Notes to Accounts of Alkali Metals Ltd.

Mar 31, 2025

3.10. Provision for Current Tax and Deferred Tax

a. Current Tax

The tax currently payable is based on taxable profit for the year. Taxable profits differ from the profit as
reported in the statement of profit and loss because of items of income or expense that are taxable or
deductible in other years and items that are never taxable or deductible. The Company’s current tax is
calculated using tax rates that have been enacted or substantially enacted by the end of the reporting
period. In the event of Tax computed as stated is less than the tax computed under section 115JB of the
Income tax Act., 1961, provision for current tax will be made in accordance with such provisions.

b. Deferred Tax

Deferred Tax is recognised on temporary differences between the carrying amounts of assets and
liabilities in the financial statements and the corresponding tax bases used in the computation of
taxable profit. Deferred Tax liabilities are generally recognised for all taxable temporary differences.
Deferred Tax assets are generally recognised for all deductible temporary differences to the extent that
it is probable that taxable profits will be available against which those deductible temporary
differences can be utilised.

The carrying amount of Deferred Tax asset is reviewed at the end of each reporting period and reduced
to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or
part of the asset to be recovered.

Deferred Tax liabilities and assets are measured at the tax rates that are expected to apply in the period
in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been
enacted or substantively enacted by the end of the reporting period.

The measurement of Deferred Tax liabilities and assets reflects the tax consequences that would
follow from the manner in which the Company expects, at the end of the reporting period to recoveror
settle the carrying amount of its assets and liabilities.

c. Current Tax and Deferred Tax for the year

Current and deferred tax are recognised in profit and loss, except when they relate to items that are
recognised in other comprehensive income or directly in equity, in which case, the current and
deferred tax are also recognised in other comprehensive income or directly in equity respectively.

Deferred Tax resulting from “timing difference” between taxable and accounting income is accounted
for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date.
Deferred Tax asset is recognised and carried forward only to the extent there is reasonably certain that
there will be sufficient future income to recover such Deferred Tax Asset.

3.11. Minimum Alternate Tax Credit

Minimum Alternate Tax Credit Entitlement is recognized in the books of account when there is convincing
evidence that the Company will pay normal income tax during the specified period. The Entitlement is
reviewed at each balance sheet date with regard to the correctness of the carrying amount.

3.12. Research and Development

Capital expenditure incurred has been disclosed under separate heads of account and revenue expenditure
incurred is charged off as a distinct item in the Statement of Profit and Loss.

3.13. Financial Instruments (Financial Assets and Financial Liabilities):

All Financial Instruments are recognized initially at fair value. The classification of Financial Instruments
depends on the objective of the business model for which it is held and the contractual cash flows that are
solely payments of principal and interest on the principal outstanding. For the purpose of subsequent
measurement, Financial Instruments of the Company are classified into(a) Non-Derivate Financial
Instruments and (b) Derivative Financial Instruments.

a. Non-Derivative Financial Instruments:

• Security Deposits, Cash and Cash Equivalents, Other Advances, Trade Receivables and Eligible
Current and non-current financial assets are classified as financial assets under this clause.

• Loans and borrowings, trade and other payables including deposits collected from various parties
and eligible current and non-current financial liabilities are classified as financial liabilities under
this clause.

• Financial instruments are subsequently carried at amortized cost.

• Transaction costs that are attributable to the financial instruments recognized at amortized cost
are included in the fair value of such instruments.

b. Derivative Financial Instruments:

• The policy in respect of Derivatives will be formulated as and when required.

3.14. Claims

Claims by and against the Company, including liquidated damages, are recognised on acceptance basis.

3.15. Leases:

The Company’s lease asset classes primarily consist of leases for land and building. The Company assesses
whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the
contract conveys the right to control the use of an identified asset for a period of time in exchange for
consideration. To assess whether a contract conveys the right to control the use of an identified asset, the
Company assesses whether: (i) the contract involves the use of an identified asset (ii) the Company avails
itself substantially all of the economic benefits from use of the asset through the period of the lease and (iii)
the Company has the right to direct the use of the asset. At the date of commencement of the lease, the
Company recognizes a right-of-use asset (“ROU”) and a corresponding lease liability for all lease
arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term
leases) and low value leases. For these short-term and low value leases, the Company recognizes the lease
payments as an operating expense on a straight-line basis over the term of the lease.

As a lessee, the Company determines the lease term as the non-cancellable period of a lease adjusted with
any option to extend or terminate the lease, if the use of such option is reasonably certain.

Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of
the lease term and useful life of the underlying asset. The lease liability is initially measured at amortized
cost at the present value of the future lease payments. The lease payments are discounted using the interest
rate implicit in the lease.

Lease liability and Right to Use assets have been separately presented in the Balance Sheet and lease
payments have been classified as financing cash flows.

Disclosures:

18.1 Deferred payment liability - Interest Free Sales Tax Loan (IFST)

The Company was sanctioned Interest Free Sales Tax Deferment of ? 345.86 lakhs under Target - 2000 Scheme
by the State Government vide final eligibility Certificate No. LR 4/2001/0878/0878/ID dt. 24^th July 2001, for a
period of 14 years starting from 20^th March 1999 to 19^th March 2013. The Company has availed itself of total
Sales Tax Deferment of ? 269.79 Lakhs up to 31^st March 2013 and the same is shown as liability in the Balance
Sheet. The repayment started from March, 2016 and the Company has made the payments as per the final
eligibility certificate. An amount of ? 26.42 Lakhs is payable in the financial year 2025-26 hence shown under the
Other Financial Liabilities under Current Liabilities Pursuant to requirement under Ind AS 109 on financial
instruments and in view of the option exercised under Ind AS 101 on first time adoption of Ind AS, un-winding of
interest using effective interest rate was made and the deferred grant carved out, from the said loan, is being
amortised in equal installments over the remaining repayment period of the IFST loan.

39. DISCLOSURE AS PER IND AS - 12 INCOME TAX

A. Income tax assessments

The Company’s income tax assessments were completed up to AY 2023- 2024.

B. The tax effects of significant temporary differences that resulted in Deferred Income Tax
Liability are as follows

B. Defined Benefit Plan
i. Gratuity obligation of the Company

The employees’ gratuity fund scheme managed by a Trust is a defined benefit plan. The present value
of obligation is determined based on actuarial valuation using the Projected Unit Credit Method,
which recognised each period of service as giving rise to additional unit of employee benefit
entitlement and measures each unit to build up the final obligation. The obligation for leave
encashment is recognised in the books as per Actuarial Valuation.

The estimates of rate of escalation in salary considered in actuarial valuation, take into account
inflation, seniority, promotion and other relevant factors including supply and demand in the
employment market. The above information is certified by the actuary.

The expected rate of return on plan assets is determined considering several applicable factors, mainly
the composition of plan assets held, assessed risks, historical results of return on plan assets and the
Company’s policy for plan assets management.

41 FINANCIAL INSTRUMENTS

a) Capital management

The Company manages its capital structure and makes adjustments to it, in light of changes in
economic condition. To maintain or adjust the capital structure, the Company may adjust the dividend
payment to shareholders. No changes were made in the objectives, policies and procedures in the past
three years.

The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net
debt. The Company includes within net debt, borrowings, trade and other payables, other liabilities,
less cash and cash equivalents Capital includes issued equity capital, share premium and all other
equity reserves attributable to the equity holders.

b) Financial instruments by category

The carrying and fair value of financial instruments by categories of 31stMarch 2025 and 31stMarch
2024 were as follows

c) Financial Risk Management
Financial Risk Factors:

The Company is exposed to financial risks arising from its operations and the use of financial instruments.
The key financial risks include market risk, and liquidity risk. The management reviews and design
policies and procedures to minimize potential adverse effects on its financial performance. The primary
market risk to the Company is foreign exchange risk. The Company’s exposure to credit risk is influenced
mainly by the customer repayments. The Company’s exposure to liquidity risks are on account of interest
rate risk on borrowings. The following sections provide details regarding the Company’s exposure to the
above-mentioned financial risks and the management thereof.

Market Risk:

The Company operates internationally, and a portion of the business is transacted in foreign currencies and
consequently the Company is exposed to foreign exchange risk through its sales and services in those
countries. The exchange rate between the rupee and foreign currencies has changed substantially in recent
years and may fluctuate substantially in the future. Consequently, the results of the Company’s operations
are affected as the rupee appreciates/depreciates against these currencies. The Company leaves exchange
rate risk with regard to foreign exposures un-hedged when the local currency is appreciating against the
foreign currency.

Credit Risk:

Credit risk is the risk of loss that may arise on outstanding financial instruments when counter party
defaults on its obligations. The Company’s exposure to credit risk arises primarily from loans extended,
security deposits, balances with bankers and trade and other receivables. The Company minimises credit
risk by dealing exclusively with high credit rating counter parties. The Company’s objective is to seek
continual revenue growth while minimising losses incurred due to increased credit risk exposure. The
Company trades only with recognised and creditworthy third parties. It is the Company’s policy that all
customers who wish to trade on credit terms are subject to credit verification procedures. In addition,
receivable balances are monitored on an ongoing basis with the result that the Company’s exposure to bad
debts is not significant. The company recognizes provisions for credit impaired receivables based on delay
in realisation.

Credit Risk Exposure:

At the end of the reporting period, the Company’s maximum exposure to credit risk is represented by the
carrying amount of each class of financial assets recognised in the statement of financial position. No other
financial assets carry a significant exposure to credit risk.

Liquidity Risk:

The Company’s principal sources of liquidity are cash and cash equivalents and the cash flow that is
generated from operations. The Company has short term borrowings from banks. Short term loans

repayable on demand from banks are obtained for the working capital requirements of the Company.

As of 31^st March 2025, the Company had a working capital of ? 92.52 Lakhs including cash and cash
equivalents of ? 4.15 Lakhs. As of 31^st March 2024, the Company had a working capital of ? 717.17 Lakhs
including cash and cash equivalents of ? 3.83 Lakhs.

As of 31^st March 2025, and 31^st March 2024, the outstanding gratuity liability was ? 339.23 Lakhs and ?
307.63 Lakhs, respectively, which have been substantially funded. Accordingly, no liquidity risk is
perceived.

Interest Rate Risk:

The interest rate risk is the risk that the fair value or the future cash flows of the Company’s financial
instruments will fluctuate because of the change in market interest rates. The Company is exposed to
interest rate risks as it has significant interest-bearing working capital loans from bank. Short term loans
repayable on demand are subject to prevailing market rate fluctuations and sanctioned facilities are availed
on a need to borrow basis to ensure minimum exposure to interest rate fluctuations.

42. DIVIDEND:

The final dividend on shares is recorded as a liability on the date of approval by the shareholders and
interim dividends are recorded as a liability on the date of declaration by the Company''s Board of Directors.
Income Tax consequences of dividends on financial instruments classified as equity will be recognized
according to where the entity originally recognized those past transactions or events that generated
distributable profits. The Company declares and pays dividends in Indian rupees. Companies are required
to pay/distribute dividend after deducting applicable withholding income taxes.

44. CONFIRMATION OF BALANCES:

The Company had sent letters seeking confirmation of balances to various parties under trade payables,
trade receivables, advance to suppliers and other advance from customers. Based on the confirmations
received and upon proper review, corrective actions have been initiated, and the amounts have been trued
up, accounting adjustments have been made wherever found necessary.

45. BORROWINGS SECURED AGAINST CURRENT ASSETS:

The Company files Monthly Stock Statements and Quarterly Declarations to Bank regarding the End Use
of Funds and Unhedged Foreign Currency and Investments .

The data provided by Company is in line with the Books of Accounts. The Company has not been declared
as Wilful Defaulter as per the relevant RBI Circular.

46. RELATIONSHIP WITH STRUCK OFF COMPANIES:

The Company has verified Debtors and Creditors Companies status with respect to being Struck Off and
none of them are being shown as Struck Off in the records of MCA.

*Due to Loss incurred during the current year.

** The Company has cleared the dues of creditors more promptly compared to the previous year,

resulting in a reduction in the trade payables ratio.

8. UTILISATION OF BORROWED FUNDS AND SHARE PREMIUM:

i. No funds have been advanced or loaned or invested (either from borrowed funds or share premium or,
any other sources or kind of funds) by the Company to or in any other person or entity, including
foreign entities (“Intermediaries") with the understanding, whether recorded in writing or otherwise,
that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate
Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the
understanding that the Company shall whether, directly or indirectly lend or invest in other persons or
entities identified by or on behalf of the Company ("Ultimate Beneficiaries") or provide any
guarantee, security or the like on behalf of the Ultimate Beneficiaries.

ii. No funds have been received by the Company from any person or entity, including foreign entity
(“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the
Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in
any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any
guarantee, security or the like on behalf of the Ultimate Beneficiaries.

49. The Company has used the borrowings from Banks and Financial institutions for their specific purpose for
which they have been taken.

50. In the opinion of the Board of Directors, all the Assets (Other than Property, Plant, Equipment, Intangible
Assets and Non-Current Investments) are expected to realise a value which is at least equivalent to the
amount at which they are stated in the financial statements, in the ordinary course of the business. The
Board is also of the opinion that no material uncertainty exists regarding the capability of the Company in
meeting its liabilities existing as on the date of Balance Sheet as and when they fall due.

51. As the Company does not have any downstream companies, the compliance with regard to the number of
layers prescribed under Clause (87) of Section 2 of the Companies Act, 2013 read with Companies
(Restrictions on Number of Layers), Rules, 2017 and the disclosure requirements of the names of such
Companies and their CIN, beyond specified layers and the relation and extent of holding, are not
applicable.

52. With regard to Charge Creation or Satisfaction, no documents are pending for filling with Registrar of
Companies beyond the specified Statutory period.

53. The Company does not have any transaction which is not recorded in the books of account that has been
surrendered or disclosed as income during the year in tax assessments under the Income Tax, 1961. The
Company does not also have any previously unrecorded income and related assets that are properly
required to be recorded in the books of account during the year.

54. The Company has not traded or invested in crypto currency or any virtual currency during the financial
year.

55. Previous Year’s figures have been regrouped / reclassified wherever necessary to correspond with the
Current Year''s classification/ disclosure.

As per our Report attached For and on Behalf of Board of Directors

For C K S Associates Alkali Metals Limited

Chartered Accountants

(FRN 007390S)

N V S Srikrishna Y.S.R. Venkata Rao Dr. J.S. Yadav

Partner Managing Director Chairman

M.NO.025139 DIN: 00345524 DIN: 02014136

Place : Hyderabad Gayathri Kesavarapu ^{Siddharth Dubey}

Dated: 19^th May 2025 Chief Financial Officer ^C°mpaⁿy S^retaty

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Mar 31, 2024

Disclosures:

18.1 Deferred payment liability - Interest Free Sales Tax Loan (IFST)

The Company was sanctioned Interest Free Sales Tax Deferment of '' 345.86 lakhs under Target - 2000 Scheme by the State Government vide final eligibility Certificate No.LR 4/2001/0878/0878/ID dt. 24^th July, 2001 for a period of 14 years starting from 20^th March 1999 to 19* March 2013. The Company has availed itself of total Sales Tax Deferment of '' 269.79 Lakhs up to 31^st March 2013 and the same is shown as liability in the Balance Sheet. The repayment started from March, 2016 and the Company has made the payments as per the final eligibility certificate. An amount of '' 27.52 Lakhs is payable in the financial year 2024-25 hence shown under the Other Financial Liabilities under Current Liabilities Pursuant to requirement under Ind AS 109 on financial instruments and in view of the option exercised under Ind AS 101 on first time adoption of Ind AS, un-winding ofinterest using effective interest rate was made and the deferred grant carved out, from the said loan, is being amortised in equal installments over the remaining repayment period of the IFST loan.

39. DISCLOSURE AS PER SCHEDULE III OF THE ACT AND IND AS-37 ON PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:A. CONTINGENT LIABILITIES

	Claim against the Company not acknowledged as debts:		('' in Lakhs)
Particulars		31.03.2024	31.03.2023
Customs Duty - Unfulfilled Export Obligation if any		47.77	30.14
The department of GST Andhra Pradesh has raised demand pertaining to FY 2016-2017 regarding Tran-1 credit & Penalties against which appeal has been filed with the Appellate Authority, which has been rejected. The Company proposes to contest before GST Tribunal, as and when it is constituted.		1.97	1.97
The department of GST Telangana has raised a demand pertaining to FY 2017-18 & 2018-2019 regarding Input Credit& Penalties against which appeal has been filed with the Appellate Authority, which has been rejected. The Company proposes to contest before GST Tribunal, as and when it is constituted.		12.01	15.24
The department of GST Andhra Pradesh has raised a demand pertaining to FY 2017 - 2018, 2018-2019, 2019-2020 regarding ITC & Penalties against which appeal has been filed with the Appellate Authority.		0.93	0.93
The department of GST Telangana has raised a demand pertaining to FY 2016-2017 regarding Tran-1 credit & Penalties against which appeal has been filed.		4.54	4.54
Bank Guarantees Furnished		4.00	4.00
B. COMMITMENTS
	Particulars	31.03.2024	31.03.2023
	Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances)	31.30	84.49

B. DEFINED BENEFIT PLAN i. Gratuity obligation of the Company

The employees’ gratuity fund scheme managed by a Trust is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognised each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit to build up the final obligation. The obligation for leave encashment is recognised in the books as per Actuarial Valuation.

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

The expected rate of return on plan assets is determined considering several applicable factors, mainly the composition of plan assets held, assessed risks, historical results of return on plan assets and the Company’s policy for plan assets management.

41.5. DISCLOSURE AS PER IND AS108 - OPERATING SEGMENTS:

As the Company is predominantly engaged in the manufacture and sale of chemicals where the risks and returns associated with the products are uniform, the Company has identified geographical segments based on location of customers as reportable segments in accordance with Ind AS 108 issued by ICAI.

42. FINANCIAL INSTRUMENTS

A. Capital management

The Company manages its capital structure and makes adjustments to it, in light of changes in economic condition. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders. No changes were made in the objectives, policies and procedures in the past three years.

The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, borrowings, trade and other payables, other liabilities, less cash and cash equivalents Capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders.

B. Financial instruments by category

The carrying and fair value of financial instruments by categories of 31^st March 2024 and 31^st March 2023 were as follows

C. Financial Risk Management

Financial Risk Factors :

The Company is exposed to financial risks arising from its operations and the use of financial instruments. The key financial risks include market risk, and liquidity risk. The management reviews and design policies and procedures to minimize potential adverse effects on its financial performance. The primary market risk to the Company is foreign exchange risk. The Company’s exposure to credit risk is influenced mainly by the customer repayments. The Company’s exposure to liquidity risks are on account of interest rate risk on borrowings. The following sections provide details regarding the Company’s exposure to the above-mentioned financial risks and the management thereof.

Market Risk:

The Company operates internationally, and a portion of the business is transacted in foreign currencies and consequently the Company is exposed to foreign exchange risk through its sales and services in those countries. The exchange rate between the rupee and foreign currencies has changed substantially in recent years and may fluctuate substantially in the future. Consequently, the results of the Company’s operations are affected as the rupee appreciates/depreciates against these currencies. The Company leaves exchange rate risk with regard to foreign exposures unhedged when the local currency is appreciating against the foreign currency.

Credit Risk:

Credit risk is the risk of loss that may arise on outstanding financial instruments when counter party defaults on its obligations. The Company’s exposure to credit risk arises primarily from loans extended, security deposits, balances with bankers and trade and other receivables. The Company minimises credit risk by dealing exclusively with high credit rating counterparties. The Company’s objective is to seek continual revenue growth while minimising losses incurred due to increased credit risk exposure. The Company trades only with recognised and creditworthy third parties. It is the Company’s policy that all customers who wish to trade on credit terms are subject to credit verification procedures. In addition, receivable balances are monitored on an ongoing basis with the result that the Company’s exposure to bad debts is not significant.

Credit Risk Exposure:

At the end of the reporting period, the Company’s maximum exposure to credit risk is represented by the carrying amount of each class of financial assets recognised in the statement of financial position. No other financial assets carry a significant exposure to credit risk.

Liquidity Risk:

The Company’s principal sources of liquidity are cash and cash equivalents and the cash flow that is generated from operations. The Company has short term borrowings from banks. Short term loans repayable on demand from banks are obtained for the working capital requirements of the Company.

As of 31^st March, 2024, the Company had a working capital of '' 717.17 Lakhs including cash and cash equivalents of '' 3.83 Lakhs. As of 31^st March, 2023, the Company had a working capital of '' 606.02 Lakhs including cash and cash equivalents of'' 109.80 Lakhs.

As of 31^st March, 2024, and 31^st March, 2023, the outstanding gratuity liability was '' 307.63 Lakhs and '' 236.93 Lakhs, respectively, which have been substantially funded. Accordingly, no liquidity risk is perceived.

Interest Rate Risk:

The interest rate risk is the risk that the fair value or the future cash flows of the Company’s financial instruments will fluctuate because of the change in market interest rates. The Company is exposed to interest rate risks as it has significant interest-bearing working capital loans from bank. Short term loans repayable on demand are subject to prevailing market rate fluctuations and sanctioned facilities are availed on a need to borrow basis to ensure minimum exposure to interest rate fluctuations.

43. DIVIDEND:

The final dividend on shares is recorded as a liability on the date of approval by the shareholders and interim dividends are recorded as a liability on the date of declaration by the Company''s Board of Directors. Income Tax consequences of dividends on financial instruments classified as equity will be recognized according to where the entity originally recognized those past transactions or events that generated distributable profits. The Company declares and pays dividends in Indian rupees. Companies are required to pay/distribute dividend after deducting applicable withholding income taxes.

45. CONFIRMATION OF BALANCES:

The Company had sent letters seeking confirmation of balances to various parties under trade payables, trade receivables, advance to suppliers and other advance from customers. Based on the confirmations received and upon proper review, corrective actions have been initiated and the amounts have been trued up, accounting adjustments have been made wherever found necessary.

46. BORROWINGS SECURED AGAINST CURRENT ASSETS:

The Company files Monthly Stock Statements and Quarterly Declarations to Bank regarding the End Use ofFunds and Unhedged Foreign Currency and Investments.

The data provided by Company is in line with the Books of Accounts. The Company has not been declared as Wilful Defaulter as per the relevant RBI Circular.

47. RELATIONSHIP WITH STRUCK OFF COMPANIES:

The Company has verified Debtors and Creditors Companies status with respect to being Struck Off and none of them are being shown as Struck Off in the records of MCA.

49. UTILISATION OF BORROWED FUNDS AND SHARE PREMIUM:

i. No funds have been advanced or loaned or invested (either from borrowed funds or share premium or, any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entities (“Intermediaries") with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

ii. No funds have been received by the Company from any person or entity, including foreign entity (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

50. The Company has used the borrowings from Banks and Financial institutions for their specific purpose for which they have been taken.

51. In the opinion of the Board of Directors, all the Assets (Other than Property, Plant, Equipment, Intangible Assets and Non-Current Investments) are expected to realise a value which is at least equivalent to the amount at which they are stated in the financial statements, in the ordinary course of the business. The Board is also of the opinion that no material uncertainty exists regarding the capability of the Company in meeting its liabilities existing as on the date of Balance Sheet as and when they fall due.

52. As the Company does not have any downstream companies, the compliance with regard to the number of layers prescribed under Clause (87) of Section 2 of the Companies Act, 2013 read with Companies (Restrictions on Number of Layers), Rules, 2017 and the disclosure requirements of the names of such Companies and their CIN, beyond specified layers and the relation and extent of holding, are not applicable.

53. With regard to Charge Creation or Satisfaction, no documents are pending for filling with Registrar of Companies beyond the specified Statutory period.

54. The Company does not have any transaction which is not recorded in the books of account that has been surrendered or disclosed as income during the year in tax assessments under the Income Tax, 1961. The Company does not also have any previously unrecorded income and related assets that are properly required to be recorded in the books of account during the year.

55. The Company has not traded or invested in crypto currency or any virtual currency during the financial year.

56. • During the financial year, the Company had transferred an Unclaimed Dividend amount of

'' 0.64 lakhs (Final Dividend for FY 2015-16) and 3,951 shares of 48 shareholders to IEPF authorities. As per the procedure, the Company has transferred the Unclaimed Dividend to IEPF Authorities through NEFT and tried to link the NEFT challan but due to technical issue in the MCA portal, the challan is not getting linked thereby the e-Form IEPF-1 (Statement of amounts credited to IEPF or transfer of amounts on account of shares transferred to the fund) is not approved and the relevant excel file containing the breakup of Unclaimed Dividend is also not getting uploaded. As a result of this, the Company is also not able to file e-Form IEPF-4 (Statement of shares transferred and information of shares & unclaimed or unpaid dividend not transferred to the IEPF) and the relevant excel containing break up of Unclaimed Shares despite completing the transfer of shares to IEPF.

• The Unclaimed Dividend amount of ''1.24 lakhs pertaining to Interim Dividend of FY 2015-16 which was originally transferred in February 2023 was also reversed and the said amount was parked in Suspense Account of the Bank. The Company was made aware of this fact only in the Month of February 2024 by the Bankers. The Company immediately requested the Bankers to transfer the funds from Suspense Account to IEPF Authorities Account and the same was transferred on 29^th February, 2024. However, due to technical issue in the MCA portal, the Company is facing similar issue as stated above.

• The Company is in continuous contact with the authorities and Bankers to resolve the issue at the earliest.

57. Previous Year’s figures have been regrouped / reclassified wherever necessary to correspond with the

Current Year''s classification/ disclosure.

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Mar 31, 2018

Notes to Account

38. Disclosure as per Schedule III of the Act and Ind AS-37 on Provisions, Contingent Liabilities and Contingent assets

i. CONTINGENT LIABILITIES

Claim against the Company not acknowledged as debts: (All figures in INR)

	March 31 ,2018	March 31, 2017
Sewerage cess claimed by HMWS & SB	3,423,498	3,014,786

ii. COMMITMENTS

(All figures in INR)

	March 31 ,2018	March 31, 2017
Estimated amount of contracts remaining to be executed on capital account and not provided for	2,921,711	2,921,711

39. Disclosure as per Ind AS - 12 Income tax

A. Income tax assessments:

The Company''s income tax assessments were completed upto A.Y. 2015-16

B. The tax effects of significant temporary differences that resulted in deferred income tax asset and liability are as follows: (All figures in INR)

Particulars	March 31 ,2018	March 31, 2017	April 1, 2016
Difference in WDV of PPE and Intangible assets	(213,126,542)	(220,853,441)	(229,733,871)
Carried forward losses	265,471,851	284,144,490	284,436,338
Post Employment Benefits	5,341,807	3,139,145	1,895,411
Other disallowances	-	-	-
Net timing differences	57,687,117	66,430,194	56,597,877
Deferred Taxes Asset there on at applicable rates	15,894,243	21,963,815	18,712,956

40. Disclosure as per Ind AS-19 - Employee benefits A. Defined Contribution Plan

Contribution to Defined Contribution Plan recognised as expenses for the financial year as under: (All figures in INR)

	2017-18	2016-17
Employer''s Contribution to Provident Fund	2,705,357	2,854,583
Employer''s Contribution to ESI	434,524	415,695

B. Defined Benefit Plan

I. Gratuity obligation of the Company

The employees'' gratuity fund scheme managed by a Trust is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognised each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit to build up the final obligation. The obligation for leave encashment is recognised in the books as per Actuarial Valuation.

Assets and Liability (Balance sheet position)

(All figures in INR)

Particulars	March 31, 2018	March 31, 2017
Present value of obligation	11,222,225	10,791,850
Fair value of plan assets	(141,455)	(119,802)
Surplus / (deficit)	956,170	550,177
Contributions paid	1,686,443	-
Net asset / (liability)	13,723,383	11,222,225

Expense recognised during the period

(All figures in INR)

Particulars	March 31, 2018
In Income statement (P&L A/c - expense provision)	1,892,157
In other comprehensive income (Balance sheet item)	(390,941)

Changes in the present value of obligation

(All figures in INR)

Particulars	For the period ending
	March 31 ,2018	March 31 ,2017
Present value of obligations as at the beginning	12,929,309	11,841,256
Interest cost	880,486	871,442
Current Service Cost	823,695	794,179
Past service cost - (Vested benefits)	1,000,000	-
Benefits Paid	-	(319,460)
Actuarial (Gain) / Loss on obligation	(246,795)	(258,108)
Present value of obligations as at the end	15,386,695	12,929,309
Bifurcation of net liability
Current liability (Short Term)	3,759,934	2,178,915
Non-current liability (Long Term)	11,626,761	10,750,394
Net liability	1,663,312	1,707,084

Changes in the fair value of plan assets

(All figures in INR)

Particulars	For the period ending
	March 31 ,2018	March 31, 2017
Fair value of plan assets as at the beginning	11,222,225	10,791,850
Adjustment to opening Fair value of plan asset	(141,455)	(119,802)
Return on plan assets excluding Interest Income	144,146	85,418
Contributions by employer	1,686,443	-
Interest Income	812,024	784,219
Benefits Paid	-	(319,460)
Fair value of plan assets as at the end	13,723,383	11,222,225

Expense recognised in the Income Statement

(All figures in INR)

Particulars	March 31, 2018
Current Service Cost	823,695
Past Service Cost	1,000,000
Interest Cost	68,462
Expense recognised in the Income statement	1,892,157

Other Comprehensive Income

(All figures in INR)

Particulars	March 31, 2018
Actuarial (gains) / losses
Actuarial (gains) / losses on obligations	(246,795)
Actuarial (gains) / losses on plan assets	(144,146)
Total OCI	(390,941)

II. Long Term compensated absences - Leave Encashment Assets and Liability (Balance sheet position)

(All figures in INR)

Particulars	March 31, 2018	March 31, 2017
Present value of obligation	1,432,061	846,005
Fair value of plan assets	-	-
Surplus / (deficit)	(173,116)	586,056
Net asset / (liability)	1,258,945	1,432,061

Expense recognised during the period

(All figures in INR)

Particulars	March 31, 2018
In Income statement (P&L A/c - expense provision)	1,067,407

Changes in the present value of obligation

(All figures in INR)

	For the period ending
Particulars	March 31, 2018	March 31, 2017
Present value of obligations as at the beginning	1,432,061	846,005
Interest cost	97,523	40,983
Current Service Cost	969,884	948,946
Benefits Paid	-	(593,279)
Actuarial (Gain) / Loss on obligation	(1,240,523)	189,406
Present value of obligations as at the end	1,258,945	1,432,061
Bifurcation of net liability
Current liability (Short Term)	220,173	135,277
Non-current liability (Long Term)	1,038,772	1,296,784
Net liability	1,258,945	1,432,061

Changes in the fair value of plan assets

(All figures in INR)

Particulars	For the period ending
	March 31, 2018	March 31, 2017
Fair value of plan assets as at the beginning	-	-
Adjustment to opening Fair value of plan asset	-	-
Return on plan assets excluding Interest Income	-	-
Interest Income	-	-
Contribution by employer	-	593,279
Benefits Paid	-	-
Fair value of plan assets as at the end	-	-

Expense recognised in the Income Statement

(All figures in INR)

Particulars	March 31, 2018
Current Service Cost	969,884
Past Service Cost	-
Interest Cost	97,523
Expense recognised in the Income statement	1,067,407

I. Actuarial assumptions:

	Gratuity (Funded) 2017-18	Leave Encashment (Non funded) 2017-18	Gratuity (Funded) 2016-17	Leave Encashment (Non funded) 2016-17
Mortality Table (LIC)	7.33%	7.33%	6.81%	6.81%
Discount rate (per annum)	3.00%	3.00%	3.00%	3.00%
Expected rate of return on plan assets (Per annum)	10.10	9.12	10.13	9.55
Rate of escalation in salary (per annum)	5%	5%	5%	5%

The estimates of rate of escalation in salary considered in actuarial valuation, taking into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

The expected rate of return on plan assets is determined considering several applicable factors, mainly the composition of plan assets held, assessed risks, historical results of return on plan assets and the Company''s policy for plan assets management.

41. Disclosure as per Ind AS - 21 - The effects of changes in foreign exchange rates Un-hedged foreign currency exposure at the year end: (All figures in INR)

Particulars	March 31, 2018	March 31, 2017
Trade payables	95,29,996	14,176,311
Trade receivables	58,818,646	70,313,160

Particular	March 31, 2018	March 31, 2017
a. Exchange differences arising out of settlement / translation on account of export sales for the year	30,591	19,65,376
b. Exchange differences arising out of settlement / translation on account of previous year imports	633,173	(116,910)
c.Exchange differences arising out of settlement / translation on account of others	626,231	574,465
Net gain / (loss) recognised during the year	1,289,995	2,422,931

42. Disclosure as per Ind AS - 33 Earning per Share:

Particulars	March 31, 2018	March 31, 2017
Total No. of Shares	10,182,506	10,182,506
Profit after Taxes and exceptional items (In INR)	14,700,120	3,527,961
Earning per share Basic & Diluted (INR 10 per share)	1.44	0.35

43. Disclosure as per Ind AS-108 Operating segments:

As the Company is predominantly engaged in the manufacture and sale of chemicals where the risks and returns associated with the products are uniform, the Company has identified geographical segments based on location of customers as reportable segments in accordance with Ind AS 108 issued by ICAI.

a. Segment Revenue:

Geographical Location	March 31 ,2018		March 31 ,2017
	INR	%	INR	%
Domestic	388,360,942	59.04	321,729,633	52.64
External	269,437,370	40.96	289,506,165	47.36
Total	657,798,312		611,235,798

b. Segment Assets (Trade Receivables):

Geographical Location	March 31 ,2018		March 31 ,2017
	INR	%	INR	%
Domestic	82,142,964	58.24	32,475,827	31.59
External	58,826,884	41.76	70,313,160	68.41
Total	140,969,848	100.00	102,788,987	100.00

c. Other Disclosures:

Geographical Location	Carrying Amount of Segment Assets		Additions to Fixed Assets
	March 31 2018	March 31 2017	March 31 2018	March 31 2017
	INR	INR	INR	INR
Unallocable Assets	830,392,602	824,776,476	5,002,409	856,743

Note: The Company has no assets outside India other than the External Trade Receivables. All the assets, other than trade receivables, are shown as unallocable assets.

44. Disclosure as per Ind AS - 24 - Related party disclosures

(All figures in INR)

SI.No.	Particulars of the Party	Nature of Relationship	Transaction	Transactions during the year 2017-18	Closing balance at the end of the year 2017-18
1	Sri Y.S.R. Venkata Rao	Managing Director	Remuneration paid	4,997,304	-
			Commission	1,193,457
2	Mr. YV.Prashanth	Executive Director	Remuneration paid	3,225,000	-
			Commission	1,193,457	-
3	P. Sankara Rao	Chief Financial Officer	Remuneration paid	1,209,747	-
4	Ms. M. Neeharika	Company Secretary	Remuneration paid	314,368	-

45. Remuneration to Auditor (excluding GST):

(All figures in INR)

	2017-18	2016-17
Statutory Audit	550,000	400,000
Taxation Matters	75,000	50,000
Other Services	129,000	245,500

46. Previous year figures as per previous GAAP have been regrouped / re arranged / reclassified wherever considered necessary to conform to the classifications / disclosures of the current year.

As per our Report attached	For and on Behalf of Board of Directors
	Alkali Metals Limited
For C K S Associates
Chartered Accountants
FRN 007390S
N V S SRIKRISHNA	Y.S.R.VENKATA RAO	DR.J.S.YADAV
PARTNER	MANAGING DIRECTOR	CHAIRMAN
M.NO.025139	DIN: 00345524	DIN: 02014136
Place : Hyderabad	M.NEEHARIKA	P.SAN KARA RAO
Dated : 12.05.2018	COMPANY SECRETARY	CFO

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Mar 31, 2017

1. History

Alkali Metals Ltd. which was established in 1968, at Hyderabad, Telangana, India, as a closely held company, became a Public Listed company on 6th. November, 2008 being listed on BSE & N SE. Originally set up for manufacturing of Sodium Metal, the company subsequently diversified into manufacturing of Sodium derivatives, Pyridine derivatives, Fine Chemicals and APIs etc. The company is recognized as an Export House’ by DGFT and also recognized by Dept. of Science and Technology, New Delhi as an approved In house R &D Facility. ‘The company has three manufacturing units, at Uppal, Dommara Pochampally and JNPC Visakhapatnam.

ii. Defined Benefit Plan

The Employees ’Gratuity Fund Scheme managed by a Trust is a defined benefit plan. The present value o obligation is determined based on actuarial valuation using the Projected Unit Credit method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit to build up the final obligation.

The estimates of rate of escalation in salary consider actuarial valuation, ka into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary. The temperate of return on plan assets is determined considering several applicable factors, mainly the composition of plan assets held, assessed risks, historical results of return on plan assets and the Company’s policy for plan assets management.

2. Deferred Tax

The Company has computed Deferred Tax in accordance with the Accounting Standard on Accounting for Taxes on income (AS-22) issued by the Institute of Chartered Accountants of India. As at the end of t year, the Company has substantial amount of carried forward losses under the Income Tax Act which resulted in Deferred Tax Asset. The details of and liabilities of the Company as on the date of Balance Sheet are given below:

However, as a matter of prudence, the Company has not recognized the same in the books of account.

3. Segment Reporting

As the Company is predominantly engaged in the manufacture and sale of chemicals where the risks and returns associate with the products are uniformed Company has identified geographical segments based on location of customers as reportable in accordance with AS 17 issued by ICAI.

Note: The Company has no assets outside India other than the External Trade Receivables. All the asset other than trade receivables, are shown as Unallowable assets

4. Figures of the previous year have been regrouped / rearranged / reclassified wherever considered necessary to conform to the classification of the current year.

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Mar 31, 2016

1. HISTORY

Alkali Metals Ltd. which was established in 1968, Hyderabad, Telangana, India, as a closely held company, became a Public Listed company on 6thNovember, 2008 being listed on BSE & NSE. Originally set up for manufacturing of Sodium Mehe company subsequently diversified into manufacturing of Sodium derivatives, Pyridiner derives, Fine Chemicals and APIs etc. The company is recognized as an Export House’ ’by DGFT and also recognized by Dept. of Science and Technology, New Delhi as an approved mouse R &D Facility. ‘The company has three manufacturing units, at Uppal, Domma Pachampally and JNPC Visakhapatnam.

2. The Disclosures of Employee Benefits as by Accounting Standard ~ 5 (Revised) Employee Benefits, ’ are given below:

3. Defined Contribution Plan

Contributions to defined contribution plan recognized as expenses for the year are as under:

4. Defined Benefit Plan

The Employees Gratuity Fund Scheme managed by Trust is a defined benefit plan. The present value of obligation is determined based on actual valuation using the Projected Unit Credit method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each build up the final obligation.

5. DEFERRED TAX

The Company has computed Deferred Tax in accordance with the Accounting Standard on Accounting for Taxes on income (AS-22) issued by the Institute Accountants of India As at the end of the year, the Company has substantial amount of car forward losses under the Income Tax Act which resulted in Deferred Tax Asset. The details of¹ tax assets and liabilities of the Company as on the date of Balance Sheet are given below:

6. Segment Reporting

As the Company is predominantly engaged in the manufacture and sale of chemicals where the risks and returns associated with the products are uniform Company has identified geographical segments based on location of customers as reportable segments accordance with AS 7 issued by ICAI.

7. Figures of the previous year have been regrouped arranged / reclassified wherever considered necessary to conform to the classification of the current year.

---

Mar 31, 2015

Note: 1

Investment subsidy received during the year from Government of AP towards purchase of Land has been considered as Capital Reserve as per AS 12, Government Grants.

The loan is secured by hypothecation of entire fixed assets(including civil structures) purchased out of the term loan, collateral security of Land & Buildings of the Company and by personal guarantee of the Managing Director of the Company.

Term Loan from SBI is secured by first charge on Company's fixed assets financed out of the Term Loan, Collateral Security of Land & Buildings of the Company and by personal guarantee of Managing Director of the Company

The Company was sanctioned Interest Free Sales Tax Deferment of Rs,34,585,650/- under target – 2000 Scheme by the Government of Andhra Pradesh vide final eligibility Certificate No.LR No.10/4/2001/0878/0878/ID dt.24-07-2001, for a period of 14 years starting from 20- 03-1999 to 19-03-2013. The company has so far availed Sales Tax Deferment of Rs,26,979,010/- up to 31-03-2013, which is shown as liability in the Balance Sheet. The repayment of 1st year a ailment will start from the year April, 2016.

6 Security:

Working Capital Loan from bank and interest accrued on the loan are secured by hypothecation of present and future raw materials, work in progress, finished goods, stores and spares and book debts of the Company and a first charge on the immovable properties and personal guarantee of the Managing Director of the Company.

2. HISTORY:

Alkali Metals Ltd. which was established in 1968, at Hyderabad, Andhra Pradesh, India, as a closely held company, became a Public Listed company on 6th. November, 2008 being listed on BSE & NSE. Originally set up for manufacturing of Sodium Metal, the company subsequently diversified into manufacturing of Sodium derivatives, Pyridine derivatives, Fine Chemicals etc. The company is recognized as an "Export House" by DGFT and also recognized by Dept. of Science and Technology, New Delhi as an approved "In house R & D Facility". The company has three manufacturing units, at Uppal, Dommara Pochampally and JNPC Visakhapatnam.

3. CONTINGENT LIABILITIES AND COMMITMENTS (to the extent not provided for)

i. Contingent Liabilities

a. Claim against the company not acknowledged as debts - (All figures in Rs,)

2014-15 2013-14

Income Tax 3,905,446 3,905,446

Sewerage cess claimed by HMWS&SB 2,188,086 1,134,441



b. Guarantees (All figures in Rs,)

2014-15 2013-14

a) Bank guarantees 760,000 372,550

b) Letters of credit 31,338,890 43,754,139

ii. COMMITMENTS

2014-15 2013-14

Estimated amount of contracts remaining to be executed on 4,851,494 -- capital account and not provided for

4. The Disclosures of Employee Benefits as required by Accounting Standard – 15 (Revised) "Employee Benefits", are given below:

i. Defined Contribution Plan

ii. Defined Benefit Plan

The Employees' Gratuity Fund Scheme managed by a Trust is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit to build up the final obligation.

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary. The expected rate of return on plan assets is determined considering several applicable factors, mainly the composition of plan assets held, assessed risks, historical results of return on plan assets and the Company's policy for plan assets management.

5. DEFERRED TAX

The Company has computed Deferred Tax in accordance with the Accounting Standard on Accounting for Taxes on income (AS-22) issued by the Institute of Chartered Accountants of India. As at the end of the year, the Company has substantial amount of carried forward losses under the Income Tax Act which resulted in Deferred Tax Asset. The details of deferred tax assets and liabilities of the Company as on the date of Balance Sheet are given below:

6. Segment Reporting

As the Company is predominantly engaged in the manufacture and sale of chemicals where the risks and returns associated with the products are uniform, the Company has identified geographical segments based on location of customers as reportable segments in accordance with AS 17 issued by ICAI.

Note: The Company has no assets outside India other than the External Trade Receivables. All the assets, other than trade receivables, are shown as Unallowable Assets.

7. Figures of the previous year have been regrouped / rearranged / reclassified wherever considered necessary to conform to the classification of the current year.

---

Mar 31, 2014

1. HISTORY:

Alkali Metals Limited which was established in 1968, at Hyderabad, Andhra Pradesh, India, as a closely held company, became a Public Listed company on 6th. November, 2008 being listed on BSE & NSE. Originally set up for manufacturing of Sodium Metal, the company subsequently diversified into manufacturing of Sodium derivatives, Pyridine derivatives, Fine Chemicals etc. The company is recognised as an "Export House" by DGFT and also recognised by Dept. of Science and Technology, New Delhi as an approved "In house R & D Facility". The company has three manufacturing units, at Uppal, Dommara Pochampally and JNPC Visakhapatnam.

2. CONTINGENT LIABILITIES AND COMMITMENTS (to the extent not provided for)

Contingent Liabilities

a. Claim against the company not acknowledged as debts -(All figures in Rs.)

2013-14 2012-13

Income Tax 3,905,446 24,942,816

b. Guarantees (All figures in Rs.)

2013-14 2012-13

a) Bank guarantees 372,550 4,310,000

b) Letters of credit 43,754,139 52,400,043

3. The Department of Central Excise has raised a demand for an amount of Rs.2,825,718/- in connection with DTA clearances by EOU. The Company has deposited the amount and made an appeal against the Demand before the Commissioner (Appeals) which is still pending.

4. The Disclosures of Employee Benefits as required by Accounting Standard - 15 (Revised) "Employee Benefits", are given below: i. Defined Contribution Plan Contributions to defined contribution plan recognized as expenses for the year are as under:

ii. Defined Benefit Plan

The Employees'' Gratuity Fund Scheme managed by a Trust is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit to build up the final obligation.

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary. The expected rate of return on plan assets is determined considering several applicable factors, mainly the composition of plan assets held, assessed risks, historical results of return on plan assets and the Company''s policy for plan assets management.

5. Segment Reporting

As the Company is predominantly engaged in the manufacture and sale of chemicals where the risks and returns associated with the products are uniform, the Company has identified geographical segments based on location of customers as reportable segments in accordance with AS 17 issued by ICAI.

6. Figures of the previous year have been regrouped / rearranged / reclassified wherever considered necessary to conform to the classification of the current year.

---

Mar 31, 2013

1. HISTORY:

Alkali Metals Limited which was established in 1968, at Hyderabad, Andhra Pradesh, India, as a closely held company, became a Public Listed company on 6th. November, 2008 being listed on BSE & NSE. Originally set up for manufacturing of Sodium Metal, the company subsequently diversified into manufacturing of Sodium derivatives, Pyridine derivatives, Fine Chemicals etc. The company is recognised as an "Export House" by DGFT and also recognised by Dept. of Science and Technology, New Delhi as an approved " In house R & D Facility". The company has Three manufacturing units, at Uppal, Dommara Pochampally and JNPC Visakhapatnam.

2. HISTORY:

Alkali Metals Limited which was established in 1968, at Hyderabad, Andhra Pradesh, India, as a closely held company, became a Public Listed company on 6th. November, 2008 being listed on BSE & NSE. Originally set up for manufacturing of Sodium Metal, the company subsequently diversified into manufacturing of Sodium derivatives, Pyridine derivatives, Fine Chemicals etc. The company is recognised as an "Export House" by DGFT and also recognised by Dept. of Science and Technology, New Delhi as an approved "In house R & D Facility". The company has Three manufacturing units, at Uppal, Dommara Pochampally and JNPC Visakhapatnam.

3. During the year, the Department of Central Excise has raised a demand for an amount of Rs.12,295,667/- in connection with DTA clearances by EOU. The Company has deposited the amount with the Department and subsequently made an appeal to the extent of Rs.2,825,718/- before the Commissioner (Appeals) which is still pending.

4. The Disclosures of Employee Benefits as required by Accounting Standard - 15 (Revised) "Employee Benefits", are given below:

i. Defined Contribution Plan

Contributions to defined contribution plan recognized as expenses for the year are as under:

ii. Defined Benefit Plan

The Employees'' Gratuity Fund Scheme managed by a Trust is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit to build up the final obligation.

5. Segment Reporting

As the Company is predominantly engaged in the manufacture and sale of chemicals where the risks and returns associated with the products are uniform, the Company has identified geographical segments based on location of customers as reportable segments in accordance with AS 17 issued by ICAI.

6. Figures of the previous year have been regrouped / rearranged / reclassified wherever considered necessary to conform to the classification of the current year.

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Mar 31, 2012

1. CONTINGENT LIABILITIES AND COMMITMENTS (to the extent not provided for)

i. Contingent Liabilities

a. Claim against the company not acknowledged as debts -

(All figures in Rs)

2011-12 2010-11

Income Tax 4,855,446 93,552,140

b. Guarantees (All figures in Rs)

2011-12 2010-11

a) Bank guarantees 4,310,000 4,310,000

b) Letters of credit 14,05,667 2,890,000

b) Proposed Dividend

The company proposes to declare Rs 1/- (Rs 2/-) Per Share as dividend to the equity shareholders, total dividend amounting to Rs 10,182,506/- (Rs 20,365,012/-)

ii. Defined Benefit Plan

The Employees' Gratuity Fund Scheme managed by a Trust is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit to build up the final obligation.

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

The expected rate of return on plan assets is determined considering several applicable factors, mainly the composition of plan assets held, assessed risks, historical results of return on plan assets and the Company's policy for plan assets management.

2. Segment Reporting

The Company is predominantly engaged in the manufacture and sale of chemicals where the risks and returns associated with the products are uniform. During the year under review, the Company has also engaged in trading of coal. Hence, the Company has identified the Manufacture and Trading as its primary segments for reporting as against the location of production facilities considered in the previous year, in accordance with AS-17.

3. Previous year figures have been regrouped / rearranged wherever necessary

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Mar 31, 2011

1. The Disclosures of Employee Benefits as required by Accounting Standard – 15 (Revised) "Employee Benefits", are given below:

ii. Defined Benefit Plan

The Employees' Gratuity Fund Scheme managed by a Trust is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit to build up the final obligation.

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

The expected rate of return on plan assets is determined considering several applicable factors, mainly the composition of plan assets held, assessed risks, historical results of return on plan assets and the Company's policy for plan assets management.

2. Contingent liabilities not provided for (Rs. in Millions)

2010-11 2009-10

a) Bank guarantees 4.31 12.25

b) Letters of credit 2.89 5.98

c) Un-executed Capital work in progress 3.07 3.82

3. Working Capital Loans from banks and interest accrued on these loans are secured by hypothecation of present and future raw materials, work in progress, finished goods, stores and spares and book debts of the company and a first charge on the immovable properties and personal guarantee of Managing Director.

4. The Company was sanctioned Interest Free Sales Tax Deferment of Rs.34,585,650/- under target – 2000 Scheme by the Government of Andhra Pradesh vide final eligibility Certificate No. LR No.10/4/2001/0878/0878/ID dt.24-07-2001, for a period of 14 years starting from 20-03-1999 to 19-03-2013. The company has so far availed Sales Tax Deferment of Rs.21,256,799/- up to 31-03-2011, which is shown as liability in the Balance Sheet. The repayment of 1st year availment will start from year 2016.

5. ii) In accordance with the Guidance Note issued by the Institute of Chartered Accountants of India, the Company has recognised MAT Credit Entitlement of Rs.19.73 Millions in the books of account for the year. MAT Credit would result in future economic benefits by way of its adjustment against the discharge of normal tax liability under the provisions of Section 115JAA of the Income Tax Act, 1961 and there is convincing evidence that the company will pay normal income tax liability during the specified period.

6. Segment Reporting

The Company is predominantly engaged in the manufacture and sale of chemicals where the risks and returns associated with the products are uniform. The Company has identified the location of production facilities and other assets as its primary segments for reporting. The Production Segments of the company are Unit-I (Uppal), Unit-II (Dommara Pochampally) and Unit-III (Visakhapatnam).

7. There are no dues to any creditors constituting "Suppliers" within the meaning of Section 2(n) of the Micro, Small and Medium Enterprises development act 2006.

8. Previous years figures have been regrouped wherever necessary

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Mar 31, 2010

1. HISTORY:

Alkali Metals Ltd. which was established in 1968, at Hyderabad, Andhra Pradesh, India, as a closely held company, became a listed company on 6l November, 2008 being listed on BSE & NSE. Originally set up for manufacturing of Sodium Metal, the company subsequently diversified into manufacturing of Sodium derivatives, Pyridine derivatives, Fine Chemicals etc. The company is recognised as an "Export House" by DGFT and also recognised by Dept. of Science and Technology, New Delhi as an approved " In house R&D Facility". The company has three manufacturing units, at Uppal, Dommara Pochampally and JNPC Visakhapatnam. The unit at Dommara Pochampally and Visakhapatnam are 100% EOUs.

ii. Defined Benefit Plan

The Employees Gratuity Fund Scheme managed by a Trust is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit to build up the final obligation.

2. Contingent liabilities not provided for:(Rs. In Lakhs)

2009-10 2008-09

a) Bank guarantees 122.5 80.60

b) Letters of credit 59.80 121.46

c) Un-executed Capital work in 38.17 183.50 progress

3. Claim against the company not acknowledged as debts -

Income Tax 78,587,933 60,205,633

4. Working Capital Loans from banks and interest accrued on these loans are secured by hypothecation of present and future raw materials, work in progress, finished goods, stores and spares and book debts of the company and a second charge on the immovable properties and personal guarantees of some of the Directors.

5. The Company was sanctioned Interest Free Sales Tax Deferment of Rs. 34,585,650/- under Target - 2000 Scheme by the Government of Andhra Pradesh vide final eligibility Certificate No. LR No.lO/4/2001/0878/0878/ID dt. 24-07-2001, for a period of 14 years starting from 20/03/1999 to 19/03/2013. The company has so for availed Sales Tax Deferment of Rs. 19,013,999/- up to 31-03-2010, which is shown as liability in the Balance Sheet. The repayment of 1st year availment will start from year 2016.

6. Segment Reporting

The company is predominantly engaged in the manufacture and sale of chemicals where the risk and returns associated with the products are uniform. The company has identified the Geographical segments as its primary segments for reporting. The Geographical segments of the company are Europe, Japan, USA and other etc.

7. There are no due to any creditors constituting "Suppliers" within the meaning of Section 2 (n) of the Micro, Small and Medium Enterprises development act 2006.

8. Previous years figures have been regrouped wherever necessary