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02-65About Deepak NitriteCorporate OverviewStatutory ReportsFinancial StatementsResponsive Actions. Responsible Chemistry.Manufacturing footprintVISIONTo become the fastest growingIndian chemical intermediatescompany.An extensive networkOur extensive supply chain arrangement includingstructured warehousing and distribution systemenables timely delivery at customer sites.DNL is recognised globally as a ‘Responsible Manufacturer’ and as a ‘Supplierof Choice’ by marquee customers. Led by an able management team, DNL hasleveraged process expertise, technological prowess and operational excellenceto capitalise on opportunities for growth and deliver sustained value forstakeholders.Key differentiators Sustainable and versatile business model Largest producer of sodium nitrite and sodium nitrate since 1972 in India Largest producer of Phenol and Acetone Among top three global players for products like xylidnes and oximes Strong R&D capabilities Rich legacy of over five decades1,000 6Customers acrossManufacturingfacilitiesCustomers45 countries56 InnovativenessDeepak Nitrite Limited (DNL) is one of the fastest growingand trusted chemical intermediates company in India witha diversified portfolio of products that caters to multipleindustries with myriad applications. These products arewidely used across end-user industries such as pharma,agrochemicals, laminates, paints, etc and serve as buildingblocks /key raw materials for further processing into variousother speciality chemicals or end-user industries. Given ourcost leadership along with locational advantage, we enjoya sustainable and growth-oriented business model in thechemicals industry.30 ProductsAttributesDriving not just product ideas butalso innovation in terms of processesand employee engagement thusmaximising growth.Key factsApplicationsNandesari, GujaratAgilityChange is constant. This equips theorganisation to respond rapidly to thisdynamic world.Dahej, GujaratResponsivenessTowards employees, customers,community and all stakeholders.Dahej, Gujarat (DPL)Performance-drivenRewarding performers acrossverticals, thereby motivating peopletowards leadership.Hyderabad, TelanganaOwnershipWhere the vision becomes not justthe company goal but the individualgoal as well.Taloja, MaharashtraRoha, MaharashtraManufacturing Plants651st Annual Integrated Report 2021-22Deepak Nitrite Limited7

02-65Business OverviewCorporate OverviewStatutory ReportsFinancial StatementsDelivering with an Optimal PortfolioWe offer a wide range of products across our diversified yet integrated business segments that meetthe stringent quality and sustainability norms of marquee customers across various sectors.Basic Intermediates(Essential to all Materials)Fine & Speciality ChemicalsPerformance ProductsPhenolicsOverviewStandard products manufactured in bulkSpecialised products customisedto the clients’ specificationsOverviewProducts with stringent requirements in termsof performance in manufacturing processHigh volume import substitutesProductsSodium Nitrite, Sodium Nitrate, Nitro Toluidines,Fuel Additives, Nitrosyl Sulphuric AcidXylidines, Oximes, Cumidines, SpecialityAgrochemicalsProductsOptical Brightening Agent (OBA), DASDACumene, Phenol, Acetone, Isopropyl AlcoholApplicationdiversityColourants, Petrochemicals, Rubber,Agrochemicals, Pharmaceuticals, WaterTreatment, Glass Industries, IndustrialExplosives and Fuel AdditivesAgrochemicals, Colours & Pigments, Paper,Personal Care, Pharmaceuticals etc.ApplicationdiversityPaper, Detergents, Textiles, Coating Applicationsin Printing and Photographic PaperLaminate & Plywood, Automotive,Construction, Pharmaceuticals, Adhesives,Sanitisers, Rubber, Chemicals, Paints tion7.64%61.94%Contribution toEBIT20.37%16.76%Contribution toEBIT6.41%56.46%Performance Performance 8The basic intermediate segment grew by66% driven by debottlenecking exercises andcapacity augmentation initiatives undertakenin key products, which allowed us to increasevolumes in the second half of the yearOn the back of sharp rises in input pricesduring the year, we were able to pass on mostof the costs to customers with some time lag,resulting in sustained EBITDA without losingwallet share for all key accounts51st Annual Integrated Report 2021-22 Fine & Speciality Chemicals segmentreported 10% revenue growth. Theperformance was driven by strong demandand an appealing product lineup thattailored to a broad and diverse array ofapplicationsCost of major raw materials increased duringthe year resulting in normalisation of EBITDAperformanceGoing forward we will gain from new multiyear contracts with leading customers, withcost pass-through mechanisms in place Performance Products segment reportedhealthy revenue growth at 74% driven bypositive demand trends for key productsresulting in a sharp rise in volumesaccompanied by improved sales realisation Overall, the wallet shares with large customerseither increased or was maintainedIncreased our foray into new export markets,which were hitherto untapped Delivered an outstanding performancewith revenue growth of 68%. EBITDAexpanded by 35% year-on-year translatinginto a PAT expansion at 48%. This wasachieved despite a sharp increase in keyraw materials such as Propylene andBenzene combined with skyrocketingprices of coalManaged to operate the plant at anelevated utilisation level on a sustainedbasisDeepak Nitrite Limited9

02-65Key Performance IndicatorsCorporate OverviewStatutory ReportsFinancial StatementsDelivering on our CommitmentDespite seasonal headwinds, we delivered a stellar performance, increased our investmentsand achieved strategic growth in all our business verticals. Showed marked improvement across variousparameters Sustained increase in return ratios, with debt levelsat all-time lowDemonstrates strength of efficient manufacturingmodel with adequate backward integration anddepth of multi-year relationships with key customersProfit and Loss indicatorsEarnings per 0778.20( )4.5012.73FY18FY196FY1850.01%2FY19Dividend per share1.30FY18( )1,067776791742094291,6892,715611FY21( Crores)1,2694,3821,0614,265FY20PAT56.88( Crores)44.80EBITDA6,845( 29%Balance Sheet indicatorsReturn on equityReturn on capital 572000.1510105831,072922(times)400.99FY21Net Debt to equity ratio1,9201,825FY202,3471,701( Crores)1.08Net fixed assets3,338( Crores)1,788Net worthFY18FY19FY2042.26%Y-o-Y growth10FY21FY2236.10%(5-year CAGR)51st Annual Integrated Report 19FY2027.05%Y-o-Y growth(5-year CAGR)FY18FY19FY22

02-65Chairman and Managing Director’s MessageExpanding our AmbitionAccording to CRISIL, the IndianSpeciality chemicals industry willoutpace its Chinese counterpartand double its share of the globalmarket to 6% by 2026 from 3-4%in fiscal 2021. This will drive astrong revenue growth of 18-20%this fiscal and 14-15% in the nextfiscal, compared to single-digitgrowth reported in the previoustwo fiscals.Corporate OverviewStatutory ReportsFinancial StatementsDear Stakeholders,The Indian economy sharply bounced back in FY 2021-22, withrobust GDP growth of 8.7% after 6.6% contraction reported inthe previous year due to restrictions and lockdowns imposed bythe Government to control the spread of COVID-19 pandemic.Government expenditure and domestic spending has supportedthe economy, complemented by a long-term focused growthoriented budget. The initiatives undertaken by the Governmentin the recent past, such as the commodity-intensive NationalInfrastructure Pipeline (NIP) and Production Linked Incentive(PLI) scheme to boost local manufacturing, will play a big rolein making India a manufacturing hub for global majors. Thisis encouraging, and such bold and scalable programmes areinstrumental in realising the vision of a self-reliant India.Indian chemical industry performanceAccording to CRISIL, the Indian Speciality chemicals industrywill outpace its Chinese counterpart and double its share of theglobal market to 6% by 2026 from 3-4% in fiscal 2021. This willdrive a strong revenue growth of 18-20% this fiscal and 14-15% inthe next fiscal, compared to single-digit growth reported in theprevious two fiscals.The chemical industry across the globe is undergoing a strategicshift in supply chain from China to other countries includingIndia. This presents huge opportunity for India to showcase theirexpertise and become a global hub for chemical manufacturing.China emerged as a global manufacturing giant in recent decades.Since 2000, its chemical production capacity has increasedeightfold. However, in recent years, capacity reductions as a resultof increasing environmental compliance of chemical facilities,a trade war with the US, and, most recently, COVID-19 crisis-ledlockdowns and Russia-Ukraine war have led companies to adopta China 1 strategy. With supply chain disruption and uncertaintyin China, global players are looking to diversify their sourcing, andIndia provides strong alternatives with similar scale, technology,raw materials, and supportive Government policies.The year in perspectiveWe continued to be agile to the changing needs and preferences ofour customers and delivered specialised solutions to stay aheadof the curve. While doing so, we prudently deployed capital toelevate our market position in the chosen chemistries. Despitea challenging macro-economic backdrop, we demonstratedimmense resilience to continue our operations uninterrupted,while fulfilling the supply commitments of customers. Weundertook several enhancements in the product mix, improvedrealisations and cost reduction efforts which helped deliver bettermargin profile. Overall, we achieved highest-ever revenue andprofitability during FY 2021-22 despite all odds.Premised on strong earnings performance, the Board of Directorsrecommended a dividend of 7 per equity share, i.e., 350%of face value of 2 each for FY 2021-22 towards rewarding itsshareholders.process research, product innovation, intellectual property,and analytical references to provide integrated solutions for ourcustomers. We are making sizeable investment in R&D to buildin-house capability to create a pipeline of products that will drivefuture growth. Deepak Research and Development Centre (DRDC)has enabled us to file applications for 36 patents cumulatively anddevelop innovative and advanced intermediates that drive ourportfolio expansion.Our people are our most valuable asset, and their domainknowledge and experience provide us with a significantcompetitive advantage. Our experienced professionals arecrucial to our ambition to become a global leader in our business.The Company comprises committed and motivated employeesbecause we have developed a motivating work culture andpriortised the health of our employees through regular healthcheck-ups and safe work practices. We are committed to highstandards of ESG practice and our operations are aligned toResponsible Care practices.Access to basic health services is a challenge in villages andeconomically challenged areas in India. As a responsiblecorporate citizen, Deepak Group extends support to the residentsof these villages and rural areas by providing primary healthcareservices. We have launched 4 Mobile Health Units that providehealth care services in 133 villages around Dahej and Dugdha inGujarat and Taloja and Roha in Maharashtra. We have impactedaround 1,70,000 lives through our CSR initatives, in FY 2021-22.OutlookLooking ahead, we will continue the next phase of our growthjourney by strengthening the quality of customer engagement,sharpening existing strong procurement and logistics practices,enhancing safety and sustainability efforts and nurturing aprogressive work culture. Our planned foray into advancedsolvents, various upstream and downstream products and addingnew chemistry platforms is a step in the right direction to diversifyour product portfolio, widen the customer base, and increasethe value-addition across the portfolio. All this will fortify ourbusiness proposition, while elevating our leadership positionacross chosen chemistries. We will continue to be a partner ofchoice for leading Indian and global conglomerates by leveragingdeep chemistry expertise and robust manufacturing set-up.I would like to extend my heartfelt gratitude to all ourstakeholders and shareholders for their untiring support thathelped us beat the industry standards and set new benchmarks. Ilook forward to a bright future in the years to come.Regards,Deepak C. MehtaChairman and Managing DirectorAt Deepak Nitrite, R&D forms a cornerstone for growth, andwe consistently build our capabilities and competencies in1251st Annual Integrated Report 2021-22Deepak Nitrite Limited13

02-65CEO’s MessageCorporate OverviewDepend on DeepakShareholders – Based on our core fundamentals and our values,we designed an appropriate roadmap to be a responsiblecompany that invests in consistent, high quality growth where ithas a clearly articulated ‘Right to Win’. We aim to demonstrateresponsibility by ensuring that today’s growth does not comeat tomorrow’s expense. We seek high quality growth based oncareful assessment of future potential and multi-year growthstrategies. Our clearly articulated ‘Right to Win’ balancesearned or bought process excellence with high ROCE or ROAopportunities.Despite huge challenges in theoperating environment, in theyear gone by, we sharpened focuson creating value for business bycontinuing to build a companythat is increasingly agile, resilient,and future ready. I am delighted toshare that throughout FY 2021-22,Deepak’s integrated businessmodel ensured that financialstrength remained resilient andmajor strategic endeavoursremained on track.Customers – We pride ourselves on being a responsive companythat leverages deep process expertise to become a partner ofchoice by supplying complex chemicals manufactured usingsafe and sustainable means. We are responsive as we prioritiseunderstanding and addressing the concerns of customersand supporting their strategic impetus. We leverage processexpertise by creating and communicating deep knowhow intoour key processes. We strive to be a partner of choice by servingcustomers so that Deepak is the first in mind when consideringa new opportunity. We use safe and sustainable means byrelying on processes which are in line with their ESG values forstewardship.People – Our core people practices seek to create agile andadaptive leaders who cultivate teams with a bias for actions inan environment based on principles. We encourage our peopleto be agile and adaptive by addressing opportunities with speedand alacrity. We define leaders as ones that take ownershipof outcomes, rather than resorting to hierarchies. We seek tocreate teams where collaboration is key and information siloscan be systemically eliminated. We reward bias for action inorder to avoid the pitfall of teams engaging in endless discussionloops. Underlying our ethos, is the principle where choosingbetween options is as easy as doing what is right, rather thandoing what is ordained.Community - To ensure that the society around us is better offwith our presence rathern than with our absence.Performance in FY 2021-22Dear Stakeholders,Despite huge challenges in the operating environment inthe year gone by, we sharpened focus on creating value forbusiness by continuing to build a company that is increasinglyagile, resilient, and future ready. I am delighted to share thatthroughout FY 2021-22, Deepak’s integrated business modelensured that financial strength remained resilient and majorstrategic endeavours remained on track.1451st Annual Integrated Report 2021-22As the teams managed to harmonise the effects of theunpredicatable swings in economic factors due to the pandemicand geopolitical forces, we evaluated our raison d’être- mostimportant reasons to exist- from the perspective of our keystakeholders. Every stakeholder has an opportunity cost whileinvesting their money, time, business, trust, and we mustdemonstrate how we value this by giving them a reason to‘Depend on Deepak’.The Company has leveraged its diversified business modelto achieve a robust performance- all businesses grew marketshare. Phenolics, Basic Intermediates and PerformanceProducts were able to maintain margins despite phenomenalchallenges in raw material prices and availability. FSC, by natureof its preference on contractual agreements and customerrelationships, saw cost pass through on a quarterly basis.Revenues grew by 56%, EBITDA by 30% and PAT by 37% ascompared to the previous year.In line with our focus on product stewardship, the Companyachieved a steep upward jump in its Ecovadis assessmentscore to 60% with a silver medal and has set a target for gold. Itremains a signatory of Responsible Care and is part of the NicerGlobe alliance.Statutory ReportsFinancial StatementsOur consistent focus on quality, innovation and R&DOur adherence to quality standards and continuous focus oncustomer needs related to product, packing, documentationand timely delivery is based on the firm conviction of ‘Firsttime-right’ and ‘zero tolerance for deviations and defects’.Our considerable investments in maintaining a strongproduct pipeline through our relentless focus on researchand development to build innovative products is anotherarea that remained unchanged. We are continually workingtowards enhancing our technology capabilities by focusing onnew chemistries and application development capabilities,technology platforms, product research and testing services.Our advanced R&D facility enables us to develop innovativeintermediates, positioning us as a responsible manufacturer.Road aheadAs we look ahead, we reiterate our commitment to pursue avalue-oriented investment strategy that will lead to a diverseportfolio of solid businesses. We are confident in the long-termprospects of each of our businesses. Significantly, we havestrong governance processes in place, high standards of ethicaland responsible performance, and we are an active contributorto societal development. Our commitments are driven by our thirst for creating valueby developing value-added products of Phenol & Acetone,adding new chemistry platforms and investing in upstreamintegration projects to improve marginsA well-capitalised balance sheet and past track record ofexecuting large projects will allow us to pursue growth in linewith business strategyWe remain poised to accomplish ‘Make in India for theWorld’ goal, bolstered by strong end-user demand,expanding Indian economy and China 1 strategyOver the next two years, we will invest about 15billion in new upstream/downstream produ

DNL/138/BSE/799 t2022 July 12,2022 To, BSE Limited Department of Corporate Services, Phiroze Jeejeebhoy Towers, Datal Steet, Fort, Mumbai-400 001 Dear Sir, Scrip Code: 506401 Sub: 51st Annual Integrated Report and Notice of the 51't Annual GeneralMeeting ("AGM") for the FinancialYear ("FY"l2021-22 Pursuant to the provisions of Regulation 34 of the SEBI (Listing Obtigations and