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A Infrastructure Ltd.

BSE: 539620 Sector: Industrials
NSE: N.A. ISIN Code: INE534E01020
BSE 00:00 | 14 May 23.50 -0.95
(-3.89%)
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NSE 05:30 | 01 Jan A Infrastructure Ltd
OPEN 23.50
PREVIOUS CLOSE 24.45
VOLUME 328
52-Week high 33.40
52-Week low 10.09
P/E 26.11
Mkt Cap.(Rs cr) 100
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 23.50
CLOSE 24.45
VOLUME 328
52-Week high 33.40
52-Week low 10.09
P/E 26.11
Mkt Cap.(Rs cr) 100
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

A Infrastructure Ltd. (AINFRASTRUCTURE) - Auditors Report

Company auditors report

TO THE MEMBERS OF A INFRASTRUCTURE LIMITED

Report on the Audit of theIndAS Financial Statements Opinion

We have audited the Ind AS financial statements of A Infrastructure Limited (“theCompany”) which comprise the balance sheet as at March 31 2020 and the statementof profit and loss (including other comprehensive income) statement of changes in equityand statement of cash flows for the year then ended and notes to the financialstatements including a summary of the significant accounting policies and otherexplanatory information (herein referred to as “financial statements”).

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by theCompanies Act 2013 (“Act”) in the manner so required and give a true and fairview in conformity with the Indian Accounting standards specified under section 133 of theAct read with the Companies (Indian Accounting Standards) Rules 2015 as amended (the IndAS) and other accounting principles generally accepted in India of the state of affairsof the Company as at March 312020 and the profit and total comprehensive income changesin 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) specifiedunder Section 143(10) of the Act. Our responsibilities under those standards(SAS) arefurther described in the Auditor's Responsibilities for the Audit of the FinancialStatements section of our report. We are independent Auditor of the Company in accordancewith the Code of Ethics issued by the Institute of Chartered Accountants of India(ICAI)together with the ethical requirements that are relevant to our audit of the financialstatements under the provisions of the Act and the Rules thereunder and we have fulfilledour other ethical responsibilities in accordance with these requirements and the (ICAI's)Code of Ethics. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing 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 becommunicated in our report.

Description of Key Audit Matter

Revenue recognition (refer note No. 1 (10) to the Financial Statements)

Key Audit Matter How our audit addressed the Key Audit Matter
Revenue Recognition Revenue from the sale of goods (hereinafter referred to as “Revenue”) is recognised when the Company performs its obligation to its customers and the amount of revenue can be measured reliably and recovery of the consideration is probable. The timing of such recognition in case of sale of goods is when the control over the same is transferred to the customer which is mainly upon delivery. Principal Audit Procedures
Our audit approach was a combination of test of internal controls and substantive procedures including:
• Assessing the appropriateness of the Company's revenue recognition accounting policies in line with Ind AS 115 (“Revenue from Contracts with Customers”) and testing thereof.
• Evaluating the integrity of the general information and technology control environment and testing the operating effectiveness of key IT application controls.
The timing of revenue recognition is relevant to the reported performance of the Company. The management considers revenue as a key measure for evaluation of performance. There is a risk of revenue being recorded before control is transferred.
• Evaluating the design and implementation of Company's controls in respect of revenue recognition.
• Testing the effectiveness of such controls over revenue cut off at year-end.
• Testing the supporting documents for sales transactions recorded during the period closer to the year end and subsequent to the year end including examination of credit notes issued after year end to determine whether revenue was recognised in the correct period.
• Performing analytical procedures on current year revenue based on monthly trends and where appropriate conducting further enquiries and testing.
Accuracy of recognition measurement presentation and disclosures of revenues and other related balances in view of adoption of Ind AS 116 “Leases”
Ind AS 116 introduces a new lease accounting model wherein lessees are required to recognise a right-of-use (ROU) asset and a lease liability arising from a lease on the balance sheet unless the lease term is 12 months or less or the underlying asset has a low value. The lease liabilities are initially measured by discounting future lease payments during the lease term as per the contract/ arrangement. Adoption of the standard involves significant judgements and estimates including determination of the discount rates and the lease term. Our audit procedures on adoption of Ind AS 116 include:
• Assessed and tested new processes and controls in respect of the lease accounting standard (Ind AS 116).
• Assessed the Company's evaluation on the identification of lease based on the contractual agreements and our knowledge of the business.
• Involved our specialists to evaluate the reasonableness of the discount rates applied in determining the lease liabilities
Additionally the standard mandates detailed disclosures in respect of transition. • Upon transition as at 1 April 2019:
• Evaluated the method of transition and related adjustments.
As described in Note 13 to the financial statements the Company has adopted Ind AS 116 Leases (Ind AS 116) in the current year. The application and transition to this accounting standard is complex and is an area of focus in our audit since the Company's has a large number of leases with different contractual terms • Tested completeness of the lease data by reconciling the Company's operating lease commitments to data used in computing ROU asset and lease liabilities.
• On a statistical sample we performed the following procedures:
• Assessed the key terms and conditions of lease with the underlying lease contracts; and
• Evaluated computation of lease liabilities and challenged the key estimates such as discount rates and the lease term.
• Assessed and tested the presentation and disclosures relating to Ind AS 116 including disclosures relating to transition.

Emphasis of Matter

We draw attention to note no. 57 of the financial statements which explains themanagement's assessment regarding the estimated impact of COVID-19 pandemic on thefinancial statements for the year ended 31st March 2020. Further the company willcontinue to closely monitor any material changes arising from future economic conditionsand impact on its business.

Our opinion is not modified in respect of this matter.

Other Matter

Due to the COVID-19 pandemic nationwide lockdown and other travel restrictions areimposed by the Government/local administration hence the audit processes were carriedout electronically by remote access. The necessary records were made available by themanagement through digital medium and were accepted as audit evidence while reporting forthe current period.

Our opinion is not modified in respect of this matter.

Information Other than the Financial Statements and Auditors Rs Report Thereon

The Company's management and Board of Directors are responsible for the otherinformation. The other information comprises the information included in the Company'sannual report but does not include the financial statements and our auditors Rs reportthereon. Our opinion on the financial statements does not cover the other information andwe do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is a material misstatement of this other information weare required to report that fact. We have nothing to report in this regard.

Management's Responsibility for the Financial Statements

The Company's management and Board of Directors are responsible for the matters statedin Section 134(5) of the Act with respect to the preparation of these financial statementsthat give a true and fair view of the state of affairs profit and other comprehensiveincome changes in equity and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards (Ind AS)specified under Section 133 of the Act. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

In preparing the financial statements management and Board of Directors areresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

The Board of Directors is also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial 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 financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of theAct we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls with reference to financial statements in place andthe operating effectiveness of such controls.

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

Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe 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 auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

Evaluate the overall presentation structure and content of the financial statementsincluding the disclosures and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies 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 significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditors Rs report unless law or regulation precludes public disclosure about the matteror when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors Rs Report) Order 2016 (“theOrder”) issued by the Central Government in terms of Section 143 (11) of the Act wegive in the ‘Annexure A” a statement on the matters specified in paragraphs 3and 4 of the Order to the extent applicable.

(A) 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 bestof 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 theCompany so far as it appears from our examination of those books.

c) The balance sheet the statement of profit and loss (including other comprehensiveincome) the statement of changes in equity and the statement of cash flows dealt with bythis Report are in agreement with the books of account.

d) In our opinion the aforesaid financial statements comply with the Ind AS specifiedunder Section 133 of the Act.

e) On the basis of the written representations received from the directors as on April12020 taken on record by the Board of Directors none of the directors is disqualified ason March 312020 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 with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate Report in “Annexure B”.

g) With respect to the matter to be included in the Auditors Rs Report under Section197(16) of the Act:

In our opinion and according to the information and explanations given to us theremuneration paid by the Company to its directors during the current year is in accordancewith the provisions of Section 197 of the Act. The remuneration paid to any director isnot in excess of the limit laid down under Section 197 of the Act. The Ministry ofCorporate Affairs has not prescribed other details under Section 197(16) of the Act whichare required to be commented upon by us.

h) With respect to the other matters to be included in the Auditors Rs Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations as at March 31 2020 onits financial position in its financial statements - Refer Note 44 (i)(a) to the financialstatements;

ii. The Company did not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses.

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

FOR K. N. GUTGUTIA & CO.
Chartered Accountants
Firm Registration Number 304153E
Sd/-
K. C. SHARMA
Date : 7th July 2020 Partner
Place : New Delhi Membership No. 50819
UDIN: 20050819AAAADC9745

ANNEXURE ‘A Rs TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph I of Report on other legal and Regulatory Requirements Rssection of our report of even date)

I. a) The company has maintained proper records showing full particulars includingquantitative details and situations of Property Plant and Equipments.

b) The Property Plant and Equipments were physically verified during the year by themanagement in accordance with a regular program of verification which in our opinionprovides for physical verification of all Property Plant and Equipments at reasonableintervals. According to the information and explanation given to us no materialdiscrepancies were noticed on such verification.

c) According to the information and explanations given to us and the record examined byus and based on the examination of the registered sale deed/transfer deed/conveyance deedprovided to us we report that the title deeds comprising all the immovable propertiesof buildings which are free hold are held in the name of the company as at the balancesheet date.

II. As explained to us inventories were physically verified during the year by themanagement at reasonable intervals except for inventories lying with third parties whereconfirmations of inventories held by such third parties have been received and no materialdiscrepancies were noticed on physical verification.

III. a) The Company has granted unsecured loans to companies firms Limited LiabilityPartnerships or other parties covered in the register maintained under Section 189 of thecompanies Act 2013 which is not prejudicial to the interest of the company.

b) The schedule of repayment of principal and interest of the above loan has beenstipulated and the company is regular in receipt of the same.

d) There is no amount overdue of more than 90 days in respect of recovery of principaland interest of the above loan.

IV. In our opinion and according to the information and explanation given to us thecompany has complied with the provisions of section 185 and 186 of the Companies act 2013in respect of making loans investments and guarantees as applicable.

V. The company has not accepted any deposit from public under Section 73 to 76 and anyother relevant at provisions of the Companies Act 2013 during the year. Therefore theprovisions of clause (v) of the Companies (Auditor Report) Order 2016 is not applicable.

VI. According to the information and explanations given to us in our opinion thecompany has prima facie made and maintained the prescribed cost records pursuant to thecompanies (Cost Records and Audit) Rules 2015 as amended and prescribed by the centralgovernment under section (1) of section 148 of the Companies Act 2013.

We have however not made a detailed examination of the cost records with a view todetermine whether they are accurate or complete.

VII. According to the information and explanation given to us in respect of statutorydues:

a) The company has generally been regular in depositing undisputed statutory duesincluding provident fund employees state insurance income tax sales tax service taxcustoms duty excise duty value added tax Goods and Service tax Cess and any othermaterial statutory dues applicable to it with the appropriate authorities.

b) There were no undisputed amount payable in respect of provident fund employeesstate insurance income tax sales tax service tax customs duty excise duty valueadded tax Goods and Service tax Cess and any other material statutory dues in arrearsas at 31st March 2020 for a period of more than six months from the date they becamepayable.

c) Details of dues of income tax sales tax service tax customs duty goods andservice tax and excise duty which have not been deposited as on 31st March 2020 onaccount of disputes. (Refer Annexure -C)

VIII. In our opinion and according to the information and explanations given to us thecompany has not defaulted in the repayment of loans or borrowings to financialinstitutions banks and government. The company has not issued any debentures.

IX. In our opinion and according to the information and explanations given to us theterm loans have been applied by the company for the purposes for which they were raised.The company has not raised monies by way of initial public offer or further public offer(including debt instruments).

X. Based upon the audit procedures performed for the purpose of reporting the true andfair view of the financial statements and as per the information and explanations given bythe management we report that no fraud by the company and fraud on the company by itsofficers or employees has been noticed or reported during the course of audit.

XI. The managerial remuneration has been paid or provided by the company in accordancewith the requisite approvals mandated by the provisions of section 197 read with scheduleV to the Companies Act 2013.

XII. The company is not a Nidhi company and hence reporting under clause (xii) of theCompanies (Auditors Report) Order 2016 is not applicable.

XIII. In our opinion and according to the information and explanations given to us thecompany is in compliance with section 177 and 188 of the Companies Act 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the financial statements etc as required by theapplicable accounting standards.

XIV. During the year the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures and hence Clause XV of theCompanies (Auditor's Report) Order 2016 is not applicable.

XV. During the year the company has not entered into any non cash transactions withits directors or persons connected with him and so clause (xv) of the Companies (AuditorsReport) Order 2016 is not applicable.

XVI. The company is not a non-banking financial company and hence the company is notrequired to be registered under section 45-IA of the Reserve Bank of India Act 1934.

FOR K. N. GUTGUTIA & CO.
Chartered Accountants
Firm Registration Number 304153E
Sd/-
K. C. SHARMA
Date : 7th July 2020 Partner
Place : New Delhi Membership No. 50819
UDIN: 20050819AAAADC9745

“ANNEXURE B”

ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE IND AS FINANCIALSTATEMENTS OF A INFRASTRUCTURE LIMITED

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act2013 (“the Act”)

We have audited the Internal Financial Controls over financial reporting of AInfrastructure Limited (“the Company”) as of March 312020 in conjunction withour audit of the Ind AS financial statements of the Company for the year ended on thatdate.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial 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 responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Auditors Rs Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the “Guidance Note”) and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the Ind AS financial statements whether due to fraud or error.

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

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of Ind AS financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of Ind AS financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorizations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the Ind AS financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting 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 financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial 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 the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 312020 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

FOR K. N. GUTGUTIA & CO.
Chartered Accountants
Firm Registration Number 304153E
Sd/-
K. C. SHARMA
Date : 7th July 2020 Partner
Place : New Delhi Membership No. 50819
UDIN: 20050819AAAADC9745

ANNEXURE-C FOR F.Y. 2019-20

Nature of Dues Amount Period to which the amount relates Authority where the dispute is pending
Excise Duty 1102.00 December 2003 to March 2006 CESTAT New Delhi
Service Tax 134.95 2013-2014 CESTAT New Delhi (ahmedabad office)
Service Tax 25.57 April 2011 to March 2015 CESTAT New Delhi
Work Contract Tax 34.60 2004-2005 Gujarat VAT Tribunal Ahmedabad
Work Contract Tax 95.27 2005-2006 Gujarat VAT Tribunal Ahmedabad
Total 1392.39

*Net of Tax deposited including the payment which will be made before filling of theReturn of Income

.