Akash InfraProj. Management Discussions


The Indian infrastructure sector is a key driver for the Indian economy for economic growth and is pivotal in shaping the future of a country. Growing urbanization, demand for energy and financing needs for sustainable living pose a challenge for the infrastructural setup in the country and it requires intense focus from the government for introducing policies that would ensure time-bound formation of world-class infrastructure in the country.

The infrastructure sector is said to play a crucialrole in fulfilling Government of Indias vision of ‘Aatmanirbhar Bharat. In the latest Union Budget, the Government of India has announced significant allocations towards infrastructure development.


There is the opportunity for the domestic industry to become more organized, with the creation of more large firms through organic growth and acquisitions. This would improve overall construction quality. Strong population growth and a growing economy is fueling demand for infrastructure.

Key parameters which are favorable for the industry are as under:

I. Higher government spending: To support the economy, Government has front-loaded its expenditure in FY23 and maintained an expansionary fiscal budget target.

II. Prudent monetary support: The RBI aims at maintaining an accommodative stance and providing ample liquidity support to help the economy recover faster.

III. Lower current account deficit: Helped by lower import growth and stable exports growth, Indias current account deficit has narrowed significantly.

The Government of India is expected to invest heavily in the infrastructure sector, mainly highways, renewable energy and urban transport. Increasing budget allocations, Smart City Mission, Pradhan Mantri Awas Yojana, new metro rail policy, Housing for all and are expected to contribute significantly to drive infrastructure growth in India.

As such there is no major threat identified which will endanger the existence of the Company.

However, during the end of the financial year 2022-23, with increased focus on urbanization, the market is likely to witness a strong growth in coming years. Slow growth was recorded albeit temporarily after a slowdown in India economic growth in the past few years. COVID-19 pandemic has adversely affected all theindustry segments and our Company is no exception. It is a challenge to sustain in the current market scenario.


Risk is a multi-facet concept. Construction delays continue to be a concern factor which stems from number of factors which are within and outside the control of the Company, some of which includes land acquisition, regulatory approvals, inflation, and litigation etc. These risks can delay the timely completion of the project and increase in cost of project. This can, in turn, lead to additional funding, additional cost of fund etc. Further the Indian industry, in general, the construction sector, in particular, is suffering from high interest costs. To stimulate much needed growth in the real economy, RBI and the commercial banks have to further cut their interest rates.

The construction industry is also prone to competition from new as well as existing players. Intense competition may lead to pricing pressure, impacting the profitability and growth of the Company.


The Company has implemented an Internal Control framework to ensure all assets are safeguarded and protected against loss from unauthorized use or disposition, and transactions are authorized, recorded and reported correctly.

The Company has robust systems for Internal Audit and corporate risk assessment and mitigation. The Internal Control System includes Internal Financial Controls, commensurate with the size, scale and complexity of its operations as approved by the Audit Committee and the Board. The Internal Financial Controls are adequate and working effectively.

Whistle-blower mechanism is an important element of the internal control system encouraging employees to report genuine concerns, misconduct or fraud without any fear of punishment or unfair treatment. The operation of Whistle-blower mechanism is overseen by the Audit Committee.



During the year under review, there is decrease in the revenue from operations of the Company by Rs. 6,178.02 Lacs (previous year Rs. 7,884.37 Lacs) and accordingly the net profit has also been decreased to Rs. 141.39 Lacs (previous year Rs. 237.92 Lacs). The Company is desirous of getting new projects in the coming years which may further increase the revenue and profitability of the Company.


For any industry, employees are an organizations most valuable asset. Your Company has recruited competent trained and skilled employees at all levels of management for all verticals of the Company like Roads, Irrigation Division, commercial construction, as a part of corporate restructuring process and strengthening its business verticals to meet the pace of growth of your Company. The industrial relation is very cordial.

G. Details of significant changesin Key Financial Ratios are given below:


2022-23 2021-22 Change %

Reason for change

Debtors Turnover 3.18 3.82 -16.77
Interest Service Coverage Ratio 1.44 1.87 -22.99
Net Profit Margin % 2.29 3.02 -24.16
Operating Profit Margin % 41.00 18.00 127.77 Due to recessionary environment inmajor economies of the world and higher cost of production has adversely affected the financial position of the Company.
Debt Equity Ratio 0.74 0.28 -166.98
Current Ratio 1.93 2.75 -29.83
Inventory Turnover 1.31 2.91 -55.04
Return on Net Worth % 2 3 -33.33

During the year under review, the Company has received new contracts, and the details of some of the major contracts receivedduring the year and after the end of the year under are as follows:

- Providing Turnkey Project solutions for Multi-Speciality Hospital with ICCU, CATHLAB, Ortho-Unit, GynaeUnit, Surgery Unit, Derma Unit, Dental-Unit facilities for Phase I and II and the entire project is spreading in 80,000 SQ. FT. Area.

Disclosure of Accounting Treatment:

The Company has followed the Indian Accounting Standards (Ind-AS) for drawing-up its accounts as prescribed by the Institute of Chartered Accountants of India, in the preparation of financial statements. There are no audit qualifications in the Companys financial statements for the year under review.


The Company has complied with all the statutory requirements. A declaration regarding compliance of the provisions of the various statutes is also made by the Chairman and Managing Director at each Board Meeting. The Company ensures compliance of the ROC, SEBI Regulations.


Outlook for future are estimates based on certain assumptions and expectations of future events, eco -political and other developments across the country, the company cannot guarantee that these are accurate or will be realized. Statements in Management Discussion and Analysis describing the Companys objectives, expectations or predictions may be forward-looking within the meaning of applicable securities law and regulations. The companys actual results, performance or achievements could thus differ from those projected in any forward looking statements. Important factors that could influence the Companys operations include stiff competition leading to price-cuts, high volatility in prices of major inputs such as steel, cement, building materials, petroleum products, change in government regulations, tax laws, economic developments within the country and other factors such as litigation and industrial relations. The company assumes no responsibility to publicly amend or revive any such statements on the basis of subsequent developments, information or events.

Akash Infra-Projects Limited undertakes no obligation to publicly revise any forward-looking statements to reflect future events or circumstances.