Financial Statements to the Members
We have audited the accompanying standalone financial statements of AlphaHi-Tech Fuel Limited (the Company) comprising the Balance Sheet as at 31st March2018 the Statement of Profit and Loss (including Other Comprehensive Income) the CashFlow Statement and the Statement of Changes in Equity for the year then ended and asummary of significant accounting policies and other explanatory information.
The Company's Board of Directors is responsible for matters stated inSection 134(5) of the Companies Act 2013 (the Act) with respect to the preparation of thesaid financial statements that give a true and fair view of the financial positionfinancial performance and cash flows and changes in equity of the Company in accordancewith the accounting principles generally accepted in India including the IndianAccounting Standards specified under Section 133 of the Act read with Companies (IndianAccounting Standards) Rules 2015. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.
Our responsibility is to express an opinion on the said financialstatements based on our audit. We have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made thereunder. We conductedour audit in accordance with the Standards on Auditing specified under section 143(10) ofthe Act. Those Standards require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether the financial statementsare free from any material misstatement.
An audit involves performing procedures to obtain audit evidence aboutthe amounts and the disclosures in the financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. In making thoserisk assessments the auditor considers internal financial control relevant to theCompany's preparation of the financial statements that give a true and fair view in orderto design audit procedures that are appropriate in the circumstances but not for thepurpose of expressing an opinion on whether the Company has in place an adequate internalfinancial control system over financial reporting and the operating effectiveness of suchcontrols. An audit also includes evaluating the appropriateness of the accounting policiesused and the reasonableness of the accounting estimates made by the Company's Directorsas well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the financial statements.
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2018 and its loss and cash flows for the year ended on that date.
The financial information of the Company for the year ended 31st March2017 and the transition date opening balance sheet as at 1st April 2016 included in theseStandalone financial statements are based on the previously issued statutory financialstatements for the years ended 31st March 2017 and 31st March 2016 prepared inaccordance with the Companies (Accounting Standards) Rules 2006 (as amended our opinionis not qualified in that respect. However the adjustments to those financial statementsfor the differences in accounting principles adopted by the Company on transition havebeen audited by us.
Emphasis of Matter
Without qualifying our opinion we draw attention to the following:
The Company has accumulated losses as on 31-3-2018 of Rs. 22843445/-(Rs. 22111231/-) as against a Net Worth (ie. Capital plus other Reserves) of Rs.36785060/- ( Rs. 36785060/-) illustrating a substantial erosion in its net worth.These conditions indicate the existence of a material uncertainty that may cast a doubtabout the Company's ability to continue as a going concern. However we are informed thatthe financial statements of the Company have been prepared on a going concern basispursuant to the decision of the Board of Directors based on the basis of a strategicfuture plan.
Report on other legal and regulatory requirements
(1) As required by the Companies (Auditor's Report) Order 2016 (CARO)issued by the Central Government of India in terms of section 143 (11) of the Act we givein the Appendix A' a statement on the matters specified in paragraphs 3 and 4 ofCARO to the extent applicable.
(2) As required by Section 143 (3) of the Act we report that:
(a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit;
(b) In our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination of those books; (c) TheBalance Sheet the Statement of Profit and Loss (including other comprehensive income)and the Cash Flow Statement and the Statement of Changes in Equity dealt with by thisReport are in agreement with the books of account; (d) In our opinion the aforesaidfinancial statements comply with the applicable Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. (e) Thematter under the Emphasis of Matters paragraph above in our opinion depending on thepotential outcome may have an adverse effect on the functioning of the Company. (f) Onthe basis of the written representations received from the directors and taken on recordby the Board of Directors none of the directors is disqualified as on 31st March 2018from being appointed as a director in terms of Section 164 (2) of the Act (g) With respectto the adequacy of the internal financial controls over financial reporting of the Companyand the operating effectiveness of such controls refer to our separate Report inAppendix B'. (h) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 asexplained by the Board of Directors of the Company and based on the extent of informationand explanations made available to us: i. The Company has disclosed (refer Point 2'of Notes forming part of Financial Statements) the impact of pending litigations on itsfinancial position in its financial statements; ii. The Company has not entered in anylong term contracts including derivative contracts; iii. There were no amounts which wererequired to be transferred to the Investor Education and
Protection Fund by the Company.
(M. M. Mehta)
M. No. 44355
Mumbai 5th July 2018
ALPHA HI-TECH FUEL LIMITED 25TH ANNUAL REPORT
"Appendix A" to Independent Auditors' Report dated 5th July2018 of Alpha Hi-Tech Fuel Limited
(referred to in paragraph 1 under the heading Other Legal andRegulatory Requirements'):
In our opinion subject to the extent of information and explanationsavailable or provided to us we report that:
(i) Regarding fixed assets:
(a) The Company has maintained necessary record showing particularsincluding quantitative details and situation of fixed assets;
(b) We are informed that the management has conducted physicalverification of the fixed assets during the year and no material discrepancies were foundon such verification;
(c) The Company has not acquired any immovable properties during theyear. We are informed that the title deed of immovable property is held in the name ofCompany which has been relied upon
; (ii) The company did not have any inventories as on 31st March 2018consequently this clause is not applicable.
(iii) The company has not granted any loans secured or unsecured tocompanies firms LLP's or other parties covered in the register maintained under section189 of the Act consequently sub-clauses (a) to (c) of this clause are not applicable.
(iv) The Company has not given loans to its directors nor provided anyguarantee or security in connection with a loan to any other body corporate or person ormade any investment in any body corporate during the year.
(v) The Company has not accepted any deposits (except mentioned in Note11' of Notes forming part of Financial Statements) in terms of directives issued byReserve Bank of India and the provisions of sections 73 to 76 of the Act and the rulesframed there under.
(vi) We are informed that the central government has not prescribedmaintenance of cost records under section 148(1) of the Act which has been relied upon.
(vii) Regarding statutory dues: (a) We are informed that the Company isgenerally regular in depositing undisputed statutory dues including provident fundemployees' state insurance sales tax wealth tax service tax duty of customs duty ofexcise value added tax cess and any other statutory dues (as applicable) with theappropriate authorities.
(b) There are no dues of income tax sales tax (except income tax andsales tax dues referred in Point 2' of Notes forming part of FinancialStatements) wealth tax service tax customs duty excise duty value added tax or cessthat have not been deposited on account of any dispute.
(viii) The Company has no dues payable to financial institution bankgovernment or debenture holders.
(ix) The Company did not raise any money by way of initial public offeror further public offer (including debt instruments) and term loans during the year.
(x) We are informed that there have been no cases of fraud on or by theCompany noticed or reported during the year which has been relied upon.
(xi) The Company has not paid any managerial remuneration in terms ofsection 197 read with Schedule V to the Act.
(xii) We are informed that the Company is not a Nidhi company whichhas been relied upon.
(xiii) We are informed that the transactions with related parties(refer Point 5' of Notes forming part of Financial Statements) are in compliancewith sections 177 and 188 of the Act (to the extent applicable) which has been reliedupon and appropriate disclosures as per Ind-AS 24 have been provided in the standalonefinancial statements.
(xiv) The Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year.
(xv) We are informed that the Company has not entered into non-cashtransactions with directors or persons connected with him which has been relied upon
(xvi) The Board of Directors of the Company are of the opinion thatthough there are certain financial assets in the Company however both the Income andAsset criteria specified under the Non Banking Financial or Investment Company(NBFC)' Regulations issued by the Reserve Bank of India (RBI) are not satisfied. Hencein light of the foregoing the Board of Directors have informed us that the Company is notrequired to be registered under section 45-IA of the Reserve Bank of India Act 1934which has been relied upon.
for M/s.Manoj Mehta & Co.
ICAI firm registration no. : 116681W
M. M. Mehta
Membership no. : 044355
Mumbai; 5th July 2018
Appendix B" to the Independent Auditor's Report of even dateReport on the Internal Financial Controls under section 143(3)(i) of the Act
We have audited the internal financial controls over financialreporting of Alpha Hi-Tech Fuel Limited as of 31st March 2018 in conjunction withour audit of the standalone financial statements of the Company for the year ended on thatdate.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India (ICAI).
These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.
Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") and the Standards on Auditing issued by theInstitute of Chartered Accountants of India and deemed to be prescribed under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls both applicable to an audit of Internal Financial Controls and bothissued by the Institute of Chartered Accountants of India.
Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over FinancialReporting
Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.
In our opinion and as per the information and explanations provided tous and based on our examination of the records in accordance with the essential componentsof internal controls stated in the said Guidance Note and further subject to ourobservations under emphasis of matter' in our report of even date on standalonefinancial statements the Company has in all material respects a system of internalchecks on its day to day transactions which acts as an informal internal financial controlsystem over financial reporting which commensurate with its size and nature of itsbusiness is adequate and operating effectively as at 31st March 2018.
for M/s.Manoj Mehta & Co.
ICAI firm registration no. : 116681W
M. M. Mehta
Membership no. : 044355
Mumbai; 5th July 2018