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Aksh Optifibre Ltd.

BSE: 532351 Sector: Engineering
NSE: AKSHOPTFBR ISIN Code: INE523B01011
BSE 00:00 | 16 Apr 6.27 -0.05
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6.24

HIGH

6.40

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6.23

NSE 00:00 | 16 Apr 6.25 0
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OPEN

6.25

HIGH

6.35

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OPEN 6.24
PREVIOUS CLOSE 6.32
VOLUME 374831
52-Week high 9.60
52-Week low 4.04
P/E
Mkt Cap.(Rs cr) 102
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 6.24
CLOSE 6.32
VOLUME 374831
52-Week high 9.60
52-Week low 4.04
P/E
Mkt Cap.(Rs cr) 102
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

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 of Aksh OptifibreLimited (the 'Company') which comprise the Balance Sheet as at 31 March 2019 theStatement of Profit and Loss (including Other Comprehensive Income) the Cash FlowStatement and the Statement of Changes in Equity for the year then ended and a summary ofthe significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 (the 'Act') in the manner so required and give a true and fairview in conformity with the accounting principles generally accepted in India includingIndian Accounting Standards ('Ind AS') specified under Section 133 of the Act of thestate of affairs (financial position) of the Company as at 31 March 2019 and its profit(financial performance including other comprehensive income) its cash flows and thechanges in equity for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statement in accordance with theStandards on Auditing specified under Section 143(10) of the Act. Our responsibilitiesunder those standards are further described in the Auditor's Responsibilities for theAudit of the Financial Statements section of our report. We are independent of the Companyin accordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia ('ICAI') together with the ethical requirements that are relevant to our audit ofthe standalone financial statements under the provisions of the Act and the rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the ICAI's Code of Ethics. We believe that the audit evidence wehave obtained is sufficient and appropriate to provide a basis for our audit opinion onthe 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 financial statements 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 aseparate 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.
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. • Evaluated the underlying documents against which these amounts are accrued as per eligibility criteria.
The management of the Company has assessed that a provision for impairment is not required towards the amount recoverable from the Central Government Entity. • Obtained representation from the management regarding recoverability of these amounts.
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:
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. • Obtained an understanding and assessed the design implementation and operating effectiveness of management's key internal controls with regard to recognition of revenue.
In addition first time disclosures required under Ind AS 115 have been identified as an area of focus for the current year. • Read selected contracts to identify significant terms of the contracts and
• evaluation of contract terms.
• Assessing appropriateness of management's significant judgements in accounting for identified contracts.
• 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 and Auditor's Report thereon

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the annual report but does not includethe financial statements and our auditor's report thereon. The annual report is expectedto be made available to us after the date of this auditor's report. Our opinion on thefinancial statements does not cover the other information and we will not express any formof assurance conclusion thereon. In connection with our audit of the financial statementsour responsibility is to read the other information identified above when it becomesavailable and in doing so consider whether the other information is materiallyinconsistent with the financial statements or our knowledge obtained in the audit orotherwise appears to be materially misstated.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Act with respect to the preparation of these standalone financial statementsthat give a true and fair view of the state of affairs (financial position) profit orloss (financial performance including other comprehensive income) changes in equity andcash flows of the Company in accordance with the Ind AS and other accounting principlesgenerally accepted in India. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the standalone financial statements that give a true and fair view and arefree from material misstatement whether due to fraud or error.

In preparing the standalone financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so. The Board of Directors are also responsible foroverseeing 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 the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith Standards on Auditing will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these standalone financial statements.

As part of an audit in accordance with Standards on Auditing we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

i. Identify and assess the risks of material misstatement of the standalone financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

ii. Obtain an understanding of internal financial control relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under Section143(3) (i) of the Act we are also responsible for explaining our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

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

iv. 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 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 ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

iv. 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 in a manner that achieves fairpresentation. Materiality is the magnitude of misstatements in the standalone financialstatements that individually or in aggregate makes it probable that the economicdecisions of a reasonably knowledgeable user of the financial statements may beinfluenced.

We consider quantitative materiality and qualitative factors in (i) planning the scopeof our audit work and in evaluating the results of our work; and (ii) to evaluate theeffect of any identified misstatements in the standalone financial statements.

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 standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's 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

1) As required by Section 197(16) of the Act we report that the Company has paidremuneration to its director during the year in accordance with the provisions of andlimits 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 bythe Central Government of India in terms of Section 143(11) of the Act we give in theAnnexure A a statement on the matters specified in paragraphs 3 and 4 of the Order.

3) Further to our comments in Annexure A as required by Section 143(3) of the Act wereport 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 Statement of Changes in Equity and the Statement of Cash Flow dealt with by thisReport are in agreement with the relevant books of account.

d) In our opinion the aforesaid standalone financial statements comply with the Ind ASspecified under Section 133 of the Act.

e) On the basis of the written representations received from the directors as on March31 2019 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2019 from being appointed as a director in terms of Section 164 (2) of theAct.

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”. Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the company's internal financial controls overfinancial reporting.

g) 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 (as amended) inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations on its financialposition in the standalone financial statements- Refer note no 40 of the standalonefinancial statement;

ii. The Company did not have any long-term contracts including derivative contracts forwhich 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 during the year ended 31 March2019;

iv. The reporting on disclosures relating to the Specified Bank Notes is not applicableto 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 Regulatory Requirements'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 a true and fairview on the standalone financial statements of the Company and taking into considerationthe information and explanations given to us and the books of account and other recordsexamined by us in the normal course of audit and to the best of our knowledge and beliefwe report that:

(I) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) According to the information and explanation given to us fixed assets except theassets installed at customer premises have been physically verified by the managementduring the year. No material discrepancies were noticed on such verification. In ouropinion frequency of physical verification of fixed assets is reasonable. The fixedassets have been physically verified by the management during the year. No materialdiscrepancies were noticed on such verification.

(c) According to the Information and explanation given to us and on the basis ofexamination 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 and other terms and conditions on which theloan has been granted to its subsidiaries covered in the register maintained underSection 189 of the Act were not prima facie prejudicial to the interests of the Company.

(b) In respect of loans granted to subsidiaries covered under section 189 of the Actthe terms of arrangement for payment of principal and interest are not due. Accordinglythe provisions of paragraph 3 (iii) (b) of the Order are not applicable to the Company

(c) In respect of the aforesaid loan as per the information made available to usthere 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 to us the Company has notaccepted any deposits within the meaning of section 73 to 76 of the Companies Act 2013and the Companies (Acceptance of Deposits) Rules2014 (as amended). Accordingly theprovision of clause 3(v) of the Order are not applicable.

vi. We have broadly reviewed the books of account relating to materials labour andother items 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 depositing undisputed statutory dues includingemployees' state insurance duty of customs duty of excise cess and other materialstatutory dues as applicable with the appropriate authorities except in case of paymentof goods and services tax on CIF value of import under reverse charge mechanism provident fund & in payment of advance income tax installments on due dates. Accordingto the information and explanations given to us no undisputed amounts payable in respectof income tax Goods & Service Tax Service Tax sales tax custom duty excise dutyand Cess were in arrears as at 31st March 2019 for a period of more than six months fromthe date they became payable except excise duty of Rs.6.06 lakhs & sales tax ofRs.44.01 lakhs.

(b) According to the information and explanations given to us there are no dues ofincome tax or Goods & Service Tax or sales tax or service tax or duty of customs orduty of excise or value added tax or cess which have not been deposited on account of anydispute except of the following amounts:

Name of Statute Nature of Dues Disputed Period to which amount relates Forum where dispute is pending
AmountRs. 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 to the financialinstitution and banks during the year which were not paid as at Balance Sheet date

Name of Lender AmountRs. In Lakhs AmountRs. 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 the financialinstitution and banks which were paid on or before the Balance Sheet date:

Name of Lender AmountRs. In Lakhs AmountRs. 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 our examination of therecords of the Company the term loans have been applied for the purposes for which theywere obtained. The Company has not raised any moneys by way of initial public offer orfurther public offer (including debt instruments).

x. According to the information and explanations given to us no fraud by the Companyor on the Company by its officers or employees has been noticed or reported during thecourse of our audit.

xi. In our opinion and according to the information and explanations given to us theCompany has paid/provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the Act.

xii. The Company is not a Nidhi Company and hence reporting under clause 3 (xii) of theOrder is not applicable to the Company.

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 standalone financial statements as required by theapplicable Indian accounting standards.

xiv. According to the information & explanation provide to us the Company has notmade any preferential allotment or private placement of shares or fully or partly paidconvertible debentures during the year hence reporting under clause 3 (xiv) of the Orderis not applicable to the Company.

xv. In our opinion and according to the information and explanations given to usduring 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 to be registered under Section 45-IA of the ReserveBank of India Act 1934. Accordingly the provisions of Clause (xvi) of the Order are notapplicable 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

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