Deepak Fertilisers & Petrochemicals Corporation Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Dec 2021
Auditor and Management Disclosures and Notes for the quarterly results dated 31 Dec 2021
1. The above unaudited results of Deepak Fertilisers and Petrochemicals Corporation Limited (the "Company" or "Holding Company"), its subsidiaries (collectively referred to as "the Group"), and its joint operation were reviewed by the Audit Committee its meeting held on 27 January 2022 and the Board of Directors at its meeting held on 28 January 2022 approved and adopted the same. These results have been reviewed by Statutory auditors.
2. The standalone and consolidated financial results of the Company are prepared in accordance with applicable accounting standards i.e. Ind AS, as prescribed under section 133 of the Companies Act, 2013 read with relevant rules thereunder and in terms of Regulation 33 of the SEBI (Listing Obligation and Disclosure Requirements) Regulation, 2015 as amended. The Company has an investment of Rs. 5 lakhs in an associate. There are no operations in this company and therefore, being immaterial has not been consolidated.
3. Pursuant to the provisions of Section 132 and 133A of the Income-tax Act, 1961, a Search Operation was conducted by the Income Tax Department during the period from 15 November 2018 to 21 November 2018.
(a) The Company has received assessment and demand orders for all AYs (Assessment Year) 1314 to AY 19-20 by end of October 2021 against which the company has filed appeals and rectification applications as the case may be. The management based on advice of the independent tax experts and its own analysis are of the view that there will not be any significant impact on the standalone financial statements of the Company.
(b) Assessments of material subsidiary company, M/s Smartchem Technologies Limited for the block period {Assessment Year 2013-2014 to Assessment Year 2019-2020) are pending before the Assessing Officer as timeline to complete the same is in July 2022. Management is of the view that aforesaid matters will not have any significant impact on the Group's financial position and performance and hence no further provision has been recognised as of 31 December 2021."
4. International Finance Corporation (IFC), holderof Foreign Currency Convertible Bonds (FCCB), had sent a notice on 23rd June 2021, for conversion of first tranche of USD 15 million FCCB into 54,76,831 Equity Shares of the Company, at the rate of Rs. 195 Per equity share, in accordance with section 4.01 (conversion option) of the FCCB Subscription agreement dated 10th May 2019 as amended on 19th June 2019 and on 15th September 2019. The Company has converted the said FCCB and issued 54,76,831 fully paid-up Equity Shares on 1st July 2021, which are rank pari-passu in all respects with the existing equity shares of the Company and are listed on BSE and NSE.
5. The Company has i ssued 1,24,39,029 equity shares of face value ofRs. 10/-each through Qualified institutions Placements (QIP) on 22 October 2021, at an issue price of Rs. 410 per equity share (including premium of Rs. 400 per equity share).
6. The Code on Social Security, 2020 ('Code') relating to employee benefits during employment and post- employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified. The Group will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.
7. Previous period's figures have been reclassified/ regrouped wherever necessary.