The Company Overview

Alka India Limited is a public limited company incorporated and domiciled in India. The address of its registered office is Unit No. 102, First Floor, Morya Landmark II, New Link Road, Andheri (West), Mumbai - 400 053. Alka India has its primary listing with BSE Ltd. (Bombay Stock Exchange).

1. Significant accounting policies

i. Statement of compliance and basis of preparation

The financial statements of the company have been prepared are in accordance with the applicable requirements of the Companies Act 2013 and comply in all material aspects with the Indian Accounting Standards(hereinafter referred as to '1ND AS) as notified by ministry of corporate affairs in pursuant to section 133 of Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules 2016, The Companies (Indian Accounting Standards) Rules, 2017 and other relevant provisions of the Companies Act, 2013.

Accounting policies have been applied consistently to all periods presented in these financial statements, except for new accounting standards adopted by the Company. For clarity, various items are aggregated in the statement of profit and loss and balance sheet. These items are disaggregated separately in the notes to the financial statements, where applicable.

All amounts included in the financial statements are reported in INR in Lakhs unless otherwise stated

ii. Principles of consolidation

The consolidated financial statements relate to Alka India Limited (the 'Company') and its subsidiary company. The consolidated financial statements have been prepared on the following basis:

The financial statements of the subsidiary company used in the consolidation are drawn up to the same reporting date as that of the Company i.e., 31st March, 2021.

The financial statements of the Company and its subsidiary company has been combined on a line-by-line basis by adding together like items of assets, liabilities, income and expenses, after eliminating intra-group balances, intra-group transactions and resulting unrealized profits or losses, unless cost cannot be recovered.

The excess of cost to the Group of its investments in the subsidiary companies over its share of equity of the subsidiary companies, at the dates on which the investments in the subsidiary companies were made, is recognized as 'Goodwill' being an asset in the consolidated financial statements.

Minority Interest in the net assets of the consolidated subsidiary consist of the amount of equity attributable to the minority shareholders at the date on which investments in the subsidiary companies were made and further movements in their share in the equity, subsequent to the dates of investments. Net profit / loss for the year of the subsidiaries attributable to minority interest is identified and adjusted against the profit after tax of the Group in order to arrive at the income attributable to shareholders of the Company.

The consolidated financial statements have been prepared using uniform accounting policies for like transactions and other events in similar circumstances and are presented to the extent possible, in the same manner as the Company's separate financial statements.

iii. Basis of measurement

These financial statements have been prepared on a historical cost convention and on an accrual basis, except for the following material items which have been measured at fair value as required by relevant Ind AS:

a) Derivative financial instruments;

b) Financial instruments classified as fair value through other comprehensive income or fair value through profit or loss; and

c) The defined benefit asset / (liability) are recognized as the present value of defined benefit obligation less fair value of plan assets.

iv. Use of Estimates

The preparation of financial statements in conformity with Indian Accounting Standards requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses assets and liabilities and the disclosure of contingent liabilities at the end of the reporting period Although these estimates are based on the management's best knowledge of current events and actions uncertainty about these assumptions and estimates could result in the outcomes requiring a materialadjustment to the carrying amounts of assets or liabilities in future periods.

v. Property plant and Equipment's

Property, Plant and equipment is a stated at cost, netof accumulated depreciation and accumulated impairment losses, if any. Cost comprises of purchase price inclusive of taxesetc.up to the date the asset is ready for its intended use. Depreciation is provided underwritten down value method at the rates and in the manner prescribed under Schedule Ilto the Companies Act, 2013.

vi. Depreciation Tangible Fixed Assets

Depreciation on fixed assets is calculated on a Straight Line method at based on the useful lives estimated by the management or those prescribed under the Schedule II of the Companies Act, 2013, The Company has used the following rates to provide depreciation on its fixed assets.

Vehicles • 10 Years

vii. Intangible Assets

Intangible assets acquired by the Company are stated at cost less accumulated amortization less impairment loss, if any. The determination of useful life is based upon Management's judgment and includes assumptions on the timing and future estimated revenues to be generated by these assets

Other intangible assets, which comprise internally generated and acquired software used within the Entity's digital, home entertainment and internal accounting activities are stated at cost less amortization less provision for impairment. The amortizationcharge recognized in the Statement of profit and loss

viii. Borrowing Costs

Borrowing cost includes interest, amortization ancillary costs incurred in connection with the arrangement of borrowings and exchange differences arising from foreign currencyborrowingsto the extent they are regarded as an adjustment to the interest cost

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur.

ix. Impairment of non-financial assets

For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash generating units). As a result, some assets are tested individually for impairment and some are tested at the cash generating unit level. All individual assets or cash generating units are tested for impairment whenevereventsor changes in circumstances indicate that the carrying amount may not be recoverable

The carrying amounts of assets are reviewed at each balance sheet date to determine if there is any indication of impairment based on external or internal factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount which represents the greater of the net selling price of assets and their value in use in Credit risk. Rather, it recognizes impairment loss allowance based on lifetime ECLs at each reporting date night from its initial recognition

For recognition of impairment loss on other financial assets and risk exposure, the Company determines that whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-month ECL is used to provide for impairment loss However, if credit risk has increased significantly lifetimeECL is used. If in a subsequent period credit quality of the instrument improves such that there is no longer a significant increase in credit risk, thenthe entity reverts to recognizing impairment loss allowance based on 12-month ECL.

Life time ECL are the expected credit losses resulting from all possible default eventsover the expected life of a financial instrument. The 12 month ECL is a portion of the lifetimeECL which results from default events that are possible within 12 months after the reporting date

ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the entity expects to receive (i.e. all cash shortfalls), discounted at the original E1R When estimating the cash flows, an entity is required to consider all contractual terms of the financial instrument including prepayment, extension, call and similar options) over the expected life of the financial instrument However in rare cases when the expected life of the financial instrument cannot be estimated reliably then the entity is required to use the remaining contractual term of the financial instrument

ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/ expense in the Statement of profit and loss. This amount is reflected under the head other expenses in the Statement of profit and loss.

For assessing increase in credit risk and impairment loss, the Company combines financial instruments on the basis of shared credit risk characteristics with the objective of facilitating an analysis that is designed to enable significant increases in credit risk to be identified on a timely basis

x. Impairment of financial assets

In accordance with IND AS 109 the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on risk exposure arising from financial assets like debt instruments measured at amortized cost e.g. trade receivables and deposits.

The Company follows simplified approach tor recognition of impairment loss allowance on Trade receivables or contract revenue receivables The application of simplified approach does not require the Company to track changes Purchase price is assigned using a weighted average basis. Net realizable value is defined as anticipated selling price or anticipated revenue less cost to completion.

xi. Investments in subsidiaries, Associates and Joint Ventures

Investments in subsidiaries, associates and joint ventures are carried at cost less accumulated impairment losses, if any. Where an indication of impairment exists, the carrying amount of the investment is assessed and written down immediately to its recoverable amount. On disposal of investments in subsidiaries, associates and joint venture, the difference between net disposal proceeds and the carrying amounts are recognized in the Statement of Profit and Loss.

xii. Inventories

Inventories comprise of traded goods stores and spares are valued at cost or at net realizable value whichever is lower. Cost of traded goods, stores and spares is determined on weighted average basis. Stores and spares, which do not meet the definition of property plant and equipment, are accounted as inventories Net realizable value is the estimated selling price in the ordinary course of business and estimated costs necessary to make the sale

xiii. Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognized

xiv. Accounting for Taxes on Income

Tax expense comprises of current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax Act 1961. Current and deferred tax shall be recognized as income and expenses areincluded in profit and loss for the period, except to the extent that the tax arises from (a) a transaction or event which is recognized in the same or different period, outside profit or loss, either in other comprehensive Income or directly in equity or (b) a business combination. Deferred taxes recognized in respect of temporary differences between the carrying amount of assets and liabilities for financial reporting purpose and corresponding amounts used for taxation purpose except to the extent it relates to business Combination or to an item which is recognized directly in equity and in other comprehensive income.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the assets can be utilized. A deferred tax asset shall be recognized for the carry-forward of unused tax losses and unused tax credits to the extent that it is probable that future taxable profit will be available against which the unused tax losses and use tax credits can be utilized Deferred tax assets are reviewed at each reporting date and Reduced to the extent that itis no longer probable that the related tax benefit will be Realized. A deferred tax liabilityis recognized based on the expected manner of realization or settlement of carrying amount of assets and liabilities.

Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right to set off current tax asset against current tax liabilities and the deferred tax asset and deferred taxes relate to the same taxable entity and the same taxation authority

Minimum alternate tax (MAT paid in a year is charged to the statement of profit and losses current tax. The Company recognizes MAT credit available as an asset only to the extent that there is convincing evidence that the Company will pay normal income tax during the specified period, lo the period for which MAT credit is allowed to be carried forwarding the year in which the Company recognizes MAT credit as an asset in accordance with the Guidance Note on Accounting for credit available in respect of Minimum AlternativeTaxunder the Income tax Act 1961 the said asset is created by way of credit to the statementof profit and loss and how is MAT Credit Entitlement The Company reviews the"MAT credit entitlement" asset at each reporting date and write down the asset to theextent the Company does not have convincing evidence that it will pay normal tax dung the specified period.

xv. Foreign Currency Translation

Transactions in foreign currencies are translated at the rates of exchange prevailing on the dates of the transactions. Monetary and liabilities in foreign currencies are translated at the prevailing rates of exchange at the balance sheet date. Non-monetaryitems that are measured at historical cost in a foreign currency are translated at the exchange rate at the date of the transaction Non-monetary items that are measured at fair value a foreign currency are translated using the exchange rates at the date when the fair value was determined.

Any exchange differences arising on the settlement of monetary items or on translating monetary items at rates different from those at which they were usually recorded are translated at rates prevailing at the date when the fair value was determined Nonmonetary items that are measured in terms of historical cost in a foreign currency are not retranslated.

The Company's functional currency and the presentation currency is an Indian Rupee

xvi. Retirement and Other Employee Benefits

Company doesn't have any employee who has completed 5 year of continues services for provision for gratuity and other benefits. And Contributions payable by the Company to the concerned government authorities in respect of provident fund family pension fund and employee state insurance are charged to the profit and loss account it any

xvii. Segment reporting

The company's business activity falls within angle primary segment the disclosure requirements of Indian Accounting Standards 1ND AS 105) "Operating segment isnot applicable

xviii. Provisions Recognition of Provision

A provision is recognized when the company has a present obligation as a result past event. a)itis probable that an outflow of resources embodying economic bent will be required to settle the obligation and b) a reliable estimate can be made of the amountofthe obligation Were the effect of the time value of money is meal the amount ofprovision shall be the present value of the expenditures expected to be related to settle the obligation Provisions shall be reviewed at the end of each reporting period and adjusted to reflect the current best estimate If it's no longer probable that an outflow

ofresources embodying economic benefits will be required to settle the obligation the provision shall be rested

Where the company expects come or all of a provision to be reimbursed for example underan insurance contract, the reimbursement is recognized as a separate asset but only whenthe reimbursement is virtually certain The expense relating to any provision is presentedthe statement of profit and loss net of any reimbursement

xix. Cash and cash equivalents

Cash and cash equivalents tor the purposes of cash flow statement comprise cash at bank and in hand and short-term investments with an original maturity of three months or less.

xx. Measurement of EBITDA

As permitted by the Guidance Note on the Revised Schedule of the Companies Act 2013, the company has elected to present earnings before interest, tax, depreciationand amortization (EBITDA) as a separate line item on the face of the statement of profit and loss. The company measures EBITDA on the basis of profit/(loss) from continuing operations. In is measurement, the company does not include depreciation and amortization expense, finance costs and tax expenses

The basic earnings per equity share are computed by dividing the net profit attributable to the equity shareholders for the reporting period by the weighted average number of equity shares outstanding during the reporting period.

The number of shares used in computing diluted earnings per share companies the weighted average number of shares considered for deriving basic earnings per share and also the weighted average number of equity shares, which may be issued on the conversion of all dilutive potential shares, unless the results would be ant dilutive.

The earnings per share are calculated as under:

xxi. Leases

Where the Company is the lessee

Leases, where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item are classified as operating leases. Operating lease payments are recognized as an expense m the statement of profit and loss on a straight line basis over the lease term.

Where the Company is the lessor Assets subject to operating leases are included in property plant and equipment Lease come on an operating income a recognized in the statement of profit and loss on a straight line basis over the lease term Costs, including depreciation are recognized as an expense in the statement of profit and loss. Initial direct costs such as legal costs, brokerage costs, etc. are recognized immediately in the statement of profit and loss.

1.2 Related Party Transaction

As per Indian accounting standard on Related Party Disclosure Ind AS 24 notified by the Companies (Indian Accounting Standard) Rules, 2015 the names of the related parties of the Company are as follows:

Directors and KMP

1. Satish Ramswroop Panchariya

2. Ashok Ramswroop Panchariya

3. Madanlal Balchand Purhoit (up to 13-06*2019)

4. Neel Ashok Doctor (29-05-2019)

5. Hiramani Babulal Sharma

6. Ramakant Gokulchand Sharma

7. Alok Jain

8. Rajesh Yashwant Nalavade

9. Heena Bedi

10. HemantAnantMahabaleshwarkar

11. Abhishek Rai