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Alkali Metals Ltd.

BSE: 533029 Sector: Industrials
NSE: ALKALI ISIN Code: INE773I01017
BSE 00:00 | 08 Mar 52.35 0.35
(0.67%)
OPEN

52.45

HIGH

53.00

LOW

51.85

NSE 00:00 | 08 Mar 52.45 0.10
(0.19%)
OPEN

53.00

HIGH

53.00

LOW

51.70

OPEN 52.45
PREVIOUS CLOSE 52.00
VOLUME 1890
52-Week high 68.45
52-Week low 20.65
P/E
Mkt Cap.(Rs cr) 53
Buy Price 47.00
Buy Qty 1.00
Sell Price 52.60
Sell Qty 227.00
OPEN 52.45
CLOSE 52.00
VOLUME 1890
52-Week high 68.45
52-Week low 20.65
P/E
Mkt Cap.(Rs cr) 53
Buy Price 47.00
Buy Qty 1.00
Sell Price 52.60
Sell Qty 227.00

Alkali Metals Ltd. (ALKALI) - Director Report

Company director report

To

The Members

Alkali Metals Limited

Your Directors have pleasure in presenting the 52nd Annual Report on thebusiness and operations of the Company and the accounts for the Financial Year ended 31stMarch 2020.

1. Financial Summary or Highlights/ Performance of the Company

The performance of the company for the financial year ended 31st March 2020is summarized as below:

Particulars 2019-20 2018-19
Turnover 708458245 715562262
Other Income 5700130 3975725
Total Revenue 714158375 719537988
Profit/(Loss) before finance charges depreciation and taxation 72429167 78160649
Less : Finance Charges 24653335 27097451
Depreciation and Amortization expense 34458468 34141716
Profit/(Loss) before exceptional items and tax 13317365 16921482
Less : Exceptional items 2153943 0
Profit/(Loss) before tax 11163422 16921482
Less : Current Year's tax (MAT) 1434754 3560365
MAT Credit Entitlement (1434754) (3560365)
Previous Years (1385430) 0
Profit/(Loss) After tax 12548851 16921482
Other Comprehensive Income (net) (3025291) 1883398
Total Comprehensive income for the period 9523560 18804880

2. Impact of Covid-19

Unexpected global pandemic Covid-19 had a significant impact on the operations of theCompany the Detailed Impact of Covid-19 is provided in Annexure - 1 which forms part ofthe Director Report.

3. Dividend

During the year under review the Board of Directors had declared a Interim Dividend of' 1 per equity share of ' 10 each at their meeting held on 29th January 2020 keeping inview the better performance for 3 quarters. It was duly paid within 30 days of thedeclaration. In view of the unexpected Covid-19 pandemic Company's operations wereaffected during the last quarter of the financial year and with uncertainty prevailingover the near future the Board is of the opinion that conserving of reserves isessential. Thereby the Board is recommending that the Shareholders may confirm theInterim Dividend as the Final Dividend for the financial year 2019-20.

4. Reserves

During the year under review Company had not transferred any amount to GeneralReserves.

5. Brief description of the Company's performance during the year

During the year 2019-20 the Company recorded a turnover of ' 7084 Lakhs and Net Profitof ' 95 Lakhs compared to the turnover of ' 7156 Lakhs and Net Profit of ' 188 Lakhsprevious year 2018-19.

The Company was able to achieve a turnover of ' 5930 Lakhs turnover and net profit of '347 Lakhs upto December 2019 however the Quarter 4 of FY 2019-20 turned out to be lessprofitable for the Company due to the Covid-19 pandemic. The exports were very less andthereby the margins had come down significantly. Furthermore the exceptional items andyear end provisions had an impact on the Company's profit.

6. Future outlook

Amid the Covid-19 pandemic several countries across the world India resorted tolockdowns to “flatten the curve” of the infection. These lockdowns meantshutting down businesses and ceasing almost all economic activity. According to theInternational Monetary Fund (IMF) this was the steepest slowdown since the GreatDepression of the 1930s. Your Company was no different and due to the lockdown Quarter 1till date performance was significantly impacted. The pandemic continues to have anoverall impact on the business of the Company.

With no signs of the pandemic slowing down the Management expects that the currentsituation is likely to continue for some time and there are likely hurdles in capacityutilization logistics material availability finances manpower and demand etc.

The Management on its part continues to strictly adhere to the guidelines provided bythe Government of India Government of Telangana and Government of Andhra Pradesh in orderto ensure the safety and well being of its employees.

The Management hopes that the economy aiding measures introduced by the Governmentcould provide the much needed push and also hopes that the situation improves in thecoming days.

7. Research & Development

The company has spent ' 88 Lakhs towards Research and Development during the financialyear and is putting continuous efforts in R&D to develop the new products and processfor optimum material consumption by effective yield.

The revenues generated by the R&D products for the last 3 years are

2017-18 2018-19 2019-20
741 42 40

8. Change in the nature of business if any

Company had not changed its nature of business during the year under review.

9. Material changes and commitments after the closure of financial year

Other than significant impact of Covid-19 pandemic. There are no material changes orcommitments affecting the financial position of the Company between the end of thefinancial year and the date of the report.

10. 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.

11. 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.

Auditors have verified the internal financial controls and tested the adequacy and theprocedures adopted by the company and confirm that the controls are adequate to the sizeof the transactions. The management reviews and monitors the controls and process on aregular basis.

12. 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.

13. Details of Subsidiary/Joint Ventures/Associate Companies

Your company had no subsidiaries Joint Ventures and associate companies during thefinancial year under review.

14. Deposits

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.

15. Auditors

Statutory Auditors

The members at the 51st Annual General Meeting of the Company held on 3rd August 2019had appointed M/s. G. Nagendrasundaram & Co. Chartered Accountants as StatutoryAuditors for a term of 5 years from the conclusion of the 51st Annual General Meeting onsuch remuneration as may be determined by the Board of Directors. The members may notethat the Ministry of Corporate Affairs vide notification dated May 07 2018 has done awaywith the requirement of yearly ratification of appointment of Statutory Auditors at theAGM.

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. There are no qualifications reservation or adverse remark ordisclaimer made in the audit report for the Financial Year 2019-20.

Internal Auditors

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 31st March 2020 and his reports during the financial year2019-20 does not contain any qualification reservation or adverse remark.

Secretarial Auditors

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 31st March 2020 and hisreports does not contain any qualification reservation or adverse remark.

16. 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.

17. Extract of the Annual Return

The extract of the annual return in Form MGT - 9 is annexed and forming part of theBoard's Report as Annexure -2.

18. 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 - 3 and shall form part ofthis report.

19. 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. However the Promoters on theirpart realize their responsibility towards the society and provide free medical help to thepoor people and financial assistance to the poor students through a Charitable Trust runby them during the year Company contributed an amount of ' 6 Lakhs to the YVSS MurthyCharitable Trust.

20. Directors

As on the date ofthis report the following are the Board of Directors ofthe Company

Name of the Director Designation
1 Sri Y.S.R. Venkata Rao Managing Director
2 Dr. J.S. Yadav Chairman
3 Sri. G. Jayaraman Director
4 Sri K.V. Suryaprakash Rao Director
5 Smt. Y. Lalithya Poorna Director
6 Mr. Y.V. Prashanth Director

During the year under review the following changes took place in the Board:

I) Re-Appointment:

Dr. J.S. Yadav and Sri. G. Jayarman were re-appointed as Independent Director foranother term of 5 years w.e.f 21st August 2019 pursuant to the special resolution passedat the 51st Annual General Meeting.

ii) Change in Designation :

The appointment of Sri K.V. Suryaprakash Rao was regularized at the 51st Annual GeneralMeeting.

Further Smt Y. Lalithya Poorna Director retires by rotation and is eligible forreappointment at the ensuing annual general meeting.

Details of no. of Board meetings and profile of directors are covered under theCorporate Governance section.

Declaration by an Independent Director

Company had received the declaration 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 policy onevaluation 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.

21. Key Managerial Persons

As on the date of this report the following are the Key Managerial Personnel oftheCompany:

Name of the Director Designation
1 Ms. K. Uma Kumari Chief Financial Officer
2 Mr. Siddharth Dubey Company Secretary and Compliance Officer

Ms. M. Neeharika Company Secretary and Compliance Officer had resigned w.e.f. 18thApril 2019 and Mr. Siddharth Dubey was appointed as a Company Secretary and ComplianceOfficer w.e.f 3rd August 2019.

22. Director's 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) the directors have selected such accounting policies and applied them consistentlyand made judgments and estimates that are reasonable and prudent so as to give a true andfair view of the state of affairs of the company at the end of the financial year and ofthe profit or loss ofthe company for that period;

c) the directors have taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of this Act for safeguarding theassets ofthe company and for preventing and detecting fraud and other irregularities;

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

e) the directors have laid down internal financial controls to be followed by thecompany and that such internal financial controls are adequate and were operatingeffectively.

f) the directors have devised proper systems to ensure compliance with the provisionsof all applicable laws and that such systems were adequate and operating effectively.

23. Committees

Your company has Audit Committee Nomination and Remuneration Committee andStakeholders

Relationship Committee and during the year there is no change in the composition of thecommittees and the details are provided in the Corporate Governance section.

24. 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 the Company'scommitment to principles of integrity transparency and fairness. The copy of the Code ofVigil Mechanism is available on the Company website www.alkalimetals.com under Investorstab.

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.

The Director Mr. Y.V.Prashanth is designated as ombudsperson to deal with all thecomplaints registered under the policy.

25. Policy on Sexual Harassment

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. As per the public notice issued by Women Development and ChildWelfare Department Government of Telangana a web portal popularly known as“t-shebox" was launched in the month of July 2019 and the Company had providedthe details as required on the portal. During the year there was no complaints/incident ofharassment.

26. 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 and also there are no outstanding amounts of loans given guarantees providedand/or investments made at the beginning of the year.

27. 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 transactions; details of all such transactionsas required under section 188 of Companies Act are annexed in Form AOC-2 forming part ofthe Board's Report as Annexure-4.

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.

28. 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 theBoard's Report as Annexure -5.

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 to be provided to the shareholders who made specific request to thecompany.

29. Secretarial Audit Report

Secretarial Audit Report including Secretarial Compliance Report as per SEBI (LODR)Regulations for the Financial Year 2019-20 obtained from CS B. Venkatesh Babu CompanySecretary in Practice is annexed and forming part of the Board's Report as Annexure -6.

30. 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 Auditor's of the Companyand also the Management Discussion and Analysis report is annexed and forms integral partof the Board's Report.

31. Insurance

All the properties and insurable interests of the Company including Building Plant andMachinery and Stocks have been adequately insured. The Company also has group accidentalpolicy to all the workmen and staff. Furthermore a group medical policy is provided to thestaff who are not covered under ESI policy.

32. 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.

33. Cost Audit

Pursuant to provisions of section 148 of the Companies Act 2013 read with Companies(Cost Records and Audit) Rules 2014 cost audit is not applicable for the financial year2019-20 for the Company.

34. 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.

35. Acknowledgements

Your Directors express their gratitude to all stakeholders bankers RegulatoryAuthorities Government customers suppliers business associates from India and abroadstaff and workers for their continued support at all times and look forward to have thesame in our future endeavours. Directors are pleased to record their appreciation of thesincere and dedicated services of the employees and workmen at all levels.

Your Directors look forward to the long term future with confidence

By order of the Board
For Alkali Metals Limited
Y.S.R. VENKATA RAO DR. J.S. YADAV
Place : Hyderabad MANAGING DIRECTOR DIRECTOR
Date : 12th June2020 DIN: 00345524 DIN:02014136

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