To

The Members,

The Directors are pleased to present 31st Annual Report along with the Audited Financial Statements, both standalone and consolidated and the report on Company’s business and operations for the financial year ended March 31, 2018.

Financial Results - An Overview

The Company’s financial performance for the year ended March 31, 2018 is summarized below:

(Rs. in lakhs)

Indian Accounting Standards

Ministry of Corporate Affairs (MCA) has vide its notification dated February 16, 2015 notified the applicability of Indian Accounting Standards (“Ind AS”) for listed companies and certain class of companies, for the accounting periods beginning on or after April 1, 2016 / April 1, 2017 whichever is applicable, with the comparatives of the previous accounting year.

The Company has adopted Indian Accounting Standards with effect from April 1, 2017 with transition date of April 1, 2016 and accordingly the financial statements for the year ended March 31, 2018 along with the comparatives have been prepared in accordance with the recognition and measurement principles stated in respective applicable Indian Accounting Standards, prescribed under Section 133 of the Companies Act, 2013 read with the relevant rules issued thereunder.

Operational and Financial Performance

The year 2017-18 was another successful and eventful year, both operationally and financially for the Company.

Indian Operations

During the year, the Company has successfully executed the 3D Seismic Data Acquisition contract of ONGC in the carpet area of KG Basin well within the contractual time frame. The expertise and experiences gained over 27 years of operations has made it possible for the company to simultaneously work with 15 crews at different parts of the country under the National Seismic Programme of Government of India for conducting 2D seismic data acquisition.

The efforts in conducting operations seamlessly, has resulted in earning revenue from operations of RS.42944 lakhs for the current year against RS.29656 lakhs for 2016-17, higher by 44.80% year on year. The Profit before tax for the current year is RS.8669 lakhs against RS.7292 lakhs for 2016-17, higher by 18.88%. The Profit After Tax for 2017-18 is RS.5623 lakhs against RS.4804 lakhs for 2016-17, higher by 17.05%. The Shareholders funds as on March 31, 2018 have increased to RS.20587 lakhs from RS.14319 lakhs as on March 31, 2017.

The company, has been awarded a contract for 3 D Seismic Data acquisition in carpet area of Cambay Basin from Oil and Natural Gas Corporation Ltd valued at RS.131.00 crores (net of taxes). At the end of the financial year 2017-18, the executable orders on hand is estimated at, net of taxes, of RS.827 Crores. Your directors are of the opinion, having sizable executable orders on hand, that the Company will continue to achieve similar operational and financial performances in the forthcoming year.

Global Operations

On a consolidated basis, the operational income for 2017-18 is RS.42944 lakhs against RS.30589 lakhs in the previous year registering a growth of 40.39% over the previous year. The Profit before tax for 2017-18 is 8526 lakhs against RS.7585 lakhs in the previous year. The Profit after tax for the current year stood at RS.5448 lakhs against RS.5054 lakhs in the previous year. The shareholders’ funds as on March 31, 2017 of RS.17392 lakhs have enhanced to RS.23355 lakhs as on March 31, 2018. The subsidiaries of the group are making its best efforts for obtaining viable contracts for providing geophysical services.

Your directors believe that the continuing endeavours of the Company to diversity its services besides hydrocarbon exploration into spectrum of other forms of geophysical services may result favourably in the forthcoming financial year.

Share Capital

During the year, the Company has issued and allotted 2,45,000 Equity Shares of RS.10/- each at a premium of RS.503.62/- on conversion of equivalent number of warrants on exercising the option for conversion by the warrant holders. The Company does not have outstanding warrants or any convertible instruments as on March 31, 2018.

The proceeds received at the time of conversion during the year 2017-18 have been utilized for the objects of the issue and there is no amount unutilized with the Company.

Transfer to Reserves

The Company has not transferred/ appropriated any amount to the General Reserve retaining the entire surplus for the year ended March 31, 2018 as Balance in Profit and Loss Account.

Material changes and commitment, if any, affecting financial position of the Company from the end of the financial year till the date of this Report

There has been no material change and commitment, affecting the financial performance of the Company which occurred between the end of the financial year of the Company to which the financial statements relate and the date of this Report.

Dividend

The Board of Directors are pleased to recommend a dividend at the rate of RS.8/- per Equity share of RS.10/-each for the financial year 2017-18, for the approval of the Members at 31st Annual General Meeting of the Company. The Dividend, if approved will be paid to those shareholders whose names appear on the register of the members of the Company as on 04th September 2018.

Unclaimed Dividend of the previous years

Section 124 of the Companies Act 2013 read with Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules 2016 (‘the Rules’) mandates the Companies to transfer dividend that has remained unpaid/unclaimed for a period of seven years in the unpaid dividend account to the Investor Education and Protection Fund (IEPF).

The details of the unpaid/ unclaimed dividend lying with the Company are available on the website of the Company at the web link: http://alphageoindia.com/ Unclaimed%20 Dividends.htm

Transfer to Investor Education and Protection Fund (“IEPF”):

a) Transfer of Unclaimed Dividend to IEPF

Pursuant to the provisions of Section 124 of Companies Act, 2013, read with IEPF (Accounting, Audit, Transfer and Refund) Rules, 2016, as amended from time to time, dividends which remain unpaid or unclaimed for a period of seven years are being transferred by the company to the Account of Investor Education and Protection Fund (“IEPF”) Authority established by the Government of India.

Accordingly, the unclaimed dividend pertaining to the financial year 2009-10 has been transferred to the Investor Education and Protection Fund.

b) Transfer of Shares to IEPF

Section 124(6) of Companies Act, 2013, read with IEPF (Accounting, Audit, Transfer and Refund) Rules, 2016, mandates transfer of underlying shares in respect of which dividend has not been paid or claimed for seven consecutive years or more in the name of Investor Education and Protection Fund.

Pursuant to the above rule, the Company identified 72,894 equity shares that were liable to be transferred to the Account of the IEPF Authority and transferred those equity shares to IEPF Account during the year under review after completing the procedures and corporate actions required to transfer such shares to IEPF Authority. The details of shares transferred to IEPF are displayed on the website of the Company. The shareholders whose shares are transferred to the IEPF Authority can claim their shares from the Authority by following the Refund Procedure as detailed on the website of IEPF Authority http://iepf.gov.in/IEPFA/refund.html.

Management Discussion and Analysis Report

Management Discussion and Analysis Report for the year under review as stipulated in Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, is presented as a separate section forming part of the Annual Report.

Subsidiaries

Foreign Subsidiaries:

The Company has one 100% owned foreign Subsidiary, Alphageo International Limited, incorporated in Jebel Ali Free Zone Area in Dubai and one 100% owned First Level Step Down Subsidiary Alphageo DMCC incorporated under Dubai Multi Commodities Center (DMCC) Regulations.

Indian Subsidiaries:

An Indian subsidiary named “Alphageo Marine Services Private Ltd” has been incorporated on October 25, 2017 primarily for providing marine survey services including shallow water, ocean bottom, transition zone in the field of hydrocarbons; processing and interpretation of such survey data and also for providing aerial geophysical services in the field of hydrocarbons. The Company is yet to start effective business operations.

A Statement containing salient feature of the Financial and Operational information of the Subsidiaries is provided in Form AOC-1 as Annexure-I to this report. The Consolidated Financial Statements presented by the Company include the financial results of these Subsidiary Companies.

Pursuant to Section 136 of the Companies Act, 2013, the Financial Statements of the Subsidiaries are available on the website of the Company and also will be made available upon the request by any member of the Company. The policy for determining “Material Subsidiary” framed by the company in terms of Regulation 16(c) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is available on the Company’s website at the following link: http:// www.alphageoindia.com/Policies.htm

Post March 31, 2018 another Indian Subsidiary named “Alphageo Offshore Services Private Ltd” has been incorporated on April 26, 2018 for undertaking commercial activities relating to providing geophysical services for offshore and transition zones, and general offshore related services for mining and hydrography, which is yet to start its operations.

Change in the nature of business

During the year, there was no change in the nature of business of the Company or any of its subsidiaries.

Cost Records

The Central Government has not prescribed the maintenance of cost records under sub-section (1) of section 148 of the Companies Act, 2013 for the services rendered by the Company.

Consolidated Financial Statements

The Consolidated Financial Statements of the Company and its Subsidiaries for the financial year ended March 31, 2018 have been prepared in compliance with the Indian Accounting Standards notified under Section 133 the Companies Act, 2013 (“Act”), Section 129(3) of Companies Act, 2013 on consolidated financial statements and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and the same together with Auditors’ Report thereon form part of this Report.

Statutory Auditors

In pursuance of the provisions of section 139 and other applicable provisions of the Companies Act, 2013 read with Companies (Audit and Auditors) Rules, 2014 and the terms of appointment approved at 30th Annual General Meeting of the Company, M/s Majeti & Co. Chartered Accountants, Hyderabad, have been appointed as Statutory Auditors of the Company for a term of 5 (five) consecutive years from the conclusion of 30th Annual General meeting till the conclusion of 35th Annual General Meeting of the Company.

In accordance with the Amendment to the provisions of Section 139 by the Companies Amendment Act 2017, notified on May 7, 2018 by the Ministry of Corporate Affairs, the appointment of Statutory Auditors is not required to be ratified at every Annual General Meeting.

Audit Report on Financial Statements

The Audit Report issued by the Statutory Auditors on financial statements, standalone and consolidated, for the year ended March 31, 2018 does not contain any qualifications, reservations or adverse remarks, which call for any further explanation.

Secretarial Auditors

M/s. D. Hanumanta Raju & Co., Practicing Company Secretaries, Hyderabad were appointed to conduct the Secretarial Audit of the Company for the year 2017-18 as required under the provisions of Section 204 of the Companies Act, 2013 and rules thereunder. The Secretarial Audit Report issued by them form part of the Annual Report as Annexure-II to the Board’s Report. The Secretarial Audit Report does not contain any reservation, qualification or adverse remark.

Directors and Key Managerial Personnel

Appointments and Re-appointments of Directors:

During the year, Mr. Raju Mandapalli was appointed as an Additional Director of the Company under Independent category with the approval of the Board effective from December 4, 2017. His appointment as Independent Director will be placed in the 31st Annual General Meeting of the Company for the approval of members of the Company.

Retirement by Rotation:

Mr. Rajesh Alla retired by rotation has been re-appointed as Director of the Company at the 30th Annual General Meeting held on 29th September, 2017.

Further, in accordance with the provisions of Section 152 of the Companies Act, 2013 and in terms of the Articles of Association of the Company, Mr. Rajesh Alla is retiring by rotation at the ensuing Annual General Meeting and being eligible, seek re-appointment. The Board recommends the re-appointment of Mr. Rajesh Alla for the approval of the Members at the ensuing Annual General Meeting of the Company.

Change of Designation:

Mr. Dinesh Alla, Managing Director of the Company has been appointed as Chairman of the Company in place of Mr. Z.P. Marshall with effect from December 4, 2017.

Other changes, if any, occurred after the closure of financial year

1. Mr. Z.P. Marshall, an Independent Director of the Company has resigned from the Board of Directors effective from May 18, 2018. He was associated with the company since 20 years and benefitted the company from his guidance, valuable suggestions and insights of the industry during his tenure.

The Board places on record its deep appreciation and gratitude to Mr. Z.P. Marshall for his many years of strong and thoughtful leadership.

2. Mrs. Savita Alla has been reappointed as Joint Managing Director of the Company by the Board of Directors in its meeting held on May 18, 2018 for a period of three years with effect from May 25, 2018.

Particulars of Remuneration to Directors and Key Managerial Personnel:

Particulars of Remuneration to Directors and Key Managerial Personnel as required under section 197(12) of the Act read with Rule 5(1) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 as amended are given in Annexure-III and forms part of this Report.

Changes in Key Managerial Personnel:

During the year, Ms. Deepa Dutta, Associate Member of the Institute of Company Secretaries of India, has been appointed as Company Secretary and Compliance Officer of the Company with effect from December 4, 2017 with approval of the Board in place of Ms. Meenakshi Naag, erstwhile Company Secretary who tendered her resignation effective from November 4, 2017.

Number of Meetings of the Board of Directors:

During the year ended March 31, 2018, the Board of Directors has met four times viz. May 29, 2017, August 4, 2017, December 4, 2017 and February 7, 2018. The details of Meetings of the Board and various Committees of the Board are set out in the Corporate Governance Report which forms part of this report.

Audit Committee

The Audit Committee of the Board, currently headed by an Independent Director as Chairperson meets regularly to discharge its terms of reference effectively and efficiently. During the year, there were no instances where the recommendations of the Audit Committee were not accepted by the Board. The composition, role and functions of the Audit Committee of the Board of Directors of the Company are disclosed in the Report on Corporate Governance, which forms part of this report.

Directors Responsibility Statements as required under Section 134 of the Companies Act, 2013

Pursuant to the requirement under Section 134 of the Companies Act, 2013 with respect to Directors’ Responsibility Statement, it is hereby confirmed that:

i. In the preparation of the Annual Accounts of the Company for the year ended March 31, 2018, the applicable accounting standards read with requirements set out under Schedule III to the Companies Act 2013, have been followed and that there are no material departures from the same.

ii. the Directors have selected such accounting policies and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at March 31, 2018 and of the profit for the year ended on that date;

iii. the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

iv. the Annual Accounts for the year ended March 31, 2018 have been prepared on a going concern basis;

v. internal financial controls have been laid down and such controls are adequate and operating effectively;

vi. the Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating efficiently; and

vii. there are no instances of frauds involving the officers or employees of the Company reported by the Auditor under section 143(12) of the Act during the year ended March 31, 2018.

Particulars of Remuneration to Employees

The details of remuneration to Employees, as required under Rule 5(2) read with Rule 5(3) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 as amended are given in Annexure-IV and form part of this Report.

Board Performance Evaluation

The Companies Act and Listing Regulations relating to Corporate Governance contain provisions on evaluation of the performance of the Board and its Committees as a whole and Directors including Independent Directors, Non-Independent Directors and Chairperson individually. In pursuant thereof, Annual Evaluation of performance of the Board, working of its Committees, contribution and impact of individual directors has been carried out through a questionnaire for peer evaluation on various parameters. The manner in which the evaluation was carried out is explained in the Report on Corporate Governance, which forms part of this report.

Declaration by Independent Directors

Pursuant to the provisions of the Companies Act and Listing Regulations, all the Independent Directors of the company have given their respective declarations stating that they meet the criteria prescribed for independence under section 149(6) of the Act and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and in the opinion of the Board, all the Independent Directors meet the said criteria.

Remuneration Policy

In accordance with the provisions of Section 178 of the Companies Act, 2013 and Part D of Schedule II of SEBI (LODR) Regulations, 2015, a comprehensive policy on Nomination and Remuneration of Directors, Key Managerial Personnel and other employees of the Company has been formulated and the said Policy is available on the website of the company at: http:// alphageoindia.com/Policies.htm

It is affirmed that the appointment and remuneration of Directors, Key Managerial Personnel and all other employees during the year ended March 31, 2018 is in accordance with the Remuneration Policy of the Company.

Particulars of Loans, Guarantees or Investments

During the year under review, the Company has made an Investment of RS.7,40,000/- in Equity Share Capital of the Subsidiary “Alphageo Marine Services Private Ltd”. The details of loans extended to the Subsidiary are given at Note No. 33 to Financial Statements for the year ended March 31, 2018.

Post March 31, 2018, the Company also has made Investment of RS.1,00,000/- in Equity Share Capital of its 100% Subsidiary “Alphageo Offshore Services Private Ltd”.

The Company has not extended any loans, guarantees or investments to any other person or body corporate during the year under review.

Particulars of Contracts or Arrangements with Related Parties

In terms of section 188 of the Companies Act, 2013 and the rules framed thereunder and Regulation 23 of SEBI (LODR) Regulations, 2015, a Policy for dealing with the transactions with Related Parties has been formulated and the same is available on the Company’s website at: http://alphageoindia.com/Policies.htm.

All contracts and transactions entered during the financial year with related parties were in the ordinary course of business and were with the approval of the audit committee and in compliances with applicable provisions of the Act and the SEB (LODR) Regulations 2015. The particulars of such transactions with related parties have been disclosed in the financial statements as required under Ind AS 24 - Related Party Disclosures and as specified under section 133 of the Companies Act 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 are given at Note 38 of Notes on Financial Statements annexed to this Report.

There are no materially significant related party transactions made by the company with the Promoters, Directors and Key Managerial Personnel and other designated persons which may have a potential conflict with the interests of the Company during the financial year.

During the year, there were no contracts or arrangements, or transactions entered into with the related parties other than at arm’s length price and there were no material and significant transactions at arm’s length price with the related parties. Accordingly, there were no transactions during the year ended March 31, 2018 required to be reported in Form AOC-2 of the Companies (Accounts) Rules, 2014.

Corporate Social Responsibility (CSR) Activities

In line with the provisions of Section 135 of the Companies Act 2013, the Company has constituted a committee to formulate, implement and monitor the CSR Policy of the Company. The composition of the CSR Committee is disclosed in the Report of Corporate Governance, forming part of this Report.

The detailed report on CSR initiatives undertaken during the financial year 2017-18 together with the report on CSR activities as required by the Companies (Corporate Social Responsibility Policy) Rules, 2014, are set out in Annexure-V to this Report.

Reasons for not spending the amount earmarked for CSR Activities:

The Company allocated an amount of RS.66.00 Lakhs to be spent on corporate social responsibility (CSR) activities during the year 2017-18. Out of this, the Company spent RS.23.60 Lakhs during the year under review. The unspent amount of RS.42.40 Lakhs has been carried forward for spending in forthcoming years. The Company believes, as a part of CSR Activities, in spending on such activities which really benefit the targeted beneficiaries. The Company is extending its efforts in identifying and supporting more beneficial projects and confident of spending the unspent amount of 2017-18 alongwith the obligated amount for 2018-19 during the financial year 2018-19.

Corporate Governance and Shareholders’ Information

Pursuant to Regulation 34 of the SEBI Regulations, the Report on Corporate Governance for the financial year 2017-18 along with a Certificate issued by a Practising Company Secretaries confirming compliance with the mandatory requirements relating to Corporate Governance as stipulated under Chapter IV of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, is presented as a separate section forming part of the Annual Report, forms an integral part of this report.

Risk Management

The Company continuously identifies, evaluates, monitors and addresses potential business and operational, financial, industrial risks which affects the business activities, functioning and growth of the Company. The risk management framework of the company aimed at effectively mitigating the various risks associated with the company.

The details of the risk management framework and issues related thereto have been explained in the Management Discussion and Analysis Report, which is provided as an annexure to this report.

Internal Financial Controls

The Company has in place adequate internal financial controls with reference to preparation of financial statements and the same are operating efficiently and no deficiencies have been observed during the year under review.

Whistle Blower/Vigil Mechanism

In pursuance of the provisions of Section 177(9) of the Companies Act, 2013, rules made thereunder and Regulation 4 of the SEBI (LODR) Regulations, 2015, your Company has formulated a vigil mechanism which also includes a whistle blower policy to deal with instances of unethical behaviour, actual or suspected, fraud or violation of Company’s Code of Conduct or Ethics Policy.

The Audit Committee of the Board periodically reviews the Whistle Blower Policy. It is hereby affirmed that no personnel of the company has been denied access to the Chairman of the Audit Committee of the Board and that the Policy contains adequate provisions protecting Whistle Blowers from unfair termination and other unfair prejudicial employment practices.

The Whistle Blower Policy is available on the company’s website at: http://www.alphageoindia.com/Policies.htm

Policy on Prevention, Prohibition and Redressal of Sexual Harassment at Work place

As per the requirement of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the Rules made thereunder, your Company has framed a Policy on prevention, prohibition and redressal of sexual harassment at workplace and constituted Internal Complaints Committee having designated members to redress complaints regarding sexual harassment. During the year under review, no complaint of sexual harassment has been reported.

The Policy is available on the Company’s website at: http://www.alphageoindia.com/ Policies.htm

Extract of Annual Return

Pursuant to the provisions of Section 36 of the Companies (Amendment) Act, 2017 notified effective from July 31, 2018 read with Section 92(3) of the Companies Act 2013, the prescribed return is placed on the Company’s website at: http://www.alphageoindia.com/Other_ Information.htm.

Deposits

The Company has not accepted any deposits covered under Chapter V of Companies Act, 2013 and also any other deposit which is not in compliance with the requirements of Chapter V of the Companies Act, 2013.

Employees Stock Option Scheme

Stock option to Employees is being administered under the scheme titled “Alphageo ESOS 2008”. Under this scheme, 235067 stock options are available for granting to Employees and there are no enforceable stock options outstanding as on March 31, 2018.

Conservation of Energy, Technology Absorption, Foreign Exchange Earnings and Outgo

The particulars as prescribed under Section 134(3)(m) of the Companies Act, 2013 read with the Companies (Accounts) Rules, 2014 are:

Significant and Material Orders passed by the Courts / Regulators

During the year, no significant and material orders were passed by the regulators or courts or tribunals on the Company impacting the going concern status of the Company and Company’s operations in future.

Acknowledgment

Your Directors place on record their sincere appreciation for the significant contribution made and services rendered by employees of the Company with dedication and commitment at all levels which has been critical for the Company’s success and for placing the Company preferred service provider in on-land seismic services industry.

Your Directors take this opportunity to thank Clients Bankers, Vendors, Shareholders and Investors at large for their valuable co-operation and continued support.

For and on behalf of the Board

Hyderabad Dinesh Alla

06.08.2018 Chairman and Managing Director