Deepak Nitrite , a prominent chemical manufacturing company, has recently addressed issues related to delayed Provident Fund (PF) remittances, as disclosed in a regulatory filing to the Bombay Stock Exchange (BSE).

Provident Fund Compliance Orders

The Assistant Provident Fund Commissioner, Bharuch, issued two orders against Deepak Nitrite, which the company received on August 6. These orders were in response to delayed remittances of Provident Fund amounts during the period from March 1, 2013, to April 30.

Financial Implications

The orders mandated Deepak Nitrite to pay:

Company's Response

Deepak Nitrite has promptly addressed the issue by depositing both the interest and damages amounts as required by the orders. In its disclosure to the BSE, the company stated that there would be no material financial impact beyond the mentioned payments.

Regulatory Compliance

This disclosure was made in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company's proactive approach in settling the dues and transparently communicating with stakeholders demonstrates its commitment to regulatory compliance.

Conclusion

While the incident highlights a period of delayed Provident Fund remittances, Deepak Nitrite's swift action in settling the dues and openly disclosing the matter to the stock exchange reflects positively on its corporate governance practices. The company's assertion of no further material financial impact suggests that this event is unlikely to significantly affect its overall financial health or operations.

Deepak Nitrite Limited (DNL), a prominent player in the chemical industry, has announced a significant financial transaction involving its wholly-owned subsidiary, Deepak Chem Tech Limited (DCTL). The subsidiary has issued Optionally Convertible Redeemable Preference Shares (OCRPS) valued at ₹500 million to the parent company, reinforcing DNL's commitment to strengthening its subsidiary's capital base and supporting ongoing project expenses.

Key Transaction Details

DCTL has issued and allotted 50,00,000 9% Optionally Convertible Redeemable Preference Shares (OCRPS) to Deepak Nitrite Limited. The OCRPS, each with a face value of ₹100, were issued at par, resulting in an aggregate investment of ₹500.00 million from the parent company.

Strategic Implications

This financial maneuver serves multiple purposes:

1. Capital Base Enhancement: The infusion of funds is aimed at bolstering DCTL's capital structure.
2. Project Support: The investment will aid DCTL in financing its ongoing and future project expenses.
3. Operational Expansion: As DCTL actively pursues projects across various sites in Gujarat, this capital injection is likely to fuel its growth initiatives.

About Deepak Chem Tech Limited

DCTL, incorporated on October 9, 2020, has been making strides in the chemical industry:

• Core Operations: The company operates a state-of-the-art fluorination plant, which has been functional since March 21, 2024.
• Financial Performance: DCTL reported a turnover of ₹9.43 crore.
• Ownership Structure: Post this transaction, Deepak Nitrite Limited continues to hold 100% of DCTL's equity share capital. Additionally, DNL, along with another wholly-owned subsidiary, Deepak Phenolics Limited (DPL), indirectly holds 100% of DCTL's preference share capital.

Transaction Compliance and Transparency

The transaction adheres to regulatory requirements:

• It falls under the Related Party Transaction (RPT) category, as DCTL is a wholly-owned subsidiary of Deepak Nitrite Limited.
• The allotment was made on an "arm's length" basis, ensuring fairness and transparency in the transaction.
• The company has duly informed the BSE Limited, complying with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

This strategic move by Deepak Nitrite Limited reflects its confidence in DCTL's potential and its commitment to fostering growth within its group companies. As DCTL continues to expand its operations and pursue new projects, this financial backing is expected to play a crucial role in its developmental trajectory within the chemical industry.