The Members of
Scan Steels Limited
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Scan Steels Limited(Formerly Known as Clarus Infrastructure Realties Limited) ('the Company') which comprisethe balance sheet as at 31 March 2015 the statement of profit and loss and the cash flowstatement for the year then ended and a summary of significant accounting policies andother explanatory information.
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 preparationand presentation of these standalone financial statements that give a true and fair viewof the financial position financial performance 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 read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.
Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.
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 31st March 2015 and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2015 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Companies Act 2013 we give in the Annexure a statement on the matters specified inthe paragraph 3 and 4 of the Order to the extent applicable.
2. As required by Section 143 (3) of the Act we report that:
(a) We have sought and obtained all the information and explanations which to the bestof 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 and the cash flow statementdealt 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 read with Rule 7 of theCompanies (Accounts) Rules 2014;
(e) On the basis of the written representations received from the directors as on 31March 2015 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2015 from being appointed as a director in terms of Section164 (2) of the Act; and
(f) 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 Company has disclosed the impact of pending litigations on its financialposition in its financial statements - Refer Note 2(1) to the financial statements;
ii. The Company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.
For SRB & Associates
Firm Regn. No: 310009E
29th May 2015
Annexure to the Independent Auditors' Report
The Annexure referred to in our Independent Auditors' Report to the members of theCompany on the standalone financial statements for the year ended 31 March 2015 we reportthat:
1. (a) The Company has maintained proper records showing full particulars includingquan titative details and situation of fixed assets.
(b) As explained to us the fixed assets have been physically verified by theManagement in phased periodic manner which in our opinion is reasonable having regard tothe size of the Company and the nature of its assets. No material discrepancies have beennoticed on such verification
(c) Fixed assets disposed off during the year were not substantial and thereforedon't affect the going concern assumption.
2. In respect of its Inventories:
(a) As explained to us Stocks have been physically verified by the management atregular interval during the year. The frequency of verification is reasonable.
(b) In our opinion and according to the information and explanation given to us theprocedures of physical verification of inventory followed by the management are reasonableand adequate in relation to the size of the Company and the nature of its business.
(c) The company has maintained proper records of inventories. As explained to us therewas no material discrepancies noticed on physical verification of inventories as comparedto book records.
3. (a) The Company has not granted any loan during the year to the Related partiescovered in the register maintained under section 189 of the Companies Act 2013 ('theAct'). However the company has taken loan from parties where maximum outstanding as on31.03.2015 is Rs.25241699.00
(b) In the case of the loans granted to the bodies corporate listed in the registermaintained under section 189 of the Act the borrowers have been regular in the payment ofthe interest as stipulated. The terms of arrangements do not stipulate any repaymentschedule and the loans are repayable on demand. Accordingly paragraph 4(iii)(c) of theOrder is not applicable to the Company in respect of repayment of the principal amount.
(c) There are no overdue amounts of more than rupees one lakh in respect of the loansgranted to the bodies corporate listed in the register maintained under section 189 of theAct.
4. In our opinion and explanations given to us there are adequate internal controlsystems commensurate with the size of the Company and the nature of its business withregard to purchases of inventory fixed assets and with regard to the sale of goods. Wehave not observed any major weaknesses in internal control system of the Company.
5. The Company has accepted deposits from the public and in our opinion and accordingto the information and explanation given to us the directives issued by Reserve Bank ofIndia with respect to relevant provisions of Companies Act2013 and rules framed thereunder where applicable have been complied with. We are informed that no order has beenpassed by the Company Law Board or National Company Law Tribunal or Reserve Bank of Indiaor any court or any other tribunal in this context.
6. According to information and explanations given to us the company is maintainingcost records as prescribed by Central Government under section 148(1) of the Act for theproducts of company.
7. a) According to the information and explanations given to us and on the basis of ourexami nation of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including provident fund income taxsales tax wealth tax service tax duty of customs value added tax cess and othermaterial statutory dues have been regularly deposited during the year by the Company withthe appropriate authorities. As explained to us the Company did not have any dues onaccount of employees' state insurance and duty of excise.
According to the information and explanations given to us no undisputed amountspayable in respect of provident fund income tax sales tax wealth tax service tax dutyof customs value added tax cess and other material statutory dues were in arrears as at31 March 2015 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us there are no materialdues of wealth tax duty of customs and cess which have not been deposited with theappropriate authorities on account of any dispute. However according to information andexplanations given to us the following dues of income tax sales tax service tax andvalue added tax have not been deposited by the Company on account of disputes:
STATEMENT OF DISPUTED DUES
|Name of the Statute ||Nature of dues ||Amount(T) ||Period to which the amt relates ||Forum where dispute is pending |
|OVAT Act. ||OVAT ||5667306.00 ||2007-08 2008-09 & 2009-10 ||Additional Commissioner of Commercial Tax |
|OVAT Act. ||OVAT ||6940305.00 ||2002-03 2003-04 & 2004-05 ||Assistant Commissioner of Commercial Tax RKLA |
|OVAT Act. ||OVAT ||653111.00 ||2009-10 & 2010-11 ||Deputy Commissioner of Commercial Tax Rourkela II Circle. |
|OVAT Act. ||OVAT ||43382725.00 ||2005-06 & 2006-07 ||High Court of Odisha Cuttack. |
|OVAT Act. ||OVAT ||317563.00 ||2008-09 & 2010-11 ||Joint Commissioner of Commercial Tax. |
|OVAT Act. ||OST ||1879165.00 ||2001-02 2003-04 & 2004-05 ||Sales Tax Tribunal Cuttack. |
|Income Tax Act. ||Income Tax ||8893575.00 ||2009-10 & 2011-12 ||The Commissioner of Income Tax |
|TOTAL || ||67733750.00 || || |
(c) According to the information and explanations given to us the amounts which wererequired to be transferred to the investor education and protection fund in accordancewith the relevant provisions of the Companies Act 2013 and rules there under has beentransferred to such fund within time.
8 The company has no accumulated losses at the end of the financial year and hasincurred cash profit of 176718631.00 during the financial year covered by our audit andin the immediately preceding financial year.
9 The Company did not have any outstanding dues to financial institutions banks ordebenture holders during the year.
10 In our opinion and according to the information and explanations given to us theCompany The Company has given guarantee for loans taken by its sister concern from banksor financial institutions.
11 The Company has raised term loan Nil during the year and the same has been appliedfor the purpose for which they were raised.
12 According to the information and explanations given to us no material fraud on orby the Company has been noticed or reported during the course of our audit.
For SRB & Associates
Firm Regn. No: 310009E
29th May 2015