alpha hi tech fuel ltd share price Management discussions

1. Industry Structure and Development

With the fast depleting fossil fuel and growing industry demand for the same, it is evident that nonconventional fuel is going to generate more demand. The binder less technology using recyclable agriculture waste is a boon to agriculture sector in general and rural economy in particular. Increased awareness for the pollution control and fiscal support by classification of the industry under the infrastructure sector, eligible for specific incentives, shall create atmosphere conducive to the use of alternate source of fuel.

2. Opportunities & Threats

The industry is showing healthy sign of growth. The unit being in the vicinity of the source of raw material supply and having access to the consumers around, there is scope for expansion of user base with the enhanced acceptability and convenience of use. Raw material, being biomass, is mainly prone to vagaries of monsoon. Unpredictable movement in the seasonal cycle characterized by periodical drought and/or flood conditions has adverse impact on the consistency in production. Open storage of raw material for moisture evaporation is also subject to associated risks.

3. Product wise Performance

Your Company operates only in one segment, i.e., making Bio-mass briquettes out of agriculture waste.

4. Outlook

Considering buoyancy in the Indian economy and expected growth in GDP, the outlook for the Indian Industry is very bright. Your Company is expected to maintain its growth rate both in terms of improvement in manufacturing techniques by use of economic alternatives and use of efficient raw material mix to match the availability and cost.

5. Risk and Concerns Raw Material Price risk

Alternative and more productive use of agriculture waste and its demand in other sectors can have adverse impact on the fixed price mechanism prevalent in the area together with bad monsoon characterized by lesser agriculture production and change in product preferences by the farmers. Organization and education of producing farmers can ensure availability of raw material at consistent price.

Storage Risk

Open sun drying for raw material and storage of finished product needs protection with preventive measures to safeguard its utility and the purpose. Storage for longer period of time also diminishes its utility and there being no other commercial uses, its realizable value in the market substantially drops.

Geographical Risk

Surrounding area of the factory premises is densely inhabited with residences and public utility places. If the production activity of the Company is carried out at the current factory set up, resistance of the disturbances from the neighboring agglomeration is possible.

Risk of Technology Obsolescence

Briquettes making technology and machine design is characterized by very fast advancing corrections and improvements reducing useful life of the installations at fast pace.

6. Internal Control Systems

The Company has an internal control system in place which is commensurate with the size and nature of its business. The internal control system ensures that all the assets of the Company are safeguarded from loss, damage or disposition. Checks and controls are in place to ensure that transactions are adequately authorized and recorded and that they are reported correctly. The internal control system is supplemented by an extensive program of internal audit by a firm of independent Chartered Accountants and external statutory audit which is periodically reviewed by the management and Audit Committee.

The Audit Committee of the Board regularly reviews compliance with the Companys policies, procedures and statutory requirements in consultation with the Statutory Auditors and the Internal Auditors, who also attend the Audit Committee meetings.

7. Financial Performance with respect to Operational Performance

With the change in management and for re-design of the production routines to secure enhanced operational convenience, the production, which is at halt since, 01.08.2005 is scheduled to commence on its result oriented alignment. To ensure enduring potential, realigned growth strategy is under active consideration of the management.

8. Human Resources and Industrial Relations

With the infusion of professional and pragmatic vision, labour policy is being planned to ensure retention of skill after new recruitments.

Cautionary Statement

This report contains forward looking statement, which may be identified by their use of words like plans, expects, will, anticipates, believes, intends, projects, estimates or otherwise words of similar meaning. All statements that address expectations or projections about the future, including but not limited to statements about the Companys strategy for growth, expenditures and financial results, are forward looking statements. Forward looking statements are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realized. The Companys actual results, performance or achievements could thus differ materially from those projected in any such forward looking statements. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent developments, information or events.

Place: Lakhtar	By Order of the Board of Directors
Date: 14th July,2020.
Regd. Office:
Station Road,	Haren Shah
Lakhtar, Dist. Surendranagar,	Director
Gujarat 382775	(DIN: 00971250)