Alpha Hi-Tech Fuel Ltd Auditor Reports

To the Members of Alpha Hi-Tech Fuel Limited

Opinion

We have audited the accompanying standalone financial statements of Alpha Hi-Tech Fuel Limited (the Company), comprising the Balance Sheet as at 31^st March, 2020, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information (hereafter ‘Standalone Ind-AS Financial Statements).

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (hereafter ‘the Act) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31^st March, 2020, and its loss (including other comprehensive income), changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditors Responsibilities segment of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Material Uncertainty Relating to Going Concern

We draw your attention to ‘Note 3 in the Standalone Ind-AS Financial Statements, which indicates that the Company has during the year incurred a loss of Rs. 16,65,659/- (Rs. 70,68,833/-) and has accumulated losses as on 31-3-2020 of Rs. 3,15,77,936/- (Rs. 2,99,12,278/-), as against a Net Worth (i.e. Capital plus other Reserves) of Rs. 3,67,85,060/- (Rs. 3,67,85,060/-), illustrating a substantial erosion in its net worth. These conditions indicate the existence of a material uncertainty that may cast a doubt on the Companys ability to continue as a going concern. Our opinion is not modified in this respect.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the

financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matter described below to be the key audit matter to be communicated in our report.

Fair Value of Land

The Board of Directors is of the opinion that the Fair Value of the immovable property which the Land situated in Gujarat State, is the same as its carrying amount recorded in the books of account of the Company.

Auditors Communication: The Board of Directors had obtained an appraisal dated 10^th April, 2019 from an approved valuer, based on which, the Board of Directors are of the opinion that the Fair Value of the said land as on the reporting date approximate its carrying amount.

Emphasis of Matter

(a) Contingent Liability

We draw your attention to ‘Note 2 in the Standalone Ind-AS Financial Statements, which indicates that the Company has substantial statutory dues in respect of Income tax and Sales tax, which are disputed by the Company with appropriate legal forums. In the event that these statutory dues are crystallised, the Company may not have sufficient funds to meet its obligations.

(b) Bank Accounts

We draw your attention to ‘Note 11 in the Standalone Ind-AS Financial Statements, which indicates that the banks accounts of the Company are inoperative due to ‘account freeze instructions by the Income tax department of Dist. Surendranagar, Gujarat.

(c) Net Assets

We draw your attention to Balance Sheet of the Standalone Ind-AS Financial Statements, which indicates that the Companys liabilities exceed its assets. Also refer "Note 9", for managements evaluations and reasonable approximations of their Fair Value.

Managements Responsibility

The Companys Board of Directors is responsible for matters stated in Section 134(5) of the Companies Act, 2013 (the Act) with respect to the preparation of the said financial statements that give a true and fair view of the financial position, financial performance and cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards specified under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and

presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Board of Directors is responsible for assessing the Companys ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Companys financial reporting process.

Auditors Responsibility

Our objectives are to obtain reasonable assurance about whether the Standalone Ind-AS Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Companies Act, 2013, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.

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

• Conclude on the appropriateness of managements use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Companys ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors report to the related disclosures in the 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 auditors report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative 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 financial statements.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on other legal and regulatory requirements

(1) As required by the Companies (Auditors Report) Order, 2016 (CARO) issued by the Central Government of India in terms of section 143(11) of the Act, we give in ‘Appendix A a statement on the matters specified in paragraphs 3 and 4 of CARO, 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 explanations which to the best of 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 the Company so far as it appears from our examination of those book;

(c) The Balance Sheet, the Statement of Profit and Loss, the Cash Flow Statement and the Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;

(d) In our opinion, the aforesaid Standalone Ind-AS Financial Statements generally comply with the applicable Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

(e) On the basis of the written representations received from the directors and taken on record by the Board of Directors, none of the directors is disqualified as on 31^st March, 2020 from being appointed as a director in terms of Section 164 (2) of the Act.

(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in ‘Appendix B;

(g) With respect to the other matters to be included in the Auditors Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations and extent of information given to us:

(i) The Company has disclosed (refer Point ‘2 of the Standalone Ind-AS Financial Statements) the impact of pending litigations, on its financial position in its financial statements;

(ii) The Company has made provision, as required under any law or accounting standards, for material foreseeable losses (refer Point ‘3 of the Standalone Ind-AS Financial Statements), on long term contracts. The Company has not entered into any derivative contracts;

(iii) There were no amounts, in the opinion of the management of the Company, which were required to be transferred to the Investor Education and Protection Fund by the Company;

For Manoj Mehta & Co

Chartered Accountants FRN: 116681W

(M. M. Mehta)

Proprietor M. No. 44355

Mumbai, 14^th July, 2020 UDIN: 20044355AAAAAY7085

‘Appendix A to the Independent Auditors Report dated 14^th July, 2020

(referred to in paragraph 1 under the heading ‘Other Legal and Regulatory Requirements):

In our opinion and according to the information and explanations given to us or as explained to us, we report that:

(i) Regarding fixed assets:

(a) The Company has maintained basic record showing particulars, including quantitative details and situation of fixed assets.

(b) We are informed that, the management has conducted physical verification of the fixed assets during the year and no material discrepancies were found on such verification (refer Note 9 to the Standalone Ind-AS Financial Statements).

(c) We are informed that the title deeds of immovable properties are held in the name of the Company, which has been relied upon.

(ii) The company has not acquired any inventories during the year, consequently this clause is not applicable.

(iii) The company has not granted any loans, secured or unsecured, to companies, firms, limited liability partnerships or other parties covered in the register specified under section 189 of the Act, consequently sub-clauses (a) to (c) of this clause, are not applicable.

(iv) During the year the Company has not granted any loans to its Directors in terms of section 185 of the Act. Similarly, the Company not granted any loans or provided any guarantee or security for any other person or body corporate, nor made any investment in other body corporate, in terms of section 186 of the Act.

(v) The Company has not accepted any deposits in terms of the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other applicable provisions of the Act and the rules framed there under.

(vi) We are informed that the central government has not prescribed maintenance 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 is generally regular in depositing undisputed statutory dues including provident fund, employees state insurance, sales tax, wealth tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues (as applicable), with the appropriate authorities.

(b) There are no dues of income tax, sales tax (except income tax and sales tax dues referred in ‘Note 2 to the Standalone Ind-AS Financial Statements), wealth tax, service tax, customs duty, excise duty, value added tax or cess, that have not been deposited on account of any dispute.

(viii) The Company has no dues payable to financial institution, bank, government or debenture holders.

(ix) The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) and terms loans during the year.

(x) We are informed that there have been no cases of fraud by the Company or on the Company by its officers or employees noticed or reported during the year, which has been relied upon.

(xi) The Company has not paid any managerial remuneration in terms of section 197 read with Schedule V to the Act.

(xii) We are informed that the Company is not a Nidhi company, which has been relied upon.

(xiii) We are informed that the transactions with related parties (refer ‘Note 4 to the Standalone Ind-AS Financial Statements) are in compliance with sections 177 and 188 of the Act, which has been relied upon. The details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.

(xiv) The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.

(xv) We are informed that the Company has not entered into non-cash transactions with directors or persons connected with him, which has been relied upon.

(xvi) We are informed that the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.

‘Appendix B to the Independent Auditors Report dated 14^th July, 2020 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 Alpha Hi-Tech Fuel Limited (the Company), as of 31^st March, 2020 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.

Managements Responsibility for Internal Financial Controls

The Companys management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI).

These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companys policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.

Auditors Responsibility

Our responsibility is to express an opinion on the Companys internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the “Guidance Note”) and the Standards on Auditing, issued by the Institute of Chartered Accountants of India and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India.

Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditors judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companys internal financial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A companys internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in

accordance with generally accepted accounting principles. A companys internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the companys assets that could have a material effect on financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

As per the information and explanations provided to us and based on our examination of the records in accordance with the essential components of internal controls stated in the said Guidance Note, and further subject to our observations in our report of even date on the standalone financial statements and Appendix A to the said report, the Company has in all material respects, a system of internal checks on its day to day transactions which acts as an informal internal financial control system over financial reporting which, commensurate with its size and the nature of its business is adequate and operating effectively as at 31^st March, 2020.

For Manoj Mehta & Co

Chartered Accountants

(M. M. Mehta)

Proprietor

Mumbai, 14^th July, 2020