Alpha Hi-Tech Fuel Ltd.
|BSE: 531247||Sector: Others|
|NSE: N.A.||ISIN Code: INE506B01016|
|BSE 00:00 | 04 Mar||Alpha Hi-Tech Fuel Ltd|
|NSE 05:30 | 01 Jan||Alpha Hi-Tech Fuel Ltd|
|BSE: 531247||Sector: Others|
|NSE: N.A.||ISIN Code: INE506B01016|
|BSE 00:00 | 04 Mar||Alpha Hi-Tech Fuel Ltd|
|NSE 05:30 | 01 Jan||Alpha Hi-Tech Fuel Ltd|
The Members of Alpha Hi-Tech Fuel Limited
We have audited the accompanying standalone financial statements of Alpha Hi-TechFuel Limited (the Company) comprising the Balance Sheet as at 31st March 2019 theStatement of Profit and Loss (including Other Comprehensive Income) the Cash FlowStatement and the Statement of Changes in Equity for the year then ended and notes to thefinancial statements including a summary of significant accounting policies and otherexplanatory information (hereafter Standalone Ind-AS Financial Statements').
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 (hereafter the Act') in the manner so required and give atrue and fair view in conformity with the accounting principles generally accepted inIndia of the state of affairs of the Company as at 31st March 2019 and its loss(including other comprehensive income) changes in equity and its cash flows for the yearended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities segment of our report.We are independent of the Company in accordance with the Code of Ethics issued by theInstitute of Chartered Accountants of India together with the ethical requirements thatare relevant to our audit of the financial statements under the provisions of theCompanies Act 2013 and the Rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion.
Material Uncertainty Related to Going Concern
We draw your attention to Note 3' in the Standalone Ind-AS Financial Statementswhich indicates that the Company has during the year incurred a loss of Rs.7068833/-(Rs. 732213/-) and has accumulated losses as on 31-3-2019 of Rs.29912277/- (Rs. 22843445/-) as against a Net Worth (i.e. Capital plus otherReserves) of Rs. 36785060/- (Rs. 36785060/-) illustrating a substantial erosion inits net worth. These conditions indicate the existence of a material uncertainty that maycast a doubt on the Company's ability to continue as a going concern. Our opinion is notmodified in this respect.
Key Audit Matters
Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters. Wehave determined the matter described below to be the key audit matter to be communicatedin our report.
Fair Value of Land
The Board of Directors is of the opinion that the Fair Value of the immovable propertywhich is the Land situated in Gujarat State is the same as its carrying amount recordedin the books of account of the Company.
The Board of Directors has obtained an appraisal from an approved valuer and the FairValue stated in the appraisal is approximately similar to the carrying amount of the Landas stated in the Standalone Ind-AS Financial Statements.
Emphasis of Matter
We draw your attention to Note 11' in the Standalone Ind-AS Financial Statementswhich indicates that the Company has written-off the Factory Building from the books ofaccount. The Board of Directors are of the opinion that the factory building being in adilapidated condition is not likely to fetch any value upon its disposal hence thecarrying amount was written off through the Other Comprehensive Income (OCI).
We draw your attention to Note14' in the Standalone Ind-AS Financial Statementswhich indicates that the Company has written-off significant receivables from severalparties from the books of account. The Board of Directors are of the opinion that theseare not receivable hence their carrying amounts were written off through the OCI.
We draw you attention to Note 2' in the Standalone Ind-AS Financial Statementswhich indicates that the Company has substantial statutory dues in respect of Income taxand Sales tax which are disputed by the Company with appropriate legal forums. In theevent that these statutory dues are crystallised the Company may not have sufficientfunds to meet its obligations.
We draw you attention to Note 15' in the Standalone Ind-AS Financial Statementswhich indicates that the three banks accounts of the Company are inoperative due toaccount freeze' instructions by the Income tax department of Dist. SurendranagarGujarat.
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 the said financialstatements that give a true and fair view of the financial position financial performanceand cash flows and changes in equity of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standardsspecified under Section 133 of the Act read with Companies (Indian Accounting Standards)Rules 2015. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
In preparing the financial statements the Board of Directors is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessthe Board of Directors either intends to liquidate the Company or to cease operations orhas no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Company's financialreporting process.
Our objectives are to obtain reasonable assurance about whether the Standalone Ind-ASFinancial Statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith Standards on Auditing will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these financial statements.
As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional scepticism throughout the audit. We also: Identify and assess therisks of material misstatement of the financial statements whether due to fraud or errordesign and perform audit procedures responsive to those risks and obtain audit evidencethat is sufficient and appropriate to provide a basis for our opinion. The risk of notdetecting a material misstatement resulting from fraud is higher than for one resultingfrom error as fraud may involve collusion forgery intentional omissionsmisrepresentations or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theCompanies Act 2013 we are also responsible for expressing our opinion on whether thecompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.
Evaluate the overall presentation structure and content of the financial statementsincluding the disclosures and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in
(i) planning the scope of our audit work and in evaluating the results of our work; and
(ii) to evaluate the effect of any identified misstatements in the financialstatements.
We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.
From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.
Report on other legal and regulatory requirements
As required by the Companies (Auditor's Report) Order 2016 (CARO) issued by theCentral Government of India in terms of section 143(11) of the Act we give inAppendix A' a statement on the matters specified in paragraphs 3 and 4 of CARO tothe extent applicable.
As required by Section 143 (3) of the Act we report that:
We have sought and obtained all the information and explanations which to the best ofour knowledge and belief were necessary for the purposes of our audit;
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;
The Balance Sheet the Statement of Profit and Loss the Cash Flow Statement and theStatement of Changes in Equity dealt with by this Report are in agreement with the booksof account; In our opinion the aforesaid Standalone Ind-AS Financial Statements generallycomply with the applicable Accounting Standards specified under section 133 of the Actread with Rule 7 of the Companies (Accounts) Rules 2014.
On the basis of the written representations received from the directors as on 31stMarch 2019 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2019 from being appointed as a director in termsof Section 164 (2) of the Act. With respect to the adequacy of the internal financialcontrols over financial reporting of the Company and the operating effectiveness of suchcontrols refer to our separate Report in Appendix B'; With respect to the othermatters to be included in the Auditor's Report in accordance with Rule 11 of the Companies(Audit and Auditors) Rules 2014 in our opinion and to the best of our information andaccording to the explanations and extent of information given to us: The Company hasdisclosed (refer Point 2' of the Standalone Ind-AS Financial Statements) the impactof pending litigations on its financial position in its financial statements; There wereno amounts in the opinion of the management of the Company which were required to betransferred to the Investor Education and Protection Fund by the Company;
For Manoj Mehta & Co
(M. M. Mehta)
M. No. 44355
Mumbai 12th April 2019
Appendix A' to the Independent Auditors' Report dated 12th April2019.
(referred to in paragraph 1 under the heading Other Legal and RegulatoryRequirements'):
In our opinion and according to the information and explanations given to us or asexplained to us we report that:
Regarding fixed assets:
The Company has maintained basic record showing particulars including quantitativedetails and situation of fixed assets.
We are informed that the management has conducted physical verification of the fixedassets during the year and no material discrepancies were found on such verification(refer Note 11) to the Standalone Ind-AS Financial Statements).
We have verified the title deeds of immovable property which is held inthe name of the Company.
The company has not acquired any inventories during the year consequently this clauseis not applicable. The company has not granted any loans secured or unsecured tocompanies firms limited liability partnerships or other parties covered in the registerspecified under section 189 of the Act consequently sub-clauses (a) to (c) of thisclause are not applicable.
During the year the Company has not granted any loans to its Directors in terms ofsection 185 of the Act. Similarly the Company not granted any loans or provided anyguarantee or security for any other person or body corporate nor made any investment inother body corporate in terms of section 186 of the Act.
The Company has not accepted any deposits in terms of the directives issued by theReserve Bank of India and the provisions of sections 73 to 76 or any other applicableprovisions of the Act and the rules framed there under.
We are informed that the central government has not prescribed maintenance of costrecords under section 148(1) of the Act which has been relied upon.
Regarding statutory dues:
We are informed that the Company is generally regular in depositing undisputedstatutory dues including provident fund employees' state insurance sales tax wealthtax service tax duty of customs duty of excise value added tax cess and any otherstatutory dues (as applicable) with the appropriate authorities.
There are no dues of income tax sales tax (except income tax and sales tax duesreferred in Clause 31 of Note 19' to the Standalone Ind-AS Financial Statements)wealth tax service tax customs duty excise duty value added tax or cess that have notbeen deposited on account of any dispute.
The Company has no dues payable to financial institution bank government or debentureholders.
The Company did not raise any money by way of initial public offer or further publicoffer (including debt instruments) and terms loans during the year.
We are informed that there have been no cases of fraud by the Company or on the Companyby its officers or employees noticed or reported during the year which has been reliedupon.
The Company has not paid any managerial remuneration in terms of section 197 read withSchedule V to the Act.
We are informed that the Company is not a Nidhi company which has been relied upon.
We are informed that the transactions with related parties (refer Note 5'to the Standalone Ind-AS Financial Statements) are in compliance with sections 177 and 188of the Act which has been relied upon. The details of such transactions have beendisclosed in the financial statements as required by the applicable accounting standards.
The Company has not made any preferential allotment or private placement of shares orfully or partly convertible debentures during the year.
We are informed that the Company has not entered into non-cash transactions withdirectors or persons connected with him which has been relied upon.
We are informed that the Company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934.
Appendix B' to the Independent Auditor's Report dated 12th April 2019
Report on the Internal Financial Controls under section 143(3)(i) of the Act
We have audited the internal financial controls over financial reporting of AlphaHi-Tech Fuel Limited (the Company) as of 31st March 2019 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 and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India (ICAI).
These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Act.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by the Institute ofChartered Accountants of India and deemed to be prescribed under section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controlsboth applicable to an audit of Internal Financial Controls and both issued by theInstitute of Chartered Accountants of India.
Those Standards and the Guidance Note require that we comply with ethical requirementsand plan and perform the audit to obtain reasonable assurance about whether adequateinternal financial controls over financial reporting was established and maintained and ifsuch controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that
(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
As per the information and explanations provided to us and based on our examination ofthe records in accordance with the essential components of internal controls stated in thesaid Guidance Note and further subject to our observations in our report of even date onthe standalone financial statements and Appendix A to the said report the Company has inall material respects a system of internal checks on its day to day transactions whichacts as an informal internal financial control system over financial reporting whichcommensurate with its size and the nature of its business is adequate and operatingeffectively as at 31st March 2019.
For Manoj Mehta & Co
(M. M. Mehta)
M. No. 44355
Mumbai 12th April 2019