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Alkali Metals Ltd.

BSE: 533029 Sector: Industrials
NSE: ALKALI ISIN Code: INE773I01017
BSE 11:42 | 09 Dec 141.85 -0.35
(-0.25%)
OPEN

145.10

HIGH

145.95

LOW

141.70

NSE 11:29 | 09 Dec 142.45 -0.65
(-0.45%)
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145.80

HIGH

147.00

LOW

142.10

OPEN 145.10
PREVIOUS CLOSE 142.20
VOLUME 1649
52-Week high 154.00
52-Week low 73.60
P/E 52.73
Mkt Cap.(Rs cr) 144
Buy Price 142.00
Buy Qty 1.00
Sell Price 142.50
Sell Qty 14.00
OPEN 145.10
CLOSE 142.20
VOLUME 1649
52-Week high 154.00
52-Week low 73.60
P/E 52.73
Mkt Cap.(Rs cr) 144
Buy Price 142.00
Buy Qty 1.00
Sell Price 142.50
Sell Qty 14.00

Alkali Metals Ltd. (ALKALI) - Auditors Report

Company auditors 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 31st March2022 the Statement of Profit and Loss (including Other Comprehensive Income) theStatement of Changes in Equity and statement of Cash Flows for the year then ended andNotes to the Financial Statements including a summary of significant accounting policiesand other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by theCompanies Act 2013 in the manner so required and give a true and fair view in conformitywith the Indian Accounting Standards prescribed under section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended ("Ind AS") andother accounting principles generally accepted in India of the state of affairs of theCompany as at March 31 2022 and its Profit and other comprehensive income changes inequity 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 onAuditing (SAs) specified under section 143(10) of the Companies Act 2013. Ourresponsibilities under those Standards are further described in the Auditor’sResponsibilities for the Audit of the Financial Statements section of our report. We areindependent of the Company in accordance with the Code of Ethics issued by the Instituteof Chartered Accountants of India together with the ethical requirements that are relevantto our audit of the financial statements under the provisions of the Companies Act 2013and the Rules thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the Code of Ethics. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for our auditopinion on the financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters. Wehave 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 otherinformation. The other information obtained at the date of this auditor’s reportcomprises the information included in the Management Discussion and Analysis Board’sReport including Annexures to Board’s Report and Shareholder’s Information butdoes 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 donot express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated.

If based on the work we have performed on the other information obtained prior to thedate of this auditor’s report we conclude that there is a material misstatement ofthis other information we are required to report that fact. We have nothing to report inthis regard.

Responsibilities of Management and Those Charged with Governance for the FinancialStatements

The Company’s Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance total comprehensive income changes in equity and cash flows of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Ind AS specified under section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

In preparing the financial statements the management is responsible for assessing theCompany’s ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless themanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the company’sfinancial reporting process. Auditor’s Responsibilities for the Audit of theFinancial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand toissue an auditor’s report that includes our opinion. Reasonable assurance is ahigh level of assurance but is not a guarantee that an audit conducted in accordance withSAs will always detect a material misstatement when it exists. Misstatements can arisefrom fraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order todesign 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 whetherthe company has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concernbasis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany’s ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor’s report to therelated disclosures in the financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor’s report. However future events or conditions may cause theCompany to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence 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 theCentral 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 thebooks and records of the Company as we considered appropriate and according to theinformation and explanations given to us we give in the Annexure-1 a statement on thematters 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 bestof 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 theCompany so far as it appears from our examination of those books.

c. The Balance Sheet the Statement of Profit and Loss (including other comprehensiveincome) the statement of cash flows and the statement of changes in equity dealt with bythis Report are in agreement with the books of account.

d. In our opinion the aforesaid said financial statements comply with the Ind ASspecified 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 March312022 and taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2022 from being appointed as a director in terms of Section164(2) of the Act.

f. With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure -2".

g. With respect to the other matters to be included in the Auditor’s Report inaccordance with the requirements of section 197(16) of the Act as amended we report thatthe remuneration paid by the Company to its directors during the year in our opinion andto the best of our information and according to the explanations given to us is inaccordance with the provisions of section 197 of the Act."

h. With respect to the other matters to be included in the Auditor’s Report inaccordance with Rule 11 of the Companies (Audit and Auditors) 2014 in our opinion and tothe best of our information and according to the explanations given to us;

i. The Company has disclosed the impact of pending litigations on its financialposition in its Ind AS financial statements.

ii. In our opinion and as per the information and explanations provides to us theCompany has not entered into any long-term contracts including derivative contractsrequiring provision under applicable laws or accounting standards for materialforeseeable losses and

iii. There has been no delay in transferring the amounts required to be transferredto the Investor Education and Protection Fund by the Company.

iv. a. The Management has represented that to the best of it’s knowledge andbelief as as disclosed in the note.49.4 to the accounts no funds have been advanced orloaned or invested (either from borrowed funds or share premium or any other sources orkind of funds) by the Company to or in any other person or entity including foreignentities ("Intermediaries") with the understanding whether recorded in writingor otherwise that the Intermediary shall directly or indirectly lend or invest in otherpersons or entities identified in any manner whatsoever by or on behalf of the Company("Ultimate Beneficiaries") or provide any guarantee security or the like onbehalf of the Ultimate Beneficiaries.

b. The Management has represented that to the best of it’s knowledge and beliefas disclosed in the note.49.4 to the accounts no funds have been received by the Companyfrom any person or entity including foreign entities ("Funding Parties") withthe understanding whether recorded in writing or otherwise that the Company shalldirectly or indirectly lend or invest in other persons or entities identified in anymanner whatsoever by or on behalf of the Funding Party ("UltimateBeneficiaries") or provide any guarantee security or the like on behalf of theUltimate Beneficiaries.

c. Based on the audit procedures performed that have been considered reasonable andappropriate in the circumstances nothing has come to our notice that has caused us tobelieve that the representations under sub-clause (i) and (ii) of Rule 11(e) contain anymaterial mis-statement.

i. The dividend declared and paid during the year by the company is in compliance ofSec.123 of the Companies Act 2013.

For G. Nagendrasundram & Co
Chartered Accountants
(FRN: 005355S)
B.N. Bharathi
Partner
Place : Hyderabad M.No. 236639
Date : May 24 2022 UDIN:22236639AJNCFW4431

ANNEXURE - 1 TO THE INDEPENDENT AUDITORS’ REPORT:

(Referred to in Paragraph 1 under section ‘Report on Other Legal and RegulatoryRequirements’ of our report of even date)

1.1.1. According to the information and explanations given to us the Company ismaintaining proper records showing full particulars including quantitative details andsituation of Property Plant and Equipment.

1.1.2. According to the information and explanations given to us the company ismaintaining proper records showing full particulars ofintangible assets.

1.2. According to the information and explanations given to us all the Property Plantand Equipment have been physically verified by the management at reasonable intervals andno material discrepancies were noticed on such verification.

1.3. The title deeds of all the immovable properties disclosed in the financialstatements are held in the name of the Company.

1.4. According to the information and explanations given to us the company has notrevalued its Property Plant and Equipment (including Right of Use assets) or intangibleassets or both during the year.

1.5. According to the information and explanations given to us no proceedings havebeen initiated or are pending against the company for holding any benami property underthe Benami Transactions (Prohibition) Act1988(45 of 1988) and rules made thereunder.

2.1 According to the information and explanations given to us the inventories havebeen physically verified at reasonable intervals by the management and in our opinion thecoverage and procedure of such verification by the management is appropriate. Nodiscrepancies 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 crorerupees in aggregate from banks or financial institutions on the basis of security ofcurrent assets and the quarterly returns or statements filed by the company with suchbanks or financial institutions are in agreement with the books of accounts of theCompany.

3. According to the information and explanations given to us company has not madeinvestments in provided any guarantee or security or granted any loans or advances in thenature of loans secured or unsecured to companies firms Limited Liability Partnershipsor 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 notgranted any loans has not made any investments nor given any guarantee or security toparties 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 notaccepted any deposits or amounts which are deemed to be deposits requiring complianceunder the directives issued by Reserve Bank of India and the provisions of Sections 73 to76 or any other relevant provisions ofthe Companies Act and the rules framed there under.

6. According to the information given to us the maintenance of cost records has notbeen specified by the Central Government under sub-section (1) of Section 148 of theCompanies Act and in our opinion prima facie such accounts and records have been so madeand maintained. However we have not carried out any detailed examination of such accountsand records.

7.1 According to the information and explanations given to us the company is generallyregular in depositing undisputed statutory dues including goods and service tax providentfund employees' state insurance income tax sales tax service-tax duty of customs dutyof excise value added tax cess and any other statutory dues to the appropriateauthorities.

According to the information and explanations given to us there are no arrears ofoutstanding statutory dues as at the last day of the financial year under audit for aperiod of more than six months from the date they became payable.

7.2 According to the information and explanations given to us there are no statutorydues referred to in sub-clause (a) which have not been deposited on account of dispute.

8. According to the information and explanations given to us there are no transactionsthat are not recorded in the books of account which have been surrendered or disclosed asincome during the year in the tax assessments under the income Tax Act1961.

9.1 According to the information and explanations given to us the Company has notdefaulted in repayment of loans or other borrowings or in the payment of interest thereonto any lender.

9.2 According to the information and explanations given to us the company is notdeclared 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 takenduring 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 thecompany on shortterm basis have not been utilised for long-term purposes.

9.5 According to the information and explanations given to us the company has nottaken any funds from any entity or person on account of or to meet the obligations of itssubsidiaries associates or joint ventures.

9.6 According to the information and explanations given to us the company has notraised loans during the year on the pledge of securities held in its subsidiaries jointventures or associate companies.

10.1 According to the information and explanations given to us the Company has notraised any money by way of initial public offer or further public offer during the yearunder audit.

10.2 According to the information and explanations given to us the Company has notmade any preferential allotment or private placement of shares or convertible debentures(fully partially or optionally) during the year under review. Hence compliances ofreporting requirement under Section 42 and Section 62 of the Companies Act 2013 whetherthe funds raised have been used for the purposes for which they were so raised is notapplicable to the Company.

11.1 According to the information and explanations given to us and based upon the auditprocedures performed by us any fraud by the Company or any fraud on the Company has notbeen noticed for reporting during the year.

11.2 According to the information and explanations given to us and based upon the auditprocedures performed by us no report under sub-section (12) of section 143 of theCompanies Act has been filed by the Auditors in Form ADT-4 as prescribed under rule 13 ofCompanies (Audit and Auditors) Rules2014 with the Central Government.

11.3 According to the information and explanations given to us the company has notreceived any whistleblower complaints during the year and hence considering the same byus does not arise.

12. As the Company is not a Nidhi Company under the provisions of the Companies Act2013 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 withthe related parties are in compliance with the provisions of Section 177 and 188 of theCompanies Act wherever applicable. According to the information given to us details ofsuch transactions have been disclosed in the financial statements as required by theapplicable accounting standards.

14.1 In our opinion the company has an internal audit system commensurate with thesize 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 notentered into any noncash transactions with directors or persons connected with him andhence reporting requirement on compliance with the provisions of Section 192 of theCompanies Act is not applicable.

16. According to the information and explanations given to us and in our opinion thecompany is not required to be registered under section 45-IA of the Reserve Bank of IndiaAct 1934. As the Company is not engaged in any non-banking financial or housing financeactivity nor is a Core Investment Company nor having more than one Core InvestmentCompany 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 andin 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 thefinancial ratios ageing and expected dates of realisation of financial assets and paymentof financial liabilities other information accompanying the financial statements ourknowledge of the plans of the Board of Directors and the management and in our opinion andbased upon our examination of the evidence supporting the assumptions furnished to us nomaterial uncertainty exists as on the date of audit report that the company is capable ofmeeting its liabilities existing at the date of balance sheet date as and when they falldue within a period of one year from the balance sheet date.

20. According to the information and explanations given to us the Company is notrequired to transfer any unspent amount to a Fund specified in Schedule VII to theCompanies Act as the provisions of Sec.135 does not apply for the F Y 2021-22.

For G. Nagendrasundram & Co
Chartered Accountants
(FRN: 005355S)
B.N. Bharathi
Partner
Place : Hyderabad M.No. 236639
Date : May 24 2022 UDIN:22236639AJNCFW4431

ANNEXURE - 2 TO THE INDEPENDENT AUDITOR’S REPORT:

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the

Companies Act 2013 ("the Act"):

We have audited the internal financial controls over financial reporting of ALKALIMETALS LIMITED ("the Company") as of March 31 2022 in conjunction with ouraudit 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 internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company’s policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit.

We conducted our audit in accordance with the Guidance Note on Audit of InternalFinancial Controls over Financial Reporting (the "Guidance Note") and theStandards on Auditing issued by ICAI and deemed to be prescribed under section 143(10) ofthe Companies Act 2013 to the extent applicable to an audit of internal financialcontrols both applicable to an audit of Internal Financial Controls and both issued bythe Institute of Chartered Accountants of India. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor’s judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company’s internal financial controlssystem over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that

1. Pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

2. Provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and

3. Provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2022 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls over Financial Reporting issued by the Institute of CharteredAccountants of India.

For G. Nagendrasundram & Co
Chartered Accountants
(FRN: 005355S)
B.N. Bharathi
Partner
Place : Hyderabad M.No. 236639
Date : May 24 2022 UDIN:22236639AJNCFW4431

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