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Likhitha Infrastructure Ltd.

BSE: 543240 Sector: Infrastructure
NSE: LIKHITHA ISIN Code: INE060901019
BSE 00:00 | 12 Aug 291.80 3.55
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NSE 00:00 | 12 Aug 291.40 2.60
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288.80

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OPEN 291.95
PREVIOUS CLOSE 288.25
VOLUME 366
52-Week high 429.00
52-Week low 236.00
P/E 11.69
Mkt Cap.(Rs cr) 576
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 291.95
CLOSE 288.25
VOLUME 366
52-Week high 429.00
52-Week low 236.00
P/E 11.69
Mkt Cap.(Rs cr) 576
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Likhitha Infrastructure Ltd. (LIKHITHA) - Auditors Report

Company auditors report

To

The Members Of

LIKHITHA INFRASTRUCTURE LIMITED

Opinion:-

1. We have audited the accompanying financial statements of LikhithaInfrastructure Limited (formerly known as Likhitha Infrastructure Private Limited)("the Company") which comprise the Balance Sheet as at March 31 2021 and theStatement of Profit and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and the Statement of Cash Flows 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 theexplanations given to us the aforesaid financial statements give the information requiredby the Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("IND AS") and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at 31st March 2021 and its profit totalcomprehensive income its cash flows and the changes in equity for the year ended on thatdate.

Basis for Opinion:-

2. We conducted our audit in accordance with the Standards on Auditing(SAs) specified under Section 143(10) of the Act. Our responsibilities under those SAs arefurther described in the Auditor's Responsibilities for the Audit of the FinancialStatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India together with theethical requirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules there under and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion.

Emphasis of Matter:-

3. We draw attention to Note 2.22 the financial statements whichdescribes the extent to which the COVID-19 Pandemic will impact the Company'sfinancial performance and financial position which depend on future developments that arehighly uncertain. Our opinion is not modified in respect of this matter.

Key Audit Matters:-

4. Key audit matters are those matters that in our professionaljudgment were of most significance in our audit of the financial statements of thecurrent period. These matters were addressed in the context of our audit of the 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.

Appropriateness of recognition measurement presentation and disclosures of revenues and other related balances in view of adoption of Ind AS 115 "Revenue from Contracts with Customers" (new revenue accounting standard)
Key audit matter description Appropriateness of recognition measurement presentation and disclosures of revenues and other related balances in view of adoption of Ind AS 115 "Revenue from Contracts with Customers" (new revenue accounting standard).
The application of the revenue accounting standard involves certain key judgements relating to identification of distinct performance obligations determination of transaction price of the identified performance obligations the appropriateness of the basis used to measure revenue recognized over a period. And also the required disclosure as specified by the said standard.
Audit Procedures We have assessed the process to identify the impact of adoption of the new revenue accounting standard and also the revenue recognition criteria said by the company.
We have assessed the process to identify the impact of adoption of the new revenue accounting standard and also the revenue recognition criteria said by the company.
The procedures performed included the following:
• Evaluated the design of internal controls relating to implementation of the new revenue accounting standard;
• Review terms and conditions of continuing and new contracts on sample basis and tested the operating effectiveness of the internal control relating to identification of the distinct performance obligations and determination of transaction price.
• We have carried out procedures involving inspection and examination of evidence which include the underlying supporting documents internal and external supporting records in respect of transactions with the customers in relation to the continuing and new contractor and
• In respect of significant continuing and new contracts we performed the following procedures:
i. Read and analysed contracts to understand terms and conditions to ascertain the distinct performance obligations in such contracts;
ii. Compared such performance obligations with that identified and recorded by the Company;
iii. Considered the terms of the contracts to determine the transaction price including any variable consideration to verify the transaction price used to compute revenue and to test the basis of estimation of the variable consideration;
v. Performed analytical procedures for reasonableness of revenues disclosed by type and service offerings.
Key audit matter description Trade Receivables:
Refer to accounting policies for the standalone financial statements and notes.
Net trade receivables amount to Rs. 388374042/-.
Trade receivables are recognised at their anticipated realisable value which is the original invoiced amount less an estimated valuation allowance. Valuation of trade receivables is a key audit matter in the audit due to the size of the trade receivable balance.
Audit Procedures For trade receivables our key audit procedures included the following:
• We have reviewed on sample basis in the agreements and supporting evidence in respect of the transactions between company and its customers. To ensure the accuracy of the transactions and balance of the trade receivables.
• Reviewed significant terms and conditions of the agreement to verify the proper revenue recognition and also reviewed the terms and conditions with reference to obligations on the entity
• Reviewed the payment terms and conditions by the customers to ensure the completeness of the debtors balances.
• We obtained trade receivables balance confirmations;
• We analysed the aging of trade receivables; and
• We obtained a list of outstanding receivables and assessed the recoverability of these through inquiry with management and by obtaining sufficient corroborative evidence to support the conclusions.

Other Information:-

The Company's Board of Directors are responsible for the otherinformation. The other information comprises the information included in the annualreport for example Management Discussion and Analysis Board's Report includingAnnexures to Board's Report Business Responsibility Report Corporate Governance andShareholder's Information but does not include the financial statements and ourauditor's report thereon. The other information as stated above is expected to bemade available to us after the date of this auditor's report.

Our opinion on the financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements ourresponsibility is to read the other information identified above when it becomes availableand in doing so consider whether the other information is materially inconsistent withthe financial statements or our knowledge obtained in the audit or otherwise appears to bematerially misstated.

When we read the other information as stated above if we conclude thatthere is a material misstatement therein we are required to communicate the matter tothose charged with Governance.

Management's Responsibility for the Financial Statements:-

5. 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 financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the Company in accordance with the Indian Accounting Standards(Ind AS) prescribed under section 133 of the Act read with the Companies (IndianAccounting Standards) Rules 2015 as amended and other accounting principles generallyaccepted in India.

This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the financial statements management and Board ofDirectors are responsible for assessing the Company's ability to continue as a goingconcern disclosing as applicable matters related to going concern and using the goingconcern basis of accounting unless management either intends to liquidate the Company orto cease operations or has no realistic alternative but to do so.

Board of Directors is also responsible for overseeing theCompany's financial reporting process.

Auditors' Responsibility for the Financial Statements:-

6. Our objectives are to obtain reasonable assurance about whether thefinancial 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. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with SAs 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 financial statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit.

We also

7. Identify and assess the risks of material misstatement of thefinancial 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.

8. Obtain an understanding of internal 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 expressing our opinion on whether thecompany has adequate internal financial controls with reference to financial statements inplace and the operating effectiveness of such controls.

9. Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.

10. Conclude on the appropriateness of management's use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor'sreport to the related disclosures in the 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 auditors' report. However future events or conditions maycause the Company to cease to continue as a going concern.

11. Evaluate the overall presentation structure and content of thefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the 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 scope of our audit work and in evaluating the resultsof our work; and

(ii) to evaluate the effect of any identified misstatements in thefinancial 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 financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditors' 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:-

12. As required by the Companies (Auditor's Report) Order 2016issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act ("the Order") and on the basis of such checks of the books and recordsof the Company as we considered appropriate and according to the information andexplanations given to us we give in the Annexure B a statement on the matters specifiedin paragraphs 3 and 4 of the Order.

13. 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 purposes of ouraudit.

b. In our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books.

c. The Balance Sheet the Statement of Profit and Loss (including othercomprehensive income) the Cash Flow Statement and the Statement of Changes in Equitydealt with by this Report are in agreement with the books of accounts.

d. In our opinion the aforesaid Ind AS financial statements complywith the Indian Accounting Standards specified under Section 133 of the Act.

e. On the basis of the written representations received from thedirectors as on March 31 2021 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2021 from being appointed as a director in termsof Section 164 (2) of the Act.

f. With respect to the adequacy of the internal financial controls withreference to financial statements of the Company and the operating effectiveness of suchcontrols refer to our separate Report in Annexure A. Our report expresses unmodifiedopinion on the adequacy and operating effectiveness of the Company's internalfinancial controls over financial reporting.

g. With respect to the other matters to be included in theAuditors' Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion and to the best of our knowledge and belief and according tothe information and explanations given to us:

i. The Company has disclosed the impact if any of pending litigationsas at March 31 2021 on its financial position in its Ind AS financial statements –Refer Note 31.1.B (II);

ii. The Company has made provision as at March 31 2021 as requiredunder the applicable law or accounting standards for material foreseeable losses if anyon long-term contracts including derivative contracts;

iii. There were no amounts which were required to be transferred to theInvestor Education and Protection Fund by the Company during the year ended March 312021;

h. With respect to the matter to be included in the Auditors'Report under section 197(16) of the Act as amended in our opinion and to the best of ourinformation and according to the explanations given to us the remuneration paid/providedby the company to its directors during the year is in accordance with the provisions ofthe section 197 of the Act.

For NSVR & Associates LLP
FRN: 008801S/S200060
Chartered Accountants
Suresh Gannamani
Partner
Membership Number: 226870
UDIN: 21226870AAAADY2401
Place: Hyderabad
Date:11-06-2021.

Annexure ‘A' to the Independent Auditors' Report

Referred to in paragraph 11(f) of the Independent Auditors' Reportof even date to the members of Likhitha Infrastructure Limited on the Ind AS financialstatements for the year ended March 31 2021.

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

1. We have audited the internal financial controls over financialreporting of Likhitha Infrastructure Limited ("the Company") as of March 312021 in conjunction with our audit of the Ind AS financial statements of the Company forthe year ended on that date.

Management's Responsibility for Internal Financial Controls:-

2. 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 (ICAI).These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to 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.

Auditors' Responsibility:-

3. Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") and the Standards on Auditing deemedto be prescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of internal financial controlsand both issued by the ICAI. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

4. Our audit involves performing procedures to obtain audit evidenceabout the adequacy of the internal financial controls system over financial reporting andtheir operating effectiveness. Our audit of internal financial controls over financialreporting included obtaining an understanding of internal financial controls overfinancial reporting assessing the risk that a material weakness exists and testing andevaluating the design and operating effectiveness of internal financial controls based onthe assessed risk. The procedures selected depend on the auditor's judgmentsincluding the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error.

5. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the Company's internalfinancial controls system over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting:-

6. A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of Ind AS financial statements for external purposes inaccordance with generally accepted accounting principles. A company's internal financialcontrol over financial reporting includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;

(2)provide reasonable assurance that transactions are recorded asnecessary to permit preparation of Ind AS financial statements in accordance withgenerally accepted accounting principles and that receipts and expenditures of thecompany are being made only in accordance with authorizations of management and directorsof the company; and

(3) provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the company's assets thatcould have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over FinancialReporting:-

7. Because of the inherent limitations of internal financial controlsover financial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion:-

8. In our opinion the Company has in all material respects anadequate internal financial controls system over financial reporting and such internalfinancial controls over financial reporting were operating effectively as at March 312021 based on the internal control over financial reporting criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India.

For NSVR & Associates LLP
FRN: 008801S/S200060
Chartered Accountants
Suresh Gannamani
Partner
Membership Number: 226870
UDIN: 21226870AAAADY2401
Place: Hyderabad
Date:11-06-2021.

Annexure ‘B' to the Independent Auditors' Report

Referred to in paragraph 10 of the Independent Auditors' Report ofeven date to the members of Likhitha Infrastructure Limited on the Ind AS financialstatements as of and for the year ended March 31 2021

I. In respects of Company's property plant and equipment:

(a) The Company is maintaining proper records showing full particularsincluding quantitative details and situation of fixed assets.

(b) The fixed assets are physically verified by the Managementaccording to a phased programme designed to cover all the items over a period of 3 yearswhich in our opinion is reasonable having regard to the size of the Company and thenature of its assets. Pursuant to the programme a portion of the fixed assets has beenphysically verified by the Management during the year and no material discrepancies havebeen noticed on such verification.

(c) The title deeds of immovable properties as disclosed in note 3 onproperty plant and equipment to the Ind AS financial statements are held in the name ofthe Company.

II. The physical verification of inventory have been conducted atreasonable intervals by the Management during the year. The discrepancies noticed onphysical verification of inventory as compared to book records were not material.

III. The Company has not granted any loans secured or unsecuredto companies firms Limited Liability Partnerships or other parties covered in theregister maintained under Section 189 of the Act. Therefore the provisions of Clause3(iii)(iii)(a)(iii)(b) and (iii)(c) of the said Order are not applicable to the Company.

IV. The Company has not granted any loans or made any investmentsor provided any guarantees or security to the parties covered under Section 185 and 186.Therefore the provisions of Clause 3(iv) of the said Order are not applicable to theCompany.

V. The Company has not accepted any deposits from the public withinthe meaning of Sections 73 74 75 and 76 of the Act and the Rules framed there under tothe extent notified.

VI. Pursuant to the rules made by the Central Government of Indiathe Company is not required to maintain cost records as specified under Section 148(1) ofthe Act.

VII. (a) According to the information and explanations given to usand the records of the Company examined by us in our opinion the Company is generallyregular in depositing undisputed statutory dues in respect of provident fundemployees' state insurance income tax and value added tax though there has been aslight delay in a few cases and is regular in depositing undisputed statutory duesincluding sales tax duty of customs duty of excise cess goods and service tax andother material statutory dues as applicable with the appropriate authorities.

(b) According to the information and explanations given to us and therecords of the Company examined by us there are no dues of duty of customs duty ofexcise value added tax goods and service tax which have not been deposited on account ofany dispute. The particulars of dues of income tax sales tax service tax and entry taxas at March 31 2021 which have not been deposited on account of a dispute are as follows:

Particulars As at March 31 2021 As at March 31 2020 Forum Where Dispute is Pending
Telangana Value Added Tax Act 2005
Demand under Rule 17 (1) (e) of the APVAT Rules 2005 Financial Year 614381 614381 Sales Tax Tribunal
2008-2009 [Rs. 307190/- was paid under protest]
Demand under Rule 17 (1) (e) of the APVAT Rules 2005 Financial Year 1535656 1535656 Sales Tax Tribunal
2009-2010 [Rs. 767828/- was paid under protest]
Income tax Act 1961
Order u/s. 143 (3) Income tax Act 1961 Assessment Year 2017-18 22102029 22102029 Income Tax Tribunal
Order u/s. 143 (3) Income tax Act 1961 Assessment Year 2018-19 30652410 - Income Tax Tribunal
Order u/s. 143 (3) Income tax Act 1961 Assessment Year 2019-20 315960 - Income Tax Tribunal

VIII. According to the records of the Company examined by us andthe information and explanation given to us the Company has not defaulted in repayment ofloans or borrowings to any financial institution or bank or Government or dues todebenture holders as at the balance sheet date.

IX. In our opinion and according to information and explanationsgiven by the management and audit procedures performed by us monies raised by the companyby way of initial public offer were applied for the purpose for which they were raisedthough idle funds which were not required for immediate utilisation have been deposited ina separate bank account.

X. During the course of our examination of the books and records ofthe Company carried out in accordance with the generally accepted auditing practices inIndia and according to the information and explanations given to us we have neither comeacross any instance of material fraud by the Company or on the Company by its officers oremployees noticed or reported during the year nor have we been informed of any such caseby the Management.

XI. The Company has paid/ provided for managerial remuneration inaccordance with the requisite approvals mandated by the provisions of Section 197 readwith Schedule V to the Act.

XII. As the Company is not a Nidhi Company and the Nidhi Rules

2014 are not applicable to it. The provisions of Clause 3(xii) of theOrder are not applicable to the Company.

XIII. The Company has entered into transactions with relatedparties in compliance with the provisions of Sections 177 and 188 of the Act. The detailsof the related party transactions have been disclosed in the Ind AS financial statementsas required under Indian Accounting Standard (Ind AS) 24Related Party Disclosuresspecified in the Companies (Indian Accounting Standards) Rules2015 (as amended) underSection 133 of the Act.

XIV. The Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview. Accordingly the provisions of Clause 3(xiv) of the Order are not applicable tothe Company.

XV. The Company has not entered into any non-cash transactions withits directors or persons connected with him. Accordingly the provisions of Clause 3(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 Reserve Bank of India Act 1934. Accordingly theprovisions of Clause 3(xvi) of the Order are not applicable to the Company.

For NSVR & Associates LLP
FRN: 008801S/S200060
Chartered Accountants
Suresh Gannamani
Partner
Membership Number: 226870
UDIN: 21226870AAAADY2401
Place: Hyderabad
Date:11-06-2021.

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