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Sanco Trans Ltd.

BSE: 523116 Sector: Others
NSE: N.A. ISIN Code: INE391G01012
BSE LIVE 15:16 | 18 Aug 244.55 -10.45
(-4.10%)
OPEN

255.00

HIGH

255.00

LOW

242.35

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 255.00
PREVIOUS CLOSE 255.00
VOLUME 306
52-Week high 328.90
52-Week low 242.35
P/E 135.11
Mkt Cap.(Rs cr) 44
Buy Price 244.55
Buy Qty 10.00
Sell Price 267.70
Sell Qty 1.00
OPEN 255.00
CLOSE 255.00
VOLUME 306
52-Week high 328.90
52-Week low 242.35
P/E 135.11
Mkt Cap.(Rs cr) 44
Buy Price 244.55
Buy Qty 10.00
Sell Price 267.70
Sell Qty 1.00

Sanco Trans Ltd. (SANCOTRANS) - Auditors Report

Company auditors report

TO THE MEMBERS OF SANCO TRANS LIMITED

Report on the Standalone Financial Statements

1. We have audited the accompanying standalone financial statements of SANCO TRANSLIMITED ("the Company") which comprise the Balance Sheet as at March312016 the Statement of Profit and Loss and the Cash Flow Statement for the year thenended and a summary of the significant accounting policies and other explanatoryinformation.

Management's Responsibility for the Standalone Financial Statements

2. 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 and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under section 133 of the Act.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; 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 financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditor's Responsibility

3. 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 accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder and the Order under section 143(11) ofthe Act.

4. We conducted our audit of the Standalone Financial Statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.

5. An audit involves performing procedures to obtain audit evidence about the amountsand the 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. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements.

6. 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.

Opinion

7. 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 312016 and its profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

8. 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.

e) On the basis of the written representations received from the directors as on March312016 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2016 from being appointed as a director in terms of Section 164(2) of theAct.

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". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.

g) 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 in accordance with the generally accepted accounting practicedisclosed the impact of pending litigations on its financial position in its financialstatements - Also Refer Note 3.4 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.

9. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give in"Annexure B" a statement on the matters specified in paragraphs 3 and 4 of theOrder.

For M.S. Krishnaswami & Rajan
Chartered Accountants
Registration No. 01554S
May 30 2016 M.S. Murali -Partner
Chennai Membership No. 26453

Annexure "A" to the Independent Auditor's Report

(Referred to in paragraph 8 under 'Report on Other Legal and Regulatory Requirements'of our report 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")

1. We have audited the internal financial controls over financial reporting of SANCOTRANS LIMITED ("the Company") as of March 31 2016 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

Management's Responsibility for Internal Financial Controls

2. The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe designimplementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Auditor's Responsibility

3. Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the"Guidance Note") issued by the Institute of Chartered Accountants of Indiaand the Standards on Auditing prescribed under Section 143(10) of the Companies Act 2013to the extent applicable to an audit of internal financial controls. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated effectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the 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 judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

5. 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

6. A company's internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations 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

7. 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

8. In our opinion to the best of our information and according to the explanationsgiven to us the Company has in all material respects an adequate internal financialcontrols system over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at March 312016 based on the internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For M.S. Krishnaswami & Rajan
Chartered Accountants
Registration No. 01554S
May 30 2016 M.S. Murali -Partner
Chennai Membership No. 26453

Annexure "B" to the Independent Auditor's Report

(Referred to in paragraph 9 under 'Report on Other Legal and Regulatory Requirements'section of our report of even date on the accounts of SANCO TRANS LIMITED ("theCompany") for the year ended March 31 2016)

(i) In respect of its fixed assets:

a) The Company has maintained proper records showing full particulars includingquantitative details and situation of the fixed assets.

b) The fixed assets were physically verified during the year by the Management inaccordance with a phased programme of verification which in our opinion provides forphysical verification of all the fixed assets at reasonable intervals having regard to thesize of the Company nature and value of its assets. According to the information andexplanation given to us no material discrepancies were noticed on such verification.

c) According to the information and explanations given to us and the records examinedby us and based on the examination of the registered sale deeds/ transfer deeds/conveyance deeds provided to us we report that the title deeds comprising all theimmovable properties of land and buildings are held in the name of the Company as at thebalance sheet date.

(ii) As explained to us the inventories were physically verified during the year bythe Management at reasonable intervals and no material discrepancies were noticed onphysical verification.

(iii) The Company has granted loan to one of its subsidiary companies covered in theRegister maintained under Section 189 of the Companies Act 2013. In our opinion and basedon the information and explanations furnished to us we report that

a. The terms and conditions of the grant of such loans are not prejudicial to theCompanies interest;

b. The schedule of repayment of principal and repayment of interest has been stipulatedand the repayments/receipts are regular; and

c. There is no amount overdue for more than 90 days.

(iv) The company has not granted any loans secured or unsecured to firms LimitedLiability Partnerships or other parties covered in the register maintained under section189 of the Companies Act2013.

(v) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Sections 185 and 186 of the Companies Act2013 in respect of grant of loans making investments and providing guarantees andsecurities as applicable.

(vi) According to information and explanations given to us the Company has notaccepted any deposits during the year and accordingly the provisions of Clause 5 ofparagraph 3 of the Order are not applicable to the Company.

(vii) In our opinion and according to the information and explanations given to ustherequirement for maintenance of cost records pursuant to the Companies (Cost Records andAudit) Rules2014 specified by the Central Government of India under section 148 of theCompanies Act 2013 are not applicable to the Company.

(viii) According to the information and explanations given to us and the books ofaccount examined by us in respect of statutory dues:

a) The Company has generally been regular in depositing undisputed statutory duesincluding Provident Fund Employees' State Insurance Income-tax Sales Tax Service TaxCustoms Duty Excise Duty Value Added Tax Cess and other material statutory duesapplicable to it with the appropriate authorities during the year. There were noundisputed amounts payable in respect of the aforesaid statutory dues in arrears as atMarch 312016 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 dues ofSales Tax Excise Duty and Cess which has not been deposited on account of any disputewith the relevant authorities. Details of dues(including interest penalty etc.) ofIncome-tax Service Taxand Customs Duty which have not been deposited as at March 312016 on account of disputes are as stated below:

Name of the statute Nature of dues Period to which the amount relates Disputed dues not deposited Rs Forum where the dispute is pending
1 The Income tax Act 1961 Tax Deducted at Source Financial Year 2007 1189280 CIT(A)
2 The Income tax Act 1961 Tax Deducted at Source Financial Year 2008 413480 CIT(A)
3 The Income tax Act 1961 Tax Deducted at Source Financial Year 2009 109000 CIT(A)
4 The Income tax Act 1961 Tax Deducted at Source Financial Year 2009 268820 CIT(A)
5 The Income tax Act 1961 Income Tax Assessment Year 2006-07 88670 A.O
6 The Income tax Act 1961 Income Tax Assessment Year 2013-14 14182090 A.O
7 Central Excise Act 1944 Service Tax 18-04-2006 to 31-03-2008 8015138 CESTAT
8 Customs Act Duty Drawback Claims Financial Years 2008-09 200910 2010-11 1832000 CESTAT

(ix) The Company has neither borrowed from financial institutions or Government nor arethere any dues to debenture holders. Hence the question of commenting on defaults if anyin respect of such borrowings does not arise. With regard to dues to borrowings frombanks certain delays in their repayment were noticed as per the books of accounts whichare detailed below.

(a) Principal amount of Rs. 2014965/- due to HDFC Bank Limited on 7th October 2015.

(b) Principal amount of Rs. 625000/- per month due to Indian Bank on the 15th of thefollowing month for the period August 2015 to January 2016 were paid with delays rangingfrom 5 days to 94 days.

(x) The company has not raised any money by way of initial public offer or furtherpublic offers (including debt instruments) during the year. Hence reporting onutilisation of such money does not arise. In our opinion and according to the informationand explanation given to us term loans have been applied by the Company during the yearfor the purpose for which they were raised.

(xi) To the best of our knowledge and belief and according to the information andexplanations given to us and considering the size and nature of the Company's operationsno fraud by the Company has been noticed or reported during the year.

(xii) 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 CompaniesAct 2013.

(xiii) The Company is not a Nidhi Company and hence reporting under clause (xii) ofParagraph 3 of the Order is not applicable to the Company.

(xiv) In our opinion and according to the information and explanations given to us theCompany has complied with Section 177 and 188 of the Companies Act 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the financial statements as required by the applicableaccounting standards. Refer note 3.12.

(xv) During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures under Section 42 of theCompanies Act 2013.

(xvi) In our opinion and according to the information and explanations given to us theCompany has not entered into any non-cash transactions during the year with its directorsor persons connected with him and hence provisions of section 192 of the Companies Act2013 are not applicable.

(xvii) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For M.S. Krishnaswami & Rajan
Chartered Accountants
Registration No. 01554S
May 30 2016 M.S. Murali -Partner
Chennai Membership No. 26453