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Alphageo (India) Ltd.

BSE: 526397 Sector: Oil & Gas
NSE: ALPHAGEO ISIN Code: INE137C01018
BSE 00:00 | 23 Sep 398.45 -6.65
(-1.64%)
OPEN

413.90

HIGH

416.90

LOW

396.50

NSE 00:00 | 23 Sep 399.25 -5.55
(-1.37%)
OPEN

408.80

HIGH

417.70

LOW

396.20

OPEN 413.90
PREVIOUS CLOSE 405.10
VOLUME 10204
52-Week high 464.15
52-Week low 142.15
P/E 7.05
Mkt Cap.(Rs cr) 253
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 413.90
CLOSE 405.10
VOLUME 10204
52-Week high 464.15
52-Week low 142.15
P/E 7.05
Mkt Cap.(Rs cr) 253
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Alphageo (India) Ltd. (ALPHAGEO) - Auditors Report

Company auditors report

To

The Members of

ALPHAGEO (INDIA) LIMITED

Report on the Audit of the Standalone Financial Statements Opinion

We have audited the accompanying standalone fi nancial statements of ALPHAGEO (INDIA)LIMITED ("the Company") which comprise the Balance Sheet as at 31stMarch 2019 and the Statement of Profi t and Loss (including Other Comprehensive Income)the Statement of Cash Flows and the Statement of Changes in Equity for the year thenended and a summary of signifi cant accounting policies and other explanatoryinformation.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone fi nancial statements give the information requiredby the Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("Ind AS") and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at 31st March 2019 and its profi ttotal comprehensive income its cash fl ows and the changes in equity for the year endedon that date.

Basis for Opinion

We conducted our audit of the standalone fi nancial statements in accordance with theStandards on Auditing specifi ed under section 143(10) of the Act (SAs). Ourresponsibilities under those Standards are further described in the Auditor'sResponsibility for the Audit of the Standalone Financial Statements section of our report.We are independent of the Company in accordance with the Code of Ethics issued by theInstitute of Chartered Accountants of India (ICAI) together with the ethical requirementsthat are relevant to our audit of the standalone fi nancial statements under theprovisions of the Act and the Rules made thereunder and we have fulfi lled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence obtained by us is su cient and appropriate toprovide a basis for our audit opinion on the standalone fi nancial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignifi cance in our auditofthestandalonefinancialstatementsofthecurrent period. Thesematters were addressed in the context of our audit of the standalone fi nancial statementsas a whole and in forming our opinion thereon and we do not provide a separate opinionon these matters. we have determined the matters described below to be the key auditmatters to be communicated in our report.

Sr. No. Key Audit Matter Auditor's Response
1 Accuracy of revenue recognition: Principal audit procedures performed:
Measurement of Liquidated damages/ Contractual Deductions involves critical estimates. Based on our knowledge gained through Company's contract with customer and work completed till date we reviewed the management workings on the calculation of Transaction price adjustment w.r.t to variable consideration i.e. adjustment of transaction price for the contractual deductions.
As per Ind AS 115
Revenue should be recognised when (or as) an entity transfers control of goods or services to a customer at the amount to which an entity expects to be entitled. As per the standard Company is required to recognise the revenue at the amount of the transaction price. While determining the transaction price an entity is required to consider the effects of all of the following:
Variable consideration We also considered the historical accuracy of estimates made by management. We further challenged management's contract risk assessments by enquiries and review of correspondence with customers where available.
Constraining estimates of variable consideration
Consideration payable to a customer. Applying the principles of Ind AS 115 to the given case Critical Estimates involved as detailed below; Estimate the amount of consideration Where the contractual deductions are inherent in determination of transaction price.
Estimated Liquidated damages are critical estimate to determine the variable consideration. This estimate has an inherent uncertainty as the deductions will be impacted based on the work to be executed in future in accordance with the contract. Refer Notes 19.1 to the Standalone fi nancial statements.

Information Other than the Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the Management Discussion and Analysis Board's Report includingAnnexures to Board's Report Corporate Governance and Shareholder's Information but doesnot include the standalone fi nancial statements and our auditor's report thereon.

Our opinion on the standalone fi nancial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone fi nancial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone fi nancial statements orour knowledge obtained during the course of our audit or otherwise appears to bematerially misstated.

If based on the work we have performed on the other information that we obtained priorto the date of this auditor's report we conclude that there is a material misstatement ofthis other information we are required to report that fact. We have nothing to report inthis regard.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these standalone fi nancialstatements that give a true and fair view of the fi nancial position fi nancialperformance including other comprehensive income cash fl ows and changes in equityof theCompany in accordance with the Ind AS and other accounting principles generally acceptedin India. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal fi nancialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalone financial statement that give a true and fair view and are free from material misstatementwhether due to fraud or error.

In preparing the standalone fi nancial statements Board of Directors is responsiblefor assessing the Company's ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Company's fi nancialreporting process.

Auditor's Responsibility for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement whether due to fraud orerror and to issue an auditor's report that includes our opinion. Reasonable assurance isa high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to infl uence the economic decisions of userstaken on the basis of these standalone fi nancial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the standalone financial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is su cient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

Obtain an understanding of internal fi nancial control relevant to the auditin order to design audit procedures that are appropriate in the circumstances.Undersection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the Company has adequate internal fi nancial controls system in place and theoperating effectiveness of such controls.

Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by the management.

Conclude on the appropriateness of management's use of the going concernbasis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast signifi cant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the standalone fi nancial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditions maycause the Company to cease to continue as a going concern.

Evaluate the overall presentation structure and content of the standalonefi nancial statements including the disclosures and whether the standalone fi nancialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and signifi cant audit fi ndings including anysignifi cant defi ciencies 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 signifi cance in the audit of the standalone fi nancialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould reasonably be expected to outweigh the public interest benefi ts of suchcommunication.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act based on our audit we report that: a) Wehave sought and obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purposes of our audit. b) In our opinionproper books of account as required by law have been kept by the Company so far as itappears from our examination of those books. c) The Balance Sheet the Statement of Profit and Loss including Other Comprehensive Income the Statement of Cash Flows and Statementof Changes in Equity dealt with by this Report are in agreement with the books of account.d) In our opinion the aforesaid standalone fi nancial statements comply with the Ind ASspecifi ed under Section 133 of the Act. e) On the basis of the written representationsreceived from the directors as on March 31

2019 taken on record by the Board of Directors none of the directors is disqualifi edas on March 31 2019 from being appointed as a director in terms of Section 164(2) of theAct. f) With respect to the adequacy of the internal fi nancial controls over fi nancialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure A". Our report expresses an unmodifi ed opinion onthe adequacy and operating effectiveness of the Company's internal fi nancial controlsover fi nancial reporting. g) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014 as amended in our opinion and to the best of our information and according to theexplanations given to us: i. The Company does not have any pending litigations which wouldimpact its fi nancial position. ii. The Company has made provision as required under theapplicable law or accounting standards for material foreseeable losses if any onlong-term contracts the company doesn't have derivative contracts; iii. There has been nodelay in transferring amounts required to be transferred to the Investor Education andProtection Fund by the Company.

2. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give in"Annexure B" a statement on the matters specifi ed in paragraphs 3 and 4 of theOrder.

For MAJETI & CO
Chartered Accountants
Firm's Registration No: 015975S
Kiran Kumar Majeti
Place: Hyderabad Partner
Date: May 22 2019 Membership No:220354

Annexure A to the Independent Auditor's Report

(Referred to in paragraph 1(f) under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal fi nancial controls over fi nancial reporting of ALPHAGEO(INDIA) LIMITED ("the Company") as of March 31 2019 in conjunction with ouraudit of the standalone Ind AS fi nancial statements of the Company for the year ended onthat date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internal financial controls based on "the internal control over fi nancial 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". These responsibilitiesinclude the design implementation and maintenance of adequate internal fi nancialcontrols that were operating effectively for ensuring the orderly and e cient conduct ofits business including adherence to company's policies the safeguarding of its assetsthe prevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable fi nancial information asrequired under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal fi nancialcontrols over fi nancial reporting of the Company based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") issued by the Institute of CharteredAccountants of India and the Standards on Auditing prescribed under Section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal fi nancial controls.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfi nancial controls over fi nancial reporting was established and maintained and if suchcontrols operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal fi nancial controls system over fi nancial reporting and their operatingeffectiveness. Our audit of internal fi nancial controls over fi nancial reportingincluded obtaining an understanding of internal fi nancial controls over fi nancialreporting 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 fi nancial statements whether due to fraud orerror.

We believe that the audit evidence we have obtained is su cient and appropriate toprovide a basis for our audit opinion on the Company's internal fi nancial controls systemover fi nancial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal fi nancial control over fi nancial reporting is a process designedto provide reasonable assurance regarding the reliability of fi nancial reporting and thepreparation of fi nancial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal fi nancial control over fi nancialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly refl ect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of fi nancial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures 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 fi nancial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal fi nancial controls over fi nancialreporting 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 fi nancial controls over fi nancialreporting to future periods are subject to the risk that the internal fi nancial controlover fi nancial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal fi nancial controlssystem over fi nancial reporting and such internal fi nancial controls over fi nancialreporting were operating effectively as at March 31 2019 based on "the criteria forinternal fi nancial control over fi nancial reporting established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.

For MAJETI & CO
Chartered Accountants
Firm's Registration No: 015975S
Kiran Kumar Majeti
Place: Hyderabad Partner
Date: May 22 2019 Membership No:220354

Annexure B to the Independent Auditor's Report

(Referred to in paragraph 2 under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date) i. (a) The Company is maintainingproper records showing full particulars including quantitative details and situation offi xed assets.

(b) The fi xed assets of the Company have been physically verifi ed by the Managementduring the year and no material discrepancies have been noticed on such verifi cation. Inour opinion the frequency of verifi cation is reasonable.

(c) The title deeds of immovable properties as disclosed in Note 3 on fi xed assets tothe fi nancial statements are held in the name of the Company. ii. The physical verification of inventory have been conducted at reasonable intervals by the Management duringthe year. The discrepancies noticed on physical verifi cation of inventory as compared tobook records were not material and have been appropriately dealt with in the books ofaccounts. iii. (a) The Company has granted unsecured loans to one company covered in theregister maintained under Section 189 of the Act. There are no fi rms LLPs and otherparties covered in the register maintained under Section 189 of the Act.

(b) In respect of the aforesaid loans the terms and conditions under which such loanswere granted are not prejudicial to the Company's interest.

(c) In respect of the aforesaid loans no schedule for repayment of principal andpayment of interest has been stipulated by the Company. Therefore in absence ofstipulation of repayment terms we do not make any comment on the regularity of repaymentof principal and payment of interest.

(d) In respect of the aforesaid loans there is no amount which is overdue for morethan ninety days. iv. In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of Section 185 and 186 of theCompanies Act 2013 in respect of the loans and investments made and no guarantees andsecurity provided by it. v. The Company has not accepted any deposits from the publicwithin the meaning of Sections 73 74 75 and 76 of the Act and the Rules framed thereunder to the extent notifi ed. vi. The Central Government of India has not specifi ed themaintenance of cost records under sub-section (1) of Section 148 of the Act for any of theproducts of the Company. vii. (a) According to the information and explanations given tous and the records of the Company examined by us in our opinion the Company is generallyregular in depositing undisputed statutory dues in respect of Goods and Service tax (GST)though there has been a slight delay in a few cases and is regular in depositingundisputed statutory dues including provident fund employees' state insurance incometax duty of customs cess and other material statutory dues as applicable with theappropriate authorities. As confi rmed by the management sales tax service tax duty ofexcise value added tax are not applicable to the company.

(b) According to the information and explanations given to us and the records of theCompany examined by us there are no dues of Goods and Service tax (GST) income-taxsales-tax service-tax duty of customs and duty of excise or value added tax which havenot been deposited on account of any dispute. viii. According to the records of theCompany examined by us and the information and explanation given to us the Company hasnot defaulted in repayment of loans or borrowings to any fi nancial institution or bank orGovernment as at the balance sheet date. There was no amount raised by the company throughthe issue of debentures. ix. The Company has not raised any moneys by way of initialpublic offer further public offer (including debt instruments) and term loans.Accordingly the provisions of Clause 3(ix) of the Order are not applicable to theCompany. x. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the Company or on the Company by its o cers or employeesnoticed or reported during the year nor have we been informed of any such case by theManagement. xi. The Company has paid/ provided for managerial remuneration in accordancewith the requisite approvals mandated by the provisions of Section 197 read with ScheduleV to the Act. xii. As the Company is not a Nidhi Company and the Nidhi Rules 2014 are notapplicable to it the provisions of Clause 3(xii) of the Order are not applicable to theCompany. xiii. The Company has entered into transactions with related parties incompliance with the provisions of Sections 177 and 188 of the Act. The details of suchrelated party transactions have been disclosed in the fi nancial statements as requiredunder Indian Accounting Standard (IND AS) 24 Related Party Disclosures specifi ed underSection 133 of the Act. xiv. The Company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the yearunder review. Accordingly the provisions of Clause 3(xiv) of the Order are not applicableto the Company. xv. The Company has not entered into any non cash transactions with itsdirectors or persons connected with him. Accordingly the provisions of Clause 3(xv) ofthe Order are not applicable to the Company. xvi. The Company is not required to beregistered under Section 45-IA of the Reserve Bank of India Act 1934. Accordingly theprovisions of Clause 3(xvi) of the Order are not applicable to the Company.

For MAJETI & CO
Chartered Accountants
Firm's Registration No: 015975S
Kiran Kumar Majeti
Place: Hyderabad Partner
Date: May 22 2019 Membership No:220354

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