Alpa Laboratories Ltd Directors Report.

To,

The Shareholders of the Company

The Directors have the pleasure of presenting the 33rd Annual Report of your Company together with the Audited Financial Statements for the year ended as on 31st March, 2021.

PERFORMANCE OF THE COMPANY

Financial Summary

(Rs. in Lacs).

Financial Results Financial Year ended
Standalone Consolidated
31/03/2021 31/03/2020 31/03/2021 31/03/2020
Sales and Other Income 10196.49 8893.58 10195.04 8888
Profit before finance cost & depreciation 1211.92 641.87 1209.31 626.82
Less: Finance Cost 9.82 19.94 7.79 19.62
Depreciation and Amortization 122.87 114.20 122.87 316.45
Profit Before Tax 1079.23 507.73 1078.65 290.75
Less: Exceptional Item - - - -
Less: Provision for Taxation
Current Tax (238.60) (175.40) (239.75) (180.89)
Deferred Tax 114.19 75.48 114.19 75.48
Less: Other Comprehensive Income/Expenses - -
Net Profit 726.45 407.81 724.71 185.34

The Standalone and Consolidated Financial Statements are prepared in accordance with the Accounting Standards as prescribed by Institute of Chartered Accountants of India

The Audited Consolidated Financial Statements are provided in this Annual Report.

MANAGEMENT DISCUSSIONS AND ANALYSIS:

The details of operating performance of the Company for the year, the state of affairs and the key changes in the operating environment have been analyzed in the Management Discussion and Analysis section which forms a part of the Annual Report.

APPROPRIATIONS:

DIVIDEND:

Since your company is in the progress to expansion of business in near future and board of directors with a view to maintain sufficient liquidity for expansion has recommend not to declare dividend for the year ended March 31,2021.

The Board of Directors and our whole management is fully dedicated to our shareholders and for the benefit of the company it is necessary to retain internal accruals for further improvisation of business.

Hence, the Board of Directors does not recommend the dividend for the Financial Year ended 2021.

HUMAN RESOURCES:

The company is responsible for setting the group culture which placed a key role in delivering high standards of business conduct promoting long term success and unlocking and protecting value. Alpas expectations of courage, accountability, development and team work are fundamental to our culture in 2020 we continued to make good progress in evolving our culture to increase the pace a performance focus of the way.

A culture dashboard tracks four indicator of progress, namely:

-Appointing and promoting capable people.

- Leadership capabilities

- Employee Engagement

- Style of Working

The organization takes pride in its human capital, which comprises of people from diverse backgrounds and cultures. Guided by the core values which are deeply imbibed in each of the employees, the organizations achievements are an outcome of efforts, dedication and conviction demonstrated by its people.

Through continuous efforts, new talent, both experienced as well as new entrants to the workforce, were acquired and aligned to the culture of the organization. The HR department continued to arrange training and development programs which has helped to nurture talent, sharpen and understand new management skills. On the Industrial front, the Company continued to foster cordial Industrial Relations with its workforce during the year

The company has 513 permanent employees as on 31st March, 2021

SHARE CAPITAL:

The paid-up equity share capital of the company as on 31st March, 2021 is Rs. 2104.06 Lacs and there is no change in share capital of the Company as compared to the previous financial year. During the year no further capital were raised by the company.

SUBSIDIARY, JOINT VENTURE AND ASSOCIATE COMPANIES***

There has been no material change in the nature of the business of the subsidiary i.e. Norfolk Mercantile Private Limited. The company has no subsidiary, which can be considered as material with in the meaning of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

As required, the financial data of the subsidiary is furnished in the prescribed form AOC-1 as an Annexure to the Consolidated Financial Statements Pursuant to the provisions of section 129 (3) of the Companies Act,2013 the Consolidated Financial Statements of the Company are attached.

***Note: The Company is partner in Seabright Landmark Projects LLP to the extent of 18% share in profit.

INSURANCE

The company is bound to safeguard the assets of the company with the adequate insurance policies and is reviewed periodically. The Companies planned, properties, equipment and stock are adequately insured against all major risk including lose on account of business interruption caused due to property damage the company has appropriate liability to cover product liability and others.

BOARD OF DIRECTORS:-

a) Overview:

Mr. Krishnadas Malani, Mr. Sharad Chand Lunawat, Mr. Devendra Kumar Baheti and Mrs. Jyoti Jain who are Independent Directors, have submitted declarations that each of them meets the criteria of Independence as laid down under section 149 (6) of the Act and the Listing Regulations. Based on disclosure provided by Directors, none of them are disqualified from being appointed as Directors under section 164 of the Companies Act, 2013.

Mr. Paresh Chawla, Managing Director of the company retires by rotation at the forthcoming Annual General Meeting, and being eligible offers himself for re-appointment. The brief description is here below:

a) Name of Director- Mr. Paresh Chawla, Designation Managing Director, Date of Appointment- 28th May, 2016, Experience- 22 Years in the field of Pharmaceuticals Industry and looked into the marketing even the branding of the company.

b) Mrs. Jyoti Jain- An Non-Executive Independent Woman Director, who is proposed to re-appoint as Independent Director of the Company, not liable to retire by rotation, to hold office for a second term of 5 (five) consecutive years on the Board of the Company.

b) Retirement by rotation:

As per the provisions of the Companies Act, 2013, Mr. Mahendra Singh Chawla, Director, (holding DIN 00362058), retires by rotation at the ensuing AGM and has offered himself for re-appointment.

c) Remuneration Policy and Board Evaluation:

The remuneration policy covers the remuneration for the Directors. Chairman, Managing Director, Whole-time directors, Independent directors and other employees (under senior management cadre and management cadre).

The Policy has been formulated with the following key objectives:

• To ensure that employee remuneration is in alignment with business strategy & objectives, organisation values and long-term interests of the organisation.

• To ensure objectivity, fairness and transparency in determination of employees remuneration.

• To ensure the level and composition of remuneration are reasonable and sufficient to attract, retain and motivate a high performance workforce and are in compliance with all applicable laws.

Further, In Compliance with the provision of the Companies Act, 2013 and Regulation 27 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board of Directors on the recommendation of the Nomination and Remuneration Committee reviewed a policy on remuneration of Directors and Senior Management. The remuneration policy is stated in the Corporate Governance Report. Performance evaluation of the Board was carried out during the period under review. The detail of the same is mentioned in the corporate governance report.

d) Familiarisation Program for the Independent Directors:

In Compliance with the requirements of SEBI Regulations, the Company undertook Directors familiarization program to familiarize them with their roles, rights and responsibilities as directors, the companys operations and other relevant information which would enable them to effectively discharge the responsibilities and functions conferred on them. Details are placed on the companys website.

e) Meetings of the Board and Committees thereof:

This information has been furnished under Report on Corporate Governance, which is annexed.

f) Code of Conduct for Board of Director:

The Company has also adopted a Code of Conduct for Board of Directors. This is also posted on companys website. All directors confirmed their abidance with the Code.

g) Key Managerial Personnel

Mr. Mahendra Singh Chawla, Whole Time Director, Mr. Pravin Shah, Whole Time Director, Mr. Paresh Chawla, Managing Director, Mr. Bakulesh Shah, Chief Financial Officer, Mr. Aditya Singh, Company Secretary are the key managerial person of the company in accordance with the provisions of Section(s) 2(51), and 203 of the Companies Act, 2013 read with the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014. During the year under review Ms. Megha Neema Company Secretary was resigned on 15th September, 2020 and in place of her Mr. Aditya Singh was appointed apart from this there is no change in key managerial person.

DIRECTOR RESPONSIBILITY STATEMENT:

Your Director confirms:

a) That in the preparation of the Annual Financial Statements for the year ended as on March 31st, 2021 the applicable Accounting Standards had been followed along with proper explanation relating to material departures, if any.

b) That your Directors have selected such accounting policies as mentioned in the Notes to the financial statements have been applied consistently and judgments and estimates that are reasonable and prudent have been made so as to give a true and fair view of the state of affairs of the Company and of the Profit and Loss of the Company for the year ended as on March 31st, 2021.

c) That your Directors have taken proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.

d) That your Directors have prepared the Annual Financial Statements have been prepared on a going concern basis.

e) That your Directors have laid down internal financial controls were followed by the Company and that such internal financial controls are adequate and were operating effectively.

f) That your Directors have devised proper systems to ensure compliance with the provisions of all applicable laws were in place and that such systems were adequate and operating effectively.

CORPORATE GOVERNANCE:

As per the requirement of SEBI (Listing Obligations and Disclosure requirements) Regulations, 2015 the Company has complied with the requirements of Corporate Governance in all material aspects. The report on Corporate Governance (ANNEXURE-1) together with a certificate of its compliance from a Practicing Company Secretary, forms part of the report.

FIXED DEPOSITS:

During the year under review, the Company has not accepted any fixed deposits and as such no amount of principal or interest on deposit from public was outstanding as on the date of the balance sheet.

AUDIT COMMITTEE:

Details of the Audit Committee along with its constitution and other details are provided in the Report on Corporate Governance.

AUDITORS

a) STATUTORY AUDITORS

Pursuant to Section 139 (2) of the Companies Act, 2013, read with Companies (Audit and Auditors) Rules, 2014, the Company at its 29th Annual General Meeting (AGM) held on September 29, 2017, had appointed M/s. Anuradha Ratnaparkhi and Associates, Statutory Auditor of the Company, (FRN No. 023451C) for the period of five years.

The Statutory Auditors report forms part of the Annual Report. The notes on financial statements referred to in the Auditors Report are self-explanatory and do not call for any further comments. There are no specifications, reservations, adverse remarks on disclosure by the statutory auditors in their report. They have not reported any incident of fraud to the Audit Committee of the Company during the year under review

b) COST AUDITORS:

Pursuant to the provisions of Section 148 of the Companies Act, 2013, M/s. Sudeep Saxena & Associates, Cost Accountants (Registration Number 100980) was appointed as Cost Auditors for the financial year 2020-2021 to conduct audit of cost records of the company. The Company is Maintaining cost records and liable for cost audit.

c) SECRETERIAL AUDITOR:

Pursuant to the provisions of Section 204 of the Companies Act, 2013 and other applicable provisions of the act, M/s. Shilpesh Dalal & Co. Company Secretaries were appointed as the Secretarial Auditor for auditing the secretarial records maintained by the Company for the financial year 2020-2021. The Secretarial Audit Report is attached (in FORM No. MR-3) as ANNEXURE-7 to this report.

There are no qualifications, reservations or adverse remarks in the Secretarial Audit Report. Also, pursuant to Regulation 24A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has obtained Annual Secretarial Compliance Report from a Practicing Company Secretary and submitted the same to stock exchanges where the shares of the Company are listed.

d) INTERNAL AUDITORS: SS Gandhi, Chartered Accountants are the internal auditors of the Company and to maintain its objectivity and independence, the Internal Auditors report to the Chairman of the Audit Committee. The scope and authority of the Internal Audit function is clearly defined by the Audit Committee of the Board. The Internal Auditors monitor and evaluate the efficacy and adequacy of the internal control system of the Company, its compliance with applicable laws/regulations, accounting procedures and policies. Based on the reports of the Internal Auditors, corrective actions were undertaken and thereby strengthened the controls. Significant audit observations and action plans were presented to the Audit Committee of the Board on quarterly basis.

CORPORATE SOCIAL RESPONSIBILITY:

In compliance with Section 135 of the CA 2013 read with the Companies (Corporate Social Responsibility Policy) Rules 2014, the Company has established the Corporate Social Responsibility Committee (CSR Committee).

The Board on the recommendation of CSR Committee adopted a CSR Policy. The same is available on Companys website at https://www.alpalabs.in. The CSR objectives are designed to serve societal, local and national goals in the locations that we operate in, creating a significant and sustained impact on local communities.

During the year 2020-21 the company incurred CSR Expenditure of Rs. 60 Lakhs The Company is always being a committed good corporate citizen, as a part of its Social responsibility, the company undertakes various activities for the benefit of needy people, company has maintained good relationship with the charitable organization and support for the people to improve the living conditions. During the year under review Company has supported old age homes and promotional of Social Activities undertaken by charitable institutions and organizations.

An abstract on Company CSR activities is furnished as ANNEXURE-2 to this report.

PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS:

Details of loans, guarantees and investments covered under the provisions of Section 186 of the Companies Act, 2013 are given in the notes to the financial statement.

PARTICULARS OF CONTRACTS AND RELATED PARTY TRANSACTIONS:

In line with the requirements of the Companies Act, 2013 and SEBI (LODR) Regulations, 2015, Company has formulated a policy on Related Party Transactions. All related party transactions that are entered during the financial year were on arms length basis and in the ordinary course of business. There were no materially significant transactions with Related Parties during the financial year 2020-21. The policy of related party transaction, Board had approved policies on Related Party Transactions. and the same have been uploaded on the Companys website, under the web link: www.alpalabs.in.

Related party transactions are disclosed in the notes to the Financial Statements. Prescribed Form No. AOC-2 pursuant to clause (h) of sub-section (3) of Section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014 is furnished as ANNEXURE- 3 to this report.

SAFETY, ENVIRONMENT AND HEALTH:

The Company considers safety, environment and health as the management responsibility; regular training programmes are carried out on safety, health and environment.

PREVENTION OF SEXUAL HARRASMENT AT WORK PLACE:

The Company is committed to provide a healthy environment to all employees and thus does not tolerate any discrimination and/or harassment in any form. The Company has in place a Prevention of Sexual Harassment (POSH) policy in line with the requirements of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. Frequent communication of this policy is done at regular intervals to woman employees.

The Company has setup an Internal Complaints Committee (ICC) at location where it operates in India. ICC has representation of men and women and is chaired by senior lady and has an external women representation.

No Complaints has received during the year under review 2021.

WHISTLE BLOWER POLICY/VIGIL MECHANISM:

Pursuant to Section 177(9) of the Companies Act, 2013 read with Rule 7 of the Companies (Meetings of Board and its Powers) Rules, 2014 and Regulation 22 of the SEBI (LODR) Regulation, 2015, the Board of Directors had approved and regularly amended from time to time the Policy on Vigil Mechanism/ Whistle Blower

The said mechanism provides adequate safeguards against victimization of employees who use the vigil mechanism and provides direct access to the Audit Committee. Also the Code of Business Conduct (Code) lays down important corporate ethical practices that shape the Companys value system and business functions and represents cherished values of the Company.

Whistleblower Policy and Code of Business Conduct has been hosted on Companys website link www.alpalabs.in

Your Company hereby affirms that no personnel have been denied access to the Chairman of the Audit Committee and that no complaints were received during the year.

CODE OF CONDUCT FOR PREVENTION OF INSIDER TRADING:

The Company has built a strong policy on the code of conduct for prevention of insider trading for the employees as well as for specified employees. The same is easily accessible from the company website (www.alpalabs.in)

SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS:

There are no significant and material orders passed by the Regulators or Courts or Tribunals, which would impact the going concern status of the Company.

MANAGERIAL REMUNERATION AND PARTICULARS OF EMPLOYEES:

The Remuneration policy covers the remuneration for the Directors (Chairman, Managing Director, Whole-time directors, Independent Directors and other non-executive Directors) and other employees (under senior management cadre and management cadre). The Policy has been formulated with the following key objectives:

To ensure that employee remuneration is in alignment with business strategy & objectives, organization values and long-term interests of the organization.

To ensure objectivity, fairness and transparency in determination of employees remuneration.

To ensure the level and composition of remuneration are reasonable and sufficient to attract, retain and motivate a high performance workforce and are in compliance with all applicable laws.

It covers various heads of remuneration including benefits for Directors and employees. It also covers the process followed with respect to annual performance reviews and variables considered for revision in the remuneration. The said Policy is available on the website of the Company www.alpalabs.in.

Details of remuneration as required under Section 197 (12) of the Companies Act, 2013 read with rules 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is ANNEXURE- 4 to this report.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO:

The particulars prescribed under Section 134 of the Companies Act, 2013 read with Rule 8(3) of the Companies (Accounts) Rules, 2014, relating to Conservation of Energy, Technology Absorption, Foreign Exchange Earnings and Outgo are furnished in ANNEXURE-5 to this Report.

EXTRACT OF ANNUAL RETURN:

An extract of annual return in Form MGT-9 as on 31st March, 2021 is furnished as ANNEXURE-6 this report.

APPRECIATION AND ACKNOWLEDGEMENTS:

Your directors appreciate the trust repose by the medical fraternity and look forward to their continue patronage. The Directors are grateful and pleased to place on record their appreciation for the excellent support guidance and cooperation extended by the Government Authorities and Agencies, bankers, customers, dealers and suppliers and also the valuable assistance and advice received from the Statutory Auditors, Companies Secretarial Auditors, Legal advisors, and all the shareholders. The Directors also wish to thank all the employees for their contribution, support and continued co-operation throughout the year.

On behalf of the Board of Directors of Alpa Laboratories Limited

Pigdamber, Rau. Paresh Chawla MS Chawla
14th August, 2021 Managing Director Director
DIN-00520411 DIN-00362058