Foreign Currency Loan from Bank is 3.35% p.a. including LIBOR

b) Rate of interest of Rupee loan from Banks are in the range of Base Rate/MCLR plus 0.00% to 1.40% p.a.

c) Term loan from State Bank of India is repayable on monthly basis starting from June, 2015 with last installment payable in November, 2021.

d) Term loan from Axis Bank is repayable on quarterly basis starting from June, 2019 with last installment payable in March, 2026.

e) Rate of interest of External Commercial Borrowings are in the range of LIBOR plus 2.50% to 3.00% p.a.

f) External Commercial Borrowing from Standard Chartered Bank is repayable on half-yearly basis which started on August 23, 2013 with a step up repayment schedule and last installment payable on February 23, 2018.

g) External Commercial Borrowing from HSBC Bank (Mauritius) Limited is repayable on half yearly basis which started on March 30, 2014, with a step up repayment schedule and last installment payable on March 29, 2018

h) External Commercial Borrowing from DBS Bank Ltd. is repayable on quarterly basis which started on February 3, 2014, with a step up repayment schedule and last installment payable on November 1, 2018.

i) Long Term working capital loan from Kotak Mahindra Bank is repayable on quarterly basis starting from June, 2017 with last installment payable in September, 2018.

a) Working Capital borrowings from banks represent Cash Credit, Working Capital Demand Loan, Export Packing Credit with rate of interest as Base Rate/MCLR of respective banks plus spread ranging from 0% - 2.00% p.a., Packing Credit in Foreign Currency, Buyers'' Credit against Letter of Undertaking with rate of interest ranging from LIBOR/EURIBOR plus spread ranging from 0.30% p.a. to 0.80% p.a. These borrowings are repayable on demand.

b) Unsecured Commercial Paper placed by the Company during the year carries interest rate ranging from 6.40% p.a. to 7.75% p.a., tenure of each placement ranging from 41 days to 120 days.

c) Secured Working Capital borrowings are Secured by way of first Hypothecation charge over Company''s Raw Materials, Semi-Finished and Finished Goods, Consumable Stores and Book Debts and second charge on all Fixed Assets by way of hypothecation and mortgage.

Note: The Unclaimed Matured deposits of Rs, 7.84 Lakhs outstanding as at March 31, 2017 represents an aggregate amount of certain cheques issued towards compulsory repayment of the outstanding fixed deposits as on March 31, 2015, which have not been presented to the bank for payment by the depositors.

Notes:

1 Building includes Rs, 1,080.00 Lakhs (Previous year, Rs, 1,080.00 Lakhs) in respect of ownership of premises in a co-operative housing society by way of 10 Shares.

2 Certain Assets of Nitrite Unit at Nandesari, Vadodara were revalued on October 31, 1985 as per the valuation report submitted by M/s. PC. Gandhi & Associates, Chartered Engineers and Government approved valuer, where by original cost of Rs, 944.05 Lakhs as of that was restated at replacement cost of Rs, 1,903.81 Lakhs. The details of said assets as on Balance Sheet date net of subsequent deletions are as follows :

3 Capitalized borrowing costs:

Addition to Fixed Assets include borrowing costs (including exchange difference considered as on adjustments to borrowings cost) amounting to Rs, (113.27) Lakhs (Previous year, Rs, 1289.44 Lakhs)

Note: Pursuant to the provisions contained in the Companies (Accounting Standards) Amendment Rules, 2009, and related notifications of Ministry of Corporate Affairs, the Company in 2016-17 has adjusted to fixed assets, foreign exchange differences amounting to Rs, (113.27) Lakhs (Previous year, Rs, 1,289.44 Lakhs) on revaluation of long term foreign currency borrowing for acquisition of fixed assets as an adjustment to borrowing costs.

4 (a) Fixed assets amounting to Rs, 23.03 Lakhs pertaining to Fine & Speciality Chemicals segment forming part of Nandesari division and which were held of disposal, were revalued at Rs, 12.65 Lakhs and loss on revaluation of Rs, 7.58 Lakhs (Previous year, Rs, 4.70 Lakhs) is recognized in Statement of Profit and Loss. Assets pertaining to Performance Products segment were retired from active use in the previous year and held for disposal and are stated at realizable value ie. at Rs, 51.22 Lakhs (Previous year, Rs, 51.22 Lakhs).

(b) In respect of Building held under Capital work in progress at Roha which was impaired in the year 2008-09, Cumulative provision stands at Rs, 397.88 Lakhs as on Balance Sheet date.

(c) During the year, company has sold a parcel of freehold land situated at Pune for a consideration of Rs, 6,960.00 Lakhs and has also surrendered / assigned its leasehold rights in respect of adjoining land for consideration of Rs, 966.00 Lakhs. The profit on sale of land and surrender / assignment of its leasehold rights amounting to Rs, 7,048.38 Lakhs has been recognized in the Statement of Profit and Loss.

(d) During the year, company transferred its leasehold rights in respect of parcel of land located at Dahej for consideration of Rs, 1,597.43 Lakhs to Deepak Phenolics Limited (Wholly Owned Subsidiary). The profit on transfer of its leasehold rights amounting to Rs, 448.33 Lakhs has been recognized in the Statement of Profit and Loss.

5. Disclosure under AS 18 "Related Party Disclosures" (i) Subsidiary Companies:

Deepak Nitrite Corporation Inc., United States of America Deepak Phenolics Limited

(ii) Associate Company:

Deepak Gulf LLC, Sultanate of Oman

(iii) Key Management Personnel

Shri D.C. Mehta, Chairman & Managing Director Shri A.C. Mehta, Managing Director Shri M.D. Mehta, Whole Time Director

Shri Umesh Asaikar, Executive Director & Chief Executive Officer

(iv) Entities over which key managerial personnel or their relatives are able to exercise significant Influence.

Check Point Credits & Capital Private Limited * Deepak Cybit Private Limited * Deepak Fertilizers and Petrochemicals Corporation Limited * Deepak Foundation * Deepak International Limited * Deepak Medical Foundation * Deepak Research and Development Foundation * Deepak Novochem Technologies Limited. * Forex Leafin Private Limited *Hardik Leafin Private Limited * Pranawa Leafin Private Limited * Skyrose Finvest Private Limited * Sofotel Infra Private Limited * Stepup Credits & Capital Private Limited * Stiffen Credits and Capital Private Limited * Stigma Credit & Capital Private Limited * Sundown Finvest Private Limited

(v) Relative of Key Management Personnel

Shri C.K. Mehta Shri Meghav D. Mehta

6. On October 21, 2016, there was a fire at one of the Company''s manufacturing unit at Roha Industrial Estate, Maharashtra. Out of the four affected facilities at the unit, three have resumed operation by now in a phased manner. The facility, where accident took place, is expected to resume full fledged operations by May, 2017. The Company is adequately insured for replacement value of the damaged facilities and loss of profits due to business interruption; claims under insurance have been lodged and shall be recognized in due course. Therefore, no effect has been given in the books of accounts.

The information in respect of commitment has been given only in respect of capital commitments in order to avoid providing excessive details that may not assist users of financial statements.

7. During FY 2016-17, your Company has spent Rs, 205.00 Lakhs on Corporate Social Responsibility activities, against the requirement of Rs, 163.00 Lakhs, being 2% of average of the net profits for the preceding three years.

8. Previous year''s figures are shown in bracket and have been re-classified / regrouped to conform to this year''s classification / groupings.

Mar 31, 2016

(a) Shares:- Terms/Rights:

i) Authorized shares have been classified into Equity and Preference shares.

ii) During the year, the Company offered Equity Shares to Qualified Institutional Buyers ("QIBs") through Qualified
Institutions Placement in accordance with Chapter VIII of SEBI (Issue of Capital and Disclosure Requirements) Regulations,
2009. Accordingly, 1,1 7,50,000 Equity Shares of Rs, 2/- each were allotted to QIBs on January 6, 201 6 at an issue price
of Rs, 70.90 per Equity Share (including premium of Rs, 68.90 per Equity Share).

Out of the issue proceeds of Rs, 8,330.75 Lacs from the Qualified Institutions Placement, Rs, 260.07 Lacs were utilized
towards share issue expenses and Rs, 1,374.00 Lacs has been utilized for the object stated in the offer document. Pending
utilization, Rs, 6,696.68 Lacs have been invested in Liquid Mutual Funds.

iii) Each holder of the Equity Share is entitled to one vote per Share. The Company declares and pays Dividend in Indian
Rupees. The Dividend proposed by the Board of Directors is subject to approval of the Shareholders at the ensuing
Annual General Meeting.

iv) During the year ended March 31, 2016, the amount of per Share Dividend recognized as distribution to Equity
Shareholders is Rs, 1 .20/- (Previous year, Rs, 1/-).

v) In the event of liquidation of the Company, the holders of Equity Shares shall be entitled to receive remaining assets of
the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity
Shares held by the Shareholders. No preferential amounts exist as on the Balance Sheet date.

(d) During the year 201 4-1 5, Company has allotted 52,269,095 Bonus Equity shares of Rs, II- each, fully paid up, in the ratio
of 1 :1 (one Bonus Equity shares of Rs, II- each).

Term Loans:-

The Loans from Banks includes term loan obtained from State Bank of India during the year amounting to Rs, 1,197.10 Lacs
(Previous year, Rs, 4,202.07 Lacs), which is to be secured by first pari passu charge by way of mortgage of immovable properties
of the Company and both present and future hypothecation of movable assets of the Company. The Company is in the process of
executing the necessary charge on the Assets. The outstanding balance of External Commercial Borrowings are from (a) Standard
Chartered Bank Rs, 3,797.56 Lacs (Previous year, Rs, 5,1 95.04 Lacs) (b) HSBC Bank (Mauritius) Limited Rs, 4,974.97 Lacs (Previous
year, Rs, 7,041 .47 Lacs) and (c) DBS Bank Limited Rs, 8,457.44 Lacs (Previous year, Rs, 9,701.57 Lacs). These loans are secured by
first pari passu charge by way of mortgage of immovable properties of the Company, both present and future and hypothecation
of movable assets of the Company and also by second pari passu charge over Current Assets of the Company.

Repayment Schedule:-

a) Rate of interest of loan from Banks are in the range of base rate plus 0.50% to 1 .00% p.a.

b) Term loan from State Bank of India is repayable on monthly basis starting from June, 201 5 with last installment payable in
November, 2021.

c) Rate of interest of External Commercial Borrowings are in the range of LIBOR plus 2.50% to 3.00% p.a.

d) External Commercial Borrowing from Standard Chartered Bank is repayable on half-yearly basis which started on August
23, 201 3 with a step up repayment schedule and last installment payable on February 23, 201 8.

e) External Commercial Borrowing from HSBC Bank (Mauritius) Limited is repayable on half yearly basis which started on
March 30, 201 4, with a step up repayment schedule and last installment payable on March 29, 201 8.

f) External Commercial Borrowing from DBS Bank Ltd. is repayable on quarterly basis which started on February 3, 201 4, with
a step up repayment schedule and last installment payable on November 1, 201 8.

a) Working Capital borrowings from banks represent Cash Credit, Working Capital Demand Loan, Export Packing Credit
with rate of interest as Base Rate of respective banks plus spread ranging from 0% - 2.25% p.a., Packing Credit in Foreign
Currency, Buyers'' Credit against Letter of Undertaking with rate of interest ranging from LIBOR/EURIBOR plus spread
ranging from 0.25% p.a. to 1 .1 0% p.a. These borrowings are repayable on demand.

b) Secured Working Capital borrowings are Secured by way of first Hypothecation charge over Company''s Raw Materials,
Semi-Finished and Finished Goods, Consumable Stores and Book Debts and second charge on all Fixed Assets by way of
hypothecation and mortgage.

c) Commercial Paper placed by the Company carries interest rate ranging from 7.50% p.a. to 9.15% p.a., tenure of each
placement ranging from 43 days to 140 days. Commercial Papers issued during the year were unsecured.

Note: The Unclaimed Matured deposits of Rs, 9.22 Lacs outstanding as at March 31, 201 6 represents an aggregate amount of
certain cherubs issued towards compulsory repayment of the outstanding fixed deposits as on March 31, 201 5, which have not
been presented to the bank for payment by the depositors.

Note: Pursuant to the provisions contained in the Companies (Accounting Standards) Amendment Rules, 2009, and
related notifications of Ministry of Corporate Affairs, the Company in 2015-16 has adjusted to fixed assets, foreign
exchange differences amounting to Rs, 1,289.44 Lacs (Previous year, Rs, 1,950.21 Lacs) on revaluation of long term
foreign currency borrowing for acquisition of fixed assets as an adjustment to borrowing costs.

4 (a) Out of fixed assets amounting to Rs, 26.02 Lacs pertaining to Fine & Specialty Chemicals segment forming part of
Nandesari division and which were held of disposal, assets worth Rs, 1 .1 0 Lacs (Previous year, Rs, 8.26 Lacs) were sold
during the year at a profit of Rs, 0.06 Lacs (Previous year, loss Rs, 5.49 Lacs) recognized in Statement of Profit and Loss.
The remaining assets are revalued at Rs, 20.23 Lacs (Previous year, Rs, 26.02 Lacs) and loss on revaluation of Rs, 4.70
Lacs (Previous year, Rs, 21 .01 Lacs) is recognized in Statement of Profit & Loss. During the current year Assets pertaining
to Fluorescent Whitening Agent segment having carrying value of Rs, 57.77 Lacs (Previous year, NIL) are retired from
active use and are held for disposal. These assets are stated at lower of book value and realizable value ie. at
Rs, 51 .22 Lacs (Previous year, NIL) separately in the financial statements as Current Assets held for disposal. The
difference between realizable value and carrying value being loss of Rs, 6.55 Lacs (Previous year, NIL) is recognized in
the current year''s Statement of Profit and Loss.

(b) In respect of Building held under Capital work in progress at Roha which was impaired in the year 2008-09, cumulative provision stands at Rs, 397.88 Lacs as on Balance Sheet date,

(c ) Further, in respect of Factory Building at Roha which was impaired in the year 2008-09, during the previous year,impairment provision of Rs, 23.03 Lacs was reversed as the said assets were put to alternate use. Cumulative provision stands Nil.

i) Aggregate amount of Unquoted Investments is Rs, 6,521 .92 Lacs (Previous year, Rs, 1,694.83 Lacs),

ii) Aggregated amount of Quoted Investments is Rs, 6,773.89 Lacs (Previous year, Rs, 22.39 Lacs),

iii) Aggregate Market Price of Quoted Investments Rs, 6,893.06 Lacs (Previous year, Rs, 1 01 .07 Lacs).

Notes:

1 . During the previous year Company has paid Rs, 51 0.00 Lacs towards Share Application Money to Deepak Phenolics Limited
(Wholly Owned Subsidiary). During the year the Company was alloted shares against the same.

2. Loans to Company has been given for business purpose.

1. Employee Retirement Benefits

A) Gratuity

Description of the Plan:

The Company has covered its Gratuity Liability by a Group Gratuity Policy named ''Employee Group Gratuity Assurance
Scheme'' issued by Life Insurance Corporation of India. Under this plan, an employee at retirement is eligible for benefit,
which will be equal to 15 days salary for each completed year of service. Thus, it is a defined benefit plan and the
aforesaid insurance policy is the Plan Asset.

2. Disclosure under AS 18 "Related Party Disclosures"

(i) Subsidiary Companies:

Deepak Nitrite Corporation Inc., United States of America

Deepak Phenolics Limited
(ii) Associate Company:

Deepak Gulf LLC, Sultanate of Oman
(iii) Key Management Personnel

Shri C.K. Mehta, Chairman

Shri D.C. Mehta, Vice Chairman & Managing Director

Shri A.C. Mehta, Managing Director

Shri Umesh Asaikar, Executive Director & Chief Executive Officer

(iv) Companies over which key managerial personnel or their relatives are able to exercise significant
Influence.

Blue Shell Investment Private Limited * Check Point Credits & Capital Private Limited * Crossover Advisors Private Limited *
Crossover Trustees Private Limited * Deepak Asset Reconstruction * Deepak Cybit Private Limited * Deepak Fertilizers and
Petrochemicals Corporation Limited * Deepak Foundation * Deepak International Limited * Deepak Medical Foundation *
Deepak Research and Development Foundation * Deepak Novochem Technologies Limited. * Forex Leafin Private Limited
* Grey Point Investments Private Limited *Hardik Leafin Private Limited * Kawant Developers Corporation *Nucore Capital
Management Private Limited * Pranawa Leafin Private Limited * Prolific Credits & Capital Private Limited * Skyrose Finvest
Private Limited * Sofotel Infra Private Limited * Stepup Credits & Capital Private Limited * Stiffen Credits and Capital Private
Limited * Stigma Credit & Capital Private Limited * Storewell Credits & Capital Private Limited * Sundown Finvest Private
Limited * Superpose Credits & Capital Private Limited * Synergy Li Power Resources Private Limited * The Lakaki Works Private
Limited * Yerrowda Investment Limited

(v) Relative of Key Management Personnel

Shri Maulik D. Mehta
Shri Meghav D. Mehta

3. The Company has entered into a long term contractual arrangement with GAIL India Limited ("GAIL") for supply of Gas with
a Take or Pay obligations. A communication was received from GAIL regarding non-consumption of committed quantity for
the year 2014. Accordingly, the Company is required to deposit a sum of Rs, 71 8.00 Lacs which may subsequently be adjusted
in future against the consumption of Gas. The matter has been referred to an arbitrator for settlement, which is pending.
However, GAIL has offered the Company to settle the matter amicably by paying one-time charges of Rs, 141 .00 Lacs. Based
on the above understanding, the Company has prudently provided for the said charges during the year.

As regards the year 201 5, GAIL has agreed to allow the Company to consume the unconsumed Gas in the subsequent years
till the term of the agreement i.e year 2028, without payment of any deposit.

4. During FY 201 5-1 6, your Company has spent Rs, 1 57.60 Lacs (including the unspent amount of Rs, 1 5.72 Lacs in the previous
year) on Corporate Social Responsibility activities, against the requirement of Rs, 122.00 Lacs, being 2% of average of the net
profits for the preceding three years.

5. Previous year''s figures are shown in bracket and have been re-classified / regrouped to conform to this year''s classification
/ groupings.

Mar 31, 2014

1. FOREIGN EXCHANGE DIFFERENCES

Pursuant to the provisions contained in the Companies (Accounting Standards) Amendment Rules, 2009, and related notifications of Ministry of Corporate Affairs, the Company has adjusted to fixed assets, foreign exchange differences amounting to Rs.2,715.94 Lacs ( Rs.1,483.89 Lacs) on revaluation of long term foreign currency borrowing for acquisition of fixed assets.

Further, the Company has also opted to follow the extension of provisions made vide Notification dated December 29, 2011, issued by the Ministry of Corporate Affairs to the long term foreign currency borrowings other than those utilised for fixed assets. Accordingly, the Company has, with effect from April 1, 2011, amortised the foreign exchange loss incurred on such borrowings over their balance term. Since the entire amount of Foreign Currency loan has been fully repaid during the year, no further loss on account of foreign exchange (` 103.74 Lacs) is transferred to the "Foreign Currency Monetary Item Translation Difference Account" and the remaining balance of Rs.85.52 Lacs ( Rs.98.34 Lacs) has been fully amortised during the year under the head "Exchange Fluctuation Loss Account".

(a) Shares:- Terms/Rights:

i) Authorised shares have been classified into Equity and Preference Shares.

ii) The Company has issued Equity Shares having par value of Rs.10/- per Share. Each holder of the Equity Share is entitled to one vote per Share. The Company declares and pays Dividends in Indian Rupees. The Dividend proposed by the Board of Directors is subject to approval of the Shareholders at the ensuing Annual General Meeting.

iii) During the year ended March 31, 2014, the amount of per share dividend recognised as distribution to Equity Shareholders is Rs.10/- (Rs. 8/-).

iv) In the event of liquidation of the Company, the holders of Equity Shares shall be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. No Preferential amounts exist as on the Balance Sheet date. The distribution will be in proportion to the number of Equity Shares held by the Shareholders.

(b) Reconciliation of the shares outstanding and the amount of Share Capital at the beginning and at the end of the reporting period

Company has not issued any Equity Shares or Preference Shares during the year.

Term Loans

The Loans from Banks includes term loan obtained from State Bank of India during the year amounting to Rs.5,200.00 Lacs ( Rs.Nil), this is to be secured by first pari passu charge by way of mortgage of immovable properties of the Company and both present and future hypothecation of movable assets of the Company. The Company is in the process of executing the necessary charge on the assets. Foreign Currency Loan from Banks includes Loan from Bank of Baroda Rs.Nil ( Rs.490.71 Lacs) while External Commercial Borrowings are obtained from (a) Standard Chartered Bank Rs.6,430.68 Lacs ( Rs.6,526.72 Lacs) (b) HSBC Bank (Mauritius) Limited Rs.8,338.85 Lacs ( Rs.8,158.40 Lacs) and (c) DBS Bank Limited Rs.10,517.46 Lacs ( Rs.9,790.07 Lacs). These are secured by first pari passu charge by way of mortgage of immovable properties of the Company, both present and future hypothecation of movable assets of the Company and also by second pari passu charge over Current Assets of the Company. Repayment Schedule

a) Rate of interest of loan from Banks are in the range of base rate plus 0.50% to 1.00% p.a.

b) Term loan from State Bank of India is repayable on monthly basis starting from June, 2015 with last installment payable in November, 2021.

c) Rate of interest of Term Loan and External Commercial Borrowings are in the range of LIBOR plus 2.50% to 3.00% p.a.

d) Foreign Currency Loan from Bank of Baroda is repaid during the year.

e) External Commercial Borrowing from Standard Chartered Bank is repayable on half-yearly basis which started on August 23, 2013 with a step up repayment schedule and last installment payable on February 23, 2018.

f) External Commercial Borrowing from HSBC Bank (Mauritius) Limited is repayable on half yearly basis which started on March 30, 2014, with a step up repayment schedule and last installment payable on March 29, 2018.

g) External Commercial Borrowing from DBS Bank Limited is repayable on quarterly basis which started on February 3, 2014, with a step up repayment schedule and last installment payable on November 1, 2018.

h) Deferred sales tax loan is interest free and payable in 8 yearly installments starting from April 2008 and last installment payable before March, 2016.

2. Capitalised Borrowing Costs:

Addition to Fixed Assets include borrowing costs (including exchange difference considered as on adjustments to borrowings cost) amounting to Rs.3,196.87 Lacs (Previous Year Rs.1,697.57 Lacs)

3 (a) Out of fixed assets amounting to Rs.188.19 Lacs pertaining to Fine & Specialty segment forming part of Nandesari division and which were held of disposal since last financial year, assets worth Rs.67.71 Lacs were sold during the year at a loss of Rs.46.16 Lacs recognised in Statement of Profit & Loss. The remaining assets were revalued at Rs. 89.91 Lacs and loss on revaluation of Rs.30.57 Lacs is also recognised in Statement of Profit & Loss.

(b) In respect of Building held under Capital work in progress at Roha which was impaired in the year 2008-09, no further provision (Previous Year Rs.16.50 Lacs) is made and cumulative provision stands at Rs.381.00 Lacs as on Balance Sheet date.

(c) Further, in respect of Factory Building at Roha which was impaired in the year 2008-09, and subsequently put to alternate use in the year 2012-13, no further provision is made during the year and cumulative provision stands at Rs.23.03 Lacs as on Balance Sheet date.

(d) During the current year, the Company has provided for impairment loss of Rs.13.66 Lacs in respect of Plant & Machinery pertaining to Organic Intermediates segment at Taloja Division.

4. EMPLOYEE RETIREMENT BENEFITS

A) Gratuity

Description of the Plan

The Company has covered its Gratuity Liability by a Group Gratuity Policy named ''Employee Group Gratuity Assurance Scheme'' issued by Life Insurance Corporation of India. Under this plan, an employee at retirement is eligible for benefit, which will be equal to 15 days salary for each completed year of service. Thus, it is a defined benefit plan and the aforesaid insurance policy is the Plan Asset.

iii) The accumulated balance of Leave Encashment (unfunded) provided in the books as at March 31, 2014, is Rs.485.78 Lacs ( Rs.412.68 Lacs), which is determined on actuarial basis using Projected Unit Credit Method.

5. DISCLOSURE UNDER ACCOUNTING STANDARD 18 "RELATED PARTY DISCLOSURES"

(i) Subsidiary Companies: (Refer Note below)

Deepak Nitrite LLC, United States of America.

(ii) Associate Companies:

Deepak Gulf LLC, Oman.

(iii) Key Management Personnel

Shri C.K. Mehta Chairman

Shri D.C. Mehta Vice Chairman & Managing Director

Shri A.C. Mehta Managing Director

Shri Umesh Asaikar Executive Director & Chief Executive Officer

(iv) Companies over which key managerial personnel or their relatives are able to exercise significant Influence

Blue Shell Investment Private Limited * Check Point Credits & Capital Private Limited * Crossover Advisors Private Limited

* Crossover Trustees Private Limited * Deepak Asset Reconstruction * Deepak Clean Tech Limited * Deepak Fertilisers and Petrochemicals Corporation Limited * Deepak Foundation * Deepak International Limited * Deepak Medical Foundation * Deepak Research and Development Foundation * Deepak Novochem Technologies Limited. * Forex Leafin Private Limited

* Grey Point Investments Private Limited *Hardik Leafin Private Limited * Kawant Developers Corporation *Nucore Capital Management Private Limited * Pranawa Leafin Private Limited * Prolific Credits & Capital Private Limited * Skyrose Finvest Private Limited * Sofotel Infra Private Limited * Stepup Credits & Capital Private Limited * Stiffen Credits and Capital Private Limited * Stigma Credit & Capital Private Limited * Storewell Credits & Capital Private Limited * Sundown Finvest Private Limited * Superpose Credits & Capital Private Limited * Synergy Li Power Resources Private Limited * The Lakaki Works Private Limited * Yerrowada Investment Limited * Deepak Cybit Private Limited.

(v) Relative of Key Management Personnel

Shri M.D. Mehta

6. CONTINGENT LIABILITIES NOT PROVIDED FOR

Rs.in Lacs

As At As At March 31, 2014 March 31, 2013

a) In respect of Income Tax matters 147.46 46.92

b) In respect of Sales Tax / VAT matters 11.65 11.65

c) In respect of excise matters 221.51 98.15

d) Bank Guarantees:

- Financial 449.68 35.70

- Performance 2,825.51 1,669.84

e) In respect of Stamp duty matter 22.85 22.85

f) Disputed Labour Matters Amount not ascertained

In respect of (a) to (c),(e) & (f), future cash outflow in respect of contingent liabilities is determinable only on receipt of judgments pending at various forums/authorities.

Total 3,678.66 1,885.11

7. DISCLOSURE UNDER ACCOUNTING STANDARD-19 "LEASES"

Disclosure for Operating Leases:

The Company has leased office premises under operating lease. Lease payment debited to the Statement of Profit & Loss during the year ` 42.59 Lacs ( Rs.40.26 Lacs).

8. Previous year''s figures are shown in bracket and have been re-classified/regrouped to conform to this year''s classification/ groupings.

Mar 31, 2013

COMPANY OVERVIEW

Deepak Nitrite Limited (''DNL'' or ''the Company'') is a leading chemical manufacturing Company. The Company manufactures Organic Intermediates, Inorganic Intermediates and Fine & Speciality Chemicals.

1. Foreign Exchange Differences:

Pursuant to the provisions contained in the Companies (Accounting Standards) Amendment Rules, 2009, and related notifications of Ministry of Corporate Affairs, the Company has adjusted to fixed assets, foreign exchange differences amounting to Rs. 1,483.89 Lacs (Rs. 696.31 Lacs) on revaluation of long term foreign currency borrowing for acquisition of fixed assets.

Further, the Company has also opted to follow the extension of provisions made vide Notification dated December 29, 2011, issued by the Ministry of Corporate Affairs to the long term foreign currency borrowings other than those utilised for fixed assets. Accordingly, the Company has, with effect from April 1, 2011, amortised the foreign exchange loss incurred on such borrowings over their balance term. Total foreign exchange loss of Rs. 103.74 Lacs (Rs.125.21 Lacs) has been transferred to the "Foreign Currency Monetary Item Translation Difference Account" and Rs. 98.34 Lacs (Rs. 45.09 Lacs) has been amortised during the year underthe head "Exchange Fluctuation Loss Account".

2 (a) During the financial year 2010-11, Company had provided Impairment Loss of Rs. 156.64 Lacs on one of the Fine & Speciality Sagment assets of being a cash generating unit forming part of Nandesari divison. During the current financial year, the said asset has been dismantled. The said plant & equipments are held for disposal at the realisable value of Rs. 188.19 Lacs. Loss on discarding of these assets amounting to Rs. 248.37 Lacs has been recognised in Statement of Profit & Loss. Accordingly, the Impairment Provision ofRs. 156.64 Lacs has been reversed during theyear.

(b) During the year 2008-09, Company had provided Impairment Loss of Rs. 381.38 Lacs on the Building held under Capital work in progress at Roha. The said Building is not in use, hence further provision of Rs. 16.50 Lacs was recognised during the year. Accordingly, total Impairment provided till date stands atRs. 397.88 Lacs for the said asset.

(c) Also during the year 2008-09, Company had provided Impairment Loss ofRs. 89.00 Lacs on the Factory Buildings earlier used at Roha. Company has made modifications to the said Buildings and is suitable for manufacture of some of it''s products. Accordingly Impairment provision to the extent ofRs. 65.97 Lacs is reversed during theyear.

3. Employee Retirement Benefits A) Gratuity Description of the Plan:

The Company has covered its Gratuity Liability by a Group Gratuity Policy named ''Employee Group Gratuity Assurance Scheme'' issued by Life Insurance Corporation of India. Under this plan, an employee at retirement is eligible for benefit, which will be equal to 15 days salary for each completed year of service. Thus, it is a defined benefit plan and the aforesaid insurance policy is the Plan Asset.

4. Disclosure under AS 18 "Related Party Disclosures"

List of Parties:

(i) Associate Companies

Blue Shell Investment Private Limited * Check Point Credits & Capital Private Limited * Crossover Advisors Private Limited * Crossover Trustees Private Limited * Deepak Asset Reconstruction * Deepak Cleantech Limited * Deepak Fertilisers and Petrochemicals Corporation Limited * Deepak International Limited * Deepak Medical Foundation * Deepak Research and Development Foundation * Deepak Novochem Technologies Limited. * Forex Leafin Private Limited * Grey Point Investments Private Limited

* Hardik Leafin Private Limited * Kawant Developers Corporation * Nucore Capital Management Private Limited * Pranawa Leafin Private Limited * Prolific Credits & Capital Private Limited * Skyrose Finvest Private Limited * Sofotel Software Infra Private Limited

* Stepup Credits & Capital Private Limited * Stiffen Credits and Capital Private Limited * Stigma Credit & Capital Private Limited

* Storewell Credits & Capital Private Limited * Sundown Finvest Private Limited * Superpose Credits & Capital Private Limited

* Synergy Li Power Resources Private Limited *The Lakaki Works Private Limited * Yerowada Investment Limited.

(ii) Key Management Personnel

(i) Shri C. K. Mehta

(ii) Shri D. C. Mehta

(iii) Shri A. C. Mehta

(iii) Relative of Key Management Personnel

(i) Shri M. D. Mehta

5. Disclosure under AS-19 "Leases"

Disclosure for Operating Leases:

The Company has leased office premises under operating lease. Lease payment debited to the Statement of Profit & Loss during the yearRs.40.26 Lacs (Rs.3.37 Lacs).

6. Previous year''s figures are shown in bracket and have been re-classified to conform to this year''s classification.

Mar 31, 2012

COMPANY OVERVIEW

Deepak Nitrite Limited ('DNL' or 'The Company') is a leading chemical manufacturing Company. The Company manufactures Organic Intermediates, Inorganic Intermediates and Fine & Speciality Chemicals.

1. Foreign Exchange Differences:

Pursuant to the provisions contained in the Companies (Accounting Standards) Amendment Rules, 2009, and related notifications of the Ministry of Corporate Affairs, the Company has adjusted to fixed assets, foreign exchange differences amounting to Rs 696.31 lacs on revaluation of long term foreign currency borrowing for acquisition of fixed assets.

Further, the Company has also opted to follow the extension of provisions made vide Notification dated December 29, 2011, issued by the Ministry of Corporate Affairs to the Long Term Foreign Currency Borrowings other than those utilised for fixed assets. Accordingly, the Company has, with effect from April 1, 2011, amortised the foreign exchange loss incurred on such borrowings over their balance term. Total foreign exchange loss of Rs 125.21 lacs has been transferred to "Foreign Currency Monetary Item Translation Difference Account" and Rs 45.09 lacs has been amortised during the year under the head "Exchange Fluctuation Loss Account".

(a) Shares : Terms / Rights

i) Authorised Shares have been classified into Equity and Preference Shares.

ii) The Company has issued Equity Shares having par value of Rs 10/- per Share. Each holder of Equity Shares is entitled to one vote per Share. The Company declares and pays Dividends in Indian Rupees. The Dividend proposed by the Board of Directors is subject to the approval of the Shareholders at the ensuing Annual General Meeting.

iii) During the year ended March 31, 2012, the amount of per Share Dividend recognised as distribution to Equity Shareholders is Rs 6/- (Rs 6/-).

iv) In the event of liquidation of the Company, the holders of Equity Shares shall be entitled to receive remaining assets of the Company, after distribution of all Preferential amounts. No Preferential amounts exist as on Balance Sheet date. The distribution will be in proportion to the number of Equity Shares held by the Shareholders.

Term Loans

The Term Loan is obtained from Bank of Baroda while External Commercial Borrowings are obtained from (a) Standard Chartered Bank

(b) HSBC Bank (Mauritius) Limited and (c) DBS Bank Limited. These are Secured by first pari passu charge by way of mortgage of immovable properties of the Company, both present and future and hypothecation of movable assets of the Company and also by second pari passu charge over Current Assets of the Company. Charge in case of DBS Bank Limited is in the process of creation.

Repayment Schedule

a) Rates of Interest for Term Loan and External Commercial Borrowings are based on LIBOR plus agreed spread.

b) Term Loan from Bank of Baroda is repayable in equal half-yearly instalments of Rs 245 lacs with the last instalment payable on March 29, 2015.

c) External Commercial Borrowing from Standard Chartered Bank is repayable on half-yearly basis starting from August 23, 2013 with a step up repayment schedule with last instalment payable on February 23, 2018.

d) External Commercial Borrowing from HSBC Bank ( Mauritius) Limited is repayable on quarterly basis starting from March 30, 2014 with a step up repayment schedule with last instalment payable on March 29, 2018.

e) External Commercial Borrowing from DBS Bank Ltd is repayable on quarterly basis starting from February 3, 2014 with a step up repayment schedule with last instalment payable on November 1, 2018.

f) Deferred Sales Tax Loan is interest free and payable in 8 yearly instalments starting from April, 2008 and last instalment payable before March, 2016.

a) Cash Credit from Banks are Secured by a prior charge over Company's stocks of Raw Materials, Semi-Finished and Finished Goods, Consumable Stores and Book Debts and by second charge on all Fixed Assets by way of hypothecation and mortgage.

b) Cash Credit is repayable on demand and carries interest @ base rate plus range spread of 2.50% to 4.25% p.a.

c) Short Term Loans from Bank represent Buyers' Credit and Packing Credit including borrowing against Letter of Undertaking. This line of Credit is generally due within 180 days and carry interest in the range of LIBOR plus 1.5 % to 3 % p.a.

2. During financial year 2008-09, Company had provided impairment loss of Rs 69.60 lacs on the assets of DNPT Unit being a cash generating unit forming part of Inorganic Intermediates Segment. During the current financial year, the entire asset of this unit have been demolished / scrapped. Loss on demolition/ scrapping of these assets amounting to Rs 66.31 lacs has been recoginsed which includes cost of demolition of Rs 25 lacs and is net of scrap value realised Rs Nil. Accordingly, the impairment provision of Rs 69.60 lacs has been reversed during the year.

Note to above:

Foreign Exchange difference and Interest Includes:

i) Rs 696.31 lacs (Rs Nil) being exchange difference considered as an adjustments to borrowing costs. Out of the above Rs 46.17 lacs has been capitalised during the year.

ii) Interest is net of interest earned Rs 456.60 lacs (Rs Nil) on temporary deployment of capital funds. Out of the above, Rs 20.51 lacs related to capitalised amount has been transferred to Fixed Assets.

i) Aggregate amount of Unquoted Investments is Rs 110.53 lacs (Rs 110.53 lacs).

ii) Aggregate amount of Quoted Investments is Rs 22.39 lacs (Rs 22.39 lacs).

iii) Aggregate Market Price of Investment in Equity Instrument (Quoted) Rs 112.36 lacs (Rs 136.02 lacs).

3. EMPLOYEE RETIREMENT BENEFITS

A) Gratuity Description of the Plan:

The Company has covered its Gratuity Liability by a Group Gratuity Policy named 'Employee Group Gratuity Assurance Scheme' issued by Life Insurance Corporation of India. Under the plan, employee at retirement is eligible for benefit, which will be equal to 15 days salary for each completed year of service. Thus, it is a Defined Benefit Plan and the aforesaid insurance policy is the Plan Asset.

4. DISCLOSURE UNDER AS 18 "RELATED PARTY DISCLOSURES" ISSUED BY INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA

List of Parties:

(i) Associate Companies

Blue Shell Investment Private Limited - Check Point Credits & Capital Private Limited - Crossover Advisors Private Limited

- Crossover Trustees Private Limited - Deepak Asset Reconstruction Private Limited - Deepak Cleantech Limited - Deepak Fertilisers and Petrochemicals Corporation Limited - Deepak International Limited - Deepak Medical Foundation - Deepak Research and Development Foundation - Deepak Novochem Technologies Limited - Forex Leafin Private Limited - Grey Point Investments Private Limited - Hardik Leafin Private Limited - Kawant Development Corporation - Nucore Capital Management Private Limited - Pranawa Leafin Private Limited - Prolific Credits & Capital Private Limited - Skyrose Finvest Private Limited - Sofotel Software Services Private Limited - Stepup Credits & Capital Private Limited - Stiffen Credits and Capital Private Limited

- Stigma Credits & Capital Private Limited - Storewell Credits & Capital Private Limited - Sundown Finvest Private Limited - Superpose Credits & Capital Private Limited - The Lakaki Works Private Limited - Yerowada Investment Limited.

5. CONTINGENT LIABILITIES NOT PROVIDED FOR

March 31, 2012 March 31, 2011 Rs in Lacs Rs in Lacs

a) in respect of Income Tax matters 136.79 77.43

b) in respect of Sales Tax / VAT matters 18.62 17.11

c) in respect of Excise matters 90.92 64.65

d) Bank Guarantees:

- Financial 521.58 513.79

- Performance 352.97 339.59

e) in respect of disputed liability relating to non-utilisation of industrial plot within specified time frame 99.36 25.47

f) Disputed Labour Matters Amounts not ascertained In respect of (a) to (c) & (e) to (f) future cash outflow in respect of contingent liabilities is determinable only on receipt of judgments pending at various forums/authorities.

TOTAL 1,220.24 1,038.04

6. The Financial Statements for the year ended March 31, 2011 had been prepared as per the then applicable, pre-revised Schedule VI to the Companies Act, 1956. Financial Statements for the year ended March 31, 2012 has been prepared as per Revised Schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this year's classification. The adoption of Revised Schedule VI does not impact recognition and measurement principles followed for preparation of Financial Statements.

7. Previous year's figures are shown in bracket.

Mar 31, 2011

1. Estimated amount of contracts (net of advances) remaining to be executed on capital account not provided for:

2. Contingent liabilities not provided for :

March 31, 2011 March 31, 2010 Rs. in Lacs Rs. in Lacs

(a) in respect of Income Tax matters 77.43 214.82

(b) in respect of Sales Tax / VAT matters 17.11 172.51

(c) in respect of Excise matters 64.65 64.65

(d) Bank Guarantees :

- Financial 513.79 320.12

- Performance 339.59 329.67

(e) in respect of disputed liability relating to non-utilisation of industrial plot within specified time frame 25.47 -

(f) Disputed labour matters Amounts not ascertained In respect of (a) to (c) & (e) to (f) future cash outflow in respect of contingent liabilities is determinable only on receipt of judgments pending at various forums/authorities.

Total 1038.04 1101.77

3. Security deposit of Rs. 400 lacs (Rs. 400 lacs) placed with Shri D. C. Mehta towards lease of residential premises.

4. Other Current Assets include estimated realisable value of assets held for disposal of Rs. 18.00 lacs (Rs. 60.99 lacs), accrued benefits under Duty Entitlement Pass Book Scheme of Rs. 407.26 lacs (Rs. 732.03 lacs) and Target Plus Scheme Rs. 84.98 lacs (Rs. 172.29 lacs).

5. The Company takes forward contracts to hedge exposures arising out of net foreign currency payables and receivables.

6. Disclosures pursuanttothe requirementsofAccounting Standards:

(a) Impairment of Assets:

Based on the assessment for any indication of impairment in the carrying amount of the fixed assets, Company has recognised impairment loss as on March 31, 2011 of fixed assets, being Plant and Machinery producing certain Fine & Speciality Chemicals by Rs. 156.64 lacs (Rs. Nil). The impairment is mainly on account of low economic performance, due to which the carrying amount of these assets is significantly higher then the current recoverable amount. Resultantly an amount of Rs. 156.64 lacs (Rs. Nil) has been recognized as impairment loss during the year.

(d) Disclosure under AS 18"Related Party Disclosures" issued by Institute of Chartered Accountants of India.

List of Parties:

(i) Associate Companies:

Blue Shell Investment Private Limited - Check Point Credits & Capital Private Limited - Crossover Advisors Private Limited - Crossover Trustees Private Limited - Deepak Asset Reconstruction - Deepak Cleantech Limited - Deepak Fertilisers and Petrochemicals Corporation Limited - Deepak International Limited - Deepak Medical Foundation - Deepak Novochem Technologies Limited - Forex Leafin Private Limited - Grey Point Investments Private Limited - Hardik Leafin Private Limited - Kawant Developers Corporation - Nucore Capital Management Private Limited - Pranawa Leafin Private Limited - Prolific Credits & Capital Private Limited - Skyrose Finvest Private Limited - Sofotel Infra Private Limited Stepup Credits & Capital Private Limited - Stiffen Credits and Capital Private Limited - Stigma Credit & Capital Private Limited - Storewell Credits & Capital Private Limited - Sundown Finvest Private Limited - Superpose Credits & Capital Private Limited - The Lakaki Works Private Limited - Yerowada Investment Limited.

(ii) Key Management Personnel:

(i) ShriC. K. Mehta

(ii) Shri D.C. Mehta

(iii) Shri A. C. Mehta

Defined Benefit Plan

The Employee's Gratuity Fund Scheme managed by a trust is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the projected unit credit method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up final obligation.

(ii) Leave Encashment

The accumulated balance of leave encashment (unfunded) provided, amounting to Rs. 3,56,21,930/- (Rs. 3,31,35,340/-) is determined on actuarial basis using projected unit credit method.

7. Additional information pursuant to the Provisions of Paragraph 3,4C&4D of Part II of Schedule VI to the Companies Act, 1956 (figures in bracket relate to previous year).

8. Previous year's figures are shown in bracket and regrouped / re-classified wherever necessary to conform to current year's groupings.

Mar 31, 2010

1. Estimated amount of contracts (net of advances) remaining to be executed on capital account not provided for: Rs. 92.81 lacs (Rs. 202.92 lacs).

2. Certain assets of Nitrite unit at Nandesari, Vadodara, were revalued on 31st October 1985 as per the valuation report submitted by M/s. P. C. Gandhi & Associates, Chartered Engineers and Government approved valuers, whereby original cost of Rs. 944.05 lacs as of that date was restated at replacement cost of Rs.1903.81 Lacs. The details of said assets as on Balance Sheet date net of subsequent deletions are as follows:

3. Security deposit of Rs. 400 lacs (Rs.400 lacs) placed with Shri D.C.Mehta towards lease of residential premises.

4. Other Current Assets include estimated realisable value of assets held for disposal of Rs. 60.99 lacs (Rs. 85.19 lacs), accrued benefits under Duty Entitlement Pass Book Scheme of Rs. 732.03 lacs (Rs. 573.41 lacs) and Target Plus Scheme Rs. 172.29 lacs (Rs. 213.31 lacs).

5. The Company takes forward contracts to hedge exposures arising out of net foreign currency payables and receivables. The unhedged exposure of foreign currency transactions is as follows:

6. 14, 90,586 Detachable Warrants allotted along with the Rights Issue on 5th May, 2006, were converted into equity shares of Rs. 10/ each at a premium of Rs. 90/- per share for cash during the year. The proceeds of the issue have been utilised for the purpose mentioned in the Letter of Offer.

7. Disclosures under Micro, Small and Medium Enterprise Development Act, 2006:

To the extent the company has received intimation from the "suppliers" regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006, the details are provided as under:

(c) Disclosure under AS 18 "Related Party Disclosures" issued by the Institute of Chartered Accountants of India.

List of Parties:

(i) Associate Companies:

Blue Shell Investment Private Limited - Check Point Credits & Capital Private Limited - Crossover Advisors Private Limited - Crossover Trustees Private Limited - Deepak Asset Reconstruction - Deepak Fertilisers and Petrochemicals Corporation Limited - Deepak International Limited - Deepak Medical Foundation - Deepak Novochem Technologies Limited - Forex Leafin Private Limited - Grey Point Investments Private Limited - Hardik Leafin Private Limited - Kawant Developers Corporation - Nucore Capital Management Private Limited - Pranawa Leafin Private Limited - Prolific Credits & Capital Private Limited - Skyrose Finvest Private Limited - Sofotel Software Services Private Limited - Stepup Credits & Capital Private Limited - Stiffen Credits and Capital Private Limited - Stigma Credit & Capital Private Limited - Storewell Credits & Capital Private Limited - Sundown Finvest Private Limited - Superpose Credits & Capital Private Limited - The Lakaki Works Private Limited - Yerowada Investment Limited.

(ii) Key Management Personnel:

(i) ShriC.K.Mehta (ii) ShriD.C. Mehta (iii) ShriA.C. Mehta

Defined Benefit Plan

The Employees Gratuity Fund Scheme managed by a trust is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the projected unit credit method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up final obligation.

8. Previous years figures are shown in bracket and regrouped / re-classified wherever necessary to conform to current years groupings.

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