Sadhana Nitro Chem Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2022

1)The Audited Standalone Financial Results were reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on 24th May 2022. These audited financial results have been prepared in accordance with the Indian Accounting Standards ("Ind-AS") as specified under Section 133 of the Companies Act, 2013 read with rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 (as amended from time to time) and the provisions of the Companies Act, 2013.



2) The results for the quarter & Year ended 31st March, 2022 are audited by the Statutory Auditor of the Company, under regulation 33 of Securities & exchange Board of India (Listing obligation and disclosure requirements) regulation, 2015, as amended. The unmodified report was issued by them thereon.



3)The company is primarily engaged in one business segment i.e. manufacturing of chemical intermediates, heavy organic chemicals and performance chemicals and it is primary segment. The company is also engaged in the manufacture of wireless network equipment & related Software development. However, since the revenue, profits & total assets of this segment is less that 10% of the combined revenue, profits & assets of all the reporting segments, disclosures as required by Ind-As 108, ‘Operating Segments’ are not given.



4)The Company has assessed the possible impact of CoVid19 on it's financial statements based on the internal & external information available up to the date of approval of these financial results and concluded that no adjustments are required in these results. The CoVid19 pandemic and subsequent lockdowns affected the results of the first half of the year reducing global demand for our products, however over the second half of the year the company’s customers and applications all saw visible revivals in demand and subsequent

increase in quantities.



5)On the other hand, due to the geo-political situation in Eurasia and CoVid19 situation in China, raw material and oil prices, along with freight saw an extraordinary increase in cost. As the company had pre-existing orders, prior to the sudden extraordinary increases in cost, the company saw reduced margins as it honoured the contracts it had taken. The company is now negotiating for future orders based on the increased costs.



6)The Company had issued and allotted 5,58,90,894 equity shares of Re. 1/- each to eligible shareholders of equity shares in the ratio of 2:5 on the record date (i.e. 21st July, 2021) as fully paid up bonus equity shares by capitalizing reserves



7)On receipt of application money @ 25% of issue price aggregating to Rs. 25,00,00,034/- the company issued and allotted 65,20,606 Share Warrants (on Preferential basis/Issue), convertible into 65,20,606 equity shares of face value of Rs. 1/- each, at Rs. 153.36 (including premium of Rs. 152.36) per share Warrant / Equity Share approximately aggregating to Rs.1,00,00,00,137/- pursuant to the approval of the board, shareholders and other applicable statutory provisions. On receipt of balance 75% of issue price aggregating to approximately 75,00,00,103/- within 12 months of date of allotment, each share warrant will be converted

into one equity share.



8)The earning per share figures for the quarter & year ended 31st March, 2022 have been restated to give effect to the allotment of the bonus shares and share warrants, as required by IND-AS 33, ‘Earning Per Share’.



9)Considered and recommended a dividend @ 15 % i.e. Rs.0.15/- per equity share of face value of Rs.1/- each for the financial year 2021-22 on expanded capital after two bonus issue in the ratio of 1:2 in FY 2020-21 and in the ratio of 2:5in the FY 2021-22 subject to approval of shareholders at the ensuing Annual General Meeting.



10)The figures for the quarter ended March 31, 2022 and March 31, 2021 are the balancing figures between the audited figures in respect of the full financial year and unaudited published figures for the nine-month period ended 31st December, 2021 & 31st December, 2020 respectively. Also, the figures for these nine-month period had only been reviewed and not subjected to audit.



11)Previous period figures have been regrouped /reclassified, wherever necessary to conform to current period classification.



12) The above is an extract of the detailed format of the financial results for the Quarter Ended 31st March 2022 The filed with Stock Exchange, under Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations,2015 (‘(Results’), The complete format of the results is available on www.bseindia.com and on the company’s website at www.sncl.com.