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Alkali Metals Ltd.

BSE: 533029 Sector: Industrials
NSE: ALKALI ISIN Code: INE773I01017
BSE 00:00 | 24 Sep 69.90 0.75
(1.08%)
OPEN

68.95

HIGH

71.00

LOW

68.20

NSE 00:00 | 24 Sep 69.85 0.85
(1.23%)
OPEN

70.45

HIGH

71.25

LOW

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OPEN 68.95
PREVIOUS CLOSE 69.15
VOLUME 11426
52-Week high 98.50
52-Week low 42.90
P/E
Mkt Cap.(Rs cr) 71
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 68.95
CLOSE 69.15
VOLUME 11426
52-Week high 98.50
52-Week low 42.90
P/E
Mkt Cap.(Rs cr) 71
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Alkali Metals Ltd. (ALKALI) - Director Report

Company director report

To

The Members

Alkali Metals Limited

rd

Your Directors have pleasure in presenting the 53 Annual Report on the business andoperations of the Company and the accounts for the Financial Year ended March 31 2021.

1. Financial Summary or Highlights/ Performance of the Company

The performance of the company for the Financial Year ended March 31 2021 issummarized as below:

Particulars Financial Year 2020-21 Financial Year 2019-20
Turnover 553769533 708458245
Other Income 1904256 5700130
Total Revenue 555673789 714158375
Profit/(Loss) before finance charges depreciation and taxation 62554116 72429167
Less : Finance Charges 25416569 24653335
Depreciation and Amortization expense 33487441 34458468
Profit/(Loss) before exceptional items and tax 3650106 13317365
Less: Exceptional items 1447370 2153943
Profit/(Loss) before tax 2202736 11163422
Less : Current Year's tax (MAT) 468224 1434754
MAT Credit Entitlement (468224) (1434754)
Previous Years/Deferred Tax 14272924 (1385430)
Profit/(Loss) After tax (12070188) 12548851
Other Comprehensive Income (net) 2916875 (3025291)
Total Comprehensive income for the period (9153313) 9523560

During the year 2020-21 the Company recorded a turnover of Rs.553769533 and netloss of

Rs.9153313 compared to the turnover of Rs.708458245 and net profit of Rs.9523560previous year 2019-20. Covid-19 pandemic which started globally during the end of 2019 hasaffected people globally causing health crisis impacting businesses and economy at large.The effect of this pandemic is still continuing.

The reduction in turnover is mainly attributed to operational disruptions caused due toCovid19 pandemic. Despite the hardships the Management put its best efforts and with thesupport of the all the employees achieved this turnover. Your Directors are also happy toshare that the Management stood with the employees in difficult times and provided thenecessary support by paying full salaries even during the lockdown. Furthermore necessaryhealth safety measures were introduced at workplaces in order to ensure the well being ofthe employees.

2. Dividend

The Board of Directors hereby recommend dividend of 8% amounting to Rs.0.80 per equityshare of

Rs.10 each paid-up out of accumulated profits of the previous years for the approvalof the shareholders at the ensuing Annual General Meeting ("AGM") for theFinancial Year 2020-21. T he said dividend will be paid to shareholders who hold shares ason record date within 30 days of declaration by the shareholders.

3. Reserves

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

4. Future outlook

Currently India is experiencing the deadly wave of Covid 19 infections. There wereoperational disruptions once again as statewide lockdowns were imposed. The Company'soperations have been affected ever since the second wave began.

However with the vaccination drive gaining momentum the management hopes that thesituation might improve in the second quarter of Financial Year 2021-22. Your managementis also looking for other opportunities such as job works of specific products and tie-upswith other manufacturers to scale-up the products. Overall management will strive forbetter results.

5. Research & Development

The company has spent Rs.89 Lakhs towards Research and Development("R&D") during the Financial Year and is putting continuous efforts in R& D to develop the new products and improve the process for 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

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.

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 Financial Controls and such procedures adopted bythe Company for ensuring the orderly and efficient conduct of its business includingsafeguarding of all its assets and prevention/detection of frauds and errors accuracy andcompleteness of accounting records.

10. Risk Management

The Management takes adequate steps in identifying assessing controlling andmitigating 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 theFinancial Year under review.

12. 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.

13. Auditors

Statutory Auditors

At the 51 AGM of the Company held on August 3 2019 M/s. G. Nagendrasundaram &Co. Chartered Accountants were appointed as Statutory Auditors for a term of 5 years fromthe conclusion of the 51 AGM on such remuneration as may be determined by the Board ofDirectors. The members may note that the Ministry of Corporate Affairs vide notificationdated May 7 2018 has done away with the requirement of yearly ratification ofappointment of Statutory Auditors at the AGM.

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 2020-21 does not contain anyqualification reservation or adverse remark.

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 March 31 2021 and his report for the Financial Year 2020-21does 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 provideSecretarial Compliance Report for the Financial Year ended March 31 2021. His report doesnot contain any qualification reservation or adverse remark.

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 theCompany's 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. However the Promoters on theirpart realize their responsibility towards the society by providing free medical help tothe poor people and financial assistance to the poor students through Dr. Y.V.S. MurtyCharitable Trust run by them. During the

year the Company donated an amount of Rs.717 143 to Dr. Y.V.S. Murty CharitableTrust .

18. Directors

As on the date of this report the following are the Board of Directors of the Company

S.No Name of the Director Designation
I. Sri Y.S.R. Venkata Rao Managing Director
ii. Dr. J.S. Yadav Chairman
iii. Sri. G. Jayaraman Director
iv. Sri K.V. Suryaprakash Rao Director
v. Smt. Y. Lalithya Poorna Director
vi. Dr. A.R. Prasad Additional Director

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

i. Re-Appointment:

Sri Y.S.R. Venkata Rao was re-appointed as a Managing Director for a further period of3 years w.e.f May 1 2021 pursuant to the special resolution passed at the 52 AnnualGeneral Meeting held on September 26 2020.

ii. Resignation :

Mr. Y.V. Prashanth resigned from the Board w.e.f June 13 2020.

iii. Appointment :

Dr. A.R. Prasad was appointed as an Additional Director (Non Independent Non Executive)on February 10 2021 and holds office up to the ensuing AGM. The agenda for hisappointment as Director is included in the notice of the AGM.

Since the Company falls under the top 2000 Listed Companies on Stock Exchanges theminimum number of Directors on the Board should be 6. However due to resignation of oneDirector the Company was in non-compliance. After many efforts it was able to appoint Dr.A.R. Prasad to comply with SEBI LODR.

Further Smt Y. Lalithya Poorna Director retires by rotation and being eligible offersherself for reappointment 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 theycontinue to meet the criteria of independence as per the provisions of Section 149 (6) ofthe Companies Act 2013 and they are registered with Indian Institute of Corporate Affairs(IICA) as per the amended 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.

19. Key Managerial Personnel

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

S. No Name of the Personnel Designation
I. Sri Y.S.R. Venkata Rao Managing Director
ii. Ms. K. Uma Kumari Chief Financial Officer
iii. Mr. Siddharth Dubey Company Secretary and Compliance Officer

20. Director's Responsibility Statement

As per the provisions of clause (c) of sub-section (3) of Section 134 of the CompaniesAct 2013 your Directors confirm that

i. in the preparation of the annual accounts the applicable accounting standards havebeen followed along with proper explanation relating to material departures;

ii. 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 loss ofthe company for that period;

iii. 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;

iv. the annual accounts are prepared on a going concern basis; and

v. they have laid down internal financial controls to be followed by the company andthat such internal financial controls are adequate and were operating effectively.

vi. proper systems to ensure compliance with the provisions of all applicable laws arein place and that such systems were adequate and operating effectively.

21. Committees

Your company has Audit Committee Nomination and Remuneration Committee andStakeholders

Relationship Committee and the details are provided in the Corporate Governancesection. As Mr Y.V. Prashanth resigned as a Director he was no longer a part of anycommittee.

22. Vigil Mechanism

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 Company has adopted a Whistle Blower Policy as part of vigil mechanism to provideappropriate avenues to the Directors and employees with protective clauses for the whistleblowers. The copy of the Code of Vigil Mechanism is available on the Company websitewww.alkalimetals.com under Investors tab.

23. Policy on Sexual Harassment

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

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 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-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 theBoard's 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 on specific request basis.

27. Secretarial Audit Report

Secretarial Audit Report including Secretarial Compliance Report as per SEBI (LODR)Regulations for the Financial Year 2020-21 obtained from CS B. Venkatesh Babu CompanySecretary in Practice is annexed and forming part of the Board's 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 Auditor of the Companyand also the Management Discussion and Analysis report is annexed and forms integral partof the Board's Report.

29. 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.

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 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 Year2020-21 for the Company.

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.

33. Acknowledgements

Your Directors express their gratitude to all stakeholders viz; Staff and WorkersBankers Regulatory Authorities Government Customers Suppliers and Business Associatesfrom India and abroad for their continued support at all times and look forward to havethe same in our future endeavours. Directors are pleased to record their appreciation forthe sincere and dedicated services of the employees and workmen at all levels.

Your Directors look forward to the long term future with confidence.

For and on behalf of Board of Directors
For Alkali Metals Limited
Y.S.R. Venkata Rao Dr. J.S. Yadav
Managing Director Director
DIN: 00345524 DIN: 02014136

Place : Hyderabad

Date : June 10 2021

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