Board of Directors & Key Managerial Personnel
Dr. J.S. Yadav Chairman & Independent Director
Sri. G. Jayaraman Independent Director
Sri. Y.S.R. Venkata Rao Managing Director
Sri. K.V. Suryaprakash Rao Independent Director
Dr. A.R. Prasad Director
Smt. Y. Lalithya Poorna Director
Mr. Y.V. Prashanth Executive Director (w.e.f. 10 November 2022)
Ms. K. Uma Kumari Chief Financial Officer
Mr. Siddharth Dubey Company Secretary
Statutory Auditors
M/s. G. Nagendrasundram & Co.
Chartered Accountants
Internal Auditor
Ramakrishna & Associates
Chartered Accountants
Secretarial Auditor
CS B. Venkatesh Babu
Practising Company Secretary
Bankers
State Bank of India
SME Yellareddy Guda Branch,
st
8-3-961/B, 1 Floor, Srinagar Colony Main Rd,
Yella Reddy Guda, Hyderabad, Telangana 500073
Registered Office & Unit - I
Plot B-5, Block III, Industrial Development Area,
Uppal, Hyderabad - 500 039, Telangana, India
Unit - II
Sy.No. 299 to 302, Dommara Pochampally Village,
Qutubullapur Mandal, Medchal District - 500 043, Telangana, India
Unit - III
Plot No. 36, 37 & 38, JN Pharma City,
Visakhapatnam - 531 019, Andhra Pradesh, India
Registrar &Share Transfer Agent
M/s. Cameo Corporate Services Limited
Subramanian Building, No.1, Club House Road,
Chennai - 600 002.
ANNUAL REPORT 2022 -2023
CIN : L27109TG1968PLC001196
Contents
S.
No.
Particulars
Page
No.
th
1. Notice of the 55 Annual General Meeting 1
2. Board’s Report 13
3. Secretarial Audit Report 24
4. Secretarial Compliance Report 28
5. Annual Report on CSR Activities 32
6. Management Discussion and Analysis 35
7. Report on Corporate Governance 37
8. Independent Auditor’s Report 52
9. Audited Financial Statements for FY 2022-23 including Notes to Financial Statements 62
1
TH
NOTICE OF THE 55 ANNUAL GENERAL MEETING
th
Notice is hereby given that the 55 Annual General Meeting of M/s. Alkali Metals Limited will be
held on Monday the 21 August, 2023 at 11:00 AM through Video Conference(VC)/Other Audio Visual
Means(OAVM) to transact the following business:
ORDINARY BUSINESS
1. To receive, consider and adopt the Audited Financial Statements as on 31March, 2023 together with
the reports of the Directors and Auditors thereon.
2. To declare dividend for the financial year 2022-23.
3. To elect a Director in place of Dr. A.R. Prasad (DIN:08765436) who retires by rotation and is eligible
for re-appointment.
SPECIAL BUSINESS
4. To consider and if thought fit, to pass with or without modification(s), the following resolution as a
Special Resolution:
“RESOLVED THAT pursuant to the provisions of Sections 149, 150, 152 and any other applicable
provisions of the Companies Act, 2013 and the Companies (Appointment and Qualification of
Directors) Rules, 2014 (including any statutory modification(s) or re enactment thereof for the time
being in force) read with Schedule IV to the Companies Act and applicable regulations of the SEBI
(LODR) Regulations, 2015 (as amended from time to time), Sri K.V. Suryaprakash Rao (DIN:
06934146), Independent Director of the Company who has submitted a declaration that he meets the
criteria for independence as provided in the Companies Act and Listing Regulations and who is
eligible for re-appointment, be and is hereby re-appointed as an Independent Director of the Company
to hold office for a second term of five consecutive years with effect from 16 October 2023 to
15 October, 2028.”
5. To consider and if though fit, to pass with or without modification(s) the following resolution as a
Special Resolution:
“RESOLVED THAT the consent of the members be and is hereby accorded to re-appoint
Sri. Y.S.R. Venkata Rao as Managing Director in accordance with the provisions of Section 196, 197
and 203 read with Schedule V and all other applicable provisions of Companies Act, 2013 and the
Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 (including any
statutory modifications or re-enactment thereof for the time being in force), for a further period of
3 years with effect from 1 May, 2024 on the following remuneration:
Basic Pay : ` 7,50,000 per month
H.R.A : ` 2,50,000 per month
Commission : 5% on profits (calculated as per Section 198 of Companies Act, 2013)
Medical benefit : Medi-claim policy for `5,00,000
Insurance : Accidental Insurance for `25,00,000
Leave Travel : One month’s basic pay per year which can be accumulated upto 2 years
Vehicle : Company car with a driver for official use
Telephone & Email : Free Cell and email service for official use
Gratuity : Half month’s basic pay for each completed year of service
RESOLVED FURTHER THAT the Board be and is hereby authorized to provide an annual increment
at the rate of 10% p.a. on such remuneration.
RESOLVED FURTHER THAT the above remuneration will be paid as the minimum remuneration
and in any case if the amount exceeds the limits specified in Schedule V, Company may obtain the
approval in compliance with the provisions of the Companies Act, 2013.”
By order of the Board of Directors
For Alkali Metals Limited
Y.S.R. Venkata Rao
Managing Director
DIN: 00345524
Place : Hyderabad
Date : 27 May, 2023
2
NOTES
1. As per the guidelines issued by the Ministry of Corporate Affairs (MCA) vide General Circular No.
10/2022, dated 28 December, 2022, it has been decided to allow companies whose AGM is due to be
held in the year 2023, to conduct their AGM on or before 30 September 2023 through video
conferencing (VC) or other audio visual means (OAVM) Video in accordance of the requirements laid
down in the earlier Circulars, namely Circular No. 20/2020 dated 5 May 2020 and General Circular
th
No. 02/2022 dated 5 May 2022. Thereby, the ensuing 55 AGM will be held through video
conferencing (VC) or other audio visual means (OAVM). The members can attend and participate in
the ensuing AGM through VC/OAVM.
2. Pursuant to the provisions of Section 108 of the Companies Act, 2013 read with Rule 20 of the
Companies (Management and Administration) Rules, 2014 (as amended) and Regulation 44 of SEBI
(Listing Obligations & Disclosure Requirements) Regulations 2015 (as amended), and MCA
Circulars dated 08 April 2020, 13 April 2020 and 5 May 2020 the Company is providing facility of
th
remote e-voting to its Members in respect of the business to be transacted at the 55 AGM. For this
purpose, the Company has entered into an agreement with Central Depository Services (India)
Limited (CDSL) for facilitating voting through electronic means, as the authorized e-Voting’s
agency. The facility of casting votes by a member using remote e-voting as well as the e-voting system
th
on the date of the 55 AGM will be provided by CDSL.
th
3. The Members can join the 55 AGM in the VC/OAVM mode 30 minutes before the Meeting and also
after the scheduled time of the commencement of the Meeting by following the procedure mentioned
th
in the Notice. The facility of participation at the 55 AGM through VC/OAVM will be made available
to at least 1000 members on first come first served basis. This will not include large Shareholders
(Shareholders holding 2% or more shareholding), Promoters, Institutional Investors, Directors, Key
Managerial Personnel, the Chairpersons of the Audit Committee, Nomination and Remuneration
Committee and Stakeholders Relationship Committee, Auditors etc. who are allowed to attend the
AGM without restriction on account of first come first served basis.
4. The attendance of the Members attending the AGM through VC/OAVM will be counted for the
purpose of ascertaining the quorum under Section 103 of the Companies Act, 2013.
5. Pursuant to MCA Circular No. 14/2020 dated 8 April 2020, the facility to appoint proxy to attend and
cast vote for the members is not available for this AGM. However, in pursuance of Section 112 and
Section 113 of the Companies Act, 2013, representatives of the members such as the President of
India or the Governor of a State or body corporate can attend the AGM through VC/OAVM and cast
their votes through e-voting.
6. In line with the Ministry of Corporate Affairs (MCA) Circular No. 17/2020 dated 13 April 2020, the
Notice calling the AGM has been uploaded on the website of the Company at
https://alkalimetals.com/ . The Notice can also be accessed from the websites of the Stock Exchanges
i.e. BSE Limited and National Stock Exchange of India Limited at www.bseindia.com and
www.nseindia.com respectively. The AGM Notice is also disseminated on the website of CDSL
(agency for providing the Remote e-Voting facility and e-voting system during the AGM)
i.e.www.evotingindia.com.
7. The Register of members and transfer books of the company will remain closed from Thursday the
17August 2023 to Monday the 21 August 2023 both days inclusive.
13
8. Members, who hold shares in electronic / Demat form are requested to furnish the change of
address, details of their bank accounts, viz, name of the bank, full address of the branch, account
no. etc., to their respective Depository Participants and who hold shares in physical form to the
Company’s Registrars and Transfer Agents M/s. Cameo Corporate Services Ltd., Subramanian
Building, No.1, Club House Road, Chennai – 600002 so as to enable the Company to incorporate
the bank details on the dividend warrants.
9. Pursuant to Section 72 of the Companies Act, 2013 and the Rules made there under the
Members holding shares in single name may, at any time, nominate in form SH-13, any
person as his/her nominee to whom the securities shall vest in the event of his/ her death.
Nomination would help the nominees to get the shares transmitted in their favor without hassles.
Members desirous of making any cancellation/variation in the said nomination can do so in SH-14.
10. Members holding shares in identical order of names in more than one folio are requested to write
to the company’s Registrars & Transfer Agents enclosing their share certificates to enable
consolidation of their shareholdings in one folio. As per the amended Provisions based on the PAN, all
different folios of the same PAN will be treated as one folio.
11. The Securities and Exchange Board of India (SEBI) has mandated the submission of Permanent
Account Number (PAN) by every participant in securities market. Members holding shares in
electronic form are, therefore, requested to submit the PAN to their Depository Participants with
whom they are maintaining their Demat accounts. Members holding shares in physical form can
submit their PAN details to the Registrars and Transfer Agents of Company.
12. Pursuant to SEBI Circular No. SEBI/HO/CFD/CMD/CIR/P/2020/242 dated 9 December 2020,
under Regulation 44 of Securities and Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015, listed entities are required to provide remote e-voting facility to its
shareholders, in respect of all shareholders’ resolutions. However, it has been observed that the
participation by the public non-institutional shareholders/retail shareholders is at a negligible level.
Currently, there are multiple e-voting service providers (ESPs) providing e-voting facility to listed
entities in India. This necessitates registration on various ESPs and maintenance of multiple user IDs
and passwords by the shareholders.
In order to increase the efficiency of the voting process, pursuant to a public consultation, it has been
decided to enable e-voting to all the demat account holders, by way of a single login credential,
through their demat accounts/ websites of Depositories/ Depository Participants. Demat account
holders would be able to cast their vote without having to register again with the ESPs, thereby, not
only facilitating seamless authentication but also enhancing ease and convenience of participating in
e-voting process.
In compliance with provisions of Section 108 of the Companies Act, 2013 and Rule 20 of the
Companies (Management and Administration) Rules, 2014 as amended from time to time,
Regulation 44 of the SEBI (Listing Obligations and Disclosure Requirement) Regulations 2015 and
Secretarial Standard on General Meetings (SS2) issued by the Institute of Company Secretaries of
India, the Company is pleased to provide the members with facility to exercise their right to vote
at the Annual General Meeting (AGM) by electronic means and the business may be transacted
through remote e-voting Services provided by Central Depository Services (India) Limited (CDSL).
4
The e-voting period commences on Friday the 18 August 2023 (09:00 A.M.) and ends on Sunday
20 August 2023 (05:00 P.M). During this period shareholders of the Company, holding shares as
on cut-off date of Thursday the 16 August 2023 either in physical form or in Dematerialized
form, may cast their vote electronically. The e-voting portal shall be disabled by CDSL for voting
thereafter. Once the vote on a resolution is cast by the shareholder, the shareholder shall not be
allowed to change it subsequently. The voting rights of shareholders shall be in proportion to their
shares of the paid up equity share capital of the Company. A member who has cast his/ her vote by
electronic means are entitle to attend the AGM but not entitled to vote again at the AGM.
CS B. Venkatesh Babu, Company Secretary in Practice (F6708) has been appointed as the scrutinizer
to scrutinize the remote e-voting process. The Scrutinizer shall, immediately after the conclusion
of voting at the general meeting, will first count the votes cast at the meeting and thereafter
unblock the votes cast through remote e-voting in the presence of at least two witnesses not in the
employment of the Company and he will submit his report within the period not exceeding
three working days from the conclusion of e-voting. The Chairman will declare the results on or
after the AGM of the Company accordingly and will also be placed at the company website and
also forward the same to the stock exchanges where the shares has been listed.
THE INSTRUCTIONS FOR SHAREHOLDERS FOR REMOTE E-VOTING ARE AS UNDER:
13. i. Shareholders who have already voted prior to the meeting date would not be entitled to vote at
the meeting venue.
ii. In terms of SEBI circular no. SEBI/HO/CFD/CMD/CIR/P/2020/242 dated 9 December 2020
on e-Voting facility provided by Listed Companies, Individual shareholders holding securities
in demat mode are allowed to vote through their demat account maintained with Depositories
and Depository Participants. Shareholders are advised to update their mobile number and email
Id in their demat accounts in order to access e-Voting facility.
Pursuant to above said SEBI Circular, Login method for e-Voting and joining virtual meetings
for Individual shareholders holding securities in Demat mode CDSL/NSDL is given below:
Login Method
a) Users who have opted for CDSL Easi / Easiest facility, can login through their
existing user id and password. Option will be made available to reach e-Voting
page without any further authentication. The users to login to Easi / Easiest are
requested to visit CDSL website www.cdslindia.com and click on login icon&
New System Myeasi Tab.
b) After successful login the Easi / Easiest user will be able to see the e-Voting option
for eligible companies where the e-voting is in progress as per the information
provided by company. On clicking the e-voting option, the user will be able to see
e-Voting page of the e-Voting service provider for casting your vote during the
remote e-Voting period or joining virtual meeting & voting during the meeting.
Additionally, there is also links provided to access the system of all e-Voting
Service Providers, so that the user can visit the e-Voting service providers’ website
directly.
Type of
shareholders
Individual
Shareholders
holding
securities
in Demat
mode with
CDSL
Depository
5
c) If the user is not registered for Easi/Easiest, option to register is available at CDSL
website www.cdslindia.com and click on login & New System Myeasi Tab and
then click on registration option.
d) Alternatively, the user can directly access e-Voting page by providing Demat
Account Number and PAN No. from a e-Voting link available on
www.cdslindia.com home page. The system will authenticate the user by sending
OTP on registered Mobile & Email as recorded in the Demat Account. After
successful authentication, user will be able to see the e-Voting option where the e-
voting is in progress and also able to directly access the system of all e-Voting
Service Providers.
a) If you are already registered for NSDL IDeAS facility, please visit the e-Services
website of NSDL. Open web browser by typing the following URL:
https://eservices.nsdl.com either on a Personal Computer or on a mobile. Once
the home page of e-Services is launched, click on the “Beneficial Owner” icon
under “Login” which is available under ‘IDeAS’ section. A new screen will open.
You will have to enter your User ID and Password. 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 provider name and you will be re-directed to e-Voting service
provider website for casting your vote during the remote e-Voting period or
joining virtual meeting & voting during the meeting.
b) If the user is not registered for IDeAS e-Services, option to register is available at
https://eservices.nsdl.com. Select “Register Online for IDeAS “Portal or click
at https://eservices.nsdl.com/SecureWeb/IdeasDirectReg.jsp
c) Visit the e-Voting website of NSDL. Open web browser by typing the following
URL: https://www.evoting.nsdl.com/ either on a Personal Computer or on a
mobile. Once the home page of e-Voting system is launched, click on the icon
“Login” which is available under ‘Shareholder/Member’ section. A new screen
will open. You will have to enter your User ID (i.e. your sixteen digit demat
account number hold with NSDL), Password/OTP and a Verification Code as
shown on the screen. After successful authentication, you will be redirected to
NSDL Depository site wherein you can see e-Voting page. Click on company
name or e-Voting service provider 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
You can also login using the login credentials of your demat account through your
Depository Participant registered with NSDL/CDSL for e-Voting facility. After
Successful login, you will be able to see e-Voting option. Once you click on e-
Voting option, you will be redirected to NSDL/CDSL Depository site after
successful authentication, wherein you can see e-Voting feature. Click on
company name or e-Voting service provider 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.
Individual
Shareholders
holding
securities
in demat
mode with
NSDL
Depository
Individual
Shareholders
(holding
securities in
demat mode)
login through
their Depository
Participants
(DP)
6
Individual Shareholders holding
securities in Demat mode with CDSL
Individual Shareholders holding
securities in Demat mode with NSDL
Members facing any technical issue in login can contact
CDSL helpdesk by sending a request at
contact at toll free no. 1800 22 55 33
Members facing any technical issue in login can contact
NSDL helpdesk by sending a request at [email protected]
or
call at toll free no.: 1800 1020 990 and 1800 22 44 30
Login Type
Helpdesk Details
iii. Access through CDSL e-Voting system in case of shareholders holding shares in physical mode and
non-individual shareholders in demat mode.
Login method for e-Voting and joining virtual meetings for Physical shareholders and
shareholders other than individual holding in Demat form.
a) The shareholders should log on to the e-voting website www.evotingindia.com.
b) Click on “Shareholders” module.
c) Now enter your User ID
- For CDSL: 16 digits beneficiary ID,
- For NSDL: 8 Character DP ID followed by 8 Digits Client ID,
- Shareholders holding shares in Physical Form should enter Folio Number registered with the
Company.
d) Next enter the Image Verification as displayed and Click on Login.
If you are holding shares in demat form and had logged on to www.evotingindia.com and voted
on an earlier e-voting of any company, then your existing password is to be used.
e) If you are a first-time user follow the steps given below:
PAN
Enter your 10digit alpha-numeric *PAN issued by Income Tax Department
(Applicable for both demat shareholders as well as physical shareholders)
• Shareholders who have not updated their PAN with the
Company/Depository Participant are requested to use the sequence
number sent by Company/RTA or contact Company/RTA.
Enter the Dividend Bank Details or Date of Birth (in dd/mm/yyyy format) as
recorded in your demat account or in the company records in order to login.
• If both the details are not recorded with the depository or company, please
enter the member id / folio number in the Dividend Bank details field.
Dividend
Bank Details
OR
Date of Birth
(DOB)
Mode
For Physical shareholders and other than individual
shareholders holding shares in Demat.
Important note: Members who are unable to retrieve User ID/ Password are advised to use Forget User ID
and Forget Password option available at abovementioned website.
Helpdesk for Individual Shareholders holding securities in demat mode for any technical issues
related to login through Depository i.e. CDSL and NSDL
7
f) After entering these details appropriately, click on “SUBMIT” tab.
g) Shareholders holding shares in physical form will then directly reach the Company selection
screen. However, shareholders holding shares in demat form will now reach ‘Password Creation’
menu wherein they are required to mandatorily enter their login password in the new password
field. Kindly note that this password is to be also used by the demat holders for voting for
resolutions of any other company on which they are eligible to vote, provided that company opts for
e-voting through CDSL platform. It is strongly recommended not to share your password with any
other person and take utmost care to keep your password confidential.
h) For shareholders holding shares in physical form, the details can be used only for e-voting on the
resolutions contained in this Notice.
i) Click on the EVSN for the relevant <Company Name> on which you choose to vote.
j) On the voting page, you will see “RESOLUTION DESCRIPTION” and against the same the
option “YES/NO” for voting. Select the option YES or NO as desired. The option YES implies that
you assent to the Resolution and option NO implies that you dissent to the Resolution.
k) Click on the “RESOLUTIONS FILE LINK” if you wish to view the entire Resolution details.
l) After selecting the resolution, you have decided to vote on, click on “SUBMIT”. A confirmation
box will be displayed. If you wish to confirm your vote, click on “OK”, else to change your vote,
click on “CANCEL” and accordingly modify your vote.
m) Once you “CONFIRM” your vote on the resolution, you will not be allowed to modify your vote.
n) You can also take a print of the votes cast by clicking on “Click here to print” option on the Voting
page.
o) If a demat account holder has forgotten the login password then Enter the User ID and the image
verification code and click on Forgot Password & enter the details as prompted by the system.
p) There is also an optional provision to upload BR/POA if any uploaded, which will be made
available to scrutinizer for verification.
iv. Additional Facility for Non – Individual Shareholders and Custodians –For Remote Voting only.
a) Non-Individual shareholders (i.e. other than Individuals, HUF, NRI etc.) and Custodians are
required to log on to www.evotingindia.com and register themselves in the “Corporates” module.
b) A scanned copy of the Registration Form bearing the stamp and sign of the entity should be emailed
c) After receiving the login details a Compliance User should be created using the admin login and
password. The Compliance User would be able to link the account(s) for which they wish to vote
on.
d) The list of accounts linked in the login will be mapped automatically & can be delink in case of any
wrong mapping.
e) It is Mandatory that, a scanned copy of the Board Resolution and Power of Attorney (POA) which
they have issued in favour of the Custodian, if any, should be uploaded in PDF format in the system
for the scrutinizer to verify the same.
f) Alternatively Non Individual shareholders are required mandatory to send the relevant Board
Resolution/ Authority letter etc. together with attested specimen signature of the duly authorized
signatory who are authorized to vote, to the Scrutinizer and to the Company at the email address
viz; [email protected] , if they have voted from individual tab & not uploaded same
in the CDSL e-voting system for the scrutinizer to verify the same.
8
INSTRUCTIONS FOR SHAREHOLDERS ATTENDING THE AGM THROUGH VC/OAVM &
E-VOTING DURING MEETING ARE AS UNDER:
14. i. The procedure for attending meeting & e-Voting on the day of the AGM is same as the instructions
mentioned above for e-voting.
ii. The link for VC/OAVM to attend meeting will be available where the EVSN of Company will be
displayed after successful login as per the instructions mentioned above for e-voting.
iii. Shareholders who have voted through Remote e-Voting will be eligible to attend the meeting.
However, they will not be eligible to vote at the AGM.
iv. Shareholders are encouraged to join the Meeting through Laptops / IPads for better experience.
v. Further shareholders will be required to allow Camera and use Internet with a good speed to avoid
any disturbance during the meeting.
vi. Please note that Participants Connecting from Mobile Devices or Tablets or through Laptop
connecting via Mobile Hotspot may experience Audio/Video loss due to Fluctuation in their
respective network. It is therefore recommended to use Stable Wi-Fi or LAN Connection to mitigate
any kind of aforesaid glitches.
vii. Shareholders who would like to express their views/ask questions during the meeting may register
themselves as a speaker by sending their request in advance at least 3 days prior to meeting by
mentioning their name, demat account number/folio number, email id, mobile number at
viii. Those shareholders who have registered themselves as a speaker will only be allowed to express
their views/ask questions during the meeting.
ix. Only those shareholders, who are present in the AGM through VC/OAVM facility and have not
casted their vote on the Resolutions through remote e-Voting and are otherwise not barred from
doing so, shall be eligible to vote through e-Voting system available during the AGM.
x. If any Votes are cast by the shareholders through the e-voting available during the AGM and if the
same shareholders have not participated in the meeting through VC/OAVM facility, then the votes
cast by such shareholders may be considered invalid as the facility of e-voting during the meeting
is available only to the shareholders attending the meeting.
PROCESS FOR THOSE SHAREHOLDERS WHOSE EMAIL/MOBILE NO. ARE NOT
REGISTERED WITH THE COMPANY / DEPOSITORIES.
15. i. For Physical shareholders - Please provide necessary details like Folio No., Name of shareholder,
scanned copy of the share certificate (front and back), PAN (self attested scanned copy of PAN
card), AADHAR (self attested scanned copy of Aadhar Card) by email to Company/RTA email id.
ii. For Demat shareholders - Please update your email id & mobile no. with your respective
Depository Participant (DP)
iii. For Individual Demat shareholders – Please update your email id & mobile no. with your
respective Depository Participant (DP) which is mandatory while e-Voting & joining virtual
meetings through Depository.
If you have any queries or issues regarding attending AGM & e-Voting from the CDSL e-Voting System,
you can write an email to helpdesk.evoting@cdslindia.com or contact at toll free no. 1800 22 55 33
All grievances connected with the facility for voting by electronic means may be addressed to Mr.
Rakesh Dalvi, Sr. Manager, (CDSL, ) Central Depository Services (India) Limited, A Wing, 25th
Floor, Marathon Futurex, Mafatlal Mill Compounds, N M Joshi Marg, Lower Parel (East),
Mumbai - 400013 or send an email to [email protected] or call toll free no. 1800
22 55 33.
9
EXPLANATORY STATEMENT PURSUANT TO SECTION 102 OF
THE COMPANIES ACT 2013
Item No. 4
Sri. K.V. Suryaprakash Rao, Independent Additional Director appointed by the Board on 15October 2018
were appointment for a period of 5 years i.e upto 14October 2023. As per the provisions of the Companies
Act, re-appointment for a second term of 5 years will require a special resolution to be passed at a general
meeting.
Based on recommendation of Nomination and Remuneration Committee and in terms of the provisions of
Companies Act and the Listing Regulations the above proposed appointment was recommended by the
Board to be passed as a special resolution as specified in the notice. His brief profile is stated below:
He has around 38 years of experience in the field of promoting Research & Development and academia. He
has been the Head of Research & Development by Industry (RDI) Division and Advisor (Equivalent to
Joint Secretary) in the Department of Scientific and Industrial Research (DSIR) of the Ministry of Science
& Technology. His educational qualification being, M.Tech in Plant Engineering, Management from JNTU
and PG Diploma in Operations Management from IGNOU. He is also a Fellow of the Institution of
Engineers (India) and, Government of India.
Except the Director for his own appointment, none of the Directors and Key Managerial Personnel of the
Company and their relatives is concerned or interested, financially or otherwise, in the resolution set out at
Item No. 4 of the accompanying Notice of the AGM.
Item No.5
Appointment of Sri Y.S.R. Venkata Rao, Managing Director, is valid upto 30 April 2024. As per the
provisions of the Section 196 of the Companies Act 2013, appointment/re-appointment of a person who has
attained the age of 70 years is to be made by passing a special resolution at a General Meeting.
Sri. Y.S.R. Venkata Rao is of the age of 72 years., hence his appointment is being considered in the ensuing
AGM. for the approval of the shareholders by way of Special Resolution.
The Board is of the opinion, that Sri. Y.S.R. Venkata Rao re-appointment as Managing Director will benefit
the Company and his rich experience will boost the next generation to taken up the company into next level.
Except the Proposed Director, Smt. Y. Lalithya Poorna and Mr Y.V. Prashanth none of the Directors and
Key Managerial Personnel of the Company and their relatives is concerned or interested, financially or
otherwise in the said resolution set out in Item no.5 of the accompanying notice of the AGM.
STATEMENT OF PARTICULARS AS PER SCHEDULE V:
A statement containing information required to be provided to the shareholders as per the provisions of
Schedule V of Companies Act, 2013 in respect of re-appointment of Sri. Y.S.R. Venkata Rao, as Managing
Director is given below:
1. GENERAL INFORMATION:
i Nature of industry : Manufacturing of Drug Intermediaries mainly Sodium Derivatives,
Pyridine Derivatives and Fine Chemicals.
ii Date or expected date of commencement of commercial production: Not applicable, as the
Company is an existing Company.
iii In case of new companies, expected date of commencement of activities as per project approved
by financial institutions appearing in the prospectus: Not Applicable
10
(` in Lakhs)
v. Foreign Earnings, investments or collaborations, if any
Particulars 2020-21 2021-22 2022-23
Sales &Other Income 5,556.74 9,130.68 8,937.13
Profit before finance charges, depreciation and taxation 625.54 1,167.44 1,081.96
Finance Charges 254.17 263.13 266.60
Depreciation 334.87 385.87 429.30
Profit/(Loss) before exceptional items and tax 36.50 518.44 386.06
Exceptional & Extraordinary items 14.47 15.03 9.41
Profit/(Loss) before Tax 22.03 503.41 376.66
Taxes including deferred tax and previous years 142.73 155.33 85.37
Net Profit (120.70) 348.08 291.28
Other comprehensive income (net) 29.17 4.70 (9.19)
Total Comprehensive Income (91.53) 352.78 282.09
Particulars 2020-21 2021-22 2022-23
Earnings 2,577.09 5,296.29 5,711.86
Outgo 1,351.69 1,462.68 1,195.05
There is no foreign investment as well as collaboration by the Company.
2. INFORMATION ABOUT THE APPOINTEE:
Sri. Y.S.R. Venkata Rao, B.E.(Mechanical). He joined the Company
during 1977. He played a pivotal role in steering the growth of Alkali
Metals from being a manufacturer of alkali metals to producer of sodium
derivatives, cyclic compounds, fine chemicals, which find wide
application in industries circle. Under the leadership of
Sri. Y.S.R. Venkata Rao, Company Listed its securities in BSE and NSE.
His rich experience in the Industry and relation with the Company will
help to enhance the growth of the Company.
` 108.37 Lakhs per annum for 31.03.2023.
Member of the Year Award for the year 2002 from the All India
Manufacturers’ Association, Andhra Pradesh State Board.
He worked at various posts in FAPCCI, PHARMEXCIL, BDMA,
VSEZ and such other Organisations.
Sri. Y.S.R. Venkat Rao, Managing Director of the Company. He looks
after the production operations, R&D, Finance and other technical
issues. He had rich experience which will help the Company in
achieving its goals.
i. Background details
ii. Past Remuneration
iii. Recognition or awards
iv. Job profile and his
suitability
iv. Financial performance based on given indicators
11
12
` 10 Lakhs per month and other perks and commission as provided
in the resolution
v. Remuneration proposed
The remuneration offered to Sri Y.S.R. Venkata Rao is justifiable and
comparable with the industry norms considering the nature of industry,
size of the Company, profile and position of person.
vi. Comparative
remuneration profile
with respect to
industry, size of the
company, profile of
the position and
person (in case of
expatriates the
relevant details would
be w.r.t. the country
of his origin)
vii. Pecuniary
relationship directly
or indirectly with the
company, or
relationship with
the managerial
personnel, if any
Sri Y.S.R. Venkata Rao is Second Generation Promoter of the
Company.
He hold 67.81% stake in the Company.
3. OTHER INFORMATION:
i. Reasons of loss or inadequate profits:
Inadequate profits are mainly due to increase in overheads as well as global competition.
ii. Steps taken or proposed to be taken for improvement:
The Company is continuously working on identifying new products, processes and
commercializing the new products based on the Industry and client requirements. The Company
is looking for options to commercialize few of the R&D Products in order to increase the
turnover and margins.
iii. Expected increase in productivity and profits in measurable terms:
The Management has adopted focussed and aggressive steps to control the process costs and
improve the turnover and profitability of the Company. The Management is confident of having
a higher growth ratio in the period to come.
4. DISCLOSURES
The details of remunerations and other information will be given as per the provisions of the
applicable act.
Y.S.R. Venkata Rao
Managing Director
DIN: 00345524
By order of the Board of Directors
For Alkali Metals Limited
Place: Hyderabad
Date : 27 May, 2023
13
During the year 2022-23, the Company recorded a turnover of ` 8,823.27 Lakhs and Net Profit of
` 282.09 Lakhs compared to the turnover of ` 9,101.59 Lakhs and Net Profit of ` 352.78 Lakhs (after
comprehensive items) of previous year 2021-22.
Company is able to operate almost same level of operations as compared to previous year and earned
the net profit of ` 282.09 Lakhs which is lower as compared to previous year.
2. Dividend
The Board of Directors recommends dividend of 20% amounting ` 2 per equity share of ` 10 each
paid-up for the approval of the shareholders at the ensuing Annual General Meeting for the Financial
Year 2022-23 and the said dividend will be paid to shareholders who hold shares as on record date
within 30 days of declaration by the shareholders.
3. Reserves
During the year under review, Company had not transferred any amount to General Reserves.
Board’s Report
To,
The Members,
Alkali Metals Limited
th
Your Directors have pleasure in presenting the 55 Annual Report on the business and operations of the
Company and the accounts for the Financial Year ended 31 March, 2023.
1. Results of our operations
The results of our Operations for the Financial Year ended 31 March, 2023 is summarized as below:
Particulars
Financial Year
2022-23
Financial Year
2021-22
Turnover 8,823.27 9,101.59
Other Income 113.86 29.09
Total Revenue 8,937.13 9,130.68
Profit/(Loss) before finance charges, depreciation and taxation 1,081.96 1,167.44
Less : Finance Charges 266.60 263.13
Depreciation and Amortization expense 429.30 385.87
Profit/(Loss) before exceptional items and tax 386.06 518.44
Less: Exceptional items 9.41 15.03
Profit/(Loss) before tax 376.66 503.41
Less : Current Year's tax (MAT) 65.12 84.89
MAT Credit Entitlement (65.12) (84.89)
Deferred Tax 85.37 155.33
Profit/(Loss) After tax 291.28 348.08
(All figures in ` Lakhs)
4. Future outlook
As per forecast the Chemical Industry is expected to grow 9% p.a. However, the geopolitical
scenarios and global economic conditions could have an impact.
The Company is continuously working to identify new products, processes and commercializing the
new products based on the Industry and client requirements. To understand the International Market,
your Company has participated in International Pharma Exhibitions. Accordingly in-house R&D
team is trying to develop new products. Your Directors are hopeful of doing good business in the
coming years.
5. Research & Development
The Company has spent `111.42 Lakhs towards Research and Development during the Financial
Year under review. The R&D team is putting its efforts to develop the new products and processes to
ensure optimum material consumption and effective yield.
6. Change in the nature of business, if any
The Company had not changed its nature of business during the year under review.
7. Material changes and commitments after the closure of Financial Year
There are no material changes or commitments affecting the financial position of the Company
between the end of the Financial Year and the date of the report.
8. Significant and Material Orders
There are no significant and material orders passed by the regulators or court or tribunals impacting
the going concern status and Company operations in future.
9. Internal Financial Controls
Your Company had adequate internal controls and such procedures adopted by the Company for
ensuring the orderly and efficient conduct of its business, including safeguarding of all its assets and
prevention/detection of frauds and errors, accuracy and completeness of accounting records.
Auditors have verified the internal financial controls and tested the adequacy and the procedures
adopted by the Company and confirm that the controls are adequate to the size of the transactions. The
audit committee reviews and monitors the controls and processes on a regular basis.
10. Risk Management
The Management of the Company will take adequate steps in identifying, assessing, controlling and
mitigating the risks associated with different areas of its business operations.
11. Details of Subsidiary/Joint Ventures/Associate Companies
Your Company had no subsidiaries, Joint Ventures and associate companies during the Financial Year
under review.
12. Deposits
Your Company has not accepted any deposits covered under Chapter V of the Companies Act, 2013
during the year under review and also no outstanding deposits at the beginning of the Financial Year.
14
13. Auditors
Statutory Auditors
The members at the 51st Annual General Meeting of the Company held on 3 August, 2019 had
appointed M/s. G. Nagendrasundaram & Co., Chartered Accountants as Statutory Auditors for a term
of 5 years from the conclusion of the 51st Annual General Meeting on such remuneration as may be
determined by the Board of Directors.
Pursuant to Section 139 of the Companies Act, 2013 the statutory auditors G. Nagendrasundaram &
Co., Chartered Accountants have confirmed that they are eligible to continue as auditors. Their report
for the Financial Year 2022-23 does not contain any adverse remark/comment. However the Auditors
have made a factual disclosure in their CARO report forming part of the Audit Report. Their
disclosure and Company’s reply is stated as under:
- Customs Duty Outstanding for more than six months- For an export obligation the Company
had to pay Customs Duty to the extent of ` 44.93 Lakhs.
The Company paid ` 34.30 Lakhs and is in the process of paying the balance.
- Cyber Fraud against the Company- while proceeding with the payment for CPHI Europe during
July 2022 ` 19 Lakhs were lost due to business email compromise at the CPHI agency.
As a precautionary measure supplier call back process to authenticate bank details has been
included in the payment process. The Company had reported the matter at Local Cyber Crime
Police Station and the same was also reported on the National Cyber Crime Reporting Portal.
Internal Auditors
The Board of Directors of the Company had appointed M/s. Ramakrishna & Associates, Chartered
Accountants as Internal Auditors to conduct the Internal Audit of the company for the Financial Year
ended 31 March, 2023.
M/s. Ramakrishna & Associates, Chartered Accountants have been re-appointed as Internal Auditors
for FY 2023-24.
Secretarial Auditors
The Board of Directors of the Company had appointed CS B. Venkatesh Babu, Practicing Company
Secretary as Secretarial Auditor to conduct Secretarial Audit and Secretarial Compliance Report of
the Company for the Financial Year ended 31 March, 2023 and his report does not contain any
qualification, reservation or adverse remark.
CS B. Venkatesh Babu, Practicing Company Secretary has been re-appointed as Secretarial Auditor
for FY 2023-24.
14. Share Capital
Your Company had not issued and raised any share capital including sweat equity, employee stock
options during the Financial Year under review. Your Company has also not provided any money for
purchase of its own shares by employees or for the benefit of employees.
15. Extract of the Annual Return
Pursuant to the provisions of Section 92(3) read with Section 134(3) (a) of the Companies Act, 2013, a
copy of the Annual Return of the Company is available at the Company’s website. this can be accessed
using the link https://www.alkalimetals.com/annualreturn
15
16. Conservation of energy, technology absorption and foreign exchange earnings and outgo
The details of conservation of energy, technology absorption, foreign exchange earnings and outgo
have been provided in Annexure - 1 and shall form part of this report.
17. Corporate Social Responsibility (CSR)
In terms of Section 135 of the Companies Act, 2013, the Company has constituted Corporate Social
Responsibility Committee to monitor the CSR activities of the Company in terms of the provisions of
the Companies Act, 2013. The Committee's constitution, terms of reference and role are in
compliance with the provisions of the Companies Act, 2013.
The committee comprises of following members:
i. Sri. K.V. Suryaprakash Rao- Chairman
ii. Sri. Y.S.R. Venkata Rao- Member
iii. Sri. G. Jayaraman- Member
Corporate Social Responsibility policy was adopted by the Board of Directors on the
recommendation of Corporate Social Responsibility Committee. Report on Corporate Social
Responsibility as Per Rule 8 of Companies (Corporate Social Responsibility Policy) Rules, 2014 is
prepared and the same is enclosed as ANNEXURE - 5 to this Report.
18. Directors
i. Appointment:
During the year under review, the Board had appointed Mr. Y.V. Prashanth as an Additional
Director and Executive Director on 10 November 2022 as a part of succession plan for
Managing Director. His appointment was approved by the members at the EGM conducted on
15 December 2022.
ii. Retire by Rotation:
Dr. A.R. Prasad, Director, retires by rotation and is eligible for reappointment at the ensuing
Annual General Meeting.
Details of number of Board meetings and profile of directors are covered under the Corporate
Governance section.
iii. Declaration by an Independent Director:
Company had received the declarations by all the Independent Directors that they meet the
criteria of independence as per the provisions of Section 149 of the Companies Act, 2013 and
they are registered with Indian Institute of Corporate Affairs (IICA) as per the amended
provisions of the Companies Act, 2013.
iv. Formal Annual Evaluation:
Pursuant to the provisions of the Companies Act, 2013, the Board has devised a policy on
evaluation of performance of Board of Directors, Committees and Individual Directors.
Accordingly, the Chairman of the Nomination and Remuneration Committee obtained from all
the Board members duly filled in evaluation templates for evaluation of the Board as a whole,
evaluation of the committees and peer evaluation. The summary of the evaluation reports were
presented to the respective Committees and the Board for their consideration.
16
19. Key Managerial Persons
There was no change in the Key Managerial Personnel(s) during the year under review.
20. Director’s Responsibility Statement
As per the provisions of clause (c) of sub-section (3) of Section 134 of the Companies Act, 2013, your
Directors shall state that–
i. in the preparation of the annual accounts, the applicable accounting standards have been
followed along with proper explanation relating to material departures;
ii. they have selected such accounting policies and applied them consistently and made judgments
and estimates that are reasonable and prudent so as to give a true and fair view of the state of
affairs of the company at the end of the Financial Year and of the profit of the company for that
period;
iii. they have taken proper and sufficient care for the maintenance of adequate accounting records in
accordance with the provisions of this Act for safeguarding the assets of the company and for
preventing and detecting fraud and other irregularities;
iv. the annual accounts on a going concern basis; and
v. they have laid down internal financial controls to be followed by the company and that such
internal financial controls are adequate and were operating effectively.
vi. proper systems to ensure compliance with the provisions of all applicable laws and that such
systems were adequate and operating effectively.
21. Committees of Board
Your Company has Audit Committee, Nomination and Remuneration Committee, Stakeholders
Relationship Committee and Corporate Social Responsibility Committee, the details are provided in
the Corporate Governance section.
22. Vigil mechanism for Directors and Employees
The Company believes in the standard of conduct which all employees are expected to observe in
their business endeavors. The Code (Vigil Mechanism) reflects the Company’s commitment to
principles of integrity, transparency and fairness. The copy of the Code of Vigil Mechanism is
available on the Company website www.alkalimetals.com under Investors tab.
The Company has adopted a Whistle Blower Policy, as part of vigil mechanism to provide appropriate
avenues to the Directors and employees to bring to the attention of the management any issue which is
perceived to be in violation of or in conflict with the fundamental business principles of the Company.
The employees are encouraged to voice their concerns by way of whistle blowing and all the
employees have been given access to the Audit Committee.
Mr. Y.V. Prashanth, Executive Director is designated as ombudsperson to deal with all the complaints
registered under the policy.
23. Policy on Sexual Harassment
There has always been an endeavor on the part of the Company to create and provide an environment
that is free from discrimination and harassment including sexual harassment. The Company had
adopted policy on Prevention of Sexual Harassment of Women at Workplace in accordance with The
Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
During the year, the Internal Complaints Committee has not received any complaints pertaining to
incident of harassment.
17
24. Particulars of loans, guarantees or investments
The Company had not given any loans, guarantees or made investments as per the provisions of
Section 186 of the Companies Act, 2013 during the Financial Year under review. Also there are no
outstanding amounts of loans given, guarantees provided and/or investments made at the beginning
of the year as well.
25. Particulars of contracts or arrangements with related parties
During the Financial Year under review, Company had entered into certain Related Party
Transactions which are all on arms length basis; details of all such transactions as required under
section 188 of Companies Act are annexed in Form AOC-2 forming part of the Board’s Report as
ANNEXURE-2.
The Company has formulated a policy on materiality of Related Party Transactions and dealing with
Related Party Transactions which can be accessed at the Company website www.alkalimetals.com
under Investors tab.
26. Managerial Remuneration / Employee Details
The Details required to be provided pursuant to Rule 5(1) of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014 are annexed and forming part of the Board’s
Report as ANNEXURE -3.
There are no employees in the Company in receipt of amounts covered in rule 5(2) of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014.The details pertaining to top
10 employees falling in this category will be provided to the shareholders who make specific request
to the Company.
27. Secretarial Audit Report
Secretarial Audit Report including Secretarial Compliance Report as per SEBI (LODR) Regulations
for the Financial Year 2022-23 obtained from CS B. Venkatesh Babu, Company Secretary in Practice
is annexed and forming part of the Board’s Report as ANNEXURE -4.
28. Corporate Governance and Management Discussion and Analysis
In terms of Regulation 34 of the SEBI (LODR) Regulations, 2015, a Report on Corporate Governance
along with Compliance Certificate issued by Statutory Auditor’s of the Company and also the
Management Discussion and Analysis report is annexed and forms integral part of the Board’s
Report.
29. Insurance
All the properties and insurable interests of the Company including Building, Plant and Machinery
and Stocks have been adequately insured. The Company has-Directors & Officers Indemnity Policy-
for Directors and Key Managerial Personnel, Group Accidental policy- for staff and workmen and
Group Medical Policy - for those who are not covered under ESI.
30. Listing on Stock Exchanges
The securities of the Company are continued to be listed on BSE and NSE. The listing fees for these
stock exchanges are paid till the current Financial Year.
31. Cost Records
The provisions of Section 148 of the Companies Act 2013 for maintaining the Cost Records are not
applicable to the Company.
18
32. Compliance of Secretarial Standards
The Company has duly complied with the applicable Secretarial Standards issued by The Institute of
Company Secretaries of India, for the Board and General Meetings.
33. Acknowledgements
Your Directors express their gratitude to all Members, Staff and Workers, Bankers, Regulatory
Authorities, Government, Customers, Suppliers, Business Associates from India and abroad for their
continued support at all times and look forward to have the same in our future endeavours. Directors
are pleased to record their appreciation of the sincere and dedicated services of the employees and
workmen at all levels.
Your Directors look forward to the long term future with confidence
Y.S.R. Venkata Rao
Managing Director
DIN: 00345524
For and on behalf of Board of Directors
For Alkali Metals Limited
Place : Hyderabad
Date : 27 May, 2023
Dr. J.S. Yadav
Chairman
DIN: 02014136
19
ANNEXURE -1
3. FOREIGN EXCHANGE EARNINGS AND OUTGO
(All figures in ` Lakhs)
2022-23 2021-22
Earnings 5,711.86 5,296.29
Outgo 1,195.05 1,462.68
Raw Materials 1,163.74 1,395.11
Equipment - 67.58
Foreign currency Expenses 31.31 -
Net Foreign Exchange earnings 4,516.81 3,833.61
Disclosure of particulars with respect to conservation of energy, technology absorption and foreign
exchange earnings and outgo as required under provisions of Section 134(3)(m) read with Companies
(Accounts) Rules, 2014:
1. CONSERVATION OF ENERGY
i. The steps taken or impact on conservation of energy:
Continuous measures are being taken by the Company to conserve the energy. Hydrogen recovery
plant and Nitrous oxide generation plant have been installed at all the units, it helps in re-usage of
fuels thereby it conserves energy. All the measures taken by the Company has resulted in cost
savings.
ii. The steps taken by the Company for utilizing alternate sources of energy:
The Company operations are mainly carried out using electrical power supported by generator back
up for continuous operations. However, the Company is evaluating the possibilities of utilizing
alternative sources of energy.
iii. The Capital investment on energy conservation equipments:
Not envisaged any additional investment in the coming year.
2. TECHNOLOGY ABSORPTION
i. The Efforts made towards technology absorption:
Presently, the Company applies its own technology and the indigenous technology for the
manufacturing processes carried out. There has been a continuous endeavor to develop the
technology required for the Company.
ii. The Benefits derived are:
• maintenance of quality standards
• commercialization of new products
• time saving by automation of repetitive R&D tasks
• reduced dependence on external source for technology adaptation.
iii. Details of technology imported during the past 3 years:
No technology has been imported during the past 3 years.
iv. The expenditure incurred on Research and Development: ` 111.42 Lakhs.
Y.S.R. Venkata Rao
Managing Director
DIN: 00345524
For and on behalf of Board of Directors
For Alkali Metals Limited
Place : Hyderabad
Date : 27 May, 2023
Dr. J.S. Yadav
Chairman
DIN: 02014136
20
21
ANNEXURE-3
Statement of particulars as per Rule 5 of Companies (Appointment and
Remuneration of Managerial personnel) Rules, 2014.
1. The ratio of the remuneration of each director to the median remuneration of the employees of the
company for the financial year:
S.No
Name of the Director
Ratio of the remuneration to the
median remuneration of the employees
Note : No other director is drawing remuneration other than specified above.
Mr. Y.V. Prashanth was appointed on 10 November 2022, his annual salary is used for
calculation purpose
2. The percentage increase in remuneration of each Director, Chief Financial Officer, Chief Executive
Officer, Company Secretary or Manager in the financial year:
i. Sri. Y.S.R.Venkata Rao, Managing Director 3.41%
ii. Mr. Y.V. Prashanth, Executive Director Not applicable
iii. Ms. K. Uma Kumari, CFO 6.29%
iv. Mr. Siddharth Dubey, CS 6.24%
Average Increase/(Decrease) in remuneration
Company’s performance
Turnover ` 8,823.27 Lakhs
Net Profit ` 287.59 Lakhs
Total Remuneration to KMP ` 164.62 Lakhs
S.No.
Name of the Director and KMP
Percentage increase in remuneration
6.46 %
Turnover is `8,823.27 Lakhs and
Net Profit is ` 287.59 Lakhs
i. Sri. Y.S.R.Venkata Rao, Managing Director 26.73
ii. Mr. Y.V. Prashanth, Executive Director 15.34
Note: The percentage increase of remuneration to CFO and CS pertains to Bonus paid during the
Financial Year.
3. The percentage increase in the median remuneration of employees in the financial year: 33.96%
4. The number of permanent employees on the rolls of Company:
There are 113 employees as on 31 March, 2023.
5. The explanation on the relationship between average increase in remuneration and company’s
performance
6. Comparison of the remuneration of the Key Managerial Personnel (KMP) against the performance of
the company
7. Variations in the market capitalization of the company, price earnings ratio as at the closing date of the
current financial year and previous financial year and percentage increase or decrease in the market
quotations of the shares of the company in comparison to the rate at which the company came out with
the last public offer:
22
Note: We have provided actual payment of remuneration to Mr Y.V. Prashanth for the part of the year.
10. The key parameters for any variable component of remuneration availed by the directors:
Managing Director and Executive Director is entitled 5% on profits computed as per Section 198 of the
Companies Act 2013, as part of remuneration during the year ended 31 March 2023.
11. The ratio of remuneration of the highest paid director to that of the employees who are not directors but
receive remuneration in excess of the highest paid director during the year
Not Applicable.
12. Affirmation that remuneration is as per the remuneration policy of the Company. It is hereby affirmed
that the remuneration paid is as per the Remuneration Policy for Directors, KMPs and Other Employees.
S.No.
Particulars
31.03.2023 31.03.2022
i. Market Capitalization
BSE (amount in `in Lakhs) 9327.17 7962.72
NSE (amount in ` in Lakhs) 9316.99 8074.73
ii. Price Earnings ratio (based on Basic EPS)
BSE 32.48 22.57
NSE 32.45 22.88
iii. Market quotation of the shares compared to rate at which it came out with IPO.
The Company came with Initial Public Offer during the period of 2008 at a price of ` 103 per
share. As on 31 March 2023(last trading day) the market quotation of the company shares price is
` 91.6 on BSE and ` 91.5 for NSE as on 31 March 2023
1. Sri. Y.S.R. VenkataRao, MD ` 108.37 Lakhs
2. Mr Y.V. Prashanth, ED ` 29.34 Lakhs
3. Ms. K. Uma Kumari, CFO ` 18.62 Lakhs
4. Mr. Siddharth Dubey, CS ` 8.30 Lakhs
S.
No.
Name
Remuneration of
Key Managerial
Person
Performance of the
Company during
2022-23
Turnover ` 8823.27 Lakhs
Net Profit ` 287.59 Lakhs
% to
Turnover
1.23%
0.33%
0.21%
0.09%
Y.S.R. Venkata Rao
Managing Director
DIN: 00345524
For and on behalf of Board of Directors
For Alkali Metals Limited
Place : Hyderabad
Date : 27 May, 2023
Dr. J.S. Yadav
Chairman
DIN: 02014136
8. Average percentile increase already made in the salaries of employees other than the managerial
personnel in the last financial year and its comparison with the percentile increase in the managerial
remuneration and justification thereof and point out if there are any exceptional circumstances for
increase in the managerial remuneration:
The Average percentage of increase in remuneration of employees other than the managerial
personnel is 4.15% and Managerial Personnel is 31.41%.(as we have appointed Executive Director
during the year).
9. Comparison of remuneration of each Key Managerial Personnel against the performance of the
company:
23
ANNEXURE-4
FORM MR-3
[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule No. 9 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014]
SECRETARIAL AUDIT REPORT
(For the Financial Year ending 31 March, 2023)
To
The Members of
M/s. Alkali Metals Limited
Hyderabad.
I have conducted the Secretarial Audit on the compliance of applicable statutory provisions and the adherence
to good corporate practices by M/s. Alkali Metals Limited (CIN: L27109TG1968PLC001196)
(hereinafter called ‘the Company’). Secretarial Audit was conducted in a manner that provided us a reasonable
basis for evaluating the corporate conducts/statutory compliances and expressing our opinion thereon.
Based on my verification of the Alkali Metals Limited, books, papers, minute books, forms and returns filed
and other records maintained by the Company and also the information provided by the Company, its
officers, agents and authorized representatives during the conduct of secretarial audit, I hereby report that in
my opinion, the Company has, during the audit period covering the financial year ended on March 31,2023,
complied with the statutory provisions listed hereunder and also that the Company has proper Board-
processes and compliance-mechanism in place to the extent, in the manner and subject to the reporting
made hereinafter:
The Company is carrying on the business activities of manufacture of Intermediaries such as Organic and
Inorganic Chemicals, Fine Chemicals and Bulk Drug.
I have examined the books, papers, minute books, forms and returns filed and other records maintained by
the Company for the financial year ended on 31 March, 2023 according to the provisions of:
1. The Companies Act, 2013 (the Act) and the Rules made there under;
2. The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the Rules made there under;
3. The Depositories Act, 1996 and the Regulations and Bye-laws framed there under;
4. Foreign Exchange Management Act, 1999 and the Rules and Regulations made there under to the
extent of Foreign Direct Investment, Overseas Direct Investment and External Commercial
Borrowings;
5. The following Regulations and Guidelines prescribed under the Securities and Exchange Board of
India Act, 1992 (‘SEBI Act’) to the extent applicable to the Company:-
a. The Securities and Exchange Board of India (Substantial Acquisition of Shares and
Takeovers)Regulations, 2011;
b. The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015;
c. The Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015;
24
d. The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements)
Regulations, 2018;
e. The Securities and Exchange Board of India (Employee Stock Option Scheme and Employee
Stock Purchase Scheme) Guidelines, 1999;
f. The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations,
2008;
g. The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents)
Regulations, 1993 regarding the Companies Act and dealing with client;
h. The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009;
and
i. The Securities and Exchange Board of India (Buyback of Securities) Regulations, 1998;
I have also examined compliance with applicable clauses of the following:
i. The Secretarial Standards on the meeting of the Board of Directors and General Meetings issued
by The Institute of Company Secretaries of India.
ii. The Memorandum and Articles of Association.
During the year under review the Company has complied with the provisions of the Acts, Rules,
Regulations, Guidelines, Standards etc mentioned above to the extent applicable to the Company subject to
as provided below.
However, please note that SEBIs ICDR, ESOS, Listing of Debt Securities, Registrar to an Issue, Delisting
and Buyback of Securities are not applicable as there being no such activity/acts/events during the audit
period for the Company.
The Company has identified the following laws as specifically applicable to the Company:
a. Petroleum And Explosives Safety Organisation (Formerly Department of Explosives)
b. Drugs and Cosmetics Act, 1940
c. Prohibition and Excise
d. Water (Prevention and Control of Pollution) Act, 1974
e. Air (Prevention and Control of Pollution) Act, 1981
f. Hazardous Wastes (Management, Handling and Transboundary, Movement)Rules, 2008
g. Indian Boilers Act, 1923
I further report that based on the information received, explanations given, process explained there are
adequate systems and processes in the Company commensurate with the size and operations of the
Company to monitor and ensure compliance with Sector Specific laws, rules, regulations and guidelines.
I further report that:
1. The Board of Directors of the Company is duly constituted with proper balance of Executive
Director, Non-Executive Directors, Independent Directors and Woman Director.
The following are the changes in the composition of the Board of Directors and KMPs during
the year under review.
25
• Mr. Y.V. Prashanth was appointed as an Additional Director and Executive Director on
10 November, 2022 and his appointment was approved by the shareholders at the EGM
held on 15 December, 2022.
2. Adequate notice is given to all directors to conduct the Meetings of Board and its committees.
Detailed notes on agenda were sent and financials were sent at shorter period in advance, and a
system exists for seeking and obtaining further information and clarifications on the agenda
items before the meeting and for meaningful participation at the meeting.
3. All decisions at Board Meeting and committee meetings were carried out unanimously as
recorded in the minutes of the meeting and there were no instances of dissenting members in the
board and committee meetings.
4. During the year, the Company had entered into related party transactions at arm’s length price
with the approval of the audit committee and Board.
I further report that there are adequate systems and processes in the Company commensurate with the size
and operations of the Company to monitor and ensure compliance with applicable laws, rules, regulations
and guidelines.
I further report that during the audit period, there were no specific events / actions having a major bearing on
the company’s affairs in pursuance of the above referred laws, rules, regulations, guidelines, standards, etc.
as referred to above.
CS B. Venkatesh Babu
Company Secretary
FCS No. 6708, CP.No. 5103
Peer Review No. 1954/2022
UDIN F006708E000393534
Place: Hyderabad
Date : 27 May, 2023
Note: This report is to be read with our letter of even date, which is annexed, and form an integral part of this report.
26
ANNEXURE TO THE SECRETARIAL AUDIT REPORT
To
The Members of
M/s. Alkali Metals Limited
Hyderabad.
Our Report of even date is to be read along with this letter
1. Maintenance of secretarial records is the responsibility of the management of the Company. Our
responsibility is to express an opinion on these secretarial records based on our audit.
2. We have followed the audit practices and processes as were appropriate to obtain reasonable
assurance about the correctness of the contents of the secretarial records. The verification was done on
the random test basis to ensure that correct facts are reflected in secretarial records. We believe that the
processes and practices, we followed provide a reasonable basis for our opinion.
3. We have not verified the appropriateness of financial records and Books of Accounts of the Company.
4. Wherever required, we have obtained the Management representation about the compliance of laws,
rules and regulations and happening of events etc.
5. The compliance of the provisions of Corporate and other applicable laws, rules, regulations,
standards is the responsibility of the Management. Our examination was limited to the verification of
procedures on the random test basis.
6. The Secretarial Audit report is neither an assurance as to the future viability of the Company nor of the
efficacy or effectiveness with which the management has conducted the affairs of the Company.
Place : Hyderabad
Date : 27 May, 2023
CS B. Venkatesh Babu
Company Secretary
FCS No. 6708, CP.No. 5103
Peer Review No. 1954/2022
UDIN F006708E000393534
27
Secretarial Compliance Report of ALKALI METALS LIMITED
for the financial year ended 31 March, 2023
I have conducted the review of the compliance of the applicable statutory provisions and the adherence to
good corporate practices by ALKALI METALS LIMITED (CIN:L27109TG1968PLC001196)
(hereinafter referred as ‘the listed entity’),having its Registered Office at B-5, Block III, IDA, Uppal,
Hyderabad 500039, Secretarial Review was conducted in a manner that provided me a reasonable basis for
evaluating the corporate conducts/statutory compliances and to provide my observations thereon.
Based on my verification of the listed entity’s books, papers, minutes books, forms and returns filed and
other records maintained by the listed entity and also the information provided by the listed entity, its
officers, agents and authorized representatives during the conduct of Secretarial Review, I hereby report
that the listed entity has, during the review period covering the financial year ended on 31 March, 2023
complied with the statutory provisions listed hereunder in the manner and subject to the reporting made
hereinafter:
I CS B. Venkatesh Babu, have examined:
(a) all the documents and records made available to me and explanation provided by
M/s. Alkali Metals Limited (“the listed entity”),
(b) the filings/ submissions made by the listed entity to the stock exchanges,
(c) website of the listed entity,
(d) any other document/ filing, as may be relevant, which has been relied upon to make this report, for the
financial year ended 31 March, 2023 (“Review Period”) in respect of compliance with the provisions of :
(a) the Securities and Exchange Board of India Act, 1992 (“SEBI Act”) and the Regulations,
circulars, guidelines issued thereunder; and
(b) the Securities Contracts (Regulation) Act, 1956 (“SCRA”), rules made thereunder and the
Regulations, circulars, guidelines issued thereunder by the Securities and Exchange Board of
India (“SEBI”);
The specific Regulations, whose provisions and the circulars/guidelines issued thereunder, have been
examined, include:-
(a) Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015;
(b) Securities and Exchange Board of India(Issue of Capital and Disclosure Requirements) Regulations,
2018
(c) Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations,
2011;
(d) Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015;
28
I (a) The listed entity has complied with the provisions of the above Regulations and circulars/guidelines issued thereunder, except in
respect of matters specified below:
Nil
Advisory/
Clarification/
Fine/ Show
Cause
Notice/
Warning,
etc.
Sr.
No.
Compliance
Requirement
(Regulations
/ circulars /
guidelines
including
specific
clause)
Regulation /
Circular No.
Deviations
Action
Taken by
Type of
Action
Details
of
Violation
Fine
Amount
Observations/
Re-marks of
the Practising
Company
Secretary
Management
Response
Remarks
(b) The listed entity has taken the following actions to comply with the observations made in previous reports:
Sr.
No.
Compliance
Requirement
(Regulations/
circulars/ guide
lines including
specific clause)
Regulation/
Circular No.
Deviations Action
Taken by
Type of
Action
Nil
Advisory/
Clarification/
Fine / Show
Cause
Notice/
Warning,
etc.
Details of
Violation
Fine
Amount
Observations/
Re-marks of
the Practicing
Company
Secretary
Management
Response
Remarks
th
Note : In the Last report waiver of fine from BSE is awaited for not having 6 Director during 1 October , 2020 to 11 February, 2021
and the same was also confirmed the BSE during the reporting period.
II. Compliances related to resignation of statutory auditors from listed entities and their material subsidiaries as per SEBI Circular
CIR/CFD/CMD1/114/2019 dated 18 October, 2019:
Sr.
No.
Particulars
Compliance
Status
(Yes/No/NA)
Observations /
Remarks
by PCS*
1. Compliances with the following conditions while appointing/re-appointing an auditor
i. If the auditor has resigned within 45 days from the end of a quarter of a
financial year, the auditor before such resignation, has issued the limited
review/ audit report for such quarter; or
ii. If the auditor has resigned after 45 days from the end of a quarter of a financial
year, the auditor before such resignation, has issued the limited review/ audit
report for such quarter as well as the next quarter; or
iii. If the auditor has signed the limited review/ audit report for the first three
quarters of a financial year, the auditor before such resignation, has issued the
limited review/ audit report for the last quarter of such financial year as well
as the audit report for such financial year.
NA
NA
As there is
no change of
auditor
during the
reporting
period, this
point is not
applicable
NA
29
And based on the above examination, I hereby report that, during the Review Period:
2. Other conditions relating to resignation of statutory auditor
i. Reporting of concerns by Auditor with respect to the listed entity/its material
subsidiary to the Audit Committee:
a. In case of any concern with the management of the listed entity/material
subsidiary such as non-availability of information / non-cooperation by
the management which has hampered the audit process, the auditor has
approached the Chairman of the Audit Committee of the listed entity
and the Audit Committee shall receive such concern directly and
immediately without specifically waiting for the quarterly Audit
Committee meetings.
b. In case the auditor proposes to resign, all concerns with respect to the
proposed resignation, along with relevant documents has been brought
to the notice of the Audit Committee. In cases where the proposed
resignation is due to non-receipt of information / explanation from the
company, the auditor has informed the Audit Committee the details of
information / explanation sought and not provided by the management,
as applicable.
c. The Audit Committee / Board of Directors, as the case may be,
deliberated on the matter on receipt of such information from the auditor
relating to the proposal to resign as mentioned above and communicate
its views to the management and the auditor.
ii. Disclaimer in case of non-receipt of information:
The auditor has provided an appropriate disclaimer in its audit report, which is
in accordance with the Standards of Auditing as specified by ICAI / NFRA, in
case where the listed entity/ its material subsidiary has not provided
information as required by the auditor
3. The listed entity / its material subsidiary has obtained information from the Auditor
upon resignation, in the format as specified in Annexure- A in SEBI Circular CIR/
CFD/CMD1/114/2019 dated 18 October, 2019.
As there is no
resignation of
auditor during
the reporting
period, this
point is not
applicable
NA
NA
NA
NA
NA
As there is no
resignation of
auditor during
the reporting
period, this point
is not applicable
III. I here by report that, during the review period the compliance status of the listed entity is appended as below:
Sr.
No.
Particulars
Compliance Status
(Yes/No/NA)
Observations /
Remarks by PCS*
1. Secretarial Standards:
The compliances of the listed entity are in accordance with the applicable
Secretarial Standards (SS) issued by the Institute of Company Secretaries India
(ICSI).
2. Adoption and timely updation of the Policies:
• All applicable policies under SEBI Regulations are adopted with the approval
of board of directors of the listed entities
• All the policies are in conformity with SEBI Regulations and have been
reviewed & updated on time, as per the regulations/circulars/guidelines issued
by SEBI
3. Maintenance and disclosures on Website:
• The Listed entity is maintaining a functional website
• Timely dissemination of the documents/ information under a separate section
on the website
• Web-links provided in annual corporate governance reports under Regulation
27(2) are accurate and specific which re- directs to the relevant document(s)/
section of the website
Yes
Yes
Yes
30
4. Disqualification of Director:
None of the Director(s) of the Company is/are disqualified under Section 164 of
Companies Act, 2013 as confirmed by the listed entity.
5. Details related to Subsidiaries of listed entities have been examined w.r.t.:
a) Identification of material subsidiary companies
b) Disclosure requirement of material as well as other subsidiaries
6. Preservation of Documents:
The listed entity is preserving and maintaining records as prescribed under SEBI
Regulations and disposal of records as per Policy of Preservation of Documents and
Archival policy prescribed under SEBI LODR Regulations, 2015.
7. Performance Evaluation:
The listed entity has conducted performance evaluation of the Board, Independent
Directors and the Committees at the start of every financial year/during the financial
year as prescribed in SEBI Regulations.
8. Related Party Transactions:
a) The listed entity has obtained prior approval of Audit Committee for all related
party transactions; or
b) The listed entity has provided detailed reasons along with confirmation whether
the transactions were subsequently approved/ratified/rejected by the Audit
Committee, in case no prior approval has been obtained.
9. Disclosure of events or information:
The listed entity has provided all the required disclosure(s) under Regulation 30
along with Schedule III of SEBI LODR Regulations, 2015 within the time limits
prescribed thereunder.
10. Prohibition of Insider Trading:
The listed entity is in compliance with Regulation 3(5) & 3(6) SEBI (Prohibition of
Insider Trading) Regulations, 2015.
11. Actions taken by SEBI or Stock Exchange(s), if any:
No action(s) has been taken against the listed entity its promoters/ directors/
subsidiaries either by SEBI or by Stock Exchanges (including under the Standard
Operating Procedures issued by SEBI through various circulars) under SEBI
Regulations and circulars/ guidelines issued thereunder except as provided under
separate paragraph herein (**).
12. Additional Non-compliances, if any:
No additional non-compliance observed for any SEBI regulation/circular/guidance
note etc.
Assumptions & Limitation of scope and Review:
1. Compliance of the applicable laws and ensuring the authenticity of documents and information furnished, are the responsibilities of
the management of the listed entity.
2. Our responsibility is to report based upon our examination of relevant documents and information. This is neither an audit nor an
expression of opinion.
3. We have not verified the correctness and appropriateness of financial Records and Books of Accounts of the listed entity.
4. This Report is solely for the intended purpose of compliance in terms of Regulation 24A(2) of the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015 and is neither an assurance as to the future viability of the listed entity nor of the efficacy
or effectiveness with which the management has conducted the affairs of the listed entity.
Place : Hyderabad
Date : 27 May, 2023
CS B. Venkatesh Babu
Company Secretary
FCSNo.:6708
CPNo.:5103
PRNo.:1954/2022
UDIN :F006708E000393633
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Company don’t have any
subsidiary Companies,
not required to comply
this clause
31
ANNEXURE -5
Annual Report on CSR Activities
1. Brief outline on Corporate Social Responsibility (CSR) Policy of the Company.
The CSR policy of the Company intends to create a positive societal impact while the economic
activities are carried out. This Policy covers current as well as proposed CSR activities to be
undertaken by the Company. The activities are in alignment with Schedule VII of the Act as amended
from time to time. It covers the CSR activities which are being carried out in India only which include:
• To provide education for all round development of the needy people
• To contribute to the development of the under-privileged.
• To provide health care, medical facilities and financial assistance for health and medical
purposes to the needy people
• To carry out such other activities as specified in Schedule VII of the Companies Act,2013
2. Composition of CSR Committee:
S.
No.
Name of Director
Designation /
Nature of
Directorship
Number of
meetings of
CSR Committee
held during
the year
Number of
meetings of
CSR Committee
attended
during the year
i. Sri K.V. Suryaprkash Rao Independent Director 2 2
ii. Sri Y.S.R. Venkata Rao Managing Director 2 2
iii. Sri G. Jayaraman Independent Director 2 2
3. Provide the web-link where Composition of CSR committee, CSR Policy and CSR projects approved
by the board are disclosed on the website of the company.
https://www.alkalimetals.com/uploads/Financials/Corporate-Social-Responsibility-Policy.pdf
4. Provide the details of Impact assessment of CSR projects carried out in pursuance of sub-rule (3) of
rule 8 of the Companies (Corporate Social responsibility Policy) Rules, 2014, if applicable (attach the
report) – Not Applicable
5. Details of the amount available for set off in pursuance of sub-rule (3) of rule 7 of the Companies
(Corporate Social responsibility Policy) Rules, 2014 and amount required for set off for the financial
year, if any
S.
No.
Financial
Year
Amount available for
set-off from preceding
financial years (in `)
Amount required to be
set-off for the financial
year, if any (in `)
i.
NIL
6. Average net profit of the Company as per section 135(5)- ` 658.31 Lakhs
32
7. (a) Two percent of average net profit of the company as per section 135(5) – ` 4.38 Lakhs
(b) Surplus arising out of the CSR projects or programmes or activities of the previous financial
years.- Nil
(c) Amount required to be set off for the financial year, if any- Nil
(d) Total CSR obligation for the financial year (7a+7b-7c)- ` 4.38 Lakhs
8. (a) CSR amount spent or unspent for the financial year:
Total Amount
Spent for the
Financial Year.
(in ` Lakhs)
Amount Unspent (in `)
Total Amount transferred to
Unspent CSR Account as per
section 135(6).
Amount transferred to any fund
specified under Schedule VII
as per second proviso to
section 135(5).
Amount.
5
NIL
NIL
Date of transfer.
Name of
the Fund
Amount.
Date of
transfer.
(b) Details of CSR amount spent against ongoing projects for the financial year: NIL
(c) Details of CSR amount spent against other than ongoing projects for the financial year:
33
(d) Amount spent in Administrative Overheads- Nil
(e) Amount spent on Impact Assessment, if applicable- Nil
(f) Total amount spent for the Financial Year (8b+8c+8d+8e)- ` 5 Lakhs
(g) Excess amount for set off, if any ` 0.62 Lakhs
Sl.
No.
Particular
Amount (in ` Lakhs)
(i) Two percent of average net profit of the company as per section 135(5) 4.38
(ii) Total amount spent for the Financial Year 5.00
(iii) Excess amount spent for the financial year [(ii)-(i)] 0.62
(iv) Surplus arising out of the CSR projects or programmes or
activities of the previous financial years, if any Nil
(v) Amount available for set off in succeeding financial years [(iii)- (iv)] 0.62
9. (a) Details of Unspent CSR amount for the preceding three financial years: Nil
(b) Details of CSR amount spent in the financial year for ongoing projects of the preceding financial
year(s):Nil
10. In case of creation or acquisition of capital asset, furnish the details relating to the asset so created
or acquired through CSR spent in the financial year – Not Applicable.
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)- Not Applicable
For and on behalf of
Alkali Metals Limited
Y.S.R. Venkata Rao
Managing Director
DIN:00345524
K.V. Suryaprakash Rao
Independent Director and
Chairman of CSR Committee
DIN: 06934146
Place : Hyderabad
Date : 27 May, 2023
(in ` Lakhs)
(in ` Lakhs)
(in ` Lakhs)
(in ` Lakhs)
(in ` Lakhs)
(in ` Lakhs)
34
MANAGEMENT DISCUSSION AND ANALYSIS
The Management Discussion and Analysis Report sets out developments in the business, environment and
company’s performance since our last report. The analysis supplements the Directors’ Report and Audited
Financial Statements which together form part of this Annual Report.
ECONOMY REVIEW
As per studies, Indian Speciality Chemical Industry is likely to see a robust growth in the coming years. The
Indian specialty chemicals industry has expanded exponentially in recent years. It represents 22 per cent of
India's overall chemicals and petrochemicals market and is valued at USD 32 billion. The Industry was
expected to grow on predicted lines. Apart from the usual agro chemicals industry, the dyes and pigments,
cosmetics and personal care industry was expected to grow. However, the recessionary conditions in
Europe and geo political scenario have contributed to high raw material and logistics cost thereby slowing
down the demand. The global supply chain was once again affected and this continued to have an effect.
The domestic market too has seen sluggish demand. The recent opening of Chinese Markets offers hope
that the current situation improves. It is estimated that the speciality chemical section will be primarily
export-oriented and play a significant role in the overall macroeconomics. The Government is focussing on
giving export benefits, tax advantages, and capital subsidies to add thrust to the ongoing growth.
OUTLOOK
India is expected to account for more than 20% of incremental global consumption of chemicals over the
next two decades. The Indian Chemical Industry has been modernizing through new molecules,
innovations in technology, product profile, and quality to emerge as a modern World class Chemical
industry ready to take on global competition. The Company hopes to understand the demand and develop
new products through continuous R&D.
POTENTIAL PITFALLS
• Recessionary/Inflationary effects in many countries resulting in global slowdown
• Geo political situation across the European Countries and moderate growth in key export
markets due to sanctions imposed therein
• Stiff price competition resulting in difficulty in maintaining margin
• Weak domestic demand
PRODUCT PERFORMANCE
All the products have performed in similar manner as compared to the previous year. The Company has
sold 726 MT of finished products during 2022-23 and realized a turnover ` 8, 639 Lakhs. The Company
sold sodium derivatives, pyridine derivatives and fine chemicals. The Company plans to continue its effort
in developing new products.
INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY
The company has in place effective systems of internal control commensurate to its size and nature of
business which provides for:
• Efficient use and safeguarding resources
• Accurate recording and custody of assets
• Compliance with prevalent statutes, policies, procedures, listing requirements, management
guidelines and circulars.
35
• Transactions being accurately recorded ,cross verified and promptly reported
• Adherence to applicable accounting standards and policies.
• IT systems which include controls for facilitating the above.
The internal control system provides for well documented policies, guidelines, authorizations and approval
procedures. Also, the internal audit reports are laid before Audit Committee and discussions were held
periodically by the Audit Committee at its meetings. The observations / findings made in internal audit
reports, along with the status of action thereon are reviewed by the Audit committee of the Board of
directors on a regular basis. The company has an exhaustive budgetary control system and the
management regularly reviews actual performance
OPERATIONAL PERFORMANCE
• The Company made a comprehensive profit of ` 287.59 lakhs
• The Company made a profit before tax and exceptional items of ` 386.06 lakhs
• The book value per share stands at ` 51.16/- as on 31.03.2023 (` 50.33 previous year).
• The exports contributed to 65% of the total turnover
• Net foreign exchange earnings of ` 4,516.81 Lakhs
HUMAN RESOURCE DEVELOPMENT
The management believes that competent and committed human resources are important to attain success
in the organisation. The Company believes in creating a pool of talent within its people whose skills,
expertise and experience provide the impetus towards market leadership. The Company’s human resource
practices are widely accepted by the management, staff and workers. During the year under review, the
Industrial relations with Employees/ workers at all the Company’s locations continued to be harmonious
and positive.
CAUTIONARY AND FORWARD LOOKING STATEMENT
Statements in the Management Discussion and Analysis Report which describe the Company’s
objectives, projections, estimates, expectations or predictions may be considered to be “forward -
looking statements” within the meaning of applicable Securities Laws and Regulations. These statements
are based on certain assumptions and expectations of future events. Actual results could however
materially differ from those expressed or implied. Important factors that could make a difference to the
Company’s Operations include global and Indian political scenario, economic & demand-supply
conditions, finished goods prices, raw materials cost & availability, cyclical demand and pricing in the
company’s principal markets, changes in Government regulations, Policies, tax regimes, economic
developments within India besides other factors such as litigation and industrial relations as well as the
ability to implement the strategies.
Place : Hyderabad
Date : 27 May, 2023
For and on behalf of Board of Directors
For Alkali Metals Limited
Y.S.R. Venkata Rao
Managing Director
DIN: 00345524
Dr. J.S. Yadav
Chairman
DIN: 02014136
36
REPORT ON CORPORATE GOVERNANCE
Report Pursuant to Schedule V of the Securities and Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015, compliance with the requirements of Corporate Governance
is set out below:
CORPORATE GOVERNANCE PHILOSOPHY OF THE COMPANY
Corporate Governance envisages working towards high levels of transparency, accountability, consistent
value systems, delegation across all facets of its operations leading to sharply focused and operationally
efficient growth. The Company’s approach to corporate governance and the role it plays goes well beyond
meeting our compliance obligations. The Company strives to be transparent, ethical and maintain high
level of integrity in the conduct of its business and also in its interactions with stakeholders, including
shareholders, employees, customers, suppliers and statutory authorities.
The Company follows all the principles of corporate governance in its true spirit and at all times.
1. BOARD OF DIRECTORS
Composition
The Board is committed to the highest standards of ethics and integrity. The Directors abide by the ‘Code of
Conduct’. It consists of seven Directors as on 31 March, 2023 of which;
- three are Independent Directors;
- two Non Executive and Non Independent Directors of which one is a Woman Director
- one is Executive Director and
- one is Managing Director.
The day-to-day management of the Company was carried on by the Managing Director and Executive
Director of the Company.
Our Board brings together a wealth of knowledge, perspective, professionalism, divergent thinking and
experience. Our members have a good understanding of governance, technical, financial and non-financial
issues. Stated below is the specific area of focus of the individual Board Members.
i. Dr. J.S. Yadav- is expert in the field of Organic and Inorganic chemistry, R&D and
Administration.
ii. Sri. Y.S.R. Venkata Rao- has played pivotal role in the growth of the Company and possesses the
expertise in Manufacturing, Pharmaceutical Sector, Marketing, Finance, Business Strategies
Administration and Leadership to lead the Company.
iii. Sri. G. Jayaraman- is multi-faceted and experienced across information technology, textiles,
cement and pharmaceuticals industries in the areas like finance, accounts, secretarial, legal and
administration functions.
iv. Sri. K.V. Suryaprakash Rao- has vast experience in the field of promoting Research &
Development, academia and administration.
v. Mrs. Y.V. Lalithya Poorna – she has experience in Chemical and Pharmaceutical sector
vi. Dr A.R. Prasad – holds a Ph.D in Organic Chemistry and has a vast experience in R&D and
formulations in chemical industry.
vii. Mr. Y.V. Prashanth - holds a MS in Pharmacy and has experience in the field of Liquidity
Management, Client Development, Marketing, Receivables and Payables Management and
administration.
37
All Independent Directors possess the requisite qualifications and are experienced in their respective fields.
The Board also confirms that the Independent Directors fulfill the criteria specified in the regulations and
are independent of the management. The Independent Directors are appointed for a period of five years and
the Managing Director is not liable to retire by rotation. The other Non Independent Directors are subject to
retire by rotation.
All the necessary disclosures have been obtained from all the directors including their other directorships
and have also been taken on record by the Board.
Number of Board Meetings:
During the year (1 April, 2022 to 31 March, 2023) the Board met four times i.e. on 24 May, 2022,
5 August, 2022, 10 November, 2022 and 13 February, 2023 wherein the gap between two consecutive
board meetings was less than 120 days in all cases.
The dates for the board meetings are fixed after taking into account the convenience of majority of the
Directors and sufficient notice is given to them.
Composition, Attendance Record and Directorships held:
Notes:
a. Other Directorships exclude foreign companies and
b. Sri Y.S.R. Venkata Rao is the Promoter of the Company holding 69,04,715 shares in the Company, his
daughter Smt. Y. Lalithya Poorna is a Non-Executive Woman Director and his son Mr. Y.V. Prashanth
is an Executive Director.
c. Smt Y. Lalithya Poorna holds 1,10,000 shares in the Company.
d. The existing Directors as on date are holding directorship in this listed entity only.
e. Mr. Y.V. Prashanth’s appointment was approved by the members in the EGM held on
15 December, 2022.
i.
ii.
iii.
iv.
v.
vi.
vii.
38
22 August, 2022
INDEPENDENT DIRECTOR DATABANK REGISTRATION
Pursuant to a notification dated 22 October, 2019 issued by the Ministry of Corporate Affairs, all the
Independent Directors have completed the registration with the Independent Directors Databank.
Requisite disclosures have been received from the directors in this regard.
2. COMMITTEES OF THE BOARD
I. AUDIT COMMITTEE
The Audit Committee (AC) of the Board is headed by Sri G. Jayaraman, Independent Director. The
other members of the Committee are Dr. J.S. Yadav and Sri K.V. Suryaprakash Rao. The Composition
of the Audit Committee meets the requirement of Section 177 of the Companies Act, 2013 read with
SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The Audit Committee assists the Board in the dissemination of financial information and in
overseeing the accounting processes followed by the Company. The terms of reference of the audit
committee covers all matters specified in SEBI (LODR) Regulation 2015 and also those specified in
section 177 of the Companies Act, 2013. The terms of reference broadly include review of internal
audit report, statutory audit report, assessment of the efficacy of the internal control systems/ financial
reporting systems and reviewing the adequacy of the financial policies and practices followed by the
Company, compliance with legal and statutory requirements, the quarterly and annual financial
statements and related party transactions and reports its findings to the Board. The committee also
recommends the appointment of internal auditor, statutory auditor and also matters which are
specifically referred to it by the Board. It also reviews major accounting policies followed by the
Company.
The Chairman of the Audit Committee was present at the Annual General Meeting of the
Company held on 22 August 2022
During the year, the Audit Committee met 4 (Four) times and the attendance of members is as follows:
S. No.
Name of the Member
Category
No. of Meetings Attended
a. Sri. G. Jayaraman Independent Director 4
b. Dr J.S. Yadav Independent Director 4
c. Sri. K.V. Suryaprakash Rao Independent Director 4
II. NOMINATION AND REMUNERATION COMMITTEE
The Nomination and Remuneration Committee (NRC) is headed by Sri K.V. Prakash Rao,
Independent Director. The other members of the Committee are Dr. J.S. Yadav, Sri G. Jayaraman and
Dr. A.R. Prasad.
The NRC has reviewed and evaluated the performance evaluation criteria for Board and its
Committees and Directors including Independent Directors as per SEBI Circular dated January 5,
2017. Further, the NRC recommends appointment/ reappointment of Directors and any
remuneration/fee to be paid to Directors and also the appointments of employee’s one level below
the Board of Directors and KMP along with the remuneration to be paid to them. The
remuneration is fixed keeping in mind the person’s track record, his/ her potential individual
performance, the market trends and scales prevailing in the similar industry.
39
During the financial year 2022-23, the NRC had met two times and the attendance of members is as
follows:
S. No.
Name of the Member
Category
No. of Meetings
Attended
a. Sri. K.V. Suryaprakash Rao Independent Director 2
b. Sri. G. Jayaraman Independent Director 2
c. Dr J.S. Yadav Independent Director 2
d. Dr. A.R. Prasad Non-Executive 2
Non-Independent Director
Nomination and Remuneration policy
The objectives of the Policy
i. To laid down criteria and terms and conditions with regard to identifying persons who are
qualified to become Directors (Executive and Non-Executive) and persons who may be appointed
in Senior Management and Key Managerial positions.
ii. To determine remuneration to Directors, KMP and other senior Employees based on the
Company's size and financial position and trends and practices on remuneration prevailing in
peer companies.
iii. To carry out evaluation of the performance of Directors.
iv. To retain, motivate and promote talent and to ensure long term sustainability of talented managerial
persons and create competitive advantage.
v. Any other matter as the Board may decide from time to time.
Mechanism for Evaluation of Board
Evaluation of all Board members is done on an annual basis. The evaluation is done by the Board,
Nomination and Remuneration Committee and Independent Directors with specific focus on the
performance and effective functioning of the Board and Individual Directors.
Criteria for evaluation Directors/ KMP/ Senior Employees
• Leadership & Stewardship Abilities
• Contributing to clearly define Corporate objectives & Plans
• Communication of expectations & concerns clearly with subordinates
• Obtain adequate, relevant & timely information from external sources.
• Review & approval achievement of strategic and operational plans, objectives, budgets
• Regular monitoring of corporate results against projections
• Identify, monitor & mitigate significant corporate risks
• Assess policies, structures & procedures
• Direct, monitor & evaluate KMPs, senior officials
• Review management’s succession plan
• Effective meetings
• Assuring appropriate board size, composition, independence, structure
• Clearly defining roles & monitoring activities of committees
• Review of corporation’s ethical conduct
40
iii. STAKEHOLDERS’ RELATIONSHIP COMMITTEE
The Stakeholders Relationship Committee (SRC) is headed by Sri G. Jayarman, Independent
Director. The other members of the Committee are Sri Y.S.R. Venkata Rao, Dr. J.S. Yadav and
Sri K.V. Suryaprakash Rao.
The SRC deals with the requests for approving share transfer, transmissions, issue of duplicate share
certificates, re-materialisation of shares and other specific requests from shareholders. It also
addresses the investor grievances if any. Further, it also reviews the performance of the Registrar and
Share Transfer Agents. The Company had received requests for revalidation of dividend warrants and
for physical copies of the Annual Report. The requests were attended accordingly. Furthermore, the
Company is registered under the SCORES SEBI Complaints Redress System (SCORES) (vide
Circular Ref: CIR/OIAE/2/2011 dated June 3 2011) which is a web based platform to help investors to
lodge their complaints if any. All complaints received by SEBI against listed companies are dealt
through SCORES. As such there were no complaints received on the platform against the Company.
During the year under review, SRC met one time and the attendance of members is as follows:
iv. CORPORATE SOCIAL RESPONSIBILITY COMMITTEE
The Company had earned a profit of more than ` 5 crores during the Financial year 2021-22 thereby
the provisions of the Section 135 of the Companies Act, 2013 were applicable to the Company from
the Financial Year 2022-23. Thereby a Corporate Social Responsibility Committee (CSR) was
formed during the year under review.
The Corporate Social Responsibility Committee (CSR) is headed by Sri K.V.Suryaprakash Rao. The
other members of the Committee are Sri Y.S.R. Venkata Rao and Sri G. Jayaraman.
The CSR Committee is entrusted with the following functions namely; Formulate CSR Policy and
recommend the same to the Board of Directors, recommendation of CSR activities in line with
Schedule VII of the Companies Act 2013, recommendation of CSR Budget, spending the approved
CSR contribution/monitor if used the implanting agency service and submit the report in respect of
CSR activities to the Board. The CSR Committee’s composition is as per the provisions of the
Companies Act 2013.
During the year under review, CSR Committee met two times and the attendance of members is as
follows:
S. No.
Name of the Member
Category
No. of Meetings Attended
a. Sri. G. Jayaraman Independent Director 1
b. Sri Y.S.R. Venkata Rao Managing Director 1
c. Dr J.S. Yadav Independent Director 1
d. Sri. KV Suryaprakash Rao Independent Director 1
S. No.
Name of the Member
Category
No. of Meetings Attended
a. Sri. KV Suryaprakash Rao Independent Director 2
b. Sri Y.S.R. Venkata Rao Managing Director 2
c. Sri. G. Jayaraman Independent Director 2
41
3. MEETING OF INDEPENDENT DIRECTORS
As per the Schedule IV of the Companies Act 2013 and the Rule thereunder, the Independent
Directors of the Company had met once during the year without the attendance of Non-Independent
Directors and members of the Management. They had reviewed the performance of the Board and
discussed other important matters.
4. REMUNERATION PAID TO DIRECTORS
The remuneration payable to the directors is determined by the Board on the recommendation of the
nomination and remuneration committee. This is subject to the approval of the shareholders at the
General Meeting. The non executive directors do not draw any remuneration from the Company
except sitting fees for attending the meetings of the board and the committees.
Details of Remuneration paid to Directors during the financial year 2022-23
5. ANNUAL GENERAL MEETINGS AND EXTRAORDINARY GENERAL MEETING
The details of the Annual General Meetings / Extraordinary General Meeting held in the last three
financial years are as follows:
Annual General Meetings of the Company:
1) Dr. J.S.Yadav -- – 4.35 4.35
2) Sri. G. Jayaraman -- -- 4.55 4.55
3) Sri. Y.S.R. Venkata Rao 21.91 86.46 -- 108.37
4) Smt. Y. Lalithya Poorna -- -- 1.25 1.25
5) Sri. K.V. Surayaprakash Rao -- -- 4.55 4.55
6) Dr. A.R. Prasad 12.00 -- 2.95 14.95
7) Mr. Y.V. Prashanth 8.19 21.15 -- 29.34
S.
No.
Name of the Director
Commission/
Consultancy
Remuneration
Sitting Fee
Total
(All figures in ` Lakhs)
Year
Location
Date
Time
2019-20 Through VC hosted at Plot B-5, 26 September 2020 12:00 Noon.
IDA, Uppal, Hyderabad – 500039
2020-21 Through VC hosted at Plot B-5, 21 August 2021 11:15 A.M.
IDA, Uppal, Hyderabad – 500039
2021-22 Through VC hosted at Plot B-5, 22 August 2022 11:00 A.M.
IDA, Uppal, Hyderabad – 500039
Year
Location
Date
Time
2021-22 Through VC hosted at Plot B-5, 15 December 2022 11:00 A.M.
IDA, Uppal, Hyderabad – 500039
Extraordinary General Meeting(s) of the Company:
i. An Extra-Ordinary General Meeting of the shareholders was held during the year.
ii. No Postal Ballot was conducted during the year. None of the resolutions proposed for the
ensuing Annual General Meeting need to be passed by Postal Ballot.
42
iii. Special Resolutions passed during the previous three Annual General Meetings:
nd
a. 52 Annual General Meeting – 26 September 2020
Special Resolutions passed for the Re-appointment of Sri Y.S.R. Venkata Rao as a Managing
Director w.e.f. 1 May 2021.
rd
b. 53 Annual General Meeting – 21 August 2021- No Special Resolution was passed.
th
c. 54 Annual General Meeting- 22 August 2022- No Special Resolution was passed.
iv. In the last three Financial Years only one Extra Ordinary General Meeting during FY 2022-23 . was
held on 15 December, 2022. The Special Resolution passed during this EGM was for the appointment
of Mr. Y.V. Prashanth as Executive Director w.e.f. 10 November 2022.
v. E-Voting/ Poll:
E-Voting is conducted for all the business items covered in the above 3 Annual General Meetings in
Compliance with the Listing Agreement. CS B. Venkatesh Babu was appointed scrutinizer in all the
meetings and also the EGM.
DISCLOSURES
6. SUBSIDIARY COMPANIES
The Company has no subsidiary Company.
7. RISK MANAGEMENT
Periodic assessments to identify the risk areas are carried out to enable the Company to control risk
through a properly defined plan. The risks are classified as financial risks, operational risks and
market risks. The risks are taken into account while preparing the annual business plan for the year.
The Board is also periodically informed of the business risks and the actions taken to manage them.
8. WHISTLE BLOWER POLICY
The Company has an established mechanism for Directors / Employees to report concerns about
unethical behaviour, actual or suspected fraud, or violation of the code of conduct or ethics policy. It
also provides for adequate safeguards against victimization of directors/ employees who avail of the
mechanism. The Company affirms that no personnel have been denied access to the audit committee.
The Company has formulated a Policy of Vigil Mechanism and has established a mechanism that any
personnel may raise Reportable Matters.
9. RELATED PARTY TRANSACTION
There have been no materially significant related party transactions with the Company’s promoters,
directors, KMP or relatives which may have potential conflict with the interests of the Company at
large. The necessary disclosures regarding the Related Party Transactions at arm’s length basis are
given in the Board’s Report and Notes to accounts.
10. ACCOUNTING TREATMENT
The Company has followed the Ind AS accounting standards in the preparation of its financial
statements.
43
11. COMPLIANCES
There have been no instances of non-compliance by the Company on any matters related to the capital
markets, nor have any penalty/ strictures been imposed on the Company by the Stock Exchanges
or SEBI or any other statutory authority on such matters.
12. MEANS OF COMMUNICATION
The Quarterly, Half Yearly and Annual financial results are normally published by the Company in the
leading newspapers in English version circulating substantially in the whole of India and in Telugu
(being the Regional language) where the registered office is situated. The financial results are
also placed on Company’s website i.e. www.alkalimetals.com to access first-hand information
about the financial information of the Company. Besides this as required under the SEBI (LODR)
Regulations 2015 the said information is also sent to Stock exchanges (BSE & NSE).
13. CODE OF CONDUCT FOR THE BOARD OF DIRECTORS AND THE SENIOR
MANAGEMENT
The standards for business conduct provide that the directors and the senior management will
uphold ethical values and legal standards as the Company pursues its objectives and that honesty and
personal integrity will not be compromised under any circumstances. A copy of the said code of
conduct is available on Company’s website i.e.www.alkalimetals.com. The Board members and
senior management personnel have affirmed compliance with the code of conduct for the financial
year 2022-2023.
14. GENERAL SHAREHOLDER INFORMATION
i. Annual General Meeting
Date and time 21August 2023
Venue Through Video Conference
Book Closure Date 17August 2023 to 21 August 2023 (both days inclusive)
ii. Financial Year : 1 April 2023 to 31 March 2024
Financial Calendar 2023 - 2024 (tentative)
First Quarter results (April - June) : On or before 14 August
Second Quarter results (July – Sept) : On or before 14 November
Third Quarter results (Oct – Dec) : On or before 14 February
Annual Results audited (Audited) : On or before 30 May
iii. Particulars of Dividend for the year ended 31 March 2023 ` 2 per share as Final Dividend
subject to approval of the shareholders at the ensuing AGM.
iv. Listing of Shares
Name of the Stock Exchange Stock Code
Bombay Stock Exchange Limited (BSE) 533029
National Stock Exchange of India Limited (NSE) ALKALI
ISIN allotted by Depositories (Company ID Number) INE773I01017
Note: Annual Listing fees for the year 2023-24 were duly paid to the above stock exchanges
44
a. Stock Market Data for the Financial Year 2022-23
(All figures in `)
April 2022 109.65 77.35 96.70 108.55 79.70 94.95
May 2022 97.70 80.00 85.55 98.95 78.55 85.55
June 2022 85.80 72.00 75.60 86.95 74.50 76.55
July 2022 85.00 73.60 80.80 85.45 73.60 80.80
August 2022 96.80 81.80 92.85 96.75 82.30 92.75
September 2022 108.90 88.60 101.20 108.75 88.65 101.30
October 2022 153.70 98.50 121.15 154.00 102.00 121.05
November 2022 147.80 112.60 133.65 147.55 112.25 134.40
December 2022 148.80 104.05 128.00 148.00 104.15 128.05
January 2023 173.90 120.00 131.25 173.75 120.20 129.00
February 2023 135.00 107.35 107.35 135.45 107.20 107.20
March 2023 115.00 85.30 91.50 116.00 85.25 91.60
NSE BSE
Month
High
Low
Closing High
Low
Closing
April May June July August September
No. of shares Traded 1,40,018 44,024 26,767 27,569 68,809 1,66,645
No. of Trades 3,194 640 617 1,153 2,600 4,676
October November December January February March
No. of shares Traded 6,98,135 4,80,143 3,13,751 5,45,063 63,547 56,169
No. of Trades 19,355 17,309 11,656 14,402 3,117 1,206
b. BSE Share Trade Information during Financial Year 2022-23
Total Traded Turnover on BSE - ` 3,340.93 Lakhs
c. NSE Share Trade Information during Financial Year 2022-23
April May June July August September
No. of shares Traded 5,89,906 1,15,036 1,14,031 1,55,038 6,75,492 9,94,427
No. of Trades 10,114 1,734 2,298 4,554 12,337 17,588
October November December January February March
No. of shares Traded 51,78,492 39,44,702 24,29,373 48,11,324 2,02,403 3,63,804
No. of Trades 94,670 80,942 61,466 80,421 4,029 10,024
Total Traded Turnover on NSE - ` 2,595.73 Lakhs.
45
d. Shareholding Pattern as on 31 March 2023
Clearing Member 15 12 8,195 0.0804
Corporate Body 60 57 35,783 0.3514
Directors/relative 2 2 70,494 0.6923
FPI 1 1 51,500 0.5058
IEPF 1 1 18,014 0.1769
NRI 144 143 1,89,421 1.8603
Promoter 1 1 69,04,715 67.8096
Resident 13,437 13,096 29,04,383 28.5232
Stock Broker 1 1 1 0.0001
Overall Total: 13,662 13,314 1,01,82,506 100.0000
Category
Count
Merged Pan Count
No. of Shares
Percentage (%)
e. Distribution of Shareholding as on 31 March 2023
Between 10 - 5000 12,372 92.9247 10,70,997 1,07,09,970.00 10.5180
Between 5001 - 10000 503 3.7780 4,03,917 40,39,170.00 3.9668
Between 10001 – 20000 227 1.7050 3,26,187 32,61,870.00 3.2034
Between 20001 – 30000 77 0.5783 1,93,206 19,32,060.00 1.8974
Between 30001 – 40000 36 0.2704 1,30,313 13,03,130.00 1.2798
Between 40001 – 50000 29 0.2178 1,38,562 13,85,620.00 1.3608
Between 50001 -100000 38 0.2854 2,70,158 27,01,580.00 2.6532
> 100000 32 0.2403 76,49,166 7,64,91,660.00 75.1207
Overall Total: 13,314 100.0000 1,01,82,506 10,18,25,060.00 100.0000
Category
(Amount in `)
No. of
Share
Holders
% of Total
Share
Holders
No. of
Shares
Value of Shares
(`)
% of Total
Value
Note: We have clubbed the number of members having common pan.
f. Registrar and Share Transfer Agents
Cameo Corporate Services Limited
Subramanian Building, No.1, Club House Road
Chennai-600 002,
044-28460390/948
044-28460129
Contact Person : Mr. Murali
46
g. Share Transfer System
The shares are transferred within the stipulated period as per the listing Agreement. 99.99 % of
Company Shares are in the dematerialized form.
h. Reconciliation of Share Capital Audit
A quarterly audit was conducted by a practicing Company secretary, reconciling the issued and
listed capital of the Company with the aggregate of the number of shares held by investors in
physical form and in the depositories and the said certificates were submitted to the stock
exchanges within the prescribed time limit.
i. Information in respect of transfer of shares to IEPF and unclaimed dividends due for
remittance into Investor Education and Protection Fund (IEPF) is given below:
Under the provisions of the Companies Act, 2013 dividends that remain unclaimed for a period of
seven years from the date of declaration are required to be transferred to the Investor Education
and Protection Fund (IEPF) administered by the Central Government and also during the financial
year 2017-18 MCA also notifies the transfer of under laying shares of unclaimed/unpaid dividend
for seven years to IEPF account. Company transferred the unpaid interim dividend for FY 2015-
16 to IEPF. With regard to transfer of under laying shares, followed the procedure laid down by
issuing individual notices and paper advertisement for unclaimed/unpaid dividend laying shares
pertains to financial year 2015-16 and transferred the 1672 Shares of ` 10 each belonging to 25
shareholders to IEPF account. The Voting rights of these shares will remain frozen till the rightful
owner of such shares claim the shares.
Your Company will undertake necessary steps for transfer of final unclaimed/unpaid dividend
laying shares pertains to financial year 2015-16 in accordance with the applicable provisions of
the Act and Rules and ensure the transfer to IEPF account. Shareholders are required to claim the
unpaid dividend if any immediately.
The unclaimed dividend as on 31 March 2023 with due date of transfer to IEPF is as follows:
2015 -16 (final dividend) 30 July 2016 29 September 2023
2016-17 4 August 2017 3 September 2024
2017-18 30 June, 2018 29 July 2025
2018-19 3 August 2019 2 September 2026
2019-20 (interim dividend) 29 January 2020 28 February 2027
2020-21 (final dividend) 21 August 2021 20 September 2028
2021-22 (final dividend) 22 August 2022 21 September 2029
Financial Year Date of declaration
Date of transfer to IEPF
Shareholders are requested to claim the unpaid dividend if any immediately to avoid transfer to IEPF
authorities along with the under lying shares pertaining to the respective years as above.
j. Plant Locations
The Company’s plants are located at:
Unit-I : Plot No. B-5, Block-III, IDA, Uppal, Hyderabad – 500 039, Telangana.
Unit-II : Survey No. 299 to 302, Dommara Pochampally Village,
Qutubullapur Mandal, Medchal District - 500043, Telangana.
Unit-III : J.N. Pharma City, Parwada, Visakhapatnam – 531019, Andhra Pradesh.
47
k. Address for correspondence:
Registered office Address: Plot No. B-5, Block-III, IDA,
Uppal, Hyderabad – 500 039
15. The related party transactions and Auditor remuneration details are provided in the Notes to financial
statements which will form part of the Annual Report.
16. NON-MANDATORY DISCLOSURES
The Company has complied with the following non-mandatory requirements as per the listing
agreement:
i. Company had appointed separate person to the position of Chairman and Managing Director.
ii. The Internal Auditor (Independent firm of Chartered Accountants) of the Company directly
reports to the Audit Committee.
DECLARATION ON COMPLIANCE WITH CODE OF CONDUCT
I declare that the Company has received affirmation of compliance with the “Code of Business
conduct for Directors and Senior Executives” laid down by the Board of Directors, from all the
Directors and Senior Management Personnel of the Company, to whom the same is applicable, for the
Financial Year ended 31 March 2023.
Place : Hyderabad
Date : 27 May, 2023
Y.S.R. Venkata Rao
Managing Director
DIN: 00345524
48
CERTIFICATION BY MANAGING DIRECTOR (MD)
AND THE CHIEF FINANCIAL OFFICER (CFO) TO THE BOARD
To
The Board of Directors
Alkali Metals Limited
We Y.S.R.Venkata Rao, Managing Director and K.Uma Kumari, Chief Financial Officer of the Company
hereby certify to the Board that:
1. We have reviewed the financial statements and cash flow statement for the financial year ended
31 March, 2023 and that to the best of our knowledge and belief:
i. These statements do not contain any materially untrue statement or omit any material fact or
contain statements that might be misleading;
ii. These statements together present a true and fair view of the Company’s affairs and are in
compliance with existing accounting standards (IndAs), applicable laws and regulations.
2. To the best of our knowledge and belief, no transactions entered into by the Company during the year
ended 31 March, 2023 are fraudulent, illegal or violative of the Company’s code of Conduct.
3. We accept responsibility for establishing and maintaining internal controls for financial reporting and
that we have evaluated the effectiveness of internal control systems of the Company pertaining to
financial reporting and we have disclosed to the Auditors and Audit Committee, deficiencies in the
design or operation of such internal controls, if any, of which we are aware and the steps have been
taken or proposed to be taken to rectify these deficiencies.
4. We have indicated to the Auditors and the Audit Committee
i. That there are no significant changes in internal control over financial reporting during the year;
ii. That there are no significant changes in Accounting Policies during the year; and
iii. That there are no instances of significant fraud of which we have become aware and the
involvement therein, if any, of the management or an employee having a significant role in the
Company’s internal control system over financial reporting.
K. Uma Kumari
Chief Financial Officer
Place : Hyderabad
Date : 27 May, 2023
Y.S.R.Venkata Rao
Managing Director
DIN: 00345524
49
INDEPENDENT AUDITORS’ CERTIFICATE ON CORPORATE GOVERNANCE
To
The Members of
Alkali Metals Limited
1. We, G Nagendrasundram & CO, Chartered Accountants, the Statutory Auditors of Alkali Metals Limited
(“the Company”), have examined the compliance of conditions of Corporate Governance by the Company,
for the year ended on 31 March, 2023, 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 Obligations and Disclosure
Requirements) Regulations, 2015 as amended (“SEBI Listing Regulations”).
Managements’ Responsibility
2. The compliance of conditions of Corporate Governance is the responsibility of the Management. This
responsibility includes the 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.
Auditor’s Responsibility
3. Our responsibility is limited to examining the procedures and implementation thereof, adopted by the
Company for ensuring compliance with the conditions of the Corporate Governance. It is neither an audit
nor an expression of opinion on the financial 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 representation 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 31 March, 2023.
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 G. Nagendrasundram & Co
Chartered Accountants
(FRN: 005355S)
B.N. Bharathi
Partner
M.No. 236639
UDIN:23236639BGYHKX3301
Place : Hyderabad
Date : 27 May, 2023
50
CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS
(pursuant to Regulation 34(3) and Schedule V Para C clause (10)(i) of the SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015)
To,
The Members of
Alkali Metals Limited.,
B-5, IDA, Uppal, Hyderabad
I have examined the relevant registers, records, forms, returns and disclosures received from the Directors
of Alkali Metals Limited having CIN L27109TG1968PLC001196 and having registered office at B-5,
Block III, IDA, Uppal, Hyderabad – 500 039 (hereinafter referred to as ‘the Company’), produced before
me by the Company for the purpose of issuing this Certificate, in accordance with Regulation 34(3) read
with Schedule V Para-C Sub clause 10(i) of the SEBI (LODR) Regulations, 2015.
In my opinion and to the best of my information and according to the verifications (including Directors
Identification Number (DIN) status at the portal www.mca.gov.in) as considered necessary and
explanations furnished to me by the Company & its officers, I hereby certify that none of the Directors on
the Board of the Company as stated below for the Financial Year ending on 31 March, 2023 have been
debarred or disqualified from being appointed or continuing as Directors of companies by the Securities
and Exchange Board of India, Ministry of Corporate Affairs, or any such other Statutory Authority
Ensuring the eligibility of, for the appointment / continuity of every Director on the Board is the
responsibility of the management of the Company. Our responsibility is to express an opinion on these
based on our verification. This certificate is neither an assurance as to the future viability of the Company
nor of the efficiency or effectiveness with which the management has conducted the affairs of the
Company.
1. Dr J.S. Yadav 02014136 31 March, 2008
2. Sri G. Jayaraman 01461157 7 July, 2007
3. Sri. K.V. Surya Prakash Rao 06934146 15 October, 2018
4. Sri Y.S.R. Venkata Rao 00345524 1 July, 1991
5. Mrs. Y. Lalithya Poorna 00345471 10 April, 2010
6. Dr. A.R. Prasad 08765436 10 February, 2021
7. Mr. Y.V. Prashanth 00345418 10 November, 2022
S.
No.
Name of Director
DIN
Date of appointment in
Company
Signature:
Name: B. Venkatesh Babu
Membership No.: F6708
CP NO.: 5103, PR NO. 1954/2022
UDIN: F006708E000393666
Place : Hyderabad
Date : 27 May, 2023
51
INDEPENDENT AUDITOR’S REPORT
To the Members of
Alkali Metals Limited
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying financial statements of ALKALI METALS LIMITED (“the Company”),
which comprise the Balance Sheet as at 31March, 2023, the Statement of Profit and Loss (including Other
Comprehensive Income), the Statement of Changes in Equity and statement of Cash Flows for the year then
ended, and Notes to the Financial Statements, including a summary of significant accounting policies and
other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid
financial statements give the information required by the Companies Act, 2013 in the manner so required and
give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of
the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, (“Ind AS”) and
other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31,
2023, and its Profit and other comprehensive income, changes in equity and its cash flows for the year ended
on that date.
Basis for Opinion
We conducted our audit of the financial statements in accordance with the Standards on Auditing (SAs)
specified under section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are
further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our
report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of
Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the
financial statements under the provisions of the Companies Act, 2013 and the Rules thereunder, and we have
fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion on the financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit
of the financial statements of the current period. These matters were addressed in the context of our audit of
the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters. We have determined that there are no key audit matters to communicate in our
report.
Other Information
The Company’s Board of Directors is responsible for the preparation of the other information. The other
information obtained at the date of this auditor’s report comprises the information included in the
Management Discussion and Analysis, Board’s Report including Annexures to Board’s Report and
Shareholder’s Information but does not include the financial statements and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form
of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.
52
If, based on the work we have performed on the other information obtained prior to the date of this auditor’s
report, we conclude that there is a material misstatement of this other information, we are required to report
that fact. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Financial Statements
The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Companies
Act, 2013 (“the Act”) with respect to the preparation of these financial statements that give a true and fair
view of the financial position, financial performance, total comprehensive income, changes in equity and
cash flows of the Company in accordance with the accounting principles generally accepted in India,
including the Ind AS specified under section 133 of the Act. This responsibility also includes maintenance of
adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the
Company and for preventing and detecting frauds and other irregularities; selection and application of
appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and
design, implementation and maintenance of adequate internal financial controls, that were operating
effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation
and presentation of the financial statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, the management is responsible for assessing the Company’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the management either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances. Under section 143(3)(i) of the Companies Act, 2013, we are also
responsible for expressing our opinion on whether the company has adequate internal financial controls
system in place and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
53
conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If
we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report
to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and events in a
manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that
may reasonably be thought to bear on our independence, and where applicable, related safeguards.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor’s Report) Order, 2020 issued by the Central Government of
India in terms of sub-section (11) of Section 143 of the Act (hereinafter referred to the “Order”), and on
the basis of such checks of the books and records of the Company as we considered appropriate and
according to the information and explanations given to us, we give in the Annexure-1 a statement on the
matters specified in paragraphs 3 and 4 of the Order.
2. As required by section 143(3) of the Act, based on our audit we report that:
a. We have sought and obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purpose of our audit.
b. In our opinion, proper books of account as required by law have been kept by the Company so far
as it appears from our examination of those books.
c. The Balance Sheet, the Statement of Profit and Loss (including other comprehensive income), the
statement of cash flows and the statement of changes in equity dealt with by this Report are in
agreement with the books of account.
d. In our opinion, the aforesaid said financial statements comply with the Ind AS specified under
Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e. On the basis of written representations received from the Directors as on 31 March, 2023, and
taken on record by the Board of Directors, none of the directors is disqualified as on
31 March , 2023, from being appointed as a director in terms of Section 164(2) of the Act.
f. With respect to the adequacy of the internal financial controls over financial reporting of the
Company and the operating effectiveness of such controls, refer to our separate Report in
“Annexure -2”.
g. With respect to the other matters to be included in the Auditor’s Report in accordance with the
requirements of section 197(16) of the Act, as amended, we report that the remuneration paid by
the Company to its directors during the year, in our opinion and to the best of our information and
according to the explanations given to us, is in accordance with the provisions of section 197 of the
Act.”
54
h. With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11
of the Companies (Audit and Auditors), 2014, in our opinion and to the best of our information and
according to the explanations given to us;
i. The Company has disclosed the impact of pending litigations on its financial position in its
Ind AS financial statements.
ii. In our opinion and as per the information and explanations provides to us, the Company has
not entered into any long-term contracts including derivative contracts, requiring provision
under applicable laws or accounting standards, for material foreseeable losses, and
iii. There has been no delay in transferring the amounts required to be transferred, to the
Investor Education and Protection Fund by the Company.
iv. a. The Management has represented that, to the best of it’s knowledge and belief, as
disclosed in the note 51to the accounts, no funds have been advanced or loaned or
invested (either from borrowed funds or share premium or any other sources or kind of
funds) by the Company to or in any other person or entity, including foreign entities
(“Intermediaries”), with the understanding, whether recorded in writing or otherwise,
that the Intermediary shall, directly or indirectly lend or invest in other persons or
entities identified in any manner whatsoever by or on behalf of the Company
(“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of
the Ultimate Beneficiaries.
b. The Management has represented, that, to the best of it’s knowledge and belief, as
disclosed in the note 51 to the accounts, no funds have been received by the Company
from any person or entity, including foreign entities (“Funding Parties”), with the
understanding, whether recorded in writing or otherwise, that the Company shall,
directly or indirectly, lend or invest in other persons or entities identified in any manner
whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide
any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
c. Based on the audit procedures performed that have been considered reasonable and
appropriate in the circumstances, nothing has come to our notice that has caused us to
believe that the representations under sub-clause (i) and (ii) of Rule 11(e) contain any
material mis-statement.
i. The dividend declared and paid during the year by the company is in compliance of Sec.123 of the
Companies Act, 2013.
j. The Company has used such accounting software for maintaining its books of account which has a
feature of recording audit trail (edit log) facility and the same has been operated throughout the
year for all transactions recorded in the software and the audit trail feature has not been tampered
with and the audit trail has been preserved by the company as per the statutory requirements for
record retention.
For G. Nagendrasundram & Co
Chartered Accountants
(FRN: 005355S)
B.N. Bharathi
Partner
M.No. 236639
UDIN:23236639BGYHKW2736
Place : Hyderabad
Date : 27 May, 2023
55
ANNEXURE - 1 TO THE INDEPENDENT AUDITORS’ REPORT:
(Referred to in Paragraph 1 under section ‘Report on Other Legal and Regulatory Requirements’
of our report of even date)
1.1.1. According to the information and explanations given to us, the Company is maintaining proper
records showing full particulars including quantitative details and situation of Property, Plant and
Equipment.
1.1.2. According to the information and explanations given to us, the Company is maintaining proper
records showing full particulars of intangible assets.
1.2. According to the information and explanations given to us, all the Property, Plant and Equipment
have been physically verified by the management at reasonable intervals and no material
discrepancies were noticed on such verification.
1.3. The title deeds of all the immovable properties disclosed in the financial statements are held in the
name of the Company.
1.4. According to the information and explanations given to us, the company has not revalued its
Property, Plant and Equipment (including Right of Use assets) or intangible assets or both during the
year.
1.5. According to the information and explanations given to us, no proceedings have been initiated or are
pending against the company for holding any benami property under the Benami Transactions
(Prohibition) Act,1988(45 of 1988) and rules made thereunder.
2.1 According to the information and explanations given to us, the inventories have been physically
verified at reasonable intervals by the management and in our opinion, the coverage and procedure
of such verification by the management is appropriate. No discrepancies of 10% or more in the
aggregate for each class of inventory were noticed.
2.2 The company has been sanctioned working capital limits in excess of five crore rupees, in aggregate
from banks or financial institutions on the basis of security of current assets and the quarterly returns
or statements filed by the company with such banks or financial institutions are in agreement with
the books of accounts of the Company.
3. According to the information and explanations given to us, company has not made investments in,
provided any guarantee or security or granted any loans or advances in the nature of loans, secured
or unsecured, to companies, firms, Limited Liability Partnerships or any other parties. Hence, the
matters to be reported under the sub-clauses (a), (b), (c), (d), (e ) and (f) are not applicable to the
company.
4. According to the information and explanations given to us, the Company has not granted any loans,
has not made any investments, nor given any guarantee or security to parties covered under the
provisions of Section 185 and 186 of the Companies Act.
5. According to the information and explanations given to us, the Company has not accepted any
deposits or amounts which are deemed to be deposits, requiring compliance under the directives
issued by Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant
provisions of the Companies Act and the rules framed there under.
6. According to the information given to us, the maintenance of cost records has not been specified by
the Central Government under sub-section (1) of Section 148 of the Companies Act and in our
56
opinion, prima facie, such accounts and records have been so made and maintained. However, we
have not carried out any detailed examination of such accounts and records.
7.1 According to the information and explanations given to us, the company is generally regular in
depositing undisputed statutory dues including goods and service tax, provident fund, employees'
state insurance, income tax, sales tax, service-tax duty of customs, duty of excise, value added tax,
cess and any other statutory dues to the appropriate authorities.
According to the information and explanations given to us, there are no arrears of outstanding
statutory dues as at the last day of the financial year under audit for a period of more than six months
from the date they became payable except Customs duty of ` 10.98 lakhs.
7.2 According to the information and explanations given to us, there are no statutory dues referred to in
sub-clause (a) which have not been deposited on account of dispute except the following:
Nature of the Statute &
Nature of due
Amount in
` Lakhs
Period
Forum where
litigation is pending
The department of GST Telangana
has raised demandpertaining to Input
Tax Credit& Penalties
15.24 F Y 2017-18
and F Y 2018- 19
GST - Appellate
Authority
The department of GST Andhra
Pradesh has raised demandpertaining
to Input Tax Credit& Penalties
0.93 F Y 2017-18
GST - Appellate
Authority
8. According to the information and explanations given to us, there are no transactions that are not
recorded in the books of account, which have been surrendered or disclosed as income during the
year in the tax assessments under the income Tax Act,1961.
9.1 According to the information and explanations given to us, the Company has not defaulted in
repayment of loans or other borrowings or in the payment of interest thereon to any lender.
9.2 According to the information and explanations given to us, the company is not declared as a wilful
defaulter by any bank or financial institution or other lender.
9.3 According to the information and explanations given to us, the term loans taken during the year were
applied for the purpose for which loans were obtained.
9.4 According to the information and explanations given to us, the funds raised by the company on
short-term basis have not been utilised for long-term purposes.
9.5 According to the information and explanations given to us, the company has not taken any funds
from any entity or person on account of or to meet the obligations of its subsidiaries, associates or
joint ventures.
9.6 According to the information and explanations given to us, the company has not raised loans during
the year on the pledge of securities held in its subsidiaries, joint ventures or associate companies.
10.1 According to the information and explanations given to us, the Company has not raised any money
by way of initial public offer or further public offer, during the year under audit.
57
10.2 According to the information and explanations given to us, the Company has not made any
preferential allotment or private placement of shares or convertible debentures (fully, partially or
optionally) during the year under review. Hence, compliances of reporting requirement under
Section 42 and Section 62 of the Companies Act, 2013, whether the funds raised have been used for
the purposes for which they were so raised, is not applicable to the Company.
11.1 According to the information and explanations given to us and based upon the audit procedures
performed by us, any fraud by the Company has not been noticed during the year. However, as per
information given by the Company, cyber fraud has happened upon the Company involving an
amount of `.15.65 Lakhs during the year.
11.2 According to the information and explanations given to us and based upon the audit procedures
performed by us, no report under sub-section (12) of section 143 of the Companies Act has been
filed by the Auditors in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors)
Rules,2014 with the Central Government.
11.3 According to the information and explanations given to us, the company has not received any
whistle-blower complaints during the year, and hence, considering the same by us does not arise.
12. As the Company is not a Nidhi Company under the provisions of the Companies Act, 2013 read with
Nidhi Rules, 2014, the matters to be reported under sub-clauses (a), (b) and (c) of clause (xii) are not
applicable to the Company.
13. According to the information and explanations given to us, all transactions with the related parties
are in compliance with the provisions of Section 177 and 188 of the Companies Act wherever
applicable. According to the information given to us, details of such transactions have been
disclosed in the financial statements as required by the applicable accounting standards.
14.1 In our opinion, the company has an internal audit system commensurate with the size and nature of
its business.
14.2 We have considered the reports of Internal Auditors for the period under audit.
15. According to the information and explanations given to us, the Company has not entered into any
non-cash transactions with directors or persons connected with him and hence, reporting
requirement on compliance with the provisions of Section 192 of the Companies Act is not
applicable.
16. According to the information and explanations given to us and in our opinion, the company is not
required to be registered under section 45-IA of the Reserve Bank of India Act, 1934. As the
Company is not engaged in any non-banking financial or housing finance activity, nor is a Core
Investment Company nor having more than one Core Investment Company as part of the Group, the
matters to be reported under sub-clauses (b), (c) and (d) of clause (xvi) are not applicable to the
Company.
17. The Company has not incurred cash losses during the financial covered by audit and in the
immediately preceding financial year.
18. There is no resignation of the Statutory Auditors during the year.
19. According to the information and explanations given to us and on the basis of the financial ratios,
ageing and expected dates of realisation of financial assets and payment of financial liabilities, other
information accompanying the financial statements, our knowledge of the plans of the Board of
58
Directors and the management and in our opinion and based upon our examination of the evidence
supporting the assumptions furnished to us, no material uncertainty exists as on the date of audit
report that the company is capable of meeting its liabilities existing at the date of balance sheet date
as and when they fall due within a period of one year from the balance sheet date.
20. According to the information and explanations given to us, during the year the Company has spent
required CSR funds and transfer of funds to a Fund specified in Schedule VII to the Companies Act,
as the provisions of Sec.135 do not arise.
For G. Nagendrasundram & Co
Chartered Accountants
(FRN: 005355S)
B.N. Bharathi
Partner
M.No. 236639
UDIN:23236639BGYHKW2736
Place : Hyderabad
Date : 27 May, 2023
59
ANNEXURE – 2 TO THE INDEPENDENT AUDITOR’S REPORT:
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act,
2013 (“the Act”):
We have audited the internal financial controls over financial reporting of ALKALI METALS LIMITED (“the
Company”) as of 31 March, 2023 in conjunction with our audit of the financial statements of the Company for
the year ended on that date.
Management’s Responsibility for Internal Financial Controls
The Company’s management is responsible for establishing and maintaining internal financial controls based on
the internal control over financial reporting criteria established by the Company considering the essential
components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over
Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the
design, implementation and maintenance of adequate internal financial controls that were operating effectively
for ensuring the orderly and efficient conduct of its business, including adherence to company’s policies, the
safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the
accounting records, and the timely preparation of reliable financial information, as required under the
Companies Act, 2013.
Auditors’ Responsibility
Our responsibility is to express an opinion on the Company's internal financial controls over financial reporting
based on our audit.
We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over
Financial Reporting (the “Guidance Note”) and the Standards on Auditing, issued by ICAI and deemed to be
prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal
financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of
Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal
financial controls over financial reporting was established and maintained and if such controls operated
effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial
controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls
over financial reporting included obtaining an understanding of internal financial controls over financial
reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating
effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material misstatement of the financial statements, whether due
to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion on the Company’s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company's internal financial control over financial reporting is a process designed to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles. A company's internal financial control
over financial reporting includes those policies and procedures that
60
For G. Nagendrasundram & Co
Chartered Accountants
(FRN: 005355S)
B.N. Bharathi
Partner
M.No. 236639
UDIN:23236639BGYHKW2736
1. Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions
and dispositions of the assets of the company;
2. Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial
statements in accordance with generally accepted accounting principles, and that receipts and expenditures
of the company are being made only in accordance with authorisations of management and directors of the
company; and
3. Provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or
disposition of the company's assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the
possibility of collusion or improper management override of controls, material misstatements due to error or
fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over
financial reporting to future periods are subject to the risk that the internal financial control over financial
reporting may become inadequate because of changes in conditions, or that the degree of compliance with the
policies or procedures may deteriorate.
Opinion:
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over
financial reporting and such internal financial controls over financial reporting were operating effectively as at
31 March, 2023, based on the internal control over financial reporting criteria established by the Company
considering the essential components of internal control stated in the Guidance Note on Audit of Internal
Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India.
Place : Hyderabad
Date : 27 May, 2023
61
BALANCE SHEET AS AT MARCH 31, 2023
(` in Lakhs)
I. ASSETS
1. NON-CURRENT ASSETS
a. Property, Plant and Equipment 4 4,563.20
b. Right to Use Asset 5 63.84
c. Capital Work-in-progress 6 62.74
d. Intangible Assets 7 -
e. Financial Assets
i. Other Financial Assets 8 80.58
f. Deferred Tax Assets 9 459.95
g. Other Non Current Assets 10 45.00
5,275.31
2. CURRENT ASSETS
a. Inventories 11 2,569.95
b. Financial Assets
i. Trade Receivables 12 1,339.63
ii. Cash and Cash Equivalents 13 200.88
iii. Other Bank Balances 14 55.69
iv. Other Financial Asset 15 1.92
c. Other Current Assets 16 508.56
4,676.62
Total Assets 9,951.93
II. EQUITY AND LIABILITIES
1. EQUITY
a. Equity Share Capital 17 1,018.25
b. Other Equity 18 4,190.01
5,208.26
2. NON-CURRENT LIABILITIES
a. Financial Liabilities
i. Borrowings 19 200.51
ii Lease Liabilities 20 -
b. Provisions 21 25.38
c. Deferred Tax Liability (Net) 22 298.06
d. Other Non Current Liabilities 23 424.37
948.33
3. CURRENT LIABILITIES
a. Financial Liabilities
i. Borrowings 24 1,516.73
ii. Lease Liabilities 25 63.62
iii. Trade Payables 26 1,738.72
iv. Other Financial Liabilities 27 16.55
b. Other Current Liabilities 28 364.49
c. Provisions 29 31.39
d. Current Tax Liabilities 30 63.90
3,795.33
Total Equity And Liabilities 9,951.93
4,449.92
497.39
132.67
-
101.55
525.08
23.54
5,730.16
2,822.40
1,369.19
109.80
21.10
2.26
498.09
4,822.85
10,553.01
1,018.25
4,268.45
5,286.70
97.82
417.24
25.41
383.45
125.55
1,049.47
1,760.46
106.45
1,845.22
5.50
408.56
43.60
47.05
4,216.83
10553.01
The accompanying notes form an integral part of this financial statements.
Particulars
Note
No.
As at
31.03.2023
As at
31.03.2022
As per our Report attached
For G. Nagendrasundaram & Co
Chartered Accountants
(FRN 005355S)
Place : Hyderabad
Dated: May 27, 2023
B.N. Bharathi
Partner
M. No.236639
For and on Behalf of Board of Directors
Alkali Metals Limited
Y.S.R. Venkata Rao
Managing Director
DIN: 00345524
Dr. J.S. Yadav
Chairman
DIN: 02014136
K. Uma Kumari
Chief Financial Officer
Siddharth Dubey
Company Secretary
62
STATEMENT OF CHANGES IN EQUITY
(` in Lakhs)
Balance At the
Beginning of
reporting Period
Restated balance at the
Beginning of the current
Reporting Period
Changes in equity
Share capital during
the Current Year
Balance at the End
of The Current
Reporting Period
B. Other Equity
1,018.25
- -
1,018.25
(` in Lakhs)
Balance at the
beginningof the
previous reporting
period
Restated balance at the
Beginning of the
Previous Reporting
Period
Changes in equity
Share capital during
the Previous Year
Balance at the End
of The Previous
Reporting Period
ii. Previous Reporting Year Ended March 31, 2022
1,018.25
- -
1,018.25
(` in Lakhs)
Reserves and Surplus
Particulars
Securities
Premium
General
Reserves
Investment
subsidy
Retained
Earnings
Revaluation
Surplus
Other items
of Other
Comprehensive
Income
(Specify
Nature)
Total
Balance at the beginning of the 2,371.50 913.44 10.00 811.70 83.37 - 4,190.01
current reporting period - April 1,2022
Changes in accounting policy or - - - - - - -
prior period errors
Restated balance at the beginning of - - - - - - -
current reporting period
Total Comprehensive Income
for the Current Year - - - 282.09 - - 282.09
Dividends - - - (203.65) - - (203.65)
Transfer to retained earnings - - - - - -
Any other change (to be Specified) - - - - - - -
Balance at the end of the current 2,371.50 913.44 10.00 890.15 83.37 - 4,268.45
reporting period - March 31, 2023
3
63
A. Equity
2. Previous Reporting Year
Place : Hyderabad
Dated: May 27, 2023
B.N. Bharathi
Partner
M. No.236639
For and on Behalf of Board of Directors
Alkali Metals Limited
As per our Report attached
For G. Nagendrasundaram & Co
Chartered Accountants
(FRN 005355S)
Y.S.R. Venkata Rao
Managing Director
DIN: 00345524
Dr. J.S. Yadav
Chairman
DIN: 02014136
K. Uma Kumari
Chief Financial Officer
Siddharth Dubey
Company Secretary
(` in Lakhs)
Reserves and Surplus
Particulars
Securities
Premium
General
Reserves
Investment
subsidy
Retained
Earnings
Revaluation
Surplus
Other items
of Other
Comprehensive
Income
(Specify
Nature)
Total
Balance at the beginning of the 2,371.50 913.44 10.00 540.39 83.37 - 3,918.69
previous reporting period - April 1, 2021
Changes in accounting policy or - - - - - - -
prior period errors
Restated balance at the beginning of - - - - - - -
previous reporting period
Total Comprehensive Income
for the previous Year - - - 352.78 - - 352.78
Dividends - - - (81.46) - - (81.46)
Transfer to retained earnings - - - - - -
Any other change (to be Specified) - - - - - - -
Balance at the end of the previous 2,371.50 913.44 10.00 811.71 83.37 - 4,190.01
reporting period - March 31, 2022
64
1. REVENUE
a. Revenue from Operations 31 9,101.59
b. Other Income 32 29.09
Total Revenue 9,130.68
2. EXPENSES
a. Cost of Materials Consumed 3,751.57
b. Changes in Inventories of Finished Goods
Work-in-Progress and Stock-in-Trade 33 93.50
c. Employee Benefits Expense 34 1,236.64
d. Finance Costs 35 263.13
e. Depreciation & Amortisation Expenses 36 385.87
f. Corporate Social Responsibility Expenses 37 -
g. Other Expenses 38 2,881.52
Total Expenses 8,612.24
3. Profit for the year before exceptional items & tax 518.44
4. Exceptional Items 39 15.03
5. Profit Before Tax 503.41
6. Tax Expense
a. Current Tax (MAT) 84.89
Less: MAT Credit Entitlement (84.89)
b. Tax Pertaining to Earlier Years -
c. Deferred Tax For The Year 155.33
Total Tax Expenses 155.33
7. Profit / (Loss) for the year 348.08
8. Other Comprehensive Income (net)
Items that will not be reclassified to P&L a/c
Remeasurement of defined benefit plan 4.70
Current Tax (MAT) 0.78
Less: MAT Credit Entitlement (0.78)
4.70
9. Total Comprehensive Income /
( Loss ) for the year (7+8) 352.78
10. Earnings Per Share
Face Value ` 10/- per share
i Basic 3.46
ii Diluted 3.46
STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED MARCH 31, 2023
(` in Lakhs)
Particulars
Note
No.
Year ended
31.03.2023
Year ended
31.03.2022
The accompanying notes form an integral part of this financial statements.
Place : Hyderabad
Dated: May 27, 2023
B.N. Bharathi
Partner
M. No.236639
For and on Behalf of Board of Directors
Alkali Metals Limited
As per our Report attached
For G. Nagendrasundaram & Co
Chartered Accountants
(FRN 005355S)
Y.S.R. Venkata Rao
Managing Director
DIN: 00345524
Dr. J.S. Yadav
Chairman
DIN: 02014136
K. Uma Kumari
Chief Financial Officer
Siddharth Dubey
Company Secretary
8,823.27
113.86
8,937.13
3,964.62
(229.87)
1,316.58
266.60
429.30
5.00
2,798.85
8,551.07
386.06
9.41
376.66
65.12
(65.12)
(0.02)
85.39
85.37
291.28
(9.19)
-
-
(9.19)
282.09
2.77
2.77
65
66
CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2023
(` in Lakhs)
Particulars
As at March 31, 2023
As at March 31, 2022
A. CASH FLOWS FROM OPERATING ACTIVITIES
Net Profit/(Loss) before tax and exceptional items 386.06 518.44
Exceptional items - income / (expenditure) * (9.41) (15.03)
Other comprehensive income (net) (9.19) 4.70
Total comprehensive income before tax 367.47 508.11
Adjustments for
Depreciation 348.31 340.27
Amortisation of intangible assets - 6.47
Amortisation of Right to Use Assets 80.99 39.13
Loss on sale of assets - 7.83
Profit on sale of Fixed Assets - (0.66)
Assets written off 9.41 15.03
Interest income (6.73) (1.97)
Interest expense 266.60 263.13
Excess Provision written back (13.77) -
Deffered Grant Written Back (9.55)
Other Income (0.49) 674.76 669.22
Operating profit before working capital changes 1,042.23 1,177.33
(Increase)/decrease in sundry debtors (29.56) (141.01)
(Increase)/decrease in inventories (252.45) 245.97
(Increase)/decrease in loans & advances 1.04 (173.50)
Increase/(decrease) in current liabilities 378.66 (51.74)
Increase/(decrease) in Provision 0.02 10.26
(Increase)/decrease in Other Financial Assets (20.98) (1.86)
76.73 (111.87)
Cash generated from operations 1,118.96 1,065.46
Income tax paid net of refunds - 53.99
Income tax adjustments - -
Net cash flow from operating activities (A) 1,118.96 1,119.45
B. CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Property, Plant and Equipment (314.37) (290.10)
Sale proceeds of Property, Plant and Equipment - 3.74
Interest received 0.39 1.97
Net cash flow from investing activities (B) (313.97) (284.39)
C. CASH FLOW FROM FINANCING ACTIVITIES
Repayment/proceeds of long-term borrowings (102.69) - (166.75) -
(Increase)/decrease in working capital borrowings - -
Repayment of loans (298.83) (131.22)
Repayment of Lease Rent (85.73) (33.76)
Dividend payment (203.65) (87.07)
Interest paid (205.16) (263.13)
Net cash flow used in financing activities (C) (896.06) (681.94)
Net Increase in Cash and Cash Equivalents (A+B+C) (91.07) 153.12
Cash and cash equivalents as at the beginning of the period 200.88 47.75
Cash and cash equivalents at end of the period 109.80 200.88
Cash and cash equivalents
Cash on hand 5.40 3.43
Balances with banks in current account 104.40 197.45
Total 109.80 200.88
Notes to the cash flow statement for the year ended March 31,2023
1 This statement is prepared as per Ind AS-7(Indirect method), whereby profit for the year is adjusted for the effects of transactions of a non-cash
nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or
financing cash flows.
2 Previous year's figures were re-grouped wherever necessary.
Place : Hyderabad
Dated: May 27, 2023
B.N. Bharathi
Partner
M. No.236639
For and on Behalf of Board of Directors
Alkali Metals Limited
As per our Report attached
For G. Nagendrasundaram & Co
Chartered Accountants
(FRN 005355S)
Y.S.R. Venkata Rao
Managing Director
DIN: 00345524
Dr. J.S. Yadav
Chairman
DIN: 02014136
K. Uma Kumari
Chief Financial Officer
Siddharth Dubey
Company Secretary
1. COMPANY OVERVIEW
Alkali Metals Ltd. which was established in 1968, at Hyderabad, Telangana, India, as a closely held
Company. It became a Public Listed Company on 6 November 2008 being listed on BSE & NSE.
Originally set up for manufacturing of Sodium Metal, the Company subsequently diversified into
manufacturing of Sodium derivatives, Pyridine derivatives, Fine Chemicals and API’s etc. The
Company is recognised as an “Export House” by DGFT and also recognised by Dept. of Science and
Technology, New Delhi as an approved “In house R & D Facility”. The Company has three
manufacturing units, at Uppal, Dommara Pochampally and JNPC Visakhapatnam.
2. BASIS OF PREPARATION AND MEASUREMENT
i. Statement of Compliance
The financial statements for the year ended March 31, 2023 have been prepared in accordance
with Indian Accounting Standards (“Ind AS”) prescribed under Section 133 of the Act read with
Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and relevant amendment
rules issued thereafter.
ii. Accounting Convention and Basis of Measurement
The financial statements have been prepared on the historical cost convention and on an accrual
basis, except for the following material items that have been measured at fair value as required
by relevant Ind AS:
a. Certain financial assets and liabilities measured at fair value (refer accounting policy on
financial instruments)
b. Defined benefit and other long-term employee benefits.
iii. Functional and Presentation Currency
The financial statements are presented in Indian rupees, which is the functional currency of the
Company and the currency of the primary economic environment in which the Company
operates. All financial information presented in Indian rupees has been rounded to the nearest
lakhs except share and earnings per share data.
iv. Use of Judgements, Estimates and Assumptions
The preparation of the financial statements in conformity with Ind AS requires management to
make judgements, estimates and assumptions that affect the application of accounting policies
and the reported amounts of assets, liabilities at the date of the financial statements and reported
amounts of revenues and expenses during the period and the disclosure of contingent liabilities
and assets. Actual results may differ from these estimates. Estimates and underlying
assumptions are reviewed on a periodic basis. Revisions to accounting estimates are recognised
in the period in which the estimates are revised and in any future periods affected.
Information about critical judgements in applying accounting policies, as well as estimates and
assumptions in respect of the following areas, that have most significant effect to the carrying
amounts within the next financial year are included in the relevant notes.
a. Useful lives of property, plant, equipment and intangibles
b. Measurement of defined benefit obligations
c. Measurement and likelihood of occurrence of provisions and contingencies
d. Recognition of deferred tax assets/liabilities
e. Impairment of intangibles
f. Expenditure relating to research and development activities.
67
v. Operating Cycle
Based on the nature of products/ activities of the Company and the normal time between acquisition of
assets and their realisation in cash or cash equivalents, the Company has determined its operating
cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-
current.
3. SIGNIFICANT ACCOUNTING POLICIES
i. Property Plant and Equipment
a. Property Plant and Equipment are measured at cost less accumulated depreciation and
impairment losses.
b. The cost of property, plant and equipment includes those incurred directly for the
construction or acquisition of the asset, and directly attributable to bringing it to the
location and condition necessary for it to be capable of operating in the manner intended
by the management and includes the present value of expected cost for dismantling/
restoration wherever applicable.
c. The cost of major spares is recognised in the carrying amount of the item of property, plant
and equipment in accordance with the recognition criteria set out in the standard. The
carrying amount of the replaced part is derecognised at the time of actual replacement. The
cost of the day-to-day servicing of the item are recognised in statement of profit and loss
account.
d. Depreciation on Property, Plant and Equipment is provided under straight line method
over the useful life of assets specified in Part C of Schedule II to the Companies Act, 2013
and manner specified therein. Assets costing less than ` 10,000 are fully depreciated in the
year of purchase.
e. Expenditure attributable / relating to PPE under construction / erection is accounted as
below:
• To the extent directly identifiable to any specific plant / unit, trail run expenditure net
of revenue is included in the cost of property plant and equipment.
• To the extent not directly identifiable to any specific plant / unit, is kept under
“expenditure during construction” for allocation to property plant and equipment and
is grouped under capital work in progress.
• Advances paid towards the acquisition of property, plant and equipment outstanding
at each Balance Sheet date is classified as capital advances under other non-current
assets
ii. Intangible Assets
a. Intangible asset is recognised when it is probable that future economic benefits that are
attributable to the asset will flow to the enterprise and the cost of the asset can be measured
reliably. Expenditure incurred for creating infrastructure facilities where the ownership
does not rest with the Company and where the benefits from it accrue to the Company over
a future period is also considered as intangible asset.
b. New product development expenditure, software licences, technical knowhow fee,
infrastructure and logistic facilities etc., are recognised as intangible asset upon
completion of development and commencement of commercial production.
c. Intangible assets are amortised on straight line method over their technically estimated
useful life.
68
d. Residual values and useful lives for all intangible assets are reviewed at each reporting
date. Changes if any are accounted for as changes in accounting estimates.
iii. Impairment of Asset
a. Financial Assets
The Company applies expected credit loss (ECL) model for measurement and recognition
of impairment loss on the following financial assets and credit risk exposure:
• Financial assets that are debt instruments and are measured at amortised cost whether
applicable for e.g. loans debt securities, deposits, and bank balances.
• Trade Receivables
The Company follows ‘simplified approach’ for recognition of impairment loss
allowance on trade receivables which do not contain a significant financing
component. The application of simplified approach does not require the Company to
track changes in credit risk. Rather, it recognises impairment loss allowance based on
lifetime ECLs at each reporting date, right from its initial recognition.
b. Non – financial assets
The Company assesses at each reporting date whether there is any objective evidence that
a non-financial asset or a group of non-financial assets is impaired. If any such indication
exists, the Company estimates the amount of impairment loss.
iv. Inventories
Items of inventories are valued at lower of cost or net realisable value after providing for
obsolescence, if any. Cost of inventories comprises of cost of purchase, cost of conversion and
other costs incurred in bringing them to their respective present location and condition. Cost of
raw material is determined on FIFO method.
The factors that the Company considers in determining the provision for slow moving, obsolete
and other non-saleable inventory include estimated shelf life, ageing of inventory and to the
extent each of these factors impact the Company’s business and markets. The Company
considers all these factors and adjusts the inventory provision to reflect its actual experience on a
periodic basis.
v. Foreign Currency Transactions
a. Transactions relating to non-monetary items and purchase and sale of goods /services
denominated in foreign currency are recorded at the exchange rate prevailing or a rate that
approximates the actual rate on the date of transaction.
b. Assets and liabilities in the nature of monetary items denominated in foreign currencies are
translated and restated at prevailing exchange rates as at the end of the reporting period.
c. Exchange differences arising on account of settlement / conversion of foreign currency
monetary items are recognised as expense or income in the period in which they arise.
d. Foreign currency gains and losses are reported on a net basis.
vi. Revenue Recognition
While recognizing the revenue under Ind AS 115 in respect of Contracts which meet the defined
criteria, due consideration has been given to identify all the performance obligations stated
therein including transfer of goods or services as well as term of payment. The transaction price
is allocated to each distinct and identifiable performance obligation and is also adjusted for the
time value of money. In respect of goods, revenue is recognised on transfer of significant risks
and rewards of the ownership including effective control of the buyer. In respect of all other
69
services/performance obligations, revenue is recognised upon of completion of such
performance. The revenue so measured is stated net of trade discounts / rebated and other price
allowances, wherever applicable. Other income including interest is recognised on accrual
basis.
vii. Government Grants:
The incentives received on Exports/Imports of Goods are deducted from the respective expense
head on receipt basis.
viii. Employee Benefits
a. Short term Benefits
All employee benefits falling due wholly within twelve months of rendering the service
are classified as short-term employee benefits. The cost of the benefits like salaries,
wages, medical, leave travel assistance, short term compensated absences, bonus, exgratia
etc., is recognised as an expense in the period in which the employee renders the related
service.
b. Post -employment benefits
• Defined Contribution Plans
The contribution paid /payable under provident fund scheme, ESI scheme, and
employee pension scheme is recognised as expenditure in the period in which the
employee renders the related service.
• Defined Benefit Plans
The Company’s obligation towards gratuity is a defined benefit plan. The present
value of the estimated future cash flows of the obligation under such plan is
determined based on actuarial valuation using the projected unit credit method. Any
difference between the interest income on plan asset and the return actually achieved
and any changes in the liabilities over the year due to changes in actuarial assumptions
or experienced adjustments within the plan are recognised immediately in other
comprehensive income and subsequently not reclassified to the statement of profit
and loss.
All defined benefit plans obligations are determined based on valuation as at the end
of the reporting period, made by independent actuary using the projected unit credit
method. The classification of the Company’s net obligation into current and non-
current is as per the actuarial valuation report.
c. Long term Employee Benefits
The obligation for long term employee benefits such as long-term compensated absences,
is determined and recognised in the similar manner stated in the defined benefit plan.
ix. Borrowing Cost
a. Borrowing costs incurred for obtaining assets which take substantial period to get ready
for their intended use are capitalised to the respective assets wherever the costs are directly
attributable to such assets and in other cases by applying weighted average cost of
borrowings to the expenditure on such assets.
b. Other borrowing costs are treated as expense for the year.
c. Significant transaction costs in respect of long-term borrowings are amortised over the
tenor of respective loans using effective interest method.
70
x. Provision for Current and Deferred Tax
a. Current Tax
The tax currently payable is based on taxable profit for the year. Taxable profits differ from
the profit as reported in the statement of profit and loss because of items of income or
expense that are taxable or deductible in other years and items that are never taxable or
deductible. The Company’s current tax is calculated using tax rates that have been enacted
or substantially enacted by the end of the reporting period. In the event of Tax computed as
stated is less than the tax computed under section 115JB of the Income tax Act., 1961,
provision for current tax will be made in accordance with such provisions.
b. Deferred Tax
Deferred tax is recognised on temporary differences between the carrying amounts of
assets and liabilities in the financial statements and the corresponding tax bases used in
the computation of taxable profit. Deferred tax liabilities are generally recognised for all
taxable temporary differences. Deferred tax assets are generally recognised for all
deductible temporary differences to the extent that it is probable that taxable profits will
be available against which those deductible temporary differences can be utilised.
The carrying amount of deferred tax asset is reviewed at the end of each reporting period
and reduced to the extent that it is no longer probable that sufficient taxable profits will be
available to allow all or part of the asset to be recovered.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in
the period in which the liability is settled or the asset realised, based on tax rates (and tax
laws) that have been enacted or substantively enacted by the end of the reporting period.
The measurement of deferred tax liabilities and assets reflects the tax consequences that
would follow from the manner in which the Company expects, at the end of the reporting
period to recover or settle the carrying amount of its assets and liabilities.
c. Current and deferred Tax for the year
Current and deferred tax are recognised in profit and loss, except when they relate to items
that are recognised in other comprehensive income or directly in equity, in which case, the
current and deferred tax are also recognised in other comprehensive income or directly in
equity respectively.
Deferred tax resulting from “timing difference” between taxable and accounting income
is accounted for using the tax rates and laws that are enacted or substantively enacted as on
the balance sheet date. Deferred tax asset is recognised and carried forward only to the
extent there is reasonably certain that there will be sufficient future income to recover
such Deferred Tax Asset.
xi. Minimum Alternate Tax Credit
Minimum Alternate Tax Credit Entitlement is recognized in the books of account when there is
convincing evidence that the Company will pay normal income tax during the specified period.
The Entitlement is reviewed at each balance sheet date with regard to the correctness of the
carrying amount
xii. Research and Development
Capital expenditure incurred has been disclosed under separate heads of account and revenue
expenditure incurred is charged off as a distinct item in the Profit and Loss account.
71
xiii. Financial instruments (financial assets and financial liabilities):
All financial instruments are recognized initially at fair value. The classification of financial
instruments depends on the objective of the business model for which it is held and the
contractual cash flows that are solely payments of principal and interest on the principal
outstanding. For the purpose of subsequent measurement, financial instruments of the Company
are classified into
a. non-derivate financial instruments and b. derivative financial instruments.
a. Non-derivative financial instruments:
• Security Deposits, cash and cash equivalents, other advances, trade receivables and
eligible current and non-current financial assets are classified as financial assets under
this clause.
• Loans and borrowings, trade and other payables including deposits collected from
various parties and eligible current and non-current financial liabilities are classified
as financial liabilities under this clause.
• Financial instruments are subsequently carried at amortized cost.
• Transaction costs that are attributable to the financial instruments recognized at
amortized cost are included in the fair value of such instruments.
b. Derivative financial instruments:
• The policy in respect of Derivatives will be determined as and when required.
xiv. Claims
Claims by and against the Company, including liquidated damages, are recognised on
acceptance basis.
xv. Leases:
The Company’s lease asset classes primarily consist of leases for land and building. The
Company assesses whether a contract contains a lease, at inception of a contract. A contract is, or
contains, a lease if the contract conveys the right to control the use of an identified asset for a
period of time in exchange for consideration. To assess whether a contract conveys the right to
control the use of an identified asset, the Company assesses whether: (i) the contract involves the
use of an identified asset (ii) the Company has substantially all of the economic benefits from
use of the asset through the period of the lease and (iii) the Company has the right to direct the
use of the asset. At the date of commencement of the lease, the Company recognizes a right-of-
use asset (“ROU”) and a corresponding lease liability for all lease arrangements in which it is a
lessee, except for leases with a term of twelve months or less (short-term leases) and low value
leases. For these short-term and low value leases, the Company recognizes the lease payments
as an operating expense on a straight-line basis over the term of the lease.
As a lessee, the Company determines the lease term as the non-cancellable period of a lease
adjusted with any option to extend or terminate the lease, if the use of such option is reasonably
certain.
Right-of-use assets are depreciated from the commencement date on a straight-line basis over
the shorter of the lease term and useful life of the underlying asset. The lease liability is initially
measured at amortized cost at the present value of the future lease payments. The lease payments
are discounted using the interest rate implicit in the lease.
Lease liability and Right to Use asset have been separately presented in the Balance Sheet and
lease payments have been classified as financing cash flows.
72
73
As on
01.04.2022
As on
31.03.2023
As on
01.04.2022
As on
31.03.2023
As on
31.03.2023
As on
31.03.2022
S.
No
Description
Gross Carrying Amount
Accumulated Depreciation
Net Carrying Amount
Additions
Adjustments/
deletions
For the
period
Adjustments/
deletions
4. PROPERTY, PLANT AND EQUIPMENT
(` in Lakhs)
5. RIGHT TO USE ASSET
Description
Gross Carrying Amount
Accumulated Amortization
Net Carrying amount
As on
01.04.2022
Additions
As on
01.04.2022
Adjustments/
deletions
As on
31.03.2023
As on
31.03.2023
As on
31.03.2022
For the
period
Right to Use Asset 102.97 514.54 617.51 39.13 80.99 - 120.12 497.39 63.84
Total 102.97 514.54 617.51 39.13 80.99 - 120.12 497.39 63.84
Carrying Value as of 31.03.2022 - 102.97 102.97 - 39.13 - 39.13 63.84 -
As on
31.03.2023
i. Land 692.30 - - 692.30 - - - - 692.30 692.30
ii. Building 2,629.85 153.33 - 2,783.18 949.86 103.31 - 1,053.16 1,730.01 1,679.99
iii. Plant & Equipment 4,042.02 81.47 10.81 4,112.68 2,256.53 187.91 10.27 2,434.17 1,678.51 1,785.49
iv. Pollution Control Equipment 24.70 - - 24.70 23.37 0.05 - 23.42 1.28 1.33
v. Vehicles 32.96 - - 32.96 16.86 2.57 - 19.43 13.54 16.10
vi. Furniture & Fixture 60.71 - 1.59 59.13 35.50 5.32 1.51 39.31 19.81 25.22
vii. Lab Equipment 171.32 - 1.22 170.10 22.19 16.16 1.16 37.18 132.92 149.14
viii. Office Equipment 19.98 0.75 1.18 19.54 13.97 1.78 1.13 14.63 4.92 6.00
ix. Computers 20.66 5.00 0.68 24.98 10.78 4.82 0.64 14.96 10.02 9.88
x. R& D Equipment 906.12 - 70.46 835.65 757.53 21.86 66.94 712.45 123.21 148.59
xi. R & D Lab Equipment 178.21 - 102.21 76.00 134.58 3.76 97.10 41.24 34.76 43.63
xii. Safety Equipment 22.72 3.89 - 26.62 17.19 0.78 - 17.97 8.65 5.54
Total 8,801.56 244.43 188.16 8,857.84 4,238.36 348.31 178.75 4,407.92 4,449.92 4,563.20
Carrying Value as of 31.03.2022 8,910.10 269.98 378.51 8,801.56 4,250.67 340.27 352.58 4,238.36 4,563.20 4,659.43
74
6. CAPITAL WORK-IN-PROGRESS
Description
As on 01.04.2022
Additions During the Year Capitalized During the Year
Civil Works in Progress 13.59 142.99 104.87 51.71
Other Assets 49.16 122.92 91.11 80.96
Total 62.74 265.91 195.98 132.67
Carrying Value as of 31.03.2022 42.61 290.10 269.98 62.74
As on 31.03.2023
Projects in progress 85.56 13.59 33.53 - 132.67
Projects Temporarily suspended Nil Nil Nil Nil Nil
DISCLOSURE:
6.1 CAPITAL WORK IN PROGRESS (CWIP) AGEING SCHEDULE
(` in Lakhs)
7. INTANGIBLE ASSETS
Description
Gross Carrying Amount
Accumulated Amortization
Net Carrying amount
As on
01.04.2022
Additions
As on
01.04.2022
Adjustments/
deletions
As on
31.03.2023
As on
31.03.2023
As on
31.03.2022
For the
Year
SAP Software Development 70.56 - 70.56 70.56 - - 70.56 - -
Total 70.56 - 70.56 70.56 - - 70.56 - -
Carrying Value as of 31.03.2022 70.56 - 70.56 64.09 6.47 - 70.56 - 6.47
As on
31.03.2023
CWIP
Amount in CWIP for a period of
Less than
1 year
1-2
Years
2-3
Years
More Than
3 years
Total
75
MAT Credit Entitlement 525.08 459.95
525.08 459.95
Valued at Cost or Net Realisable Value, whichever is lower
(As Certified by Management)
Raw Materials 599.23 747.50
Work-in-progress 1,812.54 1,628.79
Finished Goods 97.22 51.10
Stores, spares, fuels and consumables 155.20 163.82
Stock in Transit(Raw-Material & Packing Material) 179.48 -
2,843.67 2,591.22
Less Provision for Slow-Moving Inventory (21.27) (21.27)
2,822.40 2,569.95
9. DEFERRED TAX ASSETS (NET)
11. INVENTORIES
Security Deposit 101.55 80.58
101.55 80.58
8. OTHER FINANCIAL ASSETS
(` in Lakhs)
Income Tax Refund Receivable 0.77 -
Prepaid Expenses 22.77
Capital Advances - 45.00
23.54 45.00
10. OTHER NON CURRENT ASSETS
31.03.2023
31.03.2023
31.03.2023
31.03.2023
31.03.2022
31.03.2022
31.03.2022
31.03.2022
Considered good - Unsecured 1,369.19 1,339.63
1,369.19 1,339.63
12. TRADE RECEIVABLES
31.03.2023
31.03.2023
Trade Receivable Ageing Schedule
Particulars
Outstanding for following periods from due date of payment
Less than
6 months
6 months
- 1 year
1-2
Years
2-3
Years
Total
Undisputed Trade receivables -
considered good 1,369.19 - - - 1,369.19
Previous Year 1,339.63 - - - 1,339.63
Balances with Banks- EEFC Account 104.40 197.45
Cash on Hand 5.40 3.43
109.80 200.88
13. CASH AND CASH EQUIVALENTS
31.03.2023
31.03.2022
76
Margin Money Deposit in Banks 15.60 50.08
Unpaid Dividend Accounts 5.50 5.61
21.10 55.69
Balances With Revenue Authorities 420.52 436.23
Prepaid Expenses 63.87 57.47
Advances to Suppliers 7.74 8.67
Other Advances 5.97 6.18
498.09 508.56
Authorised Share Capital
1,50,00,000 Equity Shares of ` 10 Par Value 1,500.00 1,500.00
Issued, Subscribed and Paid-up Capital
1,01,82,506 Equity Shares of ` 10 Par Value fully paid up 1,018.25 1,018.25
1,018.25 1,018.25
14. OTHER BANK BALANCES
15. OTHERS FINANCIAL ASSET
16. OTHER CURRENT ASSETS
17. SHARE CAPITAL
31.03.2023
31.03.2023
31.03.2023
31.03.2023
31.03.2022
31.03.2022
31.03.2022
31.03.2022
Interest Receivable 2.26 1.92
2.26 1.92
(` in Lakhs)
i. Sri. Y.S.R. Venkata Rao 69,04,715 69,04,715
% of Holding 67.81% 67.81%
i. Sri. Y.S.R. Venkata Rao 69,04,715 67.81 -
ii. Smt. Y. Krishna Veni 28,994 0.28 -
iii. Smt. Y. Lalithya Poorna 1,10,000 1.08 -
iv. Sri. Y. Siva Rama Krishna Rao 41,500 0.41 -
v. M/s. CDC Industrial Infras Limited 633 0.01 -
Total 70,85,842 69.59 -
Disclosures:
17.1 All the equity shares carry equal rights and obligations including for dividend and with respect to voting rights.
17.2. Names of shareholders holding more than 5% of the Share capital and their shareholding.
17.3 Shareholding of Promoters at the year ended 31.03.2023
No. of shares
No. of shares
S.No.
Name of shareholder
Promoter Name
No. of Shares
% Change
During the year
% of total
Shares
S.No.
i. Securities Premium
Balance at the beginning and at the end of the year 2,371.50 2,371.50
ii. Revaluation Reserve on Land
Balance at the beginning and at the end of the year 83.37 83.37
iii. Capital Reserve - Investment Subsidy
Balance at the beginning of the year 10.00 10.00
Add: Amount received during the year - -
Balance at the end of the year 2,464.87 2,464.87
iv. General Reserve
Balance at the beginning of the year 913.44 913.44
Balance at the closing of the year 913.44 913.44
v. Surplus
Balance of surplus in the statement of changes in Equity 890.15 811.71
Balance available for Appropriations 890.15 811.71
4,268.45 4,190.01
18. OTHER EQUITY
(` in Lakhs)
31.03.2023
31.03.2022
I. Unsecured
Deferred payment liability - Interest free sales tax loan
(Refer Note 19.1) 60.72 53.48
ii. Secured
Long term Debt from Bank (Refer Note 19.2) 37.11 147.04
97.82 200.51
19. BORROWINGS
31.03.2023
31.03.2022
Disclosures:
19.1 Deferred payment liability - Interest free sales tax loan
The Company was sanctioned Interest Free Sales Tax Deferment of ` 345.86 lakhs under Target –
2000 Scheme by the Government of Andhra Pradesh vide final eligibility Certificate
No. LR 4/2001/0878/0878/ID dt. 24 July, 2001, for a period of 14 years starting from 20 March, 1999
to 19 March, 2013. The Company has availed itself of total Sales Tax Deferment of ` 269.79 Lakhs up
to 31 March, 2013 and the same is shown as liability in the Balance Sheet. The repayment started from
March, 2016 and the Company has made the payments as per the final eligibility certificate.
No amount is payable in the financial year 2023-24 hence not shown under the Other Financial
Liabilities under Current Liabilities Pursuant to requirement under Ind AS 109 on financial
instruments and in view of the option exercised under Ind AS 101 on first time adoption of Ind AS, un-
winding of interest using effective interest rate was made and the deferred grant carved out, from the
said loan, is being amortised in equal installments over the remaining repayment period of the IFST
loan.
6777
19.2 Secured Loans from Banks
State Bank India - GECL 334.85 16 9.25% 150.01
(` in Lakhs)
Particulars
Loan Amount
Drawn
(` in Lakhs)
No. of
Installments
Due
Rate of
Interest
P.A
Outstanding as
on 31.03.2023
(` in Lakhs
20. LEASE LIABILITIES
Lease Liability 417.24 -
417.24 -
31.03.2023
31.03.2022
22. DEFERRED TAX LIABILITY
Note: Refer to Note No. 43.2 B
23. OTHER NON-CURRENT LIABILITIES
Deferred Tax Liability 383.45 298.06
383.45 298.06
Deposit (Note 28) - 98.94
Deferred Govt. Grant (Note 19.1) 38.21 47.77
Other Advances - 177.34
Capital Creditors 66.89 71.29
Unpaid Interest to MSME Creditors (Note 26.1) 20.44 29.04
125.55 424.37
31.03.2023
31.03.2023
31.03.2022
31.03.2022
Note: The above loan is secured at Pari-passu with working capital loan.
21. PROVISIONS
Provision for Employee Benefits Gratuity (Net of Funded) 1.45 -
Provision for earned Leave Encashment (Non funded) 23.95 25.38
25.41 25.38
31.03.2023
31.03.2022
24. BORROWINGS
a. Loans repayable on demand from Banks -Secured (Note 24.1)
Cash Credit Facility 865.67 887.41
Export Packing Credit 781.88 476.21
b. Current maturuites of Long Term Debt from Bank - Secured
(Note 19.2) 112.90 143.29
c. Current maturuites of Long Term Debt from Bank -Unsecured - 9.82
1,760.46 1,516.73
31.03.2023
31.03.2022
78
Disclosures:
24.1 -Terms and Conditions of Cash Credit
i. Period of maturity with reference to Renewable every year Renewable every year
Balance Sheet date
ii. Number of Installments Due Nil Nil
iii. Amount Outstanding 865.67 887.41
iii. Rate of Interest Base Rate plus 5.60% P.A Base Rate plus 5.60% P.A
iv. Overdue amount and period Nil Nil
v. Security
Working Capital Loan from Bank and interest accrued on the loan are secured by hypothecation
of raw materials, work in progress, finished goods, stores and spares and book debts of the Company
and a first charge on all Movable and immovable properties and personal guarantee of the Managing
Director of the Company.
24.2 - Terms and Conditions of Export Packing Credit
EPC limit of ` 1050 Lakhs is a sub limit to the Cash Credit limit of ` 1600 Lakhs.
i. Amount Outstanding 781.88 476.21
ii. Rate of Interest Base Rate plus 5.60% P.A Base Rate plus 5.60% P.A
iii. Overdue amount and period Nil Nil
iv. Security
Working Capital Loan from Bank and interest accrued on the loan are secured by hypothecation of
raw materials, work in progress, finished goods, stores and spares and book debts of the Company and a
first charge on all Movable and immovable properties and personal guarantee of the Managing Director
of the Company.
25. LEASE LIABILITIES
Lease Liability 106.45 63.62
106.45 63.62
31.03.2023
31.03.2022
26. TRADE PAYABLES
(` in Lakhs)
Total outstanding dues of :
Micro enterprises & Small Enterprises (MSME) 59.74 70.79
Payables other than MSME 1,785.48 1,667.93
1,845.22 1,738.72
31.03.2023
31.03.2022
26.1 Details relating to micro enterprises and small enterprises
i. Principal amount outstanding 59.74 70.79
ii. Interest outstanding at the beginning of the year 29.04 12.60
iii. Amount of interest paid 11.99 -
iv. Amount of interest due and payable for the period 3.39 16.44
v. Amount accrued and remaining unpaid at the end of the
accounting year. 20.44 29.04
31.03.2023MSME
31.03.2022
79
Note:
The information has been given in respect of those suppliers who have intimated the Company that they
registered as micro and small enterprises. Some of the vendors who come under the MSMED Act 2006 have
been associated with the Company for a long time and have a continuous Business Relationship. The company is
usually prompt in servicing these vendor as per mutually Agreed Terms, In view of such longstanding
relationship, no claims were received by the Company. The Company expects that there will be no claims in
future also for interest.
26.2 Trade Payable Ageing Schedule
Outstanding for following periods from due date of payment
Particulars
Less than 6 months
6 months - 1 year
1 - 2 years
2 - 3 years
Total
(I) MSME 59.74 - - - 59.74
Previous Year 70.79 - - - 70.79
(ii) Others 1,688.71 45.09 51.68 - 1,785.48
Previous Year 1,663.33 4.60 - - 1,667.93
27. OTHER FINANCIAL LIABILITIES
28. OTHER CURRENT LIABILITIES
Current Maturities of Deferred payment Liability -
Interest free Sales Tax Loan (refer Note no.19.1) - 8.16
Interest Accrued but not Due on Borrowings - 2.78
Unpaid Dividend 5.50 5.61
5.50 16.55
Statutory Dues Payable 53.28 79.20
Deposit* 123.38 -
Advance against Sales 43.04 1.58
Outstanding Expenses 188.86 283.65
408.56 364.43
31.03.2023
31.03.2023
31.03.2022
31.03.2022
(` in Lakhs)
*The above deposit is received from a customer of the Company in foreign currency and the same is
adjustable against the supplies of the Company in next financial years.
29. PROVISIONS
Provision for earned Leave Encashment (Non funded) 2.52 2.94
Provision for Employee Benefits Gratuity (Net of Funded) 41.08 28.45
43.60 31.39
31.03.2023
31.03.2022
30. CURRENT TAX LIABILITIES (NET)
Current tax Liabilities 47.05 63.90
47.05 63.90
31.03.2023
31.03.2022
80
31. REVENUE FROM OPERATIONS
Sale of Products 8,638.53 8,981.53
Other Operating Revenue 184.74 120.05
8,823.27 9,101.59
31.03.2023
31.03.2022
32. OTHER INCOME
Interest earned 4.11 1.97
Other Non-operating Income
-Gain on Foreign Currency Translation and Transactions 83.32 15.24
-Miscellaneous receipts 0.49 0.66
-Balances / Excess Provisions written back 13.77 -
-Deferred Government grant written back 9.55 9.55
-Interest On Rent Deposit 2.62 1.67
113.86 29.09
31.03.2023
31.03.2022
33. CHANGES IN INVENTORIES OF FINISHED GOODS, WORK-IN-PROGRESS AND STOCK-IN-TRADE
Work in Progress
-Opening Stock 1,679.89 1,773.39
-Closing Stock 1,909.77 1,679.89
Decrease / (Increase) (229.87) 93.50
Total Decrease / (Increase) (229.87) 93.50
31.03.2023
31.03.2022
34. EMPLOYEE BENEFITS EXPENSE
Salaries & Wages 1,253.71 1,180.56
Contribution to Provident and Other Funds 41.81 44.17
Staff Welfare Expenses 21.06 11.92
1,316.58 1,236.64
31.03.2023
31.03.2022
35. FINANCE COSTS
Interest 204.86 242.92
Interest on Income Tax 4.25 5.16
Other Borrowing Costs 8.14 10.62
Interest on Lease Liability 49.35 4.44
266.60 263.13
31.03.2023
31.03.2022
81
(` in Lakhs)
36. DEPRECIATION AND AMORTIZATION EXPENSE
37. CORPORATE SOCIAL RESPONSIBILITY EXPENSES
Depreciation of Tangible Assets 348.31 340.27
Amortisation of Intangible Assets - 6.47
Amortisation of Right to Use Asset 80.99 39.13
429.30 385.87
Payment Made to other organization 5.00 -
5.00 -
31.03.2023
31.03.2023
31.03.2022
31.03.2022
Disclosures:
i. Gross Amount required to be spent by the company 5.00 -
ii. Amount approved by the Board to be spent during the year 5.00 -
iii. Amount spent during the year towards CSR Activities 5.00 -
38. OTHER EXPENSES
39. EXCEPTIONAL ITEMS
Consumption of Stores and Spares 350.24 443.64
Power & Fuel 1,184.83 1,045.78
Rent 24.48 59.54
Repairs to Buildings 20.69 46.64
Repairs to Machinery 156.78 134.39
Insurance 39.59 34.26
Production & Processing charges 56.89 72.91
Rates and Taxes 42.06 42.64
R & D 111.42 141.79
Freight on Sales 389.40 483.96
Miscellaneous Expenses 422.48 375.96
2,798.85 2,881.52
Assets Write-off 9.41 15.03
9.41 15.03
31.03.2023
31.03.2023
31.03.2022
31.03.2022
82
(` in Lakhs)
40. DISCLOSURE AS PER SCHEDULE III OF THE ACT AND IND AS-37 ON PROVISIONS,
CONTINGENT LIABILITIES AND CONTINGENT ASSETS:
A. Contingent Liabilities
Claim against the Company not acknowledged as debts:
Particulars
31.03.2023 31.03.2022
(` in Lakhs)
B. Commitments
Estimated amount of contracts remaining to be 84.49 30.75
executed on capital account and not provided for
Particulars
31.03.2023 31.03.2022
41. DISCLOSURE AS PER IND AS – 12 INCOME TAX
A. Income tax assessments
The Company’s income tax assessments were completed upto AY 2020- 2021.
B. The tax effects of significant temporary differences that resulted in deferred income tax
asset and liability are as follows
Difference in WDV of PPE and Intangible assets (1,784.50) (1,894.14)
Differences in carrying value of ROU Assets & 26.31 -
Lease Liabilities
Carried forward losses 206.91 684.94
Post-Employment Benefits 132.52 56.77
Other disallowances 40.44 81.04
Net Deferred Taxes Assets / (Liabilities) (1,378.33) (1,071.39)
Deferred Taxes Asset / (Liabilities) there on at
applicable rates (383.45) (298.06)
Particulars
31.03.2023 31.03.2022
Customs Duty - Unfulfilled Export Obligation if any 30.14 170.07
GST – Andhra Pradesh 1.97 -
Show cause notice received – GST Visakhapatnam
The department of GST Telangana has raised demand 15.24 -
pertaining to FY 2017 – 2018 and 2018 – 2019
regarding ITC & Penalties against which appeal has
been filed with the Appellate Authority
The department of GST Andhra Pradesh has raised 0.93 -
demand pertaining to FY 2017 – 2018
regarding ITC & Penalties against which appeal has
been filed with the Appellate Authority
Bank Guarantees given 4.00 4.00
83
42. CONFIRMATION OF BALANCES
The Company had sent letters seeking confirmation of balances to various parties under trade
payables, trade receivables, advance to suppliers and other advance from customers. Based on the
confirmations received and upon proper review, corrective actions have been initiated and the
amounts have been trued up, accounting adjustments have been made wherever found necessary.
43. DISCLOSURES AS PRESCRIBED BY INDIAN ACCOUNTING STANDARD (IND AS)
43.1 DISCLOSURE AS PER IND AS 7
Statement of reconciliation for changes in liabilities arising from financial activities
43.2 DISCLOSURE AS PER IND AS 19 – EMPLOYEE BENEFITS
A. Defined Contribution Plan
Contribution to Defined Contribution Plan recognised as expenses for the year as under:
Opening balance 1,363.62 92.90 9.82
Borrowed during the year - - -
Repaid du ring the year 283.94 (8.16) (9.82)
Net movement 283.94 14.19 (9.82)
Closing balance 1,647.56 98.93 -
Particulars
Working capital
borrowings
Interest free
sales tax loan
Unsecured
loans
Employer’s Contribution to Provident Fund 28.88 28.47
Employer’s Contribution to ESI - 1.60
Particulars
2022-23 2021-22
B. Defined Benefit Plan
I. Gratuity obligation of the Company
The employees’ gratuity fund scheme managed by a Trust is a defined benefit plan. The present value
of obligation is determined based on actuarial valuation using the Projected Unit Credit Method,
which recognised each period of service as giving rise to additional unit of employee benefit
entitlement and measures each unit to build up the final obligation. The obligation for leave
encashment is recognised in the books as per Actuarial Valuation.
Present value of obligation 236.93 213.59
Fair value of plan assets 194.40 185.14
Net asset / (liability) (42.53) (28.45)
Particulars
31.03.2023 31.03.2022
Assets and Liability (Balance sheet position)
In Income statement (P&L a/c – expense provision) 12.90
In other comprehensive income (Balance sheet item) (15.86)
Particulars
31.03.2023
Expense recognised during the period
84
Present value of obligations as at the beginning 213.59 214.40
Interest cost 14.59 12.06
Current Service Cost 11.77 12.61
Past service cost – (Vested benefits) - -
Benefits Paid (15.31) (22.53)
Actuarial (Gain) / Loss on obligation 12.29 (2.94)
Present value of obligations as at the end 236.93 213.59
Bifurcation of net liability
Current liability (Short Term) 41.08 42.33
Non-current liability (Long Term) 195.85 171.26
Net liability 42.53 28.45
Particulars
For the period ending
(` in Lakhs)Changes in the present value of obligation
31.03.2023
31.03.2022
Fair value of plan assets as at the beginning 185.14 184.99
Adjustment to opening Fair value of plan asset - -
Return on plan assets excluding Interest Income (3.56) 0.03
Contribution by Employer 14.68 12.05
Interest Income 13.45 10.59
Benefits Paid (15.31) (22.53)
Fair value of plan assets as at the end 194.40 185.14
Particulars
For the period ending
Changes in the fair value of plan assets
Other Comprehensive Income
31.03.2023 31.03.2022
Actuarial (gains) / losses -
Actuarial (gains) / losses on obligations 12.30
Actuarial (gains) / losses on plan assets 3.56
Total Other Comprehensive Income 15.86
Particulars
31.03.2023
Expense recognised in the Income Statement
Particulars
31.03.2023
Current Service Cost 11.77
Past Service Cost -
Interest Cost 1.13
Expense recognised in the Income statement 12.90
85
II. Long Term compensated absences – Leave Encashment Assets and Liability (Balance sheet position)
(` in Lakhs)
Expense recognised during the period
In Income statement (P&L a/c – expense provision) 6.47
Particulars
31.03.2023
Particulars
31.03.2023 31.03.2022
Present value of obligation 28.32 17.78
Fair value of plan assets - -
Surplus / (deficit) (0.2) 10.55
Net asset / (liability) 26.47 28.32
Present value of obligations as at the beginning 28.32 17.78
Interest cost 1.82 1.04
Current Service Cost 4.65 11.23
Benefits Paid - -
Actuarial (Gain) / Loss on obligation (6.67) (1.73)
Present value of obligations as at the end 26.47 28.32
Bifurcation of net liability
Current liability (Short Term) 2.52 2.94
Non-current liability (Long Term) 23.95 25.38
Net liability 26.47 28.32
Particulars
For the period ending
Changes in the present value of obligation
31.03.2023 31.03.2022
Fair value of plan assets as at the beginning - -
Adjustment to opening Fair value of plan asset - -
Return on plan assets excluding Interest Income - -
Interest Income - -
Contribution by employer - -
Benefits Paid - -
Fair value of plan assets as at the end - -
Particulars
For the period ending
Changes in the fair value of plan assets
31.03.2023 31.03.2022
86
Expense recognised in the Income Statement
Current Service Cost 4.65
Past Service Cost -
Interest Cost 1.82
Expense recognised in the Income statement 6.47
Particulars
31.03.2023
III. Actuarial
Particulars Gratuity
(Funded)
2022-23
Leave
Encashment
(Non-funded)
2022-23
Gratuity
(Funded)
2021-22
Leave
Encashment
(Non-funded)
2021-22
Mortality Table (LIC) 7.16% 7.16% 7.58% 6.78%
Discount rate (per annum) 3.00% 3.00% 3.00% 3.00%
Expected rate of return on 8.62% 7.27% 9.09% 7.73%
plan assets (Per annum)
Rate of escalation in salary 5.00% 5.00% 5.00% 5.00%
(per annum)
The estimates of rate of escalation in salary considered in actuarial valuation, take into account
inflation, seniority, promotion and other relevant factors including supply and demand in the
employment market. The above information is certified by the actuary.
The expected rate of return on plan assets is determined considering several applicable factors,
mainly the composition of plan assets held, assessed risks, historical results of return on plan assets
and the Company’s policy for plan assets management.
43.3 DISCLOSURE AS PER IND AS – 21 – THE EFFECTS OF CHANGES IN FOREIGN
EXCHANGE RATES UN-HEDGED FOREIGN CURRENCY EXPOSURE AT THE
YEAREND
Trade payables 1369.19 236.63
Trade receivables 1912.11 1117.68
Particulars
31.03.2023 31.03.2022
(` in Lakhs)
a. Exchange differences arising out of settlement /
translation on account of export sales for the year 83.32 9.04
b. Exchange differences arising out of settlement /
translation on account of imports for the year - (2.25)
c. Exchange differences arising out of settlement /
translation on account of others - 8.45
Net gain / (loss) recognised during the year 83.32 15.24
Particulars
31.03.2023 31.03.2022
87
43. 4 DISCLOSURE AS PER IND AS – 33 EARNING PER SHARE
Total No. of Shares 101.83 101.83
Profit after Taxes and exceptional items 376.66 353.01
Earning per share Basic &Diluted (`10 per share) 2.77 3.47
Particulars
31.03.2023 31.03.2022
43.5 DISCLOSURE AS PER IND AS-108 OPERATING SEGMENTS:
As the Company is predominantly engaged in the manufacture and sale of chemicals where the risks
and returns associated with the products are uniform, the Company has identified geographical
segments based on location of customers as reportable segments in accordance with Ind AS 108
issued by ICAI.
A. SEGMENT REVENUE
C. OTHER DISCLOSURES
Domestic 2,926.67 33.88 3,320.95 36.98
External 5,711.86 66.12 5,660.58 63.02
Total 8,638.53 100.00 8,981.53 100.00
Unallocable Assets 9,381.59 8,834.25 244.43 269.98
Geographical Location
Geographical Location
31.03.2023
Carrying Amount
of Segment Assets
31.03.2022
Additions to Fixed Assets
` in Lakhs ` in Lakhs
% %
31.03.2023 31.03.2023
31.03.2022 31.03.2022
Note: The Company has no assets outside India other than the External Trade Receivables. All the
assets, other than trade receivables, are shown as unallocable assets
B. SEGMENT ASSETS (TRADE RECEIVABLES)
Domestic 197.77 14.44 221.96 83.43
External 1,171.42 85.56 1,117.68 16.57
Total 1,369.19 100.00 1,339.63 100.00
Geographical Location
31.03.2023 31.03.2022
% %
` in Lakhs ` in Lakhs
88
Directors’ interested Companies
Asian Herbex Limited
Zigna Analytics Private Limited
CDC Industrial Infras Limited
Key Management Personnel
Sri Y.S.R. Venkata Rao Managing Director
Mr. Y.V. Prashanth Executive Director from 10 November, 2022
Ms. K. Uma Kumari Chief Financial Officer
Mr. Siddharth Dubey Company Secretary
Non - Key Management Personnel
Dr. J. S. Yadav Chairman & Independent Director
Sri G. Jayaraman Independent Director
Sri K.V. Surya Prakash Rao Independent Director
Ms. Y .Lalithya Poorna Non-Executive Non-Independent Director
Dr. A.R. Prasad Non-Executive and Non-Independent Director
Mr. Y.V. Prashanth Relative of Managing Director till 9 November, 2022
Others
Dr. Y.V.S. Murty Charitable Trust Charitable Trust in which the Managing Director
is a trustee
43.6 DISCLOSURE AS PER IND AS – 24 – RELATED PARTY DISCLOSURES
i. Directors’ interested Companies Rent 4.92
Sales Commission 37.49
Godown Rent 85.73
ii. Key Managerial Personnel Remuneration 32.85
Commission on profits 134.52
Rent 30.10
iii. Non - Key Managerial Personnel Rent 14.76
Sitting Fees 17.65
Professional Fee 12.00
iv. Others CSR Contribution 5.00
S.No
Nature of Relationship
Nature of Transaction
Transactions
during the year
(` in Lakhs)
Disclosure of transactions with related parties
44. FINANCIAL INSTRUMENTS
i. Capital Management
The Company manages its capital structure and makes adjustments to it, in light of changes in economic
condition. To maintain or adjust the capital structure, the Company may adjust the dividend payment to
shareholders. No changes were made in the objectives, policies and procedures in the past three years.
The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net
debt. The Company includes within net debt, borrowings, trade and other payables, other liabilities, less
cash and cash equivalents Capital includes issued equity capital, share premium and all other equity
reserves attributable to the equity holders.
89
ii. Financial instruments by category
The carrying and fair value of financial instruments by categories of March 31, 2023 and March
31, 2022 were as follows
iii. Financial Risk Management
Financial Risk Factors
The Company is exposed to financial risks arising from its operations and the use of financial
instruments. The key financial risks include market risk, and liquidity risk. The management reviews
and design policies and procedures to minimize potential adverse effects on its financial performance.
The primary market risk to the Company is foreign exchange risk. The Company’s exposure to credit
risk is influenced mainly by the customer repayments. The Company’s exposure to liquidity risks are on
account of interest rate risk on borrowings. The following sections provide details regarding the
Company’s exposure to the above-mentioned financial risks and the management thereof.
Market Risk
The Company operates internationally, and a portion of the business is transacted in foreign currencies
and consequently the Company is exposed to foreign exchange risk through its sales and services in
those countries. The exchange rate between the rupee and foreign currencies has changed substantially
in recent years and may fluctuate substantially in the future. Consequently, the results of the Company’s
operations are affected as the rupee appreciates/depreciates against these currencies. The Company
leaves exchange rate risk with regard to foreign exposures un-hedged when the local currency is
appreciating against the foreign currency.
The following table analyses foreign currency risk from financial instruments:
(` in Lakhs)
31.03.2023 31.03.2022
Amortised
Cost
Total
carrying
value
Total
fair
value
Assets
Cash and cash equivalents 109.80 109.80 109.80 200.88 200.88 200.88
Other bank balances 21.10 21.10 21.10 55.69 55.69 55.69
Trade receivables 1,369.19 1,369.19 1,369.19 1,339.63 1,339.63 1,339.63
Other financial assets 103.81 103.81 103.81 82.49 82.49 82.49
Total 1,603.90 1,603.90 1,603.90 1,678.69 1,678.69 1,678.69
Liabilities
Trade payables 1,845.22 1,845.22 1,845.22 2,022.36 2,022.36 2,022.36
Borrowings 1,858.28 1,858.28 1,858.28 1,717.24 1,717.24 1,717.24
Other financial liabilities 5.50 5.50 5.50 16.55 16.55 16.55
Lease Liability 523.70 523.70 523.70 63.62 63.62 63.62
Total 4,232.70 4,232.70 4,232.70 3,819.77 3,819.77 3,819.77
90
Trade receivables 14,24,194 - 14,69,122 -
Other financial assets - - - -
Trade payables 2,73,980 41,680 3,11,040 -
Other financial Liabilities - - - -
Net assets (liabilities) 11,50,214 (41,680) 11,58,082 -
Particulars
31.03.2023 31.03.2022
USD
USD
Euro Euro
Credit Risk
Credit risk is the risk of loss that may arise on outstanding financial instruments when counter party
defaults on its obligations. The Company’s exposure to credit risk arises primarily from loans
extended, security deposits, balances with bankers and trade and other receivables. The Company
minimises credit risk by dealing exclusively with high credit rating counter parties. The Company’s
objective is to seek continual revenue growth while minimising losses incurred due to increased credit
risk exposure. The Company trades only with recognised and creditworthy third parties. It is the
Company’s policy that all customers who wish to trade on credit terms are subject to credit
verification procedures. In addition, receivable balances are monitored on an ongoing basis with the
result that the Company’s exposure to bad debts is not significant.
Credit Risk Exposure
At the end of the reporting period, the Company’s maximum exposure to credit risk is represented by
the carrying amount of each class of financial assets recognised in the statement of financial position.
No other financial assets carry a significant exposure to credit risk.
Liquidity Risk
The Company’s principal sources of liquidity are cash and cash equivalents and the cash flow that is
generated from operations. The Company has short term borrowings from banks. Short term loans
repayable on demand from banks are obtained for the working capital requirements of the Company.
As of March 31, 2023, the Company had a working capital of ` 606.02 Lakhs including cash and cash
equivalents of ` 109.80 Lakhs. As of March 31, 2022, the Company had a working capital of
` 881.28 Lakhs including cash and cash equivalents of ` 200.88 Lakhs.
As of March 31, 2023, and March 31, 2022, the outstanding gratuity were ` 236.97 Lakhs and
` 213.59 Lakhs, respectively, which have been substantially funded. Accordingly, no liquidity risk is
perceived.
Interest Rate Risk
The interest rate risk is the risk that the fair value or the future cash flows of the Company’s financial
instruments will fluctuate because of the change in market interest rates. The Company is exposed to
interest rate risks as it has significant interest-bearing working capital loans from bank. Short term
loans repayable on demand are subject to prevailing market rate fluctuations and sanctioned facilities
are availed on a need to borrow basis to ensure minimum exposure to interest rate fluctuations.
The following table analyses foreign currency risk from financial instruments:
91
45. DIVIDEND
The final dividend on shares is recorded as a liability on the date of approval by the shareholders and
interim dividends are recorded as a liability on the date of declaration by the Company's Board of
Directors. Income tax consequences of dividends on financial instruments classified as equity will be
recognized according to where the entity originally recognized those past transactions or events that
generated distributable profits. The Company declares and pays dividends in Indian rupees.
Companies are required to pay/distribute dividend after deducting applicable withholding income
taxes.
The amount of per share dividend recognized as distribution to equity shareholders in accordance
with Companies Act 2013 is as follows:
(*Subject to approval of Shareholders at the ensuing AGM)
(`)
Final Dividend 2.00* 2.00
Particulars
2022-23
2021-22
46. REMUNERATION TO AUDITOR (EXCLUDING GST)
Statutory Audit 8.00 5.50
Taxation Matters 2.50 1.10
Other Services 1.50 0.84
Particulars
2022-23
2021-22
47. BORROWINGS SECURED AGAINST CURRENT ASSETS
The Company files Monthly Stock Statements and Quarterly declaration to Bank regarding the End use
of funds and Unhedged foreign currency and Investment declaration.
The data provided by Company is in line with the books of accounts. The Company has not been
declared as wilful defaulters as per the relevant RBI Circular.
48. RELATIONSHIP WITH STRUCK OFF COMPANIES
The Company has verified Debtors and Creditors Companies status with respect to being Struck Off
and none of the Companies status is showing as Struck off.
92
Ratios
(a) Current Ratio
(b) Debt-Equity Ratio,
(d) Return on
Equity Ratio
(e) Inventory
turnover ratio
(f) Trade Receivables
turnover ratio
(g) Trade payables
turnover ratio
(h) Net capital
turnover ratio
(j) Return on Capital
employed
49. RATIOS - CURRENT PERIOD
Numerator
Denominator
Current
Period
Previous
Period
%
Variance
Current Assets Current
Liabilities
Total Outside
Liabilities
Shareholder’s
Equity
Earnings Available
for Debt Services/
interest + instalments
Debt Service
Net profit
after taxes
Equity
shareholders
funds
Cost of goods
Sold or Sales
Average
inventory
Sales Average Trade
Receivables
Purchases Average Trade
Payables
Sales or Cost of
goods sold
Working Capital/
Net Assets
Net profit
Sales
Earnings Before
interest and tax
Capital employed
1.14
5.17
0.47
0.28
3.27
6.51
2.90
14.56
0.03
10.30
1.20
4.66
0.49
0.35
3.38
7.17
2.77
10.33
0.04
12.69
(0.05)
0.11
(0.04)
(0.21)
(0.03)
(0.09)
0.05
0.41
(0.20)
(0.19)
93
50. UTILISATION OF BORROWED FUNDS AND SHARE PREMIUM
No funds have been advanced or loaned or invested (either from borrowed funds or share premium or, any
other sources or kind of funds) by the Company to or in any other person or entity, including foreign entities
(“Intermediaries") with the understanding, whether recorded in writing or otherwise, that the Intermediary
shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The
Company has not received any fund from any party(s) (Funding Party) with the understanding that the
Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on
behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf
of the Ultimate Beneficiaries.
51. The Company has used the borrowings from Banks and Financial institutions for their specific purpose for
which they have been taken.
94
As per our Report attached
For G. Nagendrasundaram & Co
Chartered Accountants
(FRN 005355S)
Place : Hyderabad
Dated: May 27, 2023
B.N. Bharathi
Partner
M. No.236639
For and on Behalf of Board of Directors
Alkali Metals Limited
Y.S.R. Venkata Rao
Managing Director
DIN: 00345524
Dr. J.S. Yadav
Chairman
DIN: 02014136
K. Uma Kumari
Chief Financial Officer
Siddharth Dubey
Company Secretary
52. In the opinion of the Board of Directors, all the Assets (Other than Property, Plant, Equipment, Intangible
Assets and Non-Current Investments) are expected to realise a value which is at least equivalent to the
amount at which they are stated in the financial statements, in the ordinary course of the business. The
Board is also of the opinion that no material uncertainty exists regarding the capability of the Company in
meeting its liabilities existing as on the date of Balance Sheet as and when they fall due.
53. The Company does not have any transactions with companies struck off under Section 248 of the
Companies Act 2013 or under Section 560 of the Companies Act 1956.
54. As the Company does not have any downstream companies, the compliance with regard to the number of
layers prescribed under Clause (87) of Section 2 of the Companies Act, 2013 read with Companies
(Restrictions on Number of Layers), Rules, 2017 and the disclosure requirements of the names of such
Companies and their CIN, beyond specified layers and the relation and extent of holding, are not applicable.
55. No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any
other sources or kind of funds) by the Company to or in any other person or entity, including foreign entities
(“Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary
shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The
Company has not received any fund from any party(s) (Funding Party) with the understanding that the
Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on
behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf
of the Ultimate Beneficiaries.
56. With regard to Charge Creation or Satisfaction, no documents are pending for filling with Registrar of
Companies beyond the specified Statutory period.
57. The Company does not have any transaction which is not recorded in the books of account that has been
surrendered or disclosed as income during the year in tax assessments under the Income Tax, 1961. The
Company does not also have any previously unrecorded income and related assets that are properly
required to be recorded in the books of account during the year.
58. The Company has not traded or invested in crypto currency or any virtual currency during the financial year.
59. Previous year figures have been regrouped / reclassified wherever necessary to correspond with the current
year's classification/ disclosure.
