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BSE Code : 539523 | NSE Symbol : ALKEM | ISIN : INE540L01014 | Industry : Pharmaceuticals - Indian - Bulk Drugs & Formln |


Directors Reports

<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 Company’s 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 Company’s 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 Company’s 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 Company’s 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 Company’s 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 Company’s 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 Company’s 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 Company’s 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 Company’s 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 Company’s website at https://www.alkemlabs.com/investors/details-familiarization-program.

Annual Evaluation of Board’s 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 Company’s 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 Company’s Board of Directors has overall responsibility for the establishment and oversight of the Company’s 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 arm’s length basis and in compliance with the applicable provisions of the Act and the SEBI LODR Regulations and are in conformity with the Company’s 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 Company’s 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 Company’s 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 Company’s 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 Company’s 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

Capital Market Publishers India Pvt. Ltd

401, Swastik Chambers, Sion Trombay Road, Chembur, Mumbai - 400 071, India.

Formed in 1986, Capital Market Publishers India Pvt Ltd pioneered corporate databases and stock market magazine in India. Today Capitaline corporate database cover more than 35,000 listed and unlisted Indian companies. Latest technologies and standards are constantly being adopted to keep the database user-friendly, comprehensive and up-to-date.

Over the years the scope of the databases has enlarged to cover economy, sectors, mutual funds, commodities and news. Many innovative online and offline applications of these databases have been developed to meet various common as well as customized requirements.

While all the leading institutional investors use Capitaline databases, Capital Market magazine gives access to the databases to individual investors through Corporate Scoreboard. Besides stock market and company-related articles, the magazine’s independent and insightful coverage includes mutual funds, taxation, commodities and personal finance.

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