12th Floor, The Ruby

29 Senapati Bapat Marg

Dadar (West)

Mumbai - 400 028, India

Tel: +91 22 6819 8000

Chartered Accountants

Independent Auditor's Review Report on the Quarterly and Year to Date Unaudited Standalone Financial Results of the Company Pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended

Review Report to

The Board of Directors

Hikal Limited

  1. We have reviewed the accompanying Statement of Unaudited Standalone Financial Results of Hikal Limited (the "Company") for the quarter ended September 30, 2023 and year to date from April 1, 2023 to September 30, 2023 (the "Statement") attached herewith, being submitted by the Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the "Listing Regulations").
  2. The Company's Management is responsible for the preparation of the Statement in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34, (Ind AS 34) "Interim Financial Reporting" prescribed under Section 133 of the Companies Act, 2013 as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. The Statement has been approved by the Company's Board of Directors. Our responsibility is to express a conclusion on the Statement based on our review.
  3. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Institute of Chartered Accountants of India. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement is free of material misstatement. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
  4. Based on our review conducted as above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standards ('Ind AS') specified under Section 133 of the Companies Act, 2013 as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of the Listing Regulations, including the manner in which it is to be disclosed, or that it contains any material misstatement.

S R B C & CO LLP, a Limited Liability Partnership with LLP Identity No. AAB-4318

Regd. OfÕce : 22, Camac Street, Block 'B', 3rd Floor, Kolkata-700 016

Chartered Accountants

Hikal Limited

5. We draw attention to note 3 and note 4 to the Statement, as regards the ongoing investigations / actions by statutory authorities in relation to alleged non-compliance with certain environmental laws and regulations, and the litigation in respect of the matter referred to in note 3, the outcome of which is presently uncertain. Our conclusion is not modified in respect of these matters.

For S R B C & CO LLP

Chartered Accountants

ICAI Firm registration number: 324982E/E300003

Digitally signed by Vinayak

Vinayak Shriram DN: cn=Vinayak Shriram Pujare,

Shriram Pujare

Pujare

c=IN, o=Personal,

email=vinayak.pujare@srb.in

Date: 2023.11.02 14:05:11 +05'30'

per Vinayak Pujare Partner

Membership No.: 101143

UDIN: 23101143BGYWPO6189

Place: Mumbai

Date: November 02, 2023

Page 2 of 2

Statement of unaudited standalone financial results for the quarter and half year ended 30 September 2023

Particulars

Income

Revenue from operations

Sale of products and services

Other operating revenue

Total revenue from operations

Other income

Total income

Expenses

Cost of materials consumed

Changes in inventories of finished goods and work-in-progress

Employee benefits expense

Finance costs

Depreciation and amortisation expenses

Other expenses

Total expenses

Profit before tax

Tax expense: -Current tax -Deferred tax

Total tax expense

Profit for the period

Other comprehensive income (OCI)

Items that will not be reclassified to statement of profit and loss

Income tax relating to item that will not be reclassified to statement of profit and loss

Other comprehensive income/(loss) for the period (net of income tax) Total comprehensive income

Paid-up equity share capital (Face value of Rs 2/- each)

Other equity

Earnings per share (Face Value of Rs 2/- each) (Not annualised for quarters)

  • Basic
  • Diluted

Rs. In Lakhs (Except for earning per share)

Standalone

Quarter ended

Half year ended

Year ended

30-Sep-23

30-Jun-2330-Sep-22

30-Sep-23

30-Sep-22

31-Mar-23

Unaudited

Unaudited Unaudited

Unaudited

Unaudited

Audited

43,123

38,614

55,703

81,737

92,835

200,470

365

191

172

556

919

1,833

43,488

38,805

55,875

82,293

93,754

202,303

99

94

125

193

452

541

43,587

38,899

56,000

82,486

94,206

202,844

21,230

21,707

31,292

42,937

55,070

112,159

82

(4,660)

474

(4,578)

(666)

(1,456)

6,091

5,909

5,750

12,000

10,025

22,040

1,308

1,379

1,080

2,687

2,209

4,810

2,857

2,773

2,741

5,630

5,391

10,901

10,338

10,826

11,386

21,164

20,085

43,854

41,906

37,934

52,723

79,840

92,114

192,308

1,681

965

3,277

2,646

2,092

10,536

450

272

535

722

535

3,048

(21)

7

258

(14)

(33)

(350)

429

279

793

708

502

2,698

1,252

686

2,484

1,938

1,590

7,838

(19)

(20)

40

(39)

80

(76)

5

5

(10)

10

(20)

20

(14)

(15)

30

(29)

60

(56)

1,238

671

2,514

1,909

1,650

7,782

2,466

2,466

2,466

2,466

2,466

2,466

110,881

1.02

0.56

2.01

1.57

1.29

6.36

1.02

0.56

2.01

1.57

1.29

6.36

Notes :

  1. The above results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on 2 November 2023.
  2. The standalone financial results for the quarter ended and half year ended on 30 September 2023 have been subjected to a 'Limited Review' by the statutory auditors of the Company. The statutory auditors have expressed an unmodified review conclusion. The limited review report will be filed with the stock exchanges and will also be available on the Company's website, www.hikal.com.
  3. In connection with the alleged improper disposal of by-products by the Company in January 2022, statutory authorities have conducted investigations in relation to alleged non-compliance with certain environmental laws and regulations, and the matter is pending before the Courts and relevant statutory authorities.
    In the previous year, Maharashtra Pollution Control Board (MPCB) had directed the Company to stop manufacturing activities at its Taloja plant on grounds of not adhering to conditions stipulated in the relevant Consent to Operate. Subsequently, pursuant to an order of the Honourable Bombay High Court, MPCB granted permission on 29 June 2022 to re-start manufacturing activities at the plant.
    Separately, the National Green Tribunal ('NGT') had constituted a committee to make recommendations in this regard. The Committee submitted its reports to NGT, after which the company filed a writ petition in the Hon'ble Bombay High Court, inter alia, seeking to set aside the NGT order. Despite being informed about the pendency of the aforesaid writ before the Hon'ble Bombay High Court, in March 2023, NGT passed an order accepting the committee's reports , which, includes recovery of compensation of Rs. 1745 Lakhs from the Company for non-compliance with environmental laws and regulations. The Hon'ble Bombay High Court, has stayed the said order passed by NGT.
    Based on the advice of external legal counsel, the Company believes it has a good case on merits in these matters, and the Company is taking necessary steps, including legal measures, to defend itself. Accordingly, no provision is required in the financial results in this respect.
  4. In connection with the closure direction issued by Gujarat Pollution Control Board (GPCB) for the Company's Panoli plant, the Company has submitted the clarifications sought by GPCB. After considering the clarifications provided by the Company, GPCB has, vide its order dated August 5, 2023, revoked for a period of 3 months, its closure direction issued on July 22,2023 and the Company's Panoli facility continues to operate as normal.
  5. The figures for the previous periods have been regrouped wherever necessary to conform to the current period presentation.

For HIKAL LTD

Jai

Digitally signed

by Jai Vishwanath

Vishwanat Hiremath

Date: 2023.11.02

h Hiremath 13:49:14 +05'30'

Place

:

Mumbai

Jai Hiremath

Date

:

2 November 2023

Executive Chairman

DIN: 00062203

HIKAL LIMITED

Regd. Office : 717/718, Maker Chamber V, Nariman Point, Mumbai - 400 021.

Phone : +91-22-62770299

CIN : L24200MH1988PTC048028, E Mail : info@hikal.com , Website : www.hikal.com

Just the right chemistry

Standalone segment wise revenue, results, assets and liabilities

for the quarter and half year ended 30 September 2023

(Rs in Lakhs)

Standalone

Particulars

Quarter ended

Half year ended

Year ended

30-Sep-23

30-Jun-23

30-Sep-22

30-Sep-23

30-Sep-22

31-Mar-23

Unaudited

Unaudited

Unaudited

Unaudited

Unaudited

Audited

1. Segment revenue

a) Pharmaceuticals

27,032

22,487

28,989

49,519

51,418

111,518

b) Crop protection

16,456

16,318

26,886

32,774

42,336

90,785

Total

43,488

38,805

55,875

82,293

93,754

202,303

Less: Inter segment revenue

-

-

-

-

-

-

Revenue from operations

43,488

38,805

55,875

82,293

93,754

202,303

2. Segment results

a) Pharmaceuticals

1,176

982

1,057

2,158

238

6,495

b) Crop protection

2,183

1,706

3,530

3,889

4,557

10,325

Total

3,359

2,688

4,587

6,047

4,795

16,820

Less :

i) Finance cost

1,308

1,379

1,080

2,687

2,209

4,810

ii) Other un-allocable expenditure

402

401

270

803

596

1,670

Add:

i) Other un-allocable income

32

57

40

89

102

196

Profit before tax

1,681

965

3,277

2,646

2,092

10,536

3. Segment assets

a) Pharmaceuticals

129,728

124,549

121,278

129,728

121,278

124,353

b) Crop protection

96,056

101,720

94,426

96,056

94,426

97,629

c) Unallocable

13,290

14,467

16,195

13,290

16,195

16,564

Total assets

239,074

240,736

231,899

239,074

231,899

238,546

4. Segment liabilities

a) Pharmaceuticals

25,806

22,040

18,337

25,806

18,337

21,653

b) Crop protection

11,976

16,173

19,762

11,976

19,762

18,776

c) Unallocable

86,775

88,504

85,843

86,775

85,843

84,770

Total liabilities

124,557

126,717

123,942

124,557

123,942

125,199

For HIKAL LTD

Jai

Digitally signed

by Jai

Vishwana Vishwanath

th

Hiremath

Date: 2023.11.02

Hiremath 13:49:40 +05'30'

Jai Hiremath

Place

: Mumbai

Executive Chairman

Date

: 2 November 2023

DIN: 00062203

HIKAL LIMITED

Regd. Office : 717/718, Maker Chamber V, Nariman Point, Mumbai - 400 021.

Phone : +91-22-62770299

CIN : L24200MH1988PTC048028, E Mail : info@hikal.com , Website : www.hikal.com

Just the right chemistry

Standalone Balance sheet as at 30 September 2023

(Rs in lakhs)

Particulars

As at

As at

30 September 2023

31 March 2023

Unaudited

Audited

ASSETS

Non-current assets

Property, plant and equipment

85,581

88,531

Capital work-in-progress

50,634

40,208

Right of use assets

6,231

6,288

Other intangible assets

1,131

12

Intangible assets under development

-

1,008

143,577

136,047

Financial assets:

Investments

533

531

Loans

27

30

Others

1,623

1,867

Income tax assets (net)

202

202

Other non-current assets

3,721

5,970

Total non-current assets

149,683

144,647

Current assets

Inventories

36,769

31,674

Financial assets:

Trade receivables

39,415

44,178

Cash and cash equivalents

1,083

2,671

Bank balances other than cash and cash equivalents

2,515

3,282

Loans

39

24

Others

1,250

1,671

Other current assets

8,320

10,399

Total current assets

89,391

93,899

Total assets

239,074

238,546

EQUITY AND LIABILITIES

Equity

Equity share capital

2,466

2,466

Other equity

112,051

110,881

Total equity

114,517

113,347

Liabilities

Non-current liabilities

Financial Liabilities

Borrowings

44,423

48,988

Provisions

2,600

2,422

Deferred tax liabilities (net)

3,247

3,271

Other non current liabilities

4,364

4,364

Total non-current liabilities

54,634

59,045

Current liabilities

Financial liabilities

Borrowings

32,920

25,808

Lease liability

3

23

Trade payables

- Total outstanding dues of Micro Enterprises and Small

5,461

5,047

Enterprises

- Total outstanding dues of creditors other than Micro

24,119

26,278

Enterprises and Small Enterprises

Other financial liabilities

4,150

4,881

Other current liabilities

2,277

2,369

Provisions

351

351

Current tax liabilities (net)

642

1,397

Total current liabilities

69,923

66,154

Total liabilities

124,557

125,199

Total equity and liabilities

239,074

238,546

For HIKAL LTD

Jai

Digitally signed

by Jai

Vishwanat

Vishwanath

Hiremath

h Hiremath Date: 2023.11.02

13:50:00 +05'30'

Place

: Mumbai

Jai Hiremath

Date

: 2 November 2023

Executive Chairman

DIN: 00062203

HIKAL LIMITED

Regd. Office : 717/718, Maker Chamber V, Nariman Point, Mumbai - 400 021.

Phone : +91-22-62770299

CIN : L24200MH1988PTC048028, E Mail : info@hikal.com , Website : www.hikal.com

Just the right chemistry

Standalone Cash flow statement for the half year ended 30 September 2023

(Rs in lakhs)

Particulars

Half year ended 30

Half year ended 30

September 2023

September 2022

Unaudited

Unaudited

A. Cash flow from operating activities

Profit before tax

2,646

2,092

Adjustments:

Depreciation and amortisation expenses

5,630

5,391

Finance costs

2,687

2,209

Interest income

(89)

(102)

Loss/(gain) on sale of property, plant and equipment

(16)

18

Sundry balances written off/(back)

(18)

(45)

Provision for doubtful debts/advances

317

185

Provision / write off of inventories

340

(267)

Profit on sale of investment

(37)

-

Unrealised foreign exchange gain

(134)

(399)

8,680

6,990

Operating cash flow before working capital changes

11,326

9,082

Decrease/(Increase) in trade receivables

4,565

(4,898)

Decrease in loans and advances and other assets

3,665

2,509

(Increase) in inventories

(5,435)

(197)

(Decrease)/Increase in trade payables

(1,708)

4,529

(Decrease) in provisions and other liabilities

(751)

(1,722)

336

221

Cash generated from operations

11,662

9,303

Income tax paid

(1,430)

(1,500)

Net cash flows generated from operating activities

10,232

7,803

B. Cash flow from investing activities

Purchase of property, plant and equipment and intangible assets

(11,654)

(14,795)

Proceeds from sale of property, plant and equipment

21

7

Proceeds from sale of investment

37

1,027

Interest received

106

81

Decrease/(Increase)in other bank balances (includes margin money account)

1,011

(90)

Net cash flows (used in) investing activities

(10,479)

(13,770)

  1. Cash flow from financing activities

Proceeds from long-term borrowings

-

9,500

Repayment of long-term borrowings

(4,462)

(5,438)

Repayments/proceeds of short-term borrowings (net)

6,989

5,738

Finance costs paid (including interest on lease liability )

(3,847)

(2,992)

Payment of lease liability

(20)

(17)

Dividend paid on equity shares

(1)

(493)

Net cash flows from/(used in) financing activities

(1,341)

6,298

Net (Decrease)/ increase in cash and cash equivalents

(1,588)

331

Cash and cash equivalents at the beginning of the period

2,671

1,144

Cash and cash equivalents at the end of the period

1,083

1,475

Cash on hand

15

9

Balances with banks

- Current accounts

1,025

1,109

- Exchange Earners Foreign Currency accounts

-

320

- Deposits accounts (demand deposits and deposits having original maturity of 3

43

37

months or less)

Balance as per statement of cash flows

1,083

1,475

For HIKAL LTD

Jai

Digitally signed by

Jai Vishwanath

Vishwanath Hiremath

Hiremath

Date: 2023.11.02

13:50:18 +05'30'

Place

: Mumbai

Jai Hiremath

Date

: 2 November 2023

Executive Chairman

DIN: 00062203

HIKAL LTD

Regd. Office : 717/718, Maker Chamber V, Nariman Point, Mumbai - 400 021.

Phone : +91-22-62770299

CIN : L24200MH1988PTC048028, E Mail : info@hikal.com , Website : www.hikal.com

Just the right chemistry

12th Floor, The Ruby

29 Senapati Bapat Marg

Chartered Accountants

Dadar (West)

Mumbai - 400 028, India

Tel: +91 22 6819 8000

Independent Auditor's Review Report on the Quarterly and Year to Date Unaudited Consolidated Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended

Review Report to

The Board of Directors

Hikal Limited

  1. We have reviewed the accompanying Statement of Unaudited Consolidated Financial Results of Hikal Limited (the "Holding Company") and its subsidiaries (the Holding Company and its subsidiaries together referred to as "the Group"), for the quarter ended September 30, 2023 and year to date from April 1, 2023 to September 30, 2023 (the "Statement") attached herewith, being submitted by the Holding Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the "Listing Regulations").
  2. The Holding Company's Management is responsible for the preparation of the Statement in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34, (Ind AS 34) "Interim Financial Reporting" prescribed under Section 133 of the Companies Act, 2013 as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. The Statement has been approved by the Holding Company's Board of Directors. Our responsibility is to express a conclusion on the Statement based on our review.
  3. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Institute of Chartered Accountants of India. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement is free of material misstatement. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
    We also performed procedures in accordance with the Circular No. CIR/CFD/CMD1/44/2019 dated March 29, 2019 issued by the Securities and Exchange Board of India under Regulation 33(8) of the Listing Regulations, to the extent applicable.
  4. The Statement includes the results of the following entities:
    1. Hikal Limited, India, Holding Company
    2. Acoris Research Limited, India, Subsidiary Company
    3. Hikal, LLC, USA, Subsidiary Company
  6. Based on our review conducted and procedures performed as stated in paragraph 3 above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with recognition and measurement principles laid down in the aforesaid Indian Accounting Standards ('Ind AS') specified under Section 133 of the Companies Act, 2013, as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of the Listing Regulations, including the manner in which it is to be disclosed, or that it contains any material misstatement.

S R B C & CO LLP, a Limited Liability Partnership with LLP Identity No. AAB-4318

Regd. OfÕce : 22, Camac Street, Block 'B', 3rd Floor, Kolkata-700 016

Chartered Accountants

Hikal Limited

  1. We draw attention to note 3 and note 4 to the Statement, as regards the ongoing investigations / actions by statutory authorities in relation to alleged non-compliance with certain environmental laws and regulations, and the litigation in respect of the matter referred to in note 3, the outcome of which is presently uncertain. Our conclusion is not modified in respect of these matters.
  2. The accompanying Statement includes the unaudited interim financial results and other unaudited financial information, in respect of two subsidiaries, whose interim financial results and other financial information reflect total assets of Rs. 13 Lakhs as at September 30, 2023, and total revenues of Rs. 118 Lakhs and Rs. 204 Lakhs, total net profit after tax of Rs. 5 Lakhs and Rs. 11 Lakhs, and a total comprehensive income of Rs. 5 Lakhs and Rs. 11 Lakhs, each for the quarter and period ended on September 30, 2023 respectively, and net cash inflows of Rs. 11 Lakhs for the period from April 1, 2023 to September 30, 2023 which have not been reviewed or audited by any auditor. These unaudited financial results have been approved and furnished to us by the Management and our conclusion on the Statement, in so far as it relates to the affairs of these subsidiaries, is based solely on such unaudited interim financial results and other unaudited financial information. According to the information and explanations given to us by the Management, these unaudited interim financial results are not material to the Group. Our conclusion on the Statement is not modified in this regard.

For S R B C & CO LLP

Chartered Accountants

ICAI Firm registration number: 324982E/E300003

Vinayak Shriram

Pujare

Digitally signed by Vinayak Shriram Pujare

DN: cn=Vinayak Shriram Pujare, c=IN, o=Personal, email=vinayak.pujare@srb.in Date: 2023.11.02 14:07:05 +05'30'

per Vinayak Pujare Partner

Membership No.: 101143

UDIN: 23101143BGYWPP5451

Place: Mumbai

Date: November 02, 2023

Page 2 of 2

Statement of unaudited consolidated financial results for the quarter and half year ended 30 September 2023

Rs. In Lakhs (Except for earning per share)

Consolidated

Particulars

Quarter ended

Half year ended

Year ended

30-Sep-23

30-Jun-23

30-Sep-22

30-Sep-23

30-Sep-22

31-Mar-23

Unaudited

Unaudited

Unaudited

Unaudited

Unaudited

Audited

Income

Revenue from operations

Sale of products and services

43,123

38,614

55,703

81,737

92,835

200,470

Other operating revenue

365

191

172

556

919

1,833

Total revenue from operations

43,488

38,805

55,875

82,293

93,754

202,303

Other income

99

94

125

193

452

541

Total income

43,587

38,899

56,000

82,486

94,206

202,844

Expenses

Cost of materials consumed

21,230

21,707

31,292

42,937

55,070

112,159

Changes in inventories of finished goods and work-in-progress

82

(4,660)

474

(4,578)

(666)

(1,456)

Employee benefits expense

6,181

5,963

5,811

12,144

10,132

22,244

Finance costs

1,308

1,379

1,080

2,687

2,209

4,810

Depreciation and amortisation expenses

2,857

2,773

2,741

5,630

5,391

10,901

Other expenses

10,243

10,766

11,325

21,009

19,970

43,649

Total expenses

41,901

37,928

52,723

79,829

92,106

192,307

Profit before tax

1,686

971

3,277

2,657

2,100

10,537

Tax expense:

-Current tax

450

272

535

722

535

3,048

-Deferred tax

(21)

7

258

(14)

(33)

(350)

Total tax expense

429

279

793

708

502

2,698

Profit for the period (Attributable to equity holders of parent)

1,257

692

2,484

1,949

1,598

7,839

Other comprehensive income (OCI)

Items that will not be reclassified to statement of profit and loss

(19)

(20)

40

(39)

80

(76)

Income tax relating to item that will not be reclassified to statement of profit and

5

5

(10)

10

(20)

20

loss

Other comprehensive income/(loss) for the year (net of income tax)

(Attributable to equity holders of parent)

(14)

(15)

30

(29)

60

(56)

Total comprehensive income (Attributable to equity holders of parent)

1,243

677

2,514

1,920

1,658

7,783

Paid-up equity share capital (Face value of Rs 2/- each)

2,466

2,466

2,466

2,466

2,466

2,466

Other equity

110,881

Earnings per share (Face Value of Rs 2/- each) (Not annualised for quarters)

- Basic

1.02

0.56

2.01

1.58

1.30

6.36

- Diluted

1.02

0.56

2.01

1.58

1.30

6.36

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Hikal Limited published this content on 02 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 November 2023 10:36:29 UTC.