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Ashoka Buildcon Ltd.

BSE: 533271 Sector: Engineering
NSE: ASHOKA ISIN Code: INE442H01029
BSE 12:29 | 20 May 122.00 7.75
(6.78%)
OPEN

120.10

HIGH

126.30

LOW

116.50

NSE 12:19 | 20 May 122.00 7.70
(6.74%)
OPEN

119.00

HIGH

134.90

LOW

118.95

OPEN 120.10
PREVIOUS CLOSE 114.25
VOLUME 83152
52-Week high 186.20
52-Week low 93.15
P/E 10.97
Mkt Cap.(Rs cr) 3,425
Buy Price 121.80
Buy Qty 5.00
Sell Price 122.20
Sell Qty 1.00
OPEN 120.10
CLOSE 114.25
VOLUME 83152
52-Week high 186.20
52-Week low 93.15
P/E 10.97
Mkt Cap.(Rs cr) 3,425
Buy Price 121.80
Buy Qty 5.00
Sell Price 122.20
Sell Qty 1.00

Ashoka Buildcon Ltd. (ASHOKA) - Auditors Report

Company auditors report

To

The Members of

Ashoka Buildcon Limited

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statementsof Ashoka Buildcon Limited ("the Company") which comprise the Balance Sheet asat March 31 2018 the Statement of Profit and Loss including the statement of OtherComprehensive Income the Cash Flow Statement and the Statement of Changes in Equity forthe year then ended and a summary of significant accounting policies and otherexplanatory information.

Management's Responsibility for the Standalone Ind AS FinancialStatements

The Company's Board of Directors is responsible for the mattersstated in Section 134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation of these standalone Ind AS financial statements that give a true and fairview of the financial position financial performance including other comprehensiveincome cash flows and changes in equity of the Company in accordance with accountingprinciples generally accepted in India including the Indian Accounting Standards (Ind AS)specified under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended. 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 the design implementationand maintenance of adequate internal financial control that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the Ind AS financial statements that give a true and fairview and are free from material misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone Ind ASfinancial statements based on our audit. We have taken into account the provisions of theAct the accounting and auditing standards and matters which are required to be includedin the audit report under the provisions of the Act and the Rules made thereunder. Weconducted our audit of the standalone Ind AS financial statements in accordance with theStandards on Auditing issued by the Institute of Chartered Accountants of India asspecified under Section 143(10) of the Act. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence aboutthe amounts and disclosures in the financial statements. The procedures selected depend onthe auditor's judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the standalone Ind AS financial statementsthat give a true and fair view in order to design audit procedures that are appropriate inthe circumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by theCompany's Directors as well as evaluating the overall presentation of the standaloneInd AS financial statements. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion on the standalone IndAS financial statements.

Opinion

In our opinion and to the best of our information and according to theexplanations given to us the standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at March 31 2018 its profit including other comprehensive income its cashflows and the changes in equity for the year ended on that date.

Other Matter

The comparative financial information of the Company for the year endedMarch 312017 prepared in accordance with Ind AS included in these standalone Ind ASfinancial statements prior to giving effect to the adjustment described in Note 50 tothese standalone IND AS financial statements have been audited by the predecessor auditorwho had audited the standalone financial statements for the relevant period. The report ofthe predecessor auditor on the comparative financial information dated May 30 2017expressed an unmodified opinion.

We have audited the adjustments to reflect the effects of the mattersdescribed in Note 50 to restate the financial information as at April 1 2016 and as atand for the year ended March 31 2017. In our opinion such adjustments are appropriateand have been properly applied. We further state that we were not engaged to audit reviewor apply any procedures to the standalone financial information of the Company either asat April 1 2016 or as at and for the year ended March 31 2017 other than with respect tothe aforesaid adjustments and accordingly we do not express an opinion or reviewconclusion or any other form of assurance on the financial information as at April 1 2016and for the year ended March 31 2017 as a whole.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's report) Order 2016("the Order") issued by the Central Government of India in tenns of sub-section(11) of section 143 of the Act we give in the Annexure 1 a statement on the mattersspecified in paragraphs 3 and 4 of the Order.

2. As required by section 143 (3) of the Act we report that:

(a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purpose of our audit;

(b) In our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination of those books;

(c) The Balance Sheet Statement of Profit and Loss including theStatement of Other Comprehensive Income the Cash Flow Statement and Statement of Changesin Equity dealt with by this Report are in agreement with the books of account;

(d) In our opinion the aforesaid standalone Ind AS financialstatements comply with the Accounting Standards specified under section 133 of the Actread with Companies (Indian Accounting Standards) Rules 2015 as amended;

(e) On the basis of written representations received from the directorsas on March 312018 and taken on record by the Board of Directors none of the directorsis disqualified as on March 312018 from being appointed as a director in tenns ofsection 164 (2) of the Act;

(f) With respect to the adequacy of the internal financial controlsover financial reporting of the Company with reference to these standalone Ind ASfinancial statements and the operating effectiveness of such controls refer to ourseparate Report in "Annexure 2" to this report;

(g) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion and to the best of our information and according to theexplanations given to us:

i. The Company has disclosed the impact of pending litigations on itsfinancial position in its standalone Ind AS financial statements - Refer Note 48 to thestandalone Ind AS financial statements;

ii. The Company has made provision as required under the applicablelaw or accounting standards for material foreseeable losses if any on long-tenncontracts including derivative contracts - Refer Note 47 to the standalone Ind ASfinancial statements;

iii. There were no amounts which were required to be transferred to theInvestor Education and Protection Fund by the Company.

For S R B C & CO LLP Chartered Accountants

ICAI Finn Registration Number: 324982E/E300003

per Anil Jobanputra Partner

Membership Nmnber: 110759

Place: Mumbai Date: May 29 2018

Annexure 1 - Statement on matters specified in paragraphs 3 and 4 ofthe Companies (Auditor's report) Order 2016

(i) (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets.

(b) All fixed assets have not been physically verified by themanagement during the year but there is a regular prograimne of verification which in ouropinion is reasonable having regard to the size of the Company and the nature of itsassets. No material discrepancies were noticed on such verification.

(c) According to the information and explanations given by themanagement the title deeds of immovable properties included in property plant andequipment are held in the name of the company except for title deed in case of twobuildings (Gross Block of Rs. 151.64 Lakh Net Block Rs. 143.77 lakh) for which transferdeed is yet to be executed in the name of the Company.

(ii) (a) The management has conducted physical verification ofinventory at reasonable intervals during the year and no material discrepancies werenoticed on such physical verification.

(iii) (a) The Company has granted loans to sixteen companies covered inthe register maintained under section 189 of the Companies Act 2013. In our opinion andaccording to the information and explanations given to us the tenns and conditions of thegrant of such loans are not prejudicial to the company's interest.

(b) The Company has granted loans to sixteen companies covered in theregister maintained under section 189 of the Companies Act 2013. The schedule ofrepayment of principal and payment of interest has been stipulated for the loans grantedand the repayment/receipts are regular.

(c) There are no amounts of loan granted to companies linns or otherparties listed in the register maintained under section 189 of the Companies Act 2013which are overdue for more than ninety days.

(iv) In our opinion and according to the infonnation and explanationsgiven to us there are no loans investments guarantees and securities given in respectof which provisions of section 185 and 186 of the Companies Act 2013 are applicable andhence not coimnented upon.

(v) The Company has not accepted any deposits within the meaning ofSection 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules 2014 (asamended). Accordingly the provisions of clause 3(v) of the Order are not applicable.

(vi) We have broadly reviewed the books of account maintained by theCompany pursuant to the rules made by the Central Government for the maintenance of costrecords under section 148(1) of the Companies Act 2013 related to road and otherinfrastructure projects and are of the opinion that prima facie the specified accountsand records have been made and maintained. We have not however made a detailedexamination of the same.

(vii) (a) Undisputed statutory dues including provident fundemployees' state insurance income-tax sales-tax service tax duty of customs dutyof excise value added tax cess and other material Statutory dues have been regularlydeposited with the appropriate authorities though there has been a slight delay in a fewcases.

According to the infonnation and explanations given to us noundisputed amounts payable in respect of provident fund employees' state insuranceincome-tax service tax sales-tax duty of custom duty of excise value added tax cessand other statutory dues were outstanding at the year end for a period of more than sixmonths from the date they became payable.

(b) According to the records of the Company the dues outstanding ofincome-tax sales-tax service tax duty of custom duty of excise value added tax andcess on account of any dispute are as follows:

Name of Statute Nature of dues

Amount (Rs. in lakhs)

Period to which the amount relates Forum where dispute is pending
Customs Act 1962 Custom duty

83.34

2000-01 CESTAT Mumbai
Finance Act 1995 Service Tax

71.06

2005-06 Supreme Court of India
State and Central Sales Tax Acts Tax Interest and Penalty

2252.72

2006-07 Joint Commissioner (Appeal) Maharashtra

20.54

2008-09 Deputy Commissioner Chhattisgarh

24.80

2009-10 Add. Commissioner (Appeals) Chhattisgarh

0.32

2007-08 Asst. Commissioner Rajasthan

1509.34

2012- 13 and 2013- 14 Senior Joint Commissioner West Bengal

37.14

2014-15 Commercial Taxes Tribunal Bihar

103.70

2013-14 Appleate Deputy Commissioner (Appeals) Chennai

1709.21

2014-15 West Bengal Taxation

1726.57

2014- 15 and 2015- 16 High Court Madras
Income Tax Act 1961 Tax Interest and Penalty

75.61

2000-01 and 2002-03 Bombay High Court

688.31

2002- 03 2003- 04 and 2010-11 Income Tax Appellate Tribunal

2431.32

2010-11 and 2012-13 Commissioner of Income Tax (Appeals)

 

(viii) In our opinion and according to the infonnation and explanationsgiven by the management the Company has not defaulted in repayment of loans or borrowingto a financial institution and bank. The Company has not taken any loan or borrowing fromGovernment or by way of issue of debentures.

(ix) In our opinion and according to the infonnation and explanationsgiven by the management the Company has utilized the monies raised by way of tenn loansfor the purposes for which they were raised. The Company has not raised any money by wayof initial public offer / further public offer /debt instruments during the year.

(x) Based upon the audit procedures perfonned for the purpose ofreporting the true and fair view of the financial statements and according to theinfonnation and explanations given by the management we report that no fraud by thecompany or no fraud on the company by the officers and employees of the Company lias beennoticed or reported during the year.

(xi) According to the infonnation and explanations given by themanagement the managerial remuneration has been paid / provided in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V to theCompanies Act 2013.

(xii) In our opinion the Company is not a nidlii company. Thereforethe provisions of clause 3 (xii) of the order are not applicable to the Company.

(xiii) According to the infonnation and explanations given by themanagement transactions with the related parties are in compliance with section 177 and188 of Companies Act 2013 where applicable and the details have been disclosed in thenotes to the financial statements as required by the applicable accounting standards.

(xiv) According to the infonnation and explanations given to us and onan overall examination of the balance sheet the company lias not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year under review and hence reporting requirements under clause 3 (xiv) are notapplicable to the company and not coimnented upon.

(xv) According to the infonnation and explanations given by themanagement the Company has not entered into any non-cash transactions with directors orpersons connected with him as refened to in section 192 of Companies Act 2013.

(xvi) According to infonnation and explanation given to us theprovisions of section 45-IA of the Reserve Bank of India Act 1934 are not applicable tothe Company.

For S R B C & CO LLP

Chartered Accountants

ICAI Finn Registration Number: 324982E/E300003

per Anil Jobanputra

Partner

Membership Nmnber: 110759

Place of signature: Mumbai

Date: May 29 2018

ANNEXURE 2 - TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ONTHE STANDALONE FINANCIAL STATEMENTS

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

We have audited the internal financial controls over financialreporting of Ashoka Buildcon Limited ("the Company") as of March 31 2018 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's Management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to the Company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting with reference to these standalonefinancial statements based on our audit. We conducted our audit in accordance with theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting (the"Guidance Note") and the Standards on Auditing as specified under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls and both issued by the Institute of Chartered Accountants of India.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting with reference to these standalone financialstatements was established and maintained and if such controls operated effectively in allmaterial respects. Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls over financial reporting with reference tothese standalone financial statements and their operating effectiveness. Our audit ofinternal financial controls over financial reporting included obtaining an understandingof internal financial controls overfinancial reporting with reference to these standalonefinancial statements assessing the risk that a material weakness exists and testing andevaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgement includingthe assessment of the risks of material misstatement of the financial statements whetherdue to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the internal financial controlsover financial reporting with reference to these standalone financial statements.

Meaning of Internal Financial Controls Over Financial Reporting WithReference to these Financial Statements A company's internal financial control overfinancial reporting with reference to these standalone financial statements is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting with reference to these standalone financial statements includes thosepolicies and procedures that (1) pertain to the maintenance of records that in reasonabledetail accurately and fairly reflect the transactions and dispositions of the assets ofthe company; (2) provide reasonable assurance that transactions are recorded as necessaryto permit preparation of financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorisations of management and directors of the company; and (3)provide reasonable assurance regarding prevention or timely detection of unauthorisedacquisition use or disposition of the company's assets that could have a materialeffect on the financial statements.

Inherent Limitations of Internal Financial Controls Over FinancialReporting With Reference to these Standalone Financial Statements

Because of the inherent limitations of internal financial controls overfinancial reporting with reference to these standalone financial statements including thepossibility of collusion or improper management override of controls materialmisstatements due to error or fraud may occur and not be detected. Also projections ofany evaluation of the internal financial controls over financial reporting with referenceto these standalone financial statements to future periods are subject to the risk thatthe internal financial control over financial reporting with reference to these standalonefinancial statements may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects adequateinternal financial controls over financial reporting with reference to these standalonefinancial statements and such internal financial controls over financial reporting withreference to these standalone financial statements were operating effectively as at March31 2018 based on the internal control over financial reporting criteria established bythe Company considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting issued bythe Institute of Chartered Accountants of India.

For S R B C & CO LLP

Chartered Accountants ICAI

Finn Registration Nmnber: 324982E/E300003

per Anil Jobanputra

Partner

Membership Nmnber: 110759

Place of Signature: Mumbai

Date: May 29 2018