Independent Auditors' Report on Financial Statements
We have audited the accompanying standalone financial statements of Alpha Hi-Tech FuelLimited (the Company) comprising the Balance Sheet as at 31st March 2017 theStatement of Profit and Loss and the Cash Flow Statement 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 in Section 134(5) ofthe Companies Act 2013 (the Act) with respect to the preparation of these financialstatements that give a true and fair view of the financial position financial performanceand cash flows of the Company in accordance with the accounting principles generallyaccepted in India including the Accounting Standards specified under Section 133 of theAct read with Rule 7 of the Companies (Accounts) Rules 2014. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.
Our responsibility is to express an opinion on these financial statements based on ouraudit. We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under. We conducted our audit in accordancewith the Standards on Auditing specified under section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from any materialmisstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial control systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31stMarch 2017 and its loss for the year ended on that date.
Emphasis of Matter
Without qualifying our opinion we draw your attention to the following:
(a) The Company has accumulated losses as on 31-3-2017 of Rs. 22111231/- (Rs.21090123/-) 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.
(b) The Board of Directors is of the opinion that certain advances for development ofland paid in the past are now capitalized during the year which are not prejudicial tothe Company which has been relied upon.
Report on other legal and regulatory requirements
(1) As required by the Companies (Auditor's Report) Order 2015 (CARO) issued by theCentral Government of India in terms of section 143(11) of the Act we give in 'AppendixA' a statement on the matters specified in paragraphs 3 and 4 of CARO to the extentapplicable.
(2) As required by Section 143 (3) of the Act we report that:
(a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit;
(b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those book;
(c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account;
(d) In our opinion the aforesaid financial statements generally comply with theapplicable Accounting Standards specified under section 133 of the Act read with Rule 7of the Companies (Accounts) Rules 2014.
(e) The issues under the Emphasis of Matters paragraph above in our opinion dependingon the potential outcome may have an adverse effect on the functioning of the Company asa going concern.
(f) On the basis of the written representations received from the directors and takenon record by the Board of Directors none of the directors is disqualified as on 31stMarch 2017 from being appointed as a director in terms of Section 164 (2) of the Act.
(g) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in 'Appendix B';
(h) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as explained bythe Board of Directors of the Company and based on the extent of information andexplanations made available to us:
(i) The Company has disclosed (refer Point '2' of Notes forming part of FinancialStatements) the impact of pending litigations on its financial position in its financialstatements;
(ii) The Company has made provision as required under any law or accounting standardsfor material foreseeable losses (refer Point '2' of Notes forming part of FinancialStatements) on long term contracts including derivative contracts;
(iii) There were no amounts in the opinion of the management of the Company whichwere required to be transferred to the Investor Education and Protection Fund by theCompany;
(iv) The Company has provided requisite disclosures in the financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8th November2016 to 30th December 2016. Based on audit procedures and relying on the managementrepresentation we report that the disclosures are generally in accordance with books ofaccount maintained by the Company and as produced to us by the Management.
For Manoj Mehta & Co
(M. M. Mehta)
M. No. 44355
Mumbai 25th May 2017