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Alankit Ltd.

BSE: 531082 Sector: IT
NSE: ALANKIT ISIN Code: INE914E01040
BSE 00:00 | 04 Jul 10.91 -0.06
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OPEN 10.80
PREVIOUS CLOSE 10.97
VOLUME 11378
52-Week high 26.20
52-Week low 10.12
P/E 15.59
Mkt Cap.(Rs cr) 156
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 10.80
CLOSE 10.97
VOLUME 11378
52-Week high 26.20
52-Week low 10.12
P/E 15.59
Mkt Cap.(Rs cr) 156
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Alankit Ltd. (ALANKIT) - Director Report

Company director report

To

The Members

ALANKIT LIMITED NEW DELHI

Your Directors take pleasure in presenting the 32nd Annual Report on thebusiness and operations of the Company along with the summary of standalone andconsolidated financials prepared in accordance with IND-AS for the year ended March 312021.

FINANCIAL HIGHLIGHTS

The Financial results of the Company for the year under review along with figures forthe previous year are as follows:

(Rs. In Lakhs)

Particulars Standalone Consolidated
31.03.2021 31.03.2020 31.03.2021 31.03.2020
Net Sales/Income from Operations 10319.69 12969.35 11501.10 15612.24
Other Income 110.31 520.34 344.04 739.27
Total Income 10430.00 13489.69 11845.14 16351.51
Profit before Depreciation & Tax 1658.43 2466.25 1896.65 2776.44
Depreciation (349.65) (396.27) (439.24) (525.12)
Profit before Tax 1308.78 2069.98 1457.41 2251.32
Provision for current year income-tax (379.32) (637.01) (427.48) (689.41)
Earlier Year Taxes 101.01 (14.76) 98.34 (15.19)
Mat Credit Receivable Nil Nil 0.34 1.04
Deferred Tax (24.41) (149.59) (21.19) (151.96)
Net Profit after tax and adjustments 1006.06 1268.62 1107.42 1395.80
EPS* (Basic) 0.70 0.89 0.77 0.98
(Diluted) 0.70 0.89 0.77 0.98

STANDALONE

During the year your Company recorded total revenue of Rs. 10430.00 lakhs as comparedto Rs. 13489.69 lakhs in previous year. The Profit after tax for the year stood atRs.1006.06 lakhs as against previous year's Rs.1268.62 lakhs.

CONSOLIDATED

During the year consolidated revenue was Rs. 11845.14 lakhs as compared to Rs.16351.51 lakhs in previous year. The Profit after Tax for the year stood at Rs.1107.42lakhs as against the previous year's Rs.1395.80 lakhs.

DIVIDEND

Based on the Company's performance for FY 2020-21 the Board of Directors hasrecommended final dividend of Re. 0.20 per equity share having a face value of Re. 1/-each.

TRANSFER TO THE INVESTOR EDUCATION AND PROTECTION FUND

The company is not required to transfer any amount to the Investor Education andProtection Fund in terms of Section 125 of the Companies Act 2013.

Pursuant to Regulation 39(4) and Secretarial Standard-3 on Dividend we have sentintimation to physical and demat shareholders to claim the unclaimed dividend since F.Y.2014-15.

TRANSFER TO RESERVES

The Company has not transferred any sum to General Reserve from retained earnings.

PUBLIC DEPOSITS

The Company has not accepted or renewed any amount falling within the purview ofprovisions of Section 73 of the Companies Act 2013 read with the Companies (Acceptance ofDeposit) Rules 2014 during the year under review. Hence the requirement for furnishingof details of deposits which are not in compliance with Chapter V of the Act is notapplicable

SHARE CAPITAL

The authorized Share Capital of the company is Rs. 20 Crores divided into 20 CroresEquity shares of Face Value of Re 1 each. The paid up Equity Share Capital as at March 312021 stood at Rs. 142958100. During the year under review the Company has not issuedshares or convertible securities or shares with differential voting rights nor has grantedany stock options or sweat equity or warrants. As on March 31 2021 none of the Directorsof the Company holds instruments convertible into Equity Shares of the Company.

SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS/COURTS/TRIBUNALS

There have been no significant and materials orders passed by the Regulators or Courtsor Tribunals impacting the going concern status and Company's operations in future.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

The Management Discussion and Analysis Report on the operations of the Company asrequired under the SEBI (Listing Obligations and Disclosure Requirements) Regulations2015 (hereinafter referred to as "Listing Regulations") is provided in aseparate section and forms an integral part of this Report.

LISTING WITH STOCK EXCHANGES

Equity Shares of the Company are listed on Bombay Stock Exchange (BSE) and NationalStock Exchange of India Limited (NSE). The Company is regular in paying Annual ListingFees to both the stock exchanges.

EVALUATION OF PERFORMANCE OF BOARD OF DIRECTORS

Pursuant to the provisions of the Companies Act 2013 and SEBI (LODR) Regulations 2015the Board has carried out an Annual Performance Evaluation of its own performance theDirectors individually as well as the Evaluation of the working of its various Committees.A separate exercise was carried out to evaluate the performance of individual Directorsincluding the Chairman of the Board who were evaluated on parameters such as level ofengagement and contribution independence of judgment safeguarding the interest of theCompany and its minority shareholders etc. The performance evaluation of the IndependentDirectors was carried out by the entire Board excluding the Directors being evaluated.

In a separate meeting of independent directors performance of non-independentdirectors the Board as a whole and the Chairman of the Company was evaluated taking intoaccount the views of executive directors and non-executive directors.

DIRECTORS' RESPONSIBILITY STATEMENT

Based on the framework of internal financial controls established and maintained by theCompany work performed by the internal statutory secretarial auditors and externalagencies including audit of internal financial controls over financial reporting by thestatutory auditors and the reviews undertaken by the Management and the relevant BoardCommittees including the Audit Committee the Board is of the opinion that the Company'sinternal financial controls were adequate and effective during the Financial Year 2020-21.

Accordingly pursuant to Section 134(3) (c) Section 134(5) of the Companies Act 2013with respect to Directors' Responsibility Statement it is hereby confirmed that:

a) In the preparation of the annual accounts the applicable accounting standards havebeen followed and that no material departures have been made from the same;

b) They have selected such accounting policies and applied them consistently and madejudgments and estimates that are reasonable and prudent so as to give a true and fair viewof the state of affairs of the Company at the end of the financial year and of the profitsof the Company for that period;

c) They have taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of the Companies Act 2013 forsafeguarding the assets of the Company and for preventing and detecting fraud and otherirregularities;

d) They have prepared the annual accounts on a going concern basis;

e) They have laid down internal financial controls for the Company and such internalfinancial controls are adequate and operating effectively; and

f) They have devised proper systems to ensure compliance with the provisions of allapplicable laws and such systems are adequate and operating effectively.

CORPORATE SOCIAL RESPONSIBILITY

The Company has constituted a Corporate Social Responsibility (CSR) Committee inaccordance with Section 135 of the Companies Act 2013. The role of the committee is toreview the CSR Policy approve activities to be undertaken by the Company towards CSRmainly in education sector and monitor implementation of projects and activitiesundertaken by the Company towards CSR.

The CSR Policy of the Company is available on the website www.alankit.in/policies. Thebrief outline of the Corporate Social Responsibility (CSR) Policy of the Company asadopted by the Board and the initiatives undertaken by the Company on CSR activitiesduring the year under review are set out as a part of this Annual report in the formatprescribed in the Companies (Corporate Social Responsibility Policy) Rules 2014.

CORPORATE GOVERNANCE

As per Regulation 34(3) read with Schedule V of the Listing Regulations a separatesection on corporate governance practices followed by the Company together with acertificate from the Company's Auditors confirming compliance forms an integral part ofthis Report.

We ensure that we evolve and follow the corporate governance guidelines and bestpractices diligently not just to boost long term shareholder value-but also to respectsthe rights of minority. We consider it our inherent responsibility to disclose timely andaccurate information regarding the operations and performance leadership and governanceof the company.

CFO CERTIFICATION

The Chief Financial Officer has duly given a certificate to the Board as contemplatedin Regulation 17(viii) of the listing agreement.

Pursuant to Regulation 33 (2) (a) the CFO is required to sign the Certificate of theCompany certifying that the financial results do not contain any false or misleadingstatement or figures and do not omit any material fact which may make the statements orfigures contained therein misleading. The CFO has given the Certificate to fulfill theSEBI Listing Regulations 2015 requirement.

SUBSIDIARIES ASSOCIATES AND JOINT VENTURE

As on March 31 2021 the Company has Four (4) Wholly Owned Subsidiaries and One (1)Subsidiary. There is no associate or Joint Venture within the meaning of Section 2(6) ofthe Companies Act 2013. In accordance with Section 129(3) of the Companies Act 2013 thecompany has prepared consolidated financial statements of the Company which form part ofthis Annual Report. Further a statement containing the salient features of the FinancialStatements of Subsidiary Companies in prescribed Format AOC -1 is annexed herewith.

Further pursuant to the provisions of Section 136 of the Act the financial statementsof the Company consolidated financial statements along with relevant documents andseparate audited financial statements in respect of subsidiaries are available on thewebsite of the Company https://www.alankit.in/investorcorner.

MATERIAL SUBSIDIARY

Alankit Forex India Limited is a material subsidiary of the Company as per thethresholds laid down under the provisions of SEBI (Listing Obligations and DisclosureRequirements) Regulations 2015. The Board of Directors of the Company has approved aPolicy for determining material subsidiaries which is in line with the Listing Regulationsas amended from time to time. The Policy was revised in line with the amendments made tothe Listing Regulations. The Company has put in place a policy for determining materialsubsidiaries of the Company and uploaded on the Company's website atwww.alankit.in/policies.

INTERNAL FINANCIAL CONTROLS AND THEIR ADEQUACY

The Company is having an adequate Internal Financial Control system commensurate withthe size scale and complexity of its operations. The internal control systems comprisingof policies and procedures are designed to ensure sound management of your Company'soperations safe keeping of its Assets optimal utilization of Resources reliability ofits financial information and compliance. Based on the report of Internal Audit functioncorrective actions are undertaken in the respective areas and thereby strengthen thecontrols. During the Financial year no material or serious observations were receivedfrom the Internal Auditors of the Company for inefficiency or inadequacy of such controls.

MATERIAL CHANGES AND COMMITMENT AFFECTING THE FINANCIAL POSITION OF THE COMPANY

No other material changes and commitment occurred which would affect the financialposition of the company after the closure of the financial year 2020-21 till the date ofthis report.

DECLARATION AND STATEMENT ON COMPLIANCE OF CODE OF CONDUCT BY INDEPENDENT DIRECTORS

The Independent Directors of your Company have given Declaration confirming that theymeet the criteria of Independence as prescribed both under the Companies Act 2013 and theListing Regulations.

It is also stated that Independent Directors have complied with the Code forIndependent Directors prescribed in Schedule IV to the Act.

BOARD MEETINGS

The details of the Number of meetings of the Board held during the Financial Year2020-21 forms part of the Corporate Governance Report in respect of which proper noticeswere given and the proceedings were properly recorded.

DIRECTORS AND KEY MANAGERIAL PERSONNEL

The Board consists of executive and non-executive Directors including independentDirectors who have wide and varied experience in different disciplines of corporatefunctioning. Mr. Ankit Agarwal (DIN: 01191951) retires as Managing Director to meet therequirement of Section 152 of the Companies Act 2013 and being eligible offers himselffor re-appointment at the ensuing Annual General Meeting and the Board also recommends hisre-appointment.

Mr. Yash Jeet Basrar (DIN: 00112857) Non-Executive Independent Director of theCompany aged 74 years whose present term of office is 5 years from 04th July2019 to 3rd July 2024 but his continuation w.e.f. 7th September2021 requires approval of members in the ensuing Annual General Meeting as being more than75 years of age. The Board recommends his appointment which is subject to the approval ofmembers in the ensuing Annual General Meeting.

Ms. Khushboo Arora resigned from the position of Company Secretary and ComplianceOfficer of the Company w.e.f. 02nd April 2021 and Ms. Ritu Tomar was appointedas Company Secretary and Compliance Officer of the Company with effect from 8thApril 2021.

Ms. Ritu Tomar is an associate member of Institute of Company Secretaries of India andB.com from Delhi University. She has experience in handling all Listed Compliances aswell as all corporate Laws. Ms. Ritu Tomar is not related with the Promoters Directorsand Key Managerial Personnel of the Company and their relatives.

Mr. Perminder Singh Saini a Cost Accountant by profession resigned from the post ofChief Financial Officer ("CFO") on 08th June 2020 owing to personalreasons.

Mr. Gaurav Maheshwari was appointed as the Chief Financial Officer ("CFO") ofthe company w.e.f. 15th September 2020.

Mr. Gaurav Maheshwari is a qualified Chartered Accountant (C.A) from Institute ofChartered Accountants of India and Bachelor in Commerce from MJP Rohilkhand Universityhaving varied experience of more than 5 years in financial reporting financial planningbudgeting forecasting IND AS compliance Statutory Audits Internal Audits Tax AuditsStock Audits.

He has a proven ability of handling finance functions Preparation & Finalizationof Monthly/Annual Balance Sheet Coordinating with Banks for Debt financing Loanrestructuring and Fund management Review monthly Audit schedules and support internal andexternal Audit requirements etc. Mr. Gaurav Maheshwari is not related with the PromotersDirectors and Key Managerial Personnel of the Company and their relatives.

AUDITORS

STATUTORY AUDITORS

The reports of the Statutory Auditors M/s B.K. Shroff & Co. Chartered Accountantson the standalone and consolidated financial statements of the Company for the financialyear 2020-21 form part of this Annual Report. The Notes on financial statement referred toin the Auditor's Report are self-explanatory and do not call for any further comments. TheStatutory Auditors have submitted an unmodified opinion on the audit of financialstatements for the financial year 2020-21and there is no qualification adverse remark ordisclaimer given by the Auditors in their Report.

SECRETARIAL AUDITORS

The Company appointed M/s N. C. Khanna Practicing Company Secretaries to conduct theSecretarial Audit for the financial year 2020-21pursuant to the provisions of Section 204of the Companies Act 2013 and the Companies (Appointment and remuneration of ManagerialPersonnel) Rules 2014 for conducting secretarial Audit. The Secretarial Audit report isattached with the Directors' Report in Form MR-3 which is self-explanatory and needs nocomments. The Secretarial Audit Report does not contain any qualification reservation oradverse remark. The Company complies with all applicable secretarial standards.

AUDITOR'S STATEMENT

During the year under review neither the statutory auditors nor the secretarialAuditors have reported to the audit committee under section 143(12) of the Companies Act2013 any instances of fraud committed against the Company by its officers or employeesthe details of which need to be mentioned in the Board's report.

STATE OF COMPANY'S AFFAIRS

Alankit Limited is listed on both the premier exchanges of the Country i.e. NationalStock Exchange of India (NSE) and Bombay Stock Exchange of India (BSE). Alankit Limitedhas managed to become an eminent name in the E-governance Sector.

With 19 regional offices spread nationwide and a total of over 8000 businessloacations. Alankit has carved a niche for itself in the market. The Company has achievedseveral notable milestones to ornate its journey of well-defined vision steered skillfullyinto practice.

The present state of Company's affairs is progressive enough viz-a-viz the industry andthere is no other development which could result in an adverse situation for the Companyin the near future.

CONSERVATION OF ENERGY RESEARCH AND DEVELOPMENT TECHNOLOGY ABSORPTION AND FOREIGNEXCHANGE EARNINGS AND OUTGO

A. Conservation of Energy

The Company is engaged in providing e-governance services and e-governance products andsuch operations do not account for substantial Electricity Gas & Steam Power Wateror any other kind of energy consumption. However the company is taking all possiblemeasures to conserve the energy.

Your company is continuously looking for new ways of conservation of energy and wastesminimization for the protection of environment. The eco-friendly initiatives adopted byyour company are:

0 Installation of LED lights in all the offices nationwide.

0 Implementing energy conservation schemes.

0 Awareness programs for employees at all levels and for community.

0 Promoting the use of alternative fuels and materials.

B. Technology Absorption and Research & Development

Since the Company is not involved in manufacturing activity hence the research &development and technology absorption is not applicable.

The Company has not incurred any expenditure on Research & Development. Yourcompany has not imported technology during the last 8 years reckoned from the beginning ofthe financial year.

C. Foreign Exchange Earnings and Outgo

Foreign Exchange Earnings: Nil Foreign exchange Outgo: Rs. 17580493/-

PARTICULARS OF EMPLOYEES

None of the employees including managerial personnel draws in excess of the limitsprescribed under Section 197(12) of the Companies Act 2013 read with rules 5(2) and 5(3)of the Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014 whichneeds to be disclosed in the Directors' report.

COMPOSITION OF VARIOUS COMMITTEES OF THE BOARD

The following Committees of the Board were constituted:

AUDIT COMMITTEE
1. Mr. Yash Jeet Basrar - Chairman
2. Mr. Ashok Shantilal Bhuta - Member
3. Mrs. Preeti Chadha - Member

NOMINATION AND REMUNERATION COMMITTEE

1. Mr. Yash Jeet Basrar - Chairman
2. Mr. Ashok Shantilal Bhuta - Member
3. Mrs. Preeti Chadha - Member

STAKEHOLDERS RELATIONSHIP COMMITTEE

1. Mr. Yash Jeet Basrar - Chairman
2. Mr. Ashok Shantilal Bhuta - Member
3. Mrs. Preeti Chadha - Member

MANAGEMENT COMMITTEE

1. Mr. Ankit Agarwal - Chairman
2. Mr. Yash Jeet Basrar - Member
3. Ms. Preeti Chadha - Member

CORPORATE SOCIAL RESPONSIBILITY COMMITTEE

1. Mr. Yash Jeet Basrar - Chairman
2. Mr. Ashok Shantilal Bhuta - Member
3. Mr. Ankit Agarwal - Member

RISK MANAGEMENT COMMITTEE

1. Mr. Ashok Shantilal Bhuta - Chairman
2. Mr. Yash Jeet Basrar - Member
3. Mrs. Meera Lal - Member

RELATED PARTY TRANSACTIONS

The Company has formulated and put in place policy on materiality of related partytransactions and also a policy on dealing with related party transactions with theCompany. For Related Party Transactions please refer note no. 32 of Financial Statementsof the Company para 13 of Annexure-A to the Auditor's report for the financial year2020-21.The information on transactions with related parties pursuant to Section 134(3)(h) of the Act read with Rule 8(2) of the Companies (Accounts) Rules 2014 are given inForm No. AOC-2 and the same forms part of this report.

PARTICULARS OF LOANS GUARANTEE OR INVESTMENTS

Details of Loans Guarantees or investments covered under section 186 of the CompaniesAct 2013 are provided in the notes to the Financial Statements.

COMPLIANCE WITH SECRETARIAL STANDARDS

The Company is in compliance with the applicable Secretarial Standards issued by theInstitute of Company Secretaries of India and approved by the Central Government underSection 118 (10) of the Companies Act 2013.

VIGIL MECHANISM/WHISTLE BLOWER POLICY

The Company has a Whistle Blower Policy to report genuine concerns or grievances and toprovide adequate safeguards against victimization of persons who may use such mechanism.The Whistle Blower Policy has been posted on the website of the Company atwww.alankit.in/policies.

NOMINATION REMUNERATION AND BOARD DIVERSITY POLICY

The Board of Directors has framed a policy which lays down a framework in relation toremuneration of Directors Key Managerial Personnel and Senior Management of the Company.The Policy broadly lays down the guiding principles philosophy and the basis for paymentof remuneration to Executive and Nonexecutive Directors (by way of sitting fees andcommission) Key Managerial Personnel Senior Management and other employees. The policyalso provides the criteria for determining qualifications positive attributes andIndependence of Director and criteria for appointment of Key Managerial Personnel / SeniorManagement and performance evaluation which are considered by the Nomination andRemuneration Committee and the Board of Directors while making selection of thecandidates. The above policy has been posted on the website of the Companywww.alankit.in/policies.

DISCLOSURE OF MANAGERIAL REMUNERATION

The Statement of Disclosure of Remuneration under Section 197 of the Companies Act2013 and Rule 5(1) of Companies (Appointment and Remuneration of Managerial Personnel)Rules 2014 is appended as Annexure to the Report.

DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION. PROHIBITIONAND REDRESSAL) ACT 2013

The Company has in place an Anti-Sexual Harassment Policy in line with the requirementsof The Sexual Harassment of Women at the Workplace (Prevention Prohibition and Redressal)Act 2013. Internal Complaints Committee (ICC) has been set up to redress complaintsreceived regarding sexual harassment. All employees (permanent contractual temporarytrainees) are covered under this policy.

The following is a summary of sexual harassment complaints received and disposed offduring the financial year 2020-21:

No. of Complaints received: Nil

No. of Complaints disposed of: Nil

REPORTING OF FRAUDS

There was no instance of fraud during the year under review which required theStatutory Auditors/ Secretarial Auditors to report to the Audit Committee and / or Boardunder Section 143(12) of Act and Rules framed there under.

RISK MANAGEMENT

Risk management is embedded in your Company's operating framework. Your Companybelieves that managing risks helps in maximizing returns. The Board of Directors of theCompany has formed a Risk Management Committee to frame implement and monitor the riskmanagement plan for the Company. The Committee is responsible for monitoring and reviewingthe risk management plan and ensuring its effectiveness.

The risk management framework is reviewed periodically by the Board Audit Committeeand Risk Management Committee.

EXTRACT OF THE ANNUAL RETURN

As per the requirements of Section 92(3) of the Act and Rules framed thereunder theextract of the annual return for FY 2020-21 is given in Annexure III in the prescribedForm No. MGT-9 which is a part of this report. The same is available onwww.alankit.in/AnnualReturn.

APPRECIATION

Your Directors take this opportunity to express their grateful appreciation for thecontinued support and co-operation received from our esteemed employees customersvendors dealers investors business associates and bankers during the year. YourDirectors also place on record their appreciation and gratitude to all the Departments ofGovernment of India Central Government State Government Tax Authorities Reserve Bankof India Ministry of Corporate Affairs Financial Institutions Stock Exchanges and othergovernmental/ Semi governmental bodies and look forward to their continued support in allfuture endeavors .

Your Directors deeply regret the loss of lives due to COVID-19 pandemic impact. Theyare immensely grateful for every person who risked his life and safety to fight thispandemic bravely.

Your Company has been able to operate efficiently because of the culture ofprofessionalism creativity integrity and continuous improvement in all functions andareas as well as the efficient utilization of the Company's resources for sustainable andprofitable growth.

Inspired by this Vision driven by Values and powered by internal Vitality we lookforward to delivering another year ofvalue adding growth.

BY ORDER OF THE BOARD OF DIRECTORS
For ALANKIT LIMITED
YASH JEET BASRAR INDEPENDENT DIRECTOR PREETI CHADHA DIRECTOR
DATE: 14.08.2021
PLACE: New Delhi

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