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Aksh Optifibre Ltd.

BSE: 532351 Sector: Engineering
NSE: AKSHOPTFBR ISIN Code: INE523B01011
BSE 00:00 | 06 Dec 6.48 -0.34
(-4.99%)
OPEN

6.80

HIGH

6.83

LOW

6.40

NSE 00:00 | 06 Dec 6.45 -0.35
(-5.15%)
OPEN

6.80

HIGH

6.85

LOW

6.35

OPEN 6.80
PREVIOUS CLOSE 6.82
VOLUME 32524
52-Week high 26.15
52-Week low 5.27
P/E
Mkt Cap.(Rs cr) 105
Buy Price 6.40
Buy Qty 3200.00
Sell Price 6.48
Sell Qty 144.00
OPEN 6.80
CLOSE 6.82
VOLUME 32524
52-Week high 26.15
52-Week low 5.27
P/E
Mkt Cap.(Rs cr) 105
Buy Price 6.40
Buy Qty 3200.00
Sell Price 6.48
Sell Qty 144.00

Aksh Optifibre Ltd. (AKSHOPTFBR) - Auditors Report

Company auditors report

To

The Members of AKSH OPTIFIBRE LIMITED

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements ofAksh Optifibre Limited (the 'Company') which comprise the Balance Sheet as at 31 March2019 the Statement of Profit and Loss (including Other Comprehensive Income) the CashFlow Statement and the Statement of Changes in Equity for the year then ended and asummary of the significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 (the 'Act') in the manner so required andgive a true and fair view in conformity with the accounting principles generally acceptedin India including Indian Accounting Standards ('Ind AS') specified under Section 133 ofthe Act of the state of affairs (financial position) of the Company as at 31 March 2019and its profit (financial performance including other comprehensive income) its cashflows and the changes in equity for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statement inaccordance with the Standards on Auditing specified under Section 143(10) of the Act. Ourresponsibilities under those standards are further described in the Auditor'sResponsibilities for the Audit of the Financial Statements section of our report. We areindependent of the Company in accordance with the Code of Ethics issued by the Instituteof Chartered Accountants of India ('ICAI') together with the ethical requirements that arerelevant to our audit of the standalone financial statements under the provisions of theAct and the rules thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the ICAI's Code of Ethics. We believe that theaudit evidence we have obtained is sufficient and appropriate to provide a basis for ouraudit opinion on the standalone financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.

Trade Receivables from a Central Government Entity
The Company has trade receivables of Rs. 8565.30 lakhs from a Public Sector Entity owned by the Government of India in the telecommunications sector. The Company has taken necessary steps for the recovery of the amount due. Our procedures included but were not limited to the following:
Considering that the amount is due from a Central Government Entity and based on past experience of realisation and steps taken by the Company for recovery it is confident of recovering the balance amount in due course. ? Evaluated various correspondences made by the Company with the Central Government Entity and other follow up actions taken by the Company including but not limited to legal process meetings notices etc.
? Evaluated the underlying documents against which these amounts are accrued as per eligibility criteria.
This matter has been considered as a key audit matter considering the significance of recoverability of such trade receivable to the Company's financial statements. ? Obtained representation from the management regarding recoverability of these amounts.
The management of the Company has assessed that a provision for impairment is not required towards the amount recoverable from the Central Government Entity. As a result of the above audit procedures the management's assessment of impairment in the amount recoverable from the Central Government Entity was considered to be appropriate.
Revenue Recognition on transition to Ind AS 115 Effective April 12018 on account of adoption of new revenue standard Ind AS 115 - Revenue from contracts with customer the company has changed its revenue recognition policy with regard to timing of revenue recognition based on satisfaction of the identified performance obligations. Additionally the new revenue accounting standard contains disclosures which involve collation of information in respect of disaggregated revenue and period over which the remaining performance obligations will be satisfied subsequent to the balance sheet date. Our procedures included but were not limited to the following:
? Obtained an understanding and assessed the design implementation and operating effectiveness of management's key internal controls with regard to recognition of revenue.
Read selected contracts to identify significant terms of the contracts and ? evaluation of contract terms.
We focused on this area because a significant portion of the revenue generated requires management to exercise judgement and therefore could be subject to material misstatement due to fraud or error. ? Assessing appropriateness of management's significant judgements in accounting for identified contracts.
In addition first time disclosures required under Ind AS 115 have been identified as an area of focus for the current year. ? Testing of timing of recognition of revenue (including procedures related to cut off) in line with the terms of contracts.
? Testing the key management assumptions used to estimate contract cost contract risks claims etc.
? Consideration of the adequacy of the disclosures as required to be made by Management under the new standard. Based on above procedures we did not note any significant exceptions in the estimates and judgements applied by the Management in revenue recognition including those relating to presentation and disclosures.

Information other than the standalone Financial Statements andAuditor's Report thereon

The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the annualreport but does not include the financial statements and our auditor's report thereon.The annual report is expected to be made available to us after the date of this auditor'sreport. Our opinion on the financial statements does not cover the other information andwe will not express any form of assurance conclusion thereon. In connection with our auditof the financial statements our responsibility is to read the other informationidentified above when it becomes available and in doing so consider whether the otherinformation is materially inconsistent with the financial statements or our knowledgeobtained in the audit or otherwise appears to be materially misstated.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters statedin Section 134(5) of the Act with respect to the preparation of these standalone financialstatements that give a true and fair view of the state of affairs (financial position)profit or loss (financial performance including other comprehensive income) changes inequity and cash flows of the Company in accordance with the Ind AS and other accountingprinciples generally accepted in India. 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 standalone financial statements that give a true andfair view and are free from material misstatement whether due to fraud or error.

In preparing the standalone financial statements management isresponsible 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 are alsoresponsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with Standards on Auditing will always detect a materialmisstatement when it exists. Misstatements can arise from fraud or error and areconsidered material if individually or in the aggregate they could reasonably beexpected to influence the economic decisions of users taken on the basis of thesestandalone financial statements.

As part of an audit in accordance with Standards on Auditing weexercise professional judgment and maintain professional skepticism throughout the audit.We also: i. 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. ii. Obtain an understanding of internal financial control relevant to the auditin order to design audit procedures that are appropriate in the circumstances. UnderSection 143(3) (i) of the Act we are also responsible for explaining our opinion onwhether the Company has adequate internal financial controls system in place and theoperating effectiveness of such controls. iii. Evaluate the appropriateness of accountingpolicies used and the reasonableness of accounting estimates and related disclosures madeby management.

iv. Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditions maycause the Company to cease to continue as a going concern. iv. Evaluate the overallpresentation structure and content of the standalone financial statements including thedisclosures and whether the standalone financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation. Materiality is themagnitude of misstatements in the standalone financial statements that individually or inaggregate makes it probable that the economic decisions of a reasonably knowledgeableuser of the financial statements may be influenced. We consider quantitative materialityand qualitative factors in (i) planning the scope of our audit work and in evaluating theresults of our work; and (ii) to evaluate the effect of any identified misstatements inthe standalone financial statements.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

1) As required by Section 197(16) of the Act we report that theCompany has paid remuneration to its director during the year in accordance with theprovisions of and limits laid down under Section 197 read with Schedule V to the Act.

2) As required by the Companies (Auditor's Report) Order 2016 (the'Order') issued by the Central Government of India in terms of Section 143(11) of the Actwe give in the Annexure A a statement on the matters specified in paragraphs 3 and 4 ofthe Order.

3) Further to our comments in Annexure A as required by Section 143(3)of the Act we report that: a) We have sought and obtained all the information andexplanations which to the best of our knowledge and belief were necessary for the purposesof our audit. b) In our opinion proper books of account as required by law have been keptby the Company so far as it appears from our examination of those books. c) The BalanceSheet the Statement of Profit and Loss including Other Comprehensive Income Statement ofChanges in Equity and the Statement of Cash Flow dealt with by this Report are inagreement with the relevant books of account. d) In our opinion the aforesaid standalonefinancial statements comply with the Ind AS specified under Section 133 of the Act. e) Onthe basis of the written representations received from the directors as on March 31 2019taken on record by the Board of Directors none of the directors is disqualified as onMarch 31 2019 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 overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in “Annexure B”. Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the company's internal financialcontrols over financial reporting. g) with respect to the other matters to be included inthe Auditor's 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 accordingto the explanations given to us: i. The Company has disclosed the impact of pendinglitigations on its financial position in the standalone financial statements- Refer noteno 40 of the standalone financial statement; ii. The Company did not have any long-termcontracts including derivative contracts for which there were any material foreseeablelosses; iii. There has been no delay in transferring amounts required to be transferredto the Investor Education and Protection Fund by the Company during the year ended 31March 2019; iv. The reporting on disclosures relating to the Specified Bank Notes is notapplicable to the Company for the year ended March 31 2019.

For B G G & Associates
Chartered Accountants
FRN 016874N
CA Alok Kumar Bansal
Place: New Delhi Partner
Date: May 25 2019 Membership No. 092854

“Annexure A” to the Independent Auditor's Report

(Referred to in paragraph 3 under 'Report on Other Legal and RegulatoryRequirements' section of our report to the Member of Aksh Optifibre Limited of even date)

Based on the audit procedures performed for the purpose of reporting atrue and fair view on the standalone financial statements of the Company and taking intoconsideration the information and explanations given to us and the books of account andother records examined by us in the normal course of audit and to the best of ourknowledge and belief we report that: (I) (a) The Company has maintained proper recordsshowing full particulars including quantitative details and situation of fixed assets.

(b) According to the information and explanation given to us fixedassets except the assets installed at customer premises have been physically verified bythe management during the year. No material discrepancies were noticed on suchverification. In our opinion frequency of physical verification of fixed assets isreasonable. The fixed assets have been physically verified by the management during theyear. No material discrepancies were noticed on such verification.

(c) According to the Information and explanation given to us and on thebasis of examination of books of account and other documents the title deeds of immovableproperties owned by the Company are held in the name of the Company. ii. According to theinformation & explanation given to us physical verification of inventory has beenconducted at reasonable intervals by the management during the year except for goods intransit. The discrepancies noticed on verification between the physical stocks and thebook records were not material and have been properly dealt with in the book of accounts.iii. According to the information and explanation given to us the Company had grantedunsecured loan to its four wholly owned subsidiaries covered in the register maintainedunder Section 189 of Companies Act 2013. (a) In our opinion the rate of interest andother terms and conditions on which the loan has been granted to its subsidiaries coveredin the register maintained under Section 189 of the Act were not prima facie prejudicialto the interests of the Company.

(b) In respect of loans granted to subsidiaries covered under section189 of the Act the terms of arrangement for payment of principal and interest are notdue. Accordingly the provisions of paragraph 3 (iii) (b) of the Order are not applicableto the Company (c) In respect of the aforesaid loan as per the information made availableto us there is no overdue amount as at year end. iv. According to the information &explanation given to us in respect of loans investments guarantees and security theCompany has complied with the provisions of section 185 and I86 of the Companies Act2013 to the extent applicable. v. According to the information and explanations given tous the Company has not accepted any deposits within the meaning of section 73 to 76 ofthe Companies Act 2013 and the Companies (Acceptance of Deposits) Rules2014 (asamended). Accordingly the provision of clause 3(v) of the Order are not applicable. vi.We have broadly reviewed the books of account relating to materials labour and otheritems of cost maintained by the Company pursuant to the Rules made by the CentralGovernment for the maintenance of cost records under sub section (1) of section 148 of theCompanies 2013 and we are of the opinion that prima facie the prescribed accounts andrecords have been made and maintained. vii. (a) The Company is regular in depositingundisputed statutory dues including employees' state insurance duty of customs duty ofexcise cess and other material statutory dues as applicable with the appropriateauthorities except in case of payment of goods and services tax on CIF value of importunder reverse charge mechanism provident fund & in payment of advance income taxinstallments on due dates. According to the information and explanations given to us noundisputed amounts payable in respect of income tax Goods & Service Tax Service Taxsales tax custom duty excise duty and Cess were in arrears as at 31st March 2019 for aperiod of more than six months from the date they became payable except excise duty ofRs.6.06 lakhs & sales tax of Rs.44.01 lakhs.

(b) According to the information and explanations given to us thereare no dues of income tax or Goods & Service Tax or sales tax or service tax or dutyof customs or duty of excise or value added tax or cess which have not been deposited onaccount of any dispute except of the following amounts:

Name of Statute Nature of Dues Disputed Period to which amount relates Forum where dispute is pending
Amountर In Lakhs
Central Excise Act 1944 Excise Duty 22.35 2010-11 Asst. Commissioner Bhiwadi
Central Excise Act 1944 Excise duty 32.79 2011-12 Asst. Commissioner Bhiwadi
Central Excise Act 1944 Excise duty & Penalty 23.76 2012-14 Assistant Commissioner CGST Division C Bhiwadi
Central Excise Act 1944 Excise duty & Penalty 3.37 2000-01 CESTAT New Delhi
Central Excise Act 1944 Excise duty 4.02 2013-14 Assistant Commissioner Sikar
Finance Act 1994 Service tax & Interest 31.20 November 2006 to August 2008 Hon'ble High Court Jaipur
Finance Act 1994 Service Tax 0.91 January 2011 to November 2011 Assistant Commissioner Bhiwadi
Finance Act 1994 Service Tax 28.99 October 2014 to June 2017 Assistant Commissioner Bhiwadi
Income Tax Act 1961 Income tax 91.01 A.Y 2010-11 CIT (Appeals) Alwar (Rajasthan)
Income Tax Act 1961 Income tax 1.71 A.Y 2015-16 CIT (Appeals) Delhi
Provident Fund Act Provident Fund 7.60 2004-05 Hon'ble High Court Jaipur

viii. (a) The Company has defaulted in repayment of following dues tothe financial institution and banks during the year which were not paid as at BalanceSheet date

Name of Lender Amountर In Lakhs Amountर In Lakhs Period of Default -Maximum days Period of Default -Maximum days
(Principal) (Interest) (Principal) (Interest)
HDFC Bank 988.83 32.32 59 26
Punjab National Bank 116.75 5.07 15 22
Union Bank of India 440.92 29.08 20 10

(b) The Company has defaulted in repayment of following dues to thefinancial institution and banks which were paid on or before the Balance Sheet date:

Name of Lender Amountर In Lakhs Amountर In Lakhs Period of Default -Maximum days Period of Default -Maximum days
(Principal) (Interest) (Principal) (Interest)
HDFC Bank 3477.58 45.55 80 58
Punjab National Bank - 9.69 - 4
Union Bank of India 110.00 56.70 20 5

ix. According to the information and explanation given to us and ourexamination of the records of the Company the term loans have been applied for thepurposes for which they were obtained. The Company has not raised any moneys by way ofinitial public offer or further public offer (including debt instruments). x. According tothe information and explanations given to us no fraud by the Company or on the Company byits officers or employees has been noticed or reported during the course of our audit. xi.In our opinion and according to the information and explanations given to us the Companyhas paid/provided managerial remuneration in accordance with the requisite approvalsmandated by the provisions of section 197 read with Schedule V to the Act. xii. TheCompany is not a Nidhi Company and hence reporting under clause 3 (xii) of the Order isnot applicable to the Company. xiii. In our opinion and according to the information andexplanations given to us the Company is in compliance with Section 177 and 188 of theCompanies Act 2013 where applicable for all transactions with the related parties andthe details of related party transactions have been disclosed in the standalone financialstatements as required by the applicable Indian accounting standards. xiv. According tothe information & explanation provide to us the Company has not made any preferentialallotment or private placement of shares or fully or partly paid convertible debenturesduring the year hence reporting under clause 3 (xiv) of the Order is not applicable tothe Company. xv. In our opinion and according to the information and explanations given tous during the year the Company has not entered into any non-cash transactions with itsDirectors or persons connected to its directors. Accordingly the provision of paragraph3(xv) of the Order are not applicable to the Company. xvi. The Company is not required tobe registered under Section 45-IA of the Reserve Bank of India Act 1934. Accordingly theprovisions of Clause (xvi) of the Order are not applicable to the Company.

For B G G & Associates
Chartered Accountants
FRN 016874N
CA Alok Kumar Bansal
Place: New Delhi Partner
Date: May 25 2019 Membership No. 092854