<dhhead>Directors Report</dhhead>
Dear Members,
Alkem Laboratories Limited
Your Directors are pleased to present their 51st Annual
Report on the business and operations together with the Audited Financial Statements of
the Company for financial year ended 31 March, 2025. Consolidated performance of the
Company and its subsidiaries has been referred to, wherever required.
FINANCIAL PERFORMANCE
( C in Million)
|
Standalone |
Consolidated |
Particulars |
Year ended 31 March, 2025 |
Year ended 31 March, 2024 |
Year ended 31 March, 2025 |
Year ended 31 March, 2024 |
Revenue from continuing operations |
88,134.4 |
79,638.5 |
129,645.2 |
126,675.8 |
Other Income |
5,070.6 |
3,059.9 |
4,937.4 |
3,108.4 |
Total Income from continuing operations |
93,205.0 |
82,698.4 |
134,582.6 |
129,784.2 |
Profit before Interest, Depreciation and Tax |
26,632.6 |
19,133.4 |
30,058.9 |
24,348.4 |
Less: Interest |
761.1 |
800.7 |
1,217.0 |
1,124.1 |
Less: Depreciation |
2,836.1 |
2,391.4 |
3,571.6 |
2,993.0 |
Profit before Tax from continuing operations |
23,035.4 |
15,941.3 |
25,270.3 |
20,231.3 |
Less: Provision for Taxation
(net) from continuing operations |
2,138.2 |
336.2 |
3,110.3 |
2,116.7 |
Share in loss after tax of associates (net) |
- |
- |
(6.2) |
- |
Profit after Tax and before
Non-controlling Interest from continuing operations |
20,897.2 |
15,605.1 |
22,153.8 |
18,114.6 |
Less: Non-controlling Interest |
- |
- |
499.0 |
156.9 |
Profit for the year from continuing
operations |
20,897.2 |
15,605.1 |
21,654.8 |
17,957.7 |
Profit before Tax from discontinued
operations |
2,938.5 |
2,869.0 |
- |
- |
Tax expense of discontinued operations |
1,026.8 |
1,002.6 |
- |
- |
Profit from discontinued operations (after
Tax) |
1,911.7 |
1,866.4 |
- |
- |
Profit for the year |
22,808.9 |
17,471.5 |
21,654.8 |
17,957.7 |
Other Comprehensive Income |
(115.0) |
(43.5) |
207.5 |
206.5 |
Other Comprehensive Income
attributable to Non- controlling Interest |
- |
- |
(10.3) |
(6.1) |
Total Comprehensive Income
attributable to owners of the Company |
22,693.9 |
17,428.0 |
21,862.3 |
18,164.2 |
Balance of other equity as of 01.04.2024 |
105,307.0 |
93,259.4 |
102,881.5 |
90,213.8 |
Dividend on Equity Shares |
(5,021.7) |
(5,380.4) |
(5,021.7) |
(5,380.4) |
Recognition of put option liability during
the year |
- |
- |
(278.6) |
(305.5) |
Employee compensation expense for the year |
- |
- |
166.1 |
189.4 |
Balance of other equity as of 31.03.2025 |
122,979.2 |
105,307.0 |
119,609.6 |
102,881.5 |
OVERVIEW OF FINANCIAL PERFORMANCE
During financial year ended 31 March, 2025, the Companys total
revenue including other income was C93,205.0 Million on Standalone basis as against
C82,698.4 Million achieved in the previous year, registering a growth of 12.7%.
The export turnover of the Company during financial year 2024-25 was
C24,908.3 Million as against C19,301.8 Million achieved in the previous year, registering
a growth of 29.0%.
During financial year ended 31 March, 2025, the Company and its
subsidiaries achieved a total revenue including other income of C1,34,582.6 Million on
Consolidated basis, as against a turnover of C1,29,784.2 Million achieved in the previous
year, registering a growth of 3.7 %.
During financial year ended 31 March, 2025, Standalone Profit before
interest, depreciation and tax from continuing operations increased by 39.2% at C26,632.6
Million as against C19,133.4 Million in the previous year, whereas Consolidated Profit
before interest, depreciation and tax increased by 23.5% at C30,058.9 Million as against
C24,348.4 Million in the previous year. As a result, Standalone Profit before tax from
continuing operations increased by 44.5% over the previous year to C23,035.4 Million and
Consolidated Profit before tax was C25,270.3 Million, which grew by 24.9% over the
previous year.
The Standalone Net Profit after tax from continuing operations for
financial year ended 31 March, 2025 increased by 33.9% to C20,897.2 Million over the
previous year while the Consolidated Net Profit after tax increased by 20.6% over the
previous year to C21,654.8 Million.
DIVIDEND
During financial year 2024-25, the Board of Directors on 07 February,
2025, declared and paid an interim dividend of C37/- / (Rupees Thirty Seven only) per
equity share of C2/- (Rupees Two only) each, being 1850% of paid up share capital of the
Company. In addition, your Directors are pleased to recommend payment of C8 /- (Rupees
Eight only) per equity share of C2/- (Rupees Two only) each as final dividend for
financial year 2024-25, for the approval of the Members at the ensuing Annual General
Meeting (AGM) of the Company. If approved, the total dividend (interim and final) for
financial year 2024-25 will be C45 /- (Rupees Forty Five only) per equity share of C2/-
(Rupees Two only) each as against the total dividend of C40/- (Rupees Forty only) per
equity share of C2/- (Rupees Two only) each paid for the previous financial year.
In compliance with the requirement of Regulation 43A of the SEBI
(Listing Obligation and Disclosure Requirements) Regulations, 2015 (hereinafter referred
to as "SEBI LODR Regulations"), the Company has formulated its Dividend
Distribution Policy, which is available on the Companys website at
https://admin.alkemlabs.com/uploads/977928327_ Dividend_distribution_policy_6b026313dc.pdf
The said Policy is also annexed to this Report as Annexure A.
TRANSFER TO RESERVES
The Company has not transferred any amount to the General Reserve for
financial year 2024-25.
SHARE CAPITAL
The paid up equity share capital of the Company as on
31 March, 2025 was C239.1 Million. The Company has neither issued
shares with differential rights as to dividend, voting or otherwise nor issued shares to
the Employees or Directors of the Company, under any scheme (including sweat equity
shares).
DEPOSITS
The Company has not accepted any deposits from the public/ members
during the year under review and accordingly no amount on account of principal or interest
on public deposits was outstanding as on 31 March, 2025.
SUBSIDIARIES
As on 31 March, 2025, the Company has a total of 29 subsidiaries and 2
associate companies within the meaning of Sections 2(87) and 2(6) of the Companies Act,
2013 (hereinafter referred to as "the Act") respectively. The Company does not
have any joint venture company(ies).
During the year under review:
M/s. Alixer Nexgen Therapeutics Limited was incorporated as a
wholly owned subsidiary of the Company in India, on 12 July, 2024;
M/s. Alkem Wellness Limited was incorporated as a wholly owned
subsidiary of the Company in India, on 16 September, 2024;
M/s. Pharmacor SpA was incorporated as a step-down subsidiary of
the Company in Chile, on 22 November, 2024;
M/s. HaystackAnalytics Private Limited was classified as an
associate of the Company w.e.f. 10 January, 2025; and
M/s. Sunsure Solarpark Twenty-Two Private Limited was classified
as an associate of the Company w.e.f. 29 January, 2025. and none of the companies
ceased to be a subsidiary of the Company.
In addition to the above, the Company has also:
Acquired 100% stake of M/s. Bombay Ortho Industries Private
Limited through M/s. Alkem Medtech Private Limited, thereby making it a wholly owned
step-down subsidiary of the Company w.e.f. 16 April, 2025; and
Acquired 100% stake of M/s. Adroit Biomed Limited, thereby
making it a wholly owned subsidiary of the Company w.e.f. 23 April, 2025.
Pursuant to the first proviso to Section 129(3) of the Act and Rule 5
and Rule 8(1) of the Companies (Accounts) Rules, 2014, the salient features of financial
statements, performance and financial position of each subsidiary is given in Form AOC-1
as Annexure B to this Report.
The Audited Financial Statements of the subsidiaries are available on
the Companys website at https://www. alkemlabs.com/investors/subsidiary-accounts
pursuant to Section 136 of the Act.
MANAGEMENT DISCUSSION AND ANALYSIS
A detailed report on the Management Discussion and Analysis is provided
as a separate section forming part of this Report.
CORPORATE GOVERNANCE
In compliance with Regulation 34 read with Schedule V of the SEBI LODR
Regulations, a Report on Corporate Governance for the year under review is provided as a
separate section along with a certificate from the Statutory Auditors conforming the
Companys compliance with the conditions of Corporate Governance, forming part of
this Report.
BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT
In compliance with Regulation 34 of SEBI LODR Regulations, the Business
Responsibility and Sustainability Report, describing the initiatives taken by the Company
from an environmental, social and governance perspective, is provided as a separate
section forming part of this Report.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
The Company undertakes CSR activities in accordance with the
Companys CSR Policy. The CSR program aims to address the immediate and long term
needs of the community and focus on where the major impact on marginalized sections of the
society can be made. The Companys CSR strategy involves a multi-sectoral inclusive
approach to focus on community needs. It strives to improve the well-being of communities
by focusing on key thematic areas of healthcare, education, rural development, environment
and sports. The Company implements these activities directly or through reliable
partnerships with various NGOs. During financial year 2024-25, the Company has addressed
the requirements of local communities in the vicinity of its head office, manufacturing
facilities and R&D centers through focused projects in the said thematic areas.
Details about the Companys CSR Policy and initiatives/ activities
undertaken by the Company during financial year 2024-25 are outlined in the Report on CSR
activities annexed to this Report as Annexure C.
The CSR Policy is posted on Companys website: https://
admin.alkemlabs.com/uploads/csr_policy_e0e5ec8d61.pdf
DIRECTORS AND KEY MANAGERIAL PERSONNEL
Appointments:
The details of the appointment during the year under review is as
follows:
Appointment of Mr. Rajeev Kher as an Independent Director of the
Company.
Considering the experience, expertise, proficiency and high standards
of integrity possessed by Mr. Rajeev Kher (DIN: 01192524), the Board of Directors
of the Company based on recommendation of the Nomination and Remuneration Committee,
approved the appointment of Mr. Rajeev Kher (DIN: 01192524) as an Additional Director
until such time that the approval of the Members of the Company has been obtained, to hold
office for a term of 5 (five) consecutive years w.e.f. 09 August, 2024 upto 08 August,
2029. The Members of the Company through Postal Ballot on 03 October, 2024,
approved the said appointment of Mr. Rajeev Kher as an Independent Director of the
Company, not liable to retire by rotation, for a term of 5 (five) consecutive years w.e.f.
09 August, 2024 upto 08 August, 2029.
The details of appointments, post closure of the year under review are
as follows: Appointment of Mr. Ranjal Laxmana Shenoy as an Additional Director designated
as an Independent Director of the Company w.e.f. 13 July, 2025.
Considering the experience, expertise, proficiency and high standards
of integrity possessed by Mr. Ranjal Laxmana Shenoy (DIN: 00074761), the Board of
Directors of the Company based on recommendation of the Nomination and Remuneration
Committee and subject to approval of the Members of the Company, approved the appointment
of Mr. Ranjal Laxmana Shenoy (DIN: 00074761) as an Additional Director designated as an
Independent Director of the Company, to hold office for a term of 5 (five) consecutive
years w.e.f. 13 July, 2025 upto 12 July, 2030, not liable to retire by rotation.
Appointment of Ms. Neela Bhattacherjee as an Additional Director
designated as an Independent Director of the Company w.e.f. 13 July, 2025.
Considering the experience, expertise, proficiency and high standards
of integrity possessed by Ms. Neela Bhattacherjee (DIN: 01912483), the Board of Directors
of the Company based on recommendation of the Nomination and Remuneration Committee and
subject to approval of the Members of the Company, approved the appointment of Ms. Neela
Bhattacherjee (DIN: 01912483) as an Additional Director designated as an Independent
Director of the Company, to hold office for a term of 5 (five) consecutive years w.e.f. 13
July, 2025 upto 12 July, 2030, not liable to retire by rotation.
Resignation / Completion of tenure
Resignation
Dr. Dheeraj Sharma, Independent Director of the Company, resigned
w.e.f. 14 June, 2024 due to pre-occupation. The Directors placed on record appreciation
for the valuable contribution made by Dr. Dheeraj Sharma during his tenure as an
Independent Director in the Company.
Completion of Tenure
Mr. Arun Kumar Purwar, Ms. Sudha Ravi and Ms. Sangeeta Singh,
Independent Directors of the Company shall be completing their tenure of two consecutive
terms of 5 years each, as Independent Directors on the Board of Directors of the Company
on 12 July, 2025.
Directors liable to retire by rotation
Mr. Srinivas Singh (DIN: 06744441) and Mr. Mritunjay Kumar Singh (DIN:
00881412) are liable to retire by rotation at the ensuing AGM of the Company pursuant to
the provisions of Section 152 of the Act read with the Companies (Appointment and
Qualification of Directors) Rules, 2014 and the Articles of Association of the Company and
being eligible they have offered themselves for re-appointment, on the recommendation of
the Nomination and Remuneration Committee and the Board of Directors of the Company.
Particulars in pursuance of Regulation 36 of the SEBI LODR Regulations
read with Secretarial Standard 2 on General Meetings relating to Mr. Srinivas Singh
and Mr. Mritunjay Kumar Singh are included in the Notice of AGM.
Key Managerial Personnel
In accordance with the provisions of Section 203 of the Act read with
the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 the
following are the Key Managerial Personnel of the Company as on 31 March, 2025:
Mr. Sandeep Singh - Managing Director;
Dr. Vikas Gupta - Chief Executive Officer;
Mr. Nitin Agrawal - President and Chief Financial Officer; and
Mr. Manish Narang, President - Legal, Company Secretary and
Compliance Officer
Independent Directors
The Independent Directors hold office for a term of 5 (five) years and
are not liable to retire by rotation. The Independent Directors of the Company fulfill the
conditions specified in the Act and SEBI LODR Regulations and are independent of the
management.
Declaration of independence from Independent Directors
The Company has received declarations from all the Independent
Directors confirming that they meet the criteria of independence as prescribed under the
provisions of the Act, read with the schedules and rules issued thereunder, as well as
Regulation 16(1)(b) of the SEBI LODR Regulations (including any statutory modification(s)
or re-enactment(s) thereof for the time being in force). In terms of Regulation 25(8) of
the SEBI LODR Regulations, the Independent Directors have confirmed that they are not
aware of any circumstance or situation, which exist or may be reasonably anticipated, that
could impair or impact their ability to discharge their duties with an objective
independent judgement and without any external influence.
The terms and conditions of appointment of the Independent Directors
are posted on Companys website:
ht t ps://admin.alkemlabs.com/uploads/ Ter ms _ of_
appointment_Independent_Directors_2a82f9dd72.pdf
Familiarization Program
In compliance with the requirements of SEBI LODR Regulations, the
Company has put in place a framework for Directors Familiarization Programme to
familiarize them with their roles, rights and responsibilities as Directors, the working
of the Company, nature of the industry in which the Company operates, business model, etc.
The details of the Familiarization Programme conducted during financial year under review
are provided in the Corporate Governance Report. The same is also available on the
Companys website at
https://www.alkemlabs.com/investors/details-familiarization-program.
Annual Evaluation of Boards Performance
The details of the annual evaluation of the Individual Directors, Board
as a whole and all the Committees of the Board have been provided in the Corporate
Governance Report, which forms part of this Report.
The Independent Directors, at a separate meeting held on 18
March, 2025 evaluated performance of Non-Independent Directors, performance of the Board
as a whole and performance of the Chairperson of the Company.
The evaluation of the Independent Directors was carried out by the
entire Board of Directors without the participation of the respective Independent
Director.
The Company follows a policy for selection and appointment of
Directors, Senior Management and their remuneration, which is available on the
Companys website at https://admin. alkemlabs.com/uploads/1378936118_Nomination_and_
Remuneration_Policy_modified_27052016_307d64b304. pdf. The said Policy is annexed to this
Report as Annexure D.
PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURES
The disclosure pertaining to remuneration and other details as required
under Section 197(12) of the Act read with Rule 5(1) of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014 is annexed to this Report as Annexure E.
Further, a statement showing the names and other particulars of top ten
employees in terms of remuneration drawn and of employees drawing remuneration in excess
of the limits required under Section 197(12) of the Act read with Rule 5(2) and 5(3) of
the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 forms
part of this Report. However, in terms of first proviso to Section 136(1) of the Act, the
Annual Report and Annual Financial Statements are being sent by email to the Members and
others entitled thereto, excluding the aforesaid information. The said information shall
be provided electronically to any Member on a written request to the Company Secretary to
obtain a copy of the same.
NUMBER OF MEETINGS OF THE BOARD
The Board of Directors met 5 (five) times during financial year
2024-25. The details of the Board meetings and the attendance of Directors thereat are
provided in the Corporate Governance Report, which forms part of this Report.
COMMITTEES OF THE BOARD
Audit Committee
The Audit Committee comprises of Mr. Arun Kumar Purwar as Chairperson
and Mr. Sandeep Singh, Mr. Mritunjay Kumar Singh, Ms. Sangeeta Singh, Mr. Narendra Kumar
Aneja and Ms. Sudha Ravi as Members.
The brief terms of reference of the Audit Committee and the particulars
of meetings held and attendance thereat are mentioned in the Corporate Governance Report
which forms part of this Report.
Nomination and Remuneration Committee
The Nomination and Remuneration Committee comprises of Mr. Arun Kumar
Purwar as Chairperson and Mr. Basudeo N. Singh, Ms. Sudha Ravi and Mr. Narendra Kumar
Aneja as Members.
The brief terms of reference of the Nomination and Remuneration
Committee and the particulars of meetings held and attendance thereat are mentioned in the
Corporate Governance Report which forms part of this Report.
Corporate Social Responsibility and Sustainability Committee
The Board of Directors at its meeting held on 07 February, 2025 had
renamed the Corporate Social Responsibility Committee as the Corporate
Social Responsibility and Sustainability Committee.
The Corporate Social Responsibility and Sustainability Committee
comprises of Mrs. Madhurima Singh as Chairperson and Mr. Sandeep Singh, Mr. Srinivas
Singh, Ms. Sangeeta Singh and Ms. Sudha Ravi as Members.
The brief terms of reference of the Corporate Social Responsibility and
Sustainability Committee and the particulars of meetings held and attendance thereat are
mentioned in the Corporate Governance Report which forms part of this Report.
Stakeholders Relationship Committee
The Stakeholders Relationship Committee comprises of Mr. Sujjain
Talwar as Chairperson and Mr. Mritunjay Kumar Singh, Mrs. Madhurima Singh and Mr. Srinivas
Singh as Members.
The brief terms of reference of the Stakeholders Relationship
Committee and the particulars of meetings held and attendance thereat are mentioned in the
Corporate Governance Report which forms part of this Report.
Risk Management Committee
The Risk Management Committee comprises of Mr. Mritunjay Kumar Singh as
Chairperson and Mr. Sandeep Singh, Mr. Srinivas Singh, Ms. Sudha Ravi, Mr. Narendra Kumar
Aneja and Mr. Sujjain Talwar as Members.
The brief terms of reference of the Risk Management Committee and the
particulars of meeting held and attendance thereat are mentioned in the Corporate
Governance Report which forms part of this Report.
RISK MANAGEMENT
The Companys Board of Directors has overall responsibility for
the establishment and oversight of the Companys risk management framework. The
Company has a Board approved Risk Management Policy. The Board of Directors have
constituted a Risk Management Committee which is delegated with the responsibility of
overseeing various strategic, operational and financial risks that the organization faces,
along with assessment of risks, their management and mitigation procedures. A detailed
analysis of the business risks and opportunities is given under Management Discussion and
Analysis Report forming part of this Report.
DIRECTORS RESPONSIBILITY STATEMENT
To the best of their knowledge and belief, your Directors confirm that:
(a) in the preparation of the annual accounts for financial year ended 31 March, 2025, the
applicable accounting standards have been followed along with proper explanation relating
to material departures, if any;
(b) they have selected such accounting policies and applied them
consistently and made judgements and estimates that are reasonable and prudent so as to
give a true and fair view of the state of affairs of the Company as at 31 March, 2025 and
of the profit of the Company for the year ended on that date;
(c) they have taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the provisions of the Act, for safeguarding
the assets of the Company and for preventing and detecting fraud and other irregularities;
(d) they have prepared the annual financial statements on a going
concern basis;
(e) they have laid down internal financial controls to be followed by
the Company and that such internal financial controls are adequate and operating
effectively; and
(f) they have devised proper systems to ensure compliance with the
provisions of all applicable laws and that such systems are adequate and operating
effectively.
SECRETARIAL STANDARDS
The Company has devised proper systems to ensure compliance with the
applicable provisions of Secretarial Standards issued by the Institute of Company
Secretaries of India and that such systems are adequate and operating effectively.
AUDITORS AND AUDITORS REPORT
Statutory Auditor
Pursuant to the provisions of Section 139 of the Act and the Companies
(Audit and Auditors) Rules, 2014 (including any statutory modification(s) or
re-enactment(s) thereof, for the time being in force), M/s. Deloitte Haskins & Sells
LLP (Firm Registration No. 117366W/W-100018), Chartered Accountants, the Statutory
Auditors of the Company, were appointed pursuant to the resolution passed by the Members
at the 50th AGM of the Company held on 30 August, 2024, for a term of 5 (five)
consecutive years from the conclusion of 50th AGM of the Company until the
conclusion of the 55th AGM to be held in year 2029. As per the provisions of
Section 139 of the Act, the appointment of Statutory Auditors is required to be ratified
by the Members at every AGM. However, in accordance with the Companies Amendment Act,
2017, enforced on 7 May, 2018 by the Ministry of Corporate Affairs, the appointment of
Statutory Auditors is not required to be ratified at every AGM.
M/s. Deloitte Haskins & Sells LLP, Chartered Accountants, the
Statutory Auditors of the Company have confirmed that they are not disqualified from
continuing as the Statutory Auditors of the Company for financial year 2025-2026.
The Auditors Report for financial year ended 31 March, 2025, is
an unmodified one. However, pursuant to CARO report, following are the adverse remarks
stated in the Auditor's Report:
- Delay in depositing Provident Fund for certain employees during the
year which was mainly due to their Aadhar number not being linked to the Universal Account
Number (UAN). The Company is however in the process of resolving the said issue so that
dues can be deposited.
- The Company has a valid share certificate of 510 to 513 Shah Nahar
property in its name, however the title deeds of the said property were not traceable and
the Company is in the process of procuring a copy of the same from the concerned statutory
authority.
Cost Auditor
The Company is required to maintain cost records for certain products
as specified by the Central Government under Section 148(1) of the Act and accordingly
such accounts and records are made and maintained in the prescribed manner.
Pursuant to the provisions of Section 148 of the Act and the rules made
thereunder read with notifications/ circulars issued by the Ministry of Corporate Affairs
from time-to-time and as per the recommendation of the Audit Committee, the Board of
Directors at its meeting held on 29 May, 2024, had re-appointed Mr. Suresh D. Shenoy, Cost
Accountant (Membership No. 8318), as the Cost Auditor of the Company for financial year
2024-25 to conduct the audit of the cost records of the Company. A resolution for
ratification of the fees payable to the Cost Auditor is included in the Notice of AGM for
seeking approval of Members. The Cost Audit Report will be filed within the period
stipulated under the Act.
Secretarial Auditor
Pursuant to the provisions of Section 204 of the Act read with the
Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Board of
Directors had appointed M/s Manish Ghia & Associates, Practicing Company Secretaries,
(Membership No. F6252, COP No. 3531) to conduct Secretarial Audit of the Company for
financial year 2024-25. Secretarial Audit Report is annexed to this Report as Annexure F.
The said Report does not contain any qualification, reservation or adverse remark.
ANNUAL RETURN
The Annual Return of the Company in prescribed Form MGT-7 is available
on the website of the Company at https://www. alkemlabs.com/investors/annual-returns
RELATED PARTY TRANSACTIONS
All the Related Party Transactions entered into by the Company during
financial year 2024-25, were at arms length basis and in compliance with the
applicable provisions of the Act and the SEBI LODR Regulations and are in conformity with
the Companys Policy on Related Party Transactions.
The disclosure of material related party transactions entered into by
the Company during financial year 2024-25, as required under Section 134(3)(h) of the Act
read with Rule 8(2) of the Companies (Accounts) Rules, 2014 in Form AOC-2 is annexed to
this Report as Annexure G. The Policy on Related Party Transactions as approved by the
Board of Directors is posted on the Companys website at https://admin.alkemlabs.
com/uploads/Final_Policy_on_Related_Party_Transactions_ Feb_2025_fedbf7ca56.pdf
PARTICULARS OF LOANS/ GUARANTEES GIVEN/ INVESTMENTS MADE AND SECURITIES
PROVIDED
The particulars of loans, guarantees, investments and securities
provided covered under the provisions of Section 186 of the Act have been disclosed in the
notes to the financial statements forming part of the Annual Report.
VIGIL MECHANISM / WHISTLE BLOWER POLICY
Pursuant to the provisions of Section 177(9) of the Act, the Board of
Directors of the Company have framed the Vigil Mechanism / Whistle Blower Policy for
employees and/ or volunteers of the Company. The said Policy encourages to report any
action or suspected action taken within the Company that is illegal, fraudulent or in
violation of any adopted policy of the Company including reporting of instances of leak or
suspected leak of unpublished price sensitive information. The Policy also provides access
to the Chairperson of the Audit Committee under certain circumstances. The Whistle Blower
Policy is posted on the website of the Company at https://admin.alkemlabs.com/
uploads/Whistle_Blower_Policy_new_5d094b8491.pdf
PREVENTION OF SEXUAL HARASSMENT AT WORKPLACE
The Company has adopted a policy in line with the provisions of Sexual
Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the
Rules made thereunder.
Internal Complaints Committees have been constituted at Company's head
office as well as at all the Companys plants, depots and R&D centers to redress
complaints received on sexual harassment. During financial year 2024-25, the Company has
not received any complaint of sexual harassment.
DISCLOSURES UNDER THE ACT
Change in Nature of Business, if any:
During financial year 2024-25, there has been no change in the nature
of business of the Company.
Material Changes and Commitments affecting the financial position of
the Company:
There are no material changes and commitments, which have occurred
between the end of financial year and the date of the Report which have affected the
financial position of the Company.
Significant and Material Orders:
The Company has not received any significant or material orders passed
by any regulatory authority, court or tribunal which may impact the going concern status
and Companys operations in future.
Reporting of Frauds by Auditors:
During the year under review, there were no frauds reported by Auditors
under Section 143(12) of the Act.
Details on Insolvency and Bankruptcy Code:
During the year under review, no application has been made by the
Company under the Insolvency and Bankruptcy Code and accordingly the requirement of
disclosing the following details are not applicable to the Company:
(i) the details of application made or any proceeding pending under the
Insolvency and Bankruptcy Code, 2016 (31 of 2016) during the year alongwith their status
as at the end of the financial year; and
(ii) the details of difference between amount of the valuation done at
the time of onetime settlement and the valuation done while taking loan from the Banks or
Financial Institutions along with the reasons thereof.
DETAILS ON INTERNAL FINANCIAL CONTROLS RELATED TO FINANCIAL
STATEMENTS
The Company has designed and implemented a process driven framework for
Internal Financial Controls (IFC) as mandated under the Act. The Companys policies,
guidelines and procedures provide for adequate checks and balances and are meant to ensure
that all transactions are authorized, recorded and reported correctly.
During the year under review, Internal Auditors of the Company with the
external audit consultants have reviewed the effectiveness and efficiency of these systems
and procedures. As per the said assessment, Board is of the view that the IFC were
adequate and effective during the financial year.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
The information on conservation of energy, technology absorption and
foreign exchange earnings and outgo as stipulated under Section 134(3)(m) of the Act and
the Rules framed thereunder is annexed herewith as Annexure H to this Report.
ACKNOWLEDGEMENT
Your Directors would like to express sincere gratitude to all valuable
stakeholders of the Company viz., the Central and State Government Departments,
organizations, agencies, our customers, shareholders, dealers, vendors, banks, medical
fraternity, patients and other business associates for their excellent support and
co-operation extended by them during the financial year under review.
The Board of Directors also places on record its appreciation for the
significant contribution made by the employees of the Company through their dedication,
hard work and unstinted commitment.
For and on behalf of the Board |
Alkem Laboratories Limited |
Basudeo N. Singh |
Executive Chairman |
DIN: 00760310 |
Mumbai, 29 May, 2025 |