To the Members of Alkali Metals Limited
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying financial statements of ALKALI METALS LIMITED
("the Company"), which comprise the Balance Sheet as at 31 March, 2023, the
Statement of Profit and Loss (including Other Comprehensive Income), the Statement of
Changes in Equity and statement of Cash Flows for the year then ended, and Notes to the
Financial Statements, including a summary of significant accounting policies and other
explanatory information.
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid financial statements give the information required by the
Companies Act, 2013 in the manner so required and give a true and fair view in conformity
with the Indian Accounting Standards prescribed under section 133 of the Act read with the
Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and
other accounting principles generally accepted in India, of the state of affairs of the
Company as at March 31, 2023, and its Profit and other comprehensive income, changes in
equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the financial statements in accordance with the Standards on
Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. Our
responsibilities under those Standards are further described in the Auditors
Responsibilities for the Audit of the Financial Statements section of our report. We are
independent of the Company in accordance with the Code of Ethics issued by the Institute
of Chartered Accountants of India together with the ethical requirements that are relevant
to our audit of the financial statements under the provisions of the Companies Act, 2013
and the Rules thereunder, and we have fulfilled our other ethical responsibilities in
accordance with these requirements and the Code of Ethics. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion on the financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the financial statements of the current period. These matters
were addressed in the context of our audit of the financial statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters. We
have determined that there are no key audit matters to communicate in our report.
Other Information
The Companys Board of Directors is responsible for the preparation of the other
information. The other information obtained at the date of this auditors report comprises
the information included in the Management Discussion and Analysis, Boards Report
including Annexures to Boards Report and Shareholders Information but does not include
the financial statements and our auditors report thereon.
Our opinion on the financial statements does not cover the other information and we do
not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read
the other information and, in doing so, consider whether the other information is
materially inconsistent with the financial statements or our knowledge obtained in the
audit or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information obtained prior to the
date of this auditors report, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this
regard.
Responsibilities of Management and Those Charged with Governance for the Financial
Statements
The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of
these financial statements that give a true and fair view of the financial position,
financial performance, total comprehensive income, changes in equity and cash flows of the
Company in accordance with the accounting principles generally accepted in India,
including the Ind AS specified under section 133 of the Act. This responsibility also
includes maintenance of adequate accounting records in accordance with the provisions of
the Act for safeguarding of the assets of the Company and for preventing and detecting
frauds and other irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness of the accounting
records, relevant to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, the management is responsible for assessing the
Companys ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless the
management either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the companys financial
reporting process.
Auditors Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditors report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with SAs
will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the
basis of these financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial
statements, whether due to fraud or error, design and perform audit procedures responsive
to those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to
design audit procedures that are appropriate in the circumstances. Under section 143(3)(i)
of the Companies Act, 2013, we are also responsible for expressing our opinion on whether
the company has adequate internal financial controls system in place and the operating
effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of managements use of the going concern basis
of accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors report to the related disclosures in
the financial statements or, if such disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence obtained up to the date of our auditors
report. However, future events or conditions may cause the Company to cease to continue as
a going concern.
• Evaluate the overall presentation, structure and content of the financial
statements, including the disclosures, and whether the financial statements represent the
underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2020 issued by the Central
Government of India in terms of sub-section (11) of Section 143 of the Act (hereinafter
referred to the "Order"), and on the basis of such checks of the books and
records of the Company as we considered appropriate and according to the information and
explanations given to us, we give in the Annexure-1 a statement on the matters specified
in paragraphs 3 and 4 of the Order.
2. As required by section 143(3) of the Act, based on our audit we report that:
a. We have sought and obtained all the information and explanations which to the best
of our knowledge and belief were necessary for the purpose of our audit.
b. In our opinion, proper books of account as required by law have been kept by the
Company so far as it appears from our examination of those books.
c. The Balance Sheet, the Statement of Profit and Loss (including other comprehensive
income), the statement of cash flows and the statement of changes in equity dealt with by
this Report are in agreement with the books of account.
d. In our opinion, the aforesaid said financial statements comply with the Ind AS
specified under Section 133 ofthe Act, read with Rule 7 ofthe Companies (Accounts) Rules,
2014.
e. On the basis of written representations received from the Directors as on 31 March,
2023, and taken on record by the Board of Directors, none of the directors is disqualified
as on 31 March , 2023, from being appointed as a director in terms of Section 164(2) ofthe
Act.
f. With respect to the adequacy of the internal financial controls over financial
reporting of the Company and the operating effectiveness of such controls, refer to our
separate Report in "Annexure -2".
g. With respect to the other matters to be included in the Auditors Report in
accordance with the requirements of section 197(16) of the Act, as amended, we report that
the remuneration paid by the Company to its directors during the year, in our opinion and
to the best of our information and according to the explanations given to us, is in
accordance with the provisions of section 197 of the Act."
h. With respect to the other matters to be included in the Auditors Report in
accordance with Rule 11 of the Companies (Audit and Auditors), 2014, in our opinion and to
the best of our information and according to the explanations given to us;
i. The Company has disclosed the impact of pending litigations on its financial
position in its Ind AS financial statements.
ii. In our opinion and as per the information and explanations provides to us, the
Company has not entered into any long-term contracts including derivative contracts,
requiring provision under applicable laws or accounting standards, for material
foreseeable losses, and
iii. There has been no delay in transferring the amounts required to be transferred, to
the Investor Education and Protection Fund by the Company.
iv. a. The Management has represented that, to the best of its knowledge and belief,
as
disclosed in the note 51to the accounts, 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, directly or indirectly lend or invest in other
persons or entities identified in any manner whatsoever by or on behalf of the Company
("Ultimate Beneficiaries") or provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries.
b. The Management has represented, that, to the best of its knowledge and belief, as
disclosed in the note 51 to the accounts, no funds have been received by the Company from
any person or entity, including foreign entities ("Funding Parties"), with the
understanding, whether recorded in writing or otherwise, that the Company shall, 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.
c. Based on the audit procedures performed that have been considered reasonable and
appropriate in the circumstances, nothing has come to our notice that has caused us to
believe that the representations under sub-clause (i) and (ii) of Rule 11(e) contain any
material mis-statement.
i. The dividend declared and paid during the year by the company is in compliance of
Sec.123 of the Companies Act, 2013.
j. The Company has used such accounting software for maintaining its books of account
which has a feature of recording audit trail (edit log) facility and the same has been
operated throughout the year for all transactions recorded in the software and the audit
trail feature has not been tampered with and the audit trail has been preserved by the
company as per the statutory requirements for record retention.
For G. Nagendrasundram & Co
Chartered Accountants (FRN: 005355S)
|
B.N. Bharathi |
|
Partner |
| Place : Hyderabad |
M.No. 236639 |
| Date : 27 May, 2023 |
UDIN:23236639BGYHKW2736 |
ANNEXURE - 1 TO THE INDEPENDENT AUDITORS REPORT:
(Referred to in Paragraph 1 under section ‘Report on Other Legal and Regulatory
Requirements
of our report of even date)
1.1.1. According to the information and explanations given to us, the Company is
maintaining proper records showing full particulars including quantitative details and
situation of Property, Plant and Equipment.
1.1.2. According to the information and explanations given to us, the Company is
maintaining proper records showing full particulars of intangible assets.
1.2. According to the information and explanations given to us, all the Property, Plant
and Equipment have been physically verified by the management at reasonable intervals and
no material discrepancies were noticed on such verification.
1.3. The title deeds of all the immovable properties disclosed in the financial
statements are held in the name of the Company.
1.4. According to the information and explanations given to us, the company has not
revalued its Property, Plant and Equipment (including Right of Use assets) or intangible
assets or both during the year.
1.5. According to the information and explanations given to us, no proceedings have
been initiated or are pending against the company for holding any benami property under
the Benami Transactions (Prohibition) Act,1988(45 of 1988) and rules made thereunder.
2.1 According to the information and explanations given to us, the inventories have
been physically verified at reasonable intervals by the management and in our opinion, the
coverage and procedure of such verification by the management is appropriate. No
discrepancies of 10% or more in the aggregate for each class of inventory were noticed.
2.2 The company has been sanctioned working capital limits in excess of five crore
rupees, in aggregate from banks or financial institutions on the basis of security of
current assets and the quarterly returns or statements filed by the company with such
banks or financial institutions are in agreement with the books of accounts ofthe Company.
3. According to the information and explanations given to us, company has not made
investments in, provided any guarantee or security or granted any loans or advances in the
nature of loans, secured or unsecured, to companies, firms, Limited Liability Partnerships
or any other parties. Hence, the matters to be reported under the sub-clauses (a), (b),
(c), (d), (e ) and (f) are not applicable to the company.
4. According to the information and explanations given to us, the Company has not
granted any loans, has not made any investments, nor given any guarantee or security to
parties covered under the provisions of Section 185 and 186 ofthe Companies Act.
5. According to the information and explanations given to us, the Company has not
accepted any deposits or amounts which are deemed to be deposits, requiring compliance
under the directives issued by Reserve Bank of India and the provisions of Sections 73 to
76 or any other relevant provisions ofthe Companies Act and the rules framed there under.
6. According to the information given to us, the maintenance of cost records has not
been specified by the Central Government under sub-section (1) of Section 148 of the
Companies Act and in our
opinion, prima facie, such accounts and records have been so made and maintained.
However, we have not carried out any detailed examination of such accounts and records.
7.1 According to the information and explanations given to us, the company is generally
regular in depositing undisputed statutory dues including goods and service tax, provident
fund, employees state insurance, income tax, sales tax, service-tax duty of customs, duty
of excise, value added tax, cess and any other statutory dues to the appropriate
authorities.
According to the information and explanations given to us, there are no arrears of
outstanding statutory dues as at the last day of the financial year under audit for a
period of more than six months from the date they became payable except Customs duty of
10.98 lakhs.
7.2 According to the information and explanations given to us, there are no statutory
dues referred to in sub-clause (a) which have not been deposited on account of dispute
except the following:
| Nature of the Statute & Nature of due |
Amount in Lakhs |
Period |
Forum where litigation is pending |
| The department of GST Telangana has raised demandpertaining to Input Tax Credit&
Penalties |
15.24 |
FY2017-18 and F Y 2018- 19 |
GST - Appellate Authority |
| The department of GST Andhra Pradesh has raised demandpertaining to Input Tax
Credit& Penalties |
0.93 |
FY2017-18 |
GST - Appellate Authority |
8. According to the information and explanations given to us, there are no transactions
that are not recorded in the books of account, which have been surrendered or disclosed as
income during the year in the tax assessments under the income Tax Act,1961.
9.1 According to the information and explanations given to us, the Company has not
defaulted in repayment of loans or other borrowings or in the payment of interest thereon
to any lender.
9.2 According to the information and explanations given to us, the company is not
declared as a wilful defaulter by any bank or financial institution or other lender.
9.3 According to the information and explanations given to us, the term loans taken
during the year were applied for the purpose for which loans were obtained.
9.4 According to the information and explanations given to us, the funds raised by the
company on short-term basis have not been utilised for long-term purposes.
9.5 According to the information and explanations given to us, the company has not
taken any funds from any entity or person on account of or to meet the obligations of its
subsidiaries, associates or joint ventures.
9.6 According to the information and explanations given to us, the company has not
raised loans during the year on the pledge of securities held in its subsidiaries, joint
ventures or associate companies.
10.1 According to the information and explanations given to us, the Company has not
raised any money by way of initial public offer or further public offer, during the year
under audit.
10.2 According to the information and explanations given to us, the Company has not
made any preferential allotment or private placement of shares or convertible debentures
(fully, partially or optionally) during the year under review. Hence, compliances of
reporting requirement under Section 42 and Section 62 of the Companies Act, 2013, whether
the funds raised have been used for the purposes for which they were so raised, is not
applicable to the Company.
11.1 According to the information and explanations given to us and based upon the audit
procedures performed by us, any fraud by the Company has not been noticed during the year.
However, as per information given by the Company, cyber fraud has happened upon the
Company involving an amount of .15.65 Lakhs during the year.
11.2 According to the information and explanations given to us and based upon the audit
procedures performed by us, no report under sub-section (12) of section 143 of the
Companies Act has been filed by the Auditors in Form ADT-4 as prescribed under rule 13 of
Companies (Audit and Auditors) Rules,2014 with the Central Government.
11.3 According to the information and explanations given to us, the company has not
received any whistle-blower complaints during the year, and hence, considering the same by
us does not arise.
12. As the Company is not a Nidhi Company under the provisions of the Companies Act,
2013 read with Nidhi Rules, 2014, the matters to be reported under sub-clauses (a), (b)
and (c) of clause (xii) are not applicable to the Company.
13. According to the information and explanations given to us, all transactions with
the related parties are in compliance with the provisions of Section 177 and 188 of the
Companies Act wherever applicable. According to the information given to us, details of
such transactions have been disclosed in the financial statements as required by the
applicable accounting standards.
14.1 In our opinion, the company has an internal audit system commensurate with the
size and nature of its business.
14.2 We have considered the reports of Internal Auditors for the period under audit.
15. According to the information and explanations given to us, the Company has not
entered into any non-cash transactions with directors or persons connected with him and
hence, reporting requirement on compliance with the provisions of Section 192 of the
Companies Act is not applicable.
16. According to the information and explanations given to us and in our opinion, the
company is not required to be registered under section 45-IA of the Reserve Bank of India
Act, 1934. As the Company is not engaged in any non-banking financial or housing finance
activity, nor is a Core Investment Company nor having more than one Core Investment
Company as part of the Group, the matters to be reported under sub-clauses (b), (c) and
(d) of clause (xvi) are not applicable to the Company.
17. The Company has not incurred cash losses during the financial covered by audit and
in the immediately preceding financial year.
18. There is no resignation of the Statutory Auditors during the year.
19. According to the information and explanations given to us and on the basis of the
financial ratios, ageing and expected dates of realisation of financial assets and payment
of financial liabilities, other information accompanying the financial statements, our
knowledge of the plans of the Board of
Directors and the management and in our opinion and based upon our examination of the
evidence supporting the assumptions furnished to us, no material uncertainty exists as on
the date of audit report that the company is capable of meeting its liabilities existing
at the date of balance sheet date as and when they fall due within a period of one year
from the balance sheet date.
20. According to the information and explanations given to us, during the year the
Company has spent required CSR funds and transfer of funds to a Fund specified in Schedule
VII to the Companies Act, as the provisions of Sec.135 do not arise.
For G. Nagendrasundram & Co
Chartered Accountants
(FRN: 005355S)
|
B.N. Bharathi |
|
Partner |
| Place : Hyderabad |
M.No. 236639 |
| Date : 27 May, 2023 |
UDIN:23236639BGYHKW2736 |
ANNEXURE - 2 TO THE INDEPENDENT AUDITORS REPORT:
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013 ("the Act"):
We have audited the internal financial controls over financial reporting of ALKALI
METALS LIMITED ("the Company") as of 31 March, 2023 in conjunction with our
audit of the financial statements of the Company for the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and maintaining internal
financial controls based on the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting
issued by the Institute of Chartered Accountants of India. These responsibilities include
the design, implementation and maintenance of adequate internal financial controls that
were operating effectively for ensuring the orderly and efficient conduct of its business,
including adherence to companys policies, the safeguarding of its assets, the prevention
and detection of frauds and errors, the accuracy and completeness of the accounting
records, and the timely preparation of reliable financial information, as required under
the Companies Act, 2013.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls over financial reporting based on our audit.
We conducted our audit in accordance with the Guidance Note on Audit of Internal
Financial Controls over Financial Reporting (the "Guidance Note") and the
Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of
the Companies Act, 2013, to the extent applicable to an audit of internal financial
controls, both applicable to an audit of Internal Financial Controls and, both issued by
the Institute of Chartered Accountants of India. Those Standards and the Guidance Note
require that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether adequate internal financial controls over financial
reporting was established and maintained and if such controls operated effectively in all
material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditors judgment, including the assessment ofthe risks ofmaterial
misstatement ofthe financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Companys internal financial controls system
over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A companys internal financial control over financial
reporting includes those policies and procedures that
1. Pertain to the maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions ofthe assets of the company;
2. Provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the company are being made only in
accordance with authorisations of management and directors of the company; and
3. Provide reasonable assurance regarding prevention or timely detection of
unauthorised acquisition, use, or disposition ofthe companys assets that could have a
material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
Opinion:
In our opinion, the Company has, in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at 31 March, 2023, based on the
internal control over financial reporting criteria established by the Company considering
the essential components of internal control stated in the Guidance Note on Audit of
Internal Financial Controls over Financial Reporting issued by the Institute of Chartered
Accountants of India.
For G. Nagendrasundram & Co
Chartered Accountants
(FRN: 005355S)
|
B.N. Bharathi |
|
Partner |
| Place : Hyderabad |
M.No. 236639 |
| Date : 27 May, 2023 |
UDIN:23236639BGYHKW2736 |
+91-9892691696
