DRAFT PROSPECTUS Fixed Price Issue Please read Section 26 & 32 of the Companies Act, 2013 ...

348 Pages·2017·6.35 MB·English

DRAFT PROSPECTUS
Fixed Price Issue
Please read Section 26 & 32 of the Companies Act, 2013
Dated January 30, 2017

Akash Infra-Projects Limited
(U45209GJ1999PLC036003)
Our Company was originally incorporated at Gandhinagar as “Akash Infra-Projects Private Limited” on May 14, 1999 under the provisions of the Companies Act,
1956. Consequent upon the conversion of our Company to a Public Limited Company pursuant to Shareholders resolution passed at the Extraordinary General
Meeting of our Company held on August 31, 2016 the name of our company was changed to “Akash Infra-Projects Limited" vide fresh Certificate of
Incorporation dated September 27, 2016 was issued by the Registrar of Companies, Ahmedabad, Gujarat bearing Corporate Identification Number (CIN)
U45209GJ1999PLC036003.
Registered Office: 2 Ground Floor, Abhishek Complex, Opp. Hotel Haveli,
Sector 11, Gandhinagar Gujarat 382011 India;
Tel: [phone] Fax No: [phone] Email: [email protected] Website: www.akashinfra.com
Contact Person & Compliance Officer: Ms. Upasna A Patel, Company Secretary & Compliance Officer;
PROMOTERS OF THE COMPANY: Mr. YOGINKUMAR H PATEL AND Mr. AMBUSINH P GOL
PUBLIC ISSUE OF 20,40,000 EQUITY SHARES OF RS. 10/- EACH (“EQUITY SHARES”) OF AKASH INFRA-PROJECTS LIMITED (“AIPL” OR THE
“COMPANY” OR THE “ISSUER”) FOR CASH AT A PRICE OF RS. 125/- PER SHARE (THE “ISSUE PRICE”), AGGREGATING TO RS. 2550.00 LACS
(“THE ISSUE”), CONSISTING OF FRESH ISSUE OF 12,67,200 EQUITY SHARES AGGREGATING TO 1584.00 LAKHS AND AN OFFER FOR SALE OF
7,72,800 EQUITY SHARES BY MR. YOGINKUMAR PATEL AND MR. AMBUSINH GOL (“COLLECTIVELY REFERRED AS SELLING SHAREHOLDERS
AND PROMOTERS”) AGGREGATING TO RS. 966.00 LAKHS (“OFFER FOR SALE”), OF WHICH, 1,08,000 EQUITY SHARES OF RS. 10 EACH WILL BE
RESERVED FOR SUBSCRIPTION BY MARKET MAKERS TO THE ISSUE (THE “MARKET MAKER RESERVATION PORTION”). THE ISSUE LESS THE
MARKET MAKER RESERVATION PORTION I.E. ISSUE OF 19,32,000 EQUITY SHARES OF RS. 10 EACH IS HEREINAFTER REFERRED TO AS THE “NET
ISSUE”. THE ISSUE AND THE NET ISSUE WILL CONSTITUTE 26.88% AND 25.46%, RESPECTIVELY OF THE POST ISSUE PAID UP EQUITY SHARE
CAPITAL OF THE COMPANY.
THIS ISSUE IS BEING IN TERMS OF CHAPTER X-B OF THE SEBI (ICDR) REGULATIONS, 2009 AS AMENDED FROM TIME TO TIME.
For Further Details See “Issue Related Information” Beginning On Page 253 of this Draft Prospectus
All potential investors may participate in the Issue through an Application Supported by Blocked Amount (“ASBA”) process providing details about the bank
account which will be blocked by the Self Certified Syndicate Banks (“SCSBs”) for the same. For details in this regard, specific attention is invited to "Issue
Procedure" on page 261 of this Draft Prospectus. In case of delay, if any in refund, our Company shall pay interest on the application money at the rate of 15%
per annum for the period of delay.
THE FACE VALUE OF THE EQUITY SHARES IS RS. 10/- EACH AND THE ISSUE PRICE IS 12.5 TIMES OF THE FACE VALUE.
RISK IN RELATION TO THE FIRST ISSUE TO THE PUBLIC
This being the first issue of our Company, there has been no formal market for the securities of the Company. The face value of the Equity Shares is Rs. 10/ and
the issue price is at 12.5 times of face value. The issue price (as determined by our Company in consultation with the Lead Manager and as stated in the chapter
titled on “Basis For Issue Price” beginning on page 64 of this Draft Prospectus should not be taken to be indicative of the market price of the Equity Shares after
the Equity Shares are listed. No assurance can be given regarding an active or sustained trading in the shares of the Company or regarding the price at which the
equity shares will be traded after listing.
GENERAL RISKS
Investments in equity and equity-related securities involve a degree of risk and investors should not invest any funds in this Issue unless they can afford to take
the risk of losing their investment. Investors are advised to read the risk factors carefully before taking an investment decision in this offering. For taking an
investment decision, investors must rely on their own examination of our Company and the Issue including the risks involved. The Equity Shares offered in the
Issue have neither been recommended nor approved by Securities and Exchange Board of India nor does Securities and Exchange Board of India guarantee the
accuracy or adequacy of this Draft Prospectus. Specific attention of the investors is invited to the section titled “Risk Factors” beginning on page 11 of this Draft
Prospectus.
ISSUER’S AND SELLING SHAREHOLDERS’ ABSOLUTE RESPONSIBILITY
The Company having made all reasonable inquiries, accepts responsibility for and confirms that this Draft Prospectus contains all information with regard to our
Company and the Issue, which is material in the context of the Issue, that the information contained in this Draft Prospectus is true and correct in all material
aspects and is not misleading in any material respect, that the opinions and intentions expressed herein are honestly held and that there are no other facts, the
omission of which makes this Draft Prospectus as a whole or any of such information or the expression of any such opinions or intentions misleading in any
material respect. Each Selling Shareholder, severally and not jointly, accepts responsibility only for statements made by such Selling Shareholder in relation to
itself in Draft Prospectus and the Equity Shares being sold by it through the Offer for Sale.
LISTING
The Equity Shares offered through the Draft Prospectus are proposed to be listed on Emerge Platform of National Stock Exchange of India Limited ("NSE
Emerge"). In terms of the Chapter XB of the SEBI (ICDR) Regulations, 2009, as amended from time to time, our Company has received an observation letter
dated [●] from NSE for using its name in this offer document for listing our shares on the Emerge Platform of National Stock Exchange of India Limited. For the
purpose of this Issue, the designated Stock Exchange will be the NSE Limited (“NSE”).
LEAD MANAGER REGISTRAR TO THE ISSUE

Tipsons Consultancy Services Private Limited
Purva Sharegistry (India) Pvt. Ltd.
401, Sheraton House, Opp: Ketav Petrol Pump,
Unit no. 9, Shiv Shakti Industrial Estate, J.R. Boricha Marg, Opp. Kasturba
Polytechnic Road, Ambawadi Ahmedabad Gujarat 380015 India
Hospital Lane, Lower Parel (E), Mumbai 400 011
Tel No. [phone], 079-66828048
Tel No.: [phone] / 8261
Fax No. [phone]
Fax No.: [phone]
Website: www.tipsons.com
E-mail ID: [email protected] Email id: [email protected]
Website: www.purvashare.com
Contact person: Mr. Avinash Kothari/ Mr. Jimmy Joshi
Contact Person: Mr. V.B.Shah
SEBI Registration No: INM000011849
SEBI Registration No. INR000001112
ISSUE PROGRAMME
Issue opens on: [●] Issue Closes on: [●]
TABLE OF CONTENTS

PAGE
CONTENTS NO.
SECTION I – GENERAL
DEFINITIONS AND ABBREVIATIONS 1
COMPANY RELATED TERMS 1
TECHNICAL AND INDUSTRY TERMS 1
ISSUE RELATED TERMS 3
CONVENTIONAL / GENERAL TERMS 5
PRESENTATION OF FINANCIAL, INDUSTRY AND MARKET DATA 8
FORWARD LOOKING STATEMENTS 10
SECTION II – RISK FACTOR 11
SECTION III – INTRODUCTION
SUMMARY OF OUR INDUSTRY 24
SUMMARY OF OUR BUSINESS 28
SUMMARY OF OUR FINANCIAL INFORMATION 29
THE ISSUE 40
GENERAL INFORMATION 42
CAPITAL STRUCTURE 47
SECTION IV – PARTICULARS OF THE ISSUE
OBJECTS OF THE ISSUE 60
BASIS FOR ISSUE PRICE 64
BASIC TERMS OF THE ISSUE 67
STATEMENT OF TAX BENEFITS 68
SECTION V – ABOUT US
INDUSTRY OVERVIEW 70
BUSINESS OVERVIEW 75
KEY INDUSTRY REGULATIONS AND POLICIES 82
HISTORY AND CERTAIN CORPORATE MATTERS 92
OUR MANAGEMENT 95
OUR PROMOTERS AND PROMOTER GROUP 108
FINANCIAL INFORMATION OF OUR GROUP COMPANIES 111
RELATED PARY TRANSACTIONS 115
DIVIDEND POLICY 116
SECTION VI – FINANCIAL INFORMATION
RESTATED STANDALONE FINANCIAL STATEMENTS 117
RESTATED CONSOLIDATED FINANCIAL STATEMENTS 162
MANAGEMENT‘S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION 216
AND RESULTS OF OPERATIONS
SECTION VII – LEGAL AND OTHER REGULATORY INFORMATION
OUTSTANDING LITIGATIONS AND MATERIAL DEVELOPMENTS 225
GOVERNMENT AND OTHER STATUTORY APPROVALS 234
OTHER REGULATORY AND STATUTORY DISCLOSURES 241
SECTION VIII – ISSUE RELATED INFORMATION
TERMS OF ISSUE 253
ISSUE STRUCTURE 258
ISSUE PROCEDURE 261
RESTRICTIONS ON FOREIGN OWNERSHIP OF INDIAN SECURITIES 284
SECTION IX – DESCRIPTION OF EQUITY SHARES AND TERMS OF THE ARTICLES OF
ASSOCIATION
MAIN PROVISIONS OF ARTICLES OF ASSOCIATION 285
SECTION X – OTHER INFORMATION
MATERIAL CONTRACTS AND DOCUMENTS FOR INSPECTION 342
SECTION XI – DECLARATION 344
SECTION I: GENERAL
DEFINITIONS AND ABBREVIATIONS
Unless the context otherwise indicates, the following terms and abbreviations stated hereunder shall have the meanings as
assigned therewith. References to statutes, rules, regulations, guidelines and policies will be deemed to include all
amendments and modification notified thereto.

DEFINITIONS
TERM DESCRIPTION
―Akash Infra-Projects Unless the context otherwise indicates, Akash Infra-Projects Limited, a Public Limited Company
Limited‖ or ― Akash‖ or incorporated under the Companies Act, 1956
―AIPL‖ or "Our
Company", or "the
Company", "we", "us" or
"the Issuer"

COMPANY/INDUSTRY RELATED TERMS/TECHNICAL TERMS

TERM DESCRIPTION
Acres Area of 43,560 Square Feet
ASSOCHAM Associated Chambers of Commerce and Industry of India
CAGR Compounded Annual Growth Rate
CAP Corrective Action Plan
CPI Consumer Price Index
DIPP Department of Industrial Policy and Promotion
FDI Foreign Direct Investment
FY Financial Year
GDP Gross Domestic Product
GST Goods and Services Tax
GVA Gross Value Added
IT Information Technology
MAT Minimum Alternative Tax
MSMEs Micro, Small and Medium Enterprises
MoU Memorandum of Understanding
NHAI National Highways Authority of India
NBFC Non-Banking Finance Company
NCD Non-Convertible Debentures
NoC No Objection Certificates
NCR National Capital Region
REC Rural Electrification Corporation Limited
Sq. fts. Square Feet
Sq.mts. Square Meters
Sq. yds. Square Yards
ULCRA The Urban Land Ceiling and Regulation Act
PPP Purchasing Power Parity
VAT Value Added Tax
OECD Organisation for Economic Co-operation and Development

ABBREVIATIONS

ABBREVIATION FULL FORM
A/C Account
ACS Associate Company Secretary
AA,DGFT Appellate Authority, Director General of Foreign Trade
AC,CE&C Additional Commissioner, Central Excise & Customs
ACIT Assistant Commissioner Of Income Tax
Adnl. DGFT Additional Director General of Foreign Trade
AGM Annual General Meeting
A.O. Assessment Order
AS Accounting Standards issued by the Institute of Chartered Accountants of India
A.Y. Assessment Year
ASBA Application Supported by Blocked Amount
1
B.Com Bachelor of Commerce
BG/LC Bank Guarantee / Letter of Credit
C(A),CE&C Commissioner(Appeals), Central Excise & Customs
CAGR Compounded Annual Growth Rate
C. A. Chartered Accountant
CC Cubic Centimetre
CC Cash Credit
CDSL Central Depository Services (India) Limited
CEA Central Excise Act
CER Central Excise Rules
CESTAT Customs, Excise & Service Tax Appellate Tribunal
CFO Chief Financial Officer
CIT(A) Commissioner of Income Tax (Appeals)
C.S. Company Secretary
DEEC Duty Exemption Entitlement Certificate
DGFT Director General of Foreign Trade
DP Depository Participant
ECS Electronic Clearing System
EGM / EOGM Extra Ordinary General Meeting of the shareholders
EPS Earnings per Equity Share
ESOP Employee Stock Option Plan
EMD Earnest Money Deposit
FCNR Account Foreign Currency Non Resident Account
Foreign Exchange Management Act, 1999, as amended from time to time and the
FEMA regulations issued there under.
Foreign Institutional Investor (as defined under SEBI (Foreign Institutional Investors) Regulations,
FII 1995, as amended from time to time) registered with SEBI under applicable laws in India.
FIs Financial Institutions.
Foreign Investment Promotion Board, Department of Economic Affairs, Ministry of Finance,
FIPB Government of India
FY / Fiscal Financial Year
Foreign Venture Capital Investors registered with SEBI under the SEBI (Foreign Venture Capital
FVCI Investor) Regulations, 2000.
GDP Gross Domestic Product
GIR Number General Index Registry Number
GoI/ Government Government of India
HUF Hindu Undivided Family
HSC Higher Secondary Certificate
INR / `/ Rupees/Rs. Indian Rupees, the legal currency of the Republic of India
IPO Initial Public Offering
ITAT Income Tax Appellate Tribunal
ITO(OSD) Income Tax Officer (On Special Duty)
I. T. Act The Income Tax Act, 1961, as amended.
IT Authorities Income Tax Authorities
IT Rules The Income Tax Rules, 1962, as amended from time to time
JC, CE&C Joint Commissioner, Central Excise & Customs
Jt. DGFT Joint Director General of Foreign Trade
MAC Motor Accident Claims
MOU Memorandum of Understanding
MT Metric Tonne
M. Com. Master of Commerce
N/A or N.A. Not Applicable
NAV Net Asset Value
NBW Non- Bailable Warrant
Net Worth The aggregate of the paid up share capital, share premium account, and reserves and surplus
(excluding revaluation reserve) as reduced by the aggregate of miscellaneous expenditure (to the
extent not adjusted or written off) and the debit balance of the profit and loss account
NOC No Objection Certificate
No. Number
NR Non-Resident
NSDL National Securities Depository Limited
OIA Order-In-Appeal
OIO Order-In-Original
p.a. per annum
2
PAT Profit After Tax
PBT Profit Before Tax
P/E Ratio Price/Earnings Ratio
PAN Permanent Account Number
R & B Division Road and Building Division
RBI The Reserve Bank of India
RCS Regular Civil Suit
RoC/Registrar of Registrar of Companies, Dadra and Nagar Haveli
Companies
RONW Return on Net Worth
` / INR Indian Rupees
SCN Show Cause Notice
SME Small And Medium Enterprises
Stamp Act The Indian Stamp Act, 1899, as amended from time to time
State Government The Government of a State of India
SSC Secondary School Certificate
STT Securities Transaction Tax
TAN Tax Deduction Account Number
TRS Transaction Registration Slip
TIN Taxpayers Identification Number
TNW Total Net Worth
u/s Under Section
UIN Unique Identification Number
USD/ $/ US$ The United States Dollar, the legal currency of the United States of America
WDV Written Down Value
w.e.f. With effect from

ISSUE RELATED TERMS
TERMS DESCRIPTION
Acknowledgement Slip The slip or document issued by the Designated Intermediary to an Applicant as proof of
registration of the Application.
Allotment/Allot/Allotted Issue of Equity Shares pursuant to the Issue to the successful applicants as the context requires.
Allotment Advice Note or advice or intimation of Allotment sent to the Applicants who have been allotted Equity
Shares after the Basis of Allotment has been approved by the Designated Stock Exchange.
Allottee(s) The successful applicant to whom the Equity Shares are being / have been issued/allotted.
Applicant/Investor Any prospective investor who makes an application for Equity Shares in terms of this Draft
Prospectus
Application Amount The amount at which the Applicant makes an application for the Equity Shares of our Company
in terms of Draft Prospectus.
Application Form The Form in terms of which the applicant shall apply for the Equity Shares of the Company
Application Supported Means an application for subscribing to an issue containing an authorization to block the
by Blocked Amount application money in a bank account
(ASBA)
ASBA Account Account maintained with SCSBs which will be blocked by such SCSBs to the extent of the
appropriate application Amount of the ASBA applicant, as specified in the ASBA Application
Form
ASBA Location(s) at which ASBA Application can be uploaded by the Brokers
Location(s)/Specified
Cities
ASBA Public Issue An Account of the Company under Section 40 of the Act, where the funds shall be transferred by
Account the SCSBs from the bank accounts of the ASBA Investors
Bankers to the Issue Banks which are clearing members and registered with SEBI as Bankers to an Issue and with
whom the Public Issue Account will be opened, in this case being [●]
Banker to the Agreement dated [●] to be entered into amongst the Company, Lead Manager, the Registrar, the
Issue Agreement selling shareholders and the Banker of the Issue.
Basis of Allotment The basis on which Equity Shares will be allotted to the Investors under the Issue and which is
described in ―Issue Procedure‖ on page 261 of the Draft Prospectus
Broker Centres Broker centres notified by the Stock Exchanges, where the Applicants can submit the Application
Forms to a Registered Broker.
Business Day Monday to Friday (except public holidays).
Client Id Client Identification Number maintained with one of the Depositories in relation to demat account
Collecting Depository A depository participant as defined under the Depositories Act, 1996, registered with SEBI and
Participants or CDPs who is eligible to procure Applications at the Designated CDP Locations in terms of circular no.
3
CIR/CFD/POLICYCELL/11/2015 dated November 10, 2015 issued by SEBI
Controlling Branches of Such branches of the SCSBs which coordinate with the LM, the Registrar to the Issue and the
the SCSBs Stock Exchange.
Depository Participant A Depository Participant as defined under the Depositories Act
Designated Date On the Designated Date, the amounts blocked by SCSBs are transferred from the ASBA
Accounts to the Public Issue Account and/ or unblocked in terms of the Draft Prospectus
Designated Market Beeline Broking Limited
Maker
Designated Stock Emerge platform of National Stock Exchange of India Limited (NSE)
Exchange
Eligible NRI NRIs from jurisdictions outside India where it is not unlawful to make an issue or invitation under
the Issue and in relation to whom the Prospectus constitutes an invitation to subscribe to the
Equity Shares Allotted herein
FPI / Foreign Portfolio A Foreign Portfolio Investor who has been registered pursuant to the of Securities and Exchange
Investor Board of India (Foreign Portfolio Investors) Regulations, 2014, provided that any FII or QFI who
holds a valid certificate of registration shall be deemed to be a foreign portfolio investor till the
expiry of the block of three years for which fees have been paid as per the SEBI (Foreign
Institutional Investors) Regulations, 1995, as amended
Fresh issue 12,67,200 Equity Shares of face value of `10/- each fully paid of the Company for cash at price
of ` 125/- (including a premium of ` 115) per Equity Share aggregating ` 1584.00 lakhs in the
Initial Public Issue of Akash Infra-Projects Limited.
General Information The General Information Document for investing in public issues prepared and issued in
Document (GID) accordance with the circulars (CIR/CFD/DIL/12/2013) dated October 23, 2013, notified by SEBI
and updated pursuant to the circular (CIR/CFD/POLICYCELL/11/2015) dated November 10,
2015 and (SEBI/HO/CFD/DIL/CIR/P/2016/26) dated January 21, 2016 notified by the SEBI.
IPO Initial Public Offering.
Issue/Issue size/ initial Public Issue of 20,40,000 Equity Shares of Rs. 10/- each (―equity shares‖) of Akash Infra-
public issue/Initial Public Projects Limited (―AIPL‖ or the ―company‖ or the ―issuer‖) for cash at a price of Rs. 125/- Per
Offer/Initial Public Share (the ―Issue Price‖), aggregating to Rs. 2550.00 lacs (―the issue‖), consisting of fresh issue
Offering of 12,67,200 Equity Shares aggregating to Rs 1584.00 lakhs and an offer for sale of 7,72,800
equity shares by Mr. Yoginkumar Patel and Mr. Ambusinh Gol (―collectively referred as Selling
Shareholders And Promoters‖) aggregating to Rs. 966.00 lakhs (―offer for sale‖).
Issue Account / Public Account opened with Bankers to the Issue for the purpose of transfer of monies from the ASBA
Issue Account Account on or after the Issue Opening Date.
Issue Closing date The date on which the Issue closes for subscription
Issue Opening date The date on which the Issue opens for subscription
Issue Period The period between the Issue Opening Date and the Issue Closing Date inclusive of both days
and during which prospective Applicants may submit their application.
Issue Price The price at which the Equity Shares are being issued and offered by our Company and selling
shareholders respectively under this Draft Prospectus being ` 125/-(Including premium of `115).
Issue Proceeds Proceeds to be raised by our Company through this Issue, for further details please refer chapter
titled ―Objects of the Issue‖ at page no.60 of the Draft Prospectus.
Lead Manager/LM Tipsons Consultancy Services Private Limited
Listing Agreement Unless the context specifies otherwise, this means the Equity Listing Agreement to be signed
between our Company and the SME Platform of NSE.
Market Making The Market Making Agreement dated January 23, 2017 between our Company and Market
Agreement Maker being ―Beeline Broking Limited‖.
Market Maker The Reserved portion of 1,08,000 Equity Shares of ` 10/- each at ` 125/- per Equity Share
Reservation Portion aggregating to ` 135.00 lakhs for Designated Market Maker in the Initial Public Issue of Akash
Infra-Projects Limited.
Memorandum of The arrangement entered into on January 23, 2017 between our Company, and Lead Manager
Understanding pursuant to which certain arrangements are agreed in relation to the Issue
Mutual Funds A Mutual Fund registered with SEBI under SEBI (Mutual Funds) Regulations, 1996
Net Issue The Issue (excluding the Market Maker Reservation Portion) of 19,32,000 Equity Shares of `10/-
each at ` 125/- per Equity Share aggregating to ` 2415.00 lakhs by Akash Infra-Projects Limited.
Net Proceeds The Issue Proceeds received from the fresh Issue excluding Issue related expenses. For further
information on the use of Issue Proceeds and Issue expenses, please refer to the section titled
"Objects of the Issue" beginning on page 60 of this Draft Prospectus.
Non-Institutional Investors other than Retail Individual Investors, NRIs and QIBs who apply for the Equity Shares
Investors / Applicant of a value of more than ` 2,00,000/-
NSEL/NSE National Stock Exchange of India Limited
NSE EMERGE The SME platform of NSE, approved by SEBI as an SME Exchange for listing of equity shares
offered under Chapter X-B of the SEBI ICDR Regulations.
Offer for Sale to the 7,72,800 Equity Shares of face value of ` 10/- each fully paid of the Company for cash at price of
Public ` 125/- per Equity Share aggregating ` 966.00 lakhs by the selling shareholders Mr. Yoginkumar
4
Patel and Mr. Ambusinh Gol in the Initial Public Issue of Akash Infra-Projects Limited.
Other Investors Investors other than Retail Individual Investors. These include individual applicants other than
retail individual investors and other investors including corporate bodies or institutions
irrespective of the number of specified securities applied for.
Overseas Corporate Overseas Corporate Body means and includes an entity defined in clause (xi) of Regulation 2 of
Body/ OCB the Foreign Exchange Management (Withdrawal of General Permission to Overseas Corporate
Bodies (OCB‗s) Regulations 2003 and which was in existence on the date of the commencement
of these Regulations and immediately prior to such commencement was eligible to undertake
transactions pursuant to the general permission granted under the Regulations. OCBs are not
allowed to invest in this Issue.
Prospectus The Prospectus, to be filed with the RoC containing, inter alia, the Issue opening and closing
dates and other information.
Public Issue Account Account opened with the Bankers to the Issue to receive monies from the SCSBs from the bank
account of the Applicant, on the Designated Date.

CONVENTIONAL/GENERAL TERMS
TERM DESCRIPTION
AOA/Articles/ Articles of Articles of Association of Akash Infra-Projects Limited
Association
Audit Committee The Committee of the Board of Directors constituted as the Company‘s Audit Committee in
accordance with Section 177 of the Companies Act, 2013 and Regulation 18 of SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015
Auditor / Statutory M/s B UPADHYAY and Co, Chartered Accountants, the Statutory Auditors of our Company.
Auditor
Banker to the Issue [•]
Banker to our Company State Bank of India, Oriental Bank of Commerce and HDFC Bank Limited
Board of Directors / The Board of Directors of Akash Infra-Projects Limited, including all duly constituted
Board/Board/Director(s) Committee(s) thereof.
CIN Company Identification Number
Companies Act Unless specified otherwise, this would imply to the provisions of the Companies Act, 2013 (to the
extent notified) and / or Provisions of the Companies Act, 1956 w.r.t. to the sections which have
not yet been replaced by the Companies Act, 2013 through any official notification.
Company Secretary and The Company Secretary and Compliance Officer of the Company being Ms. Upasna Patel.
Compliance Officer
Depositories A depository registered with SEBI under the SEBI (Depositories and Participant) Regulations,
1996, in this case being National Securities Depository Limited (NSDL) and Central Depository
Services (India) Limited (CDSL).
Depositories Act The Depositories Act, 1996 as amended from time to time.
DIN Directors Identification Number
Director(s)/ Our Director(s) of Akash Infra-Projects Limited, unless otherwise specified.
Directors
Equity Shares / Shares Equity Shares of our Company of face value of ` 10 each unless otherwise specified in the
context thereof.
Equity Shareholders Persons/ Companies holding Equity Shares of Our Company.
EPS Earnings Per Share
Executive Directors Managing Directors & Whole-time Directors of our Company.
FIPB Foreign Investment Promotion Board
FVCI Foreign Venture Capital Investor registered under the Securities and Exchange Board of India
(Foreign Venture Capital Investors) Regulations, 2000, as amended from time to time.
GIR Number General Index Registry Number
GoI/ Government Government of India
HUF Hindu Undivided Family
Indian GAAP Generally Accepted Accounting Principles in India
IPO Initial Public Offering
Key Managerial The officers vested with executive powers and the officers at the level immediately below the
Personnel / Key Board of Directors as described in the section titled ―Our Management‖ on page 95 of this Draft
Managerial Employees Prospectus.
MOA/ Memorandum/ Memorandum of Association of Akash Infra-Projects Limited, as amended from time to time.
Memorandum of
Association
MD Managing Director
Nomination and Nomination and Remuneration Committee of our Company constituted in accordance with
5
Remuneration Regulation 19 of the SEBI Listing Regulations and Companies Act, 2013
Committee
Non Resident A person resident outside India, as defined under FEMA
Non-Resident Indian/ A person resident outside India, who is a citizen of India or a Person of Indian Origin as defined
NRI under FEMA Regulations.
NSE NSE Limited (the Designated Stock Exchange)
Overseas Corporate A company, partnership, society or other corporate body owned directly or indirectly to the
Body / OCB extent of at least 60% by NRIs, including overseas trusts in which not less than 60% of
beneficial interest is irrevocably held by NRIs directly or indirectly as defined under the
Foreign Exchange Management (Deposit) Regulations, 2000. OCBs are not allowed to
invest in this Issue.
Peer Review Auditors M/s Doshi Maru and Associates, Chartered Accountants, the Peer Review Auditors of our
Company.
Person or Persons Any individual, sole proprietorship, unincorporated association, unincorporated organization,
body corporate, corporation, company, partnership, limited liability partnership, limited liability
company, joint venture, or trust or any other entity or organization validly constituted and/or
incorporated in the jurisdiction in which it exists and operates, as the context requires.
Promoters Promoters of the Company being Mr. Yoginkumar H Patel and Mr. Ambusinh P Gol
Promoter Group Unless the context otherwise specifies, refers to those entities mentioned in the section titled
Companies/Group ―Our Promoters and Promoters Group‖ on page 108 of this Draft Prospectus.
Companies / Group
Enterprises
Registered Office of our 2 Ground Floor Abhishek Complex, Opp. Hotel Haveli, Sector-11 Gandhinagar Gujarat 382011
Company India.
Restated Financial The financial statements of our Company‘s assets and liabilities as at August 31, 2016, March
Information or Restated 31, 2016, 2015, 2014, 2013 & 2012 and the statements of profit and loss and cash flows for the
Standalone Financial period ended August 31, 2016 and years ended March 31, 2016, of our Company prepared in
Statements or Restated accordance with Indian GAAP and the Companies Act and restated in accordance with the SEBI
Financial Statements ICDR Regulations and the Revised Guidance Note on Reports in Company Prospectuses
(Revised) issued by the ICAI, together with the schedules, notes and annexure thereto.
RoC Registrar of Companies, Gujarat, Dadra and Nagar Haveli
SCRA Securities Contracts (Regulation) Act, 1956 as amended from time to time
SCRR Securities Contracts (Regulation) Rules, 1957
SEBI The Securities and Exchange Board of India constituted under the SEBI Act
SEBI Act Securities and Exchange Board of India Act, 1992
SEBI Insider Trading The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015 as
Regulations amended, including instructions and clarifications issued by SEBI from time to time.
SEBI Regulation/ The SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 as amended
SEBI(ICDR) from time to time.
Regulations
SEBI Takeover Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeover)
Regulations or SEBI Regulations, 2011, as amended from time to time.
(SAST) Regulations
SICA Sick Industrial Companies (Special Provisions) Act, 1985
SME Platform of The SME platform of NSE for listing of Equity Shares offered under Chapter X-B of the SEBI
NSE/Stock Exchange (ICDR) Regulations
Stakeholders‘ Stakeholder‘s relationship committee of our Company constituted in accordance with Regulation
Relationship Committee 20 of the SEBI (LODR) Regulations and Companies Act.
Stock Exchange Unless the context requires otherwise, refers to, National Stock Exchange of India Limited
SWOT Analysis of strengths, weaknesses, opportunities and threats
WTD Whole Time Director
Qualified Institutional The term "Qualified Institutional Buyers" or "QIBs" shall have the meaning ascribed to such term
Buyers or under the SEBI ICDR Regulations and shall mean and include (i) a Mutual Fund, VCF and FVCI
registered with SEBI; (ii) an FII and sub-account (other than a sub-account which is a foreign
corporate or foreign individual), registered with SEBI; (iii) a public financial institution as defined
in Section 4A of the Companies Act; (iv) a scheduled commercial bank; (v) a multilateral and
bilateral development financial institution; (vi) a state industrial development corporation; (vii) an
insurance company registered with the Insurance Regulatory and Development Authority; (viii) a
provident fund with minimum corpus of ` 250 million; (ix) a pension fund with minimum corpus of
` 250 million; (x) National Investment Fund set up by resolution no. F. No. 2/3/2005-DDII dated
November 23, 2005 of the Government of India published in the Gazette of India; (xi) insurance
funds set up and managed by army, navy or air force of the Union of India; and (xii) insurance
funds set up and managed by the Department of Posts, India eligible for applying in this Issue.
Registrar/Registrar to M/s Purva Sharegistry (India) Private Limited
the Issue
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Reserved Category/ Categories of persons eligible for making application under reservation portion.
Categories
Registered Broker Individuals or companies registered with SEBI as ―Trading Members‖ (except Syndicate/Sub-
Syndicate Members) who hold valid membership of either BSE or NSE having right to trade in
stocks listed on Stock Exchanges, through which investors can buy or sell securities listed on
stock exchanges, a list of which is available on
http://www.nseindia.com/membership/content/cat_of_mem.htm
Retail Individual Individual investors (including HUFs, in the name of Karta and Eligible NRIs) who apply for the
Investor(s) Equity Shares of a value of not more than ` 2,00,000
Self-Certified Syndicate The banks which are registered with SEBI under the Securities and Exchange Board of India
Banks or SCSBs (Bankers to an Issue) Regulations, 1994 and offer services in relation to ASBA, including
blocking of an ASBA Account in accordance with the SEBI Regulations and a list of which is
available on www.sebi.gov.in/pmd/scsb.pdf or at such other website as may be prescribed by
SEBI from time to time.
SEBI The Securities and Exchange Board of India constituted under the SEBI Act
SEBI Act Securities and Exchange Board of India Act, 1992
SEBI Regulation/ SEBI The SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 as amended
(ICDR) Regulations
SME Exchange SME Platform of the NSE i.e. NSE EMERGE
SME Platform The SME Platform of NSE i.e. NSE EMERGE for listing equity shares offered under Chapter X-B
of the SEBI ICDR Regulation which was approved by SEBI as an SME Exchange on September
27, 2011
Transaction Registration The slip or document issued by the member(s) of the Syndicate to the Applicant as proof of
Slip/ TRS registration of the Application.
Underwriters Tipsons Consultancy Services Private Limited and
Beeline Broking Limited
Underwriting Agreement The Agreement among the Underwriters and our Company
Working Days All trading days of stock exchanges excluding Sundays and bank holidays in accordance with the
SEBI circular no. SEBI/HO/CFD/DIL/CIR/P/2016/26 dated January 21, 2016.

The words and expression used but not defined in this Prospectus will have the same meaning as assigned to such
terms under the Companies Act, SEBI Act, the SCRA, the Depositories Act and the rules and regulations made
thereunder.
Notwithstanding the following: -
i. In the section titled ― “Main Provisions of the Articles of Association” beginning on page 285 of this Draft
Prospectus, defined terms shall have the meaning given to such terms in that section;
ii. In the section titled ― “Financial Statements” beginning on page 117 of this Draft Prospectus, defined terms shall
have the meaning given to such terms in that section;

iii. In the section titled ― “Risk Factor” beginning on page 11 of this Draft Prospectus, defined terms shall have the
meaning given to such terms in that section;

iv. In the chapter titled ― “Statement of Tax Benefits‟ beginning on page 68 of this Draft Prospectus, defined terms shall
have the meaning given to such terms in that chapter; and In the chapter titled ― “Management„s Discussion and
Analysis of Financial Condition” and “Results of Operations” beginning on page 216 of this Draft Prospectus, defined
terms shall have the meaning given to such terms in that section.

v. In the section titled ― “Industry Overview” beginning on page 70 of this Draft Prospectus, defined terms shall have the
meaning given to such terms in that section;

vi. In the section titled ―“Outstanding Litigation and Material Developments” beginning on page 225 of this Draft
Prospectus, defined terms shall have the meaning given to such terms in that section

7
PRESENTATION OF FINANCIAL, INDUSTRY AND MARKET DATA

CERTAIN CONVENTIONS

All references in the Draft Prospectus to ―India‖ are to the Republic of India. All references in the Draft Prospectus to the
―Government‖ are to the Government of India. All references in the Draft Prospectus to the ―U.S.‖, ―USA‖ or ―United
States‖ are to the United States of America.

In this Draft Prospectus, the terms ―we‖, ―us‖, ―our‖, the ―Company‖, ―our Company‖, ―Akash Infra-Projects Limited‖,
―AIPL‖, and, unless the context otherwise indicates or implies, refers to Akash Infra-Projects Limited (Formerly known as
Akash Infra-Projects Private Limited).

USE OF FINANCIAL DATA

Unless stated otherwise, throughout this Draft Prospectus, all figures have been expressed in Rupees and Lakh. Unless
stated otherwise, the financial data in the Draft Prospectus is derived from our financial statements prepared and restated
for the financial year ended 2016, 2015, 2014, 2013 and 2012 and also for the stub period ended August 31, 2016 in
accordance with Indian GAAP, the Companies Act and SEBI (ICDR) Regulations, 2009 included under Section titled
“Auditors Report and Financial Information of the Company” beginning on page 117 of this Draft Prospectus. Accordingly,
financial information relating to us is presented on Standalone basis only. Our fiscal year commences on April 1st of
every year and ends on March 31st of every next year.

There are significant differences between Indian GAAP, the International Financial Reporting Standards (―IFRS‖) and the
Generally Accepted Accounting Principles in the United States of America (―U.S. GAAP‖). Accordingly, the degree to
which the Indian GAAP financial statements included in this Draft Prospectus will provide meaningful information is
entirely dependent on the reader‘s level of familiarity with Indian accounting practice and Indian GAAP. Any reliance by
persons not familiar with Indian accounting practices on the financial disclosures presented in this Draft Prospectus
should accordingly be limited. We have not attempted to explain those differences or quantify their impact on the financial
data included herein, and we urge you to consult your own advisors regarding such differences and their impact on our
financial data.

Any percentage amounts, as set forth in ―Risk Factors‖, ―Business Overview‖, ―Management‘s Discussion and Analysis of
Financial Condition and Results of Operations‖ and elsewhere in the Draft Prospectus unless otherwise indicated, have
been calculated on the basis of the Company‘s restated financial statements prepared in accordance with the applicable
provisions of the Companies Act, Indian GAAP and restated in accordance with SEBI (ICDR) Regulations, as stated in
the report of our Peer Review Auditor, set out in section titled “Auditors Report and Financial Information of the Company”
beginning on page 117 of this Draft Prospectus.
For additional definitions used in this Draft Prospectus, see the section ―Definitions and Abbreviations‖ on page 1 of this
Draft Prospectus.
CURRENCY OF PRESENTATION

In this Draft Prospectus, references to ―Rupees‖ or ―Rs.‖ or ―INR‖ are to Indian Rupees, the official currency of the
Republic of India. All references to ―$‖, ―US$‖, ―USD‖, ―U.S. $‖ or ―U.S. Dollars‖ are to United States Dollars, the official
currency of the United States of America. Throughout the Draft Prospectus all figures have been expressed in thousands,
Lakhs/Lacs, Million and Crore, Unless Otherwise Stated

In this Draft Prospectus, unless the context otherwise requires, all references to one gender also refers to another gender
and the word ―Lac / Lakh‖ means ―one hundred thousand‖, the word ―million (mn)‖ means ―Ten Lac / Lakh‖, the word
―Crore‖ means ―ten million‖ and the word ―billion (bn)‖ means ―one hundred crore‖. In this Draft Prospectus, any
discrepancies in any table between total and the sum of the amounts listed are due to rounding-off.

Any percentage amounts, as set forth in "Risk Factors", "Business Overview", "Management's Discussion and Analysis of
Financial Conditions and Results of Operation‖ on page 11, 75 & 216 in the Draft Prospectus, unless otherwise indicated,
have been calculated based on our restated financial statements prepared in accordance with Indian GAAP.
USE OF INDUSTRY & MARKET DATA

Unless stated otherwise, industry and market data and forecast used throughout the Draft prospectus was obtained from
internal Company reports, data, websites, Industry publications report as well as Government Publications. Industry
publication data and website data generally state that the information contained therein has been obtained from sources

8