Archives: Services

Financial Capital Maximising Value Creation Sustainably We aim to create value for all our stakeholders bymanaging our financial capital in a commercially astute and diligent manner. Our prudent financial management has enabled us to deliver sound returns and uphold business viability and sustainability from a long-term perspective. Efficient Financial Management Our financial capital includes the equity investments of our shareholders; internal cash flows generated within the business; and debt raised from financial institutions. We are not merely driving for short-term growth and goals but are mindful and agile to make our decisions from a long-term perspective. To ensure a sustainable top-line, due investments are made in our manufacturing and intellectual capital to bring to our customers the quality products that we are recognised for; human and social capital for the well-being and empowerment of our employees and our local communities; and natural capital for promoting environmentally responsible measures across our operations. These investments are made in a carefully balanced and calibrated manner to further achieve financial goals and objectives. Complementing our top-line approach, we are focussed on managing our costs optimally. We are prudent in our treasury and cash flow management - ensuring adequate liquidity, reducing our cost of funds, and maintaining healthy gearing levels. We are also conscientious in applying effective risk management practices into our corporate decision-making process along with internal controls to bring the necessary checks and balances to our operations. This enables us to optimise value creation against a dynamic business landscape and strategically plan, scale up and consolidate our operations to deliver on our goals from a long-term perspective.

Responding with Grit in a Challenging Year FY 2020-21 saw an unprecedented health crisis, huge economic disruption and repeated lockdowns around the globe. Our immediate priority was the safety of our people and being responsive to the needs of customers. We moved with agility to ensure business continuity. Employees were provided all necessary support to work from home and keep them engaged. Close collaboration was maintained with our customers for seamless business continuity and we kept a close eye on the safety of our employees. Providing the necessary aid to our communities was also one of the priorities. 6000 + No. of COVID related tests conducted 175 + No. of vaccinations facilitated 40 ICU + Oxygen Beds COVID hospital set up for local communities 100 % customer orders fulfilled even during a challenging operating environment Looking after our PEOPLE The safety and security of our employees and contractual workers has always been our foremost priority and has remained our key focus throughout COVID-19. All our locations have been operating with the highest attention to man and material safety. Stringent safety measures were introduced following the pandemic outbreak, including regular sanitisation and adequate physical distancing at our workplaces and transportation, providing protective gear to employees, regulating entry through the Aarogya Setu App and with SpO2 and thermal screening, carrying out periodical testing for antibody and COVID-19 infections. We have taken up the responsibility of vaccinating our employees and their spouses. We also expanded medical insurance coverage to include COVID-19 treatment, extended complimentary health check-up and provided multivitamins for all our employees. Supporting our team practically and nurturing wellbeing have been the other important focus areas. For all eligible employees across all locations, timely annual increments, and performance incentives, bonuses and special financial incentives were also paid out despite the economic slowdown in the country. During the initial period of the nationwide lockdown, with alternating shift patterns, phase-wise resumption of operations, transport restrictions, and many people working from home, our digital solutions and interventions kept our teams connected and their morale high. Wellness session series was held online for employees and their families, along with imparting online training on a wide array of relevant subjects to help our employees cope up with the new normal. Driving Engagement Many of our customers are in industries manufacturing essential materials. Our aim has been to demonstrate that we stand by them no matter what, making every effort possible to ensure that their orders are fulfilled. During FY 2020-21, despite the challenges in the operating environment and our plants being shut down for first 35 days, we ensured 100% fulfilment of all customer order obligations. This was ensured by operating all plants at high capacity during the rest of the year while following all government safety mandate and maintaining continuous engagement with our customers. Our comprehensive business continuity plan and rigorous protocols to keep our employees and operations safe played a pivotal part in delivering on our customer commitments throughout the crisis. Our efforts reinforce our positioning as a reliable supply partner to our customers We always endeavour to work in close partnership with our customers. To better understand their goals and needs, we continued to proactively engage with them via various communication channels, even during this difficult period. By paying close attention to what mattered to them and tackling the external challenges, we were able to respond with the right products and timely supplies.   Helping our Communities During the COVID-19 pandemic, many of our efforts have been directed towards supporting local communities. In partnership with Deepak Foundation, the Company has put up a 40-bed COVID-19 hospital with ICU and oxygen beds, purchased PSA-based oxygen plants, oxygen concentrators and ventilators at nearby facilities and has taken other appropriate measures. Maintaining Business Continuity Deepak entered FY 2020-21 from a position of strength operationally, financially and strategically. Maintaining continuity of business operations throughout the COVID-19 crisis, while keeping our people safe, has also been a vital part of our response. This included managing our supply chain to enable continuity of product delivery to our customers; responding with alacrity to the high demand for certain products; and ensuring optimal capacity utilisation. Demonstrating our nimble footedness, when domestic markets were down due to COVID-19, we resorted to aggressive export positioning to ensure maximum plant utilisation. Meanwhile, a rigorous focus on cost leadership and healthy capital structure helped maintain strong liquidity and a healthy cash flow and balance sheet. Our breadth and depth of products and process competency has been fundamental in ensuring our business resilience. We continue to invest in our R&D, growing our product range, and operational excellence to drive continued strong performance.

Natural Capital Growing Sustainably We have implemented Environment Management Systems across all our manufacturing facilities and stringently abide by them. We are continually focused on improving our environmental performance by adopting best practices, sensitising employees and ensure evaluating environmental element across all our activities and capex projects. At Deepak, we have a dedicated policy for Employee Health, Safety, Environmental Protection and Quality which are at the core of our business values. We continue to undertake initiatives and make investments to make our operations more efficient and sustainable. Our growth plans are aligned with our agenda of sustainable development. To achieve this, we have adopted the principles of Responsible Care®, Management System standards, Process Safety Management and Global principles of Sustainable Development. Our Approach to Sustainable Development Emission Management Reducing our carbon footprint is an important focus area for us. We have installed a continuous monitoring system which helps in significantly controlling emissions and only emits traces of secondary pollutants such as PAN (Peroxyacetyl nitrate). During the year, we have undertaken measures like installation of electrostatic precipitator, bag filter and scrubber system in the boilers to reduce emissions. We have also replaced an old 8 TPH FO boiler with an efficient 12 TPH boiler. In our effort to offset carbon footprint, we have purchased ` 40.65 Lakhs of Renewable Energy Certificates (861 non-solar and 3,204 solar). Energy Management We are continually improving our manufacturing processes and replacing old equipment with efficient ones to reduce energy consumption. During the year, we have replaced Multi-Effect Evaporator (MEE) with Mechanical Vapor Recompression (MVR) at one of our RO reject treatment plant, resulting in a saving of ~0.26 Kg of steam per kilogram of feed. Ensuring Clean Air We have undertaken tree plantation drive across our plants and its nearby villages and forests to increase green cover. Together, our manufacturing facilities have planted and take care of ~50,000 tress either within the premises or near the forest land. In compliance with the Environment Clearance requirement of 33%, we also undertook tree plantation around the village of Nandesari GIDC and at a coal site in Hyderabad. Effectively Managing Water and Effluent All our manufacturing facilities are cognizant of the important of saving water resource and effectively managing waste wate and effluent. Over the years, we have made significant progress in these areas. We ensure our facilities recycle and reuses treated effluents at their nitration plant. We undertake to use treated wastewater in areas like cooling tower make up purpose and for gardening purposes. During FY 2020-21, some of the key measures undertaken include: Installation of MVR for RO treatment and Flocculation unit before Primary Clarifier Replacement of RO membranes of Sewage Treatment Plant (STP) and Effluent Treatment Plant (ETP) Upgradation of aeration system of bioreactor with new blower and ETP Installation of STPs in two plants Installation of Multi-Effect Evaporator (MEE) plant for OBA effluent treatment and stripper for H2N Effluent treatment, sludge drying bead and RO Plant for the MEE Condensate treatment Installation of MBR for Industrial wastewater and domestic sewage treatment and a carbon filter for better quality of treated wastewater at final discharge norms Initiation of new project on inline with MEE plant at two plant

1. Introduction A transparent, fair and reasonable process for determining the appropriate remuneration at all levels of the Company is required to ensure that shareholders remain informed and confident in the management of the Company. To harmonize the aspirations of human resources consistent with the goals of the Company and in terms of the provisions of the Companies Act, 2013 and the rules made thereunder and the Listing Regulations as amended from time to time, this policy on nomination and remuneration of Directors on the Board of the Company, Key Managerial Personnel and other employees in the Senior Management is formulated in compliance with Section 178 of the Companies Act, 2013 read with the applicable rules thereto and of the Listing Regulations with the Stock Exchanges. This Policy shall act as a guideline for determining, inter- alia, qualifications, positive attributes and independence of a Director, appointment and removal of the Directors, Key Managerial Personnel and Senior Management employees and matters relating to the remuneration for the Directors, Key Managerial Personnel and other employees. Pursuant to the requirement of Section 178 of the Companies Act, 2013 and the Listing Regulations with the Stock Exchanges, the Company has a duly constituted Nomination and Remuneration Committee. 2. Objective of the Policy 2.1 The objective of this Policy is to outline a framework to ensure that the Company’s remuneration levels are aligned with best industry practices and are good enough to attract and retain competent Directors on the Board, Key Managerial Personnel and the Senior Management Personnel of the quality required. The key objectives of this Policy include (i) guiding the Board in relation to appointment and removal of Directors, Key Managerial Personnel and Senior Management employees. (ii) evaluating the performance of the members of the Board and provide necessary report to the Board for further evaluation of the Board. (iii) recommending to the Board the remuneration payable to the Directors and setting forth a policy for determining remuneration payable to Key Managerial Personnel and Senior Management employees. 2.2 While determining the remuneration for the Directors, Key Managerial Personnel and Senior Management employees, regard should be given to prevailing market conditions, business performance and practices in comparable companies, also to financial and commercial health of the Company as well as prevailing laws and government/other guidelines, to ensure that pay structures are appropriately aligned and the levels of remuneration remain appropriate. 2.3 While designing the remuneration package it should be ensured: (i) The level and composition of remuneration is reasonable and sufficient to attract, retain and motivate person, to ensure the quality required to run the Company successfully. (ii) Remuneration to Directors, Key Managerial Personnel and Senior Management employees involves a balance between fixed and incentive pay reflecting short and long term performance objectives appropriate to the working of the Company and its goals. 2.4 Some part of the remuneration package may be linked to the achievement of corporate performance targets of the Company and a strong alignment of interest with stakeholders. 2.5 The Committee shall observe the set of principles and objectives as envisaged under the Companies Act, 2013 (“Act”) (including Section 178 thereof), rules framed there under and the Listing Regulations including, inter-alia, principles pertaining to determining qualifications, positives attributes, integrity and independence. 2.6 In this context, the following Policy has been formulated by the Nomination and Remuneration Committee and recommended to the Board of Directors for adoption. 3. Effective Date This Policy shall be effective from the date of its adoption by the Board. 4. Definitions 4.1 In this Policy the following terms shall have the meaning assigned to them: (i) “Act” means The Companies Act, 2013 and rules made thereunder. (ii) “Board of Directors” or “Board” means the Board of Directors of the Company. (ii) “Board of Directors” or “Board” means the Board of Directors of the Company. (iii) “Committee” means Nomination and Remuneration Committee of Board of Directors of the Company, constituted in accordance with the provisions of Section 178 of the Act and the Listing Regulations. (iv) “Company” means “Deepak Nitrite Limited.” (v) “Director” shall mean a member of the Board of Directors of the Company appointed from time to time in accordance with the Articles of Association of the Company and provisions of the Act. (vi) “Employees’ stock Option” means the option given to the Directors, other than Independent Directors, officers or employees of a Company or of its holding company or subsidiary company or companies, if any, which gives such directors, officers or employees, the benefit or right to purchase, or to subscribe for, the shares of the company at a future date at a pre- determined price. (vii) “Executive Director” shall mean a Director who is in the whole-time employment of the Company other than Managing Director. (viii) “Financial year” shall mean the period ending on the 31st day of March every year. (ix) “Independent Director” shall mean a Director referred to in Section 149 (6) of the Act read with the Listing Regulations. (x) “Key Managerial Personnel” or “KMP” shall have the meaning ascribed to it in the Act. (xi) “Listing Regulations” shall mean Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended from time to time and for the time being in force. (xii) “Managing Director” means a Director who, by virtue of the Articles of Association of the Company or an agreement with the Company or a resolution passed in its general meeting, or by its Board of Directors, is entrusted with substantial powers of management of the affairs of the Company and includes a Director occupying the position of Managing Director, by whatever name called. (xiii) “Policy” or “this Policy” means, “Nomination and Remuneration Policy.” (xiv) “Remuneration” means any money or its equivalent given or passed to any person for services rendered by him and includes perquisites as defined under the Income-tax Act, 1961. (xv) “senior Management” means officers/personnel of the Company who are members of its core management team excluding Board of Directors and [...]