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Vas Infrastructure Ltd.

BSE: 531574 Sector: Infrastructure
NSE: N.A. ISIN Code: INE192C01013
BSE 00:00 | 30 Sep 3.96 -0.20
(-4.81%)
OPEN

3.96

HIGH

4.10

LOW

3.96

NSE 05:30 | 01 Jan Vas Infrastructure Ltd
OPEN 3.96
PREVIOUS CLOSE 4.16
VOLUME 330
52-Week high 9.11
52-Week low 3.38
P/E
Mkt Cap.(Rs cr) 6
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 3.96
CLOSE 4.16
VOLUME 330
52-Week high 9.11
52-Week low 3.38
P/E
Mkt Cap.(Rs cr) 6
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Vas Infrastructure Ltd. (VASINFRA) - Auditors Report

Company auditors report

TO THE MEMBERS OF M/S.VAS INFRASTRUCTURE LTD. Report on the Financial StatementsOpinion

We have audited the financial statements of VAS INFRASTRUCTURE LTD("theCompany") which comprise the balance sheet as at 31st March 2021 and the statementof Profit and Loss (statement of changes in equity) and statement of cash flows for theyear then ended and notes to the financial statements including a summary of significantaccounting 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 Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at March 31 2021 and loss and statement of changes in equity and cash flows for theyear ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.

Sr. No Key Audit Matters Auditor's Response
1 The Company has adopted Ind AS 115 - Revenue from Contracts with Customers mandatory for reporting periods beginning on or after April 12018. Principal audit procedures performed:
We have performed the following procedures
• We have read the Company's revenue recognition accounting policies and assessed compliance of the policies with IndAS 115;
The application of Ind AS 115 has impacted the Company's accounting for recognition of revenue from real estate projects which is now being recognised at a point in time upon the Company satisfying its performance obligation and the customer obtaining control of the underlying asset. • We obtained and understood revenue recognition process including identification of performance obligations and determination of transfer of control of the asset underlying the performance obligation to the customer;
Considering application of IndAS 115 involves significant judgement in identifying performance obligations and determining when 'control' of the asset underlying the performance obligation is transferred to the customer and the transition method to be applied the same has been considered as key audit matter. • We have read and discussed with the management of theCompany to determine the point in time at which the control is transferred in accordance with the underlying agreements;
• We tested revenue related transactions with the underlying customer contracts sale deed and handover documents evidencing the transfer of control of the asset to the customer based on which revenue is recognized;
2 Evaluation of Impairment of advances given to parties whose net worth is substantially eroded/ incurring continuous losses. Evaluated the design and implementation of the relevant controls and the operating effectiveness of such internal controls which inter-alia includes the completeness and accuracy of the input data considered reasonableness of assumptions considered in determining the future projections and the assumptions considered in preparing the impairment calculations. Obtain from relevant sources (prepared by management or as carried out by external valuations) and performed following procedures
Loans and advances have been given to certain related parties of the company (Refer Note 28 of the financial statements) whose net worth is substantially eroded /incurring continuous losses is considered good and recoverable based on the management judgment in estimating future cash flows used as part of the impairment analysis. a) Conducted discussions with the company personnel to identify factors if any that should be taken into the account in the analysis.
b) Compared the actual revenues and cash flows generated by the related parties during the year as to the projections and the estimates considered in the previous year/ or as considered during the initial bid/ plan.
The Judgment includes forecast revenues/ cash flows and discount rate in projections period. As any adverse changes to these two assumptions could result into reduction in the fair value determined resulting in a potential impairment to be recognized. c) Evaluated the appropriateness of the key assumptions considered including discount rate growth rate etc. considering the historical accuracy company's and the comparison of the assumptions with the public data wherever available

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 Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance (changes in equity) and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theaccounting Standards specified under section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate implementationand maintenance of accounting policies; making judgments and estimates that are reasonableand prudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatement that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so. That Board of Directors are also responsible for overseeing theCompany's financial reporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

Report on Other Legal and Regulatory Requirements

As required by Section 143(3) of the Act based on our audit we report that:

a) We have sought and obtained all the information and explanations which to thebest of 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 othercomprehensive income)the statement of changes in equity and the statement of Cash Flowsdealt with by this Report are in agreement with the books of account.

d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act.

e) On the basis of the written representations received from the directors as on31st March 2020 taken on record by the Board of Directors none of the directors isdisqualified as on 31 st March 2020 from being appointed as a director in terms ofSection 164 (2) of the Act.

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 A".

g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the act as amended in our opinionand to the best of our information and according to the explanations given to us theremuneration paid by the company to its Director during the year is in accordance with theprovisions of section 197 of the Act.

h) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

I. The details of pending litigation is disclosure along with the impact of pendinglitigations on its financial position in its financial statements.

II. The Company has made provision as required under the applicable law oraccounting standards for material foreseeable losses if any on long-term contractsincluding derivative contracts .

III. There has been no delay in transferring amounts required to be transferredto the Investor Education and

Protection Fund by the Company {or following are the instances of delay intransferring amounts required to be transferred to the Investor Education and ProtectionFund by the Company or there were no amounts which were required to be transferred to theInvestor Education and Protection Fund by the Company}.

ForFor NPV and Associates
Chartered Accountants
(Firm Regn No 129408W.)
Milan Chitalia
Partner
(Membership No 112275.)
UDIN NO.: 21112275AAAACY7859
Date : 26 JUNE 2021
Place : Mumbai

ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1(f) under 'Report on Other Legal and RegulatoryRequirements' section of our report to the Members of VAS INFRASTRUCTURE LTD of even date)

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

We have audited the internal financial controls over financial reporting of VASINFRASTRUCTURE LTD ("the Company") as of March 31 2021 in conjunction with ouraudit of the financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting 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 the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the internal financial controls overfinancial reporting of the Company based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") issued by the Institute of Chartered Accountantsof India and the Standards on Auditing prescribed under Section 143(10) of the CompaniesAct 2013 to the extent applicable to an audit of internal financial controls. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2021 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia

ForFor NPV and Associates
Chartered Accountants
(Firm Regn No 129408W.)
Milan Chitalia
Partner
(Membership No 112275.)
UDIN NO.: 21112275AAAACY7859
Date : 26 JUNE 2021
Place : Mumbai

ANNEXURE 'B' TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 2 under 'Report on Other Legal and Regulatory Requirements'section of our report to the Members of Vas Infrastructure Ltd of even date) I Inrespect of the Company's fixed assets: (a) The Company has maintained proper recordsshowing full particulars including quantitative details and situation of fixed assets.

(b) The Company has a program of verification to cover all the items of fixed assets ina phased manner which in our opinion is reasonable having regard to the size of theCompany and the nature of its assets. Pursuant to the program certain fixed assets werephysically verified by the management during the year. According to the information andexplanations given to us no material discrepancies were noticed on such verification.

II. Inventory comprises of project under Construction/ Development work in progressand finished flats. a) The Inventory has been physically verified during the year by themanagement. In our opinion the frequency of verification is reasonable b) The proceduresof Physical Verification of Inventories followed by the management are reasonable andadequate in relation to the size of the company and nature of business c) The company ismaintaining proper records of Inventory and no material discrepancies were noticed onphysical verification.

III According to the information and explanations given to us the Company has grantedunsecured loans to parties covered in the register maintained under section 189 of theCompanies Act 2013 in respect of which: a) There are no covenants so we are not able tocomment about repayment the rate of interest and other terms and conditions of loansgiven by the company under section 189 of the Companies Act 2013. b) The loans granted arerepayable on demand and there are no overdue amount outstanding as at the year end.

iv. In our opinion and according to the information and explanations given to us theCompany has not advanced any loan or given any guarantee or provided any security or madeany investment as per the provisions of Sections 185 and 186 of the Act .

v. The Company has not accepted deposits during the year and does not have anyunclaimed deposits as at March 31 2021 and therefore the provisions of the clause 3 (v)of the Order are not applicable to the Company.

vi.The maintenance of cost records has not been specified by the Central Governmentunder section 148(1) of the Companies Act 2013 for the business activities carried out bythe Company. Thus reporting under clause 3(vi) of the order is not applicable to theCompany.

vii.According to the information and explanations given to us in respect of statutorydues :-

(a)The company has been regular in depositing undisputed statutory dues includingprovident fund Employees State Insurance Income Tax Sales Tax Goods and Service taxCustom Duty Value added and other material statutory dues applicable to it withappropriate authorities.

(b)However there were undisputed amounts payable in respect of Provident FundEmployee's State insurance Income tax Sales tax Service tax Value added tax Goods andService tax Customs Duty Excise duty and other material statutory dues in arrears as at31 March 2021 for a period more than six months from the date they became payable Detailsof which are as under:-

Nature of Dues Amount Period of Default
TDS Payable 191150.00 April 20 20 to Sept 20 20
Dividend Distribution Tax Payable 1924490.00 Since 31.03.2015
Professional Tax 19625.00 April 2020 to Sept 2020

(c)Details of income tax which has not been deposited as at 31 March 2021 on accountof Dispute is given below:-

viii. According to the information and explanation given to us the Company'srepayment of dues to banks amounting to Rs 141.54crores which have been restructured videletter no 907/LCB/VAS/2016 dt 14.09.2016. The same has been rescheduled and allowed to theCompany to repay without any concession over a period of 3.5 years with interest rate of15.80% p.a starting from the repayment on 30.04.2019. However the Company failed toservice the liability and the loan is therefore classified as a Non- Performing asset. Thedetails of delay in repayment is as under:-

Syndicate bank - Term Loan

Syndicate bank Car Loan

Particulars As at 31 March 2021
Due date Period of default Amount in Rupees
30-Apr-20 103
65847
31-May-20 72 65847
30-Jun-20 42 65847
31-Jul-20 11 65847
31-Oct-20 151 65847
30-Nov-20 121 65847
31-Dec-20 90 65847

IX. In our opinion and according to the information and explanation given to us theterm loans have been applied by the company during the year for the purpose of which theywere raised ( other than temporary deployment pending application of proceeds). TheCompany has not raised moneys by way of initial public offer or further public offer.

X. To the best of our knowledge and according to the information and explanations givento us no fraud by the

Company or no material fraud on the Company by its officers or employees has beennoticed or reported during the year.

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 where applicable for all transactionswith the related parties and the details of related party transactions have been disclosedin the financial statements as required by the applicable accounting standards.

XIV. During the year the Company has not made any preferential allotment or privateplacement of shares 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 to usduring the year the Company has not entered into any non-cash transactions with itsDirectors or persons connected to its directors and hence provisions of section 192 of theCompanies Act 2013 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.

ForFor NPV and Associates
Chartered Accountants
(Firm Regn No 129408W.)
Milan Chitalia
Partner
(Membership No 112275.)
UDIN NO.: 21112275AAAACY7859
th
Date : 26 JUNE 2021
Place : Mumbai

.