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Akash Infraprojects Ltd.

BSE: 538409 Sector: Infrastructure
NSE: AKASH ISIN Code: INE737W01013
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Akash Infraprojects Ltd. (AKASH) - Auditors Report

Company auditors report

To

The Members of

Akash Infra - Projects Limited

Gandhinagar

Report on the Audit of Standalone Financial Statements:

Opinion

We have audited the accompanying standalone financial statements of Akash InfraProjects Limited ("the Company") which comprise the Standalone BalanceSheet as at March 312020 and the statement of Profit and Loss(including OtherComprehensive Income) the Statement ofChanges in Equity Cash Flow Statement for the yearthen ended and notes to the standalone financial statements including a summary ofsignificant accounting policies and other explanatory information(hereinafter referred toas "the standalone financial statements").

In our opinion and to the best of our information and according to the explanationsgiven to us theaforesaid standalone financial statementsgive the information required bythe Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity withthe Indian Accounting Standards prescribed under thesection 133 of the Act read with the Companies (Indian Accounting Standards) Rules2015as amended ("Ind AS") and other accounting principles generally accepted inIndia of the state of affairs (financial position) of theCompany as at 31 st March 2020the profit (financial performance including other comprehensive income) changes in theequity and its cashflows for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing ("SAs") specified under section 143 (10) of the Act. Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of theStandalone Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethicsissued bythe Institute of Chartered Accountants of India ("ICAI") together withthe ethical requirements that are relevant to our audit of the standalonefinancialstatements under the provisions of the Act and the Rules made thereunder and we havefulfilled our other ethical responsibilities inaccordance with these requirements and theICAI's Code of Ethics. We believe that the audit evidence obtained by us is sufficientandappropriate to provide a basis for our opinion on standalone financial statements.

Key Audit Matters:

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financialstatements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide separateopinion on these matters.

The key audit matters How the matter was addressed in our audit
Revenue recognition:
The Company executes the work as per work order of the customer. Most of the customers are State Government/ Panchayats/ Municipal corporations/ AUDA / GUDA.Measurement of the work (MB) being recorded by concerned authorities on the request of the Company as the work progresses. Our audit procedures where such that we have verified each and every Contract and the terms and condition of the same. We have in accordance with the terms and condition ascertained the work completed and the revenue recognised thereto.
After recording of work in MB bill is being raised. Revenue being booked at this stage Where ever the work is incomplete the work in progress is measured based on the MB sheets.
Note:- In the case suppose though the work being executed but no MB is being recorded then this would be shown as work in progress. These have been verified on sample basis. All the documentation has had a thirdparty mark up.
The work contracts are reconciled with the measurements for which invoices are raised and the work-in-progress where execution of the contracts has begun.

Information other than the Standalone Financial Statements and Auditors' Reportthereon.

The Company's management and Board of Directors areresponsible for the otherinformation. The other informationcomprises the information included in the Company'sannualreport but does not include the financial statements and ourauditors' reportthereon.

Our opinion on the standalone financial statements does notcover the other informationand we do not express any formof assurance conclusion thereon.

In connection with our audit of the standalone financialstatements our responsibilityis to read the other informationand in doing so consider whether the other informationismaterially inconsistent with the standalone financialstatements or our knowledge obtainedin the audit orotherwise appears to be materially misstated. If based on thework we haveperformed we conclude that there is a materialmisstatement of this other information weare required toreport that fact. We have nothing to report in this regard.

Management's and Board of Directors'Responsibility for the Standalone FinancialStatements:

The Company's Management and Board of Directors are responsible for the matters statedin Section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these Standalone Financial Statement that give a true and fair view of thefinancial position financial performance (including other comprehensive income) changesin equityand cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the Standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the standalone financial statements theManagement and the Board ofDirectors are responsible for assessing the Company'sability to continue as a goingconcern disclosing as applicable matters related to going concern and using the goingconcern basis ofaccounting unless management either intends to liquidate the Company or tocease operations or hasno realistic alternative but to do so.

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

Auditor's Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements asa whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceisa high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expectedto influence the economic decisions of userstaken on the basis of these standalone 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 standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under Section 143(3)(i)of the Act weare also responsible for expressing our opinion on whether the company hasadequate internal financial controls with reference to standalone financial statements inplace and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by managementand the Board ofDirectors.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidenceobtained whether a materialuncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue asa 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 standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditors' report. However future events or conditions may cause the Company to cease tocontinue asa going concern.

• Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events ina manner that achieves fairpresentation.

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 reasonablybe 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 standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditors' report unless law or regulation precludes public disclosure about thematter or 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:

As required by the Companies (Auditor's Report) Order 2016 ("the Order") asamended issued by the Central Government of India in terms of sub-section (11) of section143 of the Act we give in the "AnnexureA" a statement on the mattersspecified in paragraphs 3 and 4 of the Order.

(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 purpose of our audit

b. In our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books.

c. The standalone balance sheet the standalonestatement of profit and loss (includingothercomprehensive income) the standalone statementof changes in equity and thestandalone statementof cash flows dealt with by this Report are inagreement with the booksof account.

d. In our opinion the aforesaid standalone financial statements comply with theIndian Accounting Standards specified under Section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended.

e. On the basis of written representation received from the directors as on31/03/2020 taken on record by the Board of Directors none of the directors isdisqualified as on 31/03/2020 from being appointed as a director in terms of section164(2) of the Companies Act 2013.

f. With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B".

(B) With respect to the other matters to be included in the Auditor's 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;

1. The standalone financial statements disclose the impact of pending litigations onthe standalone financial position of the Company as detailed in Note No. 41 to theconsolidated financial statements.

2. The company has made provisions as required under the applicable law or accountingstandards for material foreseeable losses if any on long term contracts includingderivative contracts

3. There were no amounts which were required to be transferred to the investorsEducation and Protection Fund by the company.

4. The disclosures in the standalone financial statements regarding holdings as well asdealings in specified bank notes during the period from 8 November 2016 to 30 December2016 have not been made in these standalone financial statements since they do not pertainto the financial year ended 31stMarch 2020.

(C) With respect to the matter to be included in the Auditors' Report under section197(16):

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) which arerequired to be commented upon by us.

For Rakesh Bhatt & Co.
Chartered Accountants
F R N-131788W
Date : 31/07/2020 Rakesh Y. Bhatt
Place : Gandhinagar Partner -MRN 046382

ANNEXURE-"A"

ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT

Referred to in ‘Report on Other Legal & Regulatory Requirement' section of ourreport of even date to the members of the Company for the year March 2020)

1) (a) The Company has not maintained proper records of its fixed assets. Asinformed to us the preparation of fixed assets records in the prescribed pro-forma isunder preparation.

(b) The Fixed Assets have been physically verified by the management in a phasedmanner designed to cover all the items over a period of three years which in ouropinion is reasonable having regard to the size of the company and nature of itsbusiness. Pursuant to the program a portion of the fixed asset has been physicallyverified by the management during the year and no material discrepancies between theaccounting books records and the physical fixed assets have been noticed.

(c) The title deeds of immovable properties are held in the name of the company.

2) (a) The management has conducted the physical verification of inventory atreasonable intervals.

(b) The discrepancies noticed on physical verification of the inventory as compared tobooks records which has been properly dealt with in the books of account were notmaterial.

3) The Company has notgranted any loans secured/unsecured loans to companies firmsLimited Liability partnerships or other parties covered in the register maintained underSection 189 of the Act. Accordingly the provisions of clause 3(iii)(a) to (c) of theOrder is not applicable to the Company and hence not commented upon.

4) In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and 186 of the Companies Act 2013in respect of loans investments guarantees and security.

5) The Company has not accepted any deposits from the public and hence the directivesissued by the RBI and the provisions of Sections 73 to 76 or any other relevant provisionsof the Act and the Companies (Acceptance of Deposit) Rules 2015 with regard to thedeposits accepted from the public are not applicable.

6) We have broadly reviewed the cost records maintained by the Company pursuant to theCompanies (CostRecords and Audit) Rules 2014 as amended prescribed by the CentralGovernment under section 148(1) of the Companies Act 2013 and are of the opinion thatprima facie the prescribed cost records have been made and maintained. We have howevernot made adetailed examination of the cost records with a view to determine whether theyare accurate and complete.

7) (a) According to information and explanations given to us and on the basis of ourexamination of the books of account and records the Company has been generally regularin depositing undisputed statutory dues including Provident Fund Employees StateInsurance Income-Tax Sales tax Service Tax Duty of Customs Duty of Excise Valueadded Tax Cess and any other statutory dues with the appropriate authorities. Accordingto the information and explanations given to us no undisputed amounts payable in respectof the above were in arrears as at March 312019 for a period of more than six months fromthe date on when they become payable. b) According to the information and explanationgiven to us there are no dues of income tax sales tax service tax duty of customsduty of excise value added tax outstanding on account of any dispute.

8) In our opinion and according to the information and explanations given to us theCompany has not defaulted in the repayment of dues to banks. The Company has not taken anyloan either from financial institutions or from the government and has not issued anydebentures.

9) The Company did not raise any money by way of initial public offer or further publicoffer (including debt instruments) or term loans duringthe year.

10) Based upon the audit procedures performed and the information and explanationsgiven by the management we report that no fraud by the Company or on the company by itsofficers or employees has been noticed or reported during the year.

11) Based upon the audit procedures performed and the information and explanationsgiven by the management the managerial remuneration has been paid or provided inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule-V to the Companies Act;

12) In our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause 4(xii) of the Order are not applicable to the Company.

13) In our opinion all transactions with the related parties are in compliance withsection 177 and 188 of Companies Act 2013 and the details have been disclosed in theFinancial Statements as required by the applicable accounting standards.

14) During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures.

15) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not entered into any non-cash transactions withdirectors or persons connected with him. Accordingly the provisions of clause 3 (xv) ofthe Order are not applicable to the Company and hence not commented upon.

16) In our opinion the company is not required to be registered under section 45 IA ofthe Reserve Bank of India Act 1934 and accordingly the provisions of clause 3 (xvi) ofthe Order are not applicable to the Company and hence not commented upon.

For Rakesh Bhatt & Co.
Chartered Accountants
F R N-131788W
Date : 31/07/2020 Rakesh Y. Bhatt
Place : Gandhinagar Partner -MRN 046382

"Annexure B"

Annexure to the Independent Auditor's Report of even date on the Financial Statementsof Akash Infra Projects Ltd.

Report on the Internal Financial Controls over Financial reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

Opinion

We have audited the internal financial controls with reference to standalonefinancialstatements of Akash Infra-Projects Limited ("the Company") as of March31 2020 in conjunction with our audit of the standalone financial statementsof theCompany for the year ended on that date. In our opinion the Company has in all materialrespects an adequateinternal financial controls system over financial reporting and suchinternalfinancial controls over financial reporting were operating effectively as atMarch312020 based on the internal control over financial reporting criteriaestablished by theCompany considering the essential components of internalcontrol stated in the GuidanceNote on Audit of Internal Financial ControlsOver Financial Reporting issued by theInstitute of Chartered Accountantsof India.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control overfinancial reporting criteriaestablished by the Company considering the essential components of internal control statedin theGuidance Noteon Audit of Internal Financial Controls over Financial Reporting issuedby the Institute of Chartered Accountants of India ("ICAI").Theseresponsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively forensuring the orderly andefficient conduct of its business including adherence to Company's policies thesafeguarding of its assets theprevention and detection of frauds and errors the accuracyand completeness of the accounting records and the timely preparation ofreliablefinancial information as required under the Companies Act 2013.

Auditors' 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 over financial reporting. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols 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 judgment including the assessment of the risks ofmaterial misstatement of the 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 financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting 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 financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the 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 31 2020 based on theinternal control over financialreporting criteria established by the Company consideringthe essential components of internal controls stated in theGuidance Note on AuditofInternal Financial Controls over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Rakesh Bhatt & Co.
Chartered Accountants
F R N-131788W
Date : 31/07/2020 Rakesh Y. Bhatt
Place : Gandhinagar Partner -MRN 046382

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