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To,

The Members,

Alkali Metals Limited

Your Directors have pleasure in presenting the 55^th Annual Report on the business and operations of the Company and the accounts for the Financial Year ended 31 March, 2023.

1. Results of our operations

The results of our Operations for the Financial Year ended 31 March, 2023 is summarized as below:

(All figures in ' Lakhs)

During the year 2022-23, the Company recorded a turnover of ' 8,823.27 Lakhs and Net Profit of ' 282.09 Lakhs compared to the turnover of ' 9,101.59 Lakhs and Net Profit of ' 352.78 Lakhs (after comprehensive items) of previous year 2021-22.

Company is able to operate almost same level of operations as compared to previous year and earned the net profit of ' 282.09 Lakhs which is lower as compared to previous year.

2. Dividend

The Board of Directors recommends dividend of 20% amounting ' 2 per equity share of ' 10 each paid-up for the approval of the shareholders at the ensuing Annual General Meeting for the Financial Year 2022-23 and the said dividend will be paid to shareholders who hold shares as on record date within 30 days of declaration by the shareholders.

3. Reserves

During the year under review, Company had not transferred any amount to General Reserves.

4. Future outlook

As per forecast the Chemical Industry is expected to grow 9% p.a. However, the geopolitical scenarios and global economic conditions could have an impact.

The Company is continuously working to identify new products, processes and commercializing the new products based on the Industry and client requirements. To understand the International Market, your Company has participated in International Pharma Exhibitions. Accordingly in-house R&D team is trying to develop new products. Your Directors are hopeful of doing good business in the coming years.

5. Research & Development

The Company has spent '111.42 Lakhs towards Research and Development during the Financial Year under review. The R&D team is putting its efforts to develop the new products and processes to ensure optimum material consumption and 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 the Company 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 or tribunals 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 Company for ensuring the orderly and efficient conduct of its business, including safeguarding of all its assets and prevention/detection of frauds and errors, accuracy and completeness of accounting records.

Auditors have verified the internal financial controls and tested the adequacy and the procedures adopted by the Company and confirm that the controls are adequate to the size of the transactions. The audit committee reviews and monitors the controls and processes on a regular basis.

10. Risk Management

The Management of the Company will take adequate steps in identifying, assessing, controlling and mitigating 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 the Financial Year under review.

12. Deposits

Your Company has not accepted any deposits covered under Chapter V of the Companies Act, 2013 during the year under review and also no outstanding deposits at the beginning ofthe Financial Year.

13. Auditors

Statutory Auditors

The members at the 51st Annual General Meeting of the Company held on 3 August, 2019 had appointed M/s. G. Nagendrasundaram & Co., Chartered Accountants as Statutory Auditors for a term of 5 years from the conclusion of the 51st Annual General Meeting on such remuneration as may be determined by the Board of Directors.

Pursuant to Section 139 of the Companies Act, 2013 the statutory auditors G. Nagendrasundaram & Co., Chartered Accountants have confirmed that they are eligible to continue as auditors. Their report for the Financial Year 2022-23 does not contain any adverse remark/comment. However the Auditors have made a factual disclosure in their CARO report forming part of the Audit Report. Their disclosure and Company's reply is stated as under:

- Customs Duty Outstanding for more than six months- For an export obligation the Company had to pay Customs Duty to the extent of' 44.93 Lakhs.

The Company paid ' 34.30 Lakhs and is in the process of paying the balance.

- Cyber Fraud against the Company- while proceeding with the payment for CPHI Europe during July 2022'19 Lakhs were lost due to business email compromise at the CPHI agency.

As a precautionary measure supplier call back process to authenticate bank details has been included in the payment process. The Company had reported the matter at Local Cyber Crime Police Station and the same was also reported on the National Cyber Crime Reporting Portal.

Internal Auditors

The Board of Directors of the Company had appointed M/s. Ramakrishna & Associates, Chartered Accountants as Internal Auditors to conduct the Internal Audit of the company for the Financial Year ended 31 March, 2023.

M/s. Ramakrishna & Associates, Chartered Accountants have been re-appointed as Internal Auditors for FY 2023-24.

Secretarial Auditors

The Board of Directors of the Company had appointed CS B. Venkatesh Babu, Practicing Company Secretary as Secretarial Auditor to conduct Secretarial Audit and Secretarial Compliance Report of the Company for the Financial Year ended 31 March, 2023 and his report does not contain any qualification, reservation or adverse remark.

CS B. Venkatesh Babu, Practicing Company Secretary has been re-appointed as Secretarial Auditor for FY 2023-24.

14. Share Capital

Your Company had not issued and raised any share capital including sweat equity, employee stock options during the Financial Year under review. Your Company has also not provided any money for purchase of its own shares by employees or for the benefit of employees.

15. Extract of the Annual Return

Pursuant to the provisions of Section 92(3) read with Section 134(3) (a) of the Companies Act, 2013, a copy of the Annual Return of the Company is available at the Company's website. this can be accessed using the link https://www.alkalimetals.com/annualreturn

16. Conservation of energy, technology absorption and foreign exchange earnings and outgo

The details of conservation of energy, technology absorption, foreign exchange earnings and outgo have been provided in Annexure - 1 and shall form part ofthis report.

17. Corporate Social Responsibility (CSR)

In terms of Section 135 of the Companies Act, 2013, the Company has constituted Corporate Social Responsibility Committee to monitor the CSR activities of the Company in terms of the provisions of the Companies Act, 2013. The Committee's constitution, terms of reference and role are in compliance with the provisions of the Companies Act, 2013.

The committee comprises of following members:

i. Sri. K.V. Suryaprakash Rao- Chairman

ii. Sri. Y.S.R. Venkata Rao- Member

iii. Sri. G. Jayaraman- Member

Corporate Social Responsibility policy was adopted by the Board of Directors on the recommendation of Corporate Social Responsibility Committee. Report on Corporate Social Responsibility as Per Rule 8 of Companies (Corporate Social Responsibility Policy) Rules, 2014 is prepared and the same is enclosed as ANNEXURE - 5 to this Report.

18. Directors

i. Appointment:

During the year under review, the Board had appointed Mr. Y.V. Prashanth as an Additional Director and Executive Director on 10 November 2022 as a part of succession plan for Managing Director. His appointment was approved by the members at the EGM conducted on 15 December 2022.

ii. Retire by Rotation:

Dr. A.R. Prasad, Director, retires by rotation and is eligible for reappointment at the ensuing Annual General Meeting.

Details of number of Board meetings and profile of directors are covered under the Corporate Governance section.

iii. Declaration by an Independent Director:

Company had received the declarations by all the Independent Directors that they meet the criteria of independence as per the provisions of Section 149 of the Companies Act, 2013 and they are registered with Indian Institute of Corporate Affairs (IICA) as per the amended provisions ofthe Companies Act, 2013.

iv. Formal Annual Evaluation:

Pursuant to the provisions of the Companies Act, 2013, the Board has devised a policy on evaluation of performance of Board of Directors, Committees and Individual Directors. Accordingly, the Chairman of the Nomination and Remuneration Committee obtained from all the Board members duly filled in evaluation templates for evaluation of the Board as a whole, evaluation of the committees and peer evaluation. The summary of the evaluation reports were presented to the respective Committees and the Board for their consideration.

19. Key Managerial Persons

There was no change in the Key Managerial Personnel(s) during the year under review.

20. Director's Responsibility Statement

As per the provisions of clause (c) of sub-section (3) of Section 134 of the Companies Act, 2013, your Directors shall state that-

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

ii. they have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the Financial Year and of the profit of the company for that period;

iii. they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;

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

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

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

21. Committees of Board

Your Company has Audit Committee, Nomination and Remuneration Committee, Stakeholders Relationship Committee and Corporate Social Responsibility Committee, the details are provided in the Corporate Governance section.

22. Vigil mechanism for Directors and Employees

The Company believes in the standard of conduct which all employees are expected to observe in their business endeavors. The Code (Vigil Mechanism) reflects the Company's commitment to principles of integrity, transparency and fairness. The copy of the Code of Vigil Mechanism is available on the Company website www.alkalimetals.com under Investors tab.

The Company has adopted a Whistle Blower Policy, as part of vigil mechanism to provide appropriate avenues to the Directors and employees to bring to the attention of the management any issue which is perceived to be in violation of or in conflict with the fundamental business principles of the Company. The employees are encouraged to voice their concerns by way of whistle blowing and all the employees have been given access to the Audit Committee.

Mr. Y.V. Prashanth, Executive Director is designated as ombudsperson to deal with all the complaints registered under the policy.

23. Policy on Sexual Harassment

There has always been an endeavor on the part of the Company to create and provide an environment that is free from discrimination and harassment including sexual harassment. The Company had adopted policy on Prevention of Sexual Harassment of Women at Workplace in accordance with The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. During the year, the Internal Complaints Committee has not received any complaints pertaining to incident of harassment.

24. Particulars of loans, guarantees or investments

The Company had not given any loans, guarantees or made investments as per the provisions of Section 186 of the Companies Act, 2013 during the Financial Year under review. Also there are no outstanding amounts of loans given, guarantees provided and/or investments 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 Party Transactions which are all on arms length basis; details of all such transactions as required under section 188 of Companies Act are annexed in Form AOC-2 forming part of the Board's Report as ANNEXURE-2.

The Company has formulated a policy on materiality of Related Party Transactions and dealing with Related Party Transactions which can be accessed at the Company website www.alkalimetals.com under Investors tab.

26. Managerial Remuneration / Employee Details

The Details required to be provided pursuant to Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are annexed and forming part of the Board's Report as ANNEXURE -3.

There are no employees in the Company in receipt of amounts covered in rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.The details pertaining to top 10 employees falling in this category will be provided to the shareholders who make specific request to the Company.

27. Secretarial Audit Report

Secretarial Audit Report including Secretarial Compliance Report as per SEBI (LODR) Regulations for the Financial Year 2022-23 obtained from CS B. Venkatesh Babu, Company Secretary in Practice is annexed and forming part of the Board's Report as ANNEXURE -4.

28. Corporate Governance and Management Discussion and Analysis

In terms of Regulation 34 of the SEBI (LODR) Regulations, 2015, a Report on Corporate Governance along with Compliance Certificate issued by Statutory Auditor's of the Company and also the Management Discussion and Analysis report is annexed and forms integral part of the Board's Report.

29. Insurance

All the properties and insurable interests of the Company including Building, Plant and Machinery and Stocks have been adequately insured. The Company has-Directors & Officers Indemnity Policy- for Directors and Key Managerial Personnel, Group Accidental policy- for staff and workmen and Group Medical Policy - for those who are not covered under ESI.

30. Listing on Stock Exchanges

The securities of the Company are continued to be listed on BSE and NSE. The listing fees for these stock exchanges are paid till the current Financial Year.

31. Cost Records

The provisions of Section 148 of the Companies Act 2013 for maintaining the Cost Records are not applicable to the Company.

32. Compliance of Secretarial Standards

The Company has duly complied with the applicable Secretarial Standards issued by The Institute of Company Secretaries of India, for the Board and General Meetings.

33. Acknowledgements

Your Directors express their gratitude to all Members, Staff and Workers, Bankers, Regulatory Authorities, Government, Customers, Suppliers, Business Associates from India and abroad for their continued support at all times and look forward to have the same in our future endeavours. Directors are pleased to record their appreciation of the 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