Alkali Metals Limited
Your Directors have pleasure in presenting the 54 Annual Report on the businessand operations of the Company and the accounts for the Financial Year ended March 312022.
1. Results of our operations
The results of our Operations for the Financial Year ended March 31 2022 is summarizedas below:
(All figures in Rs Lakhs)
|Particulars || |
Financial Year 2021-22
|Financial Year 2020-21 |
|Turnover || |
|Other Income || |
|Total Revenue || |
|Profit/(Loss) before finance charges depreciation and taxation || |
|Less : Finance Charges || |
|Depreciation and Amortization expense || |
|Profit/(Loss) before exceptional items and tax || |
|Less: Exceptional items || |
|Profit/(Loss) before tax || |
|Less : Current Year's tax (MAT) || |
|MAT Credit Entitlement || |
|Deferred Tax || |
|Profit/(Loss) After tax || |
|Other Comprehensive Income (net) || |
|Total Comprehensive income for the period || |
During the year 2021-22 the Company recorded a turnover of Rs 9101.59 Lakhs and NetProfit of Rs 352.78 Lakhs compared to the turnover of Rs 5537.70 Lakhs and Net Loss of Rs91.53 Lakhs of previous year 2020-21.
The Management put its best efforts and with the support of the all the employees yourCompany could achieve the highest ever turnover and as a result earned Rs 503.41 LakhsProfit before tax. After the Second and Third Wave of Covid-19 the markets opened up andthe Companys products were in demand in the International Market which resulted inhigher exports and better performance. The Company hopes that situation stays stable andsimilar trend continues in the future as well.
In view of the good performance of the Company the Board of Directors have recommendeddividend of 20 % amounting Rs 2 per equity share of Rs 10 each paid-up for the approval ofthe shareholders at the ensuing Annual General Meeting for the Financial Year 2021-22. Thesaid dividend will be paid to shareholders who hold shares as on record date within 30days of declaration by the shareholders.
During the year under review Company had not transferred any amount to GeneralReserves.
4. Future outlook
As per forecast the Chemical Industry is expected to grow 9% p.a. However impendingCovid waves and economic conditions the industry has become volatile.
The Company is continuously working on identifying new products processes andcommercializing the new products based on the Industry and client requirements. YourDirectors are expecting expansion of its product base thereby increase in turnover andmargins.
5. Research & Development
The Company has spent Rs 141.79 Lakhs towards Research and Development during theFinancial Year under review and is putting continuous efforts in R&D to develop thenew products and process for optimum material consumption by 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 theCompany 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 ortribunals 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 Companyfor ensuring the orderly and efficient conduct of its business including safeguarding ofall its assets and prevention/detection of frauds and errors accuracy and completeness ofaccounting records.
The Auditors have verified the internal financial controls and tested the adequacy andthe procedures adopted by the Company and confirm that the controls are adequate to thesize of the transactions. The audit committee reviews and monitors the controls andprocess on a regular basis.
10. Risk Management
The Management of the Company will take adequate steps in identifying assessingcontrolling and mitigating the risks associated with different areas of its businessoperations.
11. Details of Subsidiary/Joint Ventures/Associate Companies
Your Company had no subsidiaries Joint Ventures and associate companies during theFinancial Year under review.
Your Company has not accepted any deposits covered under Chapter V of the CompaniesAct 2013 during the year under review and also no outstanding deposits at the beginningof the Financial Year.
The members at the 51 Annual General Meeting of the Company held on August 3 2019 hadappointed M/s. G. Nagendrasundaram & Co. Chartered Accountants as Statutory Auditorsfor a term of 5 years from the conclusion of the 51 Annual General Meeting on suchremuneration as may be determined by the Board of Directors. The members may note that theMinistry of Corporate Affairs vide notification dated May 7 2018 has done away with therequirement of yearly ratification of appointment of Statutory Auditors at the AGM.Therefore there is no proposed resolution at the ensuing Annual General Meeting.
Pursuant to Section 139 of the Companies Act 2013 the statutory auditors G.Nagendrasundaram & Co. Chartered Accountants have confirmed they are eligible tocontinue as auditors. Their report for the Financial Year 2021-22 does not contain anyqualification reservation or adverse remark.
The Board of Directors of the Company had appointed M/s. Ramakrishna & AssociatesChartered Accountants as Internal Auditors to conduct the Internal Audit of the companyfor the Financial Year ended March 31 2022.
M/s. Ramakrishna & Associates Chartered Accountants have been re-appointed asInternal Auditors for FY 2022-23.
The Board of Directors of the Company had appointed CS B. Venkatesh Babu PracticingCompany Secretary as Secretarial Auditor to conduct Secretarial Audit and SecretarialCompliance Report of the Company for the Financial Year ended March 31 2022 and hisreport does not contain any qualification reservation or adverse remark.
CS B. Venkatesh Babu Practicing Company Secretary has been re-appointed as SecretarialAuditor for FY 2022-23.
14. Share Capital
Your Company had not issued and raised any share capital including sweat equityemployee stock options during the Financial Year under review. Your Company has also notprovided any money for purchase of its own shares by employees or for the benefit ofemployees.
15. Extract of the Annual Return
Pursuant to the provisions of Section 92(3) read with Section 134(3) (a) of theCompanies Act 2013 a copy of the Annual Return of the Company is available at theCompanys website www.alkalimetals.com.
16. Conservation of energy technology absorption and foreign exchange earnings andoutgo
The details of conservation of energy technology absorption foreign exchange earningsand outgo have been provided in Annexure - 1 and shall form part of this report.
17. Corporate Social Responsibility (CSR)
The provisions of the Section 135 of the Companies Act 2013 relating to CorporateSocial Responsibility are not applicable to the Company for the Financial Year 2021-22.However the Promoters on their part realize their responsibility towards the society byproviding financial assistance towards education to the needy students through aCharitable Trust run by them. During the year Company contributed an amount of Rs 3 Lakhsto the Dr. Y.V.S. Murty Charitable Trust to achieve this object.
The provisions of Section 135 of Companies Act 2013 are applicable to the Company forthe financial year 2022-23 based on the profit earned by the Company during 2021-22.Accordingly the Company is taking steps to form CSR committee and implement the CSRactivities in compliance of the provisions of Section 135 of the Companies Act 2013 readwith rules made thereunder.
During the year under review at the AGM held on August 21 2021 Dr. A.R. Prasad wasappointed as a Director liable to retire by rotation. He was originally appointed as anAdditional Director by the Board of Directors wherein his tenure was upto the AGM held onAugust 21 2021.
ii Retire by Rotation:
Further Smt. Y. Lalithya Poorna Director retires by rotation and is eligible forreappointment at the ensuing Annual General Meeting.
Details of composition of the Board number of Board meetings and profile of directorsare covered under the Corporate Governance section.
Declaration by an Independent Director
Company had received the declarations by all the Independent Directors that they meetthe criteria of independence as per the provisions of Section 149 of the Companies Act2013 and they are registered with Indian Institute of Corporate Affairs (IICA) as per theamended provisions of the Companies Act 2013.
Formal Annual Evaluation
Pursuant to the provisions of the Companies Act 2013 the Board has devised a policyon evaluation of performance of Board of Directors Committees and Individual Directors.Accordingly the Chairman of the Nomination and Remuneration Committee obtained from allthe Board members duly filled in evaluation templates for evaluation of the Board as awhole evaluation of the committees and peer evaluation. The summary of the evaluationreports were presented to the respective Committees and the Board for their consideration.
19. Key Managerial Personnel
There was no change in the Key Managerial Personnel during the year under review.
20. Directors Responsibility Statement
As per the provisions of clause (c) of sub-section (3) of Section 134 of the CompaniesAct 2013 your Directors shall state that
a) in the preparation of the annual accounts the applicable accounting standards havebeen followed along with proper explanation relating to material departures;
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 profitof 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 this Act for safeguarding theassets of the company and for preventing and detecting fraud and other irregularities;
d) the annual accounts on a going concern basis; and e) they have laid down internalfinancial controls to be followed by the company and that such internal financial controlsare adequate and were operating effectively.
f) proper systems to ensure compliance with the provisions of all applicable laws andthat such systems were adequate and operating effectively.
Your Company has Audit Committee Nomination and Remuneration Committee andStakeholders Relationship Committee and the details are provided in the CorporateGovernance section.
22. Vigil mechanism for Directors and Employees
The Company believes in the standard of conduct which all employees are expected toobserve in their business endeavors. The Code (Vigil Mechanism) reflects theCompanys commitment to principles of integrity transparency and fairness. The copyof the Code of Vigil Mechanism is available on the Company website www.alkalimetals.comunder Investors tab.
The Company has adopted a Whistle Blower Policy as part of vigil mechanism to provideappropriate avenues to the Directors and employees to bring to the attention of themanagement any issue which is perceived to be in violation of or in conflict with thefundamental business principles of the Company. The employees are encouraged to voicetheir concerns by way of whistle blowing and all the employees have been given access tothe Audit Committee.
Sri Y.S.R. Venkata Rao Managing Director is designated as ombuds person to deal withall the complaints registered under the policy.
23. Policy on prevention of sexual harassment of women at workplace
There has always been an endeavor on the part of the Company to create and provide anenvironment that is free from discrimination and harassment including sexual harassment.The Company had adopted policy on Prevention of Sexual Harassment of Women at Workplace inaccordance with The Sexual Harassment of Women at Workplace (Prevention Prohibition andRedressal) Act 2013. During the year the Internal Complaints Committee has not receivedany complaints/incident of harassment.
24. Particulars of loans guarantees or investments
The Company had not given any loans guarantees or made investments as per theprovisions of Section 186 of the Companies Act 2013 during the Financial Year underreview. Also there are no outstanding amounts of loans given guarantees provided and/orinvestments 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 PartyTransactions which are all on arms length basis; details of all such transactions asrequired under section 188 of Companies Act are annexed in Form AOC-2 forming part of theBoards Report as Annexure-2.
The Company has formulated a policy on materiality of Related Party Transactions anddealing with Related Party Transactions which can be accessed at the Company websitewww.alkalimetals.com under Investors tab.
26. Managerial Remuneration / Employee Details
The Details required to be provided pursuant to Rule 5(1) of the Companies (Appointmentand Remuneration of Managerial Personnel) Rules 2014 are annexed and forming part of theBoards Report as Annexure -3.
There are no employees in the Company in receipt of amounts covered in rule 5(2) of theCompanies (Appointment and Remuneration of Managerial Personnel) Rules 2014. The top 10employees details shall be provided to the shareholders who make specific request to theCompany.
27. Secretarial Audit Report
Secretarial Audit Report including Secretarial Compliance Report as per SEBI (LODR)Regulations for the Financial Year 2021-22 obtained from CS B. Venkatesh Babu CompanySecretary in Practice is annexed and forming part of the Boards Report as Annexure-4.
28. Corporate Governance/Management Discussion and Analysis
In terms of Regulation 34 of the SEBI (LODR) Regulations 2015 a Report on CorporateGovernance along with Compliance Certificate issued by Statutory Auditors of theCompany and also the Management Discussion and Analysis report is annexed and formsintegral part of the Boards Report.
All the properties and insurable interests of the Company including Building Plant andMachinery and Stocks have been adequately insured. The Company also has Directors &Officers Indemnity Policy for Directors and Key Managerial Personnel and group accidentalpolicy to all the workmen and staff. Furthermore a group medical policy is provided to thestaff who are not covered under ESI policy.
30. Listing on Stock Exchanges
The securities of the Company are continued to be listed on BSE and NSE. The listingfees for these stock exchanges are paid till the current Financial Year.
31. Cost Records
Pursuant to provisions of section 148 of the Companies Act 2013 read with Companies(Cost Records and Audit) Rules 2014 the Company is maintaining Cost Records.
32. Compliance of Secretarial Standards
The Company has duly complied with the applicable Secretarial Standards issued by TheInstitute of Company Secretaries of India for the Board and General Meetings.
Your Directors are pleased to record their appreciation for the sincere and dedicatedservices of the employees and workmen at all levels. Your Directors express theirgratitude to all stakeholders- shareholders customers suppliers business associatesbankers regulatory and Government Authorities for their continued support at all times.
Your Directors look forward to have continued support in our future endeavors.
| ||For and on behalf of Board of Directors |
| || ||For Alkali Metals Limited |
| ||Y.S.R. Venkata Rao ||Dr. J.S. Yadav |
|Place : Hyderabad ||Managing Director ||Director |
|Date : May 24 2022 ||DIN: 00345524 ||DIN: 02014136 |