Alok Industries : Annual Report for the year 2022-23

Board of Directors and Corporate Information

Nirav Parekh

(Nominee Director (Non-Executive) representing JM Financial Asset Reconstruction Company Limited)

FINANCIAL REPORT STATUTORY REPORT CORPORATE OVERVIEW

NOTICE

1. TRANSFER TO RESERVES:
   No amount is proposed to be transferred to Reserves.
2. DIVIDEND:
   On account of the Loss After Tax reported by the Company during the Financial Year 2022-23, the Board of Directors do not recommend any dividend (previous year Nil).
   The Dividend Distribution Policy of the Company approved by the Board of Directors of the Company is in line with the requirements of Listing Regulations. The Policy is available on the Company's website and can be accessed through the link: https://www.alokind.com/ Investor_Relations-pdf/Policies/Dividend_Distribution_ Policy.pdf.
   There has been no change in the policy during the year under review.
3. RESULTS OF OPERATIONS AND THE STATE OF COMPANY'S AFFAIRS:
4. 1. The Highlights of the Company's Performance (Standalone) for the Financial Year Ended 31st March, 2023, are as under:
      Total sales of the Company decreased by 5.63% to `6,748.32 Crore from `7,150.91 Crore in the previous year.
      Domestic sales increased by 3.36 % to `5,634.73 Crore from `5,451.37 Crore in the previous year.

Export sales decreased by 34.48 % to `1,113.59 Crore from `1,699.54 Crore in previous year.

Operating EBITDA was negative at `30.93 Crore as compared to positive EBITDA of `611.61 Crore in the previous year.

Operating Loss Before Tax was negative at `874.89 Crore as compared to Loss Before Tax of `184.18 Crore in the previous year.

The reported Loss After Tax for the year was `874.89 Crore as compared to Loss After Tax of `184.18 Crore.

1. The Highlights of the Company's Performance (Consolidated) for the Financial Year Ended 31st March, 2023, are as under:
   The Company achieved a consolidated revenue of `6,937.29 Crore lower by 5.09 % as compared to consolidated revenue of `7,309.50 Crore in the previous year.
   Operating EBITDA was negative at `13.80 Crore as compared to positive EBITDA of `610.90 Crore in the previous year.
   Operating Profit Before Tax (PBT) was negative at `880.92 Crore as compared to negative PBT of `208.44 Crore in the previous year.
   The reported consolidated Loss After Tax for the year was `880.46 Crore as compared to Loss After Tax of `208.60 Crore in the previous year.

A detailed analysis of financial results and operations is given in the Management Discussion and Analysis Report, which forms part of this Annual Report.

1. CONSOLIDATED FINANCIAL STATEMENTS:
   In accordance with the provisions of the Act and Listing Regulations read with relevant Accounting Standards issued by the Institute of Chartered Accountants of India, the consolidated financial statements form part of this Annual Report. The audited financial statements, including the consolidated financial statements and related information of the Company and audited accounts of each of its subsidiaries are available on the Company's website and can be accessed through the link: https://www.alokind.com/financialresult.html. These documents are also available for inspection by the Members at the Registered Office of the Company during business hours on all working days, except Saturdays, Sundays and National Holidays up to the date of the 36th Annual General Meeting ('AGM') of the Company.
2. EROSION OF NETWORTH:
   Net worth as at 31st March, 2023 was negative at `17,320.72 Crore. Accumulated losses have resulted in the erosion of over 62.05 % of peak negative net worth of `10,688.68 Crore during the immediately preceding four Financial Years.
3. PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS:
   During the year under review, the Company has not granted any loans, made any investments and provided any guarantee or security. The particulars of the loans granted, investments made and guarantee or security provided in the earlier years are given in the standalone financial statement (Refer Note 5 and 6 to the standalone financial statements).
4. MANAGEMENT DISCUSSION AND ANALYSIS REPORT:
   Management Discussion and Analysis Report for the year under review, as stipulated under the Listing Regulations, is presented in a separate section, which forms part of this Annual Report.
5. CREDIT RATING:
   The details of credit ratings are disclosed in the Corporate Governance Report, which forms part of this Annual Report.
6. SUBSIDIARIES, JOINT VENTURES AND ASSOCIATE COMPANIES:
   During the year under review, no company became/ ceased to be a subsidiary, joint venture or associate of the Company except the following two companies which ceased to be the subsidiaries of the Company:

• Springdale Information & Technologies Private Limited was dissolved w.e.f. 20.02.2012 vide order dated 08.06.2022 of the Hon'ble High Court of Judicature at Bombay.
• Kesham Developers & Infotech Private Limited was dissloved w.e.f. 20.02.2012 vide order dated 14.09.2022 of the Hon'ble High Court of Judicature at Bombay.

List of subsidiary, associate and joint venture of the Company as on 31st March, 2023, are as follows:

Sr. No. Subsidiaries

1. Alok Infrastructure Limited
2. Alok International Inc.
3. Alok International (Middle East) FZE
4. Alok Global Trading (Middle East) FZE (business license cancelled on 12th September, 2017)
5. Alok Singapore PTE Limited
6. Alok Worldwide Limited

Sr. No. Step-down subsidiaries

1. Alok Industries International Limited
2. Grabal Alok International Limited
3. Grabal Alok (UK) Limited (under liquidation effective 10th July, 2017)
4. Mileta, a.s.

Sr. No. Joint Ventures

1. New City of Bombay Manufacturing Mills Limited
2. Aurangabad Textiles and Apparel Parks Limited

Sr. No. Associates

Nil

None of the above subsidiaries is a 'Material Subsidiary' as defined in the Listing Regulations. As required under Regulations 16(1)(c) of the Listing Regulations, the Board of Directors has approved the Policy for determining Material Subsidiaries ("Policy"). The details of the Policy are available on the Company's website and can be accessed through the link: https://www.alokind.com/ Investor_Relations-pdf/Policies/Material_Subsidiaries. pdf. There has been no change in the policy during the year under review.

The audited financial statements including the consolidated financial statements of the Company and all other documents required to be attached thereto are available on the Company's website and can be accessed through the link: https://www.alokind. com/annualreport.html. The financial statements of the subsidiaries, as required, are available on the Company's website and can be accessed through the link: https://www.alokind.com/financialresult_financial_ subsidiaries.html.

FINANCIAL REPORT STATUTORY REPORT CORPORATE OVERVIEW

NOTICE