Alphageo (India) Ltd Directors Report.

To

The Members of

ALPHAGEO (INDIA) LIMITED

Report on the Audit of the Standalone Financial Statements

Qualified Opinion

We have audited the accompanying standalone financial statements of ALPHAGEO (INDIA) ("the Company"), which comprise the Balance at March 31, 2020,and the Statement of Profit (including Other Comprehensive Income), the of Cash Flows and the Statement of Changes for the year then ended, and a summary of accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us, except for the possible effects of the matter described in the

Basis for Qualified standalone financial statements give the information required by the Companies Act, 2013 ("the Act") the manner so required and give a true and fair in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs the Company as at March 31, 2020, and its loss, comprehensive income, its cash flows and the changes in equity for the year ended on that date.

Basis for Qualified Opinion

As mentioned in Note No.40 to the Financial Statements, the company was subjected to the proceedings under section 132 of the Income Tax Act. As per the information LIMITED and explanations given to us by the Management, Sheet consequential impact of the search proceedings, if any, as are presently unascertainable and no provision has beenand Loss made in the standalone Financial Statements. in Equity We conducted our audit in accordance with the significant Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditors Responsibility 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 Opinion section below, the aforesaid issued by the Institute of Chartered Accountants of in India (ICAI) together with the ethical requirements that view are relevant to our audit of the standalone financial statements under the provisions of the Act and the the Rules made thereunderand we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAIs Code of Ethics. We believe that the audit evidence obtained by us is sufficient and of total appropriate to provide a basis for our qualified opinion on the standalone financial statements.

Emphasis of Matter

We draw attention to Note 29(D) of the Standalone Financial Statement , which describes the uncertainties due to the outbreak of COVID-19 pandemic and the managements evaluation of the same on the standalone financial statements. In view of these uncertainties, the impact on the Companys operations is significantly dependent on future developments.

Our opinion is not modified in respect of this matter.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. In addition to the matter described in the Basis for Qualified Opinion section of our report, we have determined the matters described below to be the key audit matters to be communicated in our report.

Sr. No. Key Audit Matter Auditors 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 Companys 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. We also considered the historical accuracy of estimates made by management.
As per the standard, Company is required to recognise the the transaction price, an entity is required to consider the effects of all of the following: We further challenged managements contract risk assessments by enquiries, on the and review of correspondence with customers where available.
• Variable consideration
• 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
Estimated Liquidated damages are critical estimate to determine the variable consideration. This estimate has an inherent uncertainty as the deductions will be impacted based work to be executed in future in accordance with the contract. Refer Notes 18.1 to the Standalone financial statements.

Information Other than the Financial

Statements and Auditors Report Thereon

• The Companys Board of Directors is responsible for the other information. The other information comprises the information included in the

Management Discussion and Analysis, Report including Annexures to Boards

Corporate Governance and Shareholders Information, but does not include the standalone financial statements and our auditors report thereon. These reportscomprising other informationareexpected to be made available to us after the date of this auditors report.

Report,

• Our opinion on the standalone financial statements does not cover the other information and will notexpress any form of assurance conclusion thereon.

• In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or knowledge obtained during the course of our or otherwise appears to be materially misstated.

• When we read the Management Discussion and Analysis, Boards Report including Annexures to Boards Report, Corporate Governance and Shareholders Information , if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance as required under SA 720 ‘The Auditors responsibilities Relating to Other Information.

Managements Responsibility for the Standalone Financial Statements

The Companys Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the AS and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance the provisions of the Act for safeguarding the assets 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 standalone financial statement that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the standalone financial statements, 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 management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. our Those Board of Directors are also responsible for audit overseeing the Companys financial reporting process. .

Auditors 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 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 SAs 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 standalone financial statements.of

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

• Identify and assess the risks of material with misstatement of the standalone financial of 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 of 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 financial control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of we are also responsible for expressing our on whether the Company has adequate financial controls system in place and the effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the 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 Companys ability to continue as a going concern If we conclude that a material uncertainty we are required to draw attention in our report to the related disclosures in the standalone 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 standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the standalone financial statements that, individually in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of standalone financial statements may be influenced We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work evaluating the results of our work; and (ii) to evaluate effect of any identified misstatements in the financial statements.

We communicate with those charged with governance regarding, among other matters, the planned scope andAct, timing of the audit and significant audit findings, opinion including any significant deficiencies in internal control internal that we identify during our audit. operating 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 standalone 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 Section 143(3) of the Act, based on our audit we report that:

a) We have sought and except for the matter described in the Basis for Qualified Opinion section above, obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of or our audit. b) Except for the possible effects of the matter described in the Basis for Qualified Opinion . section above,in our opinion, proper books of account as required by law have been kept in by the Company so far as it appears from our the examination of those books.

c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the Statement of Cash Flows and Statement of

Changes in Equity dealt with by this Report are in agreement with the books of account.

d) Except for the possible effects of the matter(s) described in the Basis for Qualified Opinion section above, in our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under Section 133 of the Act.

e) The matter described in the Basis for Qualified Opinion section above, in our opinion, may have an adverse effect on the functioning of the

Company.

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

g) With respect to the adequacy of the financial controls over financial reporting Company and the operating effectiveness such controls, refer to our separate "Annexure A". Our report expresses Unmodified opinion on the operating effectiveness of the

Companys internal financial controls financial reporting.

h) With respect to the other matters to be in the Auditors Report in accordance with requirements of section 197(16) of the Act, amended,

In our opinion and to the best of our and according to the explanations given to the remuneration paid by the Company to directors during the year is in accordance the provisions of section 197 of the Act.

i) 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, as amended in our opinion and to the best of our information and according to the explanations given to us:

i. Except for the possible effect of the matter describe in the Basis of Qualified Opinion Section above, there were no pending litigations which would impact its financial position of the company.

ii. The Company has made provision, as required under the applicable law or 31, accounting standards, for material foreseeable losses, if any, on long-March term contracts, the company doesnt have in derivative contracts;

iii. There has been no delay in transferring amounts, required to be transferred, to the of the Investor Education and Protection Fund by of the Company. Report in

2. As required by the Companies (Auditors 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 specified in paragraphs 3 and 4 of the Order. the

ForMAJETI & CO

Chartered Accountants Firms Registration No: 015975S

Kiran Kumar Majeti

Partner

Membership No:220354 UDIN No: 20220354AAAAAV8134 us, its with Place: Hyderabad Date: June 29, 2020.

Annexure "A" to the Independent Auditors Report

(Referred to in paragraph 1(g) under ‘Report on Other Legal and Regulatory Requirements section of our report of even date)

Report on the Internal Financial Controls

Over Financial Reporting under Clause

(i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")

We have audited the internal financial controls over financial reporting of ALPHAGEO (INDIA) LIMITED ("the Company") as of March 31, 2020 in conjunction with our audit of the standalone Ind AS 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". 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 Companies Act, 2013.

Auditors Responsibility

Our responsibility is to express an opinion on the Companys internal financial controls over financial reporting of the Company 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") issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. 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 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 management and directors of the company; and 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 the 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

In our opinion, to the best of our information and according to the explanations given to us the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2020, based on "the criteria for internal financial control over financial reporting established by the Company considering the essential components of internal control stated in the

Guidanceof Note on Audit of Internal Financial Controls (3) Over Financial Reporting issued by the Institute of Chartered Accountants of India".

ForMAJETI & CO

Chartered Accountants Firms Registration No: 015975S

Kiran Kumar Majeti

Partner

Membership No:220354 UDIN No: 20220354AAAAAV8134

Place: Hyderabad Date: June 29, 2020.

Annexure B to Independent Auditors Report

(Referred to in paragraph 2 under ‘Report on Other Legal and Regulatory Requirements section of our report of even date) i. (a) The Company is maintaining proper records showing full particulars, including quantitative details and situation, of fixed

(b) The fixed assets of the Company have been physically verified by the Management during the year and no material discrepancies have been noticed on such verification. In our opinion, the frequency of verification is reasonable.

(c) The title deeds of immovable properties, disclosed in Note 3 on fixed financial statements, are held in the name of Company.

ii. The physical verification of inventory been conducted at reasonable intervals by the Management during the year. The discrepancies verifi of inventory as noticed on physical compared to book records were not material and have been appropriately dealt with in the books of accounts.

iii. The Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Act. Therefore, the provisions of Clause 3(iii), (iii)(a), (iii)(b) and (iii)(c) of the said Order are not applicable to the Company.

iv. The Company has not granted any loans or made any investments, or provided any assets. guarantees or security to the parties covered under Section 185 and 186. Therefore, the provisions of Clause 3(iv) of the said Order are not applicable to the Company.

v. The Company has not accepted any deposits from the public within the meaning of Sections 73, 74, 75 and 76 of the Act and the Rules as framed there under to the extent notified. assets to the the vi. The Central Government of India has not specified the maintenance of cost records under sub-section (1) of Section 148 of the Act for any of the products of the Company.

vii. (a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is generally regular in depositing undisputed statutory dues in respect of Goods and Service tax (GST) though there has been slight delay in a few cases, and is regular depositing undisputed statutory dues, including provident fund, employees state insurance, income tax, duty of customs, cess and other material statutory dues as applicable, with the appropriate authorities. As confirmed by the management sales tax, service tax, duty of excise value added tax are not applicable to the company.

(b) According to the information and explanations given to us and the records of the Company examined by us, there are no dues of Goods and Service tax (GST), income-tax, sales-tax, service-tax, duty of customs, and duty of excise or value added tax which have not been deposited on account of any dispute.

viii. According to the records of the Company examined by us and the information and explanation given to us, the Company defaulted in repayment of loans or any financial institution or bank or as at the balance sheet date. There amount raised by the company through the issue of debentures.

ix. The Company has not raised any moneys by way of initial public offer, further public offer (including debt instruments). In our opinion, and according to the information and explanations given to us, the moneys raised by way of term loans have been applied for purposes for which they were obtained.

x. During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of material fraud by the Company or on the Company by its officers or employees, noticed or reported during the year, nor have we been informed of any such case by the Management.

xi. The Company has paid/ provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of

Section 197 read with Schedule V to the

xii. As the Company is not a Nidhi the Nidhi Rules, 2014 are not applicable provisions of Clause 3(xii) of the Order are not applicable to the Company.

xiii. The Company has entered into transactions with related parties in compliance with the provisions of Sections 177 and 188 of the Act.

The details of such related party transactions have been disclosed in the financial statements as required under Indian Accounting Standard (IND AS) 24, Related Party Disclosures specified not under Section 133 of the Act. to xiv. The Company has not made any preferential no allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the provisions of Clause 3(xiv) of the Order are not applicable to the Company.

xv. The Company has not entered into any non cash transactions with its directors or persons connected with him. Accordingly, the provisions of Clause 3(xv) of the Order are not applicable to the Company.

xvi. The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, the provisions of Clause 3(xvi) of the Order are not applicable to the Company.

For MAJETI & CO

Chartered Accountants Firms Registration No: 015975S

Kiran Kumar Majeti

Partner

Membership No:220354 UDIN No: 20220354AAAAAV8134

Act.

Company Place: Hyderabadand Date: June 29, 2020.it, the