Annual Report 2021-22

Credible Performance.
Consistent Progress.
IOL Chemicals And Pharmaceuticals Limited

Annual Report 2021-22
Index Credible Performance.
Corporate Overview Consistent Progress.
03-07
01-02
Introduction IOL at a Glance

Theme Introduction 01 Introduction to IOL 03
Highlights of the Year 02 Business Segments 06
Chairman’s Message 08
08-13
14-17
FY 2021-22 Message from Strategy and Risk
in Review the Managing Director 10 Management
Key Performance Strategy 14
Indicators 12 Risk Management 16
22-28
18-21
Environment 22
R&D and Innovation Approach to R&D 18 ESG Social 24
Innovations and Product
20
Governance and 26
Diversification Leadership
Our Company is a leading API-based pharmaceutical company

with a remarkable presence in the Specialty Chemicals market.
Perceived essentially as an Ibuprofen company, we have been
Statutory Reports Financial Statements working towards diversifying our product portfolio.
Management Discussion Despite the pandemic, we have showcased credible performance

and Analysis 30 by generating the highest revenue this year, compared to the last
Directors' Report 38 five years. Regulatory approvals from USFDA, EDQM, Korean
76-169
30-75
Corporate FDA, and Russian regulatory authorities, have helped us in

Governance Report 57
Standalone 76 market penetration in the export market.
Business
Responsibility Report 70 Consolidated 128
We believe investing in people is significant to building a capable
workforce aligned with our vision and mission. We are committed
Notice 170
to implementing policies and devising solutions to improve our
environmental performance, and empower our communities.
Our focus has been on progressing consistently through product

diversification, developing our manufacturing capabilities, and
investing in R&D, showing a credible performance.
Credible Performance. Consistent Progress. Annual Report 2021-22 01

IOL Chemicals and Pharmaceuticals Limited Corporate Overview Statutory Reports Financial Statements
INTRODUCTION >> Highlights of the Year IOL AT A GLANCE >> Introduction to IOL
Scaling up for growth Accelerating Growth

for a Brighter Future
We are a technology-driven, Active Pharmaceutical Ingredients (API), Intermediates, and
Specialty Chemicals company, with a strong track record of growth and development for
over 35 years. We're building a pipeline of new products to strategically extend our product
I2,216 cr 80
NO. OF COUNTRIES
range and provide a solid platform for future development.
We are powered by significant manufacturing capabilities that Across our entire value chain, we strive for the highest levels of
REVENUE allow us to benefit from economies of scale and lower costs. We
also have a lot of experience with Specialty Chemicals, which
excellence. Our unwavering commitment to maintaining the
highest levels of excellence in operations, innovation, quality,
WE SERVE gives substantial flexibility in terms of expansion and enhances
our business strategy.
sustainability and committed customer service, has allowed
us to become a global leader in our chosen fields. We are a
responsible manufacturer of API, using bio fuel boilers for
Pain management, anti-diabetic, anti-hypertensive, and anti-
producing the energy/steam.
convulsant are just a few of the therapeutic areas covered by
our APIs. We are a fully backward integrated business, that
I288
EBITDA
cr
2,300+
manufactures all intermediates and key starting materials (KSMs)
for Ibuprofen.
Our Purpose
WORKFORCE
I166 cr
PROFIT AFTER TAX (PAT) OPERATING FOR People Principle
35 YEARS
Our customers, employees, To do business in a legal,
suppliers, partners, investors, ethical, and fair manner
communities, and families
Purpose
I153 cr To Improve
the Quality of Life
CAPITAL EXPENDITURE
CARE A+
RATED COMPANY
Profit
To generate sustainable profits
Planet
To take care of the planet by
without compromising on any reducing emissions, effluents,
other factor power, and following green
chemistry
02 Credible Performance. Consistent Progress. Annual Report 2021-22 03

IOL AT A GLANCE >> Introduction to IOL
Our Vision Our Mission Our Values Our Promise

To be amongst the most admired To provide top quality products in We at IOL, believe values bring We are a trusted partner for delivering
companies in APIs, Intermediaries, APIs, Intermediates and Specialty character to any organization that high quality products. Our fundamental
and Specialty Chemicals globally. Chemicals through continuous help leaders to guide teams for value system ensures that we stand
innovation and cutting-edge a culture of excellence through by our commitments. We have strict
technology, with due regards to continuous improvements. manufacturing protocols to comply with
safety and environment. and we produce our products to the highest
quality standards. We emphasize on
maintaining after-sales service by ensuring
meaningful support and assistance to our
customers, globally.
Our Journey
1986-91
Incorporated and established
Acetic Acid plant
2018
2022
Installed Unit 04 dedicated
1996 2010 2012 2019
●
for Metformin
Commencement of Ethyl ● Listing on NSE Commencement of Unit 02 ● Commenced Unit 05 for Started Unit 06 for dedicated Began commercial
Acetate Plant for different products Clopidogrel and Fenofibrate production of Pantoprazole
● Co-generation plant 13 MW production of Paracetamol
1999 2009 2013 2017 2020

Commencement of Acetic Commencement of IBB, MCA Received EUGMP Converted Unit 02 to a Commenced Unit 07 for
Anhydride Plant and Acetyl Chloride plants Certification dedicated Ibuprofen facility dedicated Metformin production
2000 2007 2015 2016 2021

Commencement of Installed Unit-01 dedicated to Ibuprofen Obtained USFDA and EIR Installed Unit 03 for new product Started Units 08 and 10 for
Ibuprofen Unit 01 Installed 4MW Co-Generation Plant approval for Ibuprofen launches multiple products
04
IOL AT A GLANCE >> Business Segments
Active Pharmaceutical Ingredients (APIs) Specialty Chemicals

We study, develop, and offer numerous critical Ethyl Acetate is a product of our Speciality Chemicals business that is made from organic alcohol and used in a variety of sectors,
components that are utilized by pharmaceutical including flexible packaging, medicines, ink, food processing, crop protection chemicals, and the paint industry. We are exporting
businesses all over the globe to create crucial Ethyl Acetate to more than 40 countries globally.
medications that are vital to humanity's survival under
Other Specialty Chemicals that we manufacture are Mono Chloro-Acetic Acid, Acetyl Chloride, and Iso Butyl Benzene.
our API vertical. We are concentrating on generic API
product development via our innovative and research-
driven strategy. Furthermore, our staff works seamlessly
to guarantee that our goods are commercialized at a Industries Where Our Chemicals are Used
competitive cost. Numerous APIs have already been
commercialized, and several others are in the final
stages of development. Textiles
Food Processing Flexible Packaging Pharmaceuticals
We have been constantly adding value to our flagship
product – Ibuprofen, and have been manufacturing
several derivatives for a fully backward integration at Ink Paints Pesticides Chemical Intermediates
one place.
The API sector is growing at a rapid pace. In order ~35% Leading
to continue our growth trajectory, we have made
considerable investments in the research and
GLOBAL SHARE AND
Producer of Chemicals
development of new APIs in several therapeutic
categories, which we have launched in the market. We
Largest Producer METFORMIN, CLOPIDOGREL,
FENOFIBRATE
have successfully launched six molecules in the market of Ibuprofen and Mono Chloro-
in a short period of time, starting with pilot phase Ethyl Acetate Iso Butyl Benzene Acetyl Chloride
its Derivatives Acetic Acid
8 Therapeutic
development and scaling up in large quantities to
commercial manufacturing. All of the recently released
Areas
and marketed medicines are generic APIs with high
growth potential in the pharmaceutical industry.
SERVED BY OUR PORTFOLIO
Areas of Treatment API Products

of Our Products
Ibuprofen Portfolio Other APIs
2nd Largest
ISO-BUTYL BENZENE
Anti – Inflammatory MANUFACTURER IN THE
Ibuprofen Metformin Clopidogrel WORLD WITH
Analgesic & Antipyretic Hydrochloride Bisulphate
Anti – Diabetic
Ibuprofen Lysinate Pantoprazole Ursodeoxycholic
30%
GLOBAL SHARE
Sodium acid (UDCA)
Anti – Platelet Ibuprofen Sodium
Losartan Potassium Gabapentin Largest
Anti – Cholesterol SINGLE LOCATION PLANT IN
Dex-Ibuprofen INDIA WITH
Levetiracetam Lamotrigine
Anti – Convulsant
Anti – Cholelithic
Fenofibrate 1,00,000 Tonnes/Annum
PRODUCTION CAPACITY
OF ETHYL ACETATE
Proton Pump Inhibitor

FY 2021-22 IN REVIEW >> Chairman’s Message
Expanding Our Horizon
Dear Stakeholders,
I am pleased to present our annual report for FY 2021-22, at a J2,216 cr Taking advantage of the opportunities presented before us,
we have increased our Specialty Chemicals and other APIs
manufacturing capability by establishing new manufacturing
time when the worst of the pandemic is behind us. As a society, RECORDED HIGHEST REVENUE units. In the past two years, we have added 4 new units to our
we showed remarkable fortitude with the pharmaceutical
industry playing a key role in overcoming the challenges. IN FY 2021-22 manufacturing facility located in Barnala, Punjab, totalling our
The last two years have taught us to sharpen our vision and functioning manufacturing units to 10.
work towards becoming a responsible business and creating
consistent value for our stakeholders. in environmental regulation, and geopolitical tensions have Commitment to Sustainability
significantly increased the risk of operating in China for global
FY 2021-22 was indeed a challenging year. The uncertainties We value our workforce and recognize their role in paving the
companies. As a result, global companies have started to
attached to the pandemic, supply-chain disruptions, and way for our Company to be recognized as a leader in our sector.
decrease their dependency on a single entity and diversify
the aggravating impacts of the Russia-Ukraine conflict have Creating a safe, inclusive, and diverse workplace is fundamental
their sources. India offers strong alternatives to China with
created uncertainty in the business, environment. Despite these to motivate our employees to give their best. Empowering the
comparable scale, technology, raw materials, and a favourable
challenges, at IOL, we managed to consolidate our business communities, we work with is integral to our Company’s purpose
policy environment. As a result, the Indian pharmaceutical and
and our focus remains on providing quality products through and values. We extend support to the underprivileged sections
chemical industries are well-positioned to be on a high
continuous innovation, and facilitating value creation for our of society through CSR activities focused on ensuring quality
growth trajectory.
stakeholders. health, access to education, and social upliftment. We have
impacted +1,00,000 beneficiaries in FY 2021-22.
FY 2021-22 in Perspective
Industry Overview We are also upgrading our sustainability strategies by
Despite the strong headwinds, our financial performance for
The Indian pharmaceutical space remains an essential market setting up future targets and goals and aligning with global
FY 2021-22 was mixed, however there were telling signs of future
for the world, and is expected to be an important part of India’s frameworks including GRI, CDP, and Business Responsibility and
growth. We recorded the highest revenue of ₹2,216 crores,
growth story, going forward. Sustainability Report (BRSR) in the coming fiscal year.
with revenue growth of 11% this year. We have raised no debts
According to the Economic Survey of India 2022, the industry is since 2017, which gives us the room to add new products to
expected to become thrice its present size by 2030. The growth the pipeline and increase our capacity consistently. Our efforts Moving Forward
is driven by India’s comparative advantage in cost, regulatory towards diversifying our product portfolio by adding new We are looking forward to continuing our growth journey by
compliance of Indian firms, and a business-friendly policy products to both our API and Specialty Chemicals portfolio strengthening our capabilities and working towards our targets.
landscape. A promising piece of evidence for this anticipated have been successful with a shift of revenue generated from The pandemic and disturbing global political scenario did test
growth is the rise in FDI inflows in recent years as the cumulative Ibuprofen to both, Specialty Chemicals and other APIs. Our our limits, but we have withstood the challenges and performed
FDI equity flows have increased by $3.6 billion over the last Company has a good return on equity (ROE) track record and for remarkably. We are positive about achieving better revenue
five years. Regarding exports, India is the largest provider of the last three years, we have recorded an average ROE of 31%. and EBITDA growth, while operating responsibly in partnership
generic drugs globally. For example, the Indian pharmaceutical We were able to consolidate our financial performance despite with all our stakeholders. We promise to stay true to our purpose
sector supplies 50% of the vaccine demand, 40% of the generic disruptions in supply chains, price volatility, and inflation. I am of creating value for our stakeholders through proactive
demand, and 25% of the medicine to the UK. pleased to announce that we continue to remain debt-free, and leadership, a robust governance framework, and credible
our key ratios put us in a favourable position for the future. performance,
The Indian pharmaceutical space India’s chemical industry is extremely diverse, covering more
I would like to extend my heartfelt gratitude to all my
remains an essential market for than 80,000 commercial products, making it an attractive hub
Taking Advantage of Opportunities stakeholders for their unconditional trust and support.
for global chemical companies. Within the Indian chemical
the world, and is expected to be an industry, Specialty Chemicals constitute 22% of the total At IOL, we consider research and development as the foundation
important part of India’s growth chemical market. The Indian Specialty market is expected to of our consistent growth. We have been investing in R&D
story, going forward. A common grow and surpass its Chinese counterparts by doubling its share and product innovation to increase our in-house capacity for Warm regards,
product development. We have also increased our market
megatrend in both, the Indian of the global market to 6% by 2026. This growth is expected to
penetration and added value to our export arena by filling
be driven by strong tailwinds in exports, and demand recovery Rajender Mohan Malla
pharmaceutical and chemical in the domestic market. four DMFs with USFDA, and three CEP applications with EQDM. Chairman
industries, is the shifting of supply We were able to get approvals from the Korean FDA for two
A common megatrend in both, the Indian pharmaceutical
chains of raw materials from China and chemical industries, is the shifting of supply chains of raw
products, and Russian regulatory authorities for six products. I
am proud to convey that the Company has also filed for three
to India as part of the China+1 materials from China to India as part of the China+1 strategy patent applications in FY 2021- 22.
strategy of global companies. of global companies. Recurrent COVID-19 lockdowns, increase

FY 2021-22 IN REVIEW>> Message from the Managing Director
Moving Forward
with Optimism
Dear Stakeholders, During the year, we faced cost challenges from several fronts.
As I write to you, the world economy is going through The continuation of outbreaks disrupted already fragile supply
unprecedented challenges. Continued COVID-19 outbreaks, chains, which increased the price levels of several commodities, Our non-ibuprofen APIs delivered
notable deacceleration in major economies – including the freight fees, and transportation costs. The onset of the Ukraine- strong growth and contributed to
Russia conflict created uncertainty in global markets and led to
United States and China, and rising inflation levels across
a notable increase in energy prices. As a result, our operating
16% of our revenues compared to
the world, presented a tough operating environment for our
Company. As a result, we witnessed a temporary impact on our margins were more than halved and our EBITDA stood at ₹288 10% in the previous year.
profitability growth this year. However, despite these new and crores in FY 2021-22 as compared to ₹616 crores in FY 2020-21.
unique challenges, our values and culture of excellence helped We faced profitability challenges in both of our segments. Our
us navigate this crisis. During the year, we strengthened and At IOL, we remain committed to creating value for the
EBITDA margin in our pharmaceutical segment came closer
consolidated our business and are primed to take advantage of communities near where we operate and contributing to the
to the industry average and stood at 16% in FY 2021-22 as
the recovery in our operating environment. collective well-being of society. I am pleased to announce that
compared to 39% in FY 2020-21. The reason for this slowdown
we have continued to direct our efforts towards healthcare,
was the low demand off-take of ibuprofen and rising input costs.
education, and social upliftment as part of our CSR initiatives.
Financial Performance However, as mentioned earlier, we expect this to be temporary
These initiatives contribute actively to our stakeholder value
Our business model of utilizing our high-quality front-end team as ibuprofen demand increases and our non-ibuprofen products
creation strategy by forging strong relationships with
with strong regulatory and manufacturing capabilities helped grow.
local communities.
us strengthen our existing customer base and attract new We faced a cost crunch because of increased prices of acetic
customers. As a result, we achieved a revenue of ₹2,216 crores acid, which is the primary raw material for ethyl acetate. As a
this year growing at an annual rate of 11%. Our revenue levels are
Looking Ahead
result, our chemical segment recorded an EBITDA margin of
at an all-time high and we are confident that we will reach higher Despite a challenging environment, we are confident that our
5% in FY 2021-22 as compared to 13% in FY 2020-21. We expect
heights in the coming years. strong business fundamentals will help us deliver a strong
inflationary pressures on acetic acid to cool down and diversify
performance in our revenues and EBITDA next year. We expect
An unexpected change during the pandemic was the our chemical product portfolio to a more profitable product
a more favorable business environment for FY 2022-23 and are
overstocking of ibuprofen by consumers last year. As a result, mix, going forward. This makes our chemical segment well-
confident that our business will continue to grow and deliver
demand off-take for ibuprofen slowed down. Being the largest positioned to growth.
superior value to all stakeholders. Our business strategy of using
producer of ibuprofen in the world, this impacted revenue both our pharmaceutical and chemical segments as growth
growth in our pharmaceutical segment. However, we expect this Towards a Better World engines, our planned capital expenditure, and our strong
change to be temporary and our ibuprofen sales to improve. The world is increasingly moving towards a paradigm of product pipeline make us well-positioned to take advantage of
I am proud to announce that we have successfully diversified our sustainable growth. At IOL, we are aware of the impact our upcoming opportunities and be on a high growth trajectory. At
pharmaceutical product portfolio this year. Our non-ibuprofen business operations have on the environment and local the same time, we remain committed to creating values for the
APIs delivered strong growth and contributed to 16% of our communities. As a result, we are committed to integrating environment and community to help us achieve our Company
sustainability into our business operations and creating long- mission.
Our business model of utilizing our revenues compared to 10% in the previous year. During this year,
term value. In line with this, we are actively working towards
we filed several DMFs, and CEP applications with the USFDA and
high-quality front-end team with EDQM respectively, among other regulatory achievements. As creating a sustainability strategy that helps us create a positive
I would like to take this opportunity to express my immense
gratitude to our employees for their continued dedication
strong regulatory and manufacturing a result, we expect our pharmaceutical segment to increase its environmental impact. We plan on accelerating and integrating
and for helping us deliver consistently. I am also grateful to all
capabilities helped us strengthen our market penetration in foreign markets and bring new customers stakeholder engagement into our business operations to decide
our stakeholders for their continued trust and support in our
on key focus areas. Relying on CDP and SBTi projects, we plan
existing customer base and attract to our business.
on setting ESG targets and coming up with comprehensive
business. Together, we will achieve IOL’s vision of becoming an
new customers. As a result, we In our chemical segment, we managed to grow and consolidate strategies to achieve them. As a reflection of our commitment,
industry leader in our industry.
achieved a revenue of D 2,216 crores our chemical segment which contributed to 54% of our revenues we plan on setting scope 1 and scope 2 targets that will guide
this year. This was led by strong demand for our ethyl acetate
this year growing at an annual rate product, which constitutes most of our chemical segment.
our Company’s long-term vision.
Warm regards,
of 11%. Our revenue levels are at an During the year, we identified several non-ethyl acetate
all-time high and we are confident products, where we plan to leverage our commercial footprint Varinder Gupta
that we will reach higher heights in and add to our product portfolio to our existing clients. Our Managing director
prudence and appetite for growth make
the coming years. us confident in making our chemical segment accelerate
its revenue growth.

FY 2021-22 IN REVIEW >> Key Performance Indicators
Focused Growth
This year, we achieved our highest revenue in 5 years despite having a rough year with
issues, such as the consecutive pandemic waves, rising raw material prices, and geo-
political tensions. We have also continued to diversify and invest in capacity building to
diversify our portfolio, allowing us to achieve sustainable margins and profitability.
Financial Operational
2021-22 2,216 2021-22 16
22%
2020-21 1,991 2020-21 12
2019-20 1,910 2019-20 7
5 year CAGR
Revenue 2018-19 1,696 Investment in R&D 2018-19 7
(₹ in cr) (₹ in cr)
2017-18 990 2017-18 5
2021-22 546 2021-22 153
11.7%
2020-21 612 2020-21 112
2019-20 645 2019-20 82
Exports 5 year CAGR Capital Expenditure
2018-19 647 2018-19 59
(₹ in cr) (₹ in cr)
2017-18 350 2017-18 48
2021-22 288 2021-22 10
23%
2020-21 616 2020-21 8
2019-20 590 2019-20 7
EBITDA 5 year CAGR API Manufacturing Units
2018-19 420 2018-19 6
(₹ in cr) (nos.)
2017-18 126 2017-18 5
2021-22 166 2021-22 2,300+
56%
2020-21 445 2020-21 2,115
2019-20 361 2019-20 1,775
5 year CAGR
Profit After Tax (PAT) 2018-19 237 No of employees 2018-19 1,683
(₹ in cr) (nos.)
2017-18 28 2017-18 1,364
2021-22 28
54%
2020-21 76
2019-20 63
5 year CAGR
Earnings per Share 2018-19 42
(₹ in cr)
2017-18 5

STRATEGY & RISK MANAGEMENT >> Strategy
Strengthening Our Capabilities

We are striving towards consistently growing, while creating long-term value for our
stakeholders. We have had a transformative journey this year, overcoming challenges related
to the pandemic, disruptive global political scenario, leading to rising raw material costs and
supply chain constraints. Regardless of the many barriers, we are committed to showcasing a
credible performance and progress ahead, on all fronts.
Our Strategic Priorities Focus on:

Objectives Focus Area Progress So Far KPIs Way Ahead
Growing the We continue to grow each ● We have recorded the highest ever revenue ● Revenue growth We plan on investing
segment of our Company of ₹2,216 crores in FY 2021-22 In-house development of multi- in capex for both,
Pharma and
●
diligently through continuous ● Aligned with our strategy to grow, in the step products chemical and pharma
Chemical business capex investments to add to past two years, we have added 4 new units ● Product application across segments this year
our capacity and upgrade our to our manufacturing facility diversified industries and
systems. therapeutic categories
● R&D Spend
Expanding our Diversification of our API ● To this end, we have progressed by ● New products added to the Aim for non Ibuprofen
portfolio is of paramount increasing our manufacturing capacities of API product portfolio business to contribute
Non-Ibuprofen importance to us for the purpose other APIs, such as Metformin, Clopidogrel ● R&D spend 50% to total pharma
portfolio of growing further and to de-risk and Fenofibrate
● Revenue generated from the business
ourselves from relying heavily ● We have also managed to generate non-ibuprofen portfolio
on the Ibuprofen side of our higher revenue from Non- Ibuprofen APIs,
business. raising its share to 35% from 17.6% within
pharmaceutical revenues
Focus on We have been focusing on ● We have filled for four DMFs with USFDA, ● Venturing into new markets We plan to enhance our
increasing our international and three CEP applications with EQDM ● R&D spend product development
regulated markets market presence by filing for ● Received approvals from the Korean FDA ● DMFs and patents plans and accelerate our
multiple DMFs and getting for two products and Russian regulatory DMF filing to cover 5-6
approvals from international authorities for six products products per year
regulatory authorities. ● We have filed three process patent
applications in FY 2021-22
EHS We are committed towards ● We have achieved 100% ● Water consumed, disposed, We remain committed
making sure of our operations Zero Liquid Discharge and recycled towards a sustainable and
have minimal impact on the ● Certified for ISO 9001, ISO 14001, ● Safety and well-being of green future
environment, people and the and ISO 45001 our employees
communities we work with. ● We have contributed ₹10 crores towards ● People benefitted
CSR initiatives

STRATEGY & RISK MANAGEMENT >> Risk Management
Adapting to Uncertainities Risk Mitigation Method
Since our working environment is complex, highly regulated, and dynamic, risks are Technological Risk The Company employs cutting-edge technology in manufacturing,
Technological advancement could result in processing, and quality control methods, and it stays abreast of
inherent in our operation. Identifying, assessing, and effectively reacting to these technological advances and adopts them to remain productive and
asset obsolescence warranting a high cost of
business risks is critical to achieving our strategic growth goals, preserving the interests replacement. cost-effective. Furthermore, the Company has a DSIR-recognized
of our stakeholders, and satisfying regulatory obligations. Research & Development cell that is extremely active in creating and
verifying innovative procedures for current products as well as new
product development.
Risk management actions take place at all levels in the organization. We strive to include strong risk management practices into We are in the process of deploying SAP HANA ERP to strengthen our
our strategy, planning, budgeting, and performance management processes. Senior executives are liable for risk-effective risk business processes based on global best practices. We opted for Cloud
management within their areas of responsibility as well as developing a risk-aware culture across the organization. landscape for the same with high availability and disaster recovery site
We hired a world-class external agency to identify and develop our risk management framework. Senior officials of the Company for maximum uptime for our critical processes.
are responsible for preparing reports on different risks involved and their mitigation plans and reporting to the Risk Management We are, in the process of deploying LIMS integration in our QC LAB for
Committee and the Board. all raw materials, in-process, intermediates, and finished goods materials
testing.
CRM implementation is also in the process of tracking our new
Risk Mitigation Method customers' development status.
Moreover, we are integrating LIMS and CRM with SAP HANA.
Regulatory Risk Internal and external inspections and audits are conducted on a regular
We operate in a highly regulated pharmaceutical basis to guarantee compliance with Indian and international regulatory
agencies' requirements.
industry. Any lapse to comply regulations may Environmental, Health To guarantee compliance with environmental requirements, the
adversely impact our operations. and Safety Risk Company undertakes frequent internal inspections and audits. Legal
register is available and all applicable EHS compliances are reviewed at
Non-compliance with environmental regulatory regular intervals.
issue might affect operations.
Operational Risks The Company handles it by getting into regular agreements with its The Company has secured all necessary environmental permits and
Increase in raw material prices could impact our suppliers to assure continual raw material supply and effective resource consents. Furthermore, the Company has acquired ISO 14001:2015 EMS
performance. use. Standard certification.
Furthermore, the Company has in-house backward integrated We have an integrated Management System and EHS is given top priority
production capabilities to assure uninterrupted supply of main raw in all aspects of our business. The organization prioritizes employee
materials utilized in bulk pharmaceuticals. health and safety. We are committed to managing it via occupational
As part of the risk mitigation exercise, we also have a robust alternate health and safety management systems, fully equipped Occupational
sourcing program. Health Centre led by a qualified Factory Medical Officer and qualified
nurses. Furthermore, the Company has ISO 45001:2018 OHS Standard
This could be mitigated in two ways: by increasing purchasing efficiency certification.
(via multiple sources, long-term contracts, and strategic sourcing
methodology for key spends) or by backward integration for the KSMs,
in which we are very good at Ibuprofen as our main product, and are
working on others, such as Metformin and Gabapentin, where we have Competition Risk We manage the risk of competition by constantly increasing the quality
We are exposed to competition from and capacity of our goods and sustaining long-term relationships with
our own route of synthesis other than the conventional.
indigenous as well as foreign players. our clients by delivering better services to them. In order to provide
high-quality goods to our consumers, our quality control department has
adopted a variety of quality assurance measures.
Debt Risk As of now, the Company has no outstanding balance on any Term Loan.
Possibility of default to meet its obligations Furthermore, cash flow estimates are created on a regular basis to assess
because of unavailability of funds to meet debt the availability of its financing, and necessary action is taken.
Foreign Exchange Risk We analyze our exposure to foreign exchange risk on a regular basis and
and operational requirements. hedge where necessary, although our foreign currency risk is naturally
We are exposed to foreign exchange risk with
respect to foreign currencies, denominated hedged since we import and export items.
mainly in US dollars, on revenue and supplies.
Geographic Risk Customers are served by the Company in the majority of Indian states. To
Significant concentration in a particular market reduce geographical risk, the Company has also increased its customer
could be a risk in the event of downturn in that base to over 80 nations.
Human Capital Risk We have a committed team of professionals that not only look after
region. Furthermore, the Company serves to several industrial customers of the human capital recruiting and training, but also offer them a better
Acquisition and retention of right talent is critical
same product. to maintain desired operational standards. working environment and growth chances for self-improvement.

R&D AND INNOVATION >> Approach to R&D
Relentless Pursuit Generic API Research

The principal therapeutic areas of research include (anti- Liquid Chromatography with PDA, RI, and UV detectors,
of Excellence in R&D
diabetic), cardiovascular (anti-hypertensive), anticoagulants, Gas Chromatography with Head space analysers, Malvern
and nonsteroidal anti-inflammatory drugs (NSAIDs) and 3000 and 2000 particle size analyser, Infrared Spectroscopy,
antipyretic drugs. Ultraviolet Spectroscopy, and Digital Polarimetry. Our R&D
department partners with local universities and testing labs
We are a top API partner for global pharmaceutical firms.
Through our continuous research and development projects, we continue to push We're well-known domestically and internationally. Our
for unusual analytical needs.
the envelope in terms of generating innovation. We focus on cutting-edge ideas that R&D is located in Punjab, India. We specialize in Grignard Our R&D is integrated with a cGMP Pilot Plant for scale-up
will advance product and manufacturing science. We concentrate our emphasis on reactions, cyanation and halogenation reactions. testing. The PP is equipped with 0.5 KL to 1.0 KL SS and
Glass lined reactors, a powder processing area with HVAC,
collaborating with customers to develop “market pull” for products of interest to We have expertise to handle high temperature, high pressure
a microniser, and other equipment, including an oil heating
our clients. reactions (up to 220oC and 35 kg/cm2), Hydrogenation
system.
reactions (up to 20 kg/cm2), Sodium metal reactions,
Propylene, Chlorine and HCl gas-based reactions. Furthermore, the Company has deliberately invested in
cutting-edge technologies, such as continuous flow reactors
In R&D, we focus on 100% backward integration,
(CFR), enzymology, and so on, in order to become future-
indigenously accessible raw materials, in-house manufacture
ready and to eliminate significant carbon footprints on the
of Key Starting Materials and intermediates, and continual
environment.
improvement in quality, cost, and minimizing effluent
generation.
Our API R&D function is supported by 70 skilled and
Intermediates Research
devoted researchers with highly specialized qualifications Our policy of 100% Atmanirbhayta for Key Starting Materials
in Chemistry/Technology such PDF, Ph.D. in Chemistry and (KSMs) for all Active Pharmaceutical Ingredients (APIs)
Pharmaceutical Technology, Master's in Science, and Master's made by us is supported by our R&D division. KSMs, such
in Pharmacy. as Isobutylbenzene (IBB) for Ibuprofen, CHBP in Finofibrate
are made in-house. The Company plans to manufacture
Our R&D team works 24/7. It has a full-fledged process
O-tolylbenzonitrile (OTBN) for the Sartan line of medicines,
development laboratory with advanced analytical
and SABA HCl for Leviteracitam, utilizing processes
instruments like LC-MS, Multi gradient High Performance
developed in-house by our R&D team.
Our R&D activities are focused on creating goods that

will meet the demands of the pharmaceutical sector
in terms of ensuring a continuous supply of high-
quality products. While doing so, we take care to build
environmentally friendly processes that enable us to
provide our clients with a long-term supply of APIs.
3 J16 cr
PATENTS FILED INVESTMENT
DURING THE YEAR IN R&D
4 70+
DMFS FILED EMPLOYEES IN R&D

R&D AND INNOVATION >> Innovations and Product Diversification
Innovation - “IOL Way of Life” FY 2021-22 Highlights
We have Completed Tech

Transfer for 6 Products
PARACETAMOL, LOSARTAN, ALLOPURINOL,
QUETIAPINE, APIXABAN, BCFI
Process has been Developed

for 4 Products
IRBESARTAN, VALSARTAN, VILDAGLIPTIN, SITAGLIPTIN
CEP and US DMF Filed

for 6 Products
LEVETIRACETAM; PANTOPRAZOLE PARACETAMOL;
GABAPENTIN, LAMOTRIGINE; FENOFIBRATE
Continuous Improvements in
METFORMIN AND PANTOPRAZOLE
4 Patents filed with

Novel Processes
IP AND PCT
Innovation is a way of life at IOL. Our dedicated R&D team continues

to develop products and the best-in-class processes, following
Addition and
the most stringent environmental norms. Our innovation focuses Upgradation of Labs
on products that are cost-effective, leveraging novel technical NEW 21 CFR ANALYTICAL VALIDATION LAB
advancements. AND KILO LAB FACILITY ADDED
UPGRADED CRD & ARD LABS
In addition to developing new products, we have dedicated teams that strive to continue
improving existing manufacturing processes. To this effect, the Company has filed three
process patent applications in FY 2021-22.
Our product diversification strategy is focused on combining the technical capabilities of our
Company in both R&D and operations. We plan to diversify our product portfolio in chemicals
in the coming year. In the pharma division, we have already expanded our product portfolio
and added new products that aid our Non-Ibuprofen portfolio growth. We plan to consistently
diversify our API portfolio by filing 4-5 DMFs each year.

ESG >> Environment
Reducing Our Environmental

Footprint Waste Management
● In the pharmaceutical and chemical sectors, waste is a
We constantly make sure that there is no adverse impact on environment due to our topic of utmost concern as the hazards caused by them can
be disastrous. Reduce, reuse, and recycle are the guiding
manufacturing operations. Our team is continuously striving to reduce our environmental principles for us. This drives us to adopt waste reduction
footprints. We do so by upgrading our technology, complying with regulations and creating and management measures for both hazardous and non-
awareness in our workforce. Our key facility is ISO 14001:2015 ESM Standard certified. hazardous waste. Some of the actions which we take towards
this end are:
Climate Change and Energy Management ● Use of devices such as ATFE (Agitator Thin Film Evaporator)
for reducing hazardous waste and anaerobic hybrid reactors
Climate change is becoming a commercial issue all around the to cut down on sludge formation in the plant
globe. Climate change's long-term influence on organizations
● We are using ATFE (Agitator Thin Film Evaporator) instead
and operations has been more acknowledged. Upto very
of HVD (High Vacuum Distillation) to reduce the quantity of
recently, the pharmaceutical sector’s emissions surpassed that
solid hazardous waste generated
of the automotive sector. To tackle the seriousness of climate
change at our operations, some of the initiatives that we have ● Anaerobic Hybrid Reactor installed to reduce
taken at our plants are: sludge formation
● Continuous improvement in yields of products
● Use of green fuel (rice husk) in co-generation plant boiler ● We have set up a state-of-the-art R&D centre with scientists
leading to reduction in CO2 emissions significantly to explore modern trends in the industry by attending
● Monitoring of air emissions, such as VOCs and SPM from all national & international conferences and adopting the best
our equipment using devices like online SPM analyzers environment-friendly practices
● Installation and use of pollution control devices, such as
Electrostatic Precipitator, scrubbers, water sprinklers and
mechanical dust collectors to reduce our emissions
● Use of Variable Frequency Drives to save energy
● Replacement of conventional lighting with LED Lighting
● Use of energy efficient pumps/motors in cooling, chilling and
brine applications
Biodiversity Conservation
24233.74 MTCO2e ● Improving and maintaining standard power factor We are committed to preventing any adverse
impact on biodiversity inside and outside
SCOPE 1 EMISSIONS ● Reduction in power losses due to heating by
of our premises. Preservation, conservation,
regular thermography
and recovery of biological diversity is
163.2 ● Process automation to optimize power consumption and
other losses
getting ensured through robust, efficient,
and environmentally sound management
SCOPE 2 EMISSIONS ● We have also invested strategically in cutting-edge system. As per our geographical location,
technologies, such as Continuous Flow Reactors (CFR), there are no endangered species and eco-
Enzymology, etc. to become future-ready and expected to sensitive zone in our vicinity.
Water Usage reduce substantial carbon footprints on the environment
A green belt has been developed in the area
Our whole operations, both pharmaceutical and chemical of our operations, in line with regulatory
rely heavily on water of different qualities. We are aware of commitments. 38 acres have been
the dangers associated with water stress and its potentially
disastrous consequences. We are devoted to reducing our
9% Reduction developed as a green belt on our land of
112 acres. Plants such as Eucalyptus, Neem,
water use in the following ways: IN WATER Indian Beech, Arjun tree, etc. have been
CONSUMPTION OVER planted along that area. Another 5,000 trees
Our water consumption has reduced by >9% in the are slated to be planted in the region.
● THE LAST 3 YEARS
last three years. We achieved this reduction with the
implementation of our Zero Liquid Discharge (ZLD)
process with treatment systems like ETP, DAF, RO, MVR, 1.89 Kl/MT >33%
ATFD, STP, and Sludge Handling Screw Press. Recovered
wastewater is reused in Cooling Towers, reducing
WATER CONSUMED OF PROJECT LAND DEVELOPED
freshwater consumption AS GREEN BELT
● Techniques, such as process cascading and co-generation
of steam condensate, and use of devices like jet pumps,
are used to reduce water consumption in our operations

ESG >> Social
Empowering People Corporate Social Responsibility

We collaborate with different organizations
in order to bring value to the communities
and lives around us. This becomes the
basis of recruitment, goal setting, training,
performance evaluation and career
enhancement.
2,300+ We focus on the categories of healthcare,
EMPLOYEES
education and social upliftment, while
carrying out our CSR activities.
40,000+
TOTAL TRAINING
HOURS
Healthcare
We saw an opportunity to contribute to and improve the
quality of the healthcare system. We support programmes
We are committed towards creating a Training and Development that address the needs of marginalized communities who
require the greatest healthcare assistance. In addition to
positive impact on the lives of the people Customer-centric businesses are always developing techniques donations, we devote our efforts and resources toward
we are working with. The overall growth to provide just the highest value to their consumers. Similarly, we improving healthcare facilities by equipping them with high-
of our organization is linked to ensuring a strive tirelessly to provide relevant services to our customers in tech machinery and testing equipment.
high-quality, safe, and inclusive environment order to build long-term connections with them. Our employees
are enthusiastic about their jobs. When it comes to decision
for our employees and the communities we making, our team is bold in exploring new development
are serving. We are consistently improving opportunities and implementing approaches to succeed in
upon our policies to create an equitable and difficult endeavours. To provide the best-in-class products and
inclusive workplace and society. services, we must concentrate on developing strong skills for
our personnel. As a result, we aim to improve our workers' total
skill set, which raises the value they provide to the organization. Education
Our People We inspire our employees by fostering a cooperative and
We believe that access to education is a need, not a
performance-oriented work environment.
Our most valuable asset is our workforce. luxury. Therefore, we collaborate with local communities
We invest in them on a regular basis via Our Strategies:
and work towards making quality education accessible
to everyone. We are working towards the betterment
different strategic development projects. of the students by providing the local schools with
Mitigation of risk by devising appropriate Succession
Our human capital is efficient, devoted, ●
Planning Strategies infrastructural facilities including smart classrooms,
and committed to the organization's ● Identification of top-performers and non-performers
libraries and computer labs, among others.
development and success. It is their ● Continuous measurement of the effectiveness of leadership
persistent efforts that have propelled us to and employee satisfaction (surveys)
the forefront of the business. ● Increased employee engagement through
appropriate measures
We believe that employees who find purpose at work
● Reward and recognition measures
typically try to produce to the best of their abilities, bringing
the organization one step closer to achieving its aspirations. ● Adjustment of recruitment and training to competency gaps
As a result, we place a high value on our mission and vision,
Social Upliftment
● Specifying well-defined job descriptions, which map to
and we urge our employees to join us on this journey. While the organizational structure. This becomes the basis of As part of our CSR, we believe in uplifting society's
we want to be one of the most respected firms in APIs and recruitment, goal-setting, training, performance evaluation, underprivileged communities. We have implemented
Specialty Chemicals, our primary goal is to make a significant and career enhancement initiatives focusing on improving the rural infrastructure,
difference in the communities in which we operate. While including installing solar streetlights and cleaning the wet
we develop approaches to contribute to and cause positive drains. We have also collaborated with various NGOs working
change in the environment and society, we are proud of our towards the upliftment of specially-abled people.
people and humbled by their assistance in this process.

ESG >> Governance and Leadership
Robust Governance Board of Directors

We are dedicated to supporting all of our stakeholders' best interests. We've put in place a Our Board of Directors has the overall responsibility to guide our organization and
robust and well-structured corporate governance system that allows us to operate more manage the administration. Their strategic roles focus on identifying our priorities,
effectively, reduce business risks, and safeguard the interests of our stakeholders. Our setting our long-term targets, managing the funds and making sure that we are
corporate governance framework focuses our Company operations on long-term value striving towards growth.
development and innovation. It also fosters a management culture that upholds good
corporate governance standards and a transparency policy.
Our Company’s Philosophy on Corporate Governance is Based on Following Principles: Mr. Rajender Mohan Malla Mr. Varinder Gupta
Chairman and Independent Director Managing Director
Composition Promote ethical

Safeguard integrity Make timely and
of the Board to and responsible
in financial reporting balanced disclosures
add value decision-making
N C B S
Dr. Sanjay Chaturvedi Mr. Vikas Gupta Mr. Kushal Kumar Rana
Executive Director and Executive Director Director (Works)
Recognize and Respect the Recognize the Legal and statutory Chief Executive Officer
manage business rights of the legitimate interest of compliances in letter

risks shareholders the stakeholders and spirit
R A S R C B R
Dr. Sandhya Mehta Mr. Harpal Singh Mr. Sharad Tyagi

Independent Director Independent Director Independent Director
N S A R C B A R N
A: Audit Committee N: Nomination and Remuneration Committee Member

S: Stakeholders Relationship Committee C: Corporate Social Responsibility Committee Chairperson
R: Risk Management Committee B: Banking and Finance Committee

IOL Chemicals and Pharmaceuticals Limited
ESG >> Governance and Leadership
Mr. Rajender Mohan Malla

Chairman and
Independent Director
Mr. Vikas Gupta
Executive Director
Mr. Harpal Singh
Independent Director Statutory Reports and
Financial Statements
Mr. Vikas Gupta graduated from King’s Mr. Harpal Singh has the titles of Fellow
Mr. Rajender Mohan Malla has a College London, University of London, (Mechanical Engineer) of the Institute
Bachelor's of Commerce degree from with a Bachelor's of Science in Business of Engineers (India), CAIIB of The Indian
Shri Ram College of Commerce, an Management. Institute of Bankers, Mumbai, and
M.Com degree from the University Merit Pass UK Financial Services and
He is intellectually prepared and
of Delhi, and an MBA degree from Regulations.
has organizational abilities. He
the University of Delhi’s Faculty of
spent two years in the Company’s He has over 37 years of banking and
Management Studies.
He has a long and successful career
strategy department, where he
was instrumental in developing
financial industry expertise. From 2010
until 2015, he was General Manager
Contents
spanning four decades. He has held the Company’s Chemical and of Punjab National Bank, where he
senior and substantial decision-making Pharmaceutical businesses. Over the oversaw the bank’s overall activities in
roles in banks, financial institutions, previous 9 years, he has been critical to the state of Punjab. Statutory Reports
and non-banking financial companies. the organization’s operations.
IDBI Bank Ltd., SIDBI, IFCI, and PTC India
Management Discussion & Analysis 30
Mr. Sharad Tyagi
Financial Services Limited are some Directors' Report 38
Mr. Kushal Kumar Rana Independent Director
of these banks. From 2013 to 2015, he
Director (Works)
was MD & CEO of PTC India Financial Mr. Sharad Tyagi has a degree in Corporate Governance Report 57
Services Limited (PFS), a subsidiary of Mr. Kushal Kumar Rana holds a engineering from Delhi University and
PTC India Limited, and previous to that, Bachelor’s degree in Chemistry, Physics, an MBA from IIM Ahmedabad. Business Responsibility Report 70
CMD of IDBI from 2010 to 2013. and Math and has graduated from
He has over 35 years of
Vinayaka Mission University with a
entrepreneurship experience in India
Mr. Varinder Gupta
Master’s degree in Chemistry.
and foreign markets, encompassing Financial Statements
Managing Director He has over 30 years of expertise in pharmaceuticals, OTC, automotive
the pharmaceutical sector and a solid catalysts, and Specialty Chemicals. Standalone 76
Mr. Varinder Gupta is an industrialist
technical background. He joined the
with over 35 years of expertise in the
Company in 2005 as a Senior Manager
He was the Managing Director of Consolidated 128
chemical and fertilizer industries. His Boehringer Ingelheim (BI) in India from
of Production in the API business. Prior
broad approach and strong oversight of 2009 to 2020. Notice 170
to becoming a Director, he worked
the Pharma and API business have been
for the Company as President, Quality His previous positions include Senior
critical in promoting innovation and
Assurance, where he was in-charge of Vice President, API and Global Head of
quality inside the Company.
quality assurance, quality control, and the API Business at Dr. Reddy’s (2007-
corporate regulatory affairs. 2009) and Country Manager India and
Dr. Sanjay Chaturvedi Director Strategy Asia - Engelhard
Executive Director and Dr. Sandhya Mehta Corporation (1996-2006).
Chief Executive Officer Independent Director
Dr. Sanjay Chaturvedi graduated from Dr. Sandhya Mehta has an MBA as well
St Stephens College, University of Delhi, as a Ph.D. in Management Studies.
with a Bachelor’s degree in Chemistry
She is the Principal of Guru Nanak
(Honors) and a Master’s degree in
Institute of Management and
Physical Chemistry.
Technology in Ludhiana and has 29
He holds a PhD in Physical Chemistry years of expertise. She has seven books
from Stony Brook University in New to her credit, as well as several articles
York, and a Management degree published in prestigious national and
from the University of Pennsylvania’s international journals.
Wharton Business School.
He is a seasoned global business
leader, who has spent over 25 years
in the Specialty Chemicals and
pharmaceutical industries with firms
such as Praj Industries, Dr. Reddy’s,
and Aurobindo, to name a few. He has
a proven track record and functional
competence in Sales, Marketing,
Strategy, Manufacturing, and R&D in
the United States and India.

Management Discussion and

Global Economic Overview
2021 has been another challenging year due to the ongoing and The geopolitical confrontation between Ukraine and Russia
widespread effect of COVID-19, particularly with the introduction erupted into a full-fledged conflict as the year 2022 approached.
Analysis
of new strains causing higher mortality. Financial markets and As a result, numerous countries saw a surge in inflation, which
companies were impacted as a result of supply-side limitations. became their principal concern. In developed countries, inflation
To guarantee that credit was accessible to firms and consumers, is forecast to grow by 5.7%, while inflation in emerging markets
central banks offered a variety of solutions. Global immunization and developing economies is expected to rise by 8.7%. Food and
campaigns, together with accommodating governmental fuel price increases are generating societal unrest in emerging
measures, aided economic recovery. nations. China's Zero COVID policy, which restricts entrance to
key regions with vital industrial centers, is straining an already
Even now, many low-income developing countries are still
stretched global supply chain.
grappling with the pandemic's uncertainty. Supply chain problems,
semiconductor shortages, and the ongoing energy crises have These factors have had an effect on the projected growth for the
exacerbated the issue. Global growth is expected to be 3.6% in next year. The growth rate of advanced economies is projected
2022, down from 6.1% in 2021, according to the International to decline to 3.3% in 2022, from 5.2% in 2021. Emerging markets
Monetary Fund (IMF). However, the prognosis is contingent and emerging economies (EMDE) are recovering more quickly
on improving health conditions brought about by intensive than developed economies, with a 6.8% growth rate in 2021
immunization campaigns, as well as the availability of innovative expected to decline to 3.8% in 2022.
and effective medicines. If no new outbreaks occur, the negative
With the new strain still on the loose, the need of a strong global
effect is predicted to reduce by the second quarter of 2022.
health strategy is more important than ever. Global availability of
In 2021, the value of global trade hit a new high of $28.5 trillion, vaccinations, diagnostics, and medications is critical for lowering
a 25% rise from 2020 and a 13% increase from 2019, before the likelihood of more lethal COVID-19 variations. Higher supply
the COVID-19 pandemic. While the majority of global trade production, better in-country delivery networks, and more
expansion occurred in the first half of 2021, development equitable global distribution are all necessary to accomplish this.
continued in the 2nd half. After a rather sluggish 3rd quarter, To keep inflation at bay, many nations' monetary policies will
trade growth accelerated in the 4th quarter, when trade in need to be tightened even more, while fiscal policy would need
goods reached a new record high of $5.8 trillion, increasing by to prioritise health and social spending while concentrating
about $200 billion. Meanwhile, trade in services increased by $50 assistance on the most disadvantaged.
billion to reach $1.6 trillion, surpassing pre-pandemic levels by a
narrow margin.
Global GDP Growth and Forecasts

Particulars 2020 2021 2022(f) 2023 (f)
World Output (3.1) 6.1 3.6 3.6
Advanced Economies (4.5) 5.2 3.3 2.4
United States (3.4) 5.7 2.7 3.3
Euro Area (6.4) 5.3 2.8 3.3
Emerging Market and Developing Economies (2.0) 6.8 3.8 4.4
China 2.2 8.1 5.4 5.1
India (7.3) 8.9 8.2 6.9
Japan (4.5) 1.62 2.39 2.32
Brazil (3.9) 4.6 0.8 1.4
(Source: IMF World Economic Outlook

https://unctad.org/news/global-trade-hits-record-high-285-trillion-2021-likely-be-subdued-2022)

Specialty Chemicals grew at a CAGR of 7.8% between 2017 and 2021, reaching
The worldwide Specialty Chemicals market was valued at USD $353.2 billion in 2021, and it is predicted to grow at a 5.08%
627.7 billion in 2020 and is expected to grow at a CAGR of 4.7 % CAGR through 2026. Lower-income nations are predicted to
from 2021 to 2028, reaching USD 882.6 billion. This growth increase expenditure at a CAGR of 2.5-5.5%, reaching $21-25
is being driven by increased demand for high-performance billion by 2026, up from $18.9 billion in 2021.
and function-specific chemicals. Industrial and institutional (Source: IQVIA Global use of medicines 2022)
cleansers segment accounted for 9.8% of market revenue in
2020 and are predicted to grow at 4.6% from 2020 to 2028 .The API (Active Pharmaceutical Ingredients) Sector
coatings, adhesives, sealants, and elastomers (CASE) business is
Despite the COVID-19 problem, the global market for Active
also expanding as a potentially lucrative area, accounting for a
Pharmaceutical Ingredients (API) is expected to reach a
4.9% value share in 2020. Construction chemicals are expected
revised size of $265.3 Billion by 2026, rising at a CAGR of 6.7%
to develop as an important product category with significant
over the research period.
growth prospects between 2020 and 2027. Specialized water-
proofing compounds, repair and restoration compounds, Following a detailed examination of the financial
joint fillers, and tile fixing adhesives are in great demand in the ramifications of the pandemic and the resulting economic
construction and building industry. crisis, growth in the Generic category is reduced to a 7.4%
CAGR for the next seven years.
Despite the fact that Specialty Chemical makers are increasingly
concentrating their efforts on new markets, Europe is regarded The generics segment now holds 30.2% of the international
as a stable market for Specialty Chemicals. In 2018, Specialty Active Pharmaceutical Ingredients (API) market. As branded
Chemicals accounted for more than 27% of total chemical sales API patents expire, options for generic APIs expand, resulting
in the EU, according to the European Chemical Industry Council in increased API market demand.
Indian Economic Overview ht tps://w w w.forbes.com/advisor/in/personal-f inance/2022/06/08/ (Cefic). It is one of the most significant exporting businesses in
indias-rbi-increases-repo-rate-by-50-bps-projects-fy23-inflation-at-6-
APIs are physiologically active molecules that serve as the
the area, accounting for over one-third of total chemical exports
The economy is expected to have a real GDP growth of 8.9% 7/#:~:text=Personal%20Finance-,India's%20RBI%20Increases%20Repo%20 foundation for medication production. API manufacture
in 2018. In the future, the Asia-Pacific area is predicted to account
in FY 2021-22 against the contraction of 7.3% it witnessed in Rate%20By%2050,Projects%20FY23%20Inflation%20At%206.7%25) is mostly focused in developing countries owing to their
for 44% of worldwide demand, with a focus on China, India,
the previous year. This shows us that the economic activity has capacity to scale production based on customized and low-
and Japan. Companies supplying the automotive, coatings, and
grown beyond the pre-pandemic levels. Despite the health As per the report by RBI’s Department of Economic & Policy cost manufacturing.
polymer industries are expected to see a prolonged slowdown
impact witnessed during Q1 FY2022 due to the Delta variant, the Research in April’22, the Indian economy will take than more as demand remains low, a situation that is likely to be worsened The API market is expected to benefit from a greater
economic impact was much smaller than Q1 FY2021. than a decade to overcome the losses due to COVID-19. The by any more COVID-19 waves. emphasis on generic and branded medications as the
According to the Economic Survey 2021-22, the industrial sector pandemic was followed by Russia-Ukraine war resulting in incidence of non-communicable and chronic medical
grew by 11.8% this year as compared to the contraction of 7.8% further supply chain disruptions. For the individual years 2020- (Source: https://www.grandviewresearch.com/industry-analysis/specialty- disorders rises as a consequence of lifestyle changes and fast
it faced in FY 2020-21. This was due to larger scale of operations 21, 2021-22 and 2022-23, the report has pegged individual losses chemicals-market) urbanization. The market is expected to develop further as a
after vaccinations were conducted and easing of restrictions. at ₹19.1 lakhs, ₹17.1 lakhs and ₹16.4 lakhs. result of the shift away from traditional production processes,
Total consumption has grown by about 7% with government https://www.globenewswire.com/news-release/2022/07/20/2482838/0/ increased investment in medication research, and strict
en/At-4-7-CAGR-Specialty-Chemicals-Market-Size-to-Surpass-USD-882-6-
spending being the biggest contributor. The Gross Fixed Capital Global Industry Review Billion-by-2028-Fortune-Business-Insights.html
attention to product quality.
Formation has grown by about 15% driven by aggressive Chemicals Industry The market is also benefiting from an increase in the number
capex and infrastructure expenditure by the government. The
The American Chemistry Council (ACC) predicts that worldwide https://www.grandviewresearch.com/industry-analysis/specialty- of generic pharmaceuticals developed with the consent
government’s focus on exports and investments supported
chemical sector output will increase by 3.8% in 2022 before chemicals-market) of a pharmaceutical firm to create their own version of the
development. Sector-specific initiatives, such as the Production
slowing to 3.2% in 2023. According to the American Chemistry medication. The COVID-19 outbreak and the related supply
Linked Incentive (PLI) scheme and increased infrastructure
Council, global chemical industry production will increase by Pharmaceutical Industry chain problems are causing several countries to reject
expenditure, have also helped in growth of domestic
5.8% in 2021, with Asia Pacific growing at the fastest rate of 8.2%, The global pharmaceutical industry was worth $1.4 trillion in sourcing APIs from China.
manufacturing.
North America growing at 1.8%, Latin America growing at 2.7%, 2021, and it is predicted to increase at a CAGR of 3-6% over Despite these obstacles, the API industry is expected to
Despite improved economic performance, rising inflation has Western Europe growing at 1.8%, Eastern Europe growing at the following five years, reaching $1.8 trillion by 2026. This accelerate owing to favourable factors such as the imminent
been a continual cause of worry. The Consumer Price Index (CPI) 5.9%, and Africa and the Middle East growing at 2.5%. Looking prediction includes expenditure on COVID-19 immunizations, approval of many generic and blockbuster medications that
in India increased to 7.8% in April 2022 from 7.0% in March 2022, ahead to 2022, production growth in the chemical industry is and total vaccine spending is anticipated to reach $251 billion by depend on APIs.
far above the RBI's objective of 4 percent (+/- 2%). According to expected to slow down in most regions, but likely to accelerate 2026.
projections, ongoing food price inflation will boost the main in others. In North America, the industry is expected to reach
Adoption of new treatments and specialty medicines will boost (Source: https://www.globenewswire.com/en/news-relea
CPI. In response, the RBI hiked the repo rate by 50 basis points to 4.5%; in Africa and the Middle East, expected to accelerate to se/2022/01/25/2372193/28124/en/Global-Active-Pharmaceutical-
4.9% in June 2022, the RBI's second rate hike this year following a 3.3%; while in Latin America, Western Europe, Eastern Europe medical pharmaceutical growth in developed countries, but loss
Ingredients-API-Market-Report-2021-Market-to-Reach-265-3-Billion-by-
40 basis point off-cycle increase in May 2022. and the Asia Pacific, the industry is expected to slow to 2.4%, of exclusivity and competition from generics and biosimilars 2026-Preference-for-Specialized-CDMO-Contractors-on-the-Rise.html)
1.6%, 3.6%, and 4.3% respectively. may restrict growth. Pharmaceutical markets in the developed
The IMF has projected a growth of 8.2% for India during FY world grew at a CAGR of 4.3% from 2017 to 2021, reaching
2021-22, which is a revision and a reduction from their January According to the American Chemistry Council, worldwide $1049.2 billion, and are predicted to rise at a 2-5 percent CAGR to
forecast by 0.8%. This value may be further revised based on chemical industry output growth in 2022 will be lower than in reach $1,230-1,260 billion by 2026.
current external events such as developments in geopolitical 2021, with agrochemicals decreasing from 3% in 2021 to 2.3% in
tensions, like the Russia-Ukraine conflict, continuing supply 2022, and consumer chemicals slowing to 3% from 3.4% in 2022. Expanding healthcare access in most countries and increased
chain constraints, and rising prices of oil and other commodities Basic chemicals will slow to 4% from 6.1%, inorganic chemicals to expenditure on new medicines will help drive medicine
leading to further inflation. 3.9% from 6.6%, bulk petrochemicals and organic chemicals to spending growth ahead in pharmerging economies, although
3.8% from 5.8%, plastic resins to 4.3% from 6%, synthetic rubber off-patent branded medications and cheap generic drug prices
(Source: Economic survey 2021-22; IMF World Economic Outlook) to 6.3% from 7.6%, and Specialty Chemicals to 4% from 5.2%. may have an influence on growth. The pharmerging markets
(Source: https://www.echemi.com/cms/476219.html)

Indian Industry Review Specialty Chemicals Business Review in industries like pharmaceuticals, printing, flexible packaging,
Chemicals Industry The Specialty Chemicals sector in India has been critical in IOL is a leading and recognized company in the Active adhesives, surface coatings, flavors, paints & lamination, and
fueling the expansion of the chemical industry. By value, it Pharmaceutical Ingredient (API) and specialty chemicals sectors. essences. A diverse array of end-use industries fuel the product's
Chemicals and chemical products play an important role in the
accounts for around 22% of India's overall chemicals market. The company is a producer and global supplier of APIs including demand. The company's production facilities are in Fatehgarh
manufacturing sector because of their direct and indirect uses
India is growing as a favored production base for Specialty Ibuprofen, Metformin, Clopidogrel, Lamotrigine, Pantoprazole, Chhanna, Barnala District, Punjab. The Department of Scientific
in a wide range of industries, including food and drinks, textiles,
Chemicals, including contract and custom synthesis for both and Fenofibrate, as well as additional APIs, and has a strong and Industrial Research (DSIR) approved R&D centre of the
leather, metal extraction and processing, petroleum refining,
local and foreign markets. The Indian Specialty Chemicals presence in all key therapeutic categories. The need for APIs company is equipped with modern and analytical equipment.
medicines, and rubber. As its competitiveness grows, India’s
sector is projected to increase 11-12% to $64 billion by 2025. continues to rise because to the prevalence of lifestyle disorders As part of our sustainability efforts, we have initiated the usage
chemical sector is witnessing transformative shift, driven by the
Furthermore, it is estimated to create an additional $60 billion and the necessity for more inexpensive healthcare delivery of biofuels in our captive co-generation plant (17 MW capacity)
availability of low-cost labor as well as a global phenomenon of
in potential across Specialty Chemicals industries over the next methods. In the Specialty Industrial Chemicals division of the IOL, to reduce our carbon footprint. The company has an exceptional
China plus one strategy that attempts to focus on development
8-10 years. Ethyl Acetate, Iso Butyl Benzene (IBB), Mono Chloro Acetic Acid team of technical and commercial experts in pharmaceutical and
of alternative supply-chain market for the sector apart from
(MCA), and Acetyl Chloride are manufactured. Ethyl acetate is used chemical production and marketing.
China. In an effort to expand their businesses, Specialty Chemical firms
are pursuing import substitutes and exploring other export
The market is expected to reach $304 billion by 2025, at a
options. 20% of the $4 trillion worldwide chemicals business is
CAGR of 9.3 percent, due to increased demand in the Specialty
comprised of Specialty Chemicals.
Chemicals and petrochemical categories.
SCOT Analysis
Key Growth Drivers: (Source: IBEF Chemicals February 2022
Strengths
● Rising domestic demand https://www.indianchemicalnews.com/opinion/indian-specialty-chemical-
industry-poised-for-a-quantum-leap-13553)
- By 2030, India is expected to have 80% of its families in the ● Strong backward integration capabilities.
middle-income bracket. Maximizing export potential by filling DMFs and getting regulatory approvals
Pharmaceutical Industry ●
- The expanding middle-class and increasing urbanisation India is third in the world by volume and 14th by value in terms ● Good long-term relationship with domestic clients
are driving demand for personal care, agrochemicals, of pharmaceutical production. The domestic pharmaceutical ● High-quality front-end team with strong regulatory and manufacturing capabilities
food, paints and coatings, resulting in greater chemical sector consists of a network of 3,000 pharmaceutical companies ● A strong balance sheet with no debt.
consumption per capita. and 10,500 production facilities. The Indian Economic Survey
● Strong product pipeline in both the pharmaceutical and chemical sector
2021 forecasts that the domestic market would triple in size
● The government's intent to increase manufacturing's over the next decade. Domestic pharmaceutical sales in India ● Ability to manage high scale complex operations
proportion of GDP to 20% by 2025 were $42 billion in 2021, and is projected to reach $65 billion
by 2024 and $120 billion by 2030. In January 2022, the Indian
- The government sees manufacturing as a major priority pharmaceutical market grew by 13.9%. India is a prominent and
and has contacted ~1,450 organizations globally, to Challenges
expanding participant in the global pharmaceutical industry.
produce in India. India is the world's largest supplier of generic pharmaceuticals, ● Long durational period for developing compounds and getting registrations for commercialization
- The government's proposal includes 2-3 autonomous accounting for 20% of the global supply by volume and fulfilling
● Strained supply chain network across the world
zones with no labour or land rules. over 60% of the global demand for vaccinations.
● Volatility in the pricing of raw materials
- ~300 organizations are actively pursuing manufacturing (Source: IBEF Pharmaceuticals March 2022)
plans in mobile phones, electronics, medical products, and
textiles. API Sector Opportunities
During the 2020-2026, the market for APIs in India is expected
(Source: Department of Chemicals and Petrochemicals ● Indian pharmaceuticals and chemical companies getting increased outsourcing opportunities, fueled by the
to grow at a rapid rate. The expansion of the Indian APIs
IBEF Chemicals February 2022) China+1 strategy
market is primarily driven by the rising prevalence of chronic
illnesses and the significance of generics. Innovations in active ● Increasing domestic needs that are unmet due to the supply chain disruption owing to the disturbed geographical
pharmaceutical ingredient (API) manufacture and the expansion scenario can be met by the domestic producers
of the biopharmaceutical industry is also driving pharmaceutical
market expansion.
Threats
The growth of the sector is fueled by the adoption of global
standards and the establishment of large-scale operations in
● Increasing energy and raw material prices because of the volatile nature of the changing global scenario, worsened by
the country. India has the biggest number of US FDA-approved
the Russia-Ukraine conflict
plants, ~665, and accounts for 44 percent of the world's
abbreviated new drug applications (ANDA).
To encourage API (bulk drug) production, the Government
of India has introduced Production-Linked Incentive (PLI)
scheme that also supports the “Atmanirbhar” effort for Indian
manufacturers.
(Source: https://www.globalmarketestimates.com/market-report/india-api-
industry---market)

People and Culture Internal Control System and Their Adequacy

As of March 31, 2022, the Company has a workforce of 2,300+ The Company has aligned its current systems of internal controls
people. The company ensures the utmost importance of its including financial controls with the requirement of Companies
Risk Management Human capital and focuses on ensuring a quality workplace with Act 2013. The Company’s internal controls are commensurate
Please refer page 16 in the non-statutory section for details. best-in-class people policies, overall rewards, and capability with its size and the nature of its operations. These have been
development. designed to provide reasonable assurance with regard to
Financial Performance recording and providing reliable financial and operational
The company believes in providing equal opportunities
information, complying with applicable statutes, safeguarding
Revenue: Total income has grown to ₹2,216 crores during the irrespective of gender, background, and age. We imbibe the
assets from unauthorized use, executing transactions with
year in review as compared to ₹1,991 crores in the previous year. company’s values which are delivering high-quality products
proper authorisation and ensuring compliance of corporate
and services, exceeding our clients’ expectations, passionate
Segmental Revenue: The pharmaceutical segment contributed policies.
about our work, having strong ethics, and taking pride in what
to ~46% of the revenue during the year as compared to ~60%
we do. The Company uses best IT system to record data for accounting,
in the previous year. Within the pharmaceuticals segment,
consolidation and management information purposes and
Ibuprofen had a ~65% share of the sales during FY 2021-22 when We focus on the career progression of our people internally and
connects to different locations for efficient exchange of
compared to the ~82% share it had in the previous year. provide them with growth opportunities through our various
information.
development programs including succession planning and job
The chemicals segment had a ~54% share of the total revenue
rotations. We continuously hire fresh talent from colleges and The Audit Committee reviews reports submitted by internal
during the year as compared to the 41% share it held last year.
nurture them in a focused manner to take up challenging and auditors regularly and suggest the improvements from time to
EBITDA: The EBITDA during the year in review was ₹288 crores, higher roles in the organization. time which are being implemented by the Company.
as compared to the ₹616 crores in the previous year. This decline
Recently, we have reviewed our people's policies and refined
was caused majorly due to rising raw material and fuel costs. Cautionary Statement
them further to be one of the most employee-friendly
Net Profit After Tax: The Company earned ₹166 crores as profit companies in the Chemicals and Pharma space. We have Statements in Management Discussion and Analysis describing
after tax during the year as compared to ₹445 crores earned last Current Assets and Current Liabilities: The Company had introduced policies like menstrual leave, and flexible working Company’s objectives, projections, estimates and expectations
year. inventories of ₹410 crores as on 31st March 2022 against ₹295 hours for new mothers for female employees as a step to build a may be “Forward Looking Statements” within the meaning of
crores as on 31st March 2021. Trade Receivable amounted to ₹470 diversified culture in the company. applicable laws & regulations. Actual results may differ materially
Balance Sheet crores as on 31st March 2022 as compared with ₹300 crores as from those expressed or implied. Important factors that could
Employee engagement is another critical focus area for us
Share Capital: The paid-up equity share capital of the Company on 31st March 2021. The trade payables increased to ₹409 crores make a difference to company’s operations include but are not
wherein we continuously have events like town hall, meeting
has been ₹ 58,70,55,020/- (Rupees fifty-eight crore seventy lakh as on 31st March 2022 as compared with ₹239 crores as on 31st restricted to the economic conditions affecting demand/supply
with new joiners, Funday activities, wellness sessions, and sports
fifty-five thousand and twenty) consisting of 5,87,05,502 (Five March 2021. The changes are in line with increase in overall and price conditions in the domestic and overseas markets
events to drive teamwork and foster vibrant organizational
crore eighty-seven lakh five thousand five hundred two) equity operations. in which Company operates, changes in the Government
culture.
shares of ₹10/- each as on 31st March 2022. There is no change in regulations, tax laws, and other statues, as also other incidental
Cash Flows: The Company’s net cash flow from operating
the Capital of the Company during the FY 2021-22. factors.
activities for the year ended 31st March 2022 amounted to ₹91
Reserves and Surplus: Reserves and Surplus for FY 2021-22 was crores against net cash flow used in operating activities ₹380
₹1,332 crores as compared to ₹1,202 crores for the previous year. crores during the previous year.
Net Worth: The net worth of the Company has grown to ₹1,390 The Company’s net cash used in investing activities amounted to
crores in FY 2021-22 from ₹1,260 crores at the end of FY 2020-21 ₹120 crores during the year ended 31st March 2022 against ₹317
crores during the previous year.
Borrowings: Long-term secured borrowing was NIL at the end
of FY 2021-22. Unsecured long-term borrowings were NIL at the During the year ended 31st March 2022, net cash used in
end of FY 2021-22. As of now, the Company has no outstanding financing activities amounted to ₹2 crores as against ₹58 crores
balance on any Term Loan. during the previous year.
Short term secured borrowing at the end of FY 2021-22 were ₹43 Ratio Analysis
crores against NIL at the end of FY 2020-21.
Ratio FY 2020-21 FY 2021-22
Assets Operating Profit Margin 30.94% 13.01%
Non-Current Assets: Total non-current assets including Capital Net Profit Margin 22.60% 7.58%
work in process increase to ₹882 crores as on 31st March 2022 Return on Net Worth 43.50% 16.44%
from ₹600 crores as on 31st March 2021, net of depreciation and Trade Receivable Turnover 56 79
additions. Inventory Turnover Ratio 5.20 5.05
Current Ratio 3.48 2.10

Directors’ Report
Dear Members Obligations and Disclosure Requirements) Regulations, 2015 F urther, pursuant to the provisions of Section 136 of the Act, a Special Resolution passed through postal ballot on 18th
(“SEBI Listing Regulations”) is available on the Company’s the standalone and consolidated financial statements of March 2022,
The Board of Directors presents the 35th Annual Report of the website at https://www.iolcp.com/uploads/Dividend%20 the Company along with relevant documents and separate
Company on the business operations and performance of the Distribution%20Policy.pdf. audited financial statements in respect of subsidiaries, are Pursuant to the provisions of the Section 161, 149 read with
Company along with the audited financial statements for the available on the website of the Company at www.iolcp.com. Schedule IV of the Companies Act 2013 and applicable
financial year ended 31st March 2022. 3. Transfer to reserves The Company has no holding company. regulations of SEBI (Listing Obligations and Disclosure
The Company has not transferred any amount of profits to Requirement) Regulations, 2015 and on the basis of
1. Financial Results reserves for FY 2021-22. 8. Credit Rating recommendations of the Nomination and Remuneration
The summary of the financial performance of the Company During the year under review, The Credit Analysis & Research Committee the Board of Directors in its meeting held on
for the Financial Year ended 31st March 2022 along with the 4. Fixed Deposits Ltd (CARE) has upgraded the credit rating for Long term Bank 30 th May 2022 appointed Mr Sharad Tyagi as Additional
comparative figures for the previous year is summarized Facilities from ‘CARE A’ (Single A; Outlook: Stable) to ‘CARE Director in the category of Independent Director of the
The Company has not accepted any deposits within the
herein below: A+’ (Single A plus; Outlook: Stable) and the credit rating Company for a term of 5 years with effect from 30 th May
meaning of Section 73 of the Companies Act, 2013 and as
for Short Term Bank Facilities from ‘CARE A1’(A One) to ‘CARE 2022 and recommended to the Shareholders for approving
such no amount of principal or interest was outstanding as
(` in Crore) A1+’(A One plus). the appointment of Mr Sharad Tyagi as Independent
on 31st March 2022.
Year ended Year ended Director of the Company for a period of 5 years effective
Particulars
31-Mar-2022 31-Mar-2021 9. Expansion from 30th May 2022, not liable to retire by rotation. Pursuant
5. Share Capital
Total income 2216.06 1991.28 to the provisions of Section 161 of the Companies Act, 2013
The paid-up equity share capital of the Company has been During the financial year 2021-22, the Company has
Profit before interest & depreciation 288.32 616.14 Mr Sharad Tyagi, holds the office of director upto the ensuing
` 58,70,55,020/- (Rupees fifty eight crore seventy lakh fifty successfully set up multi product manufacturing facilities
Interest 8.29 5.83 Annual General Meeting of the Company.
five thousand and twenty only) consisting of 5,87,05,502 ‘Unit 10’ for manufacturing pharma APIs. The Company has
Profit before depreciation 280.03 610.31 identified to manufacture Fenofibrate, Lamotrigine etc in
(Five crore eighty seven lakh five thousand five hundred two) The Board of Directors on 30 th May 2022, based on the
Depreciation 43.26 38.92 equity shares of ` 10/- each as on 31st March 2022. There is no this unit.
recommendations of Nomination and Remuneration
Profit before exceptional items 236.77 571.39 change in the Capital of the Company during the Financial Committee, appointed Dr Sanjay Chaturvedi, who is working
Exceptional items 13.93 - year 2021-22. Further, the Company also initiated the project for installation
as Chief Executive Officer of the Company, as Additional
Profit before tax 222.84 571.39 of new manufacturing facilities (Unit-9) for manufacturing
Director of the Company in the category of Wholetime
Provision for tax (including deferred tax) 57.18 126.83 6. Investor Education and Protection Fund (IEPF) Gabapentin and other Pharma products during the year,
Director having designation as Executive Director & CEO of
Profit after tax 165.66 444.56 which is under implementation.
Pursuant to the provisions of Section 124 of the Companies the Company for a period of 5 years with effect from 30th May
Act,2013 (“the Act”) read with Investor Education and 2022. Pursuant to the provisions of Section 161 of the Act,
During the year under review, the standalone operating 10. Directors and Key Managerial Personnel
Protection Fund Authority (Accounting, Audit, Transfer and Dr Sanjay Chaturvedi holds the office of director upto the
revenue of your Company was ` 2216.06 Crore, higher by Refund) Rules, 2016 (“IEPF Rules”), and relevant circulars and During the Financial Year 2021-22, the Board of Directors, ensuing Annual General Meeting of the Company.
11.29% as compared to ` 1991.28 Crore in the previous year. amendments thereto, the amount of dividend remaining based on the recommendation of the Nomination and
unpaid or unclaimed for a period of seven years from Remuneration Committee has appointed Mr Kushal Kumar Further, in terms pf the provisions of the Companies Act,
During the year under review the due to continued volatility the due date is required to be transferred to the Investor Rana as Wholetime Director having designation as Director 2013, Mr Vikas Gupta, Executive Director of the Company
in the output prices, higher raw materials and energy cost Education and Protection Fund (“IEPF”), constituted by the (Works) for a period of 3 years with effect from 4th June 2021, retires by rotation at the ensuing Annual General Meeting
margins were impacted adversely. The gross margin for Central Government. liable to retire by rotation. The said appointment of Mr Kushal and, being eligible, offers himself for re-appointment. The
FY 2021-22 was ` 403.55 Crore as compared to ` 712.06 Crore Kumar Rana was approved by the shareholders in their 34th necessary resolution seeking shareholders’ approval for his
in the previous year. During the year under review, no amount of unpaid/ Annual General Meeting held on 18th September 2021. re-appointment forms part of the Notice for the ensuing
unclaimed dividend was due for transfer to the Investors Annual General Meeting.
The product portfolio of the Company in the pharamceutical Education protection Fund. Further, the Nomination and Remuneration Committee
segment is improving year on year basis by adding new based on performance evaluation of Mr Rajender Mohan Also, the necessary resolutions and brief details of all the
products and therefore the non-Ibu business has achived a Members who have not encashed any dividend declared Malla (DIN: 00136657) and Mr Harpal Singh (DIN: 06658043) directors seeking appointment/re-appointment at the
growth of about 70% in FY 2021-22 as comapraed to last year. by the Company, are advised to write to the Company as Member of the Board / Committees also their contribution ensuing Annual General Meeting are furnished in the notice
immediately at email: investor@iolcp.com in Board / Committee deliberations during their tenure as calling the Annual General Meeting.
During the year under review. The Company has filed 4 new an Independent Directors and their skills, background and
DMFs with USFDA in addition to 3 CEP applications with 7. Holding & Subsidiary Company experience, recommended to the Board for re-appointment During the year under review Mr Varinder Gupta, Managing
EDQM. The Company has got additional approval from as Independent Directors of the Company for a second Director; Mr Kushal Kumar Rana, Director (Works) (being
Details of subsidiaries / associates of your Company are
Korean FDA for 2 products and 6 products have got approval term of five years. The Board of Directors in their meeting Whole-time Director); Mr Vikas Gupta, Executive Director
provided in notes to financial statements.
from Russian regulatory Authorities. held on 4th February 2022 unanimously endorsed the view (being Whole-time Director); Mr Pardeep Kumar Khanna,
of the Nomination and Remuneration Committee and Chief Financial Officer; Mr Abhay Raj Singh, VP & Company
During the year under review IOL- Foundation was
2. Dividend recommended to the Shareholders for re-appointment Secretary and Dr Sanjay Chaturvedi, Chief Executive Officer
incorporated as wholly owned subsidiary company under
The Board of Directors has declared interim dividends of of Mr. Rajender Mohan Malla and Mr Harpal Singh as continues to be the Key Managerial Personnel (KMP) of the
the provisions of Section 8 of the Companies Act, 2013 with
` 4/- per equity share involving a cash outflow of ` 23.48 Independent Directors of the Company, for a second term Company in accordance with the provisions of Section(s)
charitable objects for implementing the Companies CSR
crore during the year. The Board of Directors considers of five years, with effect from 6th February 2022, not liable 2(51) and Section 203 of the Companies Act, 2013 read
activities.
the same as final dividend and has not recommended any to retire by rotation. The Shareholders of the Company with the Companies (Appointment and Remuneration of
further dividend for the financial year 2021-22. The Board approved the re-appointment of Mr. Rajender Mohan Managerial Personnel) Rules, 2014.
Pursuant to the provisions of Section 129(3) of the Act,
has recommended the divided based on the parameters laid Malla and Mr Harpal Singh as Independent Directors of the
a statement containing the salient features of financial
down in the dividend distribution policy. Company for their 2nd term as mentioned above by way of
statements of the Company’s subsidiaries, associates & joint
ventures in Form No. AOC-1 is attached as Annexure – 1 to
The Dividend Distribution Policy, in terms of Regulation this report.
43A of the Securities and Exchange Board of India (Listing

Directors’ Report (Contd.)
11. Woman Director prudent so as to give a true and fair view of the state of 21. Audit Committee 2014. The CSR Policy is available on Company’s website:
In terms of the provisions of Section 149 of the Companies affairs of the Company as at the end of the year and of The Composition and role of the Audit Committee has been www.iolcp.com
Act, 2013 and Regulation 17 of the SEBI (Listing Obligations the profit of the Company for that year; provided in the Corporate Governance Report annexed with
and Disclosure Requirements) Regulations, 2015, Dr Sandhya the report. 25. Research and Development
Mehta is serving as Independent Woman Director on the c. that proper and sufficient care has been taken for Last two years, pharma industry has seen huge crests &
Board of the Company. She is Chairperson of Stakeholders the maintenance of adequate accounting records in 22. Risk Management troughs in terms of emerging opportunities and regulatory,
Relationship Committee and Nomination and Remuneration accordance with the provisions of the Companies Act, supply chain complexities. To surmount the difficulties
The risk management is to assess risks, deploy mitigation
Committee. She is also member of CSR Committee, Risk 2013 for safeguarding the assets of the Company and for aroused by the pandemic, IOL is transforming into different
measures and review them including risk management
Management Committee and Banking & Finance Committee. preventing and detecting fraud and other irregularities. dynamics by adopting the innovative technologies for high
policy on a periodic basis along with the top key risk
indicators of the organisation. This is done through periodic end sustainability. These evolving tools and skills are also
12. Board Evaluation d. that the annual financial statements have been contributing towards reduction in carbon footprint. Thus,
review meetings of the Risk Management Committee
prepared on a going concern basis. IOL is focusing on bringing the innovation through Research
Pursuant to the provisions of Companies Act, 2013 and comprising of the Board members.
SEBI (Listing Obligations and Disclosure Requirements) and Development to get a larger share in global volumes of
e. that proper internal financial controls were in place their portfolios.
Regulations, 2015, the annual evaluation is carried out by Risk Management Committee meeting held on 4th February
and that the financial controls were adequate and were
the Board of its own performance and that of its committees 2022 and 29th March 2022 for reviewing the implement and
operating effectively. At IOLCP we are embracing advanced technologies, scientific
and individual Directors by way of individual and collective monitor the risk management plan for the Company. It has
feedback from all the Directors. The Directors expressed been covered in the Management Discussion and Analysis breakthroughs that enabled us to advance research and
f. that systems to ensure compliance with the provisions development towards building a diversified portfolio
their satisfaction with the evaluation process. In a separate Report, which forms part of this report.
of all applicable laws were in place and were adequate and gain a leadership position in important new product
meeting of independent directors, performance of non-
and operating effectively introductions. Our R&D team constantly aspires to provide
independent directors, the Board as a whole and Chairman 23. Related Party Transactions
of the Company was evaluated, considering the views of novel solutions and processes that enable the regulatory
16. Declaration by Independent Directors All related party transactions that were entered into during
executive as well as non-executive directors. The evaluation teams to file DMFs across the globe so as the marketing team
the financial year were on arm’s length and were in the
criteria are mainly based on the Guidance Note on Board All the Independent Directors have submitted declarations can reach the customers worldwide.
ordinary course of business. These related party transactions
Evaluation issued by the SEBI. that each of them meets the criteria of independence as
did not attract the provisions of Section 188 of the Companies
provided in Section 149(6) of the Companies Act, 2013 R&D is focusing on advanced technologies like Enzymatic
Act 2013. Also, there was no material transaction entered into
13. Meetings of the Board and Committees of the along with Rules framed thereunder and Regulation bio-conversions instead of classical chemical reactions,
with any related party during the year under review.
Board 16(1)(b) of the SEBI (Listing Obligations and Disclosure which are highly product specific with high atom efficient
Requirement) Regulations, 2015. There has been no change throughputs & use of Continuous flow reactions which
During the year the Board met 4 times. The gap between All related party transactions were approved by the
in the circumstances affecting their status as independent minimizes by-products, improves process efficiencies and
any 2 two consecutive meetings was within the period Audit Committee and periodically reported to the Audit
directors of the Company. are also less energy & CAPEX intensive.
prescribed under the Companies Act, 2013 and SEBI (Listing Committee. Prior omnibus approval of the Audit Committee
Obligations and Disclosure Requirement) Regulations, was taken for related party transactions which are of
17. Remuneration Policy The scientists at IOLCP, demonstrated that enzymatic
2015. The details of meetings of the Board of Directors and repetitive nature and entered in the ordinary course of the
The Board has on the recommendation of the Nomination transformations are highly useful in production of high-
its Committees are provided in the Corporate Governance business on arm’s length basis.
& Remuneration Committee, framed a policy for selection quality APIs in cost affordable by use of engineered enzyme
Report forming part of this report.
and appointment of Directors, Senior Management, and and recycling them.
The details of the related party transaction during
14. Meeting of Independent Directors fixation of their remuneration. The Remuneration Policy can financial year 2021-22 are provided in the accompanying
be viewed on the company’s website www.iolcp.com. Collaborations with the topnotch scientists on the modern
Pursuant to the requirements of Schedule IV of the financial statements.
trends in industry ensured the core competencies of R&D
Companies Act, 2013 and in terms of Regulation 25 of the team are of the highest standards even when compared with
18. Internal financial control systems and their Accordingly, the disclosures of related party transactions
SEBI (Listing Obligations and Disclosure Requirements) Indian market leaders.
adequacy as required under Section 134(3)(h) of the Companies Act
Regulations, 2015, a separate meeting of the Independent
Directors of the Company has been convened on 24th March The details in respect of internal financial control and their 2013 read with Rule 8(2) of the Companies (Accounts) Rules,
To highlight few achievements IOLCP filed four patents,
2022 to review the matters as laid down in the aforesaid adequacy are included in the Management Discussion & 2014 in Form No. AOC-2 is not applicable to the Company for
developed processes of various products using novel
Schedule and Regulations. Analysis, which forms part of this report. the financial year 2021-22 and hence does not form part of
technologies and filed DMFs & CEPs for six products in US
this report.
& Europe.
15. Directors’ Responsibility Statement 19. Corporate Governance
The Company has in place a system of Corporate Pursuant to the provisions of the Companies Act 2013 and
To the best of their knowledge and belief and according to 26. Statutory Auditors
Governance. A separate report on Corporate Governance SEBI Listing Regulations 2015, the Company has formulated
the information and explanations obtained by them, your Pursuant to the provisions of Section 139 of the Companies
along with Auditors’ Certificate regarding compliance of a Policy on Materiality of and Dealing with Related Party
Directors make the following statements in terms of Section Act, 2013 and the Rules framed thereunder, M/s Ashwani &
conditions of corporate governance set out by the Securities Transactions and the same is available on the Company’s
134(3)(c) of the Companies Act, 2013: Associates, Chartered Accountants, Ludhiana, Registration
and Exchange Board of India (SEBI) under Listing Regulations website www.iolcp.com.
No:000497N were appointed as statutory auditors of the
a. that in the preparation of the annual financial is annexed to this Annual Report.
24. Corporate Social Responsibility (CSR) Company from conclusion of 31st Annual General Meeting of
statements for the year ended 31st March 2022, the the Company held on 29th September 2018 till the conclusion
applicable accounting standards have been followed 20. Management Discussion and Analysis The Board has constituted a CSR Committee comprising
of the 36 th Annual General Meeting to be held in the
and that there was no material departures. In terms of the Regulation 34(2)(e) of SEBI (Listing Obligations of Mr Varinder Gupta as Chairman and Dr Sandhya Mehta,
year 2023.
and Disclosure Requirements) Regulations, 2015 Report Mr Vikas Gupta, Directors as its members. The report on the
b. that such accounting policies as mentioned in Note on Management Discussion and Analysis forms part of the Corporate Social Responsibility (CSR) initiatives undertaken
The Statutory Auditors’ Report on the accounts is self-
1 of the Notes to the Financial Statements have been Annual Report. by the Company during the year under review are set out in
explanatory and does not contain any qualifications,
selected and applied consistently and judgement and Annexure - 2 of this report in the format prescribed in the
reservations or adverse remarks. The Auditors have given an
estimates have been made that are reasonable and Companies (Corporate Social Responsibility Policy) Rules,
unmodified report.

27. Secretarial Audit Company is https://www.iolcp.com/investors/annual- The Vigil Mechanism Policy can be accessed at company’s 4. Neither the Managing Director nor the Whole-time
Pursuant to the provisions of Section 204 of the Companies returns website: www.iolcp.com Directors of the Company receive any remuneration or
Act, 2013 and the Companies (Appointment and commission from any of its subsidiaries.
Remuneration of Managerial Personnel) Rules, 2014, the 33. Loan, Guarantees or Investment Under Section 41. Business Responsibility Report
Board had appointed M/s B. K. Gupta & Associates, Practicing 186 of the Companies Act, 2013 In terms of Regulation 34(2)f of the SEBI Listing Regulations, 5. No significant or material orders were passed by the
Company Secretary for conducting secretarial audit of the The particulars of loans, guarantees and investments have the Business Responsibility Report (BRR) of your Company Regulators or Courts or Tribunals which impact the
Company. The Secretarial Audit Report is annexed herewith been provided in the notes of the financial statements. detailing initiatives undertaken by the Company on going concern status and Company’s operations
as Annexure - 3. environmental, social and governance front during the year in future.
34. Material Changes and Commitments under review, forms part of this Annual Report and is also
The Secretarial Audit report does not contain any available on the website of the Company at www.iolcp.com 6. No fraud has been reported by the Auditors to the
There have been no material changes and commitments
qualification, reservation or adverse remark. Audit Committee or the Board.
affecting the financial position of the Company which
occurred between the end of the Financial Year of the 42. Energy Conservation / Technology Absorption and
28. Secretarial Standard Foreign Exchange Earnings and Outgo 44. Acknowledgement
Company as on 31st March 2022 and the date of this report.
The Company has proper system in place to ensure the due Energy conservation continues to be an area of major The Directors wish to place on record their appreciation of
compliance with the provisions of the applicable secretarial 35. Significant and Material Orders Impacting emphasis in the Company. A statement giving details of the continuous support received by the Company from the
standards issued by the Institute of the Company Secretaries Operations of Company in Future conservation of energy, technology absorption, foreign investors, Bankers, Central/State Government Departments,
of India. exchange earnings and outgo, in accordance with Section its Customers and Suppliers.
There has been no significant or material orders passed by
any Regulators / Court or Tribunals impacting the going 134 of the Companies Act, 2013 read with Rule 8(3) of the
29. Cost Records & Cost Auditors Companies (Accounts) Rules, 2014 is annexed hereto as We also place on record our sincere appreciation of the
concern status and future operations of your Company.
Annexure – 5 and forms part of the Report. contribution made by the employees at all levels. Our
Pursuant to the provisions of Section 148 of the Companies
consistent growth is made possible by their devout, sincere
Act, 2013 the Company is required to maintain the cost 36. Reporting of Frauds
43. General and unstinted services.
records, which are subject to the audit by Ramanath Iyer & There have been no instances of fraud reported by the
Co., Cost Accountants, New Delhi, the Cost Auditors of the Statutory Auditors of the Company under Section 143(12) of Your Directors state that no disclosure or reporting is
Further, the Board expresses its gratitude to you as Shareholders
Company for FY 2021-22. the Companies Act, 2013 and the Rules framed thereunder required in respect of the following items as there were no
for the confidence reposed in the management of the Company
either to the Company or to the Central Government. transactions on these items during the year under review:
The Board of Directors of the Company, on the
recommendations of Audit Committee, approved the re- 1. Issue of equity shares with differential rights as to For and on behalf of the Board
37 Industrial Relations
appointment of M/s Ramanath Iyer & Co., Cost Accountants, dividend, voting or otherwise.
Industrial relations remained cordial and harmonious
New Delhi as Cost Auditors of the Company for conducting Sd/- Sd/-
throughout the year under review.
the Cost audits for FY 2022-23. A resolution seeking approval 2. Change in the nature of business of the Company. Varinder Gupta Rajender Mohan Malla
of the Shareholders for ratifying the remuneration payable to Managing Director Chairman
38. Safety, Health and Environment
them for FY 2022-23 is provided in the Notice of the ensuing 3. The Company does not have any scheme of provision of DIN-00044068 DIN-00136657
Annual General Meeting. Safety is Company’s top priority with regard to employment money for the purchase of its own shares by employees
and it is encouraging safety measures at all levels of Place: Ludhiana
or by trustees for the benefit of employees.
operations especially at the floor level. Regular training Dated: 30th May 2022
30. Particulars of managerial remuneration and
related disclosures programmes are being conducted to bring in awareness of
safety at workplace.
Disclosures relating to remuneration and other details as
required under Section 197(12) of the Act read with Rule
39. Prevention of Sexual Harassment Policy and
5(1) of the Companies (Appointment and Remuneration
Disclosure as per the Sexual Harassment of
of Managerial Personnel) Rules, 2014 are provided in
Women at Workplace (Prevention, Prohibition and
‘Annexure – 4’.
Redressal) Act, 2013
In terms of the provisions of Section 197(12) of the Act read In line with the requirements of the Sexual Harassment of
with Rules 5(2) and 5(3) of the Companies (Appointment Women at Workplace (Prevention, Prohibition and Redressal)
and Remuneration of Managerial Personnel) Rules, 2014, Act, 2013, the Company has set up a Complaints Committees
as amended, a statement showing the names and other at its workplace. The Company has zero tolerance towards
particulars of the employees drawing remuneration in excess sexual harassment at workplace and accordingly adopted
of the limits set out in the said rules forms part of this Report. a policy on prevention, prohibition, and redressal of sexual
harassment in pursuance of the provisions of the Sexual
31. CEO & CFO Certification Harassment of Women at Workplace (Prevention, Prohibition
and Redressal) Act, 2013. During the year under review,
In accordance with the provisions of the SEBI Listing
the Company received only one complaints of sexual
Regulations the Executive Director & CEO and Chief Financial
harassment, which has been addressed / resolved by taking
Officer of the Company have submitted the relevant
appropriate action.
certificate for the Financial Year 2021-22 to the Board of
Directors.
40. Vigil Mechanism
32. Annual Return In pursuant to the provisions of Section 177(9) & (10) of the
Companies Act, 2013, a Vigil Mechanism for directors and
Pursuant to the provisions of Section 134(3)(a) of Companies
employees to report genuine concerns has been established.
Act, 2013, the web address of the Annual Return of the

ANNEXURE-1 ANNEXURE-2
Form AOC-1
(Pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of Companies (Accounts) Rules, 2014)
Statement containing salient features of the financial statement Annual Report on Corporate Social Responsibility (CSR) activities for the
of subsidiaries/associate companies/joint ventures Financial Year 2021-22
Part “A”: Subsidiaries (Pursuant to Section135 of the Companies Act, 2013)
(Information in respect of each subsidiary to be presented with amounts in ` Lakh) 1. A brief outline of the Company’s CSR Policy: ● romoting education, including special education and
P
Sl. No. Particulars Details
IOL Chemicals and Pharmaceuticals Limited (IOLCP) believes employment enhancing vocation skills especially among
IOL-Foundation in corporate excellence and social welfare. This corporate children, women, elderly, and the differently abled and
1. Name of the subsidiary (incorporated under Section 8 of Companies Act, 2013 to promote and livelihood enhancement projects;
philosophy is the force for integrating Corporate Social
support CSR activities)
Responsibility (CSR) into IOLCP values, culture, operation and
2. The date since when subsidiary was acquired Since incorporation on 15th March 2022 ● Promoting gender equality, empowering women, setting
business decisions at all levels of the organization. Being a
Reporting period for the subsidiary concerned, if different from the up homes and hostels for women and orphans; setting up
3. From 15th March 2022 to 31st March 2022 responsible corporate citizen, IOLCP has a value system of
holding company’s reporting period old age homes, day care centres and such other facilities
giving back to society and improving life of the people and
Reporting currency and Exchange rate as on the last date of the for senior citizens and measures for reducing inequalities
4.
relevant financial year in the case of foreign subsidiaries
INR the surrounding environment.
faced by socially and economically backward groups;
5. Share capital 10.00
The Company’s CSR initiatives are inspired by the opportunity
6. Reserves & surplus 200.66 ● Ensuring environmental sustainability, ecological
to contribute to a more secure and sustainable future. IOLCP
7. Total assets 210.97 balance, protection of flora and fauna, animal welfare,
believes that the corporate strategy which embraces social
8. Total Liabilities 0.31 agroforestry, conservation of natural resources and
developments as an integral part of the business activities
9. Investments -
ensure long term sustainability of business enterprises. With maintaining quality of soil, air and water including
10. Turnover 201.00 this belief, the Company is committed to make substantial contribution to the Clean Ganga Fund set-up by the
11. Profit before taxation 200.66 improvements in the social framework of the nearby Central Government for rejuvenation for river Ganga;
12. Provision for taxation - community. Looking at the social problems which the
13. Profit after taxation 200.66 country faces today, the contribution by any corporate may ● Protection of national heritage, art and culture including
14. Proposed Dividend - look tiny. However, we believe that every such contribution restoration of buildings and sites of historical importance
15. % of shareholding 100 shall bring a big change in our society. and works of art; setting up public libraries; promotion
and development of traditional arts and handicrafts;
Note: Part B of the Annexure relating to Associate Companies and Joint Ventures is not applicable as the Company has no associate In line with the provisions of the Companies Act, 2013 (“the
companies or joint ventures as on 31st March 2022. Act”) and on the recommendations of the Corporate Social ● Measures for the benefit of armed forces veterans, war
Responsibility (CSR)Committee, the Board of Directors has, in widows and their dependents; vii. Training to promote
For and on behalf of the Board of Directors its meeting held on 14th November 2018, approved the CSR rural sports, nationally recognised sports, paralympic
Policy of the Company. Detailed CSR Policy of the Company sports and Olympic sports;
Sd/- Sd/- Sd/- has been uploaded on the website of the Company at https://
Varinder Gupta Vikas Gupta Dr Sanjay Chaturvedi www.iolcp.com/mycgi/iolcp-com/upload_file/CSR_Policy. ● Contribution to the Prime Minister’s National Relief Fund
Managing Director Executive Director Executive Director & CEO pdf or any other fund set up by the Central Government for
DIN-00044068 DIN-07198109 DIN-08927689 socio-economic development and relief and welfare
CSR Activates: of the Scheduled Castes, the Scheduled Tribes, other
backward classes, minorities and women;
The identified focus areas for the Company are:
Sd/- Sd/-
Abhay Raj Singh Pardeep Kumar Khanna ● Contributions or funds provided to technology
●
Eradicating hunger, poverty and malnutrition,
VP & Company Secretary Chief Financial Officer incubators located within academic institutions which
promoting preventive health care and sanitation
are approved by the Central Government;
including contribution to the Swachh Bharat Kosh set-
Place : Ludhiana up by the Central Government for the promotion of
Date : 30th May 2022 ● Rural development projects;
sanitation and making available safe drinking water:
● Slum area development

2. Composition of the CSR Committee: (b) Details of CSR amount spent against ongoing projects for the financial year:
The Board of Directors have constituted a CSR Committee comprising of three directors, two being executive directors and one
independent director. The CSR Committee oversees the Company’s CSR initiatives under the overall supervision and guidance of Amount Mode of Implementation
the Board of Directors. Location of the Amount
transferred Mode of - Through Implementing
project. Amount spent
Item from the to Unspent Imple- Agency
Local allocated in the
Sl. list of activities Project CSR Account men-
Number of meetings of CSR Number of meetings of Name of the Project area for the current
Designation / nature of No. in Schedule VII duration for the tation
Sl.No Name of Directors committee held during the CSR committee attended (Yes/No) project financial
directorship to the Act. project as - Direct CSR Registra-
year during the year State District (in crore) Year (in Name
per Section (Yes/No) tion number
crore)
135(6) (in `)
1 Mr. Varinder Gupta Managing Director, Chairman of CSR Committee 3 3
2 Mr. Vikas Gupta Executive Director, member of CSR Committee 3 3 1 Upgrading the Preventive Yes Punjab, 2 year 1.50 0 1.50 No CMC CSR0007487
Physiology Block in Health Care Ludhiana hospital
3 Dr. Sandhya Mehta Independent Director, member of CSR Committee 3 3 CMC, Hospital, Ludhiana
2 Developing the Preventive Yes Punjab, 1 Year 0.27 0 0.27 Yes - -
3. web-link where Composition of CSR committee, CSR Policy and CSR projects approved by the board are Infrastructure and solar Health Care Barnala
disclosed on the website of the company: panal of 50 KW at Civil
Composition of CSR committee, CSR Policy and CSR projects approved by the committee, which are available on our website Hospital Barnala
www.iolcp.com 3 Developing the Preventive Yes Punjab, 1 Year 0.04 0 0.04 Yes
Infrastructure in Health Care Barnala
4. Details of Impact assessment of CSR projects carried out in pursuance of sub-rule (3) of rule 8 of the Veterinary Hospital
Fategarh Channa
Companies (Corporate Social responsibility Policy) Rules, 2014, if applicable (attach the report): Not Applicable
4 Construction the floor at Animal Yes Punjab, 1 Year 0.08 0 0.08 Yes
sudhar Gaushala walfare Ludhiana
5. Details of the amount available for set off in pursuance of sub-rule (3) of rule 7 of the Companies (Corporate 5 Construction the shed, Animal Yes Punjab, 1 Year 0.12 0.04 0.08 Yes
Social responsibility Policy) Rules, 2014 and amount required for set off for the financial year, if any: Nil medicine and wheat walfare Barnala
straw Kamdhenu
gaushala Handiaya
6. Average net profit of the company as per section 135(5): ` 480.26 Crore
6 Construction of Langar Animal Yes Punjab, 1 Year 1.50 0 1.50 No Shree CSR00004665
Hall and incidental walfare Ludhiana Gow
7. (a) Two percent of average net profit of the company as per section 135(5): ` 9.61 Crore facilitation at Prachin Rakshni
Gaushala, Tibba Road, Sabha
(b) Surplus arising out of the CSR projects or programmes or activities of the previous financial years : Nil Ludhiana with Shree (Regd.),
Gow Rakshni Sabha
(c) Amount required to be set off for the financial year, if any: Nil (Regd.),
7 Pond cleaning Environmen- Yes Punjab, 3 Year 0.50 0.01 0.10 Yes
(d) Total CSR obligation for the financial year (7a+7b-7c): ` 9.61 Crore work in various tal sustaina- Barnala
villages(kotdunna, bility
8. (a) CSR amount spent or unspent for the financial year: Dhurkot,Pharwahi,
Pakho kalan )
Amount Unspent (in `)
8 Renovation of the school Promoting Yes Punjab, 1 Year 0.08 0.04 0.04 Yes
Total Amount transferred to Unspent CSR Amount transferred to any fund specified under Schedule VII as per infrastructure, providing education Ludhiana
Total Amount Spent for
Account as per section 135(6) second proviso to section 135(5) class furniture,
the Financial Year
(in crore) Amount developing the smart
Date of transfer Name of the Fund Amount Date of transfer
(in crore) classes and providing
5.50* 4.11 29.04.2022 - - - other facilities in Govt.
Primary Schools, Tajpur
*Includes ` 2.01 Crore transferred to IOL-Foundation during the year 2021-22 Bet School, at Ludhiana
9 Renovation of the Promoting Yes Punjab, 1 Year 0.08 0.00 0.08 Yes
school infrastructure, education Ludhiana
providing class
furniture, developing
the smart classes
and providing other
facilities in Govt. Primary
Schools, Bhattian Bet, at
Ludhiana
infrastructure, providing education Ludhiana
class furniture,
developing the smart
classes and providing
other facilities in Govt.
senior secondary School,
Ayali Khurd at Ludhiana

Amount
(c) Details of CSR amount spent against other than ongoing projects for the financial year:
Amount Mode of Implementation
Location of the transferred Mode of - Through Implementing
Amount spent Item from the Local Location of the Mode of implementation - Through
Item from the project. to Unspent Imple- Amount spent Mode of
Local allocated in the Agency Sl. list of activities area project. implementing agency
Sl. list of activities Project CSR Account men- Name of the Project for the project implementation
Name of the Project area for the current No. in schedule VII (Yes/ CSR registration
No. in Schedule VII duration for the tation State. District. (in Crore) - Direct (Yes/No) Name.
(Yes/No) project financial to the Act. No). number
to the Act. project as - Direct CSR Registra-
State District (in crore) Year (in Name
per Section (Yes/No) tion number 1. Education – construction Promoting Yes Punjab Barnala 0.99 Yes - -
crore)
135(6) (in `) and renovation of school education and
locations, provide among Ludhiana
technical equipment for children
infrastructure, providing education Ludhiana
smart education
class furniture,
developing the smart 2. Preventive health care & Preventive Yes Punjab Barnala 1.05 Direct and Nishkam Sewa Samiti CSR00005486,
classes and providing sanitation, Eradicating health care & and through (Regd), Help Care CSR00008265
other facilities in Govt. hunger and poverty sanitation Ludhiana Agency Society and Ram Bhag and
senior secondary School, Committee, Barnala CSR00005443
Haibowal Khurd at 3 Disaster Relief Eradicating Yes Punjab Barnala 0.44 Direct and Utkarsh Global CSR00003183
Ludhiana hunger, and through Foundation
poverty and Ludhiana Agency
12 Renovation of the school Promoting Yes Punjab, 1 Year 0.10 0.00 0.10 Yes malnutrition
infrastructure, providing educationand Ludhiana
4 Community Medicine Yes Punjab Ludhiana 0.12 Yes - -
class furniture, halthcare
Development provide Jammu and
developing the smart
Community Katra
classes and providing
Mentally
other facilities in Govt.
Retarded
senior secondary
Home and
School and Dispensary
other facilities
Ladhowal at Ludhiana
5 Animal welfare Animal welfare Yes Punjab Barnala 0.03 Direct and Shri Gow Rakshani CSR00004665
13 Renovating the Promoting Yes Punjab, 1 Year 0.06 0.00 0.06 Yes and through Sabha (Regd.)
infrastructure and New education Barnala ludhiana Agency
washroom at Govt Jumla 5 Plantation, solor environmental Yes Punjab Barnala 0.50 Yes - -
Malkan School, Barnala lighting , cleaning in sustainability
villages for restoration to
14 Renovating the Mid day Promoting Yes Punjab, 1 Year 0.06 0.00 0.06 Yes environment
meal shed and sitting education Barnala 6 Promoting Sports Promoting Yes Punjab Punjab 0.27 Direct and Chandigarh Badminton CSR00017510
at Govt High School Sports Chan- Chandi- through Association
Sanghera digarh garh Agency
Total 3.40
15 Renovating the Promoting Yes Punjab, 1 Year 0.08 0.00 0.08 Yes
infrastructure at Govt. education Barnala
Primary school Bilaspur- (d) Amount spent in Administrative Overheads : 0.005
Dhaula (e) Amount spent on Impact Assessment, if applicable : Nil
Total 4.59 0.09 4.11 (f) Total amount spent for the Financial Year (8b+8c+8d+8e): ` 5.50 Crore
(g) Details of excess amount for set off if any
b1) Details of CSR amount spent against ongoing projects with IOL-Foundation for the financial year:
Mode of Implementation Sl. No. Particular Amount (in Crore)
Amount Amount Amount transferred
Item from the Local Location of the Pro- - Through Implementing
project. allocated spent in to Unspent CSR Mode of (i) Two percent of average net profit of the company as per section 135(5) 9.61
Sl. Name of the list of activities area ject Agency
for the the current Account for the Implementation -
No. Project. in Schedule VII (Yes/ dura-
project (in financial Year project as per Sec- Direct (Yes/No).
(ii) Total amount spent for the Financial Year 5.50
to the Act. No) State District tion. CSR Registra-
crore). (in crore). tion 135(6) (in `) Name (iii) Excess amount spent for the financial year [(ii)-(i)] Nil
tion number.
1 Upgrade the Promoting Yes Punjab 2year 1.01 0 0 No IOL-Foun- CSR00026698 (iv) Surplus arising out of the CSR projects or programmes or activities of the previous financial years, if any Nil
Schools education Barnala and dation (v) Amount available for set off in succeeding financial years [(iii)-(iv)] Nil
among Ludhiana
children
9. (a) Details of Unspent CSR amount for the preceding three financial years:
2 Upgrade the Preventive Yes Barnala and 2 Year 1.00 0 0 No IOL-Foun- CSR00026698
Healthcare health care Ludhiana dation Amount spent Amount transferred to any fund specified under
Preceding Amount transferred to Amount remaining to
facilities Sl. in the reporting Schedule VII as per section 135(6), if any.
Financial Unspent CSR Account under be spent in succeeding
No. Financial Year (in
Total 2.01* 0 0 Year. section 135 (6) (in ` crore) Name of the Fund Amount (in `) Date of transfer financial years. (in`)
` crore)
*Transferred to IOL-Fundation during the FY 2021-22 for implementing the respective projects. 1. 2020-21 2.93 2.66 - - - 0.27
2. 2019-20 - - - - - -
3. 2018-19 - - - - - -
Total 2.93 2.66 - - - 0.27

(b) Details of CSR amount spent in the financial year for ongoing projects of the preceding financial year(s): ANNEXURE – 3
Item from Amount Cumulative SECRETARIAL AUDIT REPORT
Amount
the list of Location of the spent in amount spent Status of FOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2022
allocated
Sl. activities in Local area project. Project the current at the end the project
Name of the Project. for the
No. Schedule (Yes/No) duration.
project (in
financial of reporting Completed/ [Pursuant to Section 204(1) of the Companies Act, 2013 and RuleNo.9 of the Companies
VII to the Year (in Finacial year. Ongoing (Appointment and Remuneration of Managerial Personnel) Rules, 2014]
State District crore).
Act. crore). (in Crore)
1 Cardiology lab in CMC Preventive Yes Punjab, 1 year 1.60 1.62 1.62 Completed To a. The Securities and Exchange Board of India (Substantial
Hospital Health Ludhiana Acquisition of Shares and Takeovers) Regulations, 2011;
Care The Members
2 Developing the Preventive Yes Punjab, 1 Year 0.58 0.57 0.57 Completed IOL Chemicals and Pharmaceuticals Limited b.
The Securities and Exchange Board of India
Infrastructure and and Health Barnala Vill. & P.O - Handiaya, Fatehgarh Chhanna Road, (Listing Obligations and Disclosure Requirements)
providing Oxygen Plant Care
Tehsil & District – Barnala, Regulations, 2015;
in Civil Hospital
Sangrur, Punjab-148107.
3 Renovation of Promoting Yes Punjab, 1 Year 0.10 0 0.0 Ongoing c. The Securities and Exchange Board of India (Prohibition
infrastructure of education Ludhiana
We have conducted the Secretarial Audit of the compliance of Insider Trading) Regulations, 2015;
Govt. Primary School
.Kakkowal of applicable statutory provisions and the adherence to good
corporate practices by IOL Chemicals and Pharmaceuticals d. The Securities and Exchange Board of India (Issue of
4 Renovation of Promoting Yes Punjab, 1 Year 0.15 0.10 0.10 Ongoing
infrastructure of Govt. education Ludhiana Limited (hereinafter called the Company). Secretarial Audit was Capital and Disclosure Requirements) Regulations,
Senior secondary smart conducted in a manner that provided to us a reasonable basis for 2018; (Not applicable during the audit period)
SchoolMundiyakalan evaluating the corporate conducts/statutory compliances and
5 Renovation of Promoting Yes Punjab, 1 Year 0.15 0.16 0.16 Completed expressing our opinion thereon. e. The Securities and Exchange Board of India (Share Based
infrastructure of education Ludhiana Employee Benefits and Sweat Equity) Regulations, 2021;
Chanan Devi, Govt. Based on our verification of the Company’s books, papers, minute (Not applicable during the audit period)
Kanya High School, books, forms and returns filed and other records maintained
Salem Tabri by the company and also the information provided by the f. The Securities and Exchange Board of India (Issue and
6 Renovating the Promoting Yes Punjab, 1 Year 0.15 0 0.0 Ongoing Company, its officers, agents and authorized representatives Listing of Debt Securities) Regulations, 2008; (Not
infrastructure of education Ludhiana during the conduct of secretarial audit, we hereby report that in applicable during the audit period)
HVH Mental Illness, our opinion, the company has, during the audit period covering
SpeciallyabledJamalpur
the financial year ended on 31st March, 2022 complied with the g. The Securities and Exchange Board of India (Registrars
7 Renovation the Promoting Yes Punjab, 1 Year 0.12 0.12 0.14 Completed statutory provisions listed hereunder and also that the company to an Issue and Share Transfer Agents) Regulations, 1993
infrastructure education Barnala
has proper board processes and compliance mechanism in regarding the Companies Act and dealing with client;
and Library in
GovtJumlaMalkan
place to the extent, in the manner and subject to the reporting
School made hereinafter. h. The Securities and Exchange Board of India (Delisting
of Equity Shares) Regulations, 2021; (Not applicable
8 Renovating the Promoting Yes Punjab, 1 Year 0.10 0.09 0.09 Completed
infrastructure and education Barnala We have examined the books, papers, minute books, forms and during the audit period) and
science lab at Govt. returns filed and other records maintained by IOL Chemicals and
Senior secondary (Girls) Pharmaceuticals Limited (“the Company”) for the financial year i. The Securities and Exchange Board of India (Buyback of
School, Barnala ended on 31st March, 2022 according to the provisions of: Securities) Regulations,2018; (Not applicable during the
Total 2.95 2.66 2.68 audit period)
i. The Companies Act, 2013 (the Act) and the rules
10. In case of creation or acquisition of capital asset, furnish the details relating to the asset so created or acquired through made thereunder; vi. We have relied on the representation made by the
CSR spent in the financial year: Not Applicable Company & its Officers for system and mechanism formed
ii. The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and by the Company for compliances under other applicable
the rules made thereunder; Acts as Environmental Laws & Labour Laws as per list
11. Specify the reason(s), if the company has failed to spend two per cent of the average net profit as per section 135(5): attached herewith.
During the financial year 2021-22, some of the CSR projects were identified in the later part of the year, as due care is taken in iii. The Depositories Act, 1996 and the Regulations and Bye-laws
identifying the projects to ensure effective contribution to the society through deserving projects, directly and indirectly, therefore framed thereunder; We have also examined compliance with the applicable clauses of
the full amount of CSR as allocated to such ongoing projects could not be spent within the same financial year. The Company has the following:
deposited the unspent amount allocated to such ongoing projects in a separate bank account and such unspent amount shall be iv Foreign Exchange Management Act, 1999 and the rules
spent on above said ongoing CSR projects within three years from the date of transfer of such unspent amount to separate bank and regulations made thereunder to the extent of Foreign i. Secretarial Standards issued by The Institute of
account. Direct Investment, Overseas Direct Investment and External Company Secretaries of India;
Commercial Borrowings; (Not applicable during the audit
For and on behalf of the Board period) ii. The Listing Agreements entered into by the Company
with BSE Limited and National Stock Exchange of
Sd/- v The following Regulations and Guidelines prescribed under India Limited;
Varinder Gupta the Securities and Exchange Board of India Act, 1992 (‘SEBI
Date: 30th May 2022 Managing Director Act’):- During the period under review the Company has complied
Place: Ludhiana Chairman of the CSR Committee with the provisions of the Act, Rules, Regulations, Guidelines,
DIN 00044068 Standards, etc. mentioned above.


We further report that the Board of Directors of the Company is Note: This report is to be read with our letter of even date Annexure:-A
duly constituted with proper balance of Executive Directors, Non- which is annexed as Annexure A and forms an integral part To
Executive Directors and Independent Directors. The changes in of this report.
the composition of the Board of Directors that took place during The Members,
the period under review were carried out in compliance with the IOL Chemicals and Pharmaceuticals Limited
LIST OF LABOUR LAWS AND ENVIRONMENTAL LAWS
provisions of the Act. Vill. & P.O - Handiaya, Fatehgarh Chhanna Road,
WHICH HAVE BEEN VERIFIED DURING AUDIT PERIOD
Tehsil & District – Barnala
Adequate notice is given to all directors to schedule the board List of Labour Laws
Sangrur, Punjab- 148107
meetings, agenda and detailed notes on agenda were sent seven Factories Act, 1948
days in advance, and a system exists for seeking and obtaining Industrial Disputes Act, 1947 1. Maintenance of secretarial record is the responsibility of the management of the Company. Our responsibility is to express an
further information and clarifications on the agenda items before The Payment of Wages Act, 1936 opinion on these secretarial records based on our audit.
the meeting and for meaningful participation at the meeting. The Minimum Wages Act, 1948
Employee’s State Insurance Act 1948 2. We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the correctness of
Majority decision is carried through while the dissenting members’ Employee’s Provident Fund and miscellaneous Provisions Act 1952 the contents of the secretarial records. The verification was done on the random test basis to ensure that correct facts are reflected
views were captured and recorded as part of the minutes. The Payment of Bonus Act, 1965 in secretarial records. We believe that the processes and practices, we followed provide a reasonable basis for our opinion.
The Payment of Gratuity Act 1972
We further report that there are adequate systems and processes The Contract Labour (Regulation and Abolition) Act, 1970 3. We have not verified the correctness and appropriateness of financial records and Books of Accounts of the Company.
in the company commensurate with the size and operations of the The Maternity Benefit Act 1961
company to monitor and ensure compliance with applicable laws, The Child Labour (Prohibition and regulation) Act 1986 4. Where ever required, we have obtained the Management representation about the compliance of laws, rules and regulations and
rules, regulations and guidelines. The Industrial Employment (Standing Orders) Act 1946 happening of events etc.
The Apprentices Act, 1961
We further report that during the audit period the company The Equal Remuneration Act 1976 5. The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the responsibility of
has not made any decisions which are having major bearing in The Employment Exchange (Compulsory Notification of management. Our examination was limited to the verification of procedures on random test basis.
the Company’s affair in pursuance of above referred laws, rules, Vacancies) Act 1956
regulation, guidelines, standards, etc. 6. The Secretarial Audit report is neither an assurance as to the future viability of the company nor of the efficacy or effectiveness
List of Environmental Laws
with which the management has conducted the affairs of the Company.
For B.K. Gupta & Associates Environment (Protection) Act, 1986
Company Secretaries The Public Liability Insurance Act, 1991
For B.K. Gupta & Associates
Water (Prevention and Control of Pollution) Act, 1974
Company Secretaries
Sd/- Air (Prevention and Control of Pollution) Act, 1981
(CS Bhupesh Gupta) Hazardous and Other Wastes (Management and Transboundary
Sd/-
FCS No.: 4590 Movement) Rules, 2016
(CS Bhupesh Gupta)
Place: Ludhiana CP No.: 5708 Date : 30th May 2022 FCS No.:4590
Date: 30th May 2022 UDIN: F004590D000425527 Place: Ludhiana CP No.:5708

ANNEXURE – 4 ANNEXURE – 5
A. Information Pursuant to Section 197(12) of the Companies Act, 2013 read with Rule 5(1) of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014 Information as per Section 134(3)(m) of the Companies 2. Step taken by Company for utilizing alternate
Act, 2013 (“the Act”) read with Rule 8(3) of the Companies sources of energy
i. The ratio of the remuneration of each Director to the median remuneration of the employees of the Company for the Financial
(Accounts) Rules, 2014 and forming part of the Directors’
Year 2021-22 (FY 22) and the percentage increase in remuneration of each Director, Chief Financial Officer & Company
Report for the financial year ended 31st March 2022. We have not used any alternative source of energy, but
Secretary during the FY22 are as under:
we have maintained and increased the consumption of
I. CONSERVATION OF ENERGY
biomass in the form of Rice Husk and paddy husk in our
Name of Director/ Key Remuneration Ratio of remuneration 1. Step taken or impact on conservation of energy. boiler from the previous year.
Designation % increase in remuneration
Managerial Personnel (` in crore) to median remuneration of employee
Mr Varinder Gupta Managing Director 6.84 14.00 204.18 a. In 80 TPH Boiler, we have enhanced the efficiency
3. Capital investment on energy conservation
Mr Vikas Gupta Executive Director 2.05 14.00 61.19 from 79.7% to 81.08% by making some operational
equipment’s
changes and managing air fuel ratios, replacing
Dr Sanjay Chaturvedi Chief Executive Officer 2.52 Not Applicable* 75.22
some of its components such as Air preheater
Mr Pardeep Kumar Khanna Chief Financial Officer 1.19 13.88 35.52 Ordering of 2 no’s of efficient turbines in replacement
& pollution control equipment. These changes
Mr Abhay Raj Singh Vice President and Company 0.60 25.00 17.91
to existing in efficient turbines are major capital
resulted direct saving in the fuel and improved
Secretary investments have been made during the financial year
combustion efficiency. Further we have also
ended 31st March 2022.
* Dr Sanjay Chaturvedi was appointed as Chief Executive Officer of the Company w.e.f 16th March 2021 rectified the pollution control equipment which
helps us in increasing the cogen sustainability
II. TECHNOLOGY ABSORPTION
ii. The maiden remuneration of employees was increased by 11.8% and the median salary of employees for the FY 2021-22 was towards environment norms.
` 3.35 Lakh. 1. Efforts made towards technology absorption
b. Planning the installation of 4.225 MW efficient back
iii. The number of permanent employees on the rolls of the Company was 2316 as on 31st March 2022. pressure turbine in place of existing condensing The Company has taken various steps in its Research and
cum extraction turbine having similar carbon Development centre, the mains are as follows:
iv Percentile increase made in the salaries of employees other than the managerial personnel in the last financial year was footprints. The new turbine will be able to produce
13.67% and average increase in salary of managerial personnel (Managing Director and Whole-time directors) was 11.45%. approx. 625 KW more power with 8 TPH of steam. a. The Company’s efforts have been successful for
translation of 5 APIs and two advanced intermediates
v. It is hereby affirmed that the remuneration paid is as per the Nomination & Remuneration Policy of the Company. c. Planning to install efficient 13 MW turbine in place from R&D to commercial validation phase for different
of existing turbine that will increase the power to therapeutic areas.
B. Details pertaining to remuneration as required under Section 197(12) of the Companies Act, 2013 read with steam ratio from 119 KWH/MT to 150 KWH/MT
Rule 5(2) & (3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 (approx. 55000 units more per day). b. A specialized tech transfer team created and a kilo lab
i. Statement containing the particulars of top ten employees in term of remuneration drawn and employees who are attached to pilot plant for ensured the first-time right
in receipt of aggregate remuneration not less than rupees one crore and two lakh during the FY 2020-21 or not d. Shifting of noncritical load on a single transformer approach. Due to these ventures, R&D team succeeded
less than rupees eight lakh and fifty thousand rupees per month (if employed for part of the FY 2020-21) to increase /decrease the load on turbine according in translating transfer of technologies right on time.
to steam /power requirement thereby reducing the
Full Name, Designation, Remuneration received (` in crore), Qualifications, Experience (Years), Date of Commencement of
steam venting losses. This will save DM water loss in c.
Paracetamol, Quetiapine, Losartan, Allopurinol,
employment, Age (Years), Last Employment, %age of equity shares held:
environment & fuel saving. Apixaban were moved to commercial/validation phases
by a systematic gate clearance mechanism.
Mr Varinder Gupta, Managing Director, 6.84, Higher Secondary, 36, 29/09/1986, 59, First Employment, 2.10%; Dr Sanjay
e. CFL lights has been replaced by LEDs, thereby
Chaturvedi, CEO, 2.52, M.B.A. (Markting) PGD. (International Marketing), 30, 01/08/2012, 52, Arch Pharmalabs Limited, 0.00%;
resulting saving to 32 units of electricity per day. d. In addition to the commercial validations, a strong
Mr Vikas Gupta, Executive Director, 2.05, BSc. (Hons.) in Business Management from Kings College London, 9, 20/07/2013, 30,
pipeline of 5 products built-in by completing the
First Employment, 0.00%; Mr Kushal Kumar Rana, Director (Works), 1.20, M.SC., 31, 11/04/2005, 52, Morepen Laboratories,
f. In IBB, plant optimization has been done to achieve laboratory work. To quote few: Irbesartan, Valsartan,
0.00%; Mr Pardeep Kumar Khanna, Chief Financial Officer, 1.19, M.COM., 27, 23/12/1995, 53, First Employment, 0.01%;
the monthly production targets by running Vildagliptin, Sitagliptin etc.
Mr Kamlesh Jayantilal Ranbhan, President, 1.15, PHD, 28, 10/04/2017, 57, Arch Pharmalabs Limited, 0.00%; Mr Gopal Singla,
the plant on full load & reducing the number of
President, 1.13, B.E. (Instrumentation), 24, 01/04/2007, 46, Indian Acrylics Ltd, 0.00%; Mr Damandeep Singh, President, 1.09,
working days, which eventually leads to reduction e. IOL has substantially invested new technologies such
PHD, 24, 23/10/1997, 48, First Employment, 0.02%; Mr Lokesh Dhawan Vice President, 0.79, B.E. (ELECTRONICS & COMM.), 47,
in power norms. continuous flow reactors and enzyme reactions in place
27/10/2014, 26, Shri Lakshmi Cotfin Ltd, 0.00%; Mr Krishna Mukund Kamath, Sr. General Manager, 0.79, B.E. (Chemical), 27,
of hazardous chemical usage. These tools are relatively
20/08/2018, 52, Tera Pharma, 0.00%; Mr Jagdish Goel*, President, 0.76, M. Sc., 31, 06/12/2011, 51, Glenmark Generics Ltd, 0.00%;
new to the country.
Mr Nikhil Gupta*, President, 0.25, PGDPM&IR, 24, 06/01/2022, 48, Jindal Steel & Power, 0/00%
a. There was no other employee, except mentioned in (i) above who employed throughout financial year 2021-22 was receipt of
remuneration not less than one crore and two lakh.
b. None of the above employee is a relative of any director, except Mr Vikas Gupta (Son of Mr Varinder Gupta, Managing Director)
c. There was no employee who had received remuneration in excess of that drawn by the Managing Director or Wholetime
director and hold 2% of the equity shares of the Company.
d. *Indicates employees for the part of the FY 2021-22.

Directors’ Report (Contd.) Corporate Governance Report

FY 2021-22
2. Benefits derived like product improvement, cost 3. Imported technology (imported during the last Your Company confirms the compliance of Corporate Governance as contained in the Securities Exchange Board of India (Listing
reduction, product development or import three years reckoned from the beginning of the Obligations and Disclosure Requirements) Regulations, 2015, (hereinafter referred as SEBI (LODR) Regulations) details of which are
substitution financial year): N/A. given below:
a. Process improvement is a continuous activity at Expenditure incurred on Research and Development
IOL. The aim of this is to bring the high quality, safe, during the financial year ended 31st March 2022: 1. A brief statement on company’s philosophy on code of governance
robust, and affordable products to market. Our corporate governance is a foundation of our value system encompassing our culture, policies and relationships with our
(` in crore) stakeholders. Integrity and transparency are key factors to our corporate governance to ensure that we gain and retain the trust of
b. Few such efforts resulted in reduction of use of 5% Capital 4.71 our stakeholders at all times.
of dimethyl amine hydrochloride in manufacturing Revenue 11.11
of Metformin - which accounts for >1000 kg/year. The company’s philosophy on Corporate Governance is based on following principles:
Total 15.82
c. R&D developed a robust process for BCFI, which is a i. Composition of the Board to add value
key starting material for Losartan. III. Foreign Exchange Earnings & Outgo during the financial
year ended 31st March 2022: ii. Promote ethical and responsible decision-making
d. Reaction hours were brought down substantially in (` in crore)
Clopidogrel final API process. Owing to this activity, iii. Safeguard integrity in financial reporting
Used 823.77
manufacturing time cycle reduced by one and half
day. Add on to this, aqueous washings decreased Earned 483.77 iv. Make timely and balanced disclosures
to reduce the burden on fresh water use and ETP.
v. Recognise and manage business risks
vi. Respect the rights of the shareholders
vii Recognise the legitimate interest of the stakeholders
viii. Legal and statutory compliances in letter and spirit
At IOL, our strategies are directed towards driving valuable and meaningful growth year after year while also creating lasting value
for our investors.
2. Board of Directors:
a) Composition of the Board:
Composition of the board, number of directorships held, chairmanship & membership of the committees and shareholding in
company are as given below:
Shareholding in
No. of Directorship No. of Committees(2)
Name of the Director and DIN Category Company
held(1)
Chairmanship Memberships
Mr Rajender Mohan Malla Chairman & 10 4 1 -
DIN: 00136657 Independent Director
Mr Varinder Gupta Managing Director 6 - 1 11,96,965
DIN: 00044068
Mr Vikas Gupta Executive Director 6 - 2 -
DIN: 07198109
Mr Kushal Kumar Rana Director (Works) 1 - - -
DIN: 09189020
Mr Harpal Singh Independent Director 4 1 - -
DIN: 06658043
Dr Sandhya Mehta Independent Director 1 1 1 -
DIN: 06954964
1. Including the Company.
2. Board Committees for this purpose only includes Audit Committee and Stakeholders’ Relationship Committee.
Note: There is no inter-se relationship between the directors except that Mr Varinder Gupta is father of Mr Vikas Gupta.

Corporate Governance Report (Contd.)
Names of the listed entities where the person is a During the year 2021-2022, Audit Committee met four times Detail of remuneration paid to the Executive Directors 6. Stakeholders’ Relationship Committee
director and the category of directorship on 4th June 2021, 13th August 2021, 12th November 2021 and during the financial year 2021-2022 is given below: Stakeholders’ Relationship Committee consists of three
4th February 2022. There was no gap of more than 120 days Directors and chaired by the independent director viz.,
Name of the Director Names of the listed entities Category between any two consecutive meetings. (` in Lakhs)
Dr Sandhya Mehta (Chairperson), Mr Varinder Gupta and
Contri- Other per-
1. IOL Chemicals and Independent Mr Vikas Gupta as on 31st March 2022. Terms of reference
Mr Rajender Attendance record of Audit Committee members is Com- bution to quisites &
Pharmaceuticals Limited Director Name Position Salary mis- Provident allowanc- Total of Committee is in accordance with the provisions of SEBI
Mohan Malla
2. Waaree Technologies Independent given below: sion & other es and (LODR) Regulations and as specified under Section 178 of the
(Chairman)
Limited Director Funds Bonus Companies Act, 2013. During the year, one meeting was held
IOL Chemicals and No. of Meetings Mr Varinder Man- on 12th November 2021.
Mr Varinder Gupta Managing Director
Pharmaceuticals Limited Name of the Members Gupta aging 273.60 - 32.83 377.57 684.00
Held Attended
IOL Chemicals and Director
Mr Vikas Gupta Executive Director Mr Harpal Singh, Chairman 4 4 Attendance record of Stakeholders’ Relationship Committee
Pharmaceuticals Limited Mr Vikas Executive
Dr Sandhya Mehta 4 4 82.08 - 9.85 113.27 205.20 members is given below:
Mr Kushal Kumar IOL Chemicals and Gupta Director
Director (Works)
Rana Pharmaceuticals Limited Mr Vikas Gupta 4 3 Mr Kushal Director
IOL Chemicals and Independent Kumar (Works) 39.72 - 4.77 54.81 99.30 No. of Meetings
Mr Harpal Singh Name of the Members
Pharmaceuticals Limited Director 4. Nomination and Remuneration Committee Rana Held Attended
IOL Chemicals and Independent Dr Sandhya Mehta, Chairman 1 1
Dr Sandhya Mehta Nomination and Remuneration Committee consists
Pharmaceuticals Limited Director The Nomination and Remuneration Committee and the Mr Varinder Gupta 1 1
of three directors, all being Independent Directors viz.
Board of Directors have approved the appointment and Mr Vikas Gupta 1 0
Dr Sandhya Mehta (Chairman), Mr Rajender Mohan Malla and
b) Attendance of Directors at the Board Meetings and last remuneration of Dr Sanjay Chaturvedi for a period of 5
Mr Harpal Singh as on 31st March 2022. Terms of reference
Annual General Meeting: years with effect from 30 th May 2022 to 29 th May 2027 Mr Abhay Raj Singh, Vice President and Company Secretary is
of Committee is in accordance with the provisions of SEBI
subject to approval of members at the ensuing Annual the Compliance Officer for complying with the requirements
During the financial year 2021-22, the Board met 4 (Four) (LODR) Regulations and as specified under Section 178
General Meeting. Either party is entitled to terminate of SEBI Regulations and the Listing Agreements with the
times on 4th June 2021, 13th August 2021, 12th November 2021 of the Companies Act, 2013. Main terms of reference of
the employment by giving to the other party 3 months’ Stock Exchanges in India. Any investor / shareholder of the
and 4th February 2022. There was no gap of more than 120 the Committee includes determination of remuneration
notice in writing or any other period as may be decided by Company can contact him on the matters related with the
days between any two consecutive meetings. Attendance packages of the executive directors including remuneration
the Board. There is no separate provision for payment of company at 85, Industrial Area, ‘A’, Ludhiana, Phone: +91-
of the directors at Board Meetings and previous Annual policy. The Committee formulated the criteria and framework
severance fees. The remuneration consists of fixed as well as 161-2225531-35, Fax: +91-161- 2608784 and e-mail: investor@
General Meeting (AGM) held on 18th September 2021 is as for the performance evaluation of each director on the
variable components. iolcp.com.
given below: Board, including the executive and independent directors.
b) Independent Directors: Independent Directors have Shareholders’ complaints received, resolved and pending:
Board During the year, three meetings were held on 4th June 2021,
Attendance at not been paid any remuneration except sitting fees for
Name of the Director Meetings
last AGM 13th August 2021 and 4th February 2022. Detail of investors’ complaints/queries received and resolved
Attended attending each Board Meeting /Committee Meeting.
during the year 2021-22 are as under:
Mr Rajender Mohan Malla, Chairman 4 Yes Detail of sitting fees paid during the year 2021-2022 is
Attendance record of Nomination and Remuneration
Mr Varinder Gupta 4 Yes given below:
Committee members is given below: No. of Complaints /
Mr Vikas Gupta 3 Yes (` in Lakhs) Sr.
Nature of complaints / queries queries during the year
Mr Kushal Kumar Rana 4 Yes Fee paid Fees paid for No.
Total Fee Received Attended Pending
Dr Sandhya Mehta 4 Yes No. of Meetings Name of Directors for Board Committee
Mr Harpal Singh 4 Yes Name of the Members Paid 1 Transmission of shares 31 31 Nil
Held Attended Meetings Meetings
Dr Sandhya Mehta 1.00 3.50 4.50 2 Mandate 29 29 Nil
Dr Sandhya Mehta, Chairman 3 3
3. Audit Committee Mr Rajender Mohan Malla 3 3 Mr Rajender Mohan Malla 1.00 1.00 2.00
3 Loss/Issue of duplicate 52 52 Nil
shares certificate
Audit Committee consists of three directors, two being Mr Harpal Singh 3 3 Mr Harpal Singh 1.00 2.50 3.50 4 SEBI/Stock Exchange - - -
independent directors viz. Mr Harpal Singh (Chairman),
TOTAL 3.00 7.00 10.00 5 Change of Company Name 26 26 Nil
Dr Sandhya Mehta and one executive director viz. Mr Vikas 5. Remuneration Policy and details of Remuneration
Gupta as on 31st March 2022. Statutory Auditors, Internal 6 Change of Address 33 33 Nil
of Directors:
Auditors and Finance head are invited on the meetings of During the year 2021-22, the Company did not advance any 7 Split/Consolidation - - -
a) Executive Directors: The Company has a policy for the loan to any of its directors except advance for travel or other 8 Others 12 12 Nil
the Committee. Company Secretary acts as Secretary to
remuneration of Directors and Key Managerial Personnel purposes to discharge official duties in the normal course
the Committee.
(KMPs). The Company pays remuneration to its Executive of business. 7. Corporate Social Responsibility (CSR) Committee
Directors as approved by Nomination and Remuneration
The role of the Audit Committee is in accordance with the The Board of Directors have constituted a CSR Committee
Committee, Board of Directors, Members of the Company The Company, in compliance with the provisions of Section
SEBI (LODR) Regulations and the terms of reference specified comprising of three directors, two being executive
and approval of Central Government wherever is required. 197 of the Companies Act, 2013 and Listing Regulations, has
under Section 177 of the Companies Act, 2013. Primary directors viz. Mr Varinder Gupta, Mr Vikas Gupta and one
The Company entered into the agreement with executive not granted stock options to Independent Directors.
objective of the Committee is to monitor and provide independent director viz. Dr Sandhya Mehta as its members.
directors. No severance fees are payable to the Executive
effective supervision of management’s financial reporting Mr Varinder Gupta is the Chairman of the Committee. The CSR
Directors. All components of remuneration to the Executive The Company is making the payment to its executive /non–
process with a view to ensure accurate, timely and proper Committee oversees the Company’s CSR initiatives under the
Directors are in line with the Company’s policies. The executive directors as per nomination and remuneration
disclosures, transparency, integrity & quality of financial overall supervision and guidance of the Board of Directors.
Company has not granted any stock option to its directors. policy of the Company the same is available on the
reporting and minimization of risk. During the year, three meeting was held on 4th June 2021,
Company’s website at www.iolcp.com. 12th November 2021 and 30th March 2022. Attendance record

of Corporate Social Responsibility Committee members is There was no gap of more than 180 days between any two the core of good governance. Towards this end, the following b) Financial Calendar: Last financial year of the Company
given below: consecutive meetings. information are being disclosed to the investors: was of twelve months from 1st April 2021 to 31st March 2022.
Tentative financial calendar of the Company for the year
No. of Meetings Attendance record of Risk Management Committee a. Quarterly/Half Yearly/Annual Results: Quarterly, half 2022-23 shall be as follow:
Name of the Members members is given below: yearly and annual results of the Company are sent to the
Held Attended
Mr Varinder Gupta, Chairman 3 3 Stock Exchanges immediately after they are approved Board Meetings to take on record Schedule
No. of Meetings by the Board. Financial Results for the quarter ending During August 2022
Mr Vikas Gupta 3 2 Name of the Members
Held Attended 30th June 2022
Dr Sandhya Mehta 3 3
Mr Harpal Singh, Chairman 2 2 b. Publication of Quarterly/Half Yearly/Annual Results: Financial Results for the quarter/half year During November 2022
Quarterly, half yearly and annual results of the Company ending 30th September 2022
8. Risk Management Committee Dr Sandhya Mehta 2 2
are published in the prescribed format within 48 hours Financial Results for the quarter ending During February 2023
The Board of Directors have constituted a Risk Management Mr Vikas Gupta 2 2
of the conclusion of the meeting of the Board at least in 31st December 2022
Committee comprising of five members, four directors, two Mr Kushal Kumar Rana 2 2
one English newspaper (Business Standard, Economic Financial Results for the quarter ending During May 2023
being independent directors viz. Mr Harpal Singh (Chairman), Mr Pardeep Kumar Khanna 2 2 31st March 2023
Times, Financial Express) circulating in the whole or
Dr Sandhya Mehta, two being executive directors viz. substantially the whole of India and in one vernacular
Mr Vikas Gupta, Mr Kushal Kumar Rana and one Mr Pardeep 9. Other Committees newspaper (Punjabi Jagran etc.) of the State of Punjab c) Date of Book Closure
Kumar Khanna, Chief Financial Officer as its members. Banking & Finance Committee and Allotment Committee, where the Registered Office of the Company is situated. The Register of Members and Share Transfer Books will
Terms of reference of Committee are in accordance with the both the committees comprising of three members, two remain closed from 20th August 2022 to 26th August 2022 for
provisions of SEBI (LODR) Regulations. During the year, two being executive directors viz Mr Varinder Gupta (Chairman), These results, presentations made to institutional the purpose of the Annual General Meeting.
meeting was held on 4th February 2022 and 29th March 2022. Mr Vikas Gupta and one being independent director investors or to the analysts and other press releases
Dr Sandhya Mehta as its members. are sent to the Stock Exchanges as well as displayed on d) Dividend payment date
Company’s website www.iolcp.com at the time of its
10. General body Meetings: During the year under review, an Interim Dividend @ 40% i.e.
release to the media.
a. Annual General Meetings ` 4/- per equity share of face value of ` 10/- each, for financial
year 2021-22 was declared and paid to the Shareholders of
The details of last three Annual General Meetings are given below: c. NSE Electronic Application Processing System (NEAPS):
the Company. The Board of Directors considers the same as
NEAPS is a web-based application designed by NSE
final dividend and therefore have not recommended any
Meeting Date Day Time/ Location Details of Special Resolutions passed for corporate. The Shareholding Pattern, Corporate
final dividend to the shareholders.
34th AGM 18th September 2021 Saturday 11:00 AM To appoint Mr. Kushal Kumar Rana as Director (Works) Governance Report and Corporate’s Announcements
(Through video conferencing from of the Company. etc. are also filed electronically on NEAPS.
e) Shares of the Company are listed on the following Stock
Corporate Office Ludhiana)
Exchange
33rd AGM 26th September 2020 Saturday 11:00 AM To re-appoint Mr Vikas Gupta as Executive Director of d. BSE Listing Centre (http://listing.bseindia.com/): BSE
(Through video conferencing from the Company for a period of 5 years with effect from Listing Centre is a web-based application designed by Name and Address of the Stock Exchange Stock Code
Corporate Office Ludhiana) 29th May 2020. BSE for corporate. The Shareholding pattern, Corporate IOLCP
To approve shifting of the Register Office of the
1. National Stock Exchange of India
Governance Report and Corporate’s Announcements Limited (NSE)
Company outside the local limits
etc. are also filed electronically on BSE Listing Centre. Exchange Plaza, Plot no. C/1, G Block, Bandra-
32nd AGM 29th August 2019 Thursday 11:00 AM at Registered Office Re-appointment of Mr Chandra Mohan as an
Independent Director of the Company. Kurla Complex, Bandra (E) Mumbai - 400 051
Re-appointment of Dr (Mrs) Sandhya Mehta as an e. E-mail: Quarterly/half yearly /annual results/ annual 524164
2. BSE Limited (BSE)
Independent Director of the Company. reports are also sent to the members & investors on
Phiroze Jeejeebhoy Towers, Dalal Street,
Approval of related party transactions entered / to be their e-mail Ids registered with the Company.
Mumbai-400001
entered with Vivachem Intermediates Private Limited
12. General Shareholders Information
The Company has made all the compliances of Listing
Postal Ballot: provider for the facility of Remote e-voting from Following information would be useful to the members: Agreement including payment of annual listing fees for the
During the year two Special Resolutions were passed Thursday 17th February 2022 at 9.00 A.M. to Friday, 18th financial year 2021-22.
March 2022 at 5.00 P.M. a) Annual General Meeting of the Company will be held
through exercise of Postal Ballot for the re-appointment
on Friday, 26th August 2022 at 11:00 AM through Video f) Market Price data
of Mr Rajender Mohan Malla and Mr Harpal Singh as
Mr Vinay Kohli, Partner, K. K. Kapoor and Associates, Conferencing / Other Audio Visual Means (“VC/OAVM”). The
Independent Directors of the Company. The Board Monthly high and low prices of equity shares of the Company
Chartered Accountants, Ludhiana was appointed as Registered Office of the Company at Village & Post Office
of Directors in its meeting held on 4th February 2022 at the National Stock Exchange of India Limited (NSE) and
Scrutinizer for conducting the Postal Ballot process - Handiaya, Fatehgarh Chhanna Road, Tehsil & District -
approved the notice of the Postal Ballot seeking BSE Limited (BSE) are as follow:
through remote e-voting in a fair and transparent Barnala- 148107 Punjab shall be deemed to be the venue of
approval of Shareholders by means of postal ballot
manner. the Meeting.
through remote e-voting.
The Notice for Postal Ballot was sent on 16th February Based on the Scrutinizer’s Report all the Special
2022 only through electronic mode to those members Resolution as set out in the Postal Ballot Notice were
whose e-mail addresses were registered with the passed with requisite majority and the result of the
company/Depository Participant(s) as on the cut-off Postal Ballot was declared on 19th March 2022.
date i.e. 11th February 2022.
11. Means of Communication:
The Board of Directors had appointed Central Timely disclosure of consistent, comparable, relevant and
Depository Services Limited (CDSL) as the service reliable information on corporate financial performance is at

(Amount in `)
g) Registrar and Share Transfer Agents h) Share Transfer System
NSE BSE Alankit Assignments Limited, All share transfers, physical as well as electronic, are
Financial Year (Unit: IOL Chemicals and Pharmaceuticals Limited) handled by M/s Alankit Assignments Limited, Registrar
Share Price NIFTY Share Price BSE SENSEX
2020-21
“Alankit Heights”, 4E/2, and Share Transfer Agent of the Company at Alankit
High Low High Low High Low High Low
Jhandewalan Extention, New Delhi-110 055 House, 4E/2, Jhandewalan Extension, New Delhi –
Apr-21 640 549 15044 14151 640 549 50376 47205 Phone : +91-11-23541234, 42541234 110 055.
May-21 706 585 15606 14416 706 583 52013 48028 Fax : +91-11-42541967
E mail : rta@alankit.com i) Distribution of Shareholding
Jun-21 725 603 15916 15451 725 603 53127 51451
The Distribution Schedule of the Company as on
Jul-21 716 603 15962 15513 715 603 53291 51803 31st March 2022 is as follow:
Aug-21 682 538 17154 15835 682 539 57625 52804
Shareholding of Nominal Shareholders Shares
Sep-21 608 548 17948 17055 609 548 60412 57264 value in ` Number %age of total holders Number %age of total capital
Oct-21 624 545 18604 17453 625 545 62245 58551 Upto 500 1,41,090 96.35 90,84,568 15.47
501 to 1000 3,083 2.11 23,51,068 4.00
Nov-21 564 442 18210 16782 564 442 61037 56383
1001 to 2000 1,279 0.87 18,71,687 3.19
Dec-21 492 424 17640 16410 492 424 59203 55133 2001 to 3000 369 0.25 9,33,186 1.59
3001 to 4000 149 0.10 5,23,949 0.89
Jan-22 488 425 18351 16837 488 425 61475 56410 4001 to 5000 111 0.08 5,04,674 0.86
Feb-22 469 330 17795 16203 469 331 59619 54383 5001 to 10000 212 0.14 15,13,942 2.58
10001 and Above 144 0.10 4,19,22,428 71.41
Mar-22 437 293 17560 15671 437 295 58891 52261
Total 1,46,437 100.00 5,87,05,502 100.00
Source: nseindia.com and bseindia.com
j) Shareholding Pattern:
The shareholding pattern of the Company as on 31st March 2022 is as follow:
Sensex v/s Company Price

As on 31st March 2022 As on 31st March 2021

60000 750 Category
Shareholders Shares %age Shareholders Shares %age
Promoter
50000 600 Indians 8 2,56,48,998 43.69 8 2,56,48,998 43.69
Foreign - - - - - -
Sub – total 8 2,56,48,998 43.69 8 2,56,48,998 43.69
Non-Promoters
40000 450 Financial Institutions / Mutual 9 24,511 0.04 9 33,299 0.06
Funds
Foreign Portfolio Investors 67 18,43,665 3.14 85 34,99,189 5.96
30000 300 NBFCs registered with RBI 1 7,500 0.01 2 5,823 0.01
Bodies Corporate 424 1,14,73,040 19.54 332 1,13,57,007 19.35
Individuals 1,41,683 1,77,84,178 30.29 1,05,465 1,60,29,291 27.31
Apr/21 May/21 Jun/21 Jul/21 Aug/21 Sep/21 Oct/21 Nov/21 Dec/21 Jan/22 Feb/22 Mar/22 HUF 2,079 6,05,309 1.03 1,479 6,23,111 1.06
NRI 1,997 9,95,421 1.70 1,483 7,94,053 1.35
Sansex Closing Price Company Closing price Clearing Members 115 3,07,490 0.53 172 5,36,527 0.91
Employees 50 13,797 0.03 54 23,522 0.04
Foreign Nationals 1 400 0.00 1 400 0.00
Trust 3 1,193 0.00 2 1,54,282 0.26
Nifty v/s Company Price

Sub –total 1,46,429 3,30,56,504 56.31 1,09,084 3,30,56,504 56.31
Total 1,46,437 5,87,05,502 100 1,09,092 5,87,05,502 100
19000 900 k) Dematerialisation of Shares and Transfer of Shares:
17000 The Company’s shares are compulsorily traded in dematerialised form. The Company has arrangements with National
725
Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL) for demat facility.
15000
375 Shares held in demat and physical mode as on 31st March 2022 are as follow:
13000
11000 375 Particulars of shares
Equity shares of ` 10/- each Members
Number % of Total Number % of Total

900 200 Demat mode 5,81,85,160 99.11% 1,42,704 97.45
Physical mode 5,20,342 0.89% 3,733 2.55
Apr/21 May/21 Jun/21 Jul/21 Aug/21 Sep/21 Oct/21 Nov/21 Dec/21 Jan/22 Feb/22 Mar/22
Total 5,87,05,502 100% 1,46,437 100.00
Sansex Closing Price Company Closing price The Company has appointed Alankit Assignment Limited as Registrar and Share Transfer Agents. No case is pending for
transfer as well as dematerialization of shares as on 31st March 2022. The ISIN No. of the Company is INE485C01011

l) Outstanding GDR/ADR/Warrants/Convertible p) Address for Correspondence and to prohibit managerial personnel from taking any meets the criteria of independence as provided
Instrument For general correspondence: adverse personnel action against those employees. It is under law.
The Company has no outstanding GDR/ADR/Warrants/ Mr Abhay Raj Singh affirmed that no personnel has been denied access to
Convertible Instrument. Vice President and Company Secretary Audit Committee during the year. The whistle blower Further, in the opinion of the Board, the
IOL Chemicals and Pharmaceuticals Limited policy is available on the website of the Company at Independent Direc tors of the Company
m) Foreign exchange risk and hedging activities 85, Industrial Area ‘A’, Ludhiana - 141 003. www.iolcp.com. fulfill all the conditions specified in the SEBI
Phone : +91-161-2225531-35 Listing Regulations and are independent of
i. Risk management policy of the listed entity
Fax : +91-161-2608784 d) Compliance with mandatory requirements the management.
with respect to commodities including
through hedging: E-mail : investor@iolcp.com, The Company has complied with all the applicable
mandatory requirements and other applicable iv) Familiarisation Programme for Independent
Company is exposed to foreign exchange risk Directors
For share transfer/ dematerialisation/ change of regulations of SEBI (LODR) Regulations.
with respect to foreign currencies, denominated
address etc: The Board members are provided with necessary
mainly in US Dollars, on exports and imports.
Alankit Assignments Limited, i) Code of Conduct for Directors and Senior documents/brochures, reports and internal
Though the risk associated with foreign currency
(Unit: IOL Chemicals and Pharmaceuticals Limited) Management policies to enable them to familiarise with the
fluctuation is hedged to some extent naturally,
“Alankit House”, The “Code of Conduct for Directors and Senior company’s procedures and practices. Periodic
as the Company is engaged both in imports
4E/2, Jhandewalan Extension, New Delhi - 110055 Management” has been adopted by the Company presentations are made at the meeting of the
and exports. However, the Company hedges its
Phone : +91-11-23541234, 42541234 for its board members and senior management board/ committee on business and performance
imports and exports from time to time based
Fax : +91-11-42541967 of the Company. Code of Conduct is available updates of the company, global business
on international currency scenario, to minimize
E mail : rta@alankit.com on the website of the Company www.iolcp.com. environment, business strategy and risks involved.
the risk.
All board members and senior management Detailed presentations on the company’s business
13. Disclosures personnel affirmed the compliance with the said segments were made at the separate meetings of
ii Exposure of the listed entity to commodity
a) Related Party Transactions code. A certificate signed by Managing Director the independent directors held during the year.
and commodity risks faced by the entity
throughout the year: There is no exposure in There have been no materially significant related party as required under Regulation 34 (3) of SEBI (LODR)
Regulations affirming compliance of said code is Quar terly updates on relevant statutor y
commodity derivatives transactions, pecuniary transactions or relationships
given in this Annual Report. changes and landmark judicial pronouncements
a. Total exposure of the listed entity to between the Company and its directors or promoters
encompassing important laws are regularly
commodities in ` : Nil of the Company at large except details of transactions
ii) Management Discussion and Analysis Report circulated to the directors. Site visits to various
annexed to the Balance Sheet. Transactions entered
plant locations are organized for the directors
b. Exposure of the listed entity to various into with related parties during the financial year Management Discussion and Analysis Report
to enable them to understand the operations of
commodities: Nil 2021-22 were in the ordinary course of business and has been included in this Annual Report and
the company. The details of such familiarization
at arms’ length basis and were approved by the Audit includes discussion on the matters specified in the
programs for independent directors are posted
c. Commodity risks faced by the listed entity Committee. There is no related party transaction Regulation 34 (3) of SEBI (LODR) Regulations.
on the website of the company at www.iolcp.com.
during the year and how they have been that may have potential conflict with the interests
managed: Nil of the Company. All details relating to financial iii) Selection of Independent Directors
v) List of core skills/expertise/competencies
and commercial transactions, where directors may The Nomination and Remuneration Committee, identified by the Board of Directors as
n) Credit rating have a potential interest are provided to the Board inter alia, considers qualification, positive required in the context of its business
and interested directors neither participate in the attributes, area of expertise and number of
Credit rating by CARE Ratings Limited vide letter 01th The Board has identified the following skills /
discussion nor do they vote on such matters. directorships and memberships held in various
July 2021 for banking facilities availed by the company, expertise / competencies fundamental for the
as per details given below: committees of other companies by such
The Company has policy on dealing with material effective functioning of the Company which are
persons in accordance with the company’s
related party transactions which is available on the currently available with the Board:
Amount
Policy for selection of directors and determining
Facilities Existing Rating Revised Rating website of the Company at www.iolcp.com. directors’ independence. The Board considers
(` Crore)
Skill Area Description
Long Term Bank 140 CARE A; Stable CARE A+; Stable the Committee’s recommendation, and takes
Facilities (Fund (Single A; Outlook: (Single A Plus ; b) Compliance made by the Company appropriate decision. Strategy and Ability to think strategically, identify and critically
planning assess strategic opportunities and threats.
Based Working Stable) Outlook: Stable) The Company has continued to comply with
Capital) the requirements as specified in the SEBI (LODR) None of the directors appointed or continue as Governance, Risk Experience in the application of corporate
and Compliance governance principles in a commercial enterprise,
Short Term Bank 210 CARE A1 CARE A1 + Regulations and other statutory authorities on all alternate director for an independent director of
ability to identify key risks to the company in a wide
Facilities (Non-fund- (A One) (A One Plus) matters related to capital market and no penalties the company. range of areas of operation.
based Working or strictures have been imposed on the Company by
Capital) Financial Qualifications and experience in accounting and/or
the stock exchanges, SEBI or any other authority on The terms and conditions of appointment Performance finance and the ability to assess financial viability and
Long Term Bank - Not applicable as the
any matter related to capital market during the last of independent directors is available on the performance, contribute to financial planning and
Facilities – Term Company does not
Loan have any long term three years. company’s website www.iolcp.com. efficient use of resources.
Debt Commercial A broad range of commercial/ business experience
c) Vigil Mechanism Every independent director, at the first meeting Experience including marketing and business systems and
of the Board in which he participates as a director improvement.
o) Plant Location The Company has whistle blower policy which acts
and thereafter at the first meeting of the Board International Knowledge and international commercial experience.
Village & Post Office - Handiaya, Fatehgarh Chhanna as vigil mechanism and provides an opportunity to
employees to access in good faith, to Audit Committee, in every financial year, gives a declaration that he Product skills Knowledge and experience in Chemical and
Road, Tehsil & District - Barnala- 148107 Punjab. Pharmaceutical Industry
Phone : +91-1679-285285-86 in case they observe unethical and improper practices
Fax : +91-1679-285292 or any other alleged wrongful conduct in the Company

The skills/expertise/knowledge areas of the Directors are given below: ECLARATION REGARDING COMPLIANCE BY BOARD MEMBERS AND SENIOR MANAGEMENT PERSONNEL WITH
D
THE COMPANY’S CODE OF CONDUCT
Rajender Mohan Kushal Kumar I, Varinder Gupta, Managing Director of the Company, pursuant to Regulation 34(3) read with Paragraph D of Schedule V of the
Skill/expertise/ knowledge Area Varinder Gupta Vikas Gupta Harpal Singh Sandhya Mehta
Malla Rana SEBI (Listing Regulations and Disclosure Requirements) Regulations, 2015, hereby declare that all the Board members and Senior
Strategy and planning Y Y Y Y Y Y Management personnel of the Company have affirmed compliance with the Company’s Code of Conduct for Board of Directors and
Senior Management for the financial year ended 31st March 2022.
Governance, Risk and Compliance Y Y Y Y Y Y
Financial Performance Y Y Y Y Sd/-
Commercial Experience Y Y Y Varinder Gupta
International Y Y Y Place: Ludhiana Managing Director
Date: 30th May 2022 DIN:00044068
Product skills Y Y Y
The Nomination & Remuneration Committee No. of complaints during the year CHIEF EXECUTIVE OFFICER (CEO) AND CHIEF FINANCIAL OFFICER (CFO) CERTIFICATION
/ Board identify the eligible persons to be Nature of complaints / queries
Filed disposed Pending We, Dr Sanjoy Chaturvedi, Exective Director & CEO and Pardeep Kumar Khanna, Chief Financial Officer (CFO)of IOL Chemicals and
appointed as a Director of the Company based
Sexual Harassment of women at 1 1 0 Pharmaceuticals Limited, certify that:
on above referred skill sets. The Directors of the
Company are from diverse backgrounds and workplace
1. e have reviewed the financial statements and the cash flow statement for the year ended 31st March 2022 and that to the best of
W
possess special skills with regard to the industries
xi) Unclaimed/Unpaid amount of dividend our knowledge and belief:
/ fields they come from and are helpful for the
business of the Company. transferred to IEPF
a. these statements do not contain any materially untrue statement or omit any material fact or contain statements that might
During the year Company has not transferred
be misleading;
vi) Board Evaluation any amount to Investor Education and
The evaluation of all the directors was conducted Protection Fund.
b. these statements together present a true and fair view of the Company’s affairs and are in compliance with existing
based on the criteria and framework adopted accounting standards, applicable laws and regulations;
by the Board. The evaluation process has been 14. Compliance report on discretionary requirements
explained in the Directors’ Report. under Regulation 27(1) of SEBI (LODR) Regulations.
2. There are, to the best of our knowledge and belief, no transactions entered into by the Company during the year are fraudulent,
The Company is displaying its quarterly and half-yearly illegal or violative of the Company’s code of conduct;
Further the evaluation process was based on results on its website www.iolcp.com and publishing the
affirmation received from Independent Directors same in widely circulated newspapers. The auditors have 3. We accept responsibility for establishing and maintaining internal controls for financial reporting and that we have evaluated
that they met the independence criteria as given unmodified opinion on the financial statements the effectiveness of the internal control systems of the Company pertaining to financial reporting and we have disclosed to the
required under Companies Act, 2013 and of the Company. The Company has appointed separate auditors and the Audit & Risk Management Committee, deficiencies in the design or operation of internal controls, if any, of which
Listing Regulations. person to the post of chairman and managing director. we are aware and the steps we have taken or propose to take to rectify these deficiencies;
Mr Rajender Mohan Malla is the Chairman of the Company
vii) Holding and Subsidiary Companies and Mr Varinder Gupta is the Managing Director of the 4. We have indicated to the Auditors and the Audit & Risk Management Committee
The Company has one subsidiary company in the Company. The Internal Auditors reports to the Audit
name of IOL- Foundation. Committee on internal audit findings. a. significant changes in internal control over financial reporting during the year;
viii) Detail of utilization of fund raised through 15. CEO and CFO Certificate b. significant changes in accounting policies during the year, if any, and that the same have been disclosed in the notes to the
preferential allotment Certificate from the Executive Director & CEO and Chief financial statements; and
During the year Company has not raised fund Financial Officer (CFO) under Regulation 17 (8) of SEBI (LODR)
through preferential allotment Regulations is given in this Annual Report. c. instances of significant fraud of which we have become aware and involvement therein, if any, of the management or other
employees who have a significant role in the Company’s internal control system over financial reporting.
ix) Total fees paid to statutory auditor 16. Auditor’s Certificate on Compliance
The Company has paid ` 24.88 lakh to the Certificate from the Statutory Auditors under Regulation
statutory auditors for all services including the fee 34 (3) of SEBI (LODR) Regulations confirming compliance Sd/- Sd/-
paid for audit of subsidiary company. The detail of of conditions of corporate governance is given in this Place: Ludhiana Pardeep Kumar Khanna Dr Sanjay Chaturvedi
the same in given in Note no. 46 of Notes forming Annual Report. Date: 30th May 2022 Chief Financial Officer Executive Director & CEO
part of financial statements.
17. Certificate from Company Secretary in practice
x) Sexual Harassment of women at workplace Certificate from a Company Secretary in practice that none
Disclosures in relation to the Sexual Harassment of the directors on the board of the Company have been
of Women at Workplace (Prevention, Prohibition debarred or disqualified from being appointed or continuing
and Redressal) Act, 2013 during the year 2021-22 as directors of companies by the Board/Ministry of Corporate
are as under: Affairs or any such statutory authority is given in this
Annual Report.

AUDITORS’ CERTIFICATE ON CORPORATE GOVERNANCE CERTIFICATE FROM COMPANY SECRETARY IN PRACTICE

To Pursuant to Regulation 34(3) and Schedule V Part C clause (10) (i) of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015
The Members of IOL Chemicals and Pharmaceuticals Limited, In terms of the provisions of Sub Clause (i) of Clause 10 of Part C of Schedule V of the Securities and Exchange Board of India (SEBI)
(Listing Obligations and Disclosure Requirements) Regulations, 2015 for the financial year ended March 31, 2022, we B.K. Gupta &
1. We have examined the compliance of conditions of Corporate Governance by the Company, for the year ended on 31st March 2022, Associates, Company Secretaries in practice confirm that none of the Directors on the Board of the Company have been debarred or
as stipulated in regulations 17 to 27 and clauses (b) to (i) of regulation 46(2) and para C and D of Schedule V of the SEBI (Listing disqualified from being appointed or continuing as directors of companies by the Board / Ministry of Corporate Affairs or any such
Obligations and Disclosure Requirements) Regulations, 2015 as amended (“SEBI Listing Regulations”). statutory authority.
Managements’ Responsibility For B.K. Gupta & Associates

2. The compliance of conditions of Corporate Governance is the responsibility of the Management. This responsibility includes the Company Secretaries
design, implementation and maintenance of internal control and procedures to ensure the compliance with the conditions of the
Corporate Governance stipulated in the SEBI Listing Regulations. Sd/-
(Bhupesh Gupta)
Auditor’s Responsibility Place : Ludhiana FCS No.: 4590
3. Our responsibility is limited to examining the procedures and implementation thereof, adopted by the Company for ensuring Date : 30th May 2022 C P No.: 5708
compliance with the conditions of the Corporate Governance. It is neither an audit nor an expression of opinion on the financial UDIN: F004590D000425604
statements of the Company.
4. We have examined the books of account and other relevant records and documents maintained by the Company for the purposes
of providing reasonable assurance on the compliance with corporate governance requirements by the Company.
5. We have carried out an examination of the relevant records of the Company in accordance with the Guidance Note on Certification
of Corporate Governance issued by the Institute of the Chartered Accountants of India (the ICAI), the Standards on Auditing
specified under Section 143(10) of the Companies Act 2013, in so far as applicable for the purpose of this certificate and as per the
Guidance Note on Reports or Certificates for Special Purposes issued by the ICAI which requires that we comply with the ethical
requirements of the Code of Ethics issued by the ICAI.
6. We have complied with the relevant applicable requirements of the Standard on Quality Control (SQC) 1, Quality Control for Firms
that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements.
Opinion
7. Based on our examination of the relevant records and according to the information and explanations provided to us and the
representations provided by the Management, we certify that the Company has complied with the conditions of Corporate
Governance as stipulated in regulations 17 to 27 and clauses (b) to (i) of regulation 46(2) and para C and D of Schedule V of the SEBI
Listing Regulations during the year ended 31st March 2022.
8. We state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness
with which the Management has conducted the affairs of the Company.
For Ashwani and Associates

Chartered Accountants
Firm’s Registration No.000497N
Sd/-
(Aditya Kumar)
Place : Ludhiana Partner
Date : 30th May 2022 M. No. 506955
UDIN: 22506955AJXJQZ6175

Business Responsibility Report

(Pursuant to Regulation 34(2)(f) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015)
SECTION A: GENERAL INFORMATION ABOUT THE SECTION B: FINANCIAL DETAILS OF THE COMPANY SECTION D: BR INFORMATION
COMPANY 1. Details of Director/Directors responsible for BR a. Details of compliance (Reply in Y/N)
1. Paid up Capital (INR) 58.70 Crore
1. Corporate Identity Number (CIN) L24116PB1986PLC007030 a) Details of the Director/Director responsible for No. Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
of the Company 2. Total Turnover (INR) 2184.02 Crore implementation of the BR policy/policies 1 Do you have a policy/ Y Y Y Y Y Y Y Y Y
2. Name of the Company IOL Chemicals and 3. Total profit after taxes (INR) 165.66 Crore The Corporate Social Responsibility (CSR) Committee of policies for……
Pharmaceuticals Limited the Board of Directors is responsible for implementation 2 Has the policy Y Y Y Y Y Y Y Y Y
3. Registered address Village & Post Office Handiaya, 4. Total Spending on Corporate Out of 2% (` 9.60 Crore) of the of BR policies. The members of the CSR Committee are being formulated in
Fatehgarh Channa Road, Social Responsibility (CSR) as average net profit for previous
as follows: consultation with the
Barnala-148107, Punjab percentage of profit after tax (%) three years, the Company
relevant stakeholders?
spent 1.23% (` 5.49 Crore,
4. Website www.iolcp.com 3 Does the policy All the policies are based on the
including a contribution made Name of Members DIN Designation
5. E-mail id investor@iolcp.com to IOL-Foundation of ` 2.01 conform to any principles of NVG-guidelines.
Mr Varinder Gupta 00044068 Chairman national /international Additionally, the policies also
6. Financial Year reported 2021-22 Crore) during the FY 2021-22
and balance unspent amount Mr Vikas Gupta 07198109 Member standards? If yes, confirms the intents of the of
7. Sector(s) that the Company is Pharmaceuticals (code: 21001) of 0.92% (` 4.11 Crore) as on specify? (50 words) international standards like ISO
Dr Sandhya Mehta 06954964 Member
engaged in (industrial activity Manufacturing of organic 31st March 2022 transferred to 9001:2015, ISO 14001:2015 ISO
code-wise) chemicals compounds (code: the Company’s “Unspent CSR 45001:2018, GMPs etc)
20119) (b) Details of the BR Head
Account-2021-22” bank account. 4 Has the policy being Y Y Y Y Y Y Y Y Y
8. List three key products/ Ibuprofen (API) The said unspent amount shall No. Particulars Details approved by the Board?
services that the Company Ethyl Acetate be spent on ongoing projects Is yes, has it been
1 DIN Number (if applicable) 00044068
manufactures/provides (as in Metformin HCL undertaken by the Company signed by MD/ owner/
balance sheet) within a period of three years 2 Name Mr Varinder Gupta CEO/ appropriate Board
9. Total number of locations where 4 from such transfer. Director?
3 Designation Managing Director
business activity is undertaken by 5. List of activities in which The Report on the CSR activities 5 Does the company have Y Y Y Y Y Y Y Y Y
the Company expenditure in 4 above has been undertaken by the Company 4 Telephone number +91 161-2225531-35
a specified committee
Number of International None incurred: during the financial year 2021- 5 mail id contact@iolcp.com of the Board/Director/
Locations (Provide details of 22 is annexed to the Directors’ Official to oversee the
Report. implementation of the
major 5) 2. Principle-wise (as per NVGs) BR Policy/policies
policy?
Number of National Locations 4 The National Voluntary Guidelines on Social, Environmental
6 Indicate the link for the https://www.iolcp.com/policies.html
10. Markets served by the The Company serve Indian and SECTION C: OTHER DETAILS and Economic Responsibilities of Business (NVGs) released policy to be viewed
Company–Local/State/National/ international markets across by the Ministry of Corporate Affairs has adopted following online?
International several countries including UK, 1 Does the Company have Yes,
any Subsidiary Company/ IOL-Foundation (Wholly owned
nine areas of Business Responsibility:
Finland, France, Austria, Belgium, 7 Has the policy been Y Y Y Y Y Y Y Y Y
Hungary, Spain, Germany, Italy, Companies? subsidiary) formally communicated
Netherlands, Portugal, Poland, Principle 1 Businesses should conduct and govern themselves to all relevant
Ireland, Serbia, Turkey, Czech 2 Do the Subsidiary Company/ There is no direct participation with Ethics, Transparency and Accountability internal and external
Republic, USA, Australia, Canada, Companies participate in the BR stakeholders?
Principle 2 Businesses should provide goods and services that
Chile, Peru, Brazil, Argentina, Initiatives of the parent are safe and contribute to sustainability throughout 8 Does the company have Y Y Y Y Y Y Y Y Y
Colombia, Mexico, Guatemala, company? If yes, then indicate their life cycle in-house structure to
Paraguay, Dominican Republic, the number of such subsidiary implement the policy/
Principle 3 Businesses should promote the wellbeing of all
Saudi Arabia, South Africa, company(s) policies
employees
Morocco, Kenya, Egypt, Israel, 9 Does the Company Y Y Y Y Y Y Y Y Y
Oman, Tunisia, Ghana, Kuwait, 3 Do any other entity/entities No Principle 4 Businesses should respect the interests of, and be
have a grievance
Jordan, UAE, Japan, Indonesia, (e.g. suppliers, distributors responsive towards all stakeholders, especially
redressal mechanism
South Korea, Thailand, Vietnam, etc.) that the Company does those who are disadvantaged, vulnerable and
related to the policy/
Taiwan, Malaysia, Philippines, business with, participate marginalized.
policies to address
Bangladesh, Uzbekistan etc. in the BR initiatives of the Principle 5 Businesses should respect and promote human rights stakeholders’
Products are sold primarily to Company? If yes, then indicate grievances related to
Principle 6 Business should respect, protect, and make efforts
Branded Generic formulators the percentage of such entity/ the policy/ policies?
to restore the environment
both in India & Overseas. entities? [Less than 30%, 30-60%,
More than 60%] Principle 7 Businesses, when engaged in influencing public 10 Has the company The policies are evaluated internally
and regulatory policy, should do so in a responsible carried out and updated/amended as per the
manner independent audit/ changed business scenario
evaluation of the
Principle 8 Businesses should support inclusive growth
working of this policy
and equitable development
by an internal or
Principle 9 Businesses should engage with and provide value external agency?
to their customers and consumers in a responsible
manner.

Business Responsibility Report (Contd.)
b. If answer to the question at serial number1 against any Our Code of Conduct describes our approach how we The recycling of process water in Ethyl Acetate plant results The Company does sustainable procurement of its raw materials
principle, is ‘No’, please explain why: (Tick up to 2 options) conduct ourselves with each other - our customers, in 50% less consumption of DM water and reduction in raw and mechanism is in place to procure raw materials from different
our shareholders, our competitors, our employees, our material norms by 0.5%. Further the cascading of the cooling sources considering availability, transportation, requirement of
No. Questions P P P P P P P P P neighbouring communities, government and our suppliers tower water also leads to reduction in power norms by 5%. factories etc. This also includes transportation from suppliers to
1 2 3 4 5 6 7 8 9 and contractors. our factories.
1 The company has not In Isopropyl Chloroacetate (IPCA) Plant, the aqueous layer
understood the Principles Not applicable 2. ow many stakeholder complaints have been received
H recycling in three subsequent batches results in reduction 4. Has the company taken any steps to procure goods
2 The company is not at a in the past financial year and what percentage was of raw material norms upto 4% per MT of IPCA production. and services from local & small producers, including
stage where it finds itself in satisfactorily resolved by the management? If so, Reduction in water requirement by 66% as the water is communities surrounding their place of work?
a position to formulate and provide details thereof, in about 50 words or so. recycled three times instead of one time. a. If yes, what steps have been taken to improve their
implement the policies on
specified principles With regard to principle 1, no complaint was received by the capacity and capability of local and small vendors?
Company from any stakeholder in the past financial year. Reduction in water used for washing & recycling of aqueous
3 The company does The Company is situated at rural area and over the
layer in subsequent batches, which leads to 18.75 % reduction
not have financial or years the Company has promoted local contractors
Principle 2 in water consumption per batch leads to saving of around 10
manpower resources and service providers, to the best possible extent,
available for the task KL of water per day. Reduction in wastewater by 19 KL per day.
1. List up to 3 of your products or services whose design by patronizing them to supply / provide different
Increase in potassium carbonate recovery by 2.0 %.
4 It is planned to be done has incorporated social or environmental concerns, services required by the Company for its day to day
within next 6 months risks and/or opportunities. administration /operation. Being situated in Punjab,
Modernization, Technology, Energy & solvent conservation,
5 It is planned to be done a. Ibuprofen which is agriculture belt, we have biomass base
Process automation and waste elimination are some of
within the next 1 year Cogeneration Plant. We are procuring biomass from
the drivers adopted to drive this journey for continuous
6 Any other reason (please b. Ethyl Acetate nearby area which is a waste obtained from Rice crop.
improvement, to reach excellence in the field of energy
specify)
conservation IOLCP is committed to produce good quality
c. Mono Chloro Acetic Acid and Acetyl Chloride 5. Does the company have a mechanism to recycle products
of product with a mission to reduce the specific energy
3. Governance related to BR and waste? If yes what is the percentage of recycling of
consumption 5 % every year. The action plans for achieving
a. Indicate the frequency with which the Board of Ibuprofen Plant is well designed for 100% recycling of products and waste (separately as <5%, 5-10%, >10%).
the target are as follows:
Directors, Committee of the Board or CEO to assess solvents with increased recovery percentage by using high Also, provide details thereof, in about 50 words or so.
the BR performance of the Company. Within 3 efficiency heat exchangers. In Ethyl Acetate we have reduced ● Adopting best energy management practices. Yes. >10 percent. The Company has been proactively
months, 3-6 months, Annually, More than 1 year effluent discharge by recycling the reaction process water in engaged into converting waste/residuals from its
The CSR Committee of the Board oversees the BR cooling Towers. The recycling of the process water in plant ● Regularly monitoring energy use. manufacturing processes into valuable and useful products
performance of the Company on annual basis. During leads to reduce the consumption of DM water by 50% and thereby not only minimizing the waste generated but also
the Financial Year 2021-22 CSR Committee met three reduction in raw material norms by 0.5%. The Mono Chloro ● Reporting quarterly on energy use to staff and at creating a source of revenue to the Company. We recovered
times on 4th June 2021, 12th November 2021 and 30 th Acetic Acid and Acetyl Chloride are manufactured in a single Management Board meetings. HHC from product Iso Butyl Benzene and reuse HHC in
March 2022. plant by using dual technology. In Isopropyl Chloroacetate furnaces in place of Diesel (HSD), Recovering spent gas
(IPCA) Plant, aqueous layer recycling in three subsequent ● Ensuring that new appliances, equipment, and building from product Iso Butyl Benzene which is used as heating
b. Does the Company publish a BR or a Sustainability batches leads to reduction in raw material norms upto 4% projects are energy efficient. media for thermic fluid. In all units, plants are equipped with
Report? What is the hyperlink for viewing this per MT of IPCA production. solvent recovery systems to recycle all the solvents in same
report? How frequently it is published? ● Identifying all areas of opportunity for improved energy process. Catalyst like Potassium Carbonate is recovered from
The unit is awarded with “National Award for Technology performance via detailed consultation with staff. effluent streams and same is sale in to the market for other
Yes, the Company publishes BR Report annually in its
Innovation” using green chemistry to use dual technology industrial applications.
Annual Report. The hyperlink is https://www.iolcp.
for the production of Mono Chloro Acetic Acid and Acetyl ● Facilitate developing and implementing an action plan.
com/investors/annual-reports
Chloride in a single Plant by the Government of India. Principle 3
SECTION E: PRINCIPLE-WISE PERFORMANCE ● Checking the effectiveness of the energy saving 1. Please indicate the Total number of employees:
2. For each such product, provide the following details in measures, periodically document any changes in
Principle 1 2316 (as on 31st March 2022)
respect of resource use (energy, water, raw material etc.) procedures resulting from process improvement, and
1. Does the policy relating to ethics, bribery and corruption per unit of product (optional): make comparisons with objectives and targets. 2. Please indicate the Total number of employees hired on
cover only the company? No. a. Reduction during sourcing/production/ distribution temporary/contractual/ casual basis: 454
Does it extend to the Group/Joint Ventures/ Suppliers/ achieved since the previous year throughout the ● Continual interaction with the technology suppliers and
3. Please indicate the Number of permanent women
Contractors/ NGOs /Others? Yes value chain? visits and interaction with best pharma based plants in
employees: 61
world and benchmarking various parameters is an on-
The Company has an established Code of Conduct and b. Reduction during usage by consumers (energy, going exercise. 4. Please indicate the Number of permanent employees
Whistle Blower Policy. The Code, policies and standards water) has been achieved since the previous year? with disabilities:
communicate our zero tolerance approach to ethical ● Everyday energy consumption is reviewed in daily Nil
violations, and communicate our commitment and The Company has developed an experienced, technical coordination meeting and corrective actions are taken
requirement for legal compliance and ethical good practice. and dedicated energy cell for Energy conservation. Our best achieved consumption is taken as target. 5. Do you have an employee association that is recognized
main motto is ‘Save Energy Save Environment’. Energy by management: Nil
The Code provides guidelines for our business to be Conservation has always been an important management 3. Does the company have procedures in place for 6.
What percentage of your permanent employees is
consistent with the highest standards of business ethics objective. We are aware that conserving energy is desirable sustainable sourcing (including transportation)? members of this recognized employee association?:
and is intended to meet high standards of personal and not only to reduce costs but also for conserving precious a. If yes, what percentage of your inputs was sourced Nil
professional integrity. and fast depleting fossil fuel reserves and protecting sustainably? Also, provide details thereof, in
the environment. about 50 words or so.

Business Responsibility Report (Contd.)
7. Please indicate the Number of complaints relating to 2. How many stakeholder complaints have been received Principle 7 For more details, please refer to Report on CSR activities
child labour, forced labour, involuntary labour, sexual in the past financial year and what percent was 1. Is your company a member of any trade and chamber Annexed to the Directors’ Report provided in Annual Report
harassment in the last financial year and pending, as satisfactorily resolved by the management? or association? If Yes, Name only those major ones that 2021-22.
on the end of the financial year. No complaint was received by the Company from any your business deals with:
stakeholder in the past financial year regarding violation of 5. Have you taken steps to ensure that this community
No of complaints No of complaints The Company has following membership:
No. Category filed during the pending as on end human right. development initiative is successfully adopted by the
financial year of the financial year community? Please explain in 50 words, or so.
1. PHD Chamber of Commerce and Industry
1 Child labour / forced 0 0 Principle 6 Yes. The activities undertaken by the Company under its
labour/ involuntary CSR program are tracked and followed by our internal team
labour 1. Does the policy related to Principle 6 cover only the 2. Indian Chemical Council
company or extends to the Group/Joint Ventures/ to ensure whether the desired outcomes has been achieved
2 Sexual harassment 1 0
Suppliers/Contractors/NGOs/others. 3. Confederation of Indian Industry and the benefits to the community is served.
3 Discriminatory 0 0
employment olicy related to principle-6 covers the Company and
P
4. Bulk Drug manufacturers Association (BDMA) Principle 9
extends to the contractor and customers.
8. What percentage of your under mentioned employees 1.
What percentage of customer complaints/consumer
were given safety & skill up-gradation training in the 2. Does the company have strategies/ initiatives to 2.
Have you advocated/lobbied through above cases are pending as on the end of financial year.
last year? address global environmental issues such as climate associations for the advancement or improvement of None, Customer complaints, if any are settled immediately
change, global warming, etc? Y/N. If yes, please give public good? Yes/No; if yes specify the broad areas on priority basis by identifying root cause and taking
a. Permanent Employees : 100%
hyperlink for webpage etc. (drop box: Governance and Administration, Economic corrective actions accordingly
Reforms, Inclusive Development Policies, Energy
b. Permanent Women Employees: 100% No
security, Water, Food Security, Sustainable Business 2.
Does the company display product information on
Principles, Others): the product label, over and above what is mandated
c. Casual/Temporary/Contractual Employees: 100% 3.
Does the company identify and assess potential
environmental risks? Y/N No as per local laws? Yes/No/N.A. /Remarks(additional
d. Employees with Disabilities: N.A. information)
Yes, all potential environmental risks are identified and
Principle 8 Yes, our product labels are in compliance of prevailing
required devices like DAF (Dissolved Air Floatation), ATFD
Principle 4 (Agitated thin film Dryer) has been installed to treat effluent 1.
Does the company have specified programmes/ regulatory guidelines and mandatory information is
1. Has the company mapped its internal and external in a scientifically sound manner. initiatives/projects in pursuit of the policy related to displayed on product labels. As per customer requirement
stakeholders? Yes/No Principle 8? If yes details thereof. additional information also provided, if any, like TREM card
Additionally we have planned for installation of 200 KLD MEE The Company focuses on ethical and transparent business required during material transportation and Safety Data
Yes
(Multi effect evaporator) for treatment of effluent. practices, with inclusive community development Sheet (SDS) which describes safe handling and storage
lying at the core of its social initiatives. The focus of our of product. Risks/hazards related to product and safety
2.
Out of the above, has the company identified the
4. Does the company have any project related to community investment initiatives is on education, health measures to mitigate risks are incorporated in SDS. This re-
disadvantaged, vulnerable & marginalized stakeholders.
Clean Development Mechanism? If so, provide details and environment. emphasizes our capability and commitment to meet world-
Identification of the disadvantaged, vulnerable and class standards.
thereof, in about 50 words or so. Also, if Yes, whether
marginalised stakeholders is an on-going process. However,
any environmental compliance report is filed? 2. Are the programmes/projects undertaken through in-
we have emphasis on promoting education among children 3. Is there any case filed by any stakeholder against
No house team/own foundation/external NGO/ government
and preventive health care in our nearby communities. We the company regarding unfair trade practices,
structures/any other organization?
have initiated several programmes for education, health irresponsible advertising and/or anti-competitive
and environment for the benefits of disadvantaged & 5. Has the company undertaken any other initiatives on Most of our programmes are implemented in-house through
behaviour during the last five years and pending as
marginalized stakeholders in the communities. clean technology, energy efficiency, renewable energy, our Corporate Social Responsibility team. We are also
on end of financial year. If so, provide details thereof, in
etc. Y/N. If yes, please give hyperlink for web page etc. undertaking the CSR activities through various NGO’s and
about 50 words or so.
3. Are there any special initiatives taken by the company Yes. Please refer Energy Conservation/ Technology local administration. We also encourage other employees to
contribute towards these social initiatives. No, there is no such case.
to engage with the disadvantaged, vulnerable and Absorption section provided/annexed to the Directors’
marginalized stakeholders. If so, provide details thereof, Report given in Annual Report 2021-22. The hyperlink for
3. Have you done any impact assessment of your initiative? 4.
Did your company carry out any consumer survey/
in about 50 words or so. webpage is https://www.iolcp.com/investors/annual-
consumer satisfaction trends?
The Company has supported various programs broadly in reports Yes
Yes. We carry out consumer satisfaction survey every year.
the field of education, health care and humanitarian relief.
6. Are the Emissions/Waste generated by the company 4.
What is your company’s direct contribution to We take customer feedback and the customers responses on
Details of such initiatives supported by the Company are
within the permissible limits given by CPCB/SPCB for the community development projects-Amount in INR and different aspects of service are quantified into measurable
listed at Annual Report on Corporate Social Responsibility
financial year being reported? the details of the projects undertaken. terms to improve and compare satisfaction level on a
(CSR) Activities annexed to the Directors’ Report.
YoY basis.
Yes The total amount spent on all CSR activities during the
Principle 5 FY2022 was ` 5.49 crore. The major thrust areas for our
1. Does the policy of the company on human rights 7.
Number of show cause/ legal notices received from programmes are –
cover only the company or extend to the Group/Joint CPCB/SPCB which are pending (i.e. not resolved to
Ventures/Suppliers/Contractors/NGOs/Others? satisfaction) as on end of Financial Year. a) Children’s Education
No, show cause/ legal notices received
The Company has adopted various policies to protect rights b) Health Programmes for the Community
of not only its employees but all other stakeholders. The
Company discourages its business associates from doing c) Sanitation Material – Covid-19
violation of Human Rights.

Independent Auditor’s Report

TO THE MEMBERS OF IOL CHEMICALS AND PHARMACEUTICALS LIMITED
Report on the Audit of the Standalone Financial Basis for Opinion Management’s Responsibility for the Standalone ● Obtain an understanding of internal control relevant to the
Statements We conducted our audit of the Standalone Financial Statements Financial Statements audit in order to design audit procedures that are appropriate
Opinion in accordance with the Standards on Auditing specified under The Company’s Board of Directors is responsible for the matters in the circumstances. Under section 143(3)(i) of the Companies
section 143(10) of the Act (SAs). Our responsibilities under those stated in section 134(5) of the Act with respect to the preparation Act, 2013, we are also responsible for expressing our opinion
We have audited the accompanying Standalone Financial Results
Standards are further described in the Auditor’s Responsibilities of these standalone financial statements that give a true and fair on whether the company has adequate internal financial
of IOL Chemicals and Pharmaceuticals Limited (hereinafter
for the Audit of the Standalone Financial Statements section of our view of the financial position, financial performance, including controls system in place and the operating effectiveness of
referred to as “the Company”), which comprise the Balance Sheet
report. We are independent of the Company in accordance with other comprehensive income, changes in equity and cash flows of such controls.
as at March 31, 2022, the Statement of Profit and Loss (including
Other Comprehensive Income), the Statement of Changes in the Code of Ethics issued by the Institute of Chartered Accountants the Company in accordance with the Ind AS and other accounting
of India (ICAI) together with the ethical requirements that are principles generally accepted in India. This responsibility ● Evaluate the appropriateness of accounting policies used
Equity and the Statement of Cash Flows for the year ended on
relevant to our audit of the standalone financial statements under also includes maintenance of adequate accounting records in and the reasonableness of accounting estimates and related
that date, and a summary of the significant accounting policies
the provisions of the Act and the Rules made thereunder, and we accordance with the provisions of the Act for safeguarding the disclosures made by management.
and other explanatory information (hereinafter referred to as “the
Standalone Financial Statements”). have fulfilled our other ethical responsibilities in accordance with assets of the Company and for preventing and detecting frauds
these requirements and the ICAI’s Code of Ethics. We believe that and other irregularities; selection and application of appropriate ● Conclude on the appropriateness of management’s use of
the audit evidence we have obtained is sufficient and appropriate accounting policies; making judgments and estimates that the going concern basis of accounting and, based on the
In our opinion and to the best of our information and according to
to provide a basis for our audit opinion on the Standalone are reasonable and prudent; and design, implementation and audit evidence obtained, whether a material uncertainty
the explanations given to us, the aforesaid Standalone Financial
Financial Statements. maintenance of adequate internal financial controls, that were exists related to events or conditions that may cast significant
Results give the information required by the Companies Act,
operating effectively for ensuring the accuracy and completeness doubt on the ability of the Company to continue as a going
2013 (“the Act”) in the manner so required and give a true and
Key Audit Matters of the accounting records, relevant to the preparation and concern. If we conclude that a material uncertainty exists, we
fair view in conformity with the Indian Accounting Standards
presentation of the standalone financial statements that give are required to draw attention in our auditor’s report to the
prescribed under section 133 of the Act read with the Companies Key audit matters are those matters that, in our professional
a true and fair view and are free from material misstatement, related disclosures in the standalone financial statements
(Indian Accounting Standards) Rules, 2015, as amended, (“Ind AS”) judgment, were of most significance in our audit of the Standalone
whether due to fraud or error. or, if such disclosures are inadequate, to modify our opinion.
and other accounting principles generally accepted in India, of the Financial Statements of the current period. These matters were
Our conclusions are based on the audit evidence obtained up
state of affairs of the Company as at March 31, 2022 and its profit, addressed in the context of our audit of the Standalone Financial
In preparing the standalone financial statements, management to the date of our auditor’s report. However, future events or
total comprehensive income, changes in equity and its cash flows Statements as a whole, and in forming our opinion thereon, and
is responsible for assessing the Company’s ability to continue as a conditions may cause the Company to cease to continue as a
for the year ended on that date. we do not provide a separate opinion on these matters. We have
going concern, disclosing, as applicable, matters related to going going concern.
determined the matters described below to be the key audit
matters to be communicated in our report. concern and using the going concern basis of accounting unless
management either intends to liquidate the Company or to cease ● Evaluate the overall presentation, structure and content of the
operations, or has no realistic alternative but to do so. standalone financial statements, including the disclosures, and
Key Audit Matters Auditors’ Response whether the standalone financial statements represent the
The Board of Directors are also responsible for overseeing the underlying transactions and events in a manner that achieves
Revenue recognition: Principal Audit Procedures:
Refer note 2(i)(v) and note 25 of the standalone financial statements. We evaluated the design of internal controls over recognition of revenue in the Company’s financial reporting process. fair presentation.
The Company’s sales revenue mainly arose from sale of Bulk Drugs and appropriate period in accordance with the Company’s accounting policy. On
Chemical products. The Company recognizes sales revenue based on a sample basis, we tested the operating effectiveness of the internal control Auditor’s Responsibilities for the Audit of the Materiality is the magnitude of misstatements in the standalone
the terms and conditions of transactions, which vary with different relating to determination of point in time at which the transfer of control of Standalone Financial Statements financial statements that, individually or in aggregate, makes
customers. For sales transactions in a certain period around balance the goods occurs. it probable that the economic decisions of a reasonably
sheet date, it is essential to ensure whether the transfer of control of We tested the relevant information technology systems used in recording Our objectives are to obtain reasonable assurance about whether
knowledgeable user of the standalone financial statements may
the goods by the Company to the customer occurs before the balance revenue including company’s system generated reports, based on which the standalone financial statements as a whole are free from
be influenced. We consider quantitative materiality and qualitative
sheet date or otherwise. Considering that there is significant volume selection of samples was undertaken. material misstatement, whether due to fraud or error, and to
of sales transactions close to the year end, involving material amounts On sample basis, we performed test of details of sales recorded close to the factors in (i) planning the scope of our audit work and in evaluating
issue an auditor’s report that includes our opinion. Reasonable
and such revenue recognition is subject to whether transfer of control year-end through following procedures: the results of our work; and (ii) to evaluate the effect of any
assurance is a high level of assurance but is not a guarantee that
to the customers has occurred before the balance sheet date or i) Analysed the terms and conditions of the underlying contract with the identified misstatements in the standalone financial statements.
an audit conducted in accordance with SAs will always detect a
otherwise, we consider the risk of revenue from sale of goods being customer, and
recognised in the incorrect period, a key audit matter. ii) Verified evidence for transfer of control of the goods prior to the balance material misstatement when it exists. Misstatements can arise
We communicate with those charged with governance regarding,
sheet date or otherwise from relevant supporting documents. from fraud or error and are considered material if, individually or
among other matters, the planned scope and timing of the
in the aggregate, they could reasonably be expected to influence
audit and significant audit findings, including any significant
the economic decisions of users taken on the basis of these
Information Other than Financial Statements and In connection with our audit of the standalone financial deficiencies in internal control that we identify during our audit.
standalone financial statements.
Auditor’s Report Thereon statements, our responsibility is to read the other information and,
in doing so, consider whether the other information is materially We also provide those charged with governance with a statement
The Company’s Board of Directors is responsible for the other As part of our audit in accordance with SAs, we exercise
inconsistent with the standalone financial statements or our that we have complied with relevant ethical requirements
information. The other information comprises the information professional judgment and maintain professional skepticism
knowledge obtained during the course of our audit or otherwise regarding independence, and to communicate with them
included in the Management Discussion and Analysis, Board’s throughout the audit. We also:
appears to be materially misstated. all relationships and other matters that may reasonably be
Report including Annexures to Board’s Report, Business
thought to bear on our independence, and where applicable,
Responsibility Report, Corporate Governance and Shareholder’s ● Identify and assess the risks of material misstatement of the
If, based on the work we have performed, we conclude that there is related safeguard.
Information, but does not include the Consolidated Financial standalone financial statements, whether due to fraud or error,
Statements, Standalone Financial Statements and our auditor’s a material misstatement of this other information, we are required design and perform audit procedures responsive to those risks,
to report that fact. We have nothing to report in this regard. From the matters communicated with those charged with
report thereon. and obtain audit evidence that is sufficient and appropriate
governance, we determine those matters that were of most
to provide a basis for our opinion. The risk of not detecting a
significance in the audit of the standalone financial statements
Our opinion on the Standalone Financial Statements does not material misstatement resulting from fraud is higher than for
of the current period and are therefore the key audit matters.
cover the other information and we do not express any form of one resulting from error, as fraud may involve collusion, forgery,
We describe these matters in our auditor’s report unless law or
assurance conclusion thereon. intentional omissions, misrepresentations, or the override of
regulation precludes public disclosure about the matter or when,
internal control.

Independent Auditor’s Report (Contd.)
in extremely rare circumstances, we determine that a matter in the Auditor’s Report in accordance with Rule 11 our notice that has caused us to believe that 2. As required by the Companies (Auditor’s Report) Order,
should not be communicated in our report because the adverse of the Companies (Audit and Auditors) Rules, 2014, the representations under sub-clause (i) and 2020 (the “Order”) issued by the Central Government in
consequences of doing so would reasonably be expected to as amended in our opinion and to the best of our (ii) of Rule 11(e), as provided under (a) and (b) terms of Section 143(11) of the Act, we give in “Annexure B” a
outweigh the public interest benefits of such communication. information and according to the explanations given above, contain any material misstatement. statement on the matters specified in paragraphs 3 and 4 of
to us: the Order.
Report on Other Legal and Regulatory Requirements v. As stated in Note 2(i)(vi)(i) and note 14(b) to the
1. As required by Section 143(3) of the Act, based on our audit, i. The Company has disclosed the impact of standalone financial statements For and on behalf of
we report that: pending litigations on its financial position in its
Standalone Financial Statements – Refer Note 36 (a) The final dividend proposed in the previous Ashwani & Associates
a. We have sought and obtained all the information and year, declared and paid by the Company Chartered Accountants
explanations which to the best of our knowledge and ii. The Company did not have any long-term during the year is in compliance with Section Firm Registration Number: 000497N
belief were necessary for the purposes of our audit. contracts including derivative contracts for which 123 of the Act, as applicable. by the hand of
there were any material foreseeable losses.
b. In our opinion, proper books of account as required by (b) The interim dividend declared and paid by
law have been kept by the Company so far as it appears iii. There has been no delay in transferring amounts, the Company during the year and until the
from our examination of those books. required to be transferred, if any, to the Investor date of this report is in compliance with Sd/-
Education and Protection Fund by the company. Section 123 of the Act. Aditya Kumar
c. The Balance Sheet, the Statement of Profit and Loss Place: Ludhiana Partner
including Other Comprehensive Income, Statement of iv. (a) The Management has represented that, Dated: May 30th, 2022 Membership No.:506955
Changes in Equity and the Statement of Cash Flow dealt to the best of its knowledge and belief, no UDIN: 22506955AJXKAT7055
with by this Report are in agreement with the books funds (which are material either individually
of account. or in the aggregate) have been advanced or
loaned or invested (either from borrowed
d. In our opinion, the aforesaid standalone financial funds or share premium or any other
statements comply with the Ind AS specified under sources or kind of funds) by the Company
Section 133 of the Act, read with Rule 7 of the to or in any other person or entity, including
Companies (Accounts) Rules, 2014. foreign entity (“Intermediaries”), with the
understanding, whether recorded in writing
e. On the basis of the written representations received or otherwise, that the Intermediary shall,
from the directors as on 31st March 2022 taken on whether, directly or indirectly lend or invest
record by the Board of Directors, none of the directors is in other persons or entities identified in
disqualified as on March 31, 2022 from being appointed any manner whatsoever by or on behalf of
as a director in terms of Section 164 (2) of the Act. the Company (“Ultimate Beneficiaries”) or
provide any guarantee, security or the like on
f. With respect to the adequacy of the internal financial behalf of the Ultimate Beneficiaries;
controls over financial reporting of the Company and
the operating effectiveness of such controls, refer (b) The Management has represented, that,
to our separate Report in “Annexure A”. Our report to the best of its knowledge and belief, no
expresses an unmodified opinion on the adequacy funds (which are material either individually
and operating effectiveness of the Company’s internal or in the aggregate) have been received by
financial controls over financial reporting. the Company from any person or entity,
including foreign entity (“Funding Parties”),
g. With respect to the other matters to be included in the with the understanding, whether recorded
Auditor’s Report in accordance with the requirements in writing or otherwise, that the Company
of section 197(16) of the Act, as amended: shall, whether, directly or indirectly, lend or
invest in other persons or entities identified
In our opinion and to the best of our information in any manner whatsoever by or on behalf of
and according to the explanations given to us, the the Funding Party (“Ultimate Beneficiaries”)
remuneration paid by the Company to its directors or provide any guarantee, security or the like
during the year is in accordance with the provisions of on behalf of the Ultimate Beneficiaries;
section 197 of the Act.
(c) Based on the audit procedures that have
h. With respect to the other matters to be included been considered reasonable and appropriate
in the circumstances, nothing has come to

Annexure ‘A’ to the Independent Auditor’s Report Annexure ‘B’ to the Independent Auditor’s Report
(Referred to in paragraph 1(f) under ‘Report on Other Legal and Regulatory Requirements’ section of our report to the Members of IOL (Referred to in paragraph 2 under ‘Report on Other Legal and Regulatory Requirements’ section of our report to the Members of IOL
Chemicals and Pharmaceuticals Limited of even date) Chemicals and Pharmaceuticals Limited of even date)
Report on the Internal Financial Controls Over Meaning of Internal Financial Controls Over Financial To the best of our information and according to the information quarterly returns or statements filed by the Company
Financial Reporting under Clause (i) of Sub-section 3 of Reporting and explanations given to us by the company and the books of with such banks are in agreement with the books of
Section 143 of the Companies Act, 2013 (“the Act”) A company’s internal financial control over financial reporting is a account and records examined by us during the course of our account of the Company.
We have audited the internal financial controls over financial process designed to provide reasonable assurance regarding the audit, we state that:
reporting of IOL Chemicals and Pharmaceuticals Limited (“the reliability of financial reporting and the preparation of financial iii, The Company has made investments in companies but has
Company”) as of March 31, 2022 in conjunction with our audit of statements for external purposes in accordance with generally I. In respect of Company’s Property, Plant and Equipment and not granted unsecured loans to other parties, during the
the standalone financial statements of the Company for the year accepted accounting principles. A company’s internal financial Intangible Assets: year, in respect of which:
ended on that date. control over financial reporting includes those policies and
procedures that (1) pertain to the maintenance of records that, a. (A) The Company has maintained proper records (a) The Company has not provided any loans or advances
Management’s Responsibility for Internal Financial in reasonable detail, accurately and fairly reflect the transactions showing full particulars, including quantitative in the nature of loans or stood guarantee, or provided
Controls and dispositions of the assets of the company; (2) provide details and situation of Property, Plant and security to any other entity during the year, and
reasonable assurance that transactions are recorded as necessary Equipment and relevant details of right-of- hence reporting under clause 3(iii)(a) of the order is
The Management of the Company is responsible for establishing
to permit preparation of financial statements in accordance with use assets. not applicable.
and maintaining internal financial controls based on the internal
control over financial reporting criteria established by the generally accepted accounting principles, and that receipts and
expenditures of the company are being made only in accordance (B) The Company has maintained proper records (b) In our opinion, the investments made and the terms
Company considering the essential components of internal
with authorizations of management and directors of the company; showing full particulars of intangible assets. and conditions of the grant of loans, during the year are,
control stated in the Guidance Note on Audit of Internal Financial
and (3) provide reasonable assurance regarding prevention or prima facie, not prejudicial to the Company’s interest.
Controls Over Financial Reporting issued by the Institute of
timely detection of unauthorized acquisition, use, or disposition b. The Company has a regular program of physical
Chartered Accountants of India. These responsibilities include the
of the company’s assets that could have a material effect on the verification of the Property, Plant and Equipment and (c) The company has not granted any loans during the
design, implementation and maintenance of adequate internal
financial statements. Right-of-Use Assets at reasonable intervals. Pursuant year, and hence reporting under clause 3(iii)(c) of the
financial controls that were operating effectively for ensuring
to this program, certain Property, Plant and Equipment order is not applicable.
the orderly and efficient conduct of its business, including
Inherent Limitations of Internal Financial Controls were physically verified during the year, and, no material
adherence to company’s policies, the safeguarding of its assets,
Over Financial Reporting discrepancies were noticed on such verification. (d) The Company has not granted any loans during the
the prevention and detection of frauds and errors, the accuracy
year, hence there is no overdue amount remaining
and completeness of the accounting records, and the timely Because of the inherent limitations of internal financial controls
c. Based on our examination of the, registered sale deed outstanding as at balance sheet date, and hence
preparation of reliable financial information, as required under the over financial reporting, including the possibility of collusion
/ transfer deed / conveyance deed provided to us, reporting under clause 3(iii)(d) of the order is
Companies Act, 2013. or improper management override of controls, material
we report that, the title in respect of self-constructed not applicable.
misstatements due to error or fraud may occur and not be
buildings and title deeds of all other immovable
Auditor’s Responsibility detected. Also, projections of any evaluation of the internal
properties (other than properties where the company is (e) The Company which has not renewed or extended or
Our responsibility is to express an opinion on the Company’s financial controls over financial reporting to future periods are
the lessee and the lease agreements are duly executed granted fresh loans to settle the overdues of existing
internal financial controls over financial reporting of the Company subject to the risk that the internal financial control over financial
in favour of the lessee), disclosed in the financial loans given to the same parties and hence reporting
based on our audit. We conducted our audit in accordance with reporting may become inadequate because of changes in
statements included under Property, Plant and under clause 3(iii)(e) of the order is not applicable.
the Guidance Note on Audit of Internal Financial Controls Over conditions, or that the degree of compliance with the policies or
Equipment are held in the name of the Company as at
Financial Reporting (the “Guidance Note”) issued by the Institute procedures may deteriorate.
the balance sheet date. (f) The Company has not granted any loans or advances
of Chartered Accountants of India and the Standards on Auditing in the nature of loans either repayable on demand or
prescribed under Section 143(10) of the Companies Act, 2013, to Opinion
d. The company has not revalued its Property, Plant without specifying any terms or period of repayment
the extent applicable to an audit of internal financial controls. In our opinion, to the best of our information and according to and Equipment (including Right of Use assets) and during the year. Hence, reporting under clause 3(iii)(f) is
Those Standards and the Guidance Note require that we comply the explanations given to us, the Company has, in all material intangible assets during the year, not applicable.
with ethical requirements and plan and perform the audit to respects, an adequate internal financial controls system over
obtain reasonable assurance about whether adequate internal financial reporting and such internal financial controls over e. No proceedings have been initiated during the year or iv. The Company has not granted any loans specified in Section
financial controls over financial reporting was established financial reporting were operating effectively as at March 31, 2022, are pending against the Company as at March 31, 2022 185 of the Companies Act, 2013.
and maintained and if such controls operated effectively in all based on the criteria for internal control over financial reporting for holding any benami property under the Benami
material respects. criteria established by the Company considering the essential Transactions (Prohibition) Act, 1988 (45 of 1988) and The company has complied with section 186 of the
components of internal control stated in the Guidance Note on rules made thereunder. Companies Act, 2013 in respect investments made. The
Our audit involves performing procedures to obtain audit Audit of Internal Financial Controls Over Financial Reporting company has not given any guarantee and any security to
evidence about the adequacy of the internal financial controls issued by the Institute of Chartered Accountants of India. ii. (a) The inventory has been physically verified by the any person.
system over financial reporting and their operating effectiveness. management during the year. In our opinion,
Our audit of internal financial controls over financial reporting For and on behalf of the frequency of verification is reasonable, and, v. The Company has not accepted any deposits or amounts
included obtaining an understanding of internal financial the coverage and procedure of such verification is which are deemed to be deposits from the public. Hence,
controls over financial reporting, assessing the risk that a material Ashwani & Associates appropriate having regard to the size of the Company reporting under Clause 3(v) of the order is not applicable.
weakness exists, and testing and evaluating the design and Chartered Accountants and the nature of its operation. No discrepancies of 10%
operating effectiveness of internal control based on the assessed Firm Registration Number: 000497N or more in the aggregate for each class of inventory vi. We have broadly reviewed the books of account maintained
risk. The procedures selected depend on the auditor’s judgement, by the hand of were noticed between the physical stock of inventory by the Company pursuant to the Rules made by the Central
including the assessment of the risks of material misstatement of and the books of accounts. Government for the maintenance of Cost records under
the financial statements, whether due to fraud or error. Sd/- section 148 of the Companies Act, 2013 and are of the
Aditya Kumar (b) The Company has been sanctioned working capital opinion that prima facie, the prescribed accounts and
We believe that the audit evidence we have obtained, is sufficient Place: Ludhiana Partner limits in excess of five crore rupees, in aggregate, from records have been made and maintained. We have, however,
and appropriate to provide a basis for our audit opinion on the Dated: May 30th, 2022 Membership No.:506955 banks on the basis of security of current assets. In our not made a detailed examination of such records with a view
internal financial controls system over financial reporting of UDIN: 22506955AJXKAT7055 opinion and as per the information provided to us, the to determine whether they are accurate or complete.
the Company.

Annexure ‘B’ to the Independent Auditor’s Report (Contd.)
vii. In respect of statutory dues: (b) During the year, the company has not made any xviii. T here has been no resignation of the statutory auditors Schedule VII to the Companies Act in compliance with
preferential allotment or private placement of shares during the year and accordingly reporting under clause second proviso to sub-section (5) of Section 135 of the
a) In our opinion, the Company has generally been regular or convertible debentures (fully or partly or optionally) 3(xviii) of the order is not applicable. said Act. Accordingly, reporting under clause 3(xx)(a) of
in depositing undisputed statutory dues, including and hence reporting under clause 3(x)(b) of the Order is the Order is not applicable for the year.
Goods and Services tax, Provident Fund, Employees’ not applicable. xix. On the basis of the financial ratios, ageing and expected
State Insurance, Income Tax, Sales Tax, Service Tax, duty dates of realization of financial assets and payment of (b) In respect of ongoing projects, the Company has
of Custom, duty of Excise, Value Added Tax, Cess and xi. (a) No fraud by the Company and no material fraud on the financial liabilities, other information accompanying the transferred unspent Corporate Social Responsibility
other material statutory dues applicable to it with the Company has been noticed or reported during the year. standalone financial statements, our knowledge of the (CSR) amount as at the end of the previous financial
appropriate authorities. Board of Directors and management plans and based on our year, to a Special account within a period of 30 days
(b) No report under sub-section (12) of section 143 of examination of the evidence supporting the assumptions, from the end of the said financial year in compliance
There were no undisputed amounts payable in respect the Companies Act has been filed in Form ADT-4 as nothing has come to our attention, which causes us to with the provision of section 135(6) of the Act. (Refer
of Goods and Services Tax, Provident Fund, Employees’ prescribed under rule 13 of Companies (Audit and believe that any material uncertainty exists as on the date of Note no: 48)
State Insurance, Income Tax, Sales Tax, Service Tax, duty Auditors) Rules, 2014 with the Central Government, the audit report that company is not capable of meeting its
of Custom, duty of Excise, Value Added Tax, Cess and during the year and up to the date of this report. liabilities existing at the date of balance sheet as and when For and on behalf of
other material statutory dues in arrears as at March they fall due within a period of one year from the balance
31,2022 for a period of more than six months from the (c) No whistle-blower complaints were received during sheet date. We, however, state that this is not an assurance Ashwani & Associates
date they become payable. the year by the Company. as to the future viability of the company. We further state Chartered Accountants
that our reporting is based on the facts up to the date of Firm Registration Number: 000497N
(b) There are no statutory dues referred to in sub clause(a) xii. The Company is not a Nidhi Company. Therefore, the the audit report and future events or conditions that may by the hand of
above which have not been deposited on account of provisions of clause 3(xii) of the Order are not applicable to cause the Company to cease to continue as a going concern.
a dispute. the Company. We neither give any guarantee nor any assurance that all
the liabilities falling due within a period od one year from
viii. There were no transactions relating to previously unrecorded xiii. The Company is in compliance with the provisions of balance sheet date, will get discharged by the company as Sd/-
income that have been surrendered or disclosed as income sections 177 and 188 the Companies Act,2013 with respect to and when they fall due. Aditya Kumar
during the year in the tax assessments under the Income Tax applicable transactions with related parties and the details Place: Ludhiana Partner
Act, 1961. of such related party transactions have been disclosed in xx. (a) There are no unspent amounts towards Corporate Dated: May 30th, 2022 Membership No.:506955
the standalone financial statements as required by the Social Responsibility (CSR) on other than ongoing UDIN: 22506955AJXKAT7055
ix. (a) The company has not defaulted in any repayment of applicable accounting standards. projects requiring a transfer to a Fund specified in
loans or other borrowings or in the payment of interest
thereon to any lender. xiv. (a) In our opinion, the company has an adequate internal
audit system which commensurate with the size and
(b) The company has not been declared as a wilful defaulter nature of its business.
by any bank or financial institution or government or
any government authority. (b) We have considered, the internal audit reports for the
year under audit, issued to the Company during the
(c) The Company has not taken any term loan during the year and till date, in determining the nature, timing and
year and there are no outstanding term loans at the extent of our audit procedures.
beginning of the year and hence, reporting under
clause 3(ix)(c) of the Order is not applicable. xv. In our opinion, during the year the Company has not entered
into any non-cash transaction with its directors or persons
(d) On an overall examination of the financial statements connected with its directors and hence the reporting under
of the Company, funds raised on short-term basis have, clause 3(xv) is not applicable to the Company.
prima facie, not been used during the year for long-
term purposes by the Company. xvi. (a) In our opinion, the Company is not required to be
registered under section 45-IA of the Reserve Bank of
(e) On an overall examination of the financial statements India Act, 1934. Hence, reporting under clause 3(xvi)(a),
of the Company, the company has not taken any funds (b) and (c) of the Order is not applicable.
from any entity or person on account of or to meet the
obligations of its subsidiaries and hence, reporting (b) In our opinion, there is no core investment company
under clause 3(ix)(e) of the Order is not applicable. within the Group (as defined in the Core Investment
Companies (Reserve Bank) Directions, 2016) and
(f) The Company has not raised loans during the year and accordingly reporting under clause 3(xvi)(d) of the
hence reporting under clause 3(ix)(f) of the Order is Order is not applicable.
not applicable.
xvii. T he Company has not incurred cash losses during the
x. (a) The Company has not raised any money by way of financial year covered by our audit and the immediately
initial public offer or further public offer (Including preceding financial year.
Debt instruments) during the year and hence reporting
under clause 3(x)(a) of the Order is not applicable.

Standalone Balance Sheet Standalone Statement of Profit and Loss

as at 31st March, 2022 for the year ended 31st March, 2022
in ` Crore
Note As at As at in ` Crore
Particulars
No. 31-Mar-2022 31-Mar-2021 Note For the year ended For the year ended
Particulars
ASSETS No. 31-Mar-2022 31-Mar-2021
1 Non-current assets Income:
(a) Property, plant and equipment 3.1 559.49 509.75 I Revenue from operations 25 2,184.02 1,966.98
(b) Right of use assets 4 0.97 2.40 II Other income 26 32.04 24.30
(c) Capital work-in-progress 3.3 102.03 48.27
III Total income (I+II) 2,216.06 1,991.28
(d) Other Intangible assets 3.2 0.18 0.21
(e) Intangible assets under development 3.4 3.17 - IV Expenses:
(f )Financial assets Cost of materials consumed 27 1,578.91 1,119.95
(i) Investment in subsidiary 8A 0.10 - Purchase of stock-in-trade 43.90 -
(ii) Other financial assets 5 205.34 22.13
(g) Other non-current assets 6 10.30 17.43 Changes in inventories of finished goods, work in progress and stock in trade 28 (52.30) (17.11)
Total non-current assets 881.58 600.19 Employee benefits expense 29 141.30 115.55
2 Current assets Finance cost 30 8.29 5.83
(a) Inventories 7 409.89 295.15 Depreciation and amortization expenses 3 43.26 38.92
(b) Financial assets Other expenses 31 215.93 156.75
(i) Investments 8B 2.37 1.22 Total expenses (IV) 1,979.29 1,419.89
(ii) Trade receivables 9 469.80 300.31
(iii) Cash and cash equivalents 10 1.45 32.34 V Profit before exceptional items and tax (III-IV) 236.77 571.39
(iv) Bank balances other than (iii) above 11 136.43 332.40 VI Exceptional items 35 13.93 -
(v) Other financial assets 12 22.98 33.67 VII Profit before tax (V-VI) 222.84 571.39
(c) Current tax assets (net) 24 0.91 -
VIII Tax expense:
(d) Other current assets 13 34.88 14.81
Total current assets 1,078.71 1,009.90 Current tax 57.01 145.55
Total Assets 1,960.29 1,610.09 Deferred tax 0.17 (18.72)
EQUITY AND LIABILITIES Total tax expense (VIII) 32 57.18 126.83
Equity IX Profit for the period (VII-VIII) 165.66 444.56
(a) Equity share capital 14 58.71 58.71 X Other Comprehensive Income / (loss)
(b) Other equity 15 1,331.56 1,201.72 A Items that will not be reclassified to profit or loss
Total equity 1,390.27 1,260.43
i) Remeasurement gain/(loss) of defined benefit obligation (1.32) (2.18)
Liabilities
ii) Income tax relating to items that will not be reclassified to profit or loss 32 0.33 0.55
1 Non-current liabilities
(a) Financial liabilities B Items that will be reclassified to profit or loss
(i) Borrowings - - i) Net movement in effective portion of cash flow hedge reserve 0.51 (0.66)
(ia) Lease liabilities 16 0.18 1.83 ii) Income tax relating to items that will be reclassified to profit or loss 32 (0.12) 0.15
(b) Provisions 17 3.01 3.68
(c) Deferred tax liabilities (net) 32 53.18 53.22 Total other comprehensive income/(loss) for the year, net of tax (X) (0.60) (2.14)
(d) Other non-current liabilities 18 0.25 0.38 XI Total Comprehensive Income for the period (IX+X) 165.06 442.42
Total non-current liabilities 56.62 59.11 XII Earnings per equity share of ₹10/- each 33
2 Current liabilities - Basic ₹ 28.22 76.21
(a) Financial liabilities
(i) Borrowings 19 42.75 - - Diluted ₹ 28.22 76.21
(ia) Lease liabilities 16 1.02 0.90 Weighted average equity shares used in computing earnings per equity share
(ii) Trade payables 20 - Basic 5,87,05,502 5,83,30,472
(A) Total outstanding dues of micro enterprises and small enterprises 14.10 11.70 - Diluted 5,87,05,502 5,83,30,472
(B) Total outstanding dues of creditors other than micro enterprises and small 395.19 227.13
enterprises Corporate information 1
(iii) Other financial liabilities 21 30.02 28.82 Significant accounting policies 2
(b) Other current liabilities 22 22.98 11.28 See accompanying notes forming part of standalone financial statements
(c) Provisions 23 7.34 6.06
(d) Current tax liabilities (net) 24 - 4.66 As per our report of even date attached For and on behalf of the Board of Directors
Total current liabilities 513.40 290.55 For Ashwani & Associates
Total Equity and Liabilities 1,960.29 1,610.09 Firm Registration Number: 000497N
Corporate information 1 Sd/- Sd/-
Significant accounting policies 2 Varinder Gupta Vikas Gupta
Sd/- Managing Director Executive Director
See accompanying notes forming part of standalone financial statements Aditya Kumar DIN-00044068 DIN-07198109
Partner
M.No. 506955
As per our report of even date attached For and on behalf of the Board of Directors Sd/- Sd/- Sd/-
For Ashwani & Associates Abhay Raj Singh Pardeep Kumar Khanna Dr. Sanjay Chaturvedi
Chartered Accountants Vice President & Company Secretary Chief Financial Officer Executive Director & CEO
Firm Registration Number: 000497N Place : Ludhiana DIN-08927689
Sd/- Sd/- Date : 30th May 2022
Varinder Gupta Vikas Gupta
Aditya Kumar DIN-00044068 DIN-07198109
Partner
M.No. 506955
Sd/- Sd/- Sd/-
Abhay Raj Singh Pardeep Kumar Khanna Dr. Sanjay Chaturvedi
Vice President & Company Secretary Chief Financial Officer Executive Director & CEO
Place : Ludhiana DIN-08927689
Date : 30th May 2022

Standalone Statement of Changes in Equity Standalone Statement of Changes in Equity

for the year ended 31-March-2022 for the year ended 31-March-2022
A. Equity Share capital (2) Previous reporting period Standalone Statement of changes in Other Equity for the year ended 31-March-2021
(1) Current reporting period Other equity
Reserves and Surplus Other comprehensive income
Balance as at beginning of Changes in Equity Share Capital Restated balance at the beginning Changes in equity share capital Balance as at the end of the Total
Particulars Effective Monies received
the current year 01/04/2021 due to prior period errors of the current reporting period during the current year current year 31/03/2022 ` (Crore)
Capital Securities Retained Remeasurement of portion of cash against Share
58.71 - 58.71 - 58.71 reserve premium Earnings Defined benefit obligation flow hedge warrants
reserve
(2) Previous reporting period Balance as at beginning of the 10.76 190.27 550.23 (3.85) (0.08) 9.32 756.65
previous year 01/04/2020
Balance as at beginning Changes in Equity Share Restated balance at the Changes in equity share Balance as at the end of the
of the previous year Capital due to prior period beginning of the current capital during the current year previous year 31/03/2021 Remeasurement gain/(loss) of (1.63) (1.63)
01/04/2020 errors reporting period defined benefit obligation (net of
income tax) (Refer note no.37)
56.89 - 56.89 1.82 58.71
Net movement in effective portion (0.51) (0.51)
of cash flow hedge reserve (net of
B. Other Equity
income tax){Refer note no.42(i)}
(1) Current reporting period Standalone Statement of changes in Other Equity for the year ended 31-March-2022 Dividend paid on equity shares (23.48) (23.48)
Other equity
Profit for the year transferred from 444.56 444.56
Reserves and Surplus Other comprehensive income statement of profit and loss
Monies received Total
Particulars Effective Issuance of equity share capital 35.45 35.45
against Share ` (Crore)
Capital Securities Retained Remeasurement of portion of cash during the year
reserve premium Earnings Defined benefit obligation flow hedge warrants
reserve Received during the year 27.95 27.95
Balance as at beginning of the 10.76 225.72 971.31 (5.48) (0.59) - 1,201.72 Converted into equity share capital (37.27) (37.27)
current year 01/04/2021 Balance as at the end of the 10.76 225.72 971.31 (5.48) (0.59) - 1,201.72
Remeasurement gain/(loss) of (0.99) (0.99) previous year 31/03/2021
defined benefit obligation (net of
income tax) (Refer note no.37) As per our report of even date attached For and on behalf of the Board of Directors
Net movement in effective portion 0.39 0.39 For Ashwani & Associates
of cash flow hedge reserve (net of Chartered Accountants
Firm Registration Number: 000497N
income tax){Refer note no.42(i)} Sd/- Sd/-
Dividend paid on equity shares (35.22) (35.22) Varinder Gupta Vikas Gupta
Profit for the year transferred from 165.66 165.66 Aditya Kumar DIN-00044068 DIN-07198109
statement of profit and loss Partner
Balance as at the end of the current 10.76 225.72 1,101.75 (6.47) (0.20) - 1,331.56 M.No. 506955
year 31/03/2022 Sd/- Sd/- Sd/-
Place : Ludhiana DIN-08927689

Standalone Cash Flow Statement Standalone Cash Flow Statement

in ` Crore in ` Crore
For the year ended For the year ended For the year ended For the year ended
Particulars Particulars
31-Mar-2022 31-Mar-2021 31-Mar-2022 31-Mar-2021
Cash flow from financing activities
Cash flow from operating activities
Proceeds from issuance of share capital and warrants - 27.95
Profit before tax 222.84 571.39
Repayment of non current borrowings - (0.07)
Adjustments for: Proceeds/(Repayment) of current borrowings 42.75 (55.92)
Depreciation and amortisation expense 43.26 38.92 Interest paid (8.11) (5.70)
Net (Gain)/Loss on current investment - (0.01) Lease rent payments (1.06) (1.06)
Unrealised foreign exchange (Gain)/Loss on foreign currency (1.28) (1.74) Dividend paid on Equity shares (35.22) (23.48)
rate fluctuation
Net (Gain)/Loss on fair valuation of investments measured at (0.02) -
Net cash flow from/(used in) financing activities (C) (1.64) (58.28)
fair value through profit or loss
Subsidy Income amortized (0.07) (0.07) Net increase/(decrease) in cash and cash equivalents (30.89) 4.25
Interest income on financial assets carried at amortized cost net (0.08) (0.07) (A+B+C)
of rent amortized during the period Cash and cash equivalents at the beginning of the period 32.34 28.09
Unpaid Premium on Foreign exchange forward contracts - 0.53 Cash and cash equivalents at the end of the period * 1.45 32.34
Liabilities no longer required written back (0.03) (0.44) * Comprises
Lease Liability Provision written back (0.08) - Balances with banks in current account 1.03 15.88
Net (Gain)/Loss on Property, plant and equipment sold 0.24 (0.05) Balances with bank in deposit accounts - 15.03
Loss on Property, plant and equipment discarded 0.85 0.15 with original maturity of three months or less
Interest expense 8.29 5.83 Cash on hand 0.42 1.43
Interest income (17.96) (15.90) 1.45 32.34
33.12 27.15
Operating profit before working capital changes 255.96 598.54 As per our report of even date attached For and on behalf of the Board of Directors
For Ashwani & Associates
Changes in working capital: Chartered Accountants
Increase/(Decrease) in trade payables and other liabilities 183.19 60.61 Firm Registration Number: 000497N
Sd/- Sd/-
Decrease/(Increase) in trade and other receivables (170.78) (29.50) Varinder Gupta Vikas Gupta
Decrease/(Increase) in inventories (114.75) (107.62) Sd/- Managing Director Executive Director
Aditya Kumar DIN-00044068 DIN-07198109
(102.34) (76.51) Partner
153.62 522.03 M.No. 506955
Cash generated from operations Sd/- Sd/- Sd/-
Income tax paid (net) (62.58) (142.25) Abhay Raj Singh Pardeep Kumar Khanna Dr. Sanjay Chaturvedi
Net cash flow from/(used in) operating activities (A) 91.04 379.78 Place : Ludhiana DIN-08927689
Cash flow from investing activities
Purchase of property, plant and equipment including intangible (153.29) (108.21)
assets and Capital work in progress
Proceeds from sale of property, plant and equipment 1.89 0.78
Proceeds from sale of investments - 0.06
Purchase of investment (1.24) (1.22)
Interest received 18.60 12.95
Bank balances not considered as cash and cash

equivalents:
Decrease in deposit with banks, having original maturity more 23.55 (220.07)
than three months
Increase in deposit with banks, in earmarked accounts to the (9.80) (1.54)
extent held as margin money against borrowings and other
commitments
Net cash flow from/(used in) investing activities (B) (120.29) (317.25)

Notes Notes
forming part of the standalone financial statements as at and for the year ended 31st March, 2022 forming part of the standalone financial statements as at and for the year ended 31st March, 2022
Note 1: Corporate information involving complex and subjective judgements and use of ii) Interest comprehensive income and are not reclassified
IOL Chemicals and Pharmaceuticals Limited (“the Company”) (CIN: assumptions in these standalone financial statements have Interest from customer to profit or loss in subsequent periods. The actual
L24116PB1986PLC007030) is a public company domiciled in India been disclosed in notes. Accounting estimates could change return of the portfolio of plan assets, in excess of
Revenue from interest is recognised on a time
and incorporated on 29 th September, 1986 under the provisions from period to period. Actual results could differ from those the yields computed by applying the discount rate
proportion basis taking into account the amount
of the Companies Act, 1956. The shares of the company are listed estimates. Appropriate changes in estimates are made as used to measure the defined benefit obligations is
outstanding and rate applicable.
on two stock exchanges in India i.e. at National Stock Exchange management become aware of changes in circumstances recognized in Other Comprehensive Income.
of India Limited (NSE) and at BSE Limited (BSE). The company is surrounding the estimates. Changes in estimates are
Other interest
engaged in the manufacturing and selling of Pharmaceutical and reflected in the standalone financial statements in the period ii) Compensated absences
in which changes are made, and if material, their effects are Interest income is recognised using effective interest
Chemical products. The company caters to both domestic and The employees of the company are entitled to
disclosed in the notes to the standalone financial statements. rate (EIR).
international market. compensated absences. The employee can carry
forward a portion of unutilised accumulated
V. Revenue recognition from operations iii). Insurance and other claims
The registered office of the company is situated at Village & compensated absences and utilise it in future
Post Office Handiaya, Fatehgarh Chhanna Road, Barnala-148107, i. Revenue from sale of goods and services Insurance and other claims are recognized when period or encash the leaves on retirement or
Punjab. there exist no significant uncertainty with regard on termination. Compensated absences which
Revenue from contracts with customer is recognized
to the amount to be realized and the ultimate are not expected to occur within twelve months
when control of goods or services are transferred to the
The standalone financial statements are approved for issue by the collection thereof. after the end of the period in which the employee
customer at an amount that reflects the consideration
Company’s Board of Directors on 30th May, 2022. entitled in exchange for those goods or services, and renders the related services are recognised as
VII. Retirement and other employee benefits a liability at the Balance Sheet date, the cost
excludes taxes and levies collected on behalf of the
Note 2 (i): Significant accounting policies / critical Government. In accordance with Ind AS 115 on revenue l Defined contribution plans of providing benefit is determined based on
accounting estimates and judgements and schedule III of Companies Act 2013, duties levies Provident fund: actuarial valuation using projected unit credit
I. Statement of compliance like GST are not part of revenue. method. Actuarial gain /loss are recognised in the
Employees receive benefit in the form of Provident
statement of profit or loss in the period in which
The standalone financial statements of the company have fund which is a defined contribution plan. The company
Generally, control is transfer upon shipment of goods they occur. Non accumulating compensated
been prepared in accordance with the Indian Accounting has no obligation, other than the contribution payable
to the customer or when the goods are made available absences are recognised in the period, in which
Standards (IND AS) specified under section 133 of the to the provident fund. The company recognises
to the customer, provided the transfer of the title to the the absences occur.
Companies Act, 2013 (“the Act”) read with the Companies contribution payable to the provident fund scheme
(Indian Accounting Standard) Rules, 2015, as amended from customer occurs and the company has not retained any as an expense, when an employee renders the
significant title of ownership or future obligations with VIII. Property, plant and equipment
time to time. The standalone financial statements have been related service.
prepared on going concern basis and all the applicable Ind AS respect to the goods shipped. All items of property, plant and equipment are stated at
effective as on the reporting date have been complied with. l Defined benefit plans cost less accumulated depreciation and impairment if any.
Revenue from rendering of services is recognized Freehold land is stated at cost and not depreciated. The Cost
i) Gratuity:
II. Basis of preparation of standalone financial overtime by measuring the progress towards complete of an item of Property, Plant and Equipment comprises:
satisfaction of performance obligations at the The Company provides for gratuity a defined
statements
reporting period. benefit retirement plan “The gratuity plan” a) Its purchase price net of recoverable taxes wherever
The standalone financial statements have been prepared covering eligible employees. The gratuity plan applicable and any attributable expenditure (directly
under the historical cost convention on accrual basis except provides for lump sum payment to vested
Revenue is measured at the amount of consideration or indirectly) for bringing the asset to its working
for certain financial instruments which are measured at employee at retirement, death, incapacitation or
which the company expects to be entitled to in condition for its intended use.
fair value. termination of employee of an amount based on
exchange for transferring distinct goods or services
to a customer as specified in the contract, excluding the respective employees’ salary and the tenure of b) S ubsequent expenditures relating to property, plant
Accounting policies have been consistently applied except employment with the company.
amounts collected on behalf of third parties. and equipment is capitalized only when it is probable
where a newly issued accounting standard is initially
Consideration is generally due upon satisfaction of that future economic benefits associated with these
adopted or revision to an existing accounting standard Liability with regard to Gratuity Plan is determined
performance obligations and a receivable is recognized will flow to the Company and the cost of the item can
requires a change in the accounting policy hitherto in use. by actuarial valuation, performed by an
when it becomes unconditional. Generally the credit be measured reliably.
period varies between 0-90 days from the shipment or independent actuary at each Balance sheet date
III. Functional and presentation currency using the project unit credit method.
delivery of goods or services as the case may be. c) Initial estimate of the costs of dismantling and
The functional currency of the company is Indian rupee (INR). removing the item and restoring the site on which it is
The standalone financial statements are presented in Indian In case of discounts, rebates, credits, price incentives The company fully contributes all ascertained located, if any, the obligation for which an entity incurs
rupees (INR) and all values are rounded to nearest crore up to or similar terms, considerations are determined based l i a b i l i t i e s to t h e I O L Ch e m i c a ls a n d either where the item is acquired or as a consequence
two decimals, unless otherwise stated. on its most likely amount, which is assessed at each Pharmaceuticals Ltd Group Gratuity Trust. of having used the item during a particular period for
reporting period. Contributions are invested in a scheme with Life purposes other than to produce inventories during
IV. Use of estimates and judgements Insurance Corporation of India as permitted by that period.
The preparation of standalone financial statements, in ii. Export incentives Indian Law
conformity with Ind AS requires management to make The revenue in respect of export benefits is recognised Depreciation on property, plant and equipment has been
estimates, judgements and assumptions. These estimates, The Company recognises the net obligation of a provided on the straight line method as per the useful life
on post export basis at the rate at which the
judgements and assumptions affect the application of defined benefit plan in its standalone Balance prescribed in Schedule II to the Companies Act, 2013 except
entitlements accrue.
accounting policies and the reported amounts of assets and sheet as an asset or liability. Gains and losses in respect of the following categories of asset, in whose case
liabilities, the disclosures of contingent assets and liabilities at through re-measurements of the net defined the life of the assets has been assessed as under based on
VI. Other income
the date of the financial statements and reported amounts of benefit liability/ (asset) are recognized in other technical advice, taking into account the nature of the asset,
I. Dividend
revenues and expenses during the period. The application of
accounting policies that require critical accounting estimates Dividend income from investment is recognised when
the right to receive the payment is established.

Notes Notes
the estimated usage of the asset, the operating conditions XI. Dividend to equity holders of the Company the economic benefits from use of the asset through foreign currency amount the exchange rate between the
of the asset, past history of replacement and maintenance The Company recognises a liability to make dividend the period of the lease and (iii) the Company has the functional currency and the foreign currency at the date of
support, etc.: distributions to equity holders of the Company when the right to direct the use of the asset. the transaction.
distribution is authorised and the distribution is no longer at
As per At the date of commencement of the lease, the Monetary items denominated in foreign currency are
management the discretion of the Company. As per the corporate laws in
estimate India a distribution is authorised when it is approved by the Company recognizes a right-of-use (ROU) asset and a restated using the prevailing exchange rate as on balance
General plant & equipment on triple shift basis 15 years shareholders, However, Board of Directors of a Company may corresponding lease liability for all lease arrangements sheet date.
declare interim dividend during any financial year out of the in which it is a lessee, except for leases with a term of 12
General plant & equipment on continuous process 15 years
surplus in statement of profit and loss and out of the profits months or less (short-term leases) and low value leases. Exchange differences arising on the settlement of monetary
of the financial year in which such interim dividend is sought For these short term and low-value leases, the Company items or on reinstatement of monetary items at rates
Depreciation is calculated on pro-rata basis from the date of recognizes the lease payments as an operating expense different from rates at which these were translated on
to be declared. A corresponding amount is recognised
installation till the date the asset sold or discarded. on a straight-line basis over the term of the lease. initial recognition during the period or reported in previous
directly in equity.
Certain lease arrangements include the options to standalone financial statements as recognised in the
Advances paid towards the acquisition of property, plant extend or terminate the lease before the end of the standalone statement of profit or loss in the period in which
XII. Government grants
and equipment outstanding at each balance sheet date is lease term. ROU assets and lease liabilities include these they arise.
classified as capital advances under other non-current assets The government grants are recognised only when there
options when it is reasonably certain that they will be
and the cost of assets not put to use before such date are is a reasonable assurance of compliance that conditions
exercised. The ROU assets are initially recognized at Foreign exchange differences regarded as an adjustment to
disclosed under Capital work-in-progress. The depreciation attached to such grants shall be complied with and it is
cost, which comprises the initial amount of the lease borrowing costs are presented in the standalone statements
method, useful lives and residual value are reviewed reasonably certain that the ultimate collection will be made.
liability adjusted for any lease payments made at or of profit and loss, within finance cost. All other foreign
periodically and at the end of each reporting period. prior to the commencement date of the lease plus exchange gains and losses are presented in the standalone
Government grants related to revenue are recognised on
any initial direct costs less any lease incentives. They statement of profit and loss on net basis.
iX. Intangible assets a systematic basis in the statement of profit and loss over
are subsequently measured at cost less accumulated
the periods necessary to match them with the related costs
Intangible assets are stated at cost less accumulated amount depreciation and impairment losses. Non-monetary items are measured in terms of historical cost
which they are intended to compensate.
of amortisation and impairment if any. Intangible assets are in a foreign currency is translated using the exchange rate at
amortised over their respective individual estimated useful ROU assets are depreciated from the commencement the date of the transaction.
Government grant in relation to fixed asset is treated as
lives on a straight line basis, from the date that they are date on a straight-line basis over the shorter of the lease
deferred income and is recognised in the statement of profit
available for use. The estimated useful life of an identifiable term and useful life of the underlying asset. ROU assets In case of an asset, expenses or income where a non-
and loss on a systematic basis over the useful life of the asset.
intangible asset is based on a number of factors including are evaluated for recoverability whenever events or monetary advance is paid/ received, the date of transaction
the effects of obsolescence etc. The amortization method, changes in circumstances indicate that their carrying is the date on which the advance was initially recognized.
XIII. Borrowing costs
estimated useful lives are reviewed periodically and at end of amounts may not be recoverable. If there were multiple payments or receipts in advance,
each reporting period. Borrowing costs that are directly attributable to the multiple dates of transactions are determined for each
acquisition or construction of a qualifying asset are The lease liability is initially measured at amortized cost payment or receipt of advance consideration.
The estimated useful life of intangible assets is as follows: capitalised as a part of cost of such asset. Qualifying asset at the present value of the future lease payments. The
is one that takes substantial period of time to get ready for lease payments are discounted using the interest rate XVII. Accounting for taxes on income
Intangible assets Estimated useful life its intended use. All other borrowing costs are recognised implicit in the lease. Income tax expense comprises current income tax and
Software 6 years as expenditure in the period in which these are incurred.
deferred tax.
Technical know 5 Years Borrowing costs consist of interest and other costs that an Lease liabilities are remeasured with a corresponding
entity incurs in connection with the borrowing of funds. adjustment to the related ROU asset if the Company Current tax expense for the period is ascertained on the
X. Inventories Borrowing cost also includes exchange difference, if any, to changes its assessment of whether it will exercise an basis of assessable profits computed in accordance with
the extent regarded as an adjustment to the borrowing cost. extension or a termination option.
Inventories are valued at cost or net realisable value the provisions of the Income-tax Act, 1961. The tax rates
whichever is lower. The cost in respect of various items of and tax laws used to compute the amount are those that
XIV. Segment information Lease liability and ROU assets have been separately
inventories is computed as under: are enacted or substantively enacted, at the reporting date.
Segment information is prepared in conformity with Ind presented in the standalone Balance Sheet and lease Deferred tax is recognised using the balance sheet approach
a) Raw Material and First in first out method plus direct AS 108 “Operating Segments” and the accounting policies payments have been classified as financing cash flows. on temporary differences between the carrying amounts of
Components expenses adopted for preparing and presenting the standalone assets and liabilities in the standalone financial statements
b) Stores and Spares Weighted average method plus direct financial statements of the enterprise as a whole. l The company as a lessor and the corresponding tax bases used in the computation of
expenses Leases for which the Company is a lessor is classified taxable profit. Deferred tax assets are generally recognised
c) Work-in-progress Cost of material plus appropriate share of XV. Leases as finance or operating leases. Whenever the terms of for all deductible temporary differences, the carry forward
overheads thereon at different stage of l The Company as a lessee the lease transfer substantially all the risks and rewards of unused tax credits and unused tax losses to the extent
completion. of ownership to the lessee, the contract is classified
The Company’s lease asset classes primarily consist of that it is probable that taxable profits will be available
d) Finished Goods Cost of material plus conversion cost, as a finance lease. All other leases are classified as against which those deductible temporary differences can
leases for land and buildings. The Company assesses
packing cost, and other overheads operating leases. be utilised. Such deferred tax assets and liabilities are not
incurred to bring the goods to their whether a contract contains a lease, at inception of a
contract. A contract is, or contains, a lease if the contract recognised if the temporary difference arises from the initial
present conditions and location.
conveys the right to control the use of an identified For operating leases, rental income is recognized on a recognition (other than in a business combination) of assets
e) Material in Transit Actual cost plus direct expenses to the
asset for a period of time in exchange for consideration. straight line basis over the term of the relevant lease. and liabilities in a transaction that affects neither the taxable
extent incurred.
To assess whether a contract conveys the right to profit nor the accounting profit.
control the use of an identified asset, the Company XVI. Foreign currency transactions
assesses whether: (i) the contract involves the use of an Transactions in foreign currency are recorded, on initial Minimum Alternate Tax (MAT) paid as current tax expense in
identified asset (ii) the Company has substantially all of recognition in the functional currency, by applying to the accordance with the tax laws, which gives future economic

Notes Notes
benefits in the form of adjustment to future income tax XIX. Financial instruments 3. Financial assets at fair value through contract is entered into and are subsequently
liability, is considered as tax credit and recognised as A financial instrument is any contract that gives rise to a profit or loss remeasured to their fair value at the end of each
deferred tax asset when there is reasonable certainty that financial asset of one entity and a financial liability or equity A financial asset which is not classified in reporting period.
the Company will pay normal income tax in the future years instrument of another entity. any of the above categories is subsequently
and future economic benefit associated with it will flow to measured at fair value through profit or loss. The Company adopts hedge accounting for
the Company i) Initial recognition and measurement forward foreign exchange contracts wherever
4. Financial liabilities possible. At inception of each hedge, there is a
All financial assets and liabilities are recognized at fair
The carrying amount of deferred tax assets is reviewed at the formal, documented designation of the hedging
value on initial recognition. The financial liabilities are subsequently
end of each reporting period and reduced to the extent that relationship. This documentation includes, inter
carried at amortized cost using the effective
it is no longer probable that sufficient taxable profits will be alia, items such as identification of the hedged
Transaction cost in relation to financial assets and interest method. For trade and other
available to allow all or part of the asset to be recovered. item and transaction and nature of the risk being
financial liabilities other than those carried at fair value payables maturing within one year from the
hedged. At inception, each hedge is expected
through profit or loss (FVTPL) are added to the fair value balance sheet date, the carrying amounts
Deferred tax liabilities and assets are measured at the tax to be highly effective in achieving an offset of
on initial recognition. approximate fair value due to the short
rates that are expected to apply in the period in which the changes in fair value or cash flows attributable
maturity of these instruments.
liability is settled or the asset realised, based on tax rates (and to the hedged risk. The effectiveness of hedge
Transaction cost that are directly attributable to the
tax laws) that have been enacted or substantively enacted by instruments to reduce the risk associated with the
acquisition or issue of financial assets and financial l inancial assets or financial liability at fair
F
the end of the reporting period. exposure being hedged is assessed and measured
liabilities that are carried at fair value through profit or value through profit or loss
at the inception and on an ongoing basis. The
loss are immediately recognized in the statement of This category has financial assets or liabilities
Current and deferred tax are recognised in statement of ineffective portion of designated hedges is
profit or loss. which are not designated as hedges.
profit and loss, except when they relate to items that are recognised immediately in the statement of profit
recognised in other comprehensive income or directly in and loss.
ii) Subsequent measurement Although the Company believes that these
equity, in which case, the current and deferred tax are also
recognised in other comprehensive income or directly in l Non-derivative financial instruments derivatives constitute hedges from an economic When hedge accounting is applied:
equity respectively. Deferred tax assets and deferred tax 1. Financial assets carried at amortised cost perspective, they may not qualify for hedge
● for fair value hedges of recognised assets and
liabilities are off-set if a legally enforceable right exists to accounting under Ind AS 109, Financial
A financial asset is subsequently measured at liabilities, changes in fair value of the hedged
set off current tax assets against current tax liabilities and Instruments. Any derivative that is either not
amortised cost if it is held within a business assets and liabilities attributable to the risk being
the deferred taxes relates to the same taxable entity and the designated a hedge, or is so designated but is
model whose objective is to hold the asset hedged, are recognised in the statement of
same taxation authority. ineffective as per Ind AS 109, is categorized as
in order to collect contractual cash flows and profit and loss and compensate for the effective
a financial asset or financial liability, at fair value
the contractual terms of the financial asset portion of symmetrical changes in the fair value of
XVIII. Earnings per share through profit or loss.
give rise on specified dates to cash flows that the derivatives.
Basic earnings per share are computed by dividing the net are solely payments of principal and interest
Derivatives not designated as hedges are
profit or loss after tax for the period attributable to equity on the principal amount outstanding. ● For cash flow hedges, the effective portion of
recognized initially at fair value and attributable
shareholders by the weighted average number of equity the change in the fair value of the derivative
transaction costs are recognized in net profit in
shares outstanding during the period. 2. Financial assets at fair value through is recognised directly in other comprehensive
the statement of profit and loss when incurred.
other comprehensive income income and the ineffective portion is recognised
Subsequent to initial recognition, these
For the purpose of calculating diluted earnings per share, A financial asset is subsequently measured in the statement of profit and loss. If the cash
derivatives are measured at fair value through
the net profit or loss for the period attributable to equity at fair value through other comprehensive flow hedge of a firm commitment or forecasted
profit or loss and the resulting exchange gains
shareholder and the weighted average number of shares income if it is held within a business model transaction results in the recognition of a non-
or losses are included in other income. Assets/
outstanding during the period are adjusted for the effects of whose objective is achieved by both financial asset or liability, then, at the time the
liabilities in this category are presented as current
all dilutive potential equity shares, if any. collecting contractual cash flows and selling asset or liability is recognised, the associated gains
assets/current liabilities if they are either held for
financial assets and the contractual terms or losses on the derivative that had previously
trading or are expected to be realized within 12
Diluted earnings per equity share is computed by dividing of the financial asset give rise on specified been recognised in equity are included in the
months after the balance sheet date.
the net profit attributable to the equity holders of the dates to cash flows that are solely payments initial measurement of the asset or liability. For
Company by the weighted average number of equity shares of principal and interest on the principal hedges that do not result in the recognition of a
l Derivative financial instruments and hedge
considered for deriving basic earnings per equity share amount outstanding. non-financial asset or a liability, amounts deferred
accounting
and also the weighted average number of equity shares in equity are recognised in the statement of profit
that could have been issued upon conversion of all dilutive In the ordinary course of business, the Company and loss in the same period in which the hedged
The company has made an irrevocable
potential equity shares. The dilutive potential equity shares uses certain derivative financial instruments item affects the statement of profit and loss.
election for its investment which are
are adjusted for the proceeds receivable had the equity to reduce business risks which arise from its
classified as equity instruments to present
shares been actually issued at fair value (i.e. the average exposure to foreign. The instruments are confined In cases where hedge accounting is not applied,
the subsequent changes in fair value in other
market value of the outstanding equity shares). Dilutive principally to forward foreign exchange contracts. changes in the fair value of derivatives are
comprehensive income based on its business
potential equity shares are deemed converted as at the The instruments are employed as hedges of recognised in the statement of profit and loss as
model. Further, in cases where the company
beginning of the period, unless issued at a later date. Dilutive transactions included in the standalone financial and when they arise.
has made an irrevocable election based
potential equity shares are determined independently for statements or for highly probable forecast
on its business model, for its investment
each period presented. transactions/firm contractual commitments. Hedge accounting is discontinued when the
which are classified as equity instruments,
These derivatives contracts do not generally hedging instrument expires or is sold, terminated,
the subsequent changes in fair value are
extend beyond six months. or exercised, or no longer qualifies for hedge
recognized in other comprehensive income.
accounting. At that time, any cumulative gain or
Derivatives are initially accounted for and loss on the hedging instrument recognised in
measured at fair value on the date the derivative equity is retained in equity until the forecasted

Notes Notes
transaction occurs. If a hedged transaction is no as an impairment gain or loss in statement of profit Contingent liability is disclosed in the case of: Note 2 (iii): Estimation of uncertainties relating to the
longer expected to occur, the net cumulative gain or loss. global health pandemic from COVID-19
● A present obligation arising from past events, when it is
or loss recognised in equity is transferred to the The Company has considered the possible effects that may result
not probable that an outflow of resources will be required
statement of profit and loss for the period. ii) Impairment of property, plant and equipment and from the pandemic relating to COVID-19 on the carrying amounts
to settle the obligation;
intangible assets of receivables and other assets. In developing the assumptions
l Equity share capital Property, plant and equipment and intangible assets relating to the possible future uncertainties in the global
● A present obligation arising from past events, when no
Equity shares are evaluated for recoverability whenever events or reliable estimate is possible; economic conditions because of this pandemic, the Company, as
Equity shares issued by the company are classified as changes in circumstances indicate that their carrying at the date of approval of these standalone financial statements
equity. Incremental costs directly attributable to the amounts may not be recoverable. For the purpose of ● A possible obligation arising from past events, unless the has used internal and external sources of information including
issuance of new ordinary shares and share options impairment testing, the recoverable amount (i.e. the probability of outflow of resources is remote. credit reports and related information, economic forecasts. The
are recognized as a deduction from equity, net of any higher of the fair value less cost to sell and the value- Company has performed sensitivity analysis on the assumptions
tax effects. in-use) is determined on an individual asset basis unless Commitments include the amount of purchase order (net of used and based on current estimates expects the carrying amount
the asset does not generate cash flows that are largely advances) issued to parties for completion of assets. of these assets will be recovered. The impact of COVID-19 on
De-recognition of financial instruments independent of those from other assets. In such cases, the Company’s standalone financial statements may differ from
the recoverable amount is determined for the CGU Provisions, contingent liabilities, contingent assets and that estimated as at the date of approval of these standalone
A financial asset is derecognized when the contractual
(Cash Generating unit) to which the asset belongs. commitments are reviewed at each balance sheet date. financial statements.
rights to the cash flows from the financial asset expire or
it transfers the financial asset and the transfer qualifies
If such assets are considered to be impaired, the XXIV. Current and non-current classification Note 2 (iv): Recent pronouncements
for De-recognition under Ind AS 109.
impairment to be recognized in the statement of Ministry of Corporate Affairs (“MCA”) notifies new standard or
The company has ascertained its operating cycle as twelve
profit and loss is measured by the amount by which amendments to the existing standards under Companies (Indian
A financial liability is derecognized when the obligation months for the purpose of current / non-current classification
the carrying value of the assets exceeds the estimated Accounting Standards) Rules as issued from time to time. On
specified in the contract is discharged or cancelled of assets and liabilities. This is based on the nature of
recoverable amount of the asset. An impairment loss March 23, 2022, MCA amended the Companies (Indian Accounting
or expires. products and the time between acquisition of assets for
is reversed in the statement of profit and loss if there Standards) Amendment Rules, 2022, applicable from April 1, 2022,
processing and their realisation in cash and cash equivalents.
has been a change in the estimates used to determine as below:
Fair value of financial instruments Current Assets and current liabilities includes current portion
the recoverable amount. The carrying amount of the
The fair value of financial instruments is determined of non-current financial assets and non-current financial
asset is increased to its revised recoverable amount, Ind AS 16 – Proceeds before intended use
using the valuation techniques that are appropriate liabilities respectively.
provided that this amount does not exceed the carrying
in the circumstances and for which sufficient data are The amendment clarifies that excess of net sale proceeds
amount that would have been determined (net of any
available to measure fair value, maximizing the use of Note 2 (ii): Critical accounting estimates of items produced over the cost of testing, if any, shall not
accumulated depreciation) had no impairment loss
relevant observable inputs and minimizing the use of be recognized in the profit or loss but deducted from the
been recognized for the asset in prior years. Useful lives of property, plant and equipment
unobservable inputs. directly attributable costs considered as part of cost of
The estimated useful lives of property, plant and equipment an item of property, plant, and equipment. The Company
XXI. Cash flow statement are based on a number of factors including the effects of
Based on the three level fair value hierarchy, the does not expect the amendments to have any impact in
The cash flow statement is prepared in accordance with the obsolescence, internal assessment of user experience and other its recognition of its property, plant and equipment in its
methods used to determine the fair value of financial
Indian Accounting Standard (Ind AS) – 7 “Statement of Cash economic factors (such as the stability of the industry, and known financial statements.
assets and liabilities include quoted market price,
flows” using the indirect method for operating activities. technological advances) and the level of maintenance expenditure
discounted cash flow analysis and valuation certified by
required to obtain the expected future cash flows from the asset. Ind AS 109 – Annual Improvements to Ind AS (2021)
the external valuer.
XXII. Cash and cash equivalent
The amendment clarifies which fees an entity includes when
Cash and cash equivalent for the purpose of statement The Company reviews the useful life of property, plant and
In case of financial instruments where the carrying it applies the ‘10 percent’ test of Ind AS 109 in assessing
of cash flows include bank balances, where the original equipment at the end of each reporting date.
amount approximates fair value due to the short whether to derecognise a financial liability. The Company
maturity of those instruments, carrying amount is maturity is three months or less. Other short term highly does not expect the amendment to have any significant
liquid investments that are readily convertible into cash and Recoverable amount of property, plant and equipment
considered as fair value. impact in its financial statements.
which are subject to an insignificant risk of changes in value. The recoverable amount of property plant and equipment is based
XX. Impairment of assets Bank overdrafts are included as a component of cash and on estimates and assumptions regarding the expected market Ind AS 116 – Annual Improvements to Ind AS (2021)
cash equivalent for the purpose of statement of cash flow. outlook and expected future cash flows. Any changes in these
i) Financial assets The amendments remove the illustration of the
assumptions may have a material impact on the measurement of
The company recognizes loss allowances using the reimbursement of leasehold improvements by the lessor
XIII. Provisions and contingent liabilities the recoverable amount and could result in impairment.
expected credit loss (ECL) model for the financial assets in order to resolve any potential confusion regarding the
A provision is recognized if, as a result of past event, the treatment of lease incentives that might arise because of
which are not fair valued through profit or loss. Post-retirement benefit plans
company has a present obligation (legal or constructive) and how lease incentives were described in that illustration.
on management judgement that is reasonably estimable Employee benefit obligations are measured on the basis of The Company does not expect the amendment to have any
Loss allowance for trade receivables with no significant
and it is probable that an outflow of economic benefits will actuarial assumptions including any changes in these assumptions significant impact in its financial statements.
financing component is measured at an amount equal
be required to settle the obligation. that may have a material impact on the resulting calculations.
to lifetime ECL. For all other financial assets, expected
credit losses are measured at an amount equal to the
If the effect of the time value of money is material, provisions Recognition of deferred tax assets
12-month ECL, unless there has been a significant
are discounted using a current pre-tax rate that reflects, Recognition of deferred tax assets depends upon the availability
increase in credit risk from initial recognition in which
when appropriate, the risks specific to the liability. When of future profits against which tax losses carried forward can
case those are measured at lifetime ECL. The amount
discounting is used, the increase in the provision due to the be used.
of expected credit losses (or reversal) that is required
passage of time is recognized as finance cost.
to adjust the loss allowance at the reporting date to the
amount that is required to be recognised is recognized

Notes Notes
Note 3.1 : Property, Plant and Equipment in ` Crore Note 3.2 : Other Intangible assets
Gross carrying value Depreciation and Amortisation Net carrying value Gross carrying value Depreciation and Amortisation Net carrying value
Disposals / Elimination on
Elimination on As at As at As at As at
As at adjustment As at As at As at As at As at Disposals / As at For the disposal / As at
Particulars For the Disposals / Particulars 1-Apr- Additions 31-Mar- 31-Mar- 31-Mar-
1-Apr- Additions / assets 31-Mar- 1-Apr- 31-Mar- 31-Mar- 1-Apr- adjustment 1-Apr-2020 year * adjustment 1-Apr-2020
year * adjustment / assets 2020 2021 2021 2021
2021 held 2022 2021 2022 2022 2021 of assets
held for sale
for sale B. Intangible assets
Freehold Land 42.27 13.80 - 56.07 - - - - 56.07 42.27 Computer Softwares 0.76 - - 0.76 0.48 0.10 - 0.58 0.18 0.28
Buildings 87.69 12.40 - 100.09 12.24 3.82 - 16.06 84.03 75.45 Technical Knowhow 0.55 - - 0.55 0.48 0.04 - 0.52 0.03 0.07
Plant and Equipment 531.72 64.90 (6.82) 589.80 146.10 36.91 (4.16) 178.85 410.95 385.62 Total 1.31 - - 1.31 0.96 0.14 - 1.10 0.21 0.35
Furniture and Fixtures 2.37 0.65 - 3.02 0.85 0.24 - 1.09 1.93 1.52 Grand total 592.50 83.19 (1.28) 674.41 126.74 38.11 (0.40) 164.45 509.96 465.76
Vehicles 7.30 2.50 (1.82) 7.98 3.19 0.91 (0.99) 3.11 4.87 4.11
Office Equipments 1.75 1.33 (0.46) 2.62 0.97 0.44 (0.43) 0.98 1.64 0.78 Note 3.3 : Capital work in progress
Total 673.10 95.58 (9.10) 759.58 163.35 42.32 (5.58) 200.09 559.49 509.75 As at As at
Particulars Additions Capitalised
1-Apr-2020 31-Mar-2021
Capital work in progress 19.19 88.82 59.74 48.27
Note 3.2 : Other Intangible assets
Gross carrying value Depreciation and Amortisation Net carrying value Note 3.4 : Intangible assets under development
Elimination on
Particulars As at As at As at As at As at As at
Disposals / As at For the disposal / As at Particulars Additions Capitalised
1-Apr- Additions 31-Mar- 31-Mar- 31-Mar- 1-Apr-2020 31-Mar-2021
adjustment 1-Apr-2021 year * adjustment 1-Apr-2021
2021 2022 2022 2022
of assets Capital work in progress - - - -
Computer Softwares 0.76 0.14 (0.01) 0.89 0.58 0.13 - 0.71 0.18 0.18
Technical Knowhow 0.55 - - 0.55 0.52 0.03 - 0.55 - 0.03 * Depreciation for the year 2020-21 38.11
Total 1.31 0.14 (0.01) 1.44 1.10 0.16 - 1.26 0.18 0.21 Less amount transferred from deferred revenue (0.07)
Grand total 674.41 95.72 (9.11) 761.02 164.45 42.48 (5.58) 201.35 559.67 509.96 Add: Depreciation on Right of use Assets (Refer note no.38) 0.88
Depreciation charged to statement of profit or loss 38.92
Note 3.3 : Capital work in progress Notes: No borrowing cost has been capitalized during the current and previous period.
As at As at
Particulars
1-Apr-2021
Additions Capitalised
31-Mar-2022 3.3a : Capital work in progress (CWIP) ageing schedule as on 31.03.2022 in ` Crore
Capital work in progress 48.27 121.01 67.25 102.03 Amount in CWIP for a period of
Less than 1-2 2-3 More than Total
1 year years years 3 years
Note 3.4 : Intangible assets under development
Projects in progress 85.86 16.17 102.03
As at As at
Particulars Additions Capitalised
1-Apr-2021 31-Mar-2022 Projects temporarily suspended - -
Capital work in progress - 3.17 - 3.17 Total 85.86 16.17 - - 102.03
* Depreciation for the year 2021-22 42.48 Capital work in progress (CWIP) completion schedule as on 31.03.2022
Less: Amount transferred from deferred revenue (0.07) To be completed in
Add: Depreciation on Right of use Assets (Refer note no.38) 0.85 Projects Less than 1-2 2-3 More than Total
Depreciation charged to statement of profit or loss 43.26
Growth Projects 101.67 0.23 - - 101.90
Note 3.1 : Property, Plant and Equipment in ` Crore Environment, safety and compliance 0.13 - - - 0.13
Gross carrying value Depreciation and Amortisation Net carrying value Total 101.80 0.23 - - 102.03
Elimination on
As at As at As at As at Capital work in progress (CWIP) ageing schedule as on 31.03.2021
Disposals / As at For the disposal / As at
Particulars 1-Apr- Additions 31-Mar- 31-Mar- 31-Mar-
adjustment 1-Apr-2020 year * adjustment 1-Apr-2020
2020 2021 2021 2021 Amount in CWIP for a period of
of assets
Less than 1-2 2-3 More than Total
Freehold Land 27.55 14.80 (0.08) 42.27 - - - - 42.27 27.55
Buildings 74.82 12.87 - 87.69 9.11 3.13 - 12.24 75.45 65.71
Projects in progress 48.27 - 48.27
Plant and Machinery 478.15 54.47 (0.90) 531.72 112.94 33.28 (0.12) 146.10 385.62 365.21
Projects temporarily suspended -
Furniture and Fixtures 2.03 0.34 - 2.37 0.64 0.21 - 0.85 1.52 1.39
Total 48.27 - - - 48.27
Vehicles 7.14 0.16 - 7.30 2.32 0.87 - 3.19 4.11 4.82
Office Equipments 1.50 0.55 (0.30) 1.75 0.77 0.48 (0.28) 0.97 0.78 0.73
Total 591.19 83.19 (1.28) 673.10 125.78 37.97 (0.40) 163.35 509.75 465.41

Notes Notes
Capital work in progress (CWIP) completion schedule as on 31.03.2021 in ` Crore 6 Other Non current assets 8B Investments
To be completed in As at As at As at As at
Projects Total 31-03-2022 31-03-2021 31-03-2022 31-03-2021
Less than 1-2 2-3 More than
1 year years years 3 years (Unsecured considered good) Investments - Current
Growth Projects 46.09 46.09 Capital advances 4.31 11.39 Investment carried at fair value through
Environment, safety and compliance 2.18 2.18 Advances other than capital advances Profit or loss (FVTPL)
Total 48.27 - - - 48.27 - Security deposit 0.86 0.70 Investment in mutual funds (unquoted)
- Lease hold land prepayments 0.15 0.16 88491.150 (88491.150 as at 31-Mar-2021) 0.22 0.20
3.4a Intangible assets under development ageing schedule as on 31.03.2022 - Prepaid expenses 0.20 0.40
units of `10/- each
of PNB Principal Balanced Advantage Fund-
Amount of Intangible assets under development for a period of Balance and deposits with government 4.78 4.78 Regular plan growth
Total department or others *
Less than 1-2 2-3 More than Other investments (unquoted)
1 year years years 3 years 10.30 17.43
Investment in Master Portfolio Services 2.15 1.02
Projects in progress 3.17 - 3.17 Limited
* This includes an amount of ` 1 crore deposited by the company towards
Projects temporarily suspended - custom duty under protest as a part of ongoing enquiry by Custom Authorities. MPSL Irage Absolute Return Strategy
Total 2.37 1.22
Total 3.17 - - - 3.17
Aggregate amount of quoted investments - -
Intangible assets under development completion schedule as on 31.03.2022 and market value of quoted investments
7 Inventories *
Aggregate amount of unquoted 2.37 1.22
To be completed in As at As at investments
Particulars
Projects Less than 1-2 2-3 More than Total 31-03-2022 31-03-2021
Aggregate amount of impairment in value - -
1 year years years 3 years Raw materials and components 243.26 181.75 of investment
Software commissioning 3.17 - 3.17 (including ` 156.62 Crore- as at
Total 3.17 - - - 3.17 31-March-2022 and ` 111.82 Crore 9 Trade receivables
as at 31-Mar-2021 in transit and at port )
As at As at
Intangible assets under development ageing schedule as on 31.03.2021 Work-in-progress 59.70 35.73 Particulars
31-03-2022 31-03-2021
Amount of Intangible assets under development for a period of Finished Goods 92.75 63.38 (Unsecured considered good)
(including ` 45.23 Crore as at 31-March-2022
Less than 1-2 2-3 More than Total From related parties (Refer note no.41) - 13.95
and ` 23.54 Crore as at
1 year years years 3 years Trade receivables considered good - 470.53 285.64
31-Mar-2021 in transit)
Projects in progress - - - Unsecured *
Stores and Spares 14.18 14.29
Projects temporarily suspended - - Less: Allowances for expected credit loss (0.73) -
409.89 295.15
Total - - - - - and doubtful receivables
* Valued at cost or net realisable value, whichever is lower Trade receivables which have significant - 0.72
increase in Credit Risk
Intangible assets under development completion schedule as on 31.03.2021
Trade receivables- credit impaired 0.66 0.12
To be completed in 8A Investments in Subsidiary Less: Allowances for credit impaired (0.66) (0.12)
Less than 1-2 2-3 More than Total receivables
As at As at
1 year years years 3 years Particulars
31-03-2022 31-03-2021 469.80 300.31
Software commissioning - - - Investments carried at cost
* Net of bill discounted from banks ` 21.25 Crore (Previous year ` 0.47 Crore)
Total - - - - - Equity investment in subsidiary company
(unquoted) Expected credit loss allowance for trade receivable is based on
4 Right of use assets 5 Other financial assets - Non Current IOL-Foundation 0.10 - historical credit loss experience and adjustment for forward
Particulars
As at As at
Particulars
As at As at 100000 equity shares of ` 10/- each looking information. The computation of expected credit
31-03-2022 31-03-2021 31-03-2022 31-03-2021 (previous year Nil) allowance for trade receivables is based on the provision matrix.
Right of use assets (Refer note no.38) 2.40 3.28 Security deposit (to related party) (Refer 0.82 0.10 - The provision matrix takes into account external and internal risk
0.74
Deletions of rights of use assets (0.58) - note no.41) factors and historical data of credit losses from various customers.
Aggregate amount of quoted investments - -
Less: Depreciation on right of use asset (0.85) (0.88) Interest receivable 0.81 0.17 and market value of quoted investments The expected credit loss allowance is based on the ageing of the
0.97 2.40 Fixed deposits account with remaining 185.06 Aggregate amount of unquoted 0.10 - receivables that are due and the rates used in provision matrix
19.68
maturity of more than twelve months investments
Balances with banks in earmarked Aggregate amount of impairment in value - - No trade or other receivables are due by directors or other officers
accounts to the extent held as margin of investment of the Group or any of them either severally or jointly with any
money against borrowings and other other persons or by firms or private limited companies respectively
commitments
in which any director is a partner or a director or a member except
Fixed deposits account with remaining 18.65 from M/s. Vivachem Intermediates Pvt. Ltd. amounting to ` Nil
1.54
maturity of more than twelve months
(Previous year `13.95 Crore)
205.34 22.13

Notes Notes
Trade receivables ageing schedule as on 31.03.2022 10 Cash and cash equivalents in ` Crore 12 Other Financial Assets - Current in ` Crore
Outstanding from the due date of payment As at As at As at As at

As at Particulars Particulars
Particulars Not due 31-Mar-2022 31-Mar-2021 31-Mar-2022 31-Mar-2021
Less than 6 months to 1-2 2-3 More than 31-03-2022
6 months 1 year years years 3 years Balances with banks (Unsecured considered
(i) Undisputed Trade receivables 351.87 99.20 0.56 0.10 0.08 451.81 - In current accounts 1.03 15.88 good)
- considered good - In deposit accounts - 15.03 Interest receivable 3.42 4.70
(ii) Undisputed Trade receivables - - (having original maturity of Other recoverable 7.68 5.48
- which have significant increase in credit risk three months or less) Export incentives/ 11.11 23.27
(iii) Undisputed Trade receivables - Cash on hand 0.42 1.43 other receivables from
- credit impaired Government Authorities
(iv) Disputed Trade receivables 18.72 - 18.72 1.45 32.34 Loans and advances to 0.45 0.22
- considered good employees
(v) Disputed Trade receivables - - 11 Other Bank Balances in ` Crore Derivative instruments at fair
- which have significant increase in credit risk value through OCI (FVTOCI)
(vi) Disputed Trade receivables 0.04 0.55 0.07 - 0.66 As at As at Foreign exchange forward
Particulars
31-Mar-2022 31-Mar-2021
- credit impaired contracts
Total 351.87 99.20 19.32 0.65 0.15 - 471.19 Balances with banks
- Cash flow hedges 0.32 -
Less: Allowances for expected credit loss, (1.39) Fixed deposits with original 83.76 121.30
doubtful receivables and credit impaired maturity of more than twelve
months but remaining 22.98 33.67
receivables
maturity of less than twelve
Total Trade receivables 469.80 months 13 Other Current Assets in ` Crore
Fixed deposits with original 30.37 181.76
maturity of more than three As at As at
Particulars
31-Mar-2022 31-Mar-2021
Trade receivables ageing schedule as on 31.03.2021 months but less than twelve
months (Unsecured considered good
Outstanding from the due date of payment
Balances with banks in unless otherwise stated)
As at
Particulars Not due Less than 6 months to 1-2 2-3 More than Advances against supply of
31-03-2022 earmarked accounts to
6 months 1 year years years 3 years the extent held as margin goods and services
(i) Undisputed Trade receivables 196.10 103.49 299.59 money against borrowings - to related party (refer note - 1.63
- considered good and other commitments no.41)
(ii) Undisputed Trade receivables 0.33 0.39 0.72 Fixed deposits with original 18.97 22.09 - to others 5.77 4.70
- which have significant increase in credit risk maturity of more than three
Prepaid expenses 7.89 5.06
(iii) Undisputed Trade receivables 0.12 0.12 months but less than twelve
months Balance and deposits with 20.36 3.09
- credit impaired
government department or
(iv) Disputed Trade receivables - Fixed deposits with original 2.62 6.81
others
- considered good maturity of more than twelve
months but remaining Security deposit 0.29 0.32
(v) Disputed Trade receivables - maturity of less than twelve Lease hold land 0.01 0.01
- which have significant increase in credit risk months prepayments
(vi) Disputed Trade receivables - Balances with banks in 0.71 0.44 Assets held for sale * 0.56 -
- credit impaired earmarked accounts to
Total 196.10 103.49 0.45 0.39 300.43 the extent of unclaimed
dividend 34.88 14.81
Less: Allowances for expected credit loss, (0.12)
doubtful receivables and credit impaired 136.43 332.40 * Carrying value of Plant and Equipment held for sale
receivables No advances are due by directors or other officers of the Group or any of them
either severally or jointly with any other persons or by firms or private limited
Total Trade receivables 300.31 companies respectively in which any director is a partner or a director or a
member except M/s. NCVI Enterprises Limited amounting to Nil (Previous year
`1.63 Crore )
The following is the detail of allowance for lifetime expected credit loss: in ` Crore
As at As at
Particulars
31-Mar-2022 31-Mar-2021
Allowances for expected credit loss and doubtful receivables
-Balance at the beginning of the period 0.12 0.12
-Impairment loss recognized 0.66 (0.02)
-Expected credit loss 0.61 0.02
-Amount written off - -
-Balance at the end of the period 1.39 0.12

Notes Notes
14 Equity share capital The company has paid 60% (` 6 per equity share of ` 10/- Shareholding of Promoter and Promoter Group Shareholding of Promoter and Promoter Group
each) interim/final dividend during the current year ended Sr. as on 31.03.2022 as on 31.03.2021
As at As at Promoter name
No.
Particulars 31-Mar-2022 31-Mar-2021 31-Mar-2022 and 40% (` 4 per equity share of ` 10/- each) No. of % of % Change No. of % of % Change
Shares total shares during the period Shares total shares during the period
Number in ` Crore Number in ` Crore an interim dividend during the previous year ended 31-Mar-
Authorised 2021. Promoter
Equity shares of 8,00,00,000 80.00 8,00,00,000 80.00 1 Varinder Gupta 11,95,865 2.037% No change 11,95,865 2.037% No change during
` 10/- each (par The amount of per share dividend recognized as distribution during the period the period
value) to equity shareholders is as follows:
Promoter Group
Preference shares - - - - Amount in `
1 Varinder Gupta HUF 1,100 0.002% No change 1,100 0.002% 1.80% Change
`10/- each (par Year ended Year ended during the period during the period
Particulars
value) 31-Mar-2022 31-Mar-2021
2 Mayadevi Polycot Limited 1,00,06,323 17.045% 1,00,06,323 17.045%
Total 8,00,00,000 80.00 8,00,00,000 80.00 Interim dividend 4.00 4.00
3 NM Merchantiles Limited 50,75,571 8.646% 50,75,571 8.646%
Final Dividend FY2021 2.00 -
4 NCG Enterprises Limited 32,84,393 5.595% 32,84,393 5.595%
Issued, subscribed
and fully paid-up 5 Bhudeva Lifesciences Limited 28,73,714 4.895% 28,73,714 4.895%
The Company has incurred a net cash outflow of `35.22 Crore
6 NCVI Enterprises Limited 28,12,032 4.790% 28,12,032 4.790%
Equity shares of 5,87,05,502 58.71 5,87,05,502 58.71 during the year ended 31-March-2022 (Previous year ` 23.48
` 10/- each (par Crore) on account of the interim/final dividend. 7 True Value Traders Limited 4,00,000 0.681% 4,00,000 0.681%
value) 2,44,53,133 41.654% 2,44,53,133 41.654%
Total 5,87,05,502 58.71 5,87,05,502 58.71 Rights attached to preference shares Total Shares held by promoter and 2,56,48,998 43.691% 2,56,48,998 43.691%
Promoter Group at the end of the period
The company has not issued preference shares during the
a. Reconciliation of the number of equity shares and current and previous year.
amount outstanding at the beginning and at the end of
15 Other Equity in ` Crore Nature and purpose of reserve
the reporting period c. The details of equity shareholders holding more than
Particulars
As at As at Capital reserve: The excess of net assets taken, over the cost of
As at As at 5% of the aggregate equity shares 31-Mar-2022 31-Mar-2021
consideration paid, were treated as capital reserve in accordance
Particulars 31-Mar-2022 31-Mar-2021 31-Mar-2022 31-Mar-2021 a. Capital reserve (Balance at the 10.76 10.76
with previous GAAP.
Number in ` Crore Number in ` Crore Particulars Number of % Number of %
beginning and end of the year)
Issued, shares held shareholding shares held shareholding b. Securities premium account
Securities premium: The amount received in excess of face value
subscribed Mayadevi Polycot 1,00,06,323 17.04% 1,00,06,323 17.04% Opening balance 225.72 190.27
of the equity shares is recognised in Securities Premium. It can
and paid-up Limited Add: Securities premium on allotment of - 35.45
equity shares be utilized in accordance with the provisions of the Act, to issue
equity shares NM Merchantiles 50,75,571 8.65% 50,75,571 8.65%
Closing balance 225.72 225.72 bonus shares, to provide for premium on redemption of shares or
Shares and 5,87,05,502 58.71 5,68,87,502 56.89 Limited
c. General reserve
debentures, write-off equity related expenses like underwriting
share capital Vasudeva 46,63,859 7.94% 46,63,859 7.94%
outstanding at Opening balance - -
costs etc.
Commercials
the beginning Limited Add: Transferred from surplus in - -
of the period statement of profit and loss Retained earnings: Retained earnings if any represents the net
NCG Enterprises 32,84,393 5.59% 32,84,393 5.59%
Shares and - - 18,18,000 1.82 Limited Closing balance - - profits after all distributions and transfers to other reserves.
share capital d. Retained earnings
issued during Opening balance 971.31 550.23
the period d.
There are no shares issued without payment being received
Add: Profit for the year 165.66 444.56 Other comprehensive income:
Shares and
in cash during the last five years.
5,87,05,502 58.71 5,87,05,502 58.71 Remeasurements of defined benefit obligation comprises
Less: Interim/final Dividend (35.22) (23.48)
share capital
outstanding at e.
There are no buy back of equity shares during the last five Closing balance 1,101.75 971.31 actuarial gains and losses and return on plan assets (excluding
the end of the years. e. Items of other comprehensive income: interest income).
period (i) Remeasurements of defined benefit
f.
T here are no bonus shares issued during the last five obligation (Refer note no.37) Cash flow hedge reserve
b. Rights, preferences and restrictions attached to equity years. Opening balance (5.48) (3.85) The cumulative effective portion of gains or losses arising from
shares Add: Other comprehensive income/(expense) (0.99) (1.63) changes in fair value of hedging instruments designated as cash
net of tax impact
The company presently has one class of equity shares having g.
T here is no holding / ultimate holding company of the flow hedges are recognised in cash flow hedge reserve. Such
Closing balance (6.47) (5.48)
a par value of `10/- each. Each holder of equity shares is company. changes recognised are reclassified to the statement of profit and
(ii) Net movement in effective portion of
entitled to one vote per share. The dividend if proposed loss when the hedged item affects the profit or loss. The Company
cash flow hedge reserve {Refer note
by the Board of Directors is subject to the approval of the h. Shareholding of Promoter and Promoter Group no.42(i)} has designated certain foreign currency forward contracts as cash
shareholders in the ensuing Annual General Meeting. Opening balance (0.59) (0.08) flow hedges in respect of foreign exchange risks.
Add: Other comprehensive income/(expense) 0.39 (0.51)
In the event of liquidation of the company, the holders of net of tax impact
equity shares will be entitled to receive any of the remaining Closing balance (0.20) (0.59)
assets of the company, after distribution of all preferential f. Monies received against Share warrants
amounts. The distribution will be in proportion to the Opening balance - 9.32
number of equity shares held by the shareholders. Add: Received during the year - 27.95
Less: Converted into equity shares - (37.27)
Closing balance - -
Total 1,331.56 1,201.72
Notes Notes
16 Lease liabilities 20 Trade Payable 21 Other financial liabilities - Current 24 Current tax liabilities/(assets) (net)
in ` Crore in ` Crore in ` Crore in ` Crore
As at As at As at As at As at As at As at As at
Particulars Particulars Particulars Particulars
31-Mar-2022 31-Mar-2021 31-Mar-2022 31-Mar-2021 31-Mar-2022 31-Mar-2021 31-Mar-2022 31-Mar-2021
Lease liabilities (Refer note no.38) 2.73 3.50 Outstanding dues of micro enterprises and 14.10 11.70 Unclaimed dividend 0.71 0.44 Provision for Current tax (net of advance tax) (0.91) 4.66
Deletions of lease liabilities (0.65) - small enterprises (Refer note no.47) Payable to employees (0.91) 4.66
Interest expense on lease liabilities 0.18 0.29 Outstanding dues of creditors other than 386.48 227.13 - to related parties (refer note no.41) 0.59 0.27
micro enterprises and small enterprises
Payment of lease liabilities (1.06) (1.06) - to other employees 6.40 11.29 Gross movement in current tax liabilities/(assets)
Outstanding dues to related parties (Refer 8.71 -
1.20 2.73 note no.41) Other liabilities in ` Crore
The break-up of current and non-current lease 409.29 238.83 - to related parties (refer note no.41) - 1.20 As at As at
liabilities is as follows: Particulars
- to other than related parties 16.58 8.79 31-Mar-2022 31-Mar-2021
Current Lease liabilities 1.02 0.90 Trade payables ageing schedule as on 31.03.2022 Derivative instruments at fair value Net current tax liabilities/(assets) at the 4.66 1.36
Non Current Lease liabilities 0.18 1.83 through OCI (FVTOCI) beginning of the year
Outstanding from the due date of Tax adjustments related to earlier years (0.22) 0.37
payment
Foreign exchange forward contracts
17 Provisions - Non current Particulars
Not
More Total - Cash flow hedges - 0.45 Income tax payment of earlier years (4.44) (1.73)
due Less than 1 - 2 2 - 3
in ` Crore than (a) 24.28 22.44 Provision for current tax 57.23 145.18
1 year years years
3 years Advance tax paid (58.14) (140.52)
As at As at Payable on purchase of capital goods (b) 5.74 6.38
Particulars (i) MSME 11.75 2.35 14.10
31-Mar-2022 31-Mar-2021 Total (a+b) 30.02 28.82 Current tax liabilities/(assets) (0.91) 4.66
Provision for employee benefits: (ii) Others 359.62 26.51 0.32 0.03 386.48
- Gratuity (Refer note no.37) 1.07 2.01 (iii) Disputed dues - 22 Other current liabilities 25 Revenue from operations in ` Crore
- MSME
- Compensated absences 1.94 1.67 in ` Crore For the year For the year
(iv) Disputed dues - Particulars ended ended
3.01 3.68 As at As at
- Others Particulars 31-Mar-2022 31-Mar-2021
31-Mar-2022 31-Mar-2021
Related party 1.79 6.92 8.71 Sale of products 2,120.31 1,946.14
18 Other non current liabilities Advances from customers 14.07 4.04
Total 373.16 35.78 0.32 0.03 - 409.29 Other operating revenue
in ` Crore Advance against assets held for sale 0.23 -
(i) Export incentives 3.84 15.76
As at As at Statutory remittances* 3.59 3.29
Particulars
31-Mar-2022 31-Mar-2021 Deferred capital grants related to Property, 0.13 0.13 (ii) Miscellaneous sales 11.81 5.08
Trade payables ageing schedule as on 31.03.2021 2,135.96 1,966.98
Deferred capital grants related to Property, 0.25 0.38 plant and equipment
plant and equipment Outstanding from the due date of Other payable - 0.50 Sale of traded goods 48.06 -
payment
Not Corporate Social Responsibility (Refer note 4.36 2.93 2,184.02 1,966.98
Particulars Total
19 Borrowings - Current due Less than 1-2 2-3
More no.48)
than
in ` Crore 1 year years years Security deposit 0.60 0.39 Disaggregated revenue information
3 years
Particulars
As at As at (i) MSME 7.29 4.41 11.70 22.98 11.28 The table below presents disaggregated revenues from contracts with
31-Mar-2022 31-Mar-2021 customers by sale of products for the year ended 31-Mar-2022 and
(ii) Others 195.83 31.14 0.08 0.06 0.02 227.13 * Statutory remittance includes contribution to provident fund, ESI, punjab
Loan repayable on demand 31-Mar-2021 respectively. The Company believes that this disaggregation
(iii) Disputed dues - labour welfare fund and tax deducted at source, etc. best depicts how the nature, amount, timing and uncertainty of our
- From Banks (secured) 42.75 - - MSME revenues and cash flows are affected by industry, market and other
42.75 - (iv) Disputed dues - 23 Current provisions economic factors.
- Others in ` Crore
in ` Crore
Details of security for Loan repayable on demand Related party - As at As at
For the year For the year
Total 203.12 35.55 0.08 0.06 0.02 238.83
Particulars Particulars ended ended
Loans repayable on demand from banks are secured by way 31-Mar-2022 31-Mar-2021
31-Mar-2022 31-Mar-2021
of first pari-passu charge on all present and future by way of Provision for employee benefits:
Details of sale of products
hypothecation of finished goods, work-in-progress, raw materials, - Gratuity (Refer note no.37) 6.15 5.05
- Chemicals 1,112.80 781.19
stores and spares, book debts, other current assets and pari-passu - Compensated absences 1.19 1.01
charge on fixed assets as collateral security and further secured by - Pharmaceuticals 977.00 1,139.91
7.34 6.06
personal guarantee of the Managing Director of the company and - Others 30.51 25.04
his relatives and corporate guarantee by a promoter company. 2,120.31 1,946.14

Terms:-
Working capital borrowings from banks are repayable on
demand.

Notes Notes
26 Other income in ` Crore 28 Changes in inventories of finished goods, work-in- 31 Other expenses in ` Crore (c) Reconciliation of tax expense and the profit before tax
progress and Stock in trade For the year For the year multiplied by statutory tax rate in ` Crore
Particulars ended ended in ` Crore Particulars ended ended
31-Mar-2022 31-Mar-2021 For the year For the year
31-Mar-2022 31-Mar-2021 For the year For the year Particulars ended ended
Interest income (Gross) Particulars ended ended Power and Fuel 78.18 51.46 31-Mar-2022 31-Mar-2021
31-Mar-2022 31-Mar-2021 Consumption of stores and spares 26.15 21.33
- From bank deposits 17.96 15.90 Profit before tax 222.84 571.39
Inventories at the beginning of the year Repairs and maintenance Income tax expense calculated at 56.08 143.80
TDS ` 1.80 Crore (Previous year ` 1.19
Crore) Work-in-progress 35.73 36.02 - Plant and Machinery 6.92 3.90 25.1680% (Previous year 25.1680%)
- On financial assets carried at amortized 0.08 0.07 Finished goods 63.38 44.29 - Building 3.23 2.49 Income tax for earlier years recognised in (0.22) 0.37
cost (A) 99.11 80.31 statement of profit and loss
- Others 0.56 0.41
Other non operating income Change in inventory during trial run Income tax impact of expenses not 0.02 (0.01)
Rent 0.23 0.14
considered for tax purpose
Liabilities no longer required written back 0.03 0.44 Work-in-progress 0.67 1.22 Insurance charges 4.25 3.73
Income tax impact of Income not (0.02) (0.03)
Gain on sale of items of Property, Plant - 0.05 Finished goods 0.37 0.47 Auditor's Remuneration (refer note 0.25 0.32 considered for tax purposes
and Equipment (net) (B) 1.04 1.69 no.46)
Income tax impact of expenses availed (0.06) 3.14
Rent received 0.02 0.02 Inventories at the end of the year Rates and Taxes 0.39 0.29 on payment basis
Gain on sale of investment - 0.01 Work-in-progress 59.70 35.73 Loss on Property, plant and 0.24 - Income tax impact of allowances of 2.56 1.81
Return on investment 0.16 0.02 Finished goods 92.75 63.38 equipment sold (net) permanent nature
Net gain on foreign currency transaction 10.44 6.91 (C) 152.45 99.11 Loss on Property, plant and 0.85 0.15 Income tax impact of unabsorbed (0.52) (0.81)
and translation equipment discarded depreciation and c/f loss of earlier years
Gain on fair value changes of financial 0.02 - Allowance for expected credit loss 1.27 - Income tax impact on changes in tax rates - (20.90)
(A+B-C) (52.30) (17.11) and doubtful receivables
assets measured at FVTPL from 34.9440% to 25.1680%
Amortisation of capital subsidy 0.07 0.07 Freight outward 57.34 41.15 Income tax savings on deductions under (0.66) (0.54)
29 Employee benefits expense in ` Crore
Other Selling and distribution 9.50 9.63 section 80JJAA
Miscellaneous income 3.26 0.81
For the year For the year expenses
32.04 24.30 Tax expense charged to statement 57.18 126.83
Particulars ended ended
31-Mar-2022 31-Mar-2021 Expenditure on corporate social 9.61 6.76 of profit and loss at effective rate of
responsibility* (Refer note no.48) 25.6602% (Previous Year 22.1987%)
27 Cost of material consumed in ` Crore Salaries and Wages 125.28 103.73
Miscellaneous expenses 16.96 14.99
For the year For the year Contribution to provident and other 9.77 7.76 During the Financial year 2020-21, the Company had elected
Particulars ended ended funds 215.93 156.75
31-Mar-2022 31-Mar-2021 to exercise the option permitted under Section 115BAA of
Staff welfare expenses 6.25 4.06 the Income Tax Act, 1961 as introduced by the Taxation Laws
Raw material consumed 32 Current tax and deferred tax
141.30 115.55 (a) Income tax recognised in statement of profit and loss (Amendment) Ordinance, 2019. Accordingly, the Company had
Opening Stocks 181.75 100.19
recognised provision for taxation and remeasured its deferred
Add: Purchases 1,640.42 1,201.51 in ` Crore
30 Finance Cost in ` Crore tax liabilities basis the rate prescribed in the said Section and
Total 1,822.17 1,301.70 For the year For the year the resultant impact was recognised in the statement of Profit
For the year For the year Particulars ended ended
Less: Closing stocks 243.26 181.75 Particulars ended ended 31-Mar-2022 31-Mar-2021 and Loss of previous year 2020-21. Pursuant to the exercise of
Consumption (refer detail below) 1,578.91 1,119.95 31-Mar-2022 31-Mar-2021 this option, the company had reversed deferred tax liabilities
Current tax
Detail of material consumed Interest expense on: amounting to ` 20.90 Crore due to reduction in corporate tax rate
In respect of current period 57.23 145.18
Acetic Acid 556.08 225.57 - Term loans and working capital 1.31 0.59 in the statement of Profit and Loss of the year ended 31 March
Tax adjustments related to earlier (0.22) 0.37 2021. Therefore, income tax expense are not comparable with
Iso Butyl Aceto Phenone (Ibap) 48.18 199.64 - other borrowings 0.94 0.06
years
Other borrowing costs 5.86 4.89 previous year.
Specially Denatured Spirit 313.69 220.23 Total (A) 57.01 145.55
Toluene 41.44 39.14 Interest expense on Lease Liability 0.18 0.29
Deferred tax
Acetic Anhydride 79.56 47.45 8.29 5.83
In respect of current period 0.17 (18.72)
Propylene Gas 35.65 39.63 Total (B) 0.17 (18.72)
Sodium Di Chromate 49.16 48.55 Total Income tax expense (A+B) 57.18 126.83
Sodium Metal 36.47 49.57
Others 418.68 250.17 (b) Income tax recognised in other Comprehensive income
1,578.91 1,119.95 in ` Crore

Particulars ended ended
31-Mar-2022 31-Mar-2021
Deferred tax (assets)/liability
On remeasurement loss of defined (0.33) (0.55)
benefit obligation
Net movement in effective portion of 0.12 (0.15)
cash flow hedge reserve
Total (0.21) (0.70)

Notes Notes
(d) Movement in deferred tax balances in ` Crore 33 Earning per share 36 Contingent liabilities and commitments (to the in ` Crore
As at Recognised in As at
The earning Per Share (EPS) as disclosed in the statement of extent not provided for) Gratuity Gratuity
Recognised profit and loss has been calculated as under: in ` Crore Particulars (Funded) (Funded)
Particulars 1-Apr- statement of 31-Mar- 31-Mar-2022 31-Mar-2021
in OCI
2021 Profit and loss 2022 in ` Crore As at As at
Particulars
31-Mar-2022 31-Mar-2021 i) Changes in the present value of the
Deferred tax For the year For the year
obligation
liabilities Particulars ended ended A Contingent liabilities
31-Mar-2022 31-Mar-2021 Present value of obligation as at the 17.21 13.24
Property, Plant and 55.73 0.35 i Claims not acknowledged as debts 0.09 0.48
56.08 beginning of the year
Equipment Total operations for the period
ii Bank Guarantee issued in favour of 0.09 0.04 Interest cost 1.17 0.90
Intangible assets 0.03 (0.03) - Profit after tax attributable to equity A 165.66 444.56 others
shareholders (`) Current service cost 1.96 1.65
Fair valuation gain on - 0.01 0.18 0.52
0.01 Benefits paid (1.16) (0.87)
investments B Commitments
Weighted average number of equity B 5,87,05,502 5,83,30,472 Remeasurement - actuarial (gain) 1.38 2.29
Gross deferred tax 55.76 0.33 - 56.09 i Estimated amount of contracts 11.60 28.50
shares (number) / loss
liabilities (A) remaining to be executed on Capital
Weighted average number of equity C 5,87,05,502 5,83,30,472 account and not provided for (net of Present value of obligation as at the 20.56 17.21
Deferred tax assets end of the year A
shares in computing diluted earning advances)
Gratuity (1.77) 0.28 (0.33) (1.82) per share (number) ii) Changes in the fair value of plan
ii Export obligations under Advance 88.43 43.46
Leave encashment (0.55) (0.06) Authorisation/Duty Free Import assets
(0.61)
liability (net) A/B 28.22 76.21 Authorisation # Fair value of plan assets as at the 10.15 7.48
Basic earnings per share (`)
Lease Liability (net) - (0.06) (0.06) 100.03 71.96 beginning of the year
Diluted earnings per share (`) A/C 28.22 76.21
Expected credit loss (0.03) (0.32) (0.35) Actual return on plan assets 0.75 0.62
Face value per equity share (`) 10.00 10.00 # Export
(0.19) - 0.12 obligations relates to duty saved on import of raw Contributions 3.60 2.69
Cash flow hedge (0.07)
materials under the Advance Authorization Scheme. Under the Charges deducted - (0.40)
Gross deferred tax (2.54) (0.16) (0.21) (2.91) 34 Research and Development expenses
assets (B)
scheme, the Company is committed to export prescribed times Benefits paid (1.16) (0.23)
in ` Crore of the value of import of raw materials over a specified period
Net Deferred tax 53.22 0.17 (0.21) 53.18 Fair value of plan assets as at the end 13.34 10.16
For the year For the year of time. In case such commitments are not met, the Company of the year B
(Asset)/Liabilities Particulars ended ended
(A+B) would be required to pay the duty saved along with interest to the Unfunded Status (A-B) 7.22 7.05
31-Mar-2022 31-Mar-2021
regulatory authorities.
Research and Development: Revenue iii) Amount recognised in the Balance
As at As at expenses Sheet
Particulars 1-Apr-
Recognised in Recognised
31-Mar- During the year, the company has executed bonds for an Present value of the defined benefit 20.56 17.21
2020
Profit and loss in OCI
2021
Raw material consumption 0.65 0.04 aggregate amount of ` 48.35 Crore (Previous Year ` 18.87 Crore) in obligation as at the end of the year
Deferred tax Salaries & wages 6.88 5.29 favour of The President of India under sub section (I) of the section Fair value of plan assets as at the end 13.34 10.16
liabilities Depreciation 1.31 1.07 142 of the Custom Act 1962 for fulfilment of the obligation under of the year
Property, Plant and 77.40 (21.67) 55.73 Stores and spares 2.05 0.92 the said Act. Net asset/(liability) recognised in the (7.22) (7.05)
Equipment Cost of utilities 0.22 0.11 Balance Sheet
Intangible assets 0.07 (0.04) 0.03 11.11 7.43 The Company is subject to legal proceedings and claims, which iv) Expense recognised in the
0.01 (0.01) -
have arisen in the ordinary course of business. The Company’s statement of profit and loss
Fair valuation gain on Research and Development: Capital
investments expenses management reasonably expects that these legal actions, when Current service cost 1.96 1.65
ultimately concluded and determined, will not have a material and
Gross deferred tax 77.48 (21.72) - 55.76 Additions to Property, Plant and 4.71 4.86 Net interest cost 0.48 0.39
liabilities (A) Equipment adverse effect on the Company’s results of operations or financial
condition. Expense recognised in the statement 2.44 2.04
Deferred tax assets The revenue expenses related to research and development is clubbed of profit and loss
Gratuity (4.07) 2.85 (0.55) (1.77) under respective account heads in profit and loss. 37 Employee benefits v) Re-measurement of the net
defined benefit liability / (asset)
Leave encashment (0.73) 0.18 (0.55) A Defined benefit plan: Gratuity
35 Exceptional item Actuarial (gain)/loss for the year on 1.38 2.29
Expected credit loss - (0.03) (0.03) The following table set out the funded status of the gratuity projected benefit obligation (PBO)
The exceptional items amounting to ` 13.93 crores represent plan and the amount recognised in the company’s financial
Cash flow hedge (0.04) - (0.15) (0.19) Actuarial (gain)/loss for the year on (0.06) (0.11)
one time cost towards Right of Recompense (RoR) payable statement as at 31-March-2022 and 31-March-2021.
Gross deferred tax (4.84) 3.00 (0.70) (2.54) plan assets
to the lenders against sacrifices made by them in FY 2014-15
assets (B) Total Actuarial (gain)/loss at the end 1.32 2.18
on account of restructuring done under Joint Lenders Forum
Net Deferred tax 72.64 (18.72) (0.70) 53.22 of the year
(JLF) route.
(Asset)/Liabilities vi) Bifurcation of actuarial (gain) /
(A+B) loss
Actuarial (Gain) / loss on arising from - -
change in demographic assumption
Actuarial (Gain) / loss on arising from (0.85) -
change in financial assumption
Actuarial (Gain) / loss on arising from 2.23 2.29
change in experience assumption
1.38 2.29

Notes Notes
vii) The major categories of plan assets as a percentage of the fair xii) Actuarial risks exposures: The changes in the carrying value of ROU assets for the year The details of the contractual maturities of lease liabilities on
value of total plan assets Valuations are based on certain assumptions, which are dynamic in ended 31-Mar-2022 are as follows : an undiscounted basis are as follows :
Gratuity Gratuity nature and vary over time. As such company is exposed to various in ` Crore in ` Crore
(Funded) (Funded) risks as follows:
31-Mar-2022 31-Mar-2021 a) Salary increases - Actual salary increases will increase the Plan’s As at As at As at As at
31-Mar-2022 31-Mar-2021 31-Mar-2022 31-Mar-2021
Investment with the insurer 100% 100% liability. Increase in salary increase rate assumption in future
valuations will also increase the liability. Category of ROU Assets Buildings Buildings Less than one year 1.25 1.18
The plan assets are maintained with Life Insurance Corporation of b) Investment risk - If plan is funded then assets liabilities Balance at the beginning 2.40 3.28 One to five years 0.20 1.61
India (LIC). The detail of investments maintained by LIC have not mismatch and actual investment return on assets lower than
been furnished to the Company. The same have therefore not been Reclassified on account of - - More than five years 0.18 0.82
the discount rate assumed at the last valuation date can impact
disclosed. adoption of Ind AS 116 Total 1.63 3.61
the liability.
viii) Principal actuarial assumptions at the Balance Sheet date c) Discount rate- Reduction in discount rate in subsequent Additions - -
(expressed as weighted average): valuations can increase the plan’s liability. Deletions (0.58) - Lease payments on account of short term and low value leases
Discount rate (per annum) 7.26% 6.80% d) Mortality and disability - Actual death and disability cases Depreciation (0.85) (0.88) are recognized as rental expense on a straight line basis in the
proving lower or higher than assumed in the valuation can
Rate of increase in compensation 5.50% 5.50%
impact the liabilities Balance at the end 0.97 2.40 statement of profit and loss over the lease term.
levels (per annum)
e) Withdrawals - Actual withdrawals proving higher or lower
Average remaining working lives of 27.09 27.51 than assumed withdrawals and change of withdrawals rates at The aggregate depreciation expense on Right of use assets Rental expense recorded under other expenses :
employees (years) subsequent valuations can impact Plan’s liability. in ` Crore
(ROU) is included under depreciation and amortization
Method used Projected unit Projected unit xiii) The company expects to contribute ` 2.67 Crore to the gratuity expense in the Statement of Profit and Loss. As at As at
credit credit Particulars
trust during the year 2022-23. 31-Mar-2022 31-Mar-2021
The assumptions and methodology used in actuarial valuation are xiv) Bifurcation of Projected Benefit Obligation (PBO) at the end of The movement in lease liabilities during the year are as Rent 0.15 0.07
consistent with the requirements of Ind AS 19 the year in current and non-current follows :
ix) The estimates of future salary increases, considered in actuarial in ` Crore
in ` Crore
valuation, take into account inflation, seniority, promotion Gratuity Gratuity
and other relevant factors, such as supply and demand in the (Funded) (Funded) As at As at
Particulars
employment market. 31-Mar-2022 31-Mar-2021 31-Mar-2022 31-Mar-2021
x) Sensitivity analysis of the defined benefit obligation: Current liability (amount due within 6.15 5.05 Balance at the beginning 2.73 3.50 Company as a Lessor
Gratuity Gratuity one year) Additions - -
The rental income on assets given on operating lease to the
(Funded) (Funded) Non-current liability (amount due 14.41 12.16 Finance cost accrued during the 0.18 0.29
31-Mar-2022 31-Mar-2021 Managing Director of the company was ` 0.02 Crore for the
over one year) year
a) Impact of change in discount rate
year ended 31-Mar-2022 (Previous year ` 0.02 Crore).
Total PBO at the end of year 20.56 17.21 Deletions (0.65) -
Present value of obligation at the 20.56 17.21 Payment of lease liabilities (1.06) (1.06)
end of the period B Contribution to Provident Fund Balance at the end 1.20 2.73
1. Impact due to increase of 0.50% (0.85) (0.73) The company has recognized an expense of ` 7.21 Crore ( Previous
2. Impact due to decrease of 0.50% 0.94 0.80 year ` 5.70 Crore) in respect of contribution to Provident Fund. Payment of Lease liabilities during the current year
b) Impact of change in salary ` 1.06 Crore (previous year ` 1.06 Crore)
increase 38 Disclosures as required by Indian Accounting
Present value of obligation at the 20.56 17.21 Standard (Ind AS) 116 Leases
end of the period Company as a Lessee
1. Impact due to increase of 0.50% 0.95 0.81 The Company’s significant leasing arrangements are in
2. Impact due to decrease of 0.50% (0.87) (0.75) respect of operating leases for premises (residential, etc.).
As per Actuarial certificate, sensitivities due to mortality and These leasing arrangements, which are non-cancellable
withdrawals are insignificant and hence impact of change has not and are usually renewable by mutual consent on mutually
been calculated. agreeable terms.
xi) Maturity profile of defined benefit obligation:
Gratuity The Company does not face a significant liquidity risk with
(Funded) regard to its lease liabilities as the current assets are sufficient
31-Mar-2022
to meet the obligations related to lease liabilities as and
Year ending when they fall due.
a) Mar-2022 to Mar-2023 6.15
b) Mar-2023 to Mar-2024 0.71
c) Mar-2024 to Mar-2025 0.54
d) Mar-2025 to Mar-2026 0.47
e) Mar-2026 to Mar-2027 0.45
f ) Mar-2027 to Mar-2028 1.34
g) Mar-2028 onwards 10.90

Notes Notes
39. Disclosures of Financial instruments (b) Basis of Fair value of Financial assets and liabilities
(a) The carrying value and fair value of financial instruments by categories at the end of each reporting period is pending at (i) Fair Value hierarchy
the end as follows:
Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities
As at 31-March-2022 in ` Crore
Amortized At fair value through 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
At fair value through OCI
cost profit or loss (i.e. derived from prices)
Total carrying
Particulars Designated Equity instruments Total Fair value
value
upon initial Mandatory designated upon Mandatory Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
recognition initial recognition
Financial Assets: (ii) The following table presents fair value hierarchy of assets and liabilities measured at fair value:
Investment in subsidiary 0.10 0.10 0.10
Other financial non-current assets 205.34 205.34 205.34
Current Investments 2.37 2.37 2.37 As at 31-March-2022 in ` Crore
Trade receivables 469.80 469.80 469.80 Fair Value measurement using
Particulars Fair Value Fair value technique
Cash and cash equivalents 1.45 1.45 1.45 Level 1 Level 2 Level 3
Other Bank Balances 136.43 136.43 136.43 Financial assets 0.22 0.22 Published NAV value by mutual fund.
Foreign exchange forward 0.32 0.32 0.32 Current investments in Mutual funds
contracts at fair value through profit & loss
Other financial current assets 22.66 22.66 22.66 Other current investments at fair 2.15 2.15 Value as provided by the portfolio manager.
835.78 - 2.37 - 0.32 838.47 838.47 value through profit & loss
Total
Foreign exchange forward contracts 0.32 0.32 Future cash flows are estimated based on forward exchange
Financial Liabilities: at fair value through OCI rates from observable forward exchange rates at the end of the
Short term borrowings 42.75 42.75 42.75 reporting period and contract forward rates, discounted at a
Trade Payables 409.29 409.29 409.29 rate that reflects the credit risk of various counterparties.
Lease liabilities Current 1.02 1.02 1.02 Total 2.69 - 2.69 -
Lease liabilities non current 0.18 0.18 0.18
Other financial current liabilities 30.02 - 30.02 30.02 As at 31-March-2021 in ` Crore
Total 483.26 - - - - 483.26 483.26 Fair Value Fair Value measurement using
Particulars
Level 1 Level 2 Level 3
As at 31-March-2021 in ` Crore Financial assets 0.20 0.20 Published NAV value by mutual fund.
Current investments in Mutual funds
At fair value through at fair value through profit & loss
At fair value through OCI
profit or loss
Amortized Total carrying Other current investments at fair 1.02 1.02 Value as provided by the portfolio manager.
Particulars Designated Equity instruments Total Fair value
cost value value through profit & loss
upon initial Mandatory designated upon Mandatory
recognition initial recognition Total 1.22 - 1.22 -
Financial Assets: Financial liabilities
Other financial non-current assets 22.13 22.13 22.13 Foreign exchange forward contracts 0.45 0.45 Future cash flows are estimated based on forward exchange
Current Investments 1.22 1.22 1.22 at fair value through OCI rates from observable forward exchange rates at the end of the
reporting period and contract forward rates, discounted at a
Trade receivables 300.31 300.31 300.31 rate that reflects the credit risk of various counterparties.
Cash and cash equivalents 32.34 32.34 32.34 Total 0.45 - 0.45 -
Other Bank Balances 332.40 332.40 332.40
Other financial current assets 33.67 33.67 33.67
Total 720.85 - 1.22 - - 722.07 722.07
Financial Liabilities:
Trade Payables 238.83 238.83 238.83
Lease liabilities Current 0.90 0.90 0.90
Lease liabilities non current 1.83 1.83 1.83
Foreign exchange forward 0.45 0.45 0.45
contracts
Other financial current liabilities 28.37 - 28.37 28.37
Total 269.93 - - - 0.45 270.38 270.38


Notes Notes
40 Segment information c. Segment accounting policies: Detail of primary business segment

I Segment Accounting Policies: In addition to the significant accounting policies Products and services
applicable to the business, the accounting
a. Products and services from which reportable in ` Crore
policies in relation to segment accounting are as
segment derive their revenues. Chemical Pharmaceutical Unallocated Eliminations Total
under:
Current Previous Current Previous Current Previous Current Previous Current Previous
i. Segment assets and liabilities: Year Year Year Year Year Year Year Year Year Year
Based on the nature and class of product and
services, their customers and assessment of Segment assets include all operating assets Segment Revenue
differential risk and returns and financial reporting used by a segment and consists principally External Sales * 1,174.87 795.71 1,002.66 1,168.97 6.49 2.30 2,184.02 1,966.98
results reviewed by Chief Operating Decision of cash, debtors, inventories and fixed Inter Segment transfer 143.38 30.21 - - - - (143.38) (30.21) - -
Maker (CODM), the company has identified the assets, net of allowances and provisions,
Interest income 17.96 15.90 17.96 15.90
primary business segments which comprised: which are reported as direct off set in the
Other Income 4.25 3.32 5.66 3.26 4.17 1.82 14.08 8.40
balance sheet. Segment liabilities include all
operating liabilities and consist principally of Total Revenue 1,322.50 829.24 1,008.32 1,172.23 28.62 20.02 (143.38) (30.21) 2,216.06 1,991.28
The “Chemical” segment produces and sells Ethyl
creditors and accrued liabilities. Segment Results 59.26 100.18 162.92 461.78 222.18 561.96
Acetate, Iso Butyl Benzene, Acetyl Chloride, Mono
Chloro Acetic Acid, Para Amino Phenol (PAP), etc. Unallocated Income (net of 22.88 15.26 22.88 15.26
ii. Segment revenue and expenses: unallocated Expenses)
The “Pharmaceutical” segment produces and Joint revenue and expenses of segment Profit before tax and 245.06 577.22
interest
sells various API's viz. Ibuprofen, Metformin, are allocated amongst them on reasonable
Fenofibrate, Lamotrigine, Clopidogrel Bisulphate, basis. All other segment revenue and Finance cost 8.29 5.83 8.29 5.83
Pantoprazole, Ursodeoxycholic Acid (UDCA), expenses are directly attributable to the Profit before Tax & 236.77 571.39
Gabapentin, Levetiracetam, Paracetamol, etc. segments. Extraordinary items
Exceptional items 13.93 -
The operating businesses are organized and iii. Inter segment sales: Tax expense 57.18 126.83 57.18 126.83
managed separately according to the nature Inter segment sales are eliminated Profit after Tax 165.66 444.56
of the products produced, with each segment in consolidation. Other Information
representing a strategic business unit that offers Segment Assets 537.77 436.54 945.34 672.68 - - 1,483.11 1,109.22
different products and serves different markets. iv. Segment results: Unallocated assets - - - - 477.18 500.87 477.18 500.87
Segment results represents the profit Total Assets 537.77 436.54 945.34 672.68 477.18 500.87 1,960.29 1,610.09
b. Geographical segments - Secondary segments
before tax earned by each segment without Segment Liabilities 272.74 196.08 179.72 77.20 - - 452.46 273.28
The geographical segments considered for allocation of other income and unallocable Unallocated Liabilities - - - - 74.81 76.38 74.81 76.38
disclosure are based on markets, as under: expenses as well as finance costs.
Long term borrowings - - - -
(including current
i. India
maturities and interest
accrued but not due)
ii. Rest of the world
Short term borrowings 42.75 - 42.75 -
Total Liabilities 272.74 196.08 179.72 77.20 117.56 76.38 570.02 349.66
Capital Expenditure 6.53 2.03 123.45 89.11 22.67 21.14 152.65 112.28
Depreciation and 13.38 13.64 25.65 21.49 4.23 3.79 43.26 38.92
Amortisation

Detail of secondary business segment
Geographical information in ` Crore
Domestic sale Export sale
Particulars Year ended Total
India Rest of the world
Net revenue from sale of products 31-March-2022 1,638.13 545.89 2,184.02
31-March-2021 1,354.47 612.51 1,966.98
Information about major customers

Refer note no. 42 (iii) (Credit Risk)
Notes:
(i) Segment performance is reviewed by the CODM on the basis of profit or loss from continuing operations before finance income/
cost and tax expense. Segment results reviewed by the CODM also exclude income or expenses which are non-recurring in nature
and are classified as an exceptional item. Information about segment assets and liabilities provided to the CODM, excludes the
related assets and liabilities arising on account of items excluded in measurement of segment results. Such amount therefore, form
part of the unallocated assets and liabilities.
(ii) There is no customer contributing more than 10% of the total revenue of the company.
(iii) The company does not have manufacturing facilities outside India therefore all non current assets are located in India.

Notes Notes
41 Related party disclosures B Details of transactions entered into with related parties during the year as required by Ind AS 24 on “Related Party
In accordance with the requirements of IND AS 24, on Related party disclosures, name of the related party, related party Disclosures” of Companies (Indian Accounting Standards) Rules 2015.
relationship, transactions and outstanding balances including commitments where control exits and with whom transactions Enterprises over
have taken place during reported periods, are: Particulars Subsidiaries
which KMP is able to Key Management Non executive
Relatives of KMP
Post Employment Total
exercise significant Personnel (KMP) directors Benefit Plans ` Crore
Sr. influence or control
A. Related party and their relationship:- No.
Year Year Year Year Year Year Year Year Year Year Year Year Year Year
Key Management Personnel: ended ended ended ended ended ended ended ended ended ended ended ended ended ended
31-Mar- 31-Mar- 31-Mar- 31-Mar- 31-Mar- 31-Mar- 31-Mar- 31-Mar- 31-Mar- 31-Mar- 31-Mar- 31-Mar- 31-Mar- 31-Mar-
i Whole time directors Mr. Varinder Gupta Managing Director 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021
Mr. Vikas Gupta Executive Director 1 Sale of goods - - - 147.86 - - - - - - - - - 147.86
Dr. Sanjay Chaturvedi Executive Director & CEO (w.e.f. 30-May-2022) Vivachem
Intermediates Pvt.
Mr. Kushal Kumar Rana Director Works (w.e.f. 04.06.2021) Ltd.
Mr. Vijay Garg Joint Managing Director (upto 31.03.2021) 2 Sale of Capital goods - - - 0.01 - - - - - - - - - 0.01
ii Non executive directors Mr. Rajender Mohan Malla Chairman and Independent Director Vivachem
Intermediates Pvt.
Mr. Harpal Singh Independent Director Ltd.
Dr. Sandhya Mehta Independent Director 3 Purchase of goods:
Mr. Sharad Tyagi Independent Director (w.e.f. 30-May-2022) NCVI Enterprises - - 54.15 73.32 - - - - - - - - 54.15 73.32
iii Chief Executive Officer Dr. Sanjay Chaturvedi (w.e.f. 16-March-2021 upto 29-May-2022) Limited
iv Chief Financial Officer Mr. Pardeep Kumar Khanna Vivachem - - - 200.28 - - - - - - - - - 200.28
Intermediates Pvt.
v Vice President and Company Secretary Mr. Abhay Raj Singh Ltd.
Others - - - - - - - - - - - - - -
Related parties 4 Purchase of land - - - - - 13.09 - - - - - - - 13.09
Nature of relationship Name of related party From Vijay Garg
i. Subsidary IOL- Foundation 5 * Managerial - - - - 14.44 13.36 - - 1.32 1.09 - - 15.76 14.45
remuneration
ii. Enterprises over which Key Management NM Merchantiles Limited (including incentives)
Personnel (KMP) and relative of such personnel is 6 Sitting fees to non- - - - - - - 0.10 0.11 - - - - 0.10 0.11
able to exercise significant influence or control: executive directors of
Mayadevi Polycot Limited the company
NCG Enterprises Limited 7 Rent received - - - - 0.02 0.02 - - - - - - 0.02 0.02
True Value Traders Limited 8 Rent paid - - 0.12 0.07 0.52 0.49 - - 0.52 0.49 - - 1.16 1.05
NCVI Enterprises Limited 9 Monies received

against Share
Bhudeva Lifesciences Limited warrants:
Vivachem Intermediates Pvt. Limited (upto 31.03.2021) NCVI Enterprises - - - 27.95 - - - - - - - - - 27.95
Limited
Viva-API Labs Private Limited (upto 31.03.2021)
10 Equity Investment in 0.10 - - - - - - - - - - - 0.10 -
Varinder Gupta (HUF)
IOL-Foundation
iii. Relative of Key Management Personnel: Mrs. Dimple Gupta General Manager (upto 31.12.2021) 11 Contribution towards 2.01 - - - - - - - - - - - 2.01 -
Mr. Abhiraj Gupta General Manager CSR exp
iv. Post employment benefit plan IOL Chemicals and Pharmaceuticals Limited Employees Group Gratuity Trust 12 Contribution to - - - - - - - - - - 3.60 2.64 3.60 2.64
IOL Chemicals and
Pharmaceuticals
Limited Employees
Group Gratuity Trust

Notes Notes
C Details of balances outstanding as at the end of the year 42 Financial Risk Management for its payment of outward remittances (i.e.
Enterprises over
The financial assets of the company include investments, considering it as natural hedge). The Company
which KMP is able to Key Management Non executive Post Employment Total loans, trade and other receivables, and cash and bank also holds derivative financial instruments such
Particulars Subsidaries Relatives of KMP
exercise significant Personnel (KMP) directors Benefit Plans ` Crore balances that derive directly from its operations. The as foreign exchange forward contracts to mitigate
Sr. influence or control
No.
financial liabilities of the company, other than derivatives, the risk of changes in exchange rates on foreign
Year Year Year Year Year Year Year Year Year Year Year Year Year Year include loans and borrowings, trade payables, lease liabilities currency exposures.
ended ended ended ended ended ended ended ended ended ended ended ended ended ended
and other payables, and the main purpose of these financial
31-Mar- 31-Mar- 31-Mar- 31-Mar- 31-Mar- 31-Mar- 31-Mar- 31-Mar- 31-Mar- 31-Mar- 31-Mar- 31-Mar- 31-Mar- 31-Mar-
2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 liabilities is to finance the day to day operations of the The Company’s exposure to foreign currency risk
Amount receivable on the last day of the period company. was based on the following amounts as at the
The company is mainly exposed to the following risks that reporting dates:
1 Security deposit - - - - 0.45 0.45 - - 0.45 0.45 - - 0.90 0.90
receivable arise from financial instruments:
2 Trade Receivable Financial Assets
against sale of (i) Market risk As at As at
goods: 31-March-2022 31-March-2021
Particulars
Vivachem - - - 13.95 - - - - - - - - - 13.95 (ii) Liquidity risk Foreign in ` Foreign in `
Intermediates currency Crore currency Crore
Pvt. Ltd. (iii) Credit risk Trade receivable
3 Equity 0.10 - - - - - - - - - - - 0.10 -
-In USD 97,22,693 73.36 60,04,804 43.98
Investment in The Company’s senior management oversees the
IOL-Foundation -In EURO 2,86,123 2.40 3,67,128 3.13
management of these risks and that advises on financial risks
4 Balance - - - - - - - - - - - - - - Trade Payables
and the appropriate financial risk governance framework for
Receivable -In USD 1,52,41,143 115.97 1,84,76,793 135.92
the Company.
5 Advances In EURO - - - -
against Net exposure
This note explains the risks which the company is exposed
purchases of
goods: to and policies and framework adopted by the company to -In USD (55,18,450) (42.61) (1,24,71,989) (91.94)
NCVI Enterprises - - - 1.63 - - - - - - - - - 1.63
manage these risks: -In EURO 2,86,123 2.40 3,67,128 3.13
Limited
Amount payable on the last day of the period (i) Market Risk Of the above foreign currency exposures, the following exposures are not
hedged by a derivative.
1 Trade payables Market risk is the risk that the fair value of future cash
against purcahse of flows of a financial instrument will fluctuate because As at As at
goods: 31-March-2022 31-March-2021
of changes in market prices. Market prices comprise Particulars
NCVI Enterprises - - 8.71 - - - - - - - - - 8.71 - Foreign in ` Foreign in `
Limited
two types of risk: foreign currency risk and interest rate
currency Crore currency Crore
risk.
2 * Managerial - - - - 0.57 0.23 - - 0.02 0.04 - - 0.59 0.27 Trade receivable
remuneration
(a) Foreign currency risk -In USD 37,57,693 27.60 60,04,804 43.98
3 Sitting fees to non- - - - - - - - 0.01 - - - - - 0.01
executive directors The company imports certain Property, Plant -In EURO 2,86,123 2.40 3,67,128 3.13
of the company Trade Payables - -
and Equipment and material from outside India
4 Rent Payable - - - - - - - - - - - - - -
and export finished goods. The exchange rate -In USD 1,52,41,143 115.97 1,02,29,975 75.26
5 Other payable: - - - - - - - - - - - 1.19 - 1.19
between the Indian rupee and foreign currencies In EURO - - - -
IOL Chemicals and
Pharmaceuticals has fluctuated in recent years and may fluctuate Net exposure
Limited Employees substantially in the future. Consequently the -In USD (1,14,83,450) (88.37) (42,25,171) (31.28)
Group Gratuity company is exposed to foreign currency risk and
Trust -In EURO 2,86,123 2.40 3,67,128 3.13
the results of the company may be affected as the
(i) The transactions with related parties are made in the ordinary course of business and on terms equivalent to those that prevail in rupee appreciates/ depreciates against foreign
arm’s length transactions with other vendors. Outstanding balances at the year-end is unsecured and settlement occurs in cash. currencies. Foreign exchange risk arises from the Foreign currency sensitivity analysis
future probable transactions and recognized
Any changes in the exchange rate of USD and EURO against INR
* (ii) Long-term employee benefits for Key Managerial Personnel: The managerial personnel are covered by Company’s gratuity policy assets and liabilities denominated in a currency
is not expected to have significant impact on the Company's
and are eligible for compensated absences along with other employees of the Company. The proportionate amount of gratuity other than company’s functional currency.
profit due to the less exposure of these currencies. Accordingly,
and compensated absences cost pertaining to managerial remuneration have not been included in aforementioned disclosures as
a 2% appreciation/depreciation of the INR as indicated below,
these are not determined on individual basis. The company measures the risk through a
against the USD and EURO would have reduced/increased profit
forecast of highly probable foreign currency cash
by the amounts shown below. This analysis is based on the foreign
flows and manages its foreign currency risk by
currency exchange rate variances that the Company considered
hedging appropriately. The company manages
to be reasonably possible at the end of the reporting period. The
its foreign currency risk through the process of
analysis assumes that all other variable remains constant:
adjusting inward remittances in foreign currency

Notes Notes
in ` Crore The following table includes the maturity profile of the foreign exchange Financial Year Financial Year T he company assesses the creditworthiness of the customers
forward contracts: Particulars
As at As at 2021-2022 2020-2021 internally to whom goods are sold on credit terms in the normal
31-March-2022 31-March-2021 As at As at
Particulars Increase/ (decrease) in 100 basis 42.75 - course of business. The credit limit of each customer is defined in
Strength- Weaken- Strength- Weaken- Particulars 31-March-2022 31-March-2021 point accordance with this assessment.
ening ing ening ing USD in ` Crore USD in ` Crore
2% Strengthening / (1.77) 1.77 (0.63) 0.63 Not later than one 27,65,000 21.21 17,96,926 13.25 (ii) Liquidity Risk T he impairment analysis is performed on client to client basis for
weakening of USD month T he financial liabilities of the company include loans and the debtors that are past due at the end of each reporting date.
against INR
Later than one 32,00,000 24.55 32,17,992 23.87 borrowings, trade and other payables. The company's principal The company has not considered an allowance for doubtful debts
2% Strengthening / 0.05 (0.05) 0.06 (0.06) month and not later sources of liquidity are cash and cash equivalents and the cash in case of Trade receivables that are past due but there has not
weakening of EURO than three months
against INR flow that is generated from operations. been a significant change in the credit quality and the amounts
Later than three - - 32,31,900 24.08 are still considered recoverable.
months and not T he company monitors its risk of shortage of funds to meet the
Foreign currency forward contracts held by the company as on later than one year
reporting date: financial liabilities using a liquidity planning tool. The company The following is the detail of revenues generated from top five
59,65,000 45.76 82,46,818 61.20 plans to maintain sufficient cash to meet the obligations as and customers of the company:

when falls due. in ` Crore
As at As at (b) Interest Rate Risk
31-March-2022 31-March-2021 Financial Year Financial Year
Particulars
In USD 59,65,000 82,46,818
Interest rate risk is the risk that the fair value or future cash T he below is the detail of contractual maturities of the financial 2021-22 2020-21
flows of a financial instrument will fluctuate because of liabilities of the company at the end of each reporting period: (a) Revenue from top five
In INR Crore 45.76 61.20

changes in market interest rates. The Company’s exposure to in ` Crore customers
the risk of changes in market interest rates relates primarily -% of total sales of top 1 customer 3.83% 7.52%
Derivatives designated as hedging instruments Financial Year Financial Year
to the Company’s debt obligations with floating interest Particulars
2021-22 2020-21 -% of total sales of top 5 customers 15.05% 22.91%

rates. Borrowings including current - -
The Company enters into hedging instruments in accordance
maturities Write off policy
with policies as approved by the Board of Directors with written As the Company has no significant interest-bearing assets, Less than 1 year - - The financials assets are written off in case there is no reasonable
principles which is consistent with the risk management strategy the income and operating cash flows are substantially 1-2 year - - expectation of recovering from the financial asset.
of the Company. The Company has decided to apply hedge independent of changes in market interest rates. The
accounting for derivative contracts that meets the qualifying 2-5 year - -
Company’s exposure to the risk of changes in market interest
criteria of hedging relationship entered. 5-10 year - - 43 Capital Management
rates relates primarily to the Company’s debt obligations
Later - - The capital includes issued equity capital, share premium
with floating interest rates, which are included in interest
During the current year ended 31-March-2022 and previous year Short term borrowings 42.75 - and all other equity reserves attributable to the equity
bearing loans and borrowings in these financial statements
ended 31-March-2021, the Company has designated certain if any. All the company’s fixed rate borrowings are carried at Less than 1 year 42.75 - holders of the company. The primary objective of the
foreign exchange forward contracts as cash flow hedges to amortised cost. They are therefore not subject to interest rate 1-2 year - - company’s capital management is to maintain optimum
mitigate the risk of foreign exchange exposure. risk, since neither the carrying amount nor the future cash 2-5 year - - capital structure to reduce cost of capital and to maximize
flows will fluctuate because of a change in market interest 5-10 year - - the shareholder value.
Impact of hedging on equity rates. Later - -
Trade Payables 409.29 238.83 The company manages its capital structure and makes
Set out below is the reconciliation of each component of equity At the reporting date the interest rate profile of the Less than 1 year 409.29 238.83 adjustments in light of changes in economic conditions
and the analysis of other comprehensive income: Company’s interest bearing financial instrument is at its fair 1-2 year - - and the requirements of the financial covenants which
in ` Crore otherwise would permit the banks to immediately call loans
value: 2-5 year - -
Financial Year and borrowings. In order to maintain or adjust the capital
Particulars 5-10 year - -
2021-22 2020-21 structure, the company may adjust the dividend payment
Carrying amount Later - -
Opening balance of cash flow hedge (0.59) (0.08) to shareholders, return capital to shareholders or issue new
Variable rate instruments Financial Year Financial Year Other Financial liabilities 30.02 28.82
reserve 2021-2022 2020-2021
shares.
Less than 1 year 30.02 28.82
Effective portion of changes in fair (0.37) (4.57) Long term borrowings - - 1-2 year - -
value arising from Foreign exchange The Company monitors capital using a gearing ratio, which
Current maturities of long term debt - - 2-5 year - - is net debt divided by total capital plus net debt. The
forward contracts
Short term borrowings 42.75 - 5-10 year - - Company’s gearing ratio was as follows:
Amount reclassified to profit or loss 0.88 3.91
Later - - in ` Crore
Tax effect (0.12) 0.15 Financial Year Financial Year
Closing balance of cash flow hedge (0.20) (0.59) Cash flow sensitivity analysis for variable rate instruments (iii) Credit Risk Particulars
2021-22 2020-21
reserve
The following table demonstrates the sensitivity to a reasonably redit risk refers to the risk of default on its contractual terms or
C Borrowings including current 42.75 -
possible change in interest rates on that portion of loans and obligations by the counterparty resulting in a financial loss. The maturities and interest accrued but
borrowings affected. A change of 100 basis points in interest maximum exposure to the credit risk at the reporting date is primarily not due
rates for variable rate instruments at the reporting date would from trade receivables which are typically unsecured. Credit risk on Less: Cash & cash equivalent and 340.89 385.52
have increased/(decreased) profit or loss for the below years by cash and bank balances is limited as the company generally invests in other bank balances
the amounts shown below. With all other variables held constant, deposits with banks and financial institutions with high credit ratings Net debt (A) (298.14) (385.52)
the Company’s profit before tax is affected through the impact on assigned by credit rating agencies. Total equity (B) 1,390.27 1,260.43
floating rate borrowings, as follows: Gearing ratio (A/B) N.A. N.A.

Notes Notes
in ` Crore in ` Crore in ` Crore

Further, there have been no breaches in the financial
covenants of any interest-bearing loans and borrowing in Non-current As at As at For the year For the year
Particulars
borrowing 31-Mar-22 31-Mar-21 Particulars ended ended
the current period. Particulars
Current
including 31-Mar-22 31-Mar-21
borrowing
current
iv. The amount of interest paid along with the - -
amount of payment made to the suppliers Nature of CSR activities Promoting education, healthcare,
There were no changes in the objectives, policies or maturities
eradication of hunger and
beyond the appointed day
processes for managing capital during the year ended Opening balance of Financial liabilities 55.92 0.07 malnutrition, animal care,
31-Mar-2022 and 31-Mar-2021. as on 01-April-2020 v. The amount of interest due and payable for - -
environment sustainability, disaster
coming under the financing activities period of delay in making payment (which
relief, Covid -19 relief, sports and
of Cash Flow Statement have been paid but beyond the appointed
44
In accordance with the Ind AS-36 on Impairment of Assets, day during the year) but without adding the
rural development projects.
the Company has assessed as on the balance sheet date, Changes during the year interest specified under MSME act Detail of related party transaction in 2.01 -
whether there are any indications with regard to the a) Changes from financing cash flow (55.92) (0.07) relations to CSR expenditure as per
vi. The amount of interest accrued and - 0.04
impairment of any of the assets. Based on such assessment b) Changes arising from obtaining or losing - - relevant Accounting Standard[2]
remaining unpaid at the end of the
it has been ascertained that no potential loss is present control of subsidiaries or other business accounting year
and therefore, formal estimate of recoverable amount has c) The effect of changes in foreign - - vii. The amount of further interest due and - -
[1] The shortfall amount is on account of funds that are allocated
not been made. Accordingly no impairment loss has been exchanges rates- (Gain)/Loss payable even in succeeding year, until such to the ongoing projects initiated during the year and being
provided in the books of account d) Changes in fair value - - date when the interest dues as above are unspent as at 31st March 2022 has been transferred to the
actually paid to the small enterprises for the unspent CSR account within 30 days from the end of financial
e) Other changes - -
purpose of dis-allowance as a deductible year in accordance with the Companies Act 2013, read with
45 Reconciliation of Cash flow from financing Processing fee amortized
expenditure under section 23 Companies (Corporate Social Responsibility Policy) Rules,
Activities In pursuant to amendment in the companies Closing balance of Financial liabilities as - -
on 31-March-2021 2014.
(Indian Accounting Standards) Rules, 2017 via MCA 48 Expenditure on Corporate Social Responsibility (CSR)
coming under the financing activities of
notification G.S.R 258(E) dated 17-Mar-2017 Para 44A to Para Cash Flow Statement [2] Represents contribution to IOL-Foundation as a part on
As per Section 135 of the Companies Act, 2013 read with
44E has been inserted after Para 44 in Indian accounting ongoing projects as per Company’s CSR Policy.
Companies (Corporate Social Responsibility Policy) Rules,
Standard-7 Statement of Cash Flows for the period
46 Auditor's Remunerations 2014 (the CSR Rules), a company, meeting the applicability
beginning on 1-April-2017 49 Additional Regulatory Information
in ` Crore in ` Crore criteria requires to spend at least 2% of its average net profit
For the year For the year for the immediately preceding three financial years on i The Company is holding title deed of all Immovable
Non-current
borrowing Particulars ended ended corporate social responsibility (CSR) activities as provided in Properties held in its own name.
Current 31-Mar-22 31-Mar-21
Particulars
borrowing
including Schedule VII of the Companies Act, 2013. The CSR activities
current Statutory Audit Fee 0.12 0.12 are monitored by the CSR Committee formed by the Board ii The Company is not holding any investment
maturities
Tax audit fee 0.03 0.03 of Directors in accordance with the provisions of the Section property.
Opening balance of Financial liabilities - - 135 of the Companies Act 2013 read with CSR Rules.
Taxation matters 0.08 0.08
as on 01-April-2021
Other services including certification 0.02 0.09 iii The Company has not revalued any of its Property, Plant
coming under the financing activities
of Cash Flow Statement
in ` Crore & Equipment and Right of use assets.
0.25 0.32
Changes during the year Particulars ended ended iv The Company has not revalued any of its Intangible
a) Changes from financing cash flow 42.75 - 47
The details of amounts outstanding to Micro, Small and 31-Mar-22 31-Mar-21
Assets
b) Changes arising from obtaining or losing - - Medium Enterprises under the Micro, Small and Medium Amount required to be spent on 9.61 6.01
control of subsidiaries or other business Enterprises Development Act, 2006 (MSMED Act), based on CSR by the Company during the
v The Company has not given any loan or advances to
c) The effect of changes in foreign - - the available information with the Company are as under: year
its Promoters, Directors, KMP and related Parties as
exchanges rates- (Gain)/Loss Amount of expenditure incurred 3.50 3.08
in ` Crore defined under Companies Act, 2013.
d) Changes in fair value - - As at As at
Amount contributed to IOL- 2.01 -
Particulars Foundation as a part on ongoing
e) Other changes - - 31-Mar-22 31-Mar-21 vi The Company does not hold any Benami property
Processing fee amortized projects as per Company’s CSR
i. Principal amount remaining unpaid to any 14.10 11.69 Policy defined under the Benami Transactions (Prohibition)
Closing balance of Financial liabilities 42.75 - supplier as at the end of the accounting year Act, 1988 (as amended in 2016) and rules made
as on 31-March-2022 Shortfall at the end of the year[1] 4.10 2.93
ii. Interest due thereon remaining unpaid to - 0.04 (unspent amount allocated to thereunder. Further, no proceedings have been
coming under the financing activities any supplier as at the end of the accounting
of Cash Flow Statement ongoing project) initiated during the year or are pending against the
period Company as at 31 March, 2022 for holding any benami
Total of previous years shortfall 0.26 -
iii. The amount of interest paid by the buyer in - - property.
terms of section 16 of the MSME Act, along Reasons of shortfall The shortfall The shortfall
with the amount of payment made to the amount is the amount is the
amount that is amount that is vii The quarterly returns for secured borrowings filed
suppliers beyond the appointed day during
each accounting year allocated to the allocated to the with Banks are fully in alignment with its Financial
Ongoing Projects Ongoing Projects Statements.
initiated during initiated during
FY 2021-22 FY 2020-21

Notes Notes
viii The Company has never been declared as wilful xii There is no scheme of Arrangement approved during 51
The Companies (Indian Accounting Standards) second amendment rules 2018 has amended IND-AS 20 Accounting for Government
defaulter by any bank or financial institution or other the year. Grants and Disclosure of Government Grant Assistance”, which gives the option of presentation of amount of Government Grants
lenders. related to asset, including non-monetary grants at fair value in the balance sheet either by setting up the amount of grant as
xiii The company has neither received any share premium deferred income or deducting the amount of grant in arriving at the carrying amount of the assets. The Company made the
ix The company does not have any relationship with any amount nor the company has availed any term loan accounting policy choice of presentation of amount of Government Grant related to asset in the balance sheet by setting up the
struck off company. during the year. The working capital borrowing has amount of grant as deferred income. There is no impact on the profit before tax/after tax for the year ended 31-Mar-2022 and
been utilised by the company in its own business, the 31-Mar-2021.
x All the charges are duly registered with the ROC within company has not loaned or advanced or invested funds
the prescribed time under the Companies Act 2013 & to any other person(s) or entity(ies), including foreign
52
The Code on Social Security, 2020 (‘SS Code’) relating to employee benefits during employment and post-employment benefits
Rules made there under. entities with any understanding.
received Presidential assent in September 2020. The SS Code has been published in the Gazette of India. However, the date on
which the SS Code will come into effect has not been notified. The Company will assess the impact of the SS Code when it comes
xi As at 31 March 2022, the Company is having only one xiv The company has not traded or invested in Crypto
into effect and will record any related impact in the period when the SS Code becomes effective.
wholly owned subsidiary company i.e. IOL-Foundation. currency or Virtual currency during the financial year.

The Company is in compliances of requirement of
number of layer of companies. xv There is no income that has been surrendered or 53 Figures in bracket indicate deductions.
disclosed as income during the year in Tax Assessments
under Income Tax Act,1961. 54
Previous year figures have been regrouped/recasted/rearranged wherever necessary to conform to its classification of the current
year.
50 Financial Ratios:
As per our report of even date attached For and on behalf of the Board of Directors
The following are analytical ratios for the year ended March 31, 2022 and March 31, 2021: For Ashwani & Associates
Ratios Numerator Denominator Current year Previous year Change Note Sd/- Sd/-
Varinder Gupta Vikas Gupta
Current ratio (in times) Current assets Current liabilities 2.10 3.48 -40% [1]
Debt-Equity ratio Debt consists of Shareholder’s 0.03 0.00 Aditya Kumar DIN-00044068 DIN-07198109
(in times) borrowings and lease Equity Partner
liabilities M.No. 506955
Sd/- Sd/- Sd/-
Debt service coverage EBITDA Interest and lease payments 85.46 357.89 -76% [2] Abhay Raj Singh Pardeep Kumar Khanna Dr. Sanjay Chaturvedi
ratio (in times) + Principal repayments of Vice President & Company Secretary Chief Financial Officer Executive Director & CEO
long term borrowings Place : Ludhiana DIN-08927689
Return on Equity ratio Profit after Tax Average Total Equity 12.50% 42.87% -71% [3] Date : 30th May 2022
(in %)
Inventory turnover ratio Cost of goods sold Average inventory 5.05 5.20 -3%
(in times)
Trade receivables Net Sale Average receivables 5.66 6.81 -17%
turnover ratio (Revenue from Operation -
(in times) export incentive)
Trade payables turnover Purchases Average payables 5.50 6.09 -10%
ratio (in times)
Net capital turnover Sales revenue Net working capital (Current 3.86 2.73 41% [4]
ratio Asset - Current Liability)
(in times)
Net profit ratio Profit after Tax Net Sale (Revenue from 7.58% 22.60% -66% [5]
(in %) Operation - export incentive)
Return on Capital EBIT Capital employed (Tangible 16.12% 43.49% -63% [6]
employed (in %) (PBT before exceptional Net Worth+Total Debt+
items + Finance cost) Deferred Tax Liability)
Return on investment Income generated from Average invested funds 5.19% 5.86% -11%
(in %) invested funds
Notes:
[1] Movement of Fixed deposits from current assets to non-current assets and increase in Trade payables
[2] Impact of lower operating profits
[3] Impact of decline in profit margins and increase in average Equity
[4] Increase in sales revenue and decline in net working capital
[5] Impact of lower profitability
[6] Impact fof decline in operating margins and increase in capital employed

Independent Auditor’s Report

TO THE MEMBERS OF IOL CHEMICALS AND PHARMACEUTICALS LIMITED
Report on the Audit of the Consolidated Financial Basis for Opinion fair view of the consolidated financial position, consolidated collusion, forgery, intentional omissions, misrepresentations,
Statements We conducted our audit of the consolidated financial statements financial performance, including other comprehensive income, or the override of internal control.
Opinion in accordance with the Standards on Auditing specified under consolidated changes in equity and consolidated cash flows of
section 143(10) of the Act (SAs). Our responsibilities under those the Company in accordance with the Ind AS and other accounting ● Obtain an understanding of internal control relevant to the
We have audited the accompanying consolidated financial
Standards are further described in the Auditor’s Responsibilities principles generally accepted in India. The respective Boards of audit in order to design audit procedures that are appropriate
statements of IOL Chemicals and Pharmaceuticals Limited
for the Audit of the Financial Statements section of our report. Directors of the companies included in the Group are responsible in the circumstances. Under section 143(3)(i) of the Companies
CIN-(L24116PB1986PLC007030)(“the Company”), and IOL-
We are independent of the Group in accordance with the Code for maintenance of adequate accounting records in accordance Act, 2013, we are also responsible for expressing our opinion
Foundation (“the subsidiary”) CIN-(U85300PB2022NPL055428)
of Ethics issued by the Institute of Chartered Accountants of India with the provisions of the Act for safeguarding the assets of the on whether the company has adequate internal financial
which comprise the Consolidated Balance Sheet as at March 31,
(ICAI) together with the ethical requirements that are relevant Company and for preventing and detecting frauds and other controls system in place and the operating effectiveness of
2022, the Consolidated Statement of Profit and Loss (including
to our audit of the consolidated financial statements under the irregularities; selection and application of appropriate accounting such controls.
Other Comprehensive Income), the Consolidated Statement of
provisions of the Act and the Rules made thereunder, and we have policies; making judgments and estimates that are reasonable
Changes in Equity and the Consolidated Statement of Cash Flows
fulfilled our other ethical responsibilities in accordance with these and prudent; and design, implementation and maintenance ● Evaluate the appropriateness of accounting policies used
for the year ended , and a summary of the significant accounting
requirements and the ICAI’s Code of Ethics. We believe that the of adequate internal financial controls, that were operating and the reasonableness of accounting estimates and related
policies and other explanatory information (hereinafter referred
audit evidence we have obtained is sufficient and appropriate effectively for ensuring the accuracy and completeness of the disclosures made by management.
to as “the consolidated financial statements”).
to provide a basis for our audit opinion on the Consolidated accounting records, relevant to the preparation and presentation
Financial Statements. of the consolidated financial statements that give a true and fair ● Conclude on the appropriateness of management’s use of the
In our opinion and to the best of our information and according to
view and are free from material misstatement, whether due to going concern basis of accounting and, based on the audit
the explanations given to us, the aforesaid consolidated financial
Key Audit Matters fraud or error. evidence obtained, whether a material uncertainty exists
statements give the information required by the Companies Act,
related to events or conditions that may cast significant doubt
2013 (“the Act”) in the manner so required and give a true and Key audit matters are those matters that, in our professional
In preparing the consolidated financial statements, the respective on the ability of the Group to continue as a going concern. If we
fair view in conformity with the Indian Accounting Standards judgment, were of most significance in our audit of the
board of directors of the companies included in the Group are conclude that a material uncertainty exists, we are required to
prescribed under section 133 of the Act read with the Companies Consolidated Financial Statements of the current period. These
responsible for assessing the ability of the respective entities to draw attention in our auditor’s report to the related disclosures
(Indian Accounting Standards) Rules, 2015, as amended, (“Ind AS”) matters were addressed in the context of our audit of the
continue as a going concern, disclosing, as applicable, matters in the Consolidated Financial statements or, if such disclosures
and other accounting principles generally accepted in India, of the Consolidated Financial Statements as a whole, and in forming our
related to going concern and using the going concern basis of are inadequate, to modify our opinion. Our conclusions are
state of affairs of the Company as at March 31, 2022 and its profit opinion thereon, and we do not provide a separate opinion on
accounting unless management either intends to liquidate the based on the audit evidence obtained up to the date of our
,total comprehensive income, changes in equity and its cash flows these matters. We have determined the matters described below
Company or to cease operations, or has no realistic alternative but auditor’s report. However, future events or conditions may
for the year ended on that date. to be the key audit matters to be communicated in our report.
to do so. cause the Group to cease to continue as a going concern.
Key Audit Matters Auditors’ Response
The Board of Directors of the companies included in the Group are ● Evaluate the overall presentation, structure and content of the
Revenue recognition: Principal Audit Procedures:
also responsible for overseeing the financial reporting process of Consolidated Financial statements, including the disclosures,
Refer note 2(i)(v) and note 25 of the consolidated financial statements. We evaluated the design of internal controls over recognition of revenue in the
The Company’s sales revenue mainly arose from sale of Bulk Drugs and appropriate period in accordance with the Company’s accounting policy. On the Group. and whether the Consolidated Financial statements represent
Chemical products. The Company recognizes sales revenue based on a sample basis, we tested the operating effectiveness of the internal control the underlying transactions and events in a manner that
the terms and conditions of transactions, which vary with different relating to determination of point in time at which the transfer of control of Auditor’s Responsibilities for the Audit of the achieves fair presentation.
customers. For sales transactions in a certain period around balance the goods occurs. Consolidated Financial Statements
sheet date, it is essential to ensure whether the transfer of control of We tested the relevant information technology systems used in recording ● Obtain sufficient appropriate audit evidence regarding the
Our objectives are to obtain reasonable assurance about whether
the goods by the Company to the customer occurs before the balance revenue including company’s system generated reports, based on which financial information of the entities within the Group to express
sheet date or otherwise. Considering that there are significant volume selection of samples was undertaken. the consolidated financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to an opinion on the consolidated financial statements.
of sales transactions close to the year end, involving material amounts On sample basis, we performed test of details of sales recorded close to the
and such revenue recognition is subject to whether transfer of control year-end through following procedures: issue an auditor’s report that includes our opinion. Reasonable
to the customers has occurred before the balance sheet date or i) Analysed the terms and conditions of the underlying contract with the assurance is a high level of assurance but is not a guarantee that Materiality is the magnitude of misstatements in the Consolidated
otherwise, we consider the risk of revenue from sale of goods being customer, and an audit conducted in accordance with SAs will always detect a Financial statements that, individually or in aggregate, makes
recognised in the incorrect period, a key audit matter. ii) Verified evidence for transfer of control of the goods prior to the balance material misstatement when it exists. Misstatements can arise it probable that the economic decisions of a reasonably
sheet date or otherwise from relevant supporting documents. knowledgeable user of the consolidated financial statements
from fraud or error and are considered material if, individually or
in the aggregate, they could reasonably be expected to influence may be influenced. We consider quantitative materiality and
Information Other than Financial Statements and In connection with our audit of the consolidated financial
the economic decisions of users taken on the basis of these qualitative factors in (i) planning the scope of our audit work
Auditor’s Report Thereon statements, our responsibility is to read the other information and,
consolidated financial statements. and in evaluating the results of our work; and (ii) to evaluate
in doing so, consider whether the other information is materially
The Company’s Board of Directors is responsible for the the effect of any identified misstatements in the consolidated
inconsistent with the consolidated financial statements or our
preparation of the other information. The other information As part of our audit in accordance with SAs, we exercise financial statements.
knowledge obtained during the course of our audit or otherwise
comprises the information included in the Management professional judgment and maintain professional skepticism
appears to be materially misstated.
Discussion and Analysis, Board’s Report including Annexures throughout the audit. We also: We communicate with those charged with governance of the
to Board’s Report, Business Responsibility Report, Corporate company and the subsidiary regarding, among other matters,
If, based on the work we have performed, we conclude that there is
Governance and Shareholder’s Information, but does not include ● Identify and assess the risks of material misstatement of the the planned scope and timing of the audit and significant audit
a material misstatement of this other information, we are required
the Consolidated Financial Statements, Standalone Financial consolidated financial statements, whether due to fraud or findings, including any significant audit findings, including any
to report that fact. We have nothing to report in this regard.
Statements and our auditor’s report thereon. error, design and perform audit procedures responsive to significant deficiencies in internal control that we identify during
those risks, and obtain audit evidence that is sufficient and our audit.
Management’s Responsibility for the Consolidated
Our opinion on the Consolidated Financial Statements does not appropriate to provide a basis for our opinion. The risk of not
Financial Statements
cover the other information and we do not express any form of detecting a material misstatement resulting from fraud is We also provide those charged with governance with a statement
assurance conclusion thereon. The Company’s Board of Directors are responsible for the matters that we have complied with relevant ethical requirements
higher than for one resulting from error, as fraud may involve
stated in section 134(5) of the Act with respect to the preparation
of these consolidated financial statements that give a true and

Independent Auditor’s Report (Contd.)
regarding independence, and to communicate with them its subsidiary. Our report expresses an unmodified (b)
The respective Managements of the (b) The interim dividend declared and paid by the
all relationships and other matters that may reasonably be opinion on the adequacy and operating effectiveness co mp any an d it s subsidiar y have Company during the year and until the date of
thought to bear on our independence, and where applicable, of the Company’s and the subsidiary’s internal financial represented, that, to the best of their this report is in compliance with Section 123 of
related safeguard. controls over financial reporting of those companies. knowledge and belief, no funds (which the Act.
are material either individually or in the
From the matters communicated with those charged with g) With respect to the other matters to be included in the aggregate) have been received by the 3. With respect to the matters specified in paragraphs 3(xxi)
governance, we determine those matters that were of most Auditor’s Report in accordance with the requirements Company and its subsidiary from any person and 4 of the Companies (Auditor’s Report) Order, 2020 (the
significance in the audit of the Consolidated Financial Statements of section 197(16) of the Act, as amended: or entity, including foreign entity (“Funding “Order”/ “CARO”) issued by the Central Government in terms
of the current period and are therefore the key audit matters. Parties”), with the understanding, whether of Section 143(11) of the Act, to be included in the Auditor’s
We describe these matters in our auditor’s report unless law or In our opinion and to the best of our information recorded in writing or otherwise, that the report, according to the information and explanations given
regulation precludes public disclosure about the matter or when, and according to the explanations given to us, the Company or its subsidiary shall, whether, to us, and based on the CARO reports issued by us for the
in extremely rare circumstances, we determine that a matter remuneration paid by the Company to its directors directly or indirectly, lend or invest in other Company and its subsidiary included in the consolidated
should not be communicated in our report because the adverse during the year is in accordance with the provisions of persons or entities identified in any manner financial statements of the Company, to which reporting
consequences of doing so would reasonably be expected to section 197 of the Act. whatsoever by or on behalf of the Funding under CARO is applicable, we report that there are no
outweigh the public interest benefits of such communication. Party (“Ultimate Beneficiaries”) or provide qualifications or adverse remarks in these CARO reports.
h) With respect to the other matters to be included any guarantee, security or the like on behalf
Report on Other Legal and Regulatory Requirements in the Auditor’s Report in accordance with Rule 11 of the Ultimate Beneficiaries; For and on behalf of
1. As required by Section 143(3) of the Act, based on our audit, of the Companies (Audit and Auditors) Rules, 2014, Ashwani & Associates
we report that: as amended in our opinion and to the best of our (c)
Based on the audit procedures that Chartered Accountants
information and according to the explanations given have been considered reasonable and Firm Registration Number: 000497N
a) We have sought and obtained all the information and to us: appropriate in the circumstances performed by the hand of
explanations which to the best of our knowledge and by us on the company and its subsidiary,
belief were necessary for the purposes of our audit of i. The consolidated financial statements disclose the nothing has come to our notice that has Sd/-
the aforesaid consolidated financial statements. impact of pending litigations on its Consolidated caused us to believe that the representations Aditya Kumar
financial position – Refer Note 36 under sub-clause (i) and (ii) of Rule 11(e), as Partner
b) In our opinion, proper books of account as required provided under (a) and (b) above, contain Place: Ludhiana Membership No.: 506955
by law relating to preparation of the aforesaid ii. The Group does not have any long-term contracts any material misstatement. Dated: May 30th, 2022 UDIN: 22506955AJXKIP4358
consolidated financial statements have been kept by so including derivative contracts for which there
far as it appears from our examination of those books. were any material foreseeable losses. v.
As stated in Note 14(b) to the consolidated
financial statements
c) T he Consolidated Balance Sheet, the Consolidated iii. There has been no delay in transferring amounts,
Statement of Profit and Loss including Other required to be transferred, if any, to the Investor (a) The final dividend proposed in the previous year,
Comprehensive Income, Consolidated Statement of Education and Protection Fund by the company declared and paid by the Company during the
Changes in Equity and the Consolidated Statement of and its subsidiary company. year is in compliance with Section 123 of the Act,
Cash Flow dealt with by this Report are in agreement as applicable.
with the books of account maintained for the purpose iv. (a)
The respective Managements of the
of preparation of the consolidated financial statements. company and it’s subsidiary has represented
that, to the best of their knowledge and
d) In our opinion, the aforesaid consolidated financial belief, no funds (which are material either
statements comply with the Ind AS specified under individually or in the aggregate) have been
Section 133 of the Act. advanced or loaned or invested (either
from borrowed funds or share premium or
e) On the basis of the written representations received any other sources or kind of funds) by the
from the directors as on 31st March 2022 taken on Company and it’s subsidiary to or in any other
record by the Board of Directors, none of the directors person or entity, including foreign entity
of the company and its subsidiary is disqualified as on (“Intermediaries”), with the understanding,
March 31, 2022 from being appointed as a director in whether recorded in writing or otherwise,
terms of Section 164 (2) of the Act. that the Intermediary shall, whether,
directly or indirectly lend or invest in other
f) With respect to the adequacy of the internal financial persons or entities identified in any manner
controls over financial reporting of the Company whatsoever by or on behalf of the Company
and the operating effectiveness of such controls, or its subsidiary (“Ultimate Beneficiaries”) or
refer to our separate Report in “Annexure A” which provide any guarantee, security or the like on
is based on the auditor’s reports of the company and behalf of the Ultimate Beneficiaries;

Annexure ‘A’ to the Independent Auditor’s Report

(Referred to in paragraph 1(f) under ‘Report on Other Legal and Regulatory Requirements’ section of our report to the Members of IOL
Chemicals and Pharmaceuticals Limited of even date)
Report on the Internal Financial Controls Over Our audit involves performing procedures to obtain audit misstatements due to error or fraud may occur and not be respective Companies considering the essential components of
Financial Reporting under Clause (i) of Sub-section 3 of evidence about the adequacy of the internal financial controls detected. Also, projections of any evaluation of the internal internal control stated in the Guidance Note on Audit of Internal
Section 143 of the Companies Act, 2013 (“the Act”) system over financial reporting and their operating effectiveness. financial controls over financial reporting to future periods are Financial Controls Over Financial Reporting issued by the Institute
We have audited the internal financial controls over financial Our audit of internal financial controls over financial reporting subject to the risk that the internal financial control over financial of Chartered Accountants of India.
reporting of IOL Chemicals and Pharmaceuticals Limited (“the included obtaining an understanding of internal financial reporting may become inadequate because of changes in
controls over financial reporting, assessing the risk that a material conditions, or that the degree of compliance with the policies or For and on behalf of
Company”) and IOL-Foundation (“the subsidiary”) as of March 31,
weakness exists, and testing and evaluating the design and procedures may deteriorate. Ashwani & Associates
2022 in conjunction with our audit of the consolidated financial
operating effectiveness of internal control based on the assessed Chartered Accountants
statements of the Company for the year ended on that date.
risk. The procedures selected depend on the auditor’s judgement, Opinion Firm Registration Number: 000497N
Management’s Responsibility for Internal Financial including the assessment of the risks of material misstatement of In our opinion, to the best of our information and according to by the hand of
Controls the financial statements, whether due to fraud or error. the explanations given to us, the Company and its subsidiary
company has, in all material respects, an adequate internal Sd/-
The respective Board of Directors of the Company and its subsidiary
We believe that the audit evidence we have obtained, is sufficient financial controls system over financial reporting and such Aditya Kumar
are responsible for establishing and maintaining internal financial
and appropriate to provide a basis for our audit opinion on the internal financial controls over financial reporting were operating Partner
controls based on the internal control over financial reporting
internal financial controls system over financial reporting of the effectively as at March 31, 2022, based on the criteria for internal Place: Ludhiana Membership No.: 506955
criteria established by the respective Companies considering the
Company and its subsidiary. control over financial reporting criteria established by the Dated: May 30th, 2022 UDIN:22506955AJXKIP4358
essential components of internal control stated in the Guidance
Note on Audit of Internal Financial Controls Over Financial
Meaning of Internal Financial Controls Over Financial
Reporting issued by the Institute of Chartered Accountants of
Reporting
India. These responsibilities include the design, implementation
and maintenance of adequate internal financial controls that were A company’s internal financial control over financial reporting is a
operating effectively for ensuring the orderly and efficient conduct process designed to provide reasonable assurance regarding the
of its business, including adherence to company’s policies, the reliability of financial reporting and the preparation of financial
safeguarding of its assets, the prevention and detection of frauds statements for external purposes in accordance with generally
and errors, the accuracy and completeness of the accounting accepted accounting principles. A company’s internal financial
records, and the timely preparation of reliable financial information, control over financial reporting includes those policies and
as required under the Companies Act, 2013. procedures that (1) pertain to the maintenance of records that,
in reasonable detail, accurately and fairly reflect the transactions
Auditor’s Responsibility and dispositions of the assets of the company; (2) provide
reasonable assurance that transactions are recorded as necessary
Our responsibility is to express an opinion on the Company and its
to permit preparation of financial statements in accordance with
subsidiary’s internal financial controls over financial reporting of
generally accepted accounting principles, and that receipts and
the respective Companies based on our audit. We conducted our
expenditures of the company are being made only in accordance
audit in accordance with the Guidance Note on Audit of Internal
with authorizations of management and directors of the company;
Financial Controls Over Financial Reporting (the “Guidance
and (3) provide reasonable assurance regarding prevention or
Note”) issued by the Institute of Chartered Accountants of India
timely detection of unauthorized acquisition, use, or disposition
and the Standards on Auditing prescribed under Section 143(10)
of the company’s assets that could have a material effect on the
of the Companies Act, 2013, to the extent applicable to an audit
financial statements.
of internal financial controls. Those Standards and the Guidance
Note require that we comply with ethical requirements and plan
Inherent Limitations of Internal Financial Controls
and perform the audit to obtain reasonable assurance about
Over Financial Reporting
whether adequate internal financial controls over financial
reporting was established and maintained and if such controls Because of the inherent limitations of internal financial controls
operated effectively in all material respects. over financial reporting, including the possibility of collusion
or improper management override of controls, material

Consolidated Balance Sheet Consolidated Statement of Profit and Loss

as at 31st March, 2022 for the year ended 31st March, 2022
in ` Crore
Note As at in ` Crore
Particulars
No. 31-Mar-2022 Note For the year ended
Particulars
ASSETS No. 31-Mar-2022
1 Non-current assets Income:
(a) Property, plant and equipment 3.1 559.49 I Revenue from operations 25 2,184.02
(b) Right of use assets 4 0.97 II Other income 26 32.04
(c) Capital work-in-progress 3.3 102.03 2,216.06
III Total income (I+II)
(d) Other Intangible assets 3.2 0.18
(e) Intangible assets under development 3.4 3.17 IV Expenses:
(f )Financial assets Cost of materials consumed 27 1,578.91
(i) Investment in subsidiary 5 205.34 Purchase of stock-in-trade 43.90
(g) Other non-current assets 6 10.30
Total non-current assets 881.48 Changes in inventories of finished goods, work in progress and stock in trade 28 (52.30)
Employee benefits expense 29 141.30
2 Current assets
(a) Inventories 7 409.89 Finance cost 30 8.29
(b) Financial assets Depreciation and amortization expenses 3 43.26
(i) Investments 8 2.37 Other expenses 31 213.92
(ii) Trade receivables 9 469.80
Total expenses (IV) 1,977.28
(iii) Cash and cash equivalents 10 3.56
(iv) Bank balances other than (iii) above 11 136.43 V Profit before exceptional items and tax (III-IV) 238.78
(v) Other financial assets 12 22.98 VI Exceptional items 35 13.93
(c) Current tax assets (net) 24 0.91
VII Profit before tax (V-VI) 224.85
(d) Other current assets 13 34.88
Total current assets 1,080.82 VIII Tax expense:
Total Assets 1,962.30 Current tax 57.01
EQUITY AND LIABILITIES Deferred tax 0.17
Equity Total tax expense (VIII) 32 57.18
(a) Equity share capital 14 58.71 IX Profit for the period (VII-VIII) 167.67
(b) Other equity 15 1,333.57 X Other Comprehensive Income / (loss)
Total equity 1,392.28 A Items that will not be reclassified to profit or loss
Liabilities i) Remeasurement gain/(loss) of defined benefit obligation (1.32)
1 Non-current liabilities ii) Income tax relating to items that will not be reclassified to profit or loss 32 0.33
(a) Financial liabilities
(i) Borrowings - B Items that will be reclassified to profit or loss
(ia) Lease liabilities 16 0.18 i) Net movement in effective portion of cash flow hedge reserve 0.51
(b) Provisions 17 3.01 ii) Income tax relating to items that will be reclassified to profit or loss 32 (0.12)
(c) Deferred tax liabilities (net) 32 53.18 (0.60)
Total Comprehensive Income for the period (IX+X)
(d) Other non-current liabilities 18 0.25
Total non-current liabilities 56.62 XI Total Comprehensive Income for the period (IX+X) 167.07
2 Current liabilities XII Earnings per equity share of ₹10/- each 33
(a) Financial liabilities - Basic ₹ 28.56
(i) Borrowings 19 42.75
- Diluted ₹ 28.56
(ia) Lease liabilities 16 1.02
(ii) Trade payables 20 409.29 Weighted average equity shares used in computing earnings per equity share
(iii) Other financial liabilities 21 30.02 - Basic 5,87,05,502
(b) Other current liabilities 22 22.98 - Diluted 5,87,05,502
(c) Provisions 23 7.34
Total current liabilities 513.40 Corporate information 1
Total Equity and Liabilities 1,962.30 Significant accounting policies 2
Corporate information 1 See accompanying notes forming part of consolidated financial statements
Significant accounting policies 2
See accompanying notes forming part of consolidated financial statements
Firm Registration Number: 000497N Sd/- Sd/- Sd/-
Aditya Kumar Varinder Gupta Vikas Gupta
Sd/- Sd/- Sd/-
Partner Managing Director Executive Director
M. No. 506955 DIN-00044068 DIN-07198109
M. No. 506955 DIN-00044068 DIN-07198109 Sd/- Sd/- Sd/-
Sd/- Sd/- Sd/-
Place : Ludhiana Vice President & Company Secretary Chief Financial Officer Executive Director & CEO
Date : 30th May 2022 DIN-08927689
Date : 30th May 2022 DIN-08927689

Consolidated Statement of Changes in Equity Consolidated Cash Flow Statement

A. Equity Share capital

in ` Crore
(1) Current reporting period
For the year ended
Particulars
Balance as at beginning of Changes in Equity Share Capital Restated balance at the beginning Changes in equity share capital Balance as at the end of the 31-Mar-2022
the current year 01/04/2021 due to prior period errors of the current reporting period during the current year current year 31/03/2022
Cash flow from operating activities
58.71 - 58.71 - 58.71
Profit before tax 224.85

Adjustments for:
B. Other Equity Depreciation and amortisation expense 43.26
(1) Current reporting period Consolidated Statement of changes in Other Equity for the year ended 31-March-2022 Unrealised foreign exchange (Gain)/Loss on foreign currency rate fluctuation (1.28)
Other equity Net (Gain)/Loss on fair valuation of investments measured at fair value through profit or loss (0.02)
Reserves and Surplus Other comprehensive income Subsidy Income amortized (0.07)
Total Interest income on financial assets carried at amortized cost net of rent amortized during the period (0.08)
Particulars Effective
` (Crore)
Capital Securities Retained Remeasurement of portion of cash Liabilities no longer required written back (0.03)
reserve premium Earnings Defined benefit obligation flow hedge
reserve Lease Liability Provision written back (0.08)
Balance as at beginning of the current year 10.76 225.72 971.31 (5.48) (0.59) 1,201.72 Net (Gain)/Loss on Property, plant and equipment sold 0.24
01/04/2021 Loss on Property, plant and equipment discarded 0.85
Remeasurement gain/(loss) of defined benefit (0.99) (0.99) Interest expense 8.29
obligation (net of income tax) (Refer note no.37) Interest income (17.96)
Net movement in effective portion of cash flow 0.39 0.39 33.12
hedge reserve (net of income tax){Refer note
Operating profit before working capital changes 257.97
no.42(i)}
Changes in working capital:
Dividend paid on equity shares (35.22) (35.22)
Increase/(Decrease) in trade payables and other liabilities 183.19
Profit for the year transferred from statement of 167.67 167.67
profit and loss Decrease/(Increase) in trade and other receivables (170.78)
Balance as at the end of the current year 31/03/2022 10.76 225.72 1,103.76 (6.47) (0.20) 1,333.57 Decrease/(Increase) in inventories (114.75)
(102.34)
Cash generated from operations 155.63
For Ashwani & Associates Income tax paid (net) (62.58)
Chartered Accountants Net cash flow from/(used in) operating activities (A) 93.05
Cash flow from investing activities
Sd/- Sd/- Sd/- Purchase of property, plant and equipment including intangible assets and Capital work in progress (153.29)
Proceeds from sale of property, plant and equipment 1.89
M. No. 506955 DIN-00044068 DIN-07198109 Purchase of investment (1.14)
Interest received 18.60
Sd/- Sd/- Sd/-
Bank balances not considered as cash and cash equivalents:
Place : Ludhiana Vice President & Company Secretary Chief Financial Officer Executive Director & CEO Decrease in deposit with banks, having original maturity more than three months 23.55
Date : 30th May 2022 DIN-08927689 Increase in deposit with banks, in earmarked accounts to the extent held as margin money against (9.80)
borrowings and other commitments
Net cash flow from/(used in) investing activities (B) (120.19)
Cash flow from financing activities
Proceeds/(Repayment) of current borrowings 42.75
Interest paid (8.11)
Lease rent payments (1.06)
Dividend paid on Equity shares (35.22)
Net cash flow from/(used in) financing activities (C) (1.64)

Consolidated Cash Flow Statement Notes

for the year ended 31-March-2022 forming part of the consolidated financial statements as at and for the year ended 31st March, 2022
in ` Crore Note 1: Corporate information year are included in the consolidated statement of profit and loss
For the year ended from the date the Company gains control until the date when the
Particulars
31-Mar-2022 IOL Chemicals and Pharmaceuticals Limited (“the Company”) (CIN:
L24116PB1986PLC007030) is a public company domiciled in India Company ceases to control the subsidiary.
Net increase/(decrease) in cash and cash equivalents (A+B+C) (28.78)
and incorporated on 29th September, 1986 under the provisions
Cash and cash equivalents at the beginning of the period 32.34 of the Companies Act, 1956. The shares of the company are listed Profit or loss and each component of other comprehensive income
Cash and cash equivalents at the end of the period * 3.56 on two stock exchanges in India i.e. at National Stock Exchange are attributed to the owners of the Company and to the non-
of India Limited (NSE) and at BSE Limited (BSE). The company is controlling interests. Total comprehensive income of subsidiaries
* Comprises
engaged in the manufacturing and selling of Pharmaceutical and is attributed to the owners of the Company and to the non-
Balances with banks in current account 3.14
Chemical products. The company caters to both domestic and controlling interests even if this results in the non-controlling
Balances with bank in deposit accounts with original maturity of three months or less - interests having a deficit balance. When necessary, adjustments
international market.
Cash on hand 0.42 are made to the financial statements of subsidiaries to bring their
3.56 The registered office of the company is situated at Village & accounting policies into line with the Group’s accounting policies.
Post Office Handiaya, Fatehgarh Chhanna Road, Barnala-148107,
See accompanying notes to the consolidated financial statements Punjab. All intragroup assets and liabilities, equity, income, expenses,
As per our report of even date attached For and on behalf of the Board of Directors and cash flows relating to transactions between members of the
For Ashwani & Associates The consolidated financial statements are approved for issue by Group are eliminated in full on consolidation.
Chartered Accountants the Board of Directors on 30th May, 2022.
Firm Registration Number: 000497N The difference between the proceeds from disposal of investment
Note 2 (i): Basis of consolidation in subsidiaries and the carrying amount of its assets less liabilities
Sd/- Sd/- Sd/-
as on the date of disposal is recognised in the Consolidated
Aditya Kumar Varinder Gupta Vikas Gupta The consolidated financial statements incorporate the financial
Statement of Profit and Loss being the profit or loss on disposal of
Partner Managing Director Executive Director statements of the Company and entities controlled by the
M. No. 506955 DIN-00044068 DIN-07198109 investment in subsidiary.
Company. Control is achieved when the Company:
Sd/- Sd/- Sd/- Non-Controlling Interest’s share of profit/loss of consolidated
Abhay Raj Singh Pardeep Kumar Khanna Dr. Sanjay Chaturvedi ● has power over the investee;
subsidiaries for the year is identified and adjusted against
Place : Ludhiana Vice President & Company Secretary Chief Financial Officer Executive Director & CEO the income of the group in order to arrive at the net income
Date : 30th May 2022 DIN-08927689 ● is exposed, or has rights, to variable returns from its involvement
attributable to shareholders of the Company.
with the investee; and
Non-Controlling Interest’s share of net assets of consolidated
● has the ability to use its power to affect its returns.
subsidiaries is identified and presented in the Consolidated
Balance Sheet separate from liabilities and the equity of the
The Company reassesses whether or not it controls an investee
Company’s shareholders.
if facts and circumstances indicate that there are changes to
one or more of the three elements of control listed above.
In accordance with Para 25 of IND AS 110, retained investments in
former subsidiaries where control is lost during the year; provided
When the Company has less than a majority of the voting
the investee entity remains an associate of the company; are
rights of an investee, it has power over the investee when the
valued at fair value on the date of loss of control and such fair value
voting rights are sufficient to give it the practical ability to direct
is recognised through the consolidated profit and loss statement.
the relevant activities of the investee unilaterally. The Company
Such fair value is regarded as the cost on initial recognition of an
considers all relevant facts and circumstances in assessing
investment in the associate in the consolidated balance sheet of
whether or not the Company’s voting rights in an investee are
the company.
sufficient to give it power, including:
Following subsidiary companies have been considered in the
● the size of the Company’s holding of voting rights relative to
preparation of the consolidated financial statements:
the size and dispersion of holdings of the other vote holders;
% of Holding
and Voting
● Potential voting rights held by the Company, other vote holders Power either
or other parties; Directly or
Name of Country of Ownership indirectly
Relationship
Entity Incorporation Held By through
● rights arising from other contractual arrangements; and Subsidiary
as at
● any additional facts and circumstances that indicate that the 31.03.2022
Company has, or does not have, the current ability to direct the IOL- Subsidiary India IOL Chemicals 100%
relevant activities at the time that decisions need to be made, Foundation and
including voting patterns at previous shareholders’ meetings. Pharmaceuticals
Ltd.
Consolidation of a subsidiary begins when the Company
obtains control over the subsidiary and ceases when the
Company loses control of the subsidiary. Specifically, income
and expenses of a subsidiary acquired or disposed of during the
138 Credible Performance.

Credible Performance. Consistent
Consistent Progress.
Progress. Annual Report 2021-22 139
139
Notes Notes
forming part of the consolidated financial statements as at and for the year ended 31st March, 2022 forming part of the consolidated financial statements as at and for the year ended 31st March, 2022
Note 2 (ii): Significant accounting policies / critical excludes taxes and levies collected on behalf of the VII. Retirement and other employee benefits VIII. Property, plant and equipment
accounting estimates and judgements Government. In accordance with Ind AS 115 on revenue l Defined contribution plans All items of property, plant and equipment are stated at
I. Statement of compliance and schedule III of Companies Act 2013, duties levies cost less accumulated depreciation and impairment if any.
i) Provident fund:
like GST are not part of revenue. Freehold land is stated at cost and not depreciated. The Cost
The consolidated financial statements of the group have Employees receive benefit in the form of Provident fund
been prepared in accordance with the Indian Accounting of an item of Property, Plant and Equipment comprises:
Generally, control is transfer upon shipment of goods which is a defined contribution plan. The group has no
Standards(IND AS) specified under section 133 of the obligation, other than the contribution payable to the
to the customer or when the goods are made available a) Its purchase price net of recoverable taxes wherever
Companies Act, 2013 (“the Act”) read with the Companies provident fund. The group recognises contribution
to the customer, provided the transfer of the title to the applicable and any attributable expenditure (directly
(Indian Accounting Standard) Rules, 2015, as amended from payable to the provident fund scheme as an expense,
customer occurs and the group has not retained any or indirectly) for bringing the asset to its working
time to time. The financial statements have been prepared when an employee renders the related service.
significant title of ownership or future obligations with condition for its intended use.
on going concern basis and all the applicable Ind AS effective
respect to the goods shipped.
as on the reporting date have been complied with. l Defined benefit plans
b) Subsequent expenditures relating to property, plant
Revenue from rendering of services is recognized i) Gratuity: and equipment is capitalized only when it is probable
II. Basis of preparation of consolidated financial
overtime by measuring the progress towards complete The group provides for gratuity a defined benefit that future economic benefits associated with these
statements
satisfaction of performance obligations at the retirement plan “The gratuity plan” covering eligible will flow to the group and the cost of the item can be
The consolidated financial statements have been prepared reporting period. employees. The gratuity plan provides for lump sum measured reliably.
under the historical cost convention on accrual basis except
payment to vested employee at retirement, death,
for certain financial instruments which are measured at Revenue is measured at the amount of consideration incapacitation or termination of employee of an c) Initial estimate of the costs of dismantling and
fair value. which the group expects to be entitled to in exchange amount based on the respective employees’ salary and removing the item and restoring the site on which it is
for transferring distinct goods or services to a customer the tenure of employment with the Group. located, if any, the obligation for which an entity incurs
ccounting policies have been consistently applied except
A as specified in the contract, excluding amounts either where the item is acquired or as a consequence
where a newly issued accounting standard is initially collected on behalf of third parties. Consideration Liability with regard to Gratuity Plan is determined of having used the item during a particular period for
adopted or revision to an existing accounting standard is generally due upon satisfaction of performance by actuarial valuation, performed by an independent purposes other than to produce inventories during
requires a change in the accounting policy hitherto in use. obligations and a receivable is recognized when it actuary at each consolidated Balance sheet date using that period.
becomes unconditional. Generally the credit period the project unit credit method.
III. Functional and presentation currency varies between 0-90 days from the shipment or delivery Depreciation on property, plant and equipment has been
The functional currency of the group is Indian rupee (INR). of goods or services as the case may be. The group fully contributes all ascertained liabilities provided on the straight line method as per the useful life
The consolidated financial statements are presented in to the IOL Chemicals and Pharmaceuticals Ltd Group prescribed in Schedule II to the Companies Act, 2013 except
Indian rupees (INR) and all values are rounded to nearest In case of discounts, rebates, credits, price incentives Gratuity Trust. Contributions are invested in a scheme in respect of the following categories of asset, in whose case
crore up to two decimals, unless otherwise stated. or similar terms, considerations are determined based with Life Insurance Corporation of India as permitted by the life of the assets has been assessed as under based on
on its most likely amount, which is assessed at each Indian Law technical advice, taking into account the nature of the asset,
IV. Use of estimates and judgements reporting period. the estimated usage of the asset, the operating conditions
The preparation of consolidated financial statements, The group recognises the net obligation of a defined of the asset, past history of replacement and maintenance
in conformity with Ind AS requires the group to make ii) Export incentives benefit plan in its consolidated Balance sheet as an asset support, etc.:
estimates, judgements and assumptions. These estimates, The revenue in respect of export benefits is recognised or liability. Gains and losses through re-measurements
judgements and assumptions affect the application of on post export basis at the rate at which the of the net defined benefit liability/ (asset) are As per
accounting policies and the reported amounts of assets and entitlements accrue. recognized in other comprehensive income and are not management estimate
liabilities, the disclosures of contingent assets and liabilities reclassified to profit or loss in subsequent periods. The General plant & equipment on triple 15 years
at the date of the consolidated financial statements and VI. Other income actual return of the portfolio of plan assets, in excess shift basis
reported amounts of revenues and expenses during the i) Dividend of the yields computed by applying the discount rate General plant & equipment on 15 years
period. The application of accounting policies that require used to measure the defined benefit obligations is continuous process
Dividend income from investment is recognised when
critical accounting estimates involving complex and recognized in Other Comprehensive Income.
the right to receive the payment is established. Depreciation is calculated on pro-rata basis from the date of
subjective judgements and use of assumptions in these
installation till the date the asset sold or discarded.
consolidated financial statements have been disclosed in ii) Compensated absences
ii) Interest
notes. Accounting estimates could change from period The employees of the group are entitled for
Interest from customer Advances paid towards the acquisition of property, plant
to period. Actual results could differ from those estimates. compensated absences. The employee can carry and equipment outstanding at each consolidated balance
Appropriate changes in estimates are made as management Revenue from interest is recognised on a time forward a portion of unutilised accumulated sheet date is classified as capital advances under other
become aware of changes in circumstances surrounding proportion basis taking into account the amount compensated absences and utilise it in future period non-current assets and the cost of assets not put to use
the estimates. Changes in estimates are reflected in the outstanding and rate applicable. or encash the leaves on retirement or on termination. before such date are disclosed under Capital work-in-
consolidated financial statements in the period in which Compensated absences which are not expected to progress. The depreciation method, useful lives and residual
changes are made, and if material, their effects are disclosed Other interest occur within twelve months after the end of the period value are reviewed periodically and at the end of each
in the notes to the financial statements. Interest income is recognised using effective interest in which the employee renders the related services are reporting period.
rate (EIR). recognised as a liability at the consolidated Balance
V. Revenue recognition from operations Sheet date, the cost of providing benefit is determined IX. Intangible assets
i) Revenue from sale of goods and services iii) Insurance and other claims based on actuarial valuation using projected unit credit
Intangible assets are stated at cost less accumulated amount
Revenue from contracts with customer is recognized Insurance and other claims are recognized when method. Actuarial gain /loss are recognised in the
of amortisation and impairment if any. Intangible assets are
when control of goods or services are transferred to the there exist no significant uncertainty with regard statement of profit or loss in the period in which they
amortised over their respective individual estimated useful
customer at an amount that reflects the consideration to the amount to be realized and the ultimate occur. Non accumulating compensated absences are
lives on a straight line basis, from the date that they are
entitled in exchange for those goods or services, and collection thereof. recognised in the period, in which the absences occur.
available for use. The estimated useful life of an identifiable

Notes Notes
intangible asset is based on a number of factors including XIII Segment information Lease liability and ROU assets have been separately are enacted or substantively enacted, at the reporting date.
the effects of obsolescence etc. The amortization method, Segment information is prepared in conformity with Ind presented in the consolidated Balance Sheet and lease Deferred tax is recognised using the balance sheet approach
estimated useful lives are reviewed periodically and at end of AS 108 “Operating Segments” and the accounting policies payments have been classified as financing cash flows. on temporary differences between the carrying amounts of
each reporting period. adopted for preparing and presenting the consolidated assets and liabilities in the consolidated financial statements
financial statements of the enterprise as a whole. l The group as a lessor and the corresponding tax bases used in the computation of
The estimated useful life of intangible assets is as follows: Leases for which the group is a lessor is classified as taxable profit. Deferred tax assets are generally recognised
Intangible assets Estimated useful life XIV Leases finance or operating leases. Whenever the terms of for all deductible temporary differences, the carry forward
Software 6 years the lease transfer substantially all the risks and rewards of unused tax credits and unused tax losses to the extent
l The Group as a lessee
of ownership to the lessee, the contract is classified that it is probable that taxable profits will be available
Technical know 5 Years The Group’s lease asset classes primarily consist of leases
as a finance lease. All other leases are classified as against which those deductible temporary differences can
for land and buildings. The group assesses whether a be utilised. Such deferred tax assets and liabilities are not
X. Inventories operating leases.
contract contains a lease, at inception of a contract. A recognised if the temporary difference arises from the initial
Inventories are valued at cost or net realisable value contract is, or contains, a lease if the contract conveys recognition (other than in a business combination) of assets
For operating leases, rental income is recognized on a
whichever is lower. The cost in respect of various items of the right to control the use of an identified asset for a and liabilities in a transaction that affects neither the taxable
straight line basis over the term of the relevant lease.
inventories is computed as under: period of time in exchange for consideration. To assess profit nor the accounting profit.
whether a contract conveys the right to control the use
XV. Foreign currency transactions
a) Raw Material and First in first out method plus direct of an identified asset, the group assesses whether: (i) Minimum Alternate Tax (MAT) paid as current tax expense in
Components expenses the contract involves the use of an identified asset (ii) Transactions in foreign currency are recorded, on initial
accordance with the tax laws, which gives future economic
the group has substantially all of the economic benefits recognition in the functional currency, by applying to the
b) Stores and Spares Weighted average method plus direct benefits in the form of adjustment to future income tax
from use of the asset through the period of the lease foreign currency amount the exchange rate between the
expenses liability, is considered as tax credit and recognised as
and (iii) the group has the right to direct the use of functional currency and the foreign currency at the date of
c) Work-in-progress Cost of material plus appropriate share deferred tax asset when there is reasonable certainty that
the asset. the transaction.
of overheads thereon at different stage the group will pay normal income tax in the future years
of completion. and future economic benefit associated with it will flow to
At the date of commencement of the lease, the Monetary items denominated in foreign currency
d) Finished Goods Cost of material plus conversion cost, the group.
group recognizes a right-of-use (ROU) asset and a are restated using the prevailing exchange rate as on
packing cost, and other overheads
incurred to bring the goods to their corresponding lease liability for all lease arrangements consolidated balance sheet date.
The carrying amount of deferred tax assets is reviewed at the
present conditions and location. in which it is a lessee, except for leases with a term of end of each reporting period and reduced to the extent that
e) Material in Transit Actual cost plus direct expenses to the 12 months or less (short-term leases) and low value Exchange differences arising on the settlement of monetary
it is no longer probable that sufficient taxable profits will be
extent incurred. leases. For these short term and low-value leases, the items or on reinstatement of monetary items at rates
available to allow all or part of the asset to be recovered.
group recognizes the lease payments as an operating different from rates at which these were translated on
XI. Government grants expense on a straight-line basis over the term of the initial recognition during the period or reported in previous
Deferred tax liabilities and assets are measured at the tax
lease. Certain lease arrangements include the options consolidated financial statements as recognised in the
The government grants are recognised only when there rates that are expected to apply in the period in which the
to extend or terminate the lease before the end of the consolidated statement of profit or loss in the period in
is a reasonable assurance of compliance that conditions liability is settled or the asset realised, based on tax rates (and
lease term. ROU assets and lease liabilities include these which they arise.
attached to such grants shall be complied with and it is tax laws) that have been enacted or substantively enacted by
reasonably certain that the ultimate collection will be made. options when it is reasonably certain that they will be the end of the reporting period.
exercised. The ROU assets are initially recognized at Foreign exchange differences regarded as an adjustment to
cost, which comprises the initial amount of the lease borrowing costs are presented in the statements of profit
Government grants related to revenue are recognised on Current and deferred tax are recognised in statement of
liability adjusted for any lease payments made at or and loss, within finance cost. All other foreign exchange
a systematic basis in the statement of profit and loss over profit and loss, except when they relate to items that are
prior to the commencement date of the lease plus gains and losses are presented in the consolidated statement
the periods necessary to match them with the related costs recognised in other comprehensive income or directly in
any initial direct costs less any lease incentives. They of profit and loss on net basis.
which they are intended to compensate. equity, in which case, the current and deferred tax are also
are subsequently measured at cost less accumulated recognised in other comprehensive income or directly in
depreciation and impairment losses. Non-monetary items are measured in terms of historical cost
Government grant in relation to fixed asset is treated as equity respectively. Deferred tax assets and deferred tax
in a foreign currency is translated using the exchange rate at
deferred income and is recognised in the statement of profit liabilities are off-set if a legally enforceable right exists to
ROU assets are depreciated from the commencement the date of the transaction.
and loss on a systematic basis over the useful life of the asset. set off current tax assets against current tax liabilities and
date on a straight-line basis over the shorter of the lease the deferred taxes relates to the same taxable entity and the
term and useful life of the underlying asset. ROU assets In case of an asset, expenses or income where a non-
XII. Borrowing costs same taxation authority.
are evaluated for recoverability whenever events or monetary advance is paid/ received, the date of transaction
Borrowing costs that are directly attributable to the is the date on which the advance was initially recognized.
changes in circumstances indicate that their carrying XVII. Earnings per share
acquisition or construction of a qualifying asset are If there were multiple payments or receipts in advance,
amounts may not be recoverable.
capitalised as a part of cost of such asset. Qualifying asset multiple dates of transactions are determined for each Basic earnings per share are computed by dividing the
is one that takes substantial period of time to get ready for payment or receipt of advance consideration. consolidated net profit or loss after tax for the period
The lease liability is initially measured at amortized cost
its intended use. All other borrowing costs are recognised attributable to equity shareholders by the weighted average
at the present value of the future lease payments. The
as expenditure in the period in which these are incurred. XVI. Accounting for taxes on income number of equity shares outstanding during the period.
lease payments are discounted using the interest rate
Borrowing costs consist of interest and other costs that an
implicit in the lease. Income tax expense comprises current income tax and
entity incurs in connection with the borrowing of funds. For the purpose of calculating diluted earnings per share,
deferred tax.
Borrowing cost also includes exchange difference, if any, to the net profit or loss for the period attributable to equity
Lease liabilities are re-measured with a corresponding
the extent regarded as an adjustment to the borrowing cost. shareholder and the weighted average number of shares
adjustment to the related ROU asset if the group Current tax expense for the period is ascertained on the
outstanding during the period are adjusted for the effects of
changes its assessment of whether it will exercise an basis of assessable profits computed in accordance with
all dilutive potential equity shares, if any.
extension or a termination option. the provisions of the Income-tax Act, 1961. The tax rates
and tax laws used to compute the amount are those that

Notes Notes
Diluted earnings per equity share is computed by dividing The group has made an irrevocable election for employed as hedges of transactions included in or no longer qualifies for hedge accounting. At that
the net profit attributable to the equity holders of the Group its investment which are classified as equity the consolidated financial statements or for highly time, any cumulative gain or loss on the hedging
by the weighted average number of equity shares considered instruments to present the subsequent changes in probable forecast transactions/firm contractual instrument recognised in equity is retained in equity
for deriving basic earnings per equity share and also the fair value in other comprehensive income based commitments. These derivatives contracts do not until the forecasted transaction occurs. If a hedged
weighted average number of equity shares that could have on its business model. Further, in cases where the generally extend beyond six months. transaction is no longer expected to occur, the
been issued upon conversion of all dilutive potential equity group has made an irrevocable election based on net cumulative gain or loss recognised in equity is
shares. The dilutive potential equity shares are adjusted for its business model, for its investment which are Derivatives are initially accounted for and measured at transferred to the consolidated statement of profit and
the proceeds receivable had the equity shares been actually classified as equity instruments, the subsequent fair value on the date the derivative contract is entered loss for the period.
issued at fair value (i.e. the average market value of the changes in fair value are recognized in other into and are subsequently re-measured to their fair
outstanding equity shares). Dilutive potential equity shares comprehensive income. value at the end of each reporting period. De-recognition of financial instruments
are deemed converted as at the beginning of the period, A financial asset is derecognized when the contractual
unless issued at a later date. Dilutive potential equity shares 3. Financial assets at fair value through profit The group adopts hedge accounting for forward foreign rights to the cash flows from the financial asset expire or
are determined independently for each period presented. or loss exchange contracts wherever possible. At inception of it transfers the financial asset and the transfer qualifies
A financial asset which is not classified in any of each hedge, there is a formal, documented designation for De recognition under Ind AS 109.
XVIII. Financial instruments the above categories is subsequently measured at of the hedging relationship. This documentation
A financial instrument is any contract that gives rise to a fair value through profit or loss. includes, inter alia, items such as identification of the A financial liability is derecognized when the obligation
financial asset of one entity and a financial liability or equity hedged item and transaction and nature of the risk specified in the contract is discharged or cancelled
instrument of another entity. 4. Financial liabilities being hedged. At inception, each hedge is expected or expires.
to be highly effective in achieving an offset of changes
The financial liabilities are subsequently carried
i. Initial recognition and measurement in fair value or cash flows attributable to the hedged Fair value of financial instruments
at amortized cost using the effective interest
risk. The effectiveness of hedge instruments to reduce
All financial assets and liabilities are recognized at fair method. For trade and other payables maturing The fair value of financial instruments is determined
the risk associated with the exposure being hedged
value on initial recognition. within one year from the consolidated balance using the valuation techniques that are appropriate
is assessed and measured at the inception and on an
sheet date, the carrying amounts approximate in the circumstances and for which sufficient data are
ongoing basis. The ineffective portion of designated
Transaction cost in relation to financial assets and fair value due to the short maturity of available to measure fair value, maximizing the use of
hedges is recognised immediately in the statement of
financial liabilities other than those carried at fair value these instruments. relevant observable inputs and minimizing the use of
profit and loss.
through profit or loss (FVTPL) are added to the fair value unobservable inputs.
on initial recognition. l Financial assets or financial liability at fair value
When hedge accounting is applied:
through profit or loss Based on the three level fair value hierarchy, the
Transaction cost that are directly attributable to the ● for fair value hedges of recognised assets and liabilities, methods used to determine the fair value of financial
This category has financial assets or liabilities which are
acquisition or issue of financial assets and financial changes in fair value of the hedged assets and liabilities assets and liabilities include quoted market price,
not designated as hedges.
liabilities that are carried at fair value through profit or attributable to the risk being hedged, are recognised discounted cash flow analysis and valuation certified by
loss are immediately recognized in the statement of in the consolidated statement of profit and loss and the external valuer.
Although the group believes that these derivatives
profit or loss. compensate for the effective portion of symmetrical
constitute hedges from an economic perspective,
changes in the fair value of the derivatives. In case of financial instruments where the carrying
they may not qualify for hedge accounting under Ind
ii. Subsequent measurement AS 109, Financial Instruments. Any derivative that is amount approximates fair value due to the short
● For cash flow hedges, the effective portion of the maturity of those instruments, carrying amount is
l Non-derivative financial instruments either not designated a hedge, or is so designated
change in the fair value of the derivative is recognised considered as fair value.
1. Financial assets carried at amortised cost but is ineffective as per Ind AS 109, is categorized as a
directly in other comprehensive income and the
financial asset or financial liability, at fair value through
A financial asset is subsequently measured at ineffective portion is recognised in the consolidated XIX Impairment of assets
profit or loss.
amortised cost if it is held within a business model statement of profit and loss. If the cash flow hedge of
i. Financial assets
whose objective is to hold the asset in order to a firm commitment or forecasted transaction results
Derivatives not designated as hedges are recognized The group recognizes loss allowances using the
collect contractual cash flows and the contractual in the recognition of a non-financial asset or liability,
initially at fair value and attributable transaction expected credit loss (ECL) model for the financial assets
terms of the financial asset give rise on specified then, at the time the asset or liability is recognised,
costs are recognized in net profit in the consolidated which are not fair valued through profit or loss.
dates to cash flows that are solely payments the associated gains or losses on the derivative that
statement of profit and loss when incurred. Subsequent
of principal and interest on the principal had previously been recognised in equity are included
to initial recognition, these derivatives are measured Loss allowance for trade receivables with no significant
amount outstanding. in the initial measurement of the asset or liability. For
at fair value through profit or loss and the resulting financing component is measured at an amount equal
hedges that do not result in the recognition of a non-
exchange gains or losses are included in other income. to lifetime ECL. For all other financial assets, expected
2. Financial assets at fair value through other financial asset or a liability, amounts deferred in equity
Assets/ liabilities in this category are presented as credit losses are measured at an amount equal to the
comprehensive income are recognised in the consolidated statement of profit
current assets/current liabilities if they are either held 12-month ECL, unless there has been a significant
A financial asset is subsequently measured at fair and loss in the same period in which the hedged item
for trading or are expected to be realized within 12 increase in credit risk from initial recognition in which
value through other comprehensive income if it affects the consolidated statement of profit and loss.
months after the balance sheet date. case those are measured at lifetime ECL. The amount
is held within a business model whose objective
In cases where hedge accounting is not applied, of expected credit losses (or reversal) that is required
is achieved by both collecting contractual l erivative financial instruments and hedge
D
changes in the fair value of derivatives are recognised to adjust the loss allowance at the reporting date to the
cash flows and selling financial assets and the accounting
in the consolidated statement of profit and loss as and amount that is required to be recognised is recognized
contractual terms of the financial asset give rise
In the ordinary course of business, the group uses when they arise. as an impairment gain or loss in statement of profit
on specified dates to cash flows that are solely
certain derivative financial instruments to reduce or loss.
payments of principal and interest on the principal
business risks which arise from its exposure to foreign. Hedge accounting is discontinued when the hedging
amount outstanding.
The instruments are confined principally to forward instrument expires or is sold, terminated, or exercised,
foreign exchange contracts. The instruments are

Notes Notes
ii. Impairment of property, plant and equipment and Contingent liability is disclosed in the case of: Recognition of deferred tax assets Ind AS 16 – Proceeds before intended use
intangible assets The amendment clarifies that excess of net sale proceeds of items
Property, plant and equipment and intangible assets ● A present obligation arising from past events, when it is Recognition of deferred tax assets depends upon the availability produced over the cost of testing, if any, shall not be recognized
are evaluated for recoverability whenever events or not probable that an outflow of resources will be required of future profits against which tax losses carried forward can in the profit or loss but deducted from the directly attributable
changes in circumstances indicate that their carrying to settle the obligation; be used. costs considered as part of cost of an item of property, plant, and
amounts may not be recoverable. For the purpose of equipment. The Company does not expect the amendments
impairment testing, the recoverable amount (i.e. the ● A present obligation arising from past events, when no Note 2 (iv): Estimation of uncertainties relating to the to have any impact in its recognition of its property, plant and
higher of the fair value less cost to sell and the value- reliable estimate is possible; global health pandemic from COVID-19 equipment in its financial statements.
in-use) is determined on an individual asset basis unless The group has considered the possible effects that may result
the asset does not generate cash flows that are largely ● possible obligation arising from past events, unless the
A from the pandemic relating to COVID-19 on the carrying amounts Ind AS 109 – Annual Improvements to Ind AS (2021)
independent of those from other assets. In such cases, probability of outflow of resources is remote. of receivables and other assets. In developing the assumptions The amendment clarifies which fees an entity includes when it
the recoverable amount is determined for the CGU relating to the possible future uncertainties in the global applies the ‘10 percent’ test of Ind AS 109 in assessing whether
(Cash Generating unit) to which the asset belongs. Commitments include the amount of purchase order (net economic conditions because of this pandemic, the group, as at to derecognise a financial liability. The Company does not
of advances) issued to parties for completion of assets. the date of approval of these consolidated financial statements expect the amendment to have any significant impact in its
If such assets are considered to be impaired, the has used internal and external sources of information including financial statements.
impairment to be recognized in the consolidated Provisions, contingent liabilities, contingent assets and credit reports and related information, economic forecasts. The
statement of profit and loss is measured by the amount commitments are reviewed at each balance sheet date. group has performed sensitivity analysis on the assumptions Ind AS 116 – Annual Improvements to Ind AS (2021)
by which the carrying value of the assets exceeds used and based on current estimates expects the carrying
XXIII. Current and non-current classification The amendments remove the illustration of the reimbursement
the estimated recoverable amount of the asset. An amount of these assets will be recovered. The impact of COVID-19
of leasehold improvements by the lessor in order to resolve any
impairment loss is reversed in the statement of profit The group has ascertained its operating cycle as twelve on the consolidated financial statements may differ from that
potential confusion regarding the treatment of lease incentives
and loss if there has been a change in the estimates months for the purpose of current / non-current classification estimated as at the date of approval of these consolidated
that might arise because of how lease incentives were described
used to determine the recoverable amount. The of assets and liabilities. This is based on the nature of financial statements.
in that illustration. The Company does not expect the amendment
carrying amount of the asset is increased to its revised products and the time between acquisition of assets for
to have any significant impact in its financial statements.
recoverable amount, provided that this amount does processing and their realisation in cash and cash equivalents. Note 2 (v): Recent pronouncements
not exceed the carrying amount that would have been Current Assets and current liabilities includes current portion Ministry of Corporate Affairs (“MCA”) notifies new standard or
determined (net of any accumulated depreciation) had of non-current financial assets and non-current financial amendments to the existing standards under Companies (Indian
no impairment loss been recognized for the asset in liabilities respectively. Accounting Standards) Rules as issued from time to time. On
prior years. March 23, 2022, MCA amended the Companies (Indian Accounting
Note 2 (iii): Critical accounting estimates Standards) Amendment Rules, 2022, applicable from April 1, 2022,
XX. Cash flow statement Useful lives of property, plant and equipment as below:
The consolidated cash flow statement is prepared in
accordance with the Indian Accounting Standard (Ind AS) – T he estimated useful lives of property, plant and equipment
7 “Statement of Cash flows” using the indirect method for are based on a number of factors including the effects of
operating activities. obsolescence, internal assessment of user experience and other
economic factors (such as the stability of the industry, and known
XXI. Cash and cash equivalent technological advances) and the level of maintenance expenditure
Cash and cash equivalent for the purpose of consolidated required to obtain the expected future cash flows from the asset.
statement of cash flows include bank balances, where the
original maturity is three months or less. Other short term T he group reviews the useful life of property, plant and equipment
highly liquid investments that are readily convertible into at the end of each reporting date.
cash and which are subject to an insignificant risk of changes
in value. Bank overdrafts are included as a component of Recoverable amount of property, plant and equipment
cash and cash equivalent for the purpose of statement of
cash flow. T he recoverable amount of property plant and equipment is based
on estimates and assumptions regarding the expected market
XXII. Provisions and contingent liabilities outlook and expected future cash flows. Any changes in these
assumptions may have a material impact on the measurement of
A provision is recognized if, as a result of past event, the
the recoverable amount and could result in impairment.
group has a present obligation (legal or constructive) and on
management judgement that is reasonably estimable and
Post-retirement benefit plans
it is probable that an outflow of economic benefits will be
required to settle the obligation.
E mployee benefit obligations are measured on the basis of
actuarial assumptions including any changes in these assumptions
If the effect of the time value of money is material, provisions
that may have a material impact on the resulting calculations.
are discounted using a current pre-tax rate that reflects,
when appropriate, the risks specific to the liability. When
discounting is used, the increase in the provision due to the
passage of time is recognized as finance cost.

Notes Notes
Note 3.1 : Property, Plant and Equipment 3.3a Capital work in progress (CWIP) ageing schedule as on 31.03.2022 in ` Crore
in ₹ Crore Amount in CWIP for a period of
Total
Gross carrying value Depreciation and Amortisation Net carrying value Less than 1 year 1 - 2 years 2 - 3 years More than 3 years
Elimination on Projects in progress 85.86 16.17 102.03
Disposals /
Particulars As at Disposals / As at As at
As at adjustment / As at For the As at Projects temporarily suspended - -
Additions 31-Mar- adjustment / 31-Mar- 31-Mar-
1-Apr-2021 assets held 1-Apr-2021 year * 1-Apr-2021
2022 assets held 2022 2022 Total 85.86 16.17 - - 102.03
for sale
for sale
Freehold Land 42.27 13.80 - 56.07 - - - - 56.07 42.27 Capital work in progress (CWIP) completion schedule as on 31.03.2022 in ₹ Crore
Buildings 87.69 12.40 - 100.09 12.24 3.82 - 16.06 84.03 75.45 To be completed in
Plant and Equipment Projects Total
531.72 64.90 (6.82) 589.80 146.10 36.91 (4.16) 178.85 410.95 385.62 Less than 1 year 1 - 2 years 2 - 3 years More than 3 years
Furniture and Fixtures 2.37 0.65 - 3.02 0.85 0.24 - 1.09 1.93 1.52 Growth Projects 101.67 0.23 101.90
Vehicles 7.30 2.50 (1.82) 7.98 3.19 0.91 (0.99) 3.11 4.87 4.11 Environment, safety and compliance 0.13 - 0.13
Office Equipments 1.75 1.33 (0.46) 2.62 0.97 0.44 (0.43) 0.98 1.64 0.78 Total 101.80 0.23 - - 102.03
Total 673.10 95.58 (9.10) 759.58 163.35 42.32 (5.58) 200.09 559.49 509.75

3.4a Intangible assets under development ageing schedule as on 31.03.2022 in ₹ Crore
Note 3.2 : Intangible assets
Amount of Intangible assets under development for a period of
in ₹ Crore Total
Less than 1 year 1 - 2 years 2 - 3 years More than 3 years
Gross carrying value Depreciation and Amortisation Net carrying value
Projects in progress 3.17 3.17
Elimination on
Particulars As at As at As at Projects temporarily suspended -
As at Disposals / As at For the disposal / As at
Additions 31-Mar- 31-Mar- 31-Mar-
1-Apr-2021 adjustment 1-Apr-2021 year * adjustment 1-Apr-2021 Total 3.17 - - - 3.17
2022 2022 2022
of assets
Computer Softwares 0.76 0.14 (0.01) 0.89 0.58 0.13 - 0.71 0.18 0.18
Technical Knowhow 0.55 - - 0.55 0.52 0.03 - 0.55 - 0.03
Intangible assets under development completion schedule as on 31.03.2022 in ₹ Crore
To be completed in
Total 1.31 0.14 (0.01) 1.44 1.10 0.16 - 1.26 0.18 0.21 Projects Total
Grand total 674.41 95.72 (9.11) 761.02 164.45 42.48 (5.58) 201.35 559.67 509.96 Less than 1 year 1 - 2 years 2 - 3 years More than 3 years
Software commissioning 3.17 3.17
Total 3.17 - - - 3.17
Note 3.3 : Capital work in progress
Particulars As at 1-Apr-2021 Additions Capitalised As at 31-Mar-2022
Capital work in progress 48.27 121.01 67.25 102.03 4 Right of use assets 6 Other Non current assets
in ₹ Crore in ₹ Crore
As at As at
Note 3.4 : Intangible assets under development Particulars
31-Mar-2022
Particulars
31-Mar-2022
Particulars As at 1-Apr-2021 Additions Capitalised As at 31-Mar-2022 Right of use assets (Refer note no.38) 2.40 (Unsecured considered good) 4.31
Capital work in progress - 3.17 - 3.17 Deletions of rights of use assets (0.58) Capital advances
Less: Depreciation on right of use asset (0.85) Advances other than capital advances 0.86
* Depreciation for the year 2021-22 42.48 0.97 - Security deposit 0.15
Less: Amount transferred from deferred revenue (0.07) - Lease hold land prepayments 0.20
Add: Depreciation on Right of use Assets (Refer note no.38) 0.85 5 Other financial assets - Non Current - Prepaid expenses 4.78
Depreciation charged to statement of profit or loss 43.26 in ₹ Crore Balance and deposits with government department or
Particulars
As at others *
31-Mar-2022
Notes: 10.30
No borrowing cost has been capitalized during the current period. Security deposit (to related party) (Refer note no.41) 0.82
*This includes an amount of ` 1 crore deposited by the company towards
Interest receivable 0.81
custom duty under protest as a part of ongoing enquiry by Custom Authorities.
Fixed deposits account with remaining maturity of more 185.06
than twelve months
Balances with banks in earmarked accounts to the
extent held as margin money against borrowings and
other commitments
Fixed deposits account with remaining maturity of more 18.65
than twelve months
205.34

Notes Notes
7 Inventories * 9 Trade receivables The following is the detail of allowance for lifetime expected credit loss: 13 Other Current Assets in ` Crore

in ₹ Crore in ₹ Crore
in ` Crore As at
Particulars
As at As at 31-Mar-2022
Particulars Particulars As at
31-Mar-2022 31-Mar-2022 Particulars
31-Mar-2022 (Unsecured considered good unless otherwise stated)
Raw materials and components 243.26 (Unsecured considered good)
Allowances for expected credit loss and doubtful Advances against supply of goods and services
(including ₹ 156.62 Crore- as at 31-March-2022 in transit From related parties (Refer note no.41) - receivables - to related party (refer note no.41) -
and at port ) Trade receivables considered good - Unsecured * 470.53 - Balance at the beginning of the period 0.12 - to others 5.77
Work-in-progress 59.70 Less: Allowances for expected credit loss and doubtful (0.73) - Impairment loss recognized 0.66 Prepaid expenses 7.89
Finished Goods 92.75 receivables - Expected credit loss 0.61
(including ₹ 45.23 Crore as at 31-March-2022 in transit) Balance and deposits with government department or 20.36
Trade receivables which have significant increase in Credit - - Amount written off - others
Stores and Spares 14.18 Risk
- Balance at the end of the period 1.39 Security deposit 0.29
409.89 Trade receivables- credit impaired 0.66
Lease hold land prepayments 0.01
Less: Allowances for expected credit loss and doubtful (0.66)
* Valued at cost or net realisable value, whichever is lower 10 Cash and cash equivalents in ` Crore Assets held for sale * 0.56
Cost of inventory recognised as expense during the current period receivables
₹ 1677.83 Crore. 469.80 As at 34.88
Particulars
31-Mar-2022
* Net of bill discounted from banks ` 21.25 Crore. * Carrying value of Plant and Equipment held for sale
8 Investments
Balances with banks
in ₹ Crore - In current accounts 3.14 No advances are due by directors or other officers of the Group or
Expected credit loss allowance for trade receivable is based on
As at
historical credit loss experience and adjustment for forward - In deposit accounts (having original maturity of three - any of them either severally or jointly with any other persons or
Particulars
31-Mar-2022 months or less)
looking information. The computation of expected credit by firms or private limited companies respectively in which any
Investments - Current Cash on hand 0.42 director is a partner or a director or a member except M/s. NCVI
allowance for trade receivables is based on the provision matrix.
Investment carried at fair value through Profit or loss The provision matrix takes into account external and internal risk 3.56 Enterprises Limited amounting to Nil
(FVTPL)
factors and historical data of credit losses from various customers.
Investment in mutual funds (unquoted) The expected credit loss allowance is based on the ageing of the 11 Other Bank Balances in ` Crore 14 Equity share capital
88491.150 (88491.150 as at 31-Mar-2021) units of ₹10/- 0.22 receivables that are due and the rates used in provision matrix. As at As at 31-Mar-2022
each Particulars Particulars
31-Mar-2022 Number in ` Crore
of PNB Principal Balanced Advantage Fund- Regular plan
Balances with banks Authorised
growth
Fixed deposits with original maturity of more than twelve 83.76 8,00,00,000 80.00
Other investments (unquoted) Equity shares of ` 10/- each (par value)
months but remaining maturity of less than twelve months
Investment in Master Portfolio Services Limited 2.15 Preference shares `10/- each (par value) - -
Fixed deposits with original maturity of more than three 30.37
MPSL Irage Absolute Return Strategy Total
months but less than twelve months 8,00,00,000 80.00
Total 2.37
Balances with banks in earmarked accounts to the Issued, subscribed and fully paid-up
Aggregate amount of quoted investments and market - extent held as margin money against borrowings and Equity shares of ` 10/- each (par value) 5,87,05,502 58.71
value of quoted investments other commitments
Total 5,87,05,502 58.71
Aggregate amount of unquoted investments 2.37 Fixed deposits with original maturity of more than three 18.97
Aggregate amount of impairment in value of investment - months but less than twelve months
Fixed deposits with original maturity of more than twelve 2.62 a. Reconciliation of the number of equity shares and
months but remaining maturity of less than twelve months amount outstanding at the beginning and at the end of
Trade receivables ageing schedule as on 31.03.2022
Balances with banks in earmarked accounts to the 0.71 the reporting period
Outstanding from the due date of payment extent of unclaimed dividend Equity share capital
Particulars Not due Less than 6 months to 1-2 2-3 More than Total
136.43
6 months 1 year years years 3 years Particulars 31-Mar-2022
(i) Undisputed Trade receivables 351.87 99.20 0.56 0.10 0.08 451.81 Number in ` Crore
12 Other Financial Assets - Current in ` Crore
- considered good Issued, subscribed and paid-up equity
(ii) Undisputed Trade receivables - As at shares
Particulars
31-Mar-2022
- which have significant increase in credit risk Shares and share capital outstanding at the 5,87,05,502 58.71
(Unsecured considered good) beginning of the period
(iii) Undisputed Trade receivables -
- credit impaired Interest receivable 3.42 Shares and share capital issued during the - -
(iv) Disputed Trade receivables 18.72 18.72 Other recoverable 7.68 period
- considered good Export incentives/ other receivables from Government 11.11 Shares and share capital outstanding at the 5,87,05,502 58.71
(v) Disputed Trade receivables - Authorities end of the period
- which have significant increase in credit risk Loans and advances to employees 0.45
(vi) Disputed Trade receivables 0.04 0.55 0.07 0.66 Derivative instruments at fair value through OCI b. Rights, preferences and restrictions attached to equity
- credit impaired (FVTOCI) shares
Total 351.87 99.20 19.32 0.65 0.15 - 471.19 Foreign exchange forward contracts The company presently has one class of equity shares having
Less: Allowances for expected credit loss, (1.39) - Cash flow hedges 0.32 a par value of ₹10/- each. Each holder of equity shares is
doubtful receivables and credit impaired entitled to one vote per share. The dividend if proposed
22.98
receivables
by the Board of Directors is subject to the approval of the
Total Trade receivables 469.80
shareholders in the ensuing Annual General Meeting.

Notes Notes
In the event of liquidation of the company, the holders of h. Shareholding of Promoter and Promoter Group Particulars
As at 17 Provisions - Non current
equity shares will be entitled to receive any of the remaining 31-Mar-2022 in ` Crore
Shareholding of Promoter and Promoter
assets of the company, after distribution of all preferential Group (ii) Net movement in effective portion of cash flow
As at
amounts. The distribution will be in proportion to the Sr. as on 31.03.2022 hedge reserve {Refer note no.42(i)} Particulars
31-Mar-2022
Promoter name
No. % Change Opening balance (0.59)
number of equity shares held by the shareholders. No. of % of Provision for employee benefits:
during the
Shares total shares Add: Other comprehensive income/(expense) net of 0.39
period - Gratuity (Refer note no.37) 1.07
The company has paid 60% (₹ 6 per equity share of ₹ 10/- tax impact
Promoter Closing balance (0.20) - Compensated absences 1.94
each) interim/final dividend during the current year ended
1 Varinder Gupta 11,95,865 2.037% No change Total 1,333.57 3.01
31-Mar-2022 .
during the
The amount of per share dividend recognized as distribution period
Nature and purpose of reserve 18 Other non current liabilities
to equity shareholders is as follows: Promoter Group Capital reserve: The excess of net assets taken, over the cost of
in ` Crore
1 Varinder Gupta HUF 1,100 0.002% No change consideration paid, were treated as capital reserve in accordance As at
Particulars
during the 31-Mar-2022
Year ended with previous GAAP.
Particulars period Deferred capital grants related to Property, plant and 0.25
31-Mar-2022
2 Mayadevi Polycot Limited 1,00,06,323 17.045% equipment
Interim dividend 4.00 Securities premium: The amount received in excess of face value
3 NM Merchantiles Limited 50,75,571 8.646% of the equity shares is recognised in Securities Premium. It can 0.25
Final Dividend FY2021 2.00
4 NCG Enterprises Limited 32,84,393 5.595% be utilized in accordance with the provisions of the Act, to issue
5 Bhudeva Lifesciences 28,73,714 4.895% bonus shares, to provide for premium on redemption of shares or 19 Borrowings - Current
The Company has incurred a net cash outflow of ₹35.22 in ` Crore
Limited debentures, write-off equity related expenses like underwriting
Crore during the year ended 31-March-2022 on account of
6 NCVI Enterprises Limited 28,12,032 4.790% costs etc. As at
the interim/final dividend. Particulars
31-Mar-2022
7 True Value Traders 4,00,000 0.681%
Limited Retained earnings: Retained earnings if any represents the net Loan repayable on demand
Rights attached to preference shares
2,44,53,133 41.654% profits after all distributions and transfers to other reserves. - From Banks (secured) 42.75
The company has not issued preference shares during the Total Shares held by 2,56,48,998 43.691% 42.75
promoter and Promoter Other comprehensive income:
current and previous year.
Group at the end of the - Remeasurements of defined benefit obligation comprises Details of security for Loan repayable on demand
period actuarial gains and losses and return on plan assets (excluding
c. The details of equity shareholders holding more than Loans repayable on demand from banks are secured by way
5% of the aggregate equity shares interest income). of first pari-passu charge on all present and future by way of
15 Other Equity in ` Crore
hypothecation of finished goods, work-in-progress, raw materials,
Particulars
As at - Cash flow hedge reserve stores and spares, book debts, other current assets and pari-passu
Equity share capital 31-Mar-2022
31-Mar-2022
The cumulative effective portion of gains or losses arising from charge on fixed assets as collateral security and further secured
a. Capital reserve (Balance at the beginning and end 10.76
Particulars changes in fair value of hedging instruments designated as cash by personal guarantee of the Managing Director of the company
Number of % of the year)
shares held shareholding flow hedges are recognised in cash flow hedge reserve. Such and his family members and corporate guarantee by a promoter
b. Securities premium account
Mayadevi Polycot Limited 1,00,06,323 17.04% changes recognised are reclassified to the statement of profit and company.
Opening balance 225.72
loss when the hedged item affects the profit or loss. The Company
NM Merchantiles Limited 50,75,571 8.65% Add: Securities premium on allotment of equity shares - Terms:-
has designated certain foreign currency forward contracts as cash
Vasudeva Commercials Limited 46,63,859 7.94% Closing balance 225.72 Working capital borrowings from banks are repayable on demand.
flow hedges in respect of foreign exchange risks.
NCG Enterprises Limited 32,84,393 5.59% c. General reserve
Opening balance - 16 Lease liabilities 20 Trade Payable
d. There are no shares issued without payment being received in ` Crore in ` Crore
Add: Transferred from surplus in statement of profit -
in cash during the last five years. and loss As at
As at Particulars
Particulars 31-Mar-2022
e. There are no buy back of equity shares during the last Closing balance - 31-Mar-2022
five years. d. Retained earnings Lease liabilities (Refer note no.38) 2.73 Outstanding dues of creditors other than related parties 400.58
Opening balance 971.31 Deletions of lease liabilities (0.65) Outstanding dues to related parties (Refer note no.41) 8.71
f. There are no bonus shares issued during the last five years.
Add: Profit for the year 167.67 Interest expense on lease liabilities 0.18 409.29
g. There is no holding / ultimate holding company of Less: Interim/final Dividend (35.22) Payment of lease liabilities (1.06)
the company. Trade payables ageing schedule as on 31.03.2022
Closing balance 1,103.76 1.20
in ` Crore
e. Items of other comprehensive income: The break-up of current and non-current lease
liabilities is as follows: Outstanding from the due date of
(i) Remeasurements of defined benefit obligation payment
(Refer note no.37) Current Lease liabilities 1.02 Not
Particulars More Total
Opening balance Non Current Lease liabilities 0.18 due Less than 1 - 2 2 - 3
(5.48) than
1 year years years
Add: Other comprehensive income/(expense) net of (0.99) 3 years
tax impact (i) Others 371.37 28.86 0.32 0.03 400.58
Closing balance (6.47) (ii) Disputed dues -
- Others
Related party 1.79 6.92 8.71
Total 373.16 35.78 0.32 0.03 - 409.29

Notes Notes
21 Other financial liabilities - Current Gross movement in current tax liabilities/(assets) 26 Other income 28 Changes in inventories of finished goods, work-in-
in ` Crore in ` Crore in ` Crore progress and Stock in trade
in ` Crore
As at As at For th\e year
31-Mar-2022 31-Mar-2022 Particulars ended For the year
31-Mar-2022 Particulars ended
Unclaimed dividend 0.71 Net current tax liabilities/(assets) at the beginning of the 4.66 31-Mar-2022
Interest income (Gross)
Payable to employees year
Inventories at the beginning of the year
- From bank deposits 17.96
- to related parties (refer note no.41) 0.59 Tax adjustments related to earlier years (0.22)
Work-in-progress 35.73
- to other employees 6.40 Income tax payment of earlier years (4.44) TDS ` 1.80 Crore (Previous year ` 1.19 Crore)
Finished goods 63.38
Other liabilities Provision for current tax 57.23 - On financial assets carried at amortized cost 0.08
(A) 99.11
- to related parties (refer note no.41) - Advance tax paid (58.14) Other non operating income
Change in inventory during trial run
- to other than related parties 16.58 Current tax liabilities/(assets) (0.91) Liabilities no longer required written back 0.03
Work-in-progress 0.67
(a) 24.28 Rent received 0.02
Finished goods 0.37
Payable on purchase of capital goods (b) 5.74 25 Revenue from operations Return on investment 0.16
in ` Crore (B) 1.04
Total (a+b) 30.02 Net gain on foreign currency transaction and translation 10.44
For the year Inventories at the end of the year
Gain on fair value changes of financial assets measured 0.02
Particulars ended at FVTPL Work-in-progress 59.70
22 Other current liabilities 31-Mar-2022
Amortisation of capital subsidy 0.07 Finished goods 92.75
in ` Crore Sale of products 2,120.31
Miscellaneous income 3.26 (C) 152.45
As at Other operating revenue
Particulars
31-Mar-2022 32.04 (A+B-C) (52.30)
(i) Export incentives 3.84
Advances from customers 14.07
(ii) Miscellaneous sales 11.81
Advance against assets held for sale 0.23 27 Cost of material consumed 29 Employee benefits expense
2,135.96 in ` Crore in ` Crore
Statutory remittances* 3.59
Sale of traded goods 48.06 For the year For the year
Deferred capital grants related to Property, plant and 0.13 Particulars ended
2,184.02 Particulars ended
equipment 31-Mar-2022 31-Mar-2022

Other payable 4.36 Raw material consumed
Disaggregated revenue information Salaries and Wages 125.28
Security deposit 0.60 Opening Stocks 181.75 Contribution to provident and other 9.77
The table below presents disaggregated revenues from contracts with
22.98 customers by sale of products for the year ended 31-Mar-2022. The Group Add: Purchases 1,640.42 funds
* Statutory remittance includes contribution to provident fund, ESI, punjab believes that this disaggregation best depicts how the nature, amount, Total 1,822.17 Staff welfare expenses 6.25
labour welfare fund and tax deducted at source, etc. timing and uncertainty of our revenues and cash flows are affected by
Less: Closing stocks 243.26 141.30
industry, market and other economic factors.
Consumption (refer detail below) 1,578.91
23 Current provisions in ` Crore 30 Finance Cost
Detail of material consumed
in ` Crore For the year in ` Crore
Acetic Acid 556.08
As at Particulars ended For the year
Particulars
31-Mar-2022 31-Mar-2022 Iso Butyl Aceto Phenone (Ibap) 48.18 Particulars ended
Provision for employee benefits: Details of sale of products Specially Denatured Spirit 313.69 31-Mar-2022
- Chemicals 1,112.80 Toluene 41.44 Interest expense on:

- Gratuity (Refer note no.37) 6.15
- Pharmaceuticals 977.00 Acetic Anhydride 79.56 - Term loans and working capital 1.31
- Compensated absences 1.19
- Others 30.51 Propylene Gas 35.65 - other borrowings 0.94
7.34
2,120.31 Sodium Di Chromate 49.16 Other borrowing costs 5.86
24 Current tax liabilities/(assets) (net) Sodium Metal 36.47 Interest expense on Lease Liability 0.18
in ` Crore Others 418.68 8.29
As at 1,578.91
Particulars
31-Mar-2022
Provision for Current tax (net of advance tax) (0.91)
(0.91)

Notes Notes
31 Other expenses (c) Reconciliation of tax expense and the profit before tax 33 Earning per share # Export obligations relates to duty saved on import of raw
in ` Crore multiplied by statutory tax rate The earning Per Share (EPS) as disclosed in the statement of materials under the Advance Authorization Scheme. Under the
For the year in ` Crore profit and loss has been calculated as under: scheme, the Company is committed to export prescribed times
Particulars ended of the value of import of raw materials over a specified period of
For the year in ` Crore
31-Mar-2022
Particulars ended For the year time. In case such commitments are not met, the Group would
Power and Fuel 78.18 31-Mar-2022 Particulars ended be required to pay the duty saved along with interest to the
Consumption of stores and spares 26.15 Profit before tax 222.84 31-Mar-2022 regulatory authorities.
Repairs and maintenance Income tax expense calculated at 25.1680% 56.08 Total operations for the period
- Plant and Machinery 6.92 Income tax for earlier years recognised in statement of (0.22) Profit after tax attributable to equity shareholders (`) A 167.67 During the year, the Group has executed bonds for an aggregate
- Building 3.23 profit and loss Weighted average number of equity shares (number) B 5,87,05,502 amount of ₹ 48.35 Crore in favour of The President of India under
- Others 0.56 Income tax impact of expenses not considered for tax 0.02 sub section (I) of the section 142 of the Custom Act 1962 for
Weighted average number of equity shares in C 5,87,05,502
purpose computing diluted earning per share (number) fulfilment of the obligation under the said Act.
Rent 0.23
Income tax impact of Income not considered for tax (0.02) A/B 28.56
Insurance charges 4.25 Basic earnings per share (`)
purposes The Group is subject to legal proceedings and claims, which
Auditor's Remuneration 0.25 Diluted earnings per share (`) A/C 28.56 have arisen in the ordinary course of business. The Group’s
Income tax impact of expenses availed on payment basis (0.06)
Rates and Taxes 0.39 Face value per equity share (`) 10.00 management reasonably expects that these legal actions, when
Income tax impact of allowances of permanent nature 2.56
Loss on Property, plant and equipment sold (net) 0.24 ultimately concluded and determined, will not have a material
Income tax impact of unabsorbed depreciation and c/f loss (0.52)
Loss on Property, plant and equipment discarded 0.85 of earlier years 34 Research and Development expenses and adverse effect on the Group’s results of operations or financial
Allowance for expected credit loss and doubtful 1.27 condition.
Income tax savings on deductions under section 80JJAA (0.66) in ` Crore
receivables
Tax expense charged to statement of profit and loss at 57.18 For the year
Freight outward 57.34 Particulars ended 37 Employee benefits
effective rate of 25.4312%
Other Selling and distribution expenses 9.50 31-Mar-2022 A Defined benefit plan: Gratuity
Miscellaneous expenses 24.56 (d) Movement in deferred tax balances in ` Crore Research and Development: Revenue expenses The following table set out the funded status of the gratuity
213.92 Raw material consumption 0.65 plan and the amount recognised in the company’s financial
Recognised statement as at 31-March-2022.
As at As at Salaries & wages 6.88
in statement Recognised
Particulars 1-Apr- 31-Mar-
32 Current tax and deferred tax 2021
of Profit and in OCI
2022 Depreciation 1.31
loss in ` Crore
(a) Income tax recognised in statement of profit and loss Stores and spares 2.05
Deferred tax Gratuity
in ` Crore Cost of utilities 0.22
liabilities Particulars (Funded)
For the year 11.11 31-Mar-2022
Particulars ended Property, Plant and 55.73 0.35
56.08 Research and Development: Capital expenses Changes in the present value of the obligation
31-Mar-2022 Equipment i)
Current tax Intangible assets 0.03 (0.03) - Additions to Property, Plant and Equipment 4.71 Present value of obligation as at the beginning 17.21
In respect of current period 57.23 of the year
Fair valuation gain - 0.01 The revenue expenses related to research and development is clubbed
0.01 Interest cost 1.17
Tax adjustments related to earlier years (0.22) on investments under respective account heads in profit and loss
Total (A) 57.01 Gross deferred tax 55.76 0.33 - 56.09 Current service cost 1.96
Deferred tax liabilities (A) 35 Exceptional item Benefits paid (1.16)
In respect of current period 0.17 Deferred tax assets The exceptional items amounting to ₹ 13.93 crores represent Remeasurement - actuarial (gain) / loss 1.38
Total (B) 0.17 Gratuity (1.77) 0.28 (0.33) (1.82) one time cost towards Right of Recompense (RoR) payable Present value of obligation as at the end of the A 20.56
to the lenders against sacrifices made by them in FY 2014-15 year
Total Income tax expense (A+B) 57.18 Leave encashment (0.55) (0.06)
(0.61) on account of restructuring done under Joint Lenders Forum ii) Changes in the fair value of plan assets
liability (net)
(b) Income tax recognised in other Comprehensive income Lease Liability (net) - (0.06) (0.06)
(JLF) route. Fair value of plan assets as at the beginning of 10.15
in ` Crore the year
Expected credit loss (0.03) (0.32) (0.35)
For the year 36 Contingent liabilities and commitments (to the Actual return on plan assets 0.75
Particulars ended Cash flow hedge (0.19) - 0.12 (0.07) extent not provided for) Contributions 3.60
31-Mar-2022 Gross deferred tax (2.54) (0.16) (0.21) (2.91) in ` Crore
Charges deducted -
Deferred tax (assets)/liability assets (B) As at
Particulars Benefits paid (1.16)
On remeasurement loss of defined benefit obligation (0.33) 53.22 0.17 (0.21) 53.18 31-Mar-2022
Net Deferred tax
Fair value of plan assets as at the end of the B 13.34
Net movement in effective portion of cash flow hedge 0.12 (Asset)/Liabilities A Contingent liabilities
year
reserve (A+B) i Claims not acknowledged as debts 0.09
Unfunded Status (A-B) 7.22
Total (0.21) ii Bank Guarantee issued in favour of others 0.09
iii) Amount recognised in the Balance Sheet
0.18
Present value of the defined benefit obligation 20.56
B Commitments as at the end of the year
i Estimated amount of contracts remaining to be 11.60 Fair value of plan assets as at the end of the 13.34
executed on Capital account and not provided for year
(net of advances)
Net asset/(liability) recognised in the Balance (7.22)
ii Export obligations under Advance Authorisation/ 88.43 Sheet
Duty Free Import Authorisation #
100.03

Notes Notes
in ` Crore in ` Crore 38 Disclosures as required by Indian Accounting The movement in lease liabilities during the year are as
Gratuity Gratuity Standard (Ind AS) 116 Leases follows :
Particulars (Funded) Particulars (Funded)
31-Mar-2022 31-Mar-2022 Company as a Lessee in ` Crore
iv) Expense recognised in the statement of The Group’s significant leasing arrangements are in respect As at
Particulars
profit and loss b) Impact of change in salary increase of operating leases for premises (residential, etc.). These 31-Mar-2022
Current service cost 1.96 Present value of obligation at the end of the 20.56 leasing arrangements, which are non-cancellable and are Balance at the beginning 2.73
Net interest cost 0.48 period usually renewable by mutual consent on mutually agreeable Additions -
Expense recognised in the statement of profit and loss 2.44 1. Impact due to increase of 0.50% 0.95 terms. Finance cost accrued during the year 0.18
v) Re-measurement of the net defined benefit 2. Impact due to decrease of 0.50% (0.87) Deletions (0.65)
liability / (asset) The Group does not face a significant liquidity risk with
As per Actuarial certificate, sensitivities due to mortality and Payment of lease liabilities (1.06)
Actuarial (gain)/loss for the year on projected benefit 1.38
regard to its lease liabilities as the current assets are sufficient
withdrawals are insignificant and hence impact of change has not Balance at the end 1.20
obligation (PBO) been calculated. to meet the obligations related to lease liabilities as and
Actuarial (gain)/loss for the year on plan assets (0.06)
when they fall due.
xi) Maturity profile of defined benefit obligation: Payment of Lease liabilities during the current year ` 1.06 Crore.
Total Actuarial (gain)/loss at the end of the year 1.32 in ` Crore The details of the contractual maturities of lease liabilities on an
The changes in the carrying value of ROU assets for the year
vi) Bifurcation of actuarial (gain) / loss Gratuity undiscounted basis are as follows :
(Funded) ended 31-Mar-2022 are as follows :
Actuarial (Gain) / loss on arising from change in - 31-Mar-2022
in ` Crore As at
demographic assumption Particulars
31-Mar-2022
Year ending
Actuarial (Gain) / loss on arising from change in (0.85) As at
Particulars Less than one year 1.25
a) Mar-2022 to Mar-2023 6.15 31-Mar-2022
financial assumption
b) Mar-2023 to Mar-2024 0.71 Category of ROU Assets Buildings One to five years 0.20
Actuarial (Gain) / loss on arising from change in 2.23
experience assumption c) Mar-2024 to Mar-2025 0.54 Balance at the beginning 2.40 More than five years 0.18
1.38 d) Mar-2025 to Mar-2026 0.47 Reclassified on account of adoption of Ind AS 116 - Total 1.63
vii) The major categories of plan assets as a percentage of the fair e) Mar-2026 to Mar-2027 0.45 Additions -
Group as a Lessor
value of total plan assets f) Mar-2027 to Mar-2028 1.34 Deletions (0.58)
Gratuity
The rental income on assets given on operating lease to the
g) Mar-2028 onwards 10.90 Depreciation (0.85)
(Funded) Managing Director of the Group was ₹ 0.02 Crore for the year
31-Mar-2022 xii) Actuarial risks exposures: Balance at the end 0.97 ended 31-Mar-2022.
Valuations are based on certain assumptions, which are dynamic in
Investment with the insurer 100% nature and vary over time. As such company is exposed to various The aggregate depreciation expense on Right of use assets
The plan assets are maintained with Life Insurance Corporation of risks as follows:
India (LIC). The detail of investments maintained by LIC have not (ROU) is included under depreciation and amortization
a) Salary increases - Actual salary increases will increase the Plan’s expense in the Statement of Profit and Loss.
been furnished to the Company. The same have therefore not been liability. Increase in salary increase rate assumption in future
disclosed. valuations will also increase the liability.
viii) Principal actuarial assumptions at the Balance Sheet date b) nvestment risk - If plan is funded then assets liabilities mismatch
(expressed as weighted average): and actual investment return on assets lower than the discount
Discount rate (per annum) 7.26% rate assumed at the last valuation date can impact the liability
Rate of increase in compensation levels (per annum) 5.50% c)
Discount rate- Reduction in discount rate in subsequent
Average remaining working lives of employees (years) 27.09 valuations can increase the plan’s liability.
Method used Projected d)
Mortality and disability - Actual death and disability cases
unit credit proving lower or higher than assumed in the valuation can
impact the liabilities
The assumptions and methodology used in actuarial valuation are
consistent with the requirements of Ind AS 19 e)
Withdrawals - Actual withdrawals proving higher or lower
ix) The estimates of future salary increases, considered in actuarial than assumed withdrawals and change of withdrawals rates at
valuation, take into account inflation, seniority, promotion subsequent valuations can impact Plan’s liability.
and other relevant factors, such as supply and demand in the xiii) The company expects to contribute ` 2.67 Crore to the gratuity
employment market. trust during the year 2022-23.
x) Sensitivity analysis of the defined benefit obligation: xiv) Bifurcation of Projected Benefit Obligation (PBO) at the end of
a) Impact of change in discount rate the year in current and non-current
in ` Crore
Present value of obligation at the end of the 20.56
Gratuity
period
(Funded)
1. Impact due to increase of 0.50% (0.85) 31-Mar-2022
2. Impact due to decrease of 0.50% 0.94 Current liability (amount due within one year) 6.15
Non-current liability (amount due over one 14.41
year)
Total PBO at the end of year 20.56
B Contribution to Provident Fund

The Group has recognized an expense of ₹ 7.21 Crore in respect of
contribution to Provident Fund.

Notes Notes
39. Disclosures of Financial instruments 40 Segment information c. Segment accounting policies:

(a) The carrying value and fair value of financial instruments by categories at the end of each reporting period is pending at I Segment Accounting Policies: In addition to the significant accounting policies
the end as follows: applicable to the business, the accounting
a. Products and services from which reportable
policies in relation to segment accounting are as
As at 31-March-2022 in ` Crore segment derive their revenues.
under:
Amortized At fair value through Based on the nature and class of product and
At fair value through OCI i. Segment assets and liabilities:
cost profit or loss Total services, their customers and assessment
Total Fair Segment assets include all operating assets
Particulars Designated Equity instruments carrying
value of differential risk and returns and financial
upon initial Mandatory designated upon Mandatory value
reporting results reviewed by Chief Operating used by a segment and consists principally
recognition initial recognition
Decision Maker (CODM), the Group has identified of cash, debtors, inventories and fixed
Financial Assets: the primary business segments which comprised: assets, net of allowances and provisions,
Other financial non-current assets 205.34 205.34 205.34 which are reported as direct off set in the
Current Investments 2.37 2.37 2.37 The “Chemical” segment produces and sells Ethyl balance sheet. Segment liabilities include all
Trade receivables 469.80 469.80 469.80 Acetate, Iso Butyl Benzene, Acetyl Chloride, Mono operating liabilities and consist principally of
Chloro Acetic Acid, Para Amino Phenol (PAP), etc. creditors and accrued liabilities.
Cash and cash equivalents 3.56 3.56 3.56
Other Bank Balances 136.43 136.43 136.43 ii. Segment revenue and expenses:
The “Pharmaceutical” segment produces and
Foreign exchange forward contracts 0.32 0.32 0.32
sells various API’s viz. Ibuprofen, Metformin, Joint revenue and expenses of segment
Other financial current assets 22.66 22.66 22.66 Fenofibrate, Lamotrigine, Clopidogrel Bisulphate, are allocated amongst them on reasonable
Total 837.79 - 2.37 - 0.32 840.48 840.48 Pantoprazole, Ursodeoxycholic Acid (UDCA), basis. All other segment revenue and
Financial Liabilities: Gabapentin, Levetiracetam, Paracetamol, etc. expenses are directly attributable to the
Short term borrowings 42.75 42.75 42.75
segments.
The operating businesses are organized and
Trade Payables 409.29 409.29 409.29
managed separately according to the nature iii. Inter segment sales:
Lease liabilities Current 1.02 1.02 1.02
of the products produced, with each segment Inter segment sales are eliminated
Lease liabilities non current 0.18 0.18 0.18 representing a strategic business unit that offers in consolidation.
Other financial current liabilities 30.02 30.02 30.02 different products and serves different markets.
Total 483.26 - - - 483.26 483.26 iv. Segment results:
b. Geographical segments - Secondary segments
Segment results represents the profit
(b) Basis of Fair value of Financial assets and liabilities before tax earned by each segment without
The geographical segments considered for
(i) Fair Value hierarchy allocation of other income and unallocable
disclosure are based on markets, as under:
expenses as well as finance costs.
Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities i. India
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) ii. Rest of the world
Level 3 – Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
(ii) The following table presents fair value hierarchy of assets and liabilities measured at fair value:
As at 31-March-2022 in ` Crore
Fair Value measurement using
Particulars Fair Value Fair value technique
Level 1 Level 2 Level 3
Current investments in Mutual funds 0.22 0.22 Published NAV value by mutual fund.
at fair value through profit & loss
Other current investments at fair 2.15 2.15 Value as provided by the portfolio manager.
value through profit & loss
Foreign exchange forward contracts 0.32 0.32 Future cash flows are estimated based on forward exchange
at fair value through OCI rates from observable forward exchange rates at the
end of the reporting period and contract forward rates,
discounted at a rate that reflects the credit risk of various
counterparties.
Total 2.69 - 2.69 -

Notes Notes
Detail of primary business segment 41 Related party disclosures

Products and services In accordance with the requirements of IND AS 24, on Related party disclosures, name of the related party, related party
in ` Crore relationship, transactions and outstanding balances including commitments where control exits and with whom transactions
Pharma- have taken place during reported periods, are:
Chemical Unallocated Eliminations Total
ceutical
Current Year Current Year Current Year Current Year Current Year A. Related party and their relationship:-
Segment Revenue Key Management Personnel:
External Sales * 1,174.87 1,002.66 6.49 2,184.02 i Whole time directors Mr. Varinder Gupta Managing Director
Inter Segment transfer 143.38 - - (143.38) - Mr. Vikas Gupta Executive Director
Interest income 17.96 17.96 Dr. Sanjay Chaturvedi Executive Director & CEO (w.e.f. 30-May-2022)
Other Income 4.25 5.66 4.17 14.08 Mr. Kushal Kumar Rana Director Works (w.e.f. 04.06.2021)
Total Revenue 1,322.50 1,008.32 28.62 (143.38) 2,216.06 ii Non executive directors Mr. Rajender Mohan Malla Chairman and Independent Director
Segment Results 59.26 162.92 222.18 Mr. Harpal Singh Independent Director
Unallocated Income (net of unallocated Expenses) 24.89 24.89 Dr. Sandhya Mehta Independent Director
Profit before tax and interest 247.07 Mr. Sharad Tyagi Independent Director (w.e.f. 30-May-2022)
Finance cost 8.29 8.29 iii Chief Executive Officer Mr. Sanjay Chaturvedi (w.e.f. 16-March-2021 upto 29-May-2022)
Profit before Tax & Extraordinary items 238.78 iv Chief Financial Officer Mr. Pardeep Kumar Khanna
Exceptional items 13.93 v Vice President and Company Secretary Mr. Abhay Raj Singh
Tax expense 57.18 57.18
Profit after Tax 167.67 Related parties
Other Information Nature of relationship Name of related party
Segment Assets 537.77 945.34 1,483.11 i. Enterprises over which Key Management NM Merchantiles Limited
Unallocated assets 479.19 479.19 Personnel (KMP) and relative of such personnel is Mayadevi Polycot Limited
able to exercise significant influence or control:
Total Assets 537.77 945.34 479.19 1,962.30 NCG Enterprises Limited
Segment Liabilities 272.74 179.72 452.46 True Value Traders Limited
Unallocated Liabilities 74.81 74.81 NCVI Enterprises Limited
Long term borrowings (including current maturities and interest accrued but - - Bhudeva Lifesciences Limited
not due) Varinder Gupta (HUF)
Short term borrowings 42.75 42.75 ii. Relative of Key Management Personnel: Mrs. Dimple Gupta General Manager (upto 31.12.2021)
Total Liabilities 272.74 179.72 117.56 570.02 Mr. Abhiraj Gupta General Manager
Capital Expenditure 6.53 123.45 22.67 152.65 iii. Post employment benefit plan IOL Chemicals and Pharmaceuticals Limited Employees Group Gratuity Trust
Depreciation and Amortisation 13.38 25.65 4.23 43.26

Detail of secondary business segment
Geographical information
in ` Crore
Domestic sale Export sale
Particulars Year ended Total
India Rest of the world
Net revenue from sale of products 31-March-2022 1,638.13 545.89 2,184.02
Information about major customers

Refer note no. 42 (iii) (Credit Risk)
Notes:
(i) Segment performance is reviewed by the CODM on the basis of profit or loss from continuing operations before finance income/
cost and tax expense. Segment results reviewed by the CODM also exclude income or expenses which are non-recurring in nature
and are classified as an exceptional item. Information about segment assets and liabilities provided to the CODM, excludes the
related assets and liabilities arising on account of items excluded in measurement of segment results. Such amount therefore, form
part of the unallocated assets and liabilities.
(ii) There is no customer contributing more than 10% of the total revenue of the Group.
(iii) The Group does not have manufacturing facilities outside India therefore all non current assets are located in India.

Notes Notes
B Details of transactions entered into with related parties during the year as required by Ind AS 24 on “Related Party 42 Financial Risk Management The Group’s exposure to foreign currency risk was
Disclosures” of Companies (Indian Accounting Standards) Rules 2015. T he financial assets of the Group include investments, loans, based on the following amounts as at the reporting
trade and other receivables, and cash and bank balances dates:
Enterprises
over which that derive directly from its operations. The financial
Key
KMP is able
Management Non executive Relatives of
Post
Total
liabilities of the Group, other than derivatives, include loans Financial Assets
Sr. Particulars to exercise Employment and borrowings, trade payables, lease liabilities and other
Personnel directors KMP ` Crore
No. significant Benefit Plans As at 31-March-2022
influence or
(KMP) payables, and the main purpose of these financial liabilities
Particulars Foreign
control is to finance the day to day operations of the Group. currency
in ` Crore
Year ended Year ended Year ended Year ended Year ended Year ended The Group is mainly exposed to the following risks that arise Trade receivable
31-Mar-2022 31-Mar-2022 31-Mar-2022 31-Mar-2022 31-Mar-2022 31-Mar-2022 from financial instruments:
-In USD 97,22,693 73.36
1 Sale of goods - - - - - -
(i) Market risk -In EURO 2,86,123 2.40
2 Sale of Capital goods - - - - - -
(ii) Liquidity risk Trade Payables
3 Purchase of goods:
(iii) Credit risk -In USD 1,52,41,143 115.97
NCVI Enterprises Limited 54.15 - - - - 54.15
4 * Managerial remuneration - 14.44 - 1.32 - 15.76
The Group’s senior management oversees the management In EURO - -
(including incentives) of these risks and that advises on financial risks and the Net exposure
5 Sitting fees to non-executive directors of the company - - 0.10 - - 0.10
appropriate financial risk governance framework for -In USD (55,18,450) (42.61)
the Group. -In EURO 2,86,123 2.40
6 Rent received - 0.02 - - - 0.02

7 Rent paid 0.12 0.52 - 0.52 - 1.16
This note explains the risks which the Group is exposed Of the above foreign currency exposures, the following
8 Contribution to IOL Chemicals and Pharmaceuticals Limited Employees - - - - 3.60 3.60 to and policies and framework adopted by the Group to
Group Gratuity Trust
exposures are not hedged by a derivative.
manage these risks:
As at 31-March-2022
C Details of balances outstanding as at the end of the year (i) Market Risk Particulars Foreign
in ` Crore
currency
Enterprises Market risk is the risk that the fair value of future cash
over which Trade receivable
Key flows of a financial instrument will fluctuate because of
KMP is able Non Post -In USD 37,57,693 27.60
to exercise
Management
executive
Relatives of
Employment
Total changes in market prices. Market prices comprise two
Sr. Personnel KMP ` Crore
significant directors Benefit Plans types of risk: foreign currency risk and interest rate risk. -In EURO 2,86,123 2.40
No. Particulars (KMP)
influence or Trade Payables -
control
(a) Foreign currency risk -In USD 1,52,41,143 115.97
Year ended Year ended Year ended Year ended Year ended Year ended
31-Mar-2022 31-Mar-2022 31-Mar-2022 31-Mar-2022 31-Mar-2022 31-Mar-2022 The Group imports certain Property, Plant and In EURO - -
Amount receivable on the last day of the year Equipment and material from outside India and export Net exposure
finished goods. The exchange rate between the Indian -In USD (1,14,83,450) (88.37)
1 Security deposit receivable - 0.45 - 0.45 - 0.90
rupee and foreign currencies has fluctuated in recent -In EURO 2,86,123 2.40
2 Trade Receivable against sale of goods: - - - - - -
years and may fluctuate substantially in the future.
3 Balance Receivable - - - - - - Consequently the Group is exposed to foreign currency
4 Advances against purchases of goods: - - - - - -
Foreign currency sensitivity analysis
risk and the results of the Group may be affected as
Amount payable on the last day of the year the rupee appreciates/ depreciates against foreign Any changes in the exchange rate of USD and EURO
1 Trade payables against purcahse of goods: currencies. Foreign exchange risk arises from the future against INR is not expected to have significant impact
probable transactions and recognized assets and on the Group’s profit due to the less exposure of
NCVI Enterprises Limited 8.71 - - - - 8.71
liabilities denominated in a currency other than group’s these currencies. Accordingly, a 2% appreciation/
2 * Managerial remuneration - 0.57 - 0.02 - 0.59 depreciation of the INR as indicated below, against the
functional currency.
3 Sitting fees to non-executive directors of the company - - - - - - USD and EURO would have reduced/increased profit
4 Rent Payable - - - - - - The Group measures the risk through a forecast by the amounts shown below. This analysis is based on
5 Other payable - - - - - - of highly probable foreign currency cash flows the foreign currency exchange rate variances that the
and manages its foreign currency risk by hedging Group considered to be reasonably possible at the end
(i) The transactions with related parties are made in the ordinary course of business and on terms equivalent to those that prevail in of the reporting period. The analysis assumes that all
appropriately. The Group manages its foreign
arm’s length transactions with other vendors. Outstanding balances at the year-end is unsecured and settlement occurs in cash. other variable remains constant:
currency risk through the process of adjusting inward
remittances in foreign currency for its payment of in ` Crore
* (ii) Long-term employee benefits for Key Managerial Personnel:
outward remittances (i.e. considering it as natural As at 31-March-2022
The managerial personnel are covered by Group’s gratuity policy and are eligible for compensated absences along with other employees
hedge). The Group also holds derivative financial Particulars Strength-
of the Company. The proportionate amount of gratuity and compensated absences cost pertaining to managerial remuneration have Weakening
instruments such as foreign exchange forward ening
not been included in aforementioned disclosures as these are not determined on individual basis.
contracts to mitigate the risk of changes in exchange 2% Strengthening / weakening (1.77) 1.77
rates on foreign currency exposures. of USD against INR
2% Strengthening / weakening 0.05 (0.05)
of EURO against INR

Notes Notes
Foreign currency forward contracts held by the independent of changes in market interest rates. The in ` Crore in ` Crore
company as on reporting date: Group’s exposure to the risk of changes in market Financial Year Financial Year
2021-22 2021-22
interest rates relates primarily to the Group’s debt
obligations with floating interest rates, which are Borrowings including current maturities - (a) Revenue from top five customers
As at
31-March-2022 included in interest bearing loans and borrowings in Less than 1 year - -% of total sales of top 1 customer 3.83%
In USD 59,65,000 these financial statements if any. All the group’s fixed 1-2 year - -% of total sales of top 5 customers 15.05%
rate borrowings are carried at amortised cost. They are 2-5 year -
In INR 45.76
therefore not subject to interest rate risk, since neither 5-10 year - Write off policy
the carrying amount nor the future cash flows will Later - The financials assets are written off in case there is no
Derivatives designated as hedging instruments
fluctuate because of a change in market interest rates. Short term borrowings 42.75 reasonable expectation of recovering from the financial
The Group enters into hedging instruments in Less than 1 year 42.75 asset.
accordance with policies as approved by the Board of At the reporting date the interest rate profile of the 1-2 year -
Directors with written principles which is consistent Group’s interest bearing financial instrument is at its 2-5 year - 43 Capital Management
with the risk management strategy of the Group. The fair value: 5-10 year - The capital includes issued equity capital, share premium and
Group has decided to apply hedge accounting for in ` Crore Later - all other equity reserves attributable to the equity holders
derivative contracts that meets the qualifying criteria of
Carrying amount Trade Payables 409.29 of the Group. The primary objective of the group’s capital
hedging relationship entered.
Variable rate instruments Financial Year Less than 1 year 409.29 management is to maintain optimum capital structure to
2021-2022
During the current year ended 31-March-2022, the 1-2 year - reduce cost of capital and to maximize the shareholder value.
Long term borrowings - 2-5 year -
Group has designated certain foreign exchange
forward contracts as cash flow hedges to mitigate the Current maturities of long term debt - 5-10 year - The Groupy manages its capital structure and makes
risk of foreign exchange exposure. Short term borrowings 42.75 Later - adjustments in light of changes in economic conditions
Other Financial liabilities 30.02 and the requirements of the financial covenants which
Impact of hedging on equity Cash flow sensitivity analysis for variable rate Less than 1 year 30.02 otherwise would permit the banks to immediately call loans
instruments 1-2 year - and borrowings. In order to maintain or adjust the capital
Set out below is the reconciliation of each component of
2-5 year -
structure, the company may adjust the dividend payment
equity and the analysis of other comprehensive income: The following table demonstrates the sensitivity to a
to shareholders, return capital to shareholders or issue
in ` Crore reasonably possible change in interest rates on that 5-10 year -
new shares:
Financial Year portion of loans and borrowings affected. A change Later -
Particulars
2021-22 of 100 basis points in interest rates for variable
The Group monitors capital using a gearing ratio, which is
Opening balance of cash flow hedge reserve (0.59) rate instruments at the reporting date would have (iii) Credit Risk
net debt divided by total capital plus net debt. The Group’s
Effective portion of changes in fair value (0.37) increased/(decreased) profit or loss for the below years Credit risk refers to the risk of default on its contractual gearing ratio was as follows:
arising from Foreign exchange forward by the amounts shown below. With all other variables terms or obligations by the counterparty resulting in a
contracts held constant, the Group’s profit before tax is affected financial loss. The maximum exposure to the credit risk in ` Crore
Amount reclassified to profit or loss 0.88 through the impact on floating rate borrowings, at the reporting date is primarily from trade receivables Financial Year
Tax effect (0.12) as follows: which are typically unsecured. Credit risk on cash and Particulars
2021-22
Closing balance of cash flow hedge reserve (0.20) in ` Crore bank balances is limited as the Group generally invests Borrowings including current maturities and 42.75
Particulars
Financial Year in deposits with banks and financial institutions with interest accrued but not due
2021-2022 high credit ratings assigned by credit rating agencies.
The following table includes the maturity profile of the Less: Cash & cash equivalent and other bank 343.00
foreign exchange forward contracts: Increase/ (decrease) in 100 basis point 42.75 balances
The Group assesses the creditworthiness of the Net debt (A) (300.25)
As at 31-March-2022 (ii) Liquidity Risk customers internally to whom goods are sold on credit
Particulars Total equity (B) 1,392.28
USD in ` Crore The financial liabilities of the Group include loans terms in the normal course of business. The credit Gearing ratio (A/B) N.A.
Not later than one month 27,65,000 21.21 and borrowings, trade and other payables. The limit of each customer is defined in accordance with
Later than one month and not 32,00,000 24.55 Group’s principal sources of liquidity are cash and this assessment.
Further, there have been no breaches in the financial
later than three months cash equivalents and the cash flow that is generated covenants of any interest-bearing loans and borrowing in
Later than three months and not - - from operations. The impairment analysis is performed on client to
the current period.
later than one year client basis for the debtors that are past due at the end
59,65,000 45.76 The Group monitors its risk of shortage of funds to meet of each reporting date. The Group has not considered
There were no changes in the objectives, policies or
the financial liabilities using a liquidity planning tool. an allowance for doubtful debts in case of Trade
processes for managing capital during the year ended 31-
(b) Interest Rate The Group plans to maintain sufficient cash to meet the receivables that are past due but there has not been a
Mar-2022.
obligations as and when falls due. significant change in the credit quality and the amounts
Interest rate risk is the risk that the fair value or future
are still considered recoverable.
cash flows of a financial instrument will fluctuate 44 In accordance with the Ind AS-36 on Impairment of Assets,
because of changes in market interest rates. The Group’s The below is the detail of contractual maturities of the Group has assessed as on the balance sheet date, whether
the financial liabilities of the group at the end of each The following is the detail of revenues generated from
exposure to the risk of changes in market interest rates there are any indications with regard to the impairment
reporting period: top five customers of the company:
relates primarily to the Group’s debt obligations with of any of the assets. Based on such assessment it has been
floating interest rates. ascertained that no potential loss is present and therefore,
formal estimate of recoverable amount has not been made.
As the Group has no significant interest-bearing assets, Accordingly no impairment loss has been provided in the
the income and operating cash flows are substantially books of account.

Notes Notes
45 Reconciliation of Cash flow from financing iii The Group has not revalued any of its Intangible Assets 47 Additional Information, as required under Schedule III to the Companies Act, 2013, of enterprises
Activities consolidated as Subsidiary
iv The Group has not given any loan or advances to its
In pursuant to amendment in the companies (Indian Accounting Promoters, Directors, KMP and related Parties as defined Share in other Share in Total
Share in Net Assets Share in Profit/(Loss)
Standards) Rules, 2017 via MCA notification G.S.R 258(E) dated 17- under Companies Act, 2013. Comprehensive Comprehensive income
Mar-2017 Para 44A to Para 44E has been inserted after Para 44 in As % of As % of As % of As % of
Indian accounting Standard-7 “Statement of Cash Flows” for the v The Group does not hold any Benami property defined Name of Entity Consolidated in ` Crore Consolidated in ` Crore Consolidated in ` Crore Consolidated in ` Crore
period beginning on 1-April-2017. under the Benami Transactions (Prohibition) Act, 1988 (as Net Assets Net Assets Net Assets Net Assets
in ` Crore amended in 2016) and rules made thereunder. Further, Parent

no proceedings have been initiated during the year or are -IOL Chemicals and Pharmaceuticals 98.86% 1,390.27 100.00% 167.67 100.00% (0.60) 100.00% 167.07
Non-current
borrowing pending against the Group as at 31 March, 2022 for holding Ltd
Current
Particulars
borrowing
including any benami property. Indian Subsidiaries
current
maturities vi The quarterly returns for secured borrowings filed with -IOL - Foundation 0.14% 2.01 0.00% (0.00) - - 0.00% (0.00)
Opening balance of Financial liabilities - - Banks are fully in alignment with its Financial Statements. Total 100.00% 1,392.28 100.00% 167.67 100.00% (0.60) 100.00% 167.07
as on 01-April-2021 coming under
vii The Group has never been declared as wilful defaulter by any
the financing activities of Cash Flow 48 The Companies (Indian Accounting Standards) second amendment rules 2018 has amended IND-AS 20 Accounting for Government
Statement bank or financial institution or other lenders.
Grants and Disclosure of Government Grant Assistance”, which gives the option of presentation of amount of Government Grants
Changes during the year viii The Group does not have any relationship with any struck related to asset, including non-monetary grants at fair value in the balance sheet either by setting up the amount of grant as deferred
a) Changes from financing cash flow 42.75 - off company. income or deducting the amount of grant in arriving at the carrying amount of the assets. The Group made the accounting policy choice
b) Changes arising from obtaining or losing - - of presentation of amount of Government Grant related to asset in the balance sheet by setting up the amount of grant as deferred
ix There is no scheme of Arrangement approved during
control of subsidiaries or other business income. There is no impact on the profit before tax/after tax for the year ended 31-Mar-2022.
the year.
c) The effect of changes in foreign - -
exchanges rates- (Gain)/Loss x The Group has neither received any share premium amount 49 The Code on Social Security, 2020 (‘SS Code’) relating to employee benefits during employment and post-employment benefits
d) Changes in fair value - - nor the company has availed any term loan during the received Presidential assent in September 2020. The SS Code has been published in the Gazette of India. However, the date on which the
e) Other changes - - year. The working capital borrowing has been utilised by SS Code will come into effect has not been notified. The Group will assess the impact of the SS Code when it comes into effect and will
Closing balance of Financial liabilities
the Group in its own business, the Group has not loaned record any related impact in the period when the SS Code becomes effective.
42.75 -
as on 31-March-2022 coming under or advanced or invested funds to any other person(s) or
the financing activities of Cash Flow entity(ies), including foreign entities with any understanding. 50 Figures in bracket indicate deductions.
Statement
xi The company has not traded or invested in Crypto currency
51 Previous year figures have not been presented as this is First year of consolidation.
or Virtual currency during the financial year.
46 Additional Regulatory Information
i The Group is not holding any investment property. xii There is no income that has been surrendered or disclosed
as income during the year in Tax Assessments under Income As per our report of even date attached For and on behalf of the Board of Directors
ii The Group has not revalued any of its Property, Plant & Tax Act,1961. For Ashwani & Associates
Equipment and Right of use assets. Chartered Accountants
Sd/- Sd/- Sd/-

M. No. 506955 DIN-00044068 DIN-07198109
Sd/- Sd/- Sd/-

Date : 30th May 2022 DIN-08927689

Notice
OF ANNUAL GENERAL MEETING
NOTICE is hereby given that 35th Annual General Meeting of Committee in accordance with the provisions of Section RESOLVED FUTHER THAT Dr Sanjay Chaturvedi shall also
year ending 31st March 2023, be and is hereby ratified by
members of IOL Chemicals and Pharmaceuticals Limited will 161(1) of the Act and the Articles of Association of the be eligible for contribution to the provident fund, payment the Company.
be held on Friday, 26th August 2022 at 11:00 AM (“IST”), through Company and who holds office up to the date of this Annual of gratuity, encashment of earned leaves in accordance with
Video Conferencing / Other Audio-Visual Means (“VC/OAVM”) General Meeting and in respect of whom the Company has the applicable laws and rules applicable to the Company RESOLVED FURTHER THAT the Board of Directors be and
Facility to transact the following businesses: received a notice in writing under Section 160 of the Act and any other perquisites or benefits under any scheme, is hereby authorised to do all acts and take all such steps as
from a member proposing his candidature for the office of privileges, amended salary structure as are granted to the may be necessary, proper or expedient to give effect to the
Ordinary Business: Director, be and is hereby appointed as an Independent senior executives of the Company, in accordance with the aforesaid resolution”.
1. To consider and adopt (a) the audited standalone financial Director of the Company for a period of five years with effect Company’s practice and rules and regulations in force from
statement of the Company for the financial year ended 31st from 30th May 2022, not subject to retirement by rotation. time to time. By Order of the Board
March 2022 and the reports of the Board of Directors and For IOL Chemicals and Pharmaceuticals Limited
Auditors thereon; and (b) the audited consolidated financial R ESOLVED FURTHER THAT the Board of Directors or
ESOLVED FURTHER THAT the Board of Directors or
R
statement of the Company for the financial year ended 31st Nomination & Remuneration Committee or any other Nomination & Remuneration Committee or any other Sd/-
March 2022 and the report of Auditors thereon and, in this Committee of the Board be and are hereby authorised to do Committee of the Board, shall be authorized to alter and/ Place: Ludhiana Abhay Raj Singh
regard, to consider and if thought fit, to pass, with or without all acts and take all such steps as may be necessary, proper or or vary the terms and conditions and increase his aforesaid Date: 30th May 2022 Vice President & Company Secretary
modification(s), the following resolutions as Ordinary expedient to give effect to this resolution.” remuneration to the extent it may deem appropriate on
Resolutions: annual basis w.e.f. 1st April 2023 and thereafter at the end
4.
To appoint Dr Sanjay Chaturvedi as Executive of every 12 months by a maximum of 25% per annum of the
a. “ RESOLVED THAT the audited standalone financial
Director & CEO of the Company. gross remuneration payable for the financial year preceding
statement of the Company for the financial year
To consider and if thought fit, pass the following resolution to the financial year in respect of which such increment IMPORTANT NOTES:
ended 31st March 2022 and the reports of the Board
as a Special Resolution: pertains notwithstanding that such increased remuneration 1. The Explanatory Statement pursuant to Section 102 of the
of Directors and Auditors thereon, as circulated to the
may be in excess of the limits provided in Section 197 and Companies Act, 2013, which sets out details relating to Special
Members, be and are hereby considered and adopted.”
“RESOLVED THAT pursuant to the provisions of Section 161
Schedule V of the Companies Act, 2013. Businesses to be transacted at the Annual General Meeting
“RESOLVED THAT the audited consolidated financial
b. and all other applicable provisions of the Companies Act, (AGM) is annexed hereto. Additional information, pursuant
2013 and the Rules made there under and the Article 102 of R ESOLVED FURTHER THAT in the event of loss or
to Regulation 36 of the Listing Regulations, in respect of the
statement of the Company for the financial year ended
Articles of Association of the Company, Dr Sanjay Chaturvedi inadequacy of profits in any financial year during the tenure directors seeking appointment / reappointment at the AGM,
31st March 2022 and the report of Auditors thereon,
(DIN 08927689), who was appointed as an Additional of Dr Sanjay Chaturvedi as Executive Directors & CEO of the forms part of this Notice.
as circulated to the Members, be and are hereby
Director by the Board of Directors on the recommendations Company, the Company, in respect of such financial year(s)
considered and adopted.”
of Nomination & Remuneration Committee w.e.f. 30 th May in which such inadequacy or loss arises or for a period of 3 2. In view of the continuing Covid-19 pandemic, the Ministry
2022 and who holds the office up to the date of this Annual years, whichever is lower, will continue to pay to Dr Sanjay of Corporate Affairs (“MCA”) has vide its General Circular
2. To appoint a director in place of Mr. Vikas Gupta, who
General Meeting and in respect of whom the Company has Chaturvedi, the aforesaid remuneration including the annual No. 20/2020 dated 5th May 2020 read with General Circular
retires by rotation and being eligible, offers himself for re-
received a notice in writing under Section 160 of the Act increments for such financial years, as approved by the Board, Nos. 14/2020 dated 8th April 2020, 17/2020 dated 13th April
appointment; and in this regard, to consider and if thought
from a member proposing his candidature for the office without seeking any further approval of the Shareholders in 2020, 02/2021 dated 13th January 2021 and General Circular
fit, pass the following resolution as an Ordinary Resolution:
of Director, be and is hereby appointed as a director of the the general meeting. No. 2/22 dated 5th May 2022 (collectively referred to as “MCA
Company liable to retire by rotation. Circulars”) and SEBI vide its Circular No. SEBI/HO/ CFD/CMD1/
“RESOLVED THAT pursuant to the provisions of Section 152
R ESOLVED FURTHER THAT the Board of Directors or
CIR/P/2020/79 dated 12th May 2020 & Circular No. SEBI/HO/
and other applicable provisions of the Companies Act, 2013, R ESOLVED FURTHER THAT in accordance with the
Nomination & Remuneration Committee or any other CFD/CMD2/CIR/P/2021/11 dated 15th January 2021 and
Mr Vikas Gupta (DIN: 07198109), who retires by rotation at provisions of Sections 196, 197 and any other applicable Committee of the Board, be and are hereby authorized Circular No. SEBI/HO/CFD/CMD2/CIR/P/2022/62 dated 13th
this meeting and being eligible has offered himself for re- provisions of the Companies Act, 2013 and rules made to do all such acts, deeds and things and execute all such May 2022 (collectively referred to as ‘SEBI Circulars’) have
appointment, be and is hereby re-appointed as a Director of there under (including any statutory modification(s) or re- documents, instruments and writings as may be required permitted the holding of the AGM (“AGM”) through VC /
the Company, liable to retire by rotation”. enactment thereof for the time being in force), read with and to delegate all or any of its powers herein conferred to OAVM, without the physical presence of the Members at a
Schedule V to the Companies Act, 2013. Regulations 17 and any Committee of Directors or Director(s) to give effect to the common venue. In compliance with the provisions of the
Special Business:
any other applicable regulation of SEBI (Listing Obligations aforesaid resolutions”. Companies Act, 2013 (“Act”), SEBI (Listing Obligations and
3. To appoint Mr Sharad Tyagi as Independent
and Disclosure Requirements) Regulations 2015 (the Disclosure Requirements) Regulations, 2015 (“SEBI Listing
Director of the Company. 5. To ratify the remuneration of the Cost Auditor for
“Listing Regulations”) and subject to the approval of any Regulations”), MCA Circulars and SEBI Circulars, the AGM
To consider and if thought fit, pass the following resolution authority, if required, Dr Sanjay Chaturvedi (DIN 08927689) the financial year ending 31st March 2023 of the Company is being held through VC / OAVM. Hence,
as a Special Resolution: be and is hereby appointed as Whole time Director having To consider and if thought fit, to pass the following resolution Members can attend and participate in the ensuing AGM
a designation of Director & CEO of the Company, for a as an Ordinary Resolution: through VC/OAVM. Central Securities Depositories Limited
“ RESOLVED THAT pursuant to the provisions of Section
period of five years, liable to retire by rotation, with effect (‘CDSL’) will be providing facility for voting through remote
149, 152 and any other applicable provisions of the from 30th May 2022 on the terms and conditions as set out “RESOLVED THAT pursuant to the provisions of Section 148
e-voting, participation in the AGM through VC / OAVM
Companies Act, 2013 (“the Act”) read with Schedule IV and in the explanatory statement including remuneration as and other applicable provisions, if any, of the Companies Act, facility and e-voting during the AGM. The Registered Office
the Companies (Appointment and Qualification of Directors) given below: 2013 read with the Companies (Audit and Auditors) Rules, of the Company situated at Village & Post Office Handiaya,
Rules, 2014 (including any statutory modification(s) or 2014 and such other permissions as may be necessary, the Fatehgarh Channa Road, Barnana, 148107, Punjab (India) shall
re-enactment(s) thereof, for the time being in force) and
Basic Salary :
` 10,00,800/- (Rupees ten remuneration of ` 1,65,000/- plus applicable taxes and out- be deemed to be the venue of the Meeting.
Regulation 16, 17 and any other applicable regulations of the lakh eight hundred only) of-pocket expenses in connection with the audit, payable
Securities Exchange Board of India (Listing Obligations and per month. to M/s Ramanath Iyer & Co., Cost Accountants, New Delhi, 3. Since this AGM is being held pursuant to the MCA Circulars
Disclosure Requirements) Regulations, 2015, Mr Sharad Tyagi who has been appointed by the Board of Directors of the and SEBI Circulars through VC / OAVM, physical attendance
Allowances : M
aximum of 150% of the
(DIN 00371842), who was appointed as an additional director Company as Cost Auditors to conduct the audit of the of Members has been dispensed with. Accordingly, the
basic salary
in the capacity of Independent Director of the Company cost records maintained by the Company for the financial facility for appointment of proxies by the Members will
with effect from 30 th May 2022 by the Board of Directors Variables :
Maximum of 50% of
on the recommendations of Nomination & Remuneration gross salary

Notice of Annual General Meeting (Contd.)
not be available for the AGM. Institutional/ Corporate a depository. Members of the Company who hold securities Last Date for Due Date of company through its Registrar and Share Transfer Agents
shareholders (i.e. other than individuals, HUF, NRI etc.) are in physical form and intend to transfer their securities after 1st Financial Date of Declaration Dividend Claiming Unpaid transfer of (RTA). Members are requested to make their requests to RTA
Year of Dividend % Dividend from unpaid dividend
entitled to appoint authorised representatives in terms of April 2019, can do so only in dematerialized form. Therefore, Company / RTA to IEPF Account at the following address: Alankit Assignments Limited
Section 113 of the Act to attend the AGM through VC/OAVM Members holding shares in physical form are requested to 2019-20 11th March 2020 30% 16th April 2020 17th April 2027 “Alankit House”, 4E/2, Jhandewalan Extension, New
and participate thereat and cast their votes through remote consider converting their holding to dematerialized form 2020-21 6th November 2020 40% 13th December 14th December Delhi-110 055.
e-voting or e-voting during the AGM. to eliminate all risks associated with physical shares for ease 2020 2027
of portfolio management as well as for ease of transfer, 2021-22 18th September 20% 21st October 22nd October 19. eneral instructions for accessing and participating
G
4. T he Members attending the AGM through VC/OAVM shall be if required. In view of the same and to avail the in-built 2021 Final Dividend 2021 2028 in the 35th AGM through VC/OAVM Facility and voting
counted for the purpose of reckoning quorum under Section advantages of NECS payment, nomination facility and other 2021-22 4th February 2022 40% 9th March 2022 10th March 2029 through electronic means including remote e-Voting :
103 of the Act. advantages, the shareholders are requested to dematerialize
their shares. Members can contact the Company or RTA for The Members are also requested to note that after the last date, as i. s you are aware, in view of the situation arising due
A
5. Since the meeting is being held through VC/OAVM, the route assistance in this regard. mentioned above, by which they can claim the unpaid dividend to COVID-19 global pandemic, the general meetings
map, proxy form and attendance slip are not annexed to from the Company or RTA, the Members may apply for refund of of the companies shall be conducted as per the
the notice. 10. During the year under review, an Interim Dividend @ 40% i.e. any unclaimed dividend which has been transferred to the IEPF guidelines issued by the Ministry of Corporate Affairs
`4/- per equity share of face value of `10/- each, for financial by making an online application in the prescribed Form No. IEPF- (MCA) vide Circular No. 14/2020 dated 8th April 2020,
6. In view of the prevailing situation pursuant to the MCA year 2021-22 was declared and paid to the Shareholders of 5, available on website www.iepf.gov.in along with fee as may be Circular No.17/2020 dated 13th April 2020, Circular No.
Circulars and SEBI Circulars, the Notice of the 35th AGM and the Company. The Board of Directors considers the same as decided by the IEPF authority. 20/2020 dated 05th May 2020, Circular No. 02/2021
the Annual Report for the FY 2021-22 including therein the final dividend and therefore has not recommended any final dated 13th January 2021 and General Circular No. 2/22
Audited Financial Statements for FY 2021-22, are being sent dividend to the shareholders. Further, all the shares in respect of which dividend has remained dated 5th May 2022. The forthcoming AGM will thus be
only by electronic mode to the Members whose e-mail unclaimed for 7 consecutive years or more from the date of held through video conferencing (VC) or other audio
IDs are registered with the Company or the Depository 11. Members are requested to update their Know Your Client transfer to unpaid dividend account shall also be transferred to visual means (OAVM). Hence, Members can attend and
Participant(s). Therefore, those Members, whose email (“KYC”) with their Depository Participant (“DP”) (where IEPF Authority. In view of this, Members are requested to claim participate in the ensuing AGM through VC/OAVM.
address is not registered with the Company or with their shares are held in dematerialized mode) and with the RTA their dividends from the Company, within the stipulated timeline.
respective Depository Participant/s, and who wish to (where shares are held in physical mode). Members holding ii. Pursuant to the provisions of Section 108 of the
receive the Notice of the 35th AGM and the Annual Report shares in physical form are requested to intimate the RTA 14. As per the provisions of Section 72 of the Act, the facility of Companies Act, 2013 read with Rule 20 of the
for the FY 2021-22 and all other communication sent by the of the Company viz., Alankit Assignments Limited “Alankit making nomination is available for the Members in respect Companies (Management and Administration) Rules,
Company, from time to time, can get their email address House”, 4E/2, Jhandewalan Extension, New Delhi-110 055, of the shares held by them. Members who have not yet 2014 (as amended) and Regulation 44 of SEBI (Listing
registered by following the steps as given below: changes, if any, in their names, registered address along registered their nomination are requested to register the Obligations & Disclosure Requirements) Regulations
with pin code number, email address, telephone / mobile same by submitting Form No. SH-13. Member desires to 2015 (as amended), and MCA Circulars dated 08th April
a. For Members holding shares in physical form, please number, Permanent Account Number (“PAN”), mandates, opt out or cancel the earlier nomination and record a fresh 2020, 13th April 2020, 05th May 2020, 13th January 2021
send scan copy of a signed request letter mentioning nominations, power of attorneys, bank details such as name nomination, he/ she may submit the same in Form ISR-3 or and 05th May 2022 the Company is providing facility
your folio number, complete address, email address to of the bank, branch details, bank account number, MICR SH-14 as the case may be. The said forms can be downloaded of remote e-voting to its Members in respect of the
be registered along with scanned self-attested copy of code, IFSC code, etc. from the Company’s website www.iolcp.com. Members are business to be transacted at the AGM. For this purpose,
the PAN and any document (such as Driving License, requested to submit the said details to their respective DP in the Company has entered into an agreement with
Passport, Bank Statement, AADHAR) supporting the 12. SEBI has mandated the submission of Permanent Account case the shares are held by them in electronic form and to the Central Depository Services (India) Limited (CDSL) for
registered address of the Member, by email to the Number (PAN) by every participant in the securities market. Company / RTA, in case the shares are held in physical form. facilitating voting through electronic means, as the
Company’s email investor@iolcp.com. Members holding shares in electronic form are, therefore, authorized e-Voting’s agency. The facility of casting
requested to submit the PAN to their Depository Participants 15. In case of joint holders, the Members whose name appears votes by a member using remote e-voting as well as
b. For the Members holding shares in demat form, please with whom they are maintaining their demat accounts. as the first holder in the order of names as per the Register of the e-voting system on the date of the AGM will be
update your email address through your respective Further, in accordance with SEBI Circular No. SEBI/HO/MIRSD/ Members of the Company will be entitled to vote at the AGM. provided by CDSL.
Depository Participant/s. DOP1/CIR/P/2018/73 dated 20 th April 2018, all Members
holding shares in physical form are requested to register 16. To prevent fraudulent transactions, members are advised iii. The Members can join the AGM in the VC/OAVM mode
7. Notice of AGM is also available on the Company’s website their PAN and bank account details by submitting their self- to exercise due diligence and notify the Company of any 15 minutes before and after the scheduled time of
www.iolcp.com and websites of the Stock Exchanges i.e. attested copy PAN Card (including that of the joint holders change in address or demise of any member as soon as the commencement of the Meeting by following
BSE Limited and National Stock Exchange of India Limited also) and an original cancelled cheque or submit copy of possible. Members are also advised not to leave their the procedure mentioned in this Notice. The facility
at www.bseindia.com and www.nseindia.com respectively. bank passbook /statement of the holder attested by the demat account(s) dormant for long. Periodic statement of of participation at the AGM through VC/OAVM will
The Notice of AGM is also disseminated on the website of bank to the Registrar and Share Transfer Agent (RTA) of holdings should be obtained from the concerned Depository be made available to atleast 1000 members on first
CDSL i.e. www.evotingindia.com. the Company. Participant and holdings should be verified. come first served basis. This will not include large
Shareholders (Shareholders holding 2% or more
8. The Register of Members and Share Transfer Books of the 13. Members are requested to note that, pursuant to Sections 17. Members may also note that Annual Report is available on shareholding), Promoters, Institutional Investors,
Company shall remain closed from 20 th August 2022 to 124 and 125 of the Act read with the Investor Education and the Company’s website www.iolcp.com for their download. Directors, Key Managerial Personnel, the Chairpersons
26 th August 2022 (both days inclusive) for the purpose Protection Fund Authority (Accounting, Audit, Transfer and For any communication, the members may also send of the Audit Committee, Nomination and Remuneration
of AGM. Refund) Rules, 2016 (“IEPF Rules”), the dividend, pertaining requests to the Company’s investor email id: investor@iolcp. Committee and Stakeholders Relationship Committee,
to the following years, if not encashed for a period of 7 com Auditors etc. who are allowed to attend the AGM
9. As per regulation 40 of the SEBI Listing Regulations, except in years from the date of transfer to Unpaid Dividend Account without restriction on account of first come first
case of transmission or transposition of securities, requests of the Company, are liable to be transferred to the Investor 18. All activities for transfer of shares, dematerialization served basis.
for effecting transfer of securities shall not be processed Education and Protection Fund (“IEPF”) on the respective of shares, change of address etc. are carried out by the
unless the securities are held in the dematerialized form with dates mentioned there against:

iv. The attendance of the Members attending the AGM shares either in physical form or in dematerialized form, Type of shareholders Login Methods
through VC/OAVM will be counted for the purpose as on the cut-off date (record date) of 19th August 2022, Individual Shareholders holding 1. Users who have opted for CDSL Easi / Easiest facility, can login through their existing user id and password.
of ascertaining the quorum under Section 103 of the may cast their vote electronically. The e-voting module shareLs in Demat mode with CDSL Option will be made available to reach e-Voting page without any further authentication. The URL for users to
Companies Act, 2013. shall be disabled by CDSL for voting thereafter. login to Easi / Easiest are https://web.cdslindia.com/myeasi/home/login or visit www.cdslindia.com and click
on Login icon and select New System Myeasi.
v. Pursuant to MCA Circular No. 14/2020 dated 08th April ii. Shareholders who have already voted prior to the 2. After successful login the Easi / Easiest user will be able to see the e-Voting option for eligible companies
2020, the facility to appoint proxy to attend and cast meeting date would not be entitled to vote at the where the evoting is in progress as per the information provided by company. On clicking the evoting option,
the user will be able to see e-Voting page of the e-Voting service provider for casting your vote during the
vote for the members is not available for this AGM. meeting venue.
remote e-Voting period or joining virtual meeting & voting during the meeting. Additionally, there is also links
However, in pursuance of Section 112 and Section provided to access the system of all e-Voting Service Providers i.e. CDSL/NSDL/KARVY/LINKINTIME, so that the
113 of the Companies Act, 2013, representatives of iii. Pursuant to SEBI Circular No. SEBI/HO/CFD/CMD/ user can visit the e-Voting service providers’ website directly.
the members such as the President of India or the CIR/P/2020/242 dated 09.12.2020, under Regulation 3. If the user is not registered for Easi/Easiest, option to register is available at https://web.cdslindia.com/myeasi/
Governor of a State or body corporate can attend the 44 of Securities and Exchange Board of India (Listing Registration/EasiRegistration
AGM through VC/OAVM and cast their votes through Obligations and Disclosure Requirements) Regulations, 4. Alternatively, the user can directly access e-Voting page by providing Demat Account Number and PAN No.
e-voting. 2015, listed entities are required to provide remote from a link available on www.cdslindia.com home page or click on https://evoting.cdslindia.com/Evoting/
e-voting facility to its shareholders, in respect of all EvotingLogin. The system will authenticate the user by sending OTP on registered Mobile & Email Id as
vi. In line with the Ministry of Corporate Affairs (MCA) shareholders’ resolutions. recorded in the Demat Account. After successful authentication, user will be able to see the e-Voting option
Circular No. 17/2020 dated 13th April 2020, the Notice where the evoting is in progress and also able to directly access the system of all e-Voting Service Providers.
calling the AGM has been uploaded on the website of Currently, there are multiple e-voting service providers Individual Shareholders holding 1. If you are already registered for NSDL IDeAS facility, please visit the e-Services website of NSDL. Open web
the Company at www.iolcp.com. The Notice can also (ESPs) providing e-voting facility to listed entities in shares in demat mode with NSDL browser by typing the following URL: https://eservices.nsdl.com either on a Personal Computer or on a mobile.
be accessed from the websites of the Stock Exchanges India. This necessitates registration on various ESPs and Once the home page of e-Services is launched, click on the “Beneficial Owner” icon under “Login” which is
i.e. BSE Limited and National Stock Exchange of India maintenance of multiple user IDs and passwords by available under ‘IDeAS’ section. A new screen will open. You will have to enter your User ID and Password.
Limited at www.bseindia.com and www.nseindia.com the shareholders. After successful authentication, you will be able to see e-Voting services. Click on “Access to e-Voting” under
e-Voting services and you will be able to see e-Voting page. Click on company name or e-Voting service
respectively. The AGM Notice is also disseminated on provider name and you will be re-directed to e-Voting service provider website for casting your vote during
the website of CDSL (agency for providing the Remote In order to increase the efficiency of the voting the remote e-Voting period or joining virtual meeting & voting during the meeting.
e-Voting facility and e-voting system during the AGM) process, pursuant to a public consultation, it has been
2. If the user is not registered for IDeAS e-Services, option to register is available at https://eservices.nsdl.com.
i.e. www.evotingindia.com decided to enable e-voting to all the demat account Select “Register Online for IDeAS “Portal or click at https://eservices.nsdl.com/SecureWeb/IdeasDirectReg.jsp
holders, by way of a single login credential, through
3. Visit the e-Voting website of NSDL. Open web browser by typing the following URL: https://www.evoting.nsdl.
vii. The AGM has been convened through VC/OAVM their demat accounts/ websites of Depositories/ com/ either on a Personal Computer or on a mobile. Once the home page of e-Voting system is launched, click
in compliance with applicable provisions of the Depository Participants. Demat account holders would on the icon “Login” which is available under ‘Shareholder/Member’ section. A new screen will open. You will
Companies Act, 2013 read with MCA Circular No. be able to cast their vote without having to register have to enter your User ID (i.e. your sixteen digit demat account number hold with NSDL), Password/OTP and
14/2020 dated 08th April 2020 and MCA Circular No. again with the ESPs, thereby, not only facilitating a Verification Code as shown on the screen. After successful authentication, you will be redirected to NSDL
17/2020 dated 13th April 2020, MCA Circular No. 20/2020 seamless authentication but also enhancing ease and Depository site wherein you can see e-Voting page. Click on company name or e-Voting service provider
dated 05th May 2020, MCA Circular No. 2/2021 dated convenience of participating in e-voting process. name and you will be redirected to e-Voting service provider website for casting your vote during the remote
e-Voting period or joining virtual meeting & voting during the meeting
13th January 2021 General Circular No. 2/22 dated
5th May 2022. Step 1 : Access through Depositories CDSL/NSDL e-Voting
Individual Shareholders (holding You can also login using the login credentials of your demat account through your Depository Participant
shares in demat mode) login through registered with NSDL/CDSL for e-Voting facility. After Successful login, you will be able to see e-Voting option.
system in case of individual shareholders holding shares in
their Depository Participants Once you click on e-Voting option, you will be redirected to NSDL/CDSL Depository site after successful
The instructions for shareholders for remote e-voting
20. demat mode.
authentication, wherein you can see e-Voting feature. Click on company name or e-Voting service provider
and joining virtual meetings are as under: name and you will be redirected to e-Voting service provider website for casting your vote during the remote
iv. In view of the aforesaid SEBI circular dated December e-Voting period or joining virtual meeting & voting during the meeting.
Step 1 : Access through Depositories CDSL/NSDL e-Voting
9, 2020, Individual shareholders holding shares in
system in case of individual shareholders holding shares in demat mode are allowed to vote through their demat Important note: Members who are unable to retrieve User ID/ Step 2 : Access through CDSL e-Voting system in case of

demat mode. account maintained with Depositories and Depository Password are advised to use Forget User ID and Forget Password shareholders holding shares in physical mode and non-
Participants. Shareholders are advised to update option available at abovementioned website. individual shareholders in demat mode.
Step 2 : Access through CDSL e-Voting system in case of their mobile number and email Id in their demat
shareholders holding shares in physical mode and non- accounts in order to access e-Voting facility. Helpdesk for Individual Shareholders holding shares in demat v.
Login method for e-Voting and joining AGM
individual shareholders in demat mode. mode for any technical issues related to login through Depository through VC/OAVM for Physical Shareholders and
Pursuant to abovesaid SEBI Circular, Login method i.e. CDSL and NSDL shareholders other than individual holding in
i. The voting period begins on 23rd August 2022 at 9:00 for e-Voting and joining virtual meeting for Individual Demat form.
AM and ends on 25th August 2022 at 5:00 PM. During shareholders holding securities in demat mode is Login type Helpdesk details 1. The shareholders should login on to the e-voting
this period shareholders’ of the Company, holding given below:
Individual Shareholders Members facing any technical issue in login website www.evotingindia.com.
holding securities in can contact CDSL helpdesk by sending a
Demat mode with CDSL request at helpdesk.evoting@cdslindia.com 2. Click on “Shareholders” module.
or contact at toll free no. 1800 22 55 33 3. Now enter your User ID
Individual Shareholders Members facing any technical issue in login a. For CDSL: 16 digits beneficiary ID,
holding securities in can contact NSDL helpdesk by sending a
Demat mode with NSDL request at evoting@nsdl.co.in or call at toll b. For NSDL: 8 Character DP ID followed by 8
free no.: 1800 1020 990 and 1800 22 44 30 Digits Client ID,

c. Shareholders holding shares in Physical viii. For shareholders holding shares in physical form, the approval of the accounts they would be able to cast Further, the Shareholders who do not wish to speak
mode should enter Folio Number registered details can be used only for e-voting on the resolutions their vote. during the AGM but have queries may also send their
with the Company. contained in this Notice. queries in advance 5 days prior to meeting as above.
● A scanned copy of the Board Resolution and Power Such questions by the Members shall be replied during
4. Next enter the Image Verification as displayed and Click Click on the EVSN for IOL Chemicals and
ix. of Attorney (POA) which they have issued in favour the meeting, depending upon the availability of time or
on Login Pharmaceuticals Limited on which you choose of the Custodian, if any, should be uploaded in PDF may be replied suitably by email.
to vote. format in the system for the scrutinizer to verify
5. If you are holding shares in demat mode and had the same. viii. Those shareholders who have registered themselves as
logged on to www.evotingindia.com and voted on x. On the voting page, you will see “RESOLUTION a speaker will only be allowed to express their views/
an earlier e-voting of any company, then your existing DESCRIPTION” and against the same the option ● Alternatively Non Individual shareholders are ask questions during the 35th AGM depending upon the
password is to be used. “YES/NO” for voting. Select the option YES or NO as required to send the relevant Board Resolution/ availability of time.
desired. The option YES implies that you assent to the Authority letter etc. together with attested specimen
6. If you are a first time user follow the steps given below: Resolution and option NO implies that you dissent to signature of the duly authorized signatory who are ix. Only those shareholders, who are present in the AGM
the Resolution. authorized to vote, to the Scrutinizer and to the through VC/OAVM facility and have not casted their
For Physical shareholders and other than Company at the email address viz; investor@iolcp. vote on the Resolutions through remote e-Voting
individual shareholders holding shares in xi. Click on the “RESOLUTIONS FILE LINK” if you wish to com (designated email address by company), if they and are otherwise not barred from doing so, shall be
Demat. view the entire Resolution details. have voted from individual tab & not uploaded same eligible to vote through e-Voting system available
PAN Enter your 10 digit alpha-numeric PAN issued in the CDSL e-voting system for the scrutinizer to during the AGM.
by Income Tax Department (Applicable for both xii. After selecting the resolution you have decided to verify the same.
shareholders holding shares in demat mode and vote on, click on “SUBMIT”. A confirmation box will be x. If any Votes are cast by the shareholders through the
shareholders holding shares in physical mode) displayed. If you wish to confirm your vote, click on 21. Instructions for shareholders attending the AGM e-voting available during the AGM and if the same
l Shareholders who have not updated their PAN
with the Company/Depository Participant
“OK”, else to change your vote, click on “CANCEL” and through VC/OAVM & e-voting during meeting are shareholders have not participated in the meeting
are requested to use the first 2 letters of their accordingly modify your vote. as under: through VC/OAVM facility, then the votes cast by such
name and the 8 digits of the sequence number i. The procedure for attending AGM and e-Voting on the shareholders shall be considered invalid as the facility
in the PAN field. xiii. Once you “CONFIRM” your vote on the resolution, you day of the AGM is same as the instructions mentioned of e-voting during the meeting is available only to the
l In case the sequence number is less than will not be allowed to modify your vote. shareholders attending the meeting.
above for remote e-voting.
8 digits, enter the applicable number of
0’s before the number after the first two
xiv. You can also take a print of the votes cast by clicking on ii. The link for VC/OAVM to attend meeting will be 22.
Process for those shareholders whose email/
characters of the name in CAPITAL letters. Eg.
If your name is Ramesh Kumar with sequence
“Click here to print” option on the Voting page. available where the EVSN of Company will be displayed mobile no. are not registered with the Company/
number 1 then enter RA00000001 in the PAN after successful login as per the instructions mentioned depositories:
field. The persons entitled to vote on cut-off xv. If a demat account holder has forgotten the login above for e-voting. i. For Physical Shareholders- please provide necessary
date, who have acquired shares after dispatch password then Enter the User ID and the image details like Folio No., Name of shareholder, scanned
of notice may obtain details of sequence verification code and click on Forgot Password & enter iii Shareholders who have voted through remote e-Voting copy of the share certificate (front and back), PAN (self-
number from the Company/ RTA. the details as prompted by the system. will be eligible to attend the meeting. However, they attested scanned copy of PAN card), AADHAR (self-
Dividend Enter the Dividend Bank Details or Date of Birth (in
will not be eligible to vote at the AGM. attested scanned copy of Aadhar Card) by email to
Bank dd/mm/yyyy format) as recorded in your demat xvi. There is also an optional provision to upload BR/
Details account or in the company’s records in order to Company/RTA email id.
POA if any uploaded, which will be made available to iv. Shareholders are encouraged to join the Meeting
OR Date login.
of Birth l If both the details are not recorded with the scrutinizer for verification. through Laptops / IPads for better experience. ii. For Demat Shareholders - Please update your email id &
(DOB) depository or company please enter the mobile no. with your respective Depository Participant
member id / folio number in the Dividend Bank A dditional Facilit y for Non – Individual
xvii. v. Further, shareholders will be required to allow Camera (DP)
details field as mentioned in instruction (v). Shareholders and Custodians - For Remote and use Internet with a good speed to avoid any
Voting Only disturbance during the meeting. iii. For Individual Demat Shareholders – Please update your
vi. After entering these details appropriately, click on email id & mobile no. with your respective Depository
“SUBMIT” tab. ● Non-Individual shareholders (i.e. other than vi. Please note that Participants Connecting from Mobile Participant (DP) which is mandatory while e-Voting &
Individuals, HUF, NRI etc.) and Custodians are Devices or Tablets or through Laptop connecting via joining virtual meetings through Depository.
vii. Shareholders holding shares in physical form will required to log on to www.evotingindia.com and Mobile Hotspot may experience Audio/Video loss due
then directly reach the Company selection screen. register themselves in the “Corporates” module. to fluctuation in their respective network. It is therefore 23.
If you have any queries or issues regarding attending AGM
However, shareholders holding shares in demat form recommended to use Stable Wi-Fi or LAN Connection & e-Voting from the e-Voting System, you can write an email
will now reach ‘Password Creation’ menu wherein ● A scanned copy of the Registration Form bearing the to mitigate any kind of aforesaid glitches. to helpdesk.evoting@cdslindia.com or contact at toll free no.
they are required to mandatorily enter their login stamp and sign of the entity should be emailed to 1800 22 55 33
password in the new password field. Kindly note that helpdesk.evoting@cdslindia.com. vii. Shareholders who would like to express their views / ask 24. All grievances connected with the facility for voting by
this password is to be also used by the demat holders questions during the meeting may register themselves electronic means may be addressed to Mr. Rakesh Dalvi,
for voting for resolutions of any other company on ● After receiving the login details a Compliance as a speaker and send their questions in advance with Sr. Manager, (CDSL, ) Central Depository Services (India)
which they are eligible to vote, provided that company User should be created using the admin login and regard to the financial statements or any other matter Limited, A Wing, 25th Floor, Marathon Futurex, Mafatlal Mill
opts for e-voting through CDSL platform. It is strongly password. The Compliance User would be able to link to be placed at the 35th AGM, from their registered Compounds, N M Joshi Marg, Lower Parel (East), Mumbai -
recommended not to share your password with the account(s) for which they wish to vote on. email address, mentioning their name, DP ID and 400013 or send an email to helpdesk.evoting@cdslindia.com
any other person and take utmost care to keep your Client ID number / folio number and mobile number, or call toll free no. 1800 22 55 33.
password confidential. ● The list of accounts linked in the login should be to reach the Company’s email address investor@iolcp.
mailed to helpdesk.evoting@cdslindia.com and on 25.
All the documents referred to in the accompanying Notice of
com atleast 5 days in advance before the meeting.
the 35th AGM and the Explanatory Statement and/or statutory

documents will also be available for electronic inspection by Except for Mr Sharad Tyagi, none of the directors or key managerial b. Retire by Rotation: Dr Sanjay Chaturvedi shall be liable Statement as required under Section II of Part II of Schedule
the members from the date of circulation of this Notice upto personnel of the Company or their relatives are concerned or to retire by rotation. V to the Companies Act, 2013 giving details in respect of
the date of AGM. Members seeking inspection can send an interested in the resolution. Your Board recommends passing of appointment of Dr Sanjay Chaturvedi as Executive Director &
email at investor@iolcp.com. the Special Resolution set out at Item No. 3 of the Notice. c. Remuneration: As per resolution set out at item No 4 of CEO of the Company:
26.
The Company has appointed Mr Vinay Kohli, Partner, M/s. K.K. this Notice.
Kapoor & Associates, Chartered Accountants as scrutinizer Item No. 4
I. General Information:
for conducting the e-voting process in fair and transparent The Board of Directors, based on the recommendation of the d. Annual Appraisal: The annual appraisal shall be decided
by the Board, on the basis of recommendation of the 1. Nature of Industry: Pharmaceuticals (API’s) and
manner. Nomination & Remuneration Committee (the ‘NRC’) has, at its
Nomination and Remuneration Committee from time Chemical Industry.
27.
The Results of voting will be declared within 48 hours from the meeting held on 30th May 2022 appointed Dr Sanjay Chaturvedi
(DIN 08927689) as an Additional Director and the Wholetime to time.
conclusion of the AGM and the Resolutions will be deemed 2. Date of commencement of Commercial Production:
to be passed on the date of the AGM, subject to receipt of Director having a designation of Executive Director & CEO of the
e.
Other benefits: Entitlement to other benefits, The Company started its commercial production in the
requisite number of votes. The declared Results, along with Company for a period of 5 years w.e.f 30th May 2022. In accordance
privileges, amenities (including provision of car) and year 1991.
the Scrutinizer’s Report, will be available forthwith on the with the provisions of Section 161(1) of the Companies Act, 2013,
the Rules framed thereunder and the Articles of Association of amended salary structure etc. shall be as granted to
Company’s corporate website www.iolcp.com and on the 3.
In case of new companies, expected date of
the Company, Dr Sanjay Chaturvedi would cease to hold office at senior executives of the Company.
website of CDSL; such Results will also be forwarded to the commencement of activities as per object approved by
National Stock Exchange of India Limited and BSE Limited, the ensuing Annual General Meeting, however he shall be eligible
f. Remuneration in case of loss or inadequacy of profits: In financial institutions appearing in the prospectus: N. A.
where the Company’s shares are listed. for appointment as Director. Further, a notice under Section 160
of the Companies Act, 2013 has been received from a Member the event of loss or inadequacy of profits in any financial
year during the tenure of Dr Sanjay Chaturvedi as 4. Financial Performance based on given indicators:
signifying his intention to propose the appointment of Dr Sanjay
Explanatory Statement pursuant to Section 102 of the Executive Director & CEO, the Company shall continue ` in Crore
Chaturvedi as a Director.
Companies Act, 2013 to pay him the remuneration as approved by the Board Particulars Current Year Previous Year
Item No. 3 Dr. Sanjay Chaturvedi is a seasoned global business executive for any such financial year, for a period not exceeding Revenue from operations 2184.02 1966.98
The Board of Directors, based on the recommendation of the having worked in the specialty chemicals and pharmaceutical to 3 years, without seeking any further approval of Profit before tax 236.77 571.39
Nomination & Remuneration Committee (the ‘NRC’) has, at its industry for over 26 years in India and abroad. He brings a the Shareholders. Profit after tax 165.66 444.56
meeting held on 30th May 2022 appointed Mr Sharad Tyagi (DIN: demonstrated track record of business leadership in multi-
00371842) as an Additional Director for a period of 5 years w.e.f cultural and multi-national environments both, in USA and in g. Being Wholetime Director he has to devote whole 5. Foreign Investments or Collaborations, if any: NIL
30 th May 2022. In accordance with the provisions of Section India. Dr. Sanjay Chaturvedi has joined the organization on of his time and attention in furthering business of
161(1) of the Companies Act, 2013, the Rules framed thereunder 16th March 2021 in the capacity Chief Executive officer (CEO) the Company. II. Information about the appointee:
and the Articles of Association of the Company, Mr Sharad Tyagi of the Company. He previously worked with Praj Industries as 1. Background details:
would cease to hold office at the ensuing Annual General Meeting, President. Earlier, he held leadership roles at Aurobindo Pharma h. Either party is entitled to terminate the employment by
Dr. Sanjay Chaturvedi is a seasoned global business
however he shall be eligible for appointment as Director. Further, and Dr. Reddy’s Limited. serving 3 months’ notice in writing or any other period
executive having worked in the specialty chemicals
a notice under Section 160 of the Companies Act, 2013 has been as may be decided by the Board. There shall be no
and pharmaceutical industry for over 26 years. He
received from a Member signifying his intention to propose the Dr Chaturvedi earned a Bachelor’s degree in Chemistry (Honors) severance fees.
brings a demonstrated track record along with
appointment of Mr Sharad Tyagi as a Director. and a Master’s degree in Physical Chemistry from St Stephens functional expertise in P&L, Sales, Marketing, Strategy,
College, University of Delhi. He has a PhD in Physical Chemistry i. Supervision of production, business of the Company
Manufacturing and R&D in multi-cultural and multi-
Mr Sharad Tyagi brings over 35 years of intrapreneurship in from Stony Brook University, New York and a Management degree with powers and responsibilities to do all such acts,
national environments both, in USA and in India. Dr
India and international markets in diverse industries including from Wharton Business School, University of Pennsylvania. deeds, matters and other things deemed necessary,
Sanjay Chaturvedi is the Chief Executive Officer (CEO) of
pharmaceuticals, OTC, automotive catalysts and specialty proper or expedient for carrying on business and
the Company.
chemicals, successfully building and managing businesses to Dr Sanjay Chaturvedi is not disqualified from being appointed as concern of the Company.
create profitable high growth organisations delivering sustainable director in terms of Section 164 of the Act and he satisfies all the 2. Past remuneration:
shareholder value. Most recently until December 2020, he was the conditions set out in Part-I of Schedule V and Section 196(3) of j. Without approval of the Board, he shall not enter
any material financial and commercial transactions, The remuneration paid for financial year 2021-22 was
Managing Director for Boehringer Ingelheim (BI) (2009-2020), the Act.
involving his personal interest that may have a potential as follow:
India. Mr Sharad has set founded Tiyash Consulting which offers ` in Crore
advisory services in various areas including Strategy, Business The information as required to be disclosed pursuant to Regulation of raising a conflict with interest of the Company.
Other Contribution to
Management, Brand Management, Portfolio Development and 36 of the SEBI (Listing Obligations and Disclosure Requirements) Salary perquisites & Provident & other Total
People Development. Mr Sharad holds an Engineering Degree Regulations, 2015 regarding the directors seeking appointment at The above statement may be treated as a written memorandum allowances Funds
from Delhi University and MBA degree from IIM Ahmedabad. the AGM are provided in this notice. setting out the terms of his appointment under Section 190 of 1.01 1.40 0.12 2.53
the Act.
Mr Tyagi is not disqualified from being appointed as a director in The terms of appointment of Dr Sanjay Chaturvedi as Executive 3. Recognition or awards: Nil
terms of Section 164 of the Act and has given his consent to act Director & CEO are as follows: This explanatory statement together with the accompanying
as a director. Pursuant to the provisions of (i) the Securities and Notice is and should be treated as an abstract of the terms of
4. Job Profile and his suitability:
Exchange Board of India (Listing Obligations and Disclosure a. Nature of Job: Under the Supervision of the Directors appointment of Dr Sanjay Chaturvedi, as the Whole-time Director,
designated as the “Executive Director & CEO” of the Company Dr Sanjay Chaturvedi is the CEO and head of the overall
Requirements) Regulations, 2015 (“Listing Regulations”) and and MD of the Company. Dr Chaturvedi shall be
under the first proviso of sub-section (4) of Section 196 read with operations of the Company. Looking at the overall
(ii) Secretarial Standard on General Meetings issued by the responsible for all manufacturing related aspects and
Section 190 of the Companies Act, 2013. exposure and experience of Dr Chaturvedi in diversified
Institute of Company Secretaries of India. ensure operating efficiency of the Company. He shall
areas and responsibilities to be shouldered by him, he is
also be responsible for planning, production day to day
suitable for the position.
The Board recommends the Special Resolution as set out at tasks within all departments at the manufacturing site.
Item No. 3 of the Notice for approval by the members for the
appointment Mr Sharad Tyagi.

5. Remuneration proposed appointed as Director in terms of Section 164 of the Act. Information pursuant to Regulation 36 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
Details of remuneration proposed for approval of the Dr Sanjay Chaturvedi is not debarred from holding the office regarding the directors seeking re-appointment at the Annual General Meeting.
shareholders is provided in the Special Resolution as of Director pursuant to any Order issued by the Securities
Name of the Director Mr Sharad Tyagi Dr Sanjay Chaturvedi Mr Vikas Gupta
set out at Item No. 4 of the Notice of AGM. and Exchange Board of India (“SEBI“) or any other authority.
DIN 00371842 08927689 07198109
The Board recommends the Special Resolution as set out Date of Birth 1st November 1961 15th January 1970 13th February 1992
6.
Comparative Remuneration profile with respect
to industry, size of the Company, profile of the at Item No. 4 of the Notice for approval by the members Date of Appointment 30th May 2022 30th May 2022 29th May 2015
position and person (in case of expatriates, the for the appointment and payment of remuneration to Brief resume of the director Mr. Sharad Tyagi has a degree in engineering Dr. Sanjay Chaturvedi graduated from St Mr. Vikas Gupta graduated
relevant details would be w.r.t. the country of his Dr Sanjay Chaturvedi. from Delhi University and an MBA from Stephens College, University of Delhi, with from King’s College London,
IIM Ahmedabad. He has over 35 years of a Bachelor’s degree in Chemistry (Honors) University of London, with
origin): entrepreneurship experience in India and foreign and a Master’s degree in Physical Chemistry. a Bachelor of Science in
Except for Dr Sanjay Chaturvedi, none of the directors or markets, encompassing pharmaceuticals, OTC, PhD in Physical Chemistry from Stony Brook Business Management. He
Considering the size of the Company, the industry
key managerial personnel of the Company or their relatives automotive catalysts, and specialty chemicals. University in New York, and a Management is intellectually prepared
benchmarks, experience of and the responsibilities He was the Managing Director of Boehringer degree from the University of Pennsylvania’s and has organisational
are concerned or interested in the resolution. Your Board Ingelheim (BI) in India from 2009 to 2020. His Wharton Business School. He is a seasoned abilities. He spent two years
shouldered by the appointee, the proposed
recommends passing of the Special Resolution set out at previous positions include Senior Vice President, global business leader who has spent over in the company’s strategy
remuneration payable to Dr Chatur vedi is API and Global Head of the API Business at 26 years in the speciality chemicals and department, where he was
Item No. 4 of the Notice.
commensurate with the remuneration paid to similar Dr. Reddy’s (2007-2009) and Country Manager pharmaceutical industries with firms such as instrumental in developing
appointee in other companies. India and Director Strategy Asia - Engelhard Praj Industries, Dr. Reddy’s, and Aurobindo, the company’s Chemical and
Item No. 5 Corporation (1996-2006). to name a few. He has a proven track Pharmaceutical businesses.
record and functional competence in Sales, Over the previous 9 years,
7. Pecuniary Relationship directly or indirectly with On the recommendation of the Audit Committee, the Marketing, Strategy, Manufacturing, and he has been critical to the
the Company, or relationship with the managerial Board in its meeting held on 30 th May 2022, approved the R&D in the United States and India. organization’s operation
personnel, if any: appointment and remuneration of M/s Ramanath Iyer & Expertise in specific Entrepreneurship experience in India and foreign Sales, International Marketing, Strategy, Business management,
Co., Cost Accountants, New Delhi, to conduct audit of cost functional area markets, encompassing pharmaceuticals, OTC, Manufacturing, R&D, governance and strategy, planning general
Except for the remuneration Dr Chaturvedi does not automotive catalysts, and specialty chemicals regulatory. management etc.
accounting records maintained by the Company in respect
have any pecuniary relationship directly or indirectly
of chemicals and bulk drugs for the financial year ending
with the Company or Key Managerial Personnel (KMP)
31st March 2023 at a remuneration of ` 1,65,000/- plus goods In case of independent The role and capabilities required for an N/A N/A
of the Company. directors, the skills and independent director have been defined in the
and service tax and out-of-pocket expenses. In accordance capabilities required for the Nomination and Remuneration Policy of the
with the provisions of Section 148 of the Companies Act, 2013 role and the manner in which Company. The Board has also identified the
III. Other information: the proposed person meets list of skills, expertise, competencies that are
read with the Companies (Audit and Auditors) Rules, 2014,
1. Reasons of loss or inadequate profits: N.A. such requirements fundamental for it to function effectively, the said
the remuneration payable to the Cost Auditors for financial list is provided in this annual report.
year 2022-23 is required to be ratified by the shareholders. The Nomination and Remuneration Committee
2. Steps taken or proposed to be taken for improvement: Therefore, shareholders’ approval is sought for ratification of of the Board has evaluated the profile of Mr.
Sharad Tyagi and concluded that he possesses the
N.A. the remuneration payable to the Cost Auditors. relevant skill and capabilities to discharge the role
of Independent Directors.
3. Expected increase in productivity and profits in None of the Directors or Key Managerial Personnel of Total experience 35 years 26 years 9 years
measurable terms: N.A. the Company or their relatives is, in any way, concerned Present profession Consultant Service Executive Director
or interested, in the resolution. Your Board recommends
IV Disclosures: Qualification Engineering Degree from Delhi University and Bachelor’s degree in Chemistry (Honors) BSc. (Hons.) in Business
the passing of Ordinary Resolution set out at Item No. 5 of MBA degree from IIM Ahmedabad and a Master’s degree in Physical Chemistry Management from Kings
The information and Disclosures of the remuneration the Notice from St Stephens College, University of Delhi. College, London
package of all the Directors have been mentioned in the PhD in Physical Chemistry from Stony Brook
University, New York and a Management
Annual Report in the Corporate Governance Report Section degree from Wharton Business School,
under the Heading “Remuneration to Directors”. University of Pennsylvania.
Directorships in other public Nil Nil 1. Mayadevi Polycot Limited
Dr Sanjay Chaturvedi satisfy all the conditions set out in Part-I companies (excluding 2. NM Merchantiles Limited
private, foreign and section 8 3. NCG Enterprises Limited
of Schedule V to the Act as also conditions set out under companies) 4. Bhudeva Lifesciences Limited
Sub-Section 3 of Section 196 of the Act for being eligible
for his appointment. He is not disqualified from being Chairmanship of Board Nil Nil Nil
Committees of other public
companies
Membership of Board Nil Nil Nil
Committees of other public
companies
Listed entities from which the Nil Nil Nil
person has resigned in the
past three years
Shareholding in the Company Nil Nil Nil
Relationships between Not related to any other director Not related to any other director Son of Mr Varinder Gupta,
directors inter-se Managing Director
By Order of the Board
for IOL Chemicals and Pharmaceuticals Limited
Sd/-
Place: Ludhiana Abhay Raj Singh
Date: 30th May 2022 Vice President & Company Secretary

Notes Notes
Notes
CIN: L24116PB1986PLC007030
Corporate Office
85, Industrial Area ‘A’
Ludhiana - 141003,
Punjab, India
Website: www.iolcp.com

Annual Report 2021-22

Uploaded by

Copyright:

Available Formats

Annual Report 2021-22

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Annual Report 2021-22

Uploaded by

Copyright:

Available Formats

Credible Performance.

IOL Chemicals And Pharmaceuticals Limited

Introduction IOL at a Glance

Our Company is a leading API-based pharmaceutical company

Management Discussion Despite the pandemic, we have showcased credible performance

Corporate FDA, and Russian regulatory authorities, have helped us in

Our focus has been on progressing consistently through product

Credible Performance. Consistent Progress. Annual Report 2021-22 01

Scaling up for growth Accelerating Growth

02 Credible Performance. Consistent Progress. Annual Report 2021-22 03

IOL AT A GLANCE >> Introduction to IOL

Our Vision Our Mission Our Values Our Promise

1999 2009 2013 2017 2020

2000 2007 2015 2016 2021

IOL AT A GLANCE >> Business Segments

Active Pharmaceutical Ingredients (APIs) Specialty Chemicals

Areas of Treatment API Products

06 Credible Performance. Consistent Progress. Annual Report 2021-22 07

FY 2021-22 IN REVIEW >> Chairman’s Message

Expanding Our Horizon

08 Credible Performance. Consistent Progress. Annual Report 2021-22 09

FY 2021-22 IN REVIEW>> Message from the Managing Director

10 Credible Performance. Consistent Progress. Annual Report 2021-22 11

FY 2021-22 IN REVIEW >> Key Performance Indicators

2021-22 546 2021-22 153

2021-22 288 2021-22 10

2021-22 166 2021-22 2,300+

12 Credible Performance. Consistent Progress. Annual Report 2021-22 13

STRATEGY & RISK MANAGEMENT >> Strategy

Strengthening Our Capabilities

Our Strategic Priorities Focus on:

1414 Credible Performance. Consistent Progress. Annual Report 2021-22 15

STRATEGY & RISK MANAGEMENT >> Risk Management

Adapting to Uncertainities Risk Mitigation Method

16 Credible Performance. Consistent Progress. Annual Report 2021-22 17

R&D AND INNOVATION >> Approach to R&D

Relentless Pursuit Generic API Research

Our R&D activities are focused on creating goods that

18 Credible Performance. Consistent Progress. Annual Report 2021-22 19

R&D AND INNOVATION >> Innovations and Product Diversification

Innovation - “IOL Way of Life” FY 2021-22 Highlights

We have Completed Tech

Process has been Developed

CEP and US DMF Filed

4 Patents filed with

Innovation is a way of life at IOL. Our dedicated R&D team continues

20 Credible Performance. Consistent Progress. Annual Report 2021-22 21

ESG >> Environment

Reducing Our Environmental

22 Credible Performance. Consistent Progress. Annual Report 2021-22 23

ESG >> Social

Empowering People Corporate Social Responsibility

24 Credible Performance. Consistent Progress. Annual Report 2021-22 25

ESG >> Governance and Leadership

Robust Governance Board of Directors

Composition Promote ethical

manage business rights of the legitimate interest of compliances in letter

Dr. Sandhya Mehta Mr. Harpal Singh Mr. Sharad Tyagi

A: Audit Committee N: Nomination and Remuneration Committee Member

26 Credible Performance. Consistent Progress. Annual Report 2021-22 27

Mr. Rajender Mohan Malla