Your Directors have pleasure in presenting the 58^th Annual Report on the business and operations of the
Company and the accounts for the Financial Year ended 31^st March, 2026.

1. Results of our operations

The results of our Operations for the Financial Year ended 31^st March, 2026 is summarized as below:

(All figures in ' Lakhs)

During the financial year 2025-26, the Company recorded a turnover of ? 9,302.90 Lakhs and a Total
Comprehensive Income of ? 67.34 Lakhs, as against a turnover of ? 8,233.00 Lakhs and a Total
Comprehensive Loss of ?580.26 Lakhs in the previous year 2024-25.The Company delivered
improved performance compared to the previous year, with higher turnover and a significant
improvement in profitability. The improvement in margins was primarily driven effective cost control
measures implemented during the year. Your Directors are confident that the Company will continue
to build on this momentum, working diligently to further enhance turnover and profitability in the
coming years.

2. Dividend

The Board of Directors recommend dividend of 10% amounting ? 1 per equity share of ? 10 each
paid-up for the approval of the shareholders at the ensuing Annual General Meeting for the Financial
Year 2025-26 and the said dividend will be paid to shareholders who hold shares as on record date
within 30 days of declaration by the shareholders. The Company will utilize the accumulated
distributable profits and balance from Reserves in compliance with applicable provisions.

3. Reserves

During the year under review, Company had not transferred any amount to General Reserves.

4. Future outlook

The Company continues to frame its strategies in line with prevailing market scenarios while actively
identifying new products and processes. To further strengthen its understanding of the international
market, the Company has participated in global pharma exhibitions. The in-house R&D team remains
focused on developing new products and improving existing processes.

The unexpected geopolitical developments and global economic conditions could potentially impact
the business. However, with greater stability in geopolitical and economic factors, your Directors are
optimistic that the Company’s performance will improve further.

5. Research & Development

During the financial year under review, the Company incurred an expenditure of ?125.03 Lakhs
towards Research and Development. The R&D team has been consistently striving to develop new
products and processes aimed at ensuring optimum material consumption and achieving effective
yields.

6. Change in the nature of business, if any

There was no change in the nature of business of the Companyduring the year under review.

7. Material changes and commitments after the closure of Financial Year

There are no material changes or commitments affecting the financial position of the Company
between the end of the Financial Year and the date of the report.

8. Significant and Material Orders

There are no significant and material orders passed by the regulators or court or tribunals impacting
the going concern status and Company operations in future.

9. Internal Financial Controls

Your Company has adequate internal controls and has adopted procedures to ensure the orderly and
efficient conduct of its business, including safeguarding of assets, prevention and detection of frauds
and errors, and accuracy and completeness of accounting records.

The Statutory Auditors have verified the internal financial controls, tested their adequacy, and
confirmed that the procedures adopted by the Company are commensurate with the size and nature of
its transactions. The Audit Committee reviews and monitors these controls and processes on a regular
basis to ensure their continued effectiveness.

10. Risk Management

The Management of the Company will continue to take adequate steps to identify, assess, control, and
mitigate the risks associated with various areas of its business operations.

11. Details of Subsidiary / Joint Ventures / Associate Companies

Your Company did not have any subsidiaries, joint ventures, or associate companies during the
financial year under review.

12. Deposits

Your Company has not accepted any deposits covered under Chapter V of the Companies Act, 2013
during the year under review and also no outstanding deposits at the beginning of the Financial Year.

13. Auditors
Statutory Auditors

The members at the 57^th Annual General Meeting of the Company held on 21^st August 2025 had
appointed M/s. JVSL & Co., Chartered Accountants, as Statutory Auditors for a term of five
consecutive years from the conclusion of the 57^th AGM, on such remuneration as may be determined
by the Board of Directors.

The Auditors’ Report for the financial year 2025-26 does not contain any adverse remarks or
comments. However, the Auditors have made certain factual disclosures in their CARO Report,
which forms part ofthe Audit Report

Internal Auditors

The Board of Directors of the Company had appointed M/s. Ramakrishna & Associates, Chartered
Accountants, as Internal Auditors to conduct the internal audit of the Company for the financial year
ended 31^st March 2026.

Further, M/s. Ramakrishna & Associates, Chartered Accountants, have been re-appointed as Internal
Auditors for the financial year 2026-27.

Secretarial Auditors

The members at the 57^th Annual General Meeting of the Company held on 21^st August 2025 had
appointed CS B. Venkatesh Babu, Practicing Company Secretary as the Secretarial Auditor of the
Company, for a period of 5 years.

For the financial year 2025-26, the Secretarial Audit Report and Secretarial Compliance Report
submitted by CS B. Venkatesh Babu do not contain any qualification, reservation, or adverse remark,
except for the factual disclosure of a one-day delay in uploading the Annual Report on the Stock
Exchanges’ website and the penalty levied by the Stock Exchanges for such delay.

14. Share Capital

During the financial year under review, your Company did not issue or raise any share capital,
including sweat equity shares or employee stock options. Further, the Company has not provided any
funds for the purchase of its own shares by employees or for the benefit of employees.

15. Extract of the Annual Return

Pursuant to the provisions of Section 92(3) read with Section 134(3) (a) of the Companies Act, 2013,
a copy of the Annual Return of the Company is available at the Company’s website
www.alkalimetals.com.

16. Conservation of energy, technology absorption and foreign exchange earnings and outgo

The details of conservation of energy, technology absorption, foreign exchange earnings and outgo
have been provided in Annexure - 1 and shall form part ofthis report.

17. Corporate Social Responsibility (CSR)

The provisions of Section 135 of the Companies Act, 2013 are not applicable to the Company.

18. Directors

i) Appointment:

There were no new appointments to the Board during the financial year 2025-26. The tenure of
Mr. Y.V. Prashanth concluded on 10^th November 2025, and he continues to serve as a Non-Executive
Director of the Company.

ii) Retire by Rotation:

Dr. A.R. Prasad and Mr. Y.V. Prashanth were re-appointed at the 57^th Annual General Meeting of the
Company held on 21^st August 2025, as they retired by rotation in accordance with the provisions of the
Companies Act, 2013 and the Articles of Association of the Company.

Ms. Y. Lalithya Poorna and Dr. J.S. Yadav are liable to retire by rotation at the ensuing Annual General
Meeting, in accordance with the provisions of the Companies Act, 2013 and the Articles of
Association of the Company. They are eligible for re-appointment and have offered themselves for
re-appointment.

Details of number of Board meetings and profile of directors are covered under the Corporate
Governance section.

iii) Re-appointment:

- The tenure of Sri Y.S.R. Venkata Rao as Managing Director is due to be completed on
30^th April 2027. As per the provisions of the Section 196(2) of the Companies Act, 2013 and other
applicable regulations, the re-appointment of the Managing Director can be considered at the
ensuing AGM, as it is less than one year prior to the expiry of his current term. Furthermore,
pursuant to Section 196(3) of the Act, the appointment or re-appointment of a person above the
age of 70 years requires the approval ofthe members by way of a special resolution. Accordingly,
resolution for his re-appointment is proposed to the members at the ensuing AGM.

- Mr. Y.V. Prashanth, Director was appointed as an Executive Director for a period of 3 years w.e.f.
1^st June 2026 by the Board of Directors at their meeting held on 26^th May 2026. This is subject to
approval of the members at the ensuing AGM. Accordingly, resolution for his appointment is
proposed to the members.

iv) Declaration by an Independent Director:

Company had received the declarations by all the Independent Directors that they meet the criteria of
independence as per the provisions of Section 149 of the Companies Act, 2013 and they are registered
with Indian Institute of Corporate Affairs (IICA) as per the amended provisions of the Companies Act,
2013.

v) Formal Annual Evaluation:

Pursuant to the provisions of the Companies Act, 2013, the Board has devised a policy for the
evaluation ofthe performance of the Board of Directors, its Committees, and individual Directors. In
accordance with this policy, the Chairman of the Nomination and Remuneration Committee obtained
duly filled evaluation templates from all Board members for the evaluation of the Board as a whole,
the Committees, and peer evaluation of individual Directors. The summary of these evaluation
reports was presented to the respective Committees and the Board for their consideration.

19. Key Managerial Personnel

During the year under review, there was no change in the Key Managerial Personnel of the Company,
except for the completion of the tenure of office of Mr. Y.V. Prashanth as Executive Director on
10^thNovember 2025.

20. Director’s Responsibility Statement

As per the provisions of clause (c) of sub-section (3) of Section 134 of the Companies Act, 2013, your
Directors shall state, that to the best of their belief and understanding -

a) in the preparation of the annual accounts, the applicable accounting standards have been
followed along with proper explanation relating to material departures;

b) they have selected such accounting policies and applied them consistently and made judgments
and estimates that are reasonable and prudent so as to give a true and fair view of the state of
affairs of the company at the end of the Financial Year and of the profit of the company for that
period;

c) they have taken proper and sufficient care for the maintenance of adequate accounting records in
accordance with the provisions of this Act for safeguarding the assets of the company and for
preventing and detecting fraud and other irregularities;

d) the annual accounts on a going concern basis; and

e) they have laid down internal financial controls to be followed by the company and that such
internal financial controls are adequate and were operating effectively.

f) proper systems to ensure compliance with the provisions of all applicable laws and that such
systems were adequate and operating effectively.

21. Committees of Board

Your Company has Audit Committee, Nomination and Remuneration Committee, and Stakeholders
Relationship Committee, the details are provided in the Corporate Governance section.

22. Vigil mechanism for Directors and Employees

The Company upholds high standards of conduct which all employees are expected to observe in their
business endeavors. The Vigil Mechanism (Code) reflects the Company’s commitment to integrity,
transparency, and fairness. A copy of the Vigil Mechanism Code is available on the Company’s
website at www.alkalimetals.com under the Investors tab.

The Company has adopted a Whistle Blower Policy, as part of the Vigil Mechanism, to provide
appropriate avenues for Directors and employees to bring to the attention of the management any
issues perceived to be in violation of or in conflict with the fundamental business principles of the
Company. Employees are encouraged to voice their concerns through whistle blowing, and all
employees have been given direct access to the Audit Committee.

Mr. Y.V. Prashanth, Executive Director, has been designated as the Ombudsperson to deal with all
complaints registered under the policy.

23. Policy on Sexual Harassment

The Company has complied with the provisions relating to the constitution of the Internal Complaints
Committee under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and
Redressal) Act, 2013. During the year under review, the Internal Complaints Committee did not
receive any complaints pertaining to incidents of sexual harassment.

24. Particulars of loans, guarantees or investments

During the financial year under review, the Company has not given any loans, provided any
guarantees, or made any investments in accordance with the provisions of Section 186 of the
Companies Act, 2013. Further, there were no outstanding amounts pertaining to loans given,
guarantees provided, or investments made at the beginning of the year.

25. Particulars of contracts or arrangements with related parties

During the Financial Year under review, Company had entered into certain Related Party
Transactions which are all on arm’s length basis; details of all such transactions as required under
section 188 of Companies Act are annexed in Form AOC-2 forming part of the Board’s Report as
Annexure-2.

The Company has formulated a policy on materiality of Related Party Transactions and dealing with
Related Party Transactions which can be accessed at the Company website www.alkalimetals.com
under Investors tab.

26. Managerial Remuneration / Employee Details

The Details required to be provided pursuant to Rule 5(1) of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014 are annexed and forming part of the Board’s
Report as Annexure -3.

The details pertaining to top 10 employees falling in this category will be provided to the shareholders
who make specific request to the Company.

The following are the employees in receipt of remuneration as specified under Rule 5(2) of
Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 as amended from
time to time:

27. Secretarial Audit Report

The Secretarial Audit Report, including the Secretarial Compliance Report as per SEBI (Listing
Obligations and Disclosure Requirements) Regulations, for the Financial Year 2025-26, obtained
from CS B. Venkatesh Babu, Company Secretary in Practice, is annexed to and forms part of the
Board’s Report as Annexure-4.

28. Corporate Governance and Management Discussion and Analysis

In terms ofRegulation 34 ofthe SEBI (LODR) Regulations, 2015, a Report on Corporate Governance
along with Compliance Certificate issued by Statutory Auditors of the Company and also the
Management Discussion and Analysis report is annexed and forms integral part ofthe Board’s Report.

29. Insurance

All the properties and insurable interests of the Company, including buildings, plant and machinery,
and stocks, have been adequately insured. The Company has also taken a Directors & Officers
Indemnity Policy for its Directors and Key Managerial Personnel, a Group Accidental Policy for staff
and workmen, and a Group Medical Policy for employees who are not covered under the Employees’
State Insurance (ESI) Scheme.

30. Listing on Stock Exchanges

The securities of the Company are continued to be listed on BSE and NSE. The listing fees for these
stock exchanges are paid till the Financial Year 2026-27.

31. Cost Records

The provisions of Section 148 of the Companies Act 2013 for maintaining the Cost Records are not
applicable to the Company.

32. Disclosure under Insolvency and Bankruptcy Code, 2016

The Company hereby confirms that there are no proceedings pending under Insolvency and
Bankruptcy Code, 2016.

33. Disclosure under the Maternity Benefit Act 1961

The Company hereby confirms there were no such instance where provisions of Maternity Benefits
Act, 1961 were triggered. The Company will comply with the provisions as and when such provisions
are triggered.

34. Compliance of Secretarial Standards

The Company has duly complied with the applicable Secretarial Standards issued by The Institute of
Company Secretaries ofIndia, for the Board, General Meetings and Dividend.

35. Frauds Reported By Auditors

During the year, there were no frauds reported by the Auditors falling under Section 143 of the
Companies Act, 2013.

36. Acknowledgements

The Board places on record its sincere gratitude to all Members, Workmen, Bankers, Regulatory
Authorities, Government Departments, Customers, Suppliers, and Business Associates in India and
overseas for their steadfast support and cooperation. The Directors look forward to receiving the same
encouragement in the Company’s future endeavors.

The Board also conveys its deep appreciation for the commitment, sincerity, and dedicated service of
the workforce at every level, whose efforts have been pivotal to the Company’s growth and success.

Looking ahead, the Directors remain optimistic and confident about the long-term prospects of the
Company, strengthened by its resilience, strategic vision, and the continued trust of all stakeholders.

For and on behalf of Board of Directors

For Alkali Metals Limited

Y.S.R. Venkata Rao Dr. J.S. Yadav

^Place : ^Hyd^erabad Managing Director Chairman

Date : 26^th May, 2026 DIN: 00345524 DIN: 02014136