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Scan Projects Ltd.

BSE: 531797 Sector: Industrials
NSE: N.A. ISIN Code: INE393D01015
BSE 05:30 | 01 Jan Scan Projects Ltd
NSE 05:30 | 01 Jan Scan Projects Ltd

Scan Projects Ltd. (SCANPROJ) - Auditors Report

Company auditors report

ON FINANCIAL STATEMENTS

To

The Members of

Scan Projects Limited

(Formerly Known as Ambala Cements Limited)

Report on the Financial Statements

We have audited the accompanying financial statements of SCAN PROJECTS LIMITED(FORMERLY KNOWN AS AMBALA CEMENTS LIMITED) YAMUNANAGAR (‘theCompany’) which comprise the Balance Sheet as at March 31 2017 and the Statement ofProfit and Loss and the Cash Flow Statement for the year then ended and a summary of thesignificant accounting policies and other explanatory information in which areincorporated the Returns for the year ended on that date audited by the branch auditor ofthe Company’s branch at Nepal.

Management’s Responsibility for the 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 financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of these financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditors’ Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit.

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.

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 ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company’s Board of 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 financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India: (a) In the case of the Balance Sheet of the stateof affairs of the Company as at 31st March 2017; (b) In the case of theStatement of Profit and Loss of the profit for the year ended on that date; (c) In thecase of the Cash Flow Statement of the 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 2016 (‘theOrder’) issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Companies Act 2013 we give in the Annexure "A" a statementon the matters specified in paragraphs 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 ouropinion proper books of account as required by law have been kept by the Company so faras it appears from our examination of those books and proper returns adequate for thepurposes of our audit have been received from Nepal Branch not visited by us; (c) Thereports on the accounts of the Nepal branch office of the Company audited under Section143(8) of the Act by branch auditor have been sent to us and have been properly dealt byus in preparing this report. (d) The Balance Sheet the Statement of Profit and Loss andthe Cash Flow Statement dealt with by this Report are in agreement with the books ofaccount and with the returns received from Nepal branch not visited by us; (e) In ouropinion the aforesaid financial statements comply with the Accounting Standards specifiedunder Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.

(f) On the basis of the written representations received from the Directors as on March31 2017 taken on record by the Board of Directors none of the Directors is disqualifiedas on March 31 2017 from being appointed as a Director in terms of Section 164 (2) of theAct. (g) 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 "B". (h) With respect to the other matters to beincluded in the Auditors’ Report in accordance with Rule 11 of the Companies (Auditand Auditors) Rules 2014 in our opinion and to the best of our information and accordingto the explanations given to us: i) The Company has disclosed the impact of pendinglitigations on its financial position in its financial statements as of March 31 2017;ii) The Company has made provision in its financial statements as required under theapplicable law or accounting standards for material foreseeable losses on long termcontracts; iii) There were no amounts which required to be transferred by the Company tothe Investor Education and Protection Fund. iv) The Company has provided requisitedisclosures in the financial statements as to holdings as well as dealings in SpecifiedBank Notes during the period from 8th November 2016 to 30th December 2016. Based onaudit procedures and relying on the management representation we report that thedisclosures are in accordance with books of account maintained by the Company and asproduced to us by the Management – Refer Note [28(n)].

Place: Yamunanagar For Jayant Bansal & Co.
Chartered Accountants
Date: 30th May 2017 Firm Registration No. 004694N
JAYANT BANSAL
(PARTNER)
Membership No.: 086478

ANNEXURE "A" REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING OF "REPORT ONOTHER LEGAL AND REGULATORY REQUIREMENTS" OF INDEPENDENT AUDITORS’ REPORT OF EVENDATE OF SCAN PROJECTS LIMITED (FORMERLY KNOWN AS AMBALA CEMENTS LIMITED) FOR THE YEARENDED MARCH 31 2017

(i) In respect of the fixed assets of the Company:

(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets. (b) As explained to us the fixedassets have been physically verified by the management during the year in accordance witha regular programme of verification adopted by the management which in our opinionprovides for physical verification of all the fixed assets at reasonable intervals.According to the information and explanations given to us no material discrepancies werenoticed on such verification. (c) According to the information and explanations given tous and the records examined by us and based on the examination of the conveyance deedprovided to us we report that the title deeds comprising all the immovable propertiesof land and buildings which are freehold are held in the name of the Company as at thebalance sheet date.

(ii) As explained to us that the Company is engaged in business activities i.e.Erection commissioning & supervision services and trading of fabricating materialelectrical components machinery parts and other items etc and holds stock of consumablestores & spares and finished/traded goods which have been physically verified duringthe year by the management at reasonable intervals and no material discrepancies werenoticed on physical verification.

(iii) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms or other parties covered inthe Register maintained under Section 189 of the Companies Act 2013. Accordinglyparagraph 3(iii) of the Order is not applicable.

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Section 185 and 186 of the Act in respect ofgrant of loans making investments and providing guarantees and securities as applicable.

(v) In our opinion and according to the information and explanations given to us theCompany has not accepted deposits during the year. Therefore the provisions of the clause3 (v) of the Order are not applicable to the Company.

(vi) Reporting under clause 3(vi) of the Order is not applicable as the Company’sbusiness activities are not covered by the Companies (Cost Records and Audit) Rules 2014.

(vii) (a) According to the records of the company and as per information andexplanations given to us the company has generally been regular in depositing undisputedstatutory dues including Provident Fund Employee’s State Insurance Fund IncomeTax Sales Tax Service Tax Duty of Customs Duty of Excise Value added tax Cess andother material statutory dues applicable to it with appropriate authorities. (b) Accordingto information and explanations given to us no undisputed amounts payable in respect ofProvident Fund Employee’s State Insurance Fund Income Tax Sales Tax Service TaxDuty of Customs Duty of Excise Value added tax Cess and other material statutory duesapplicable to it were in arrears as at 31st March 2017 for a period of morethan six months from the date they become payable. (c) According to the information andexplanation given to us there are no dues of Income Tax Sales Tax Value added TaxService Tax Duty of Custom and Duty of Excise applicable to it which have not beendeposited on account of any dispute as on 31-03-2017 except Central Excise Duty amountingto Rs.357489.19 (for the year 2002-03) against which the company has paid Rs.200000.00 andthe balance is yet to be paid because the case is pending before the appellant authorityfor settlement. The details of the same are given below: -

PARTICULARS NATURE OF DUES YEAR TO WHICH IT RELATES AMOUNT FORUM WHERE DISPUTE IS PENDING
Central Excise Duty Difference in rate of excise duty 1991-1993 (arising in the year 2002-03) 357489.19 (against that Rs.200000/- has been paid) Central Excise and Service Tax Appellate Tribunal

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in the repayment of loans or borrowings to banks. TheCompany does not have any loans or borrowings from financial institutions or governmentand has not issued any debentures.

(ix) As per the information and explanations given to us the Company has not raisedmoneys by way of initial public offer or further public offer (including debt instruments)or term loans and hence reporting under clause 3 (ix) of the Order is not applicable.

(x) According to the information and explanations given to us no material fraud by theCompany and no fraud on the Company by its officers or employees has been noticed orreported during year.

(xi) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid/provided managerialremuneration in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V to the Act.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3 (xii) of the Order is notapplicable.

(xiii) According to the information and explanation given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with Sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statement as required by the applicableaccounting standards.

(xiv) According to the information and explanations given to us the Company has notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year and hence reporting under clause 3 (xiv) of theOrder is not applicable to the Company.

(xv) According to the information and explanations given to us the Company has notentered into non-cash transaction with directors or persons connected with him and hencereporting under clause 3 (xv) of the Order is 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.

Place: Yamunanagar For Jayant Bansal & Co.
Chartered Accountants
Date: 30th May 2017 Firm Registration No. 004694N
JAYANT BANSAL
(PARTNER)
Membership No.: 086478

ANNEXURE "B" TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE ON THEFINANCIAL STATEMENTS OF SCAN PROJECTS LIMITED (FORMERLY KNOWN AS AMBALA CEMENTS LIMITED)

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of ScanProjects Limited (Formerly Known as Ambala Cements Limited) ("the Company")as of March 31 2017 in conjunction with our audit of the financial statements of theCompany for the year ended on that date.

Management’s Responsibility for Internal Financial Controls

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 design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to the company’s policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditors’ Responsibility

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") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls 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 controlssystem over 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 unauthorized 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 considering nature of business size of operation and organizationalstructure of the entity the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls over Financial Reporting issued by the Institute of CharteredAccountants of India.

Other Matter

Our aforesaid report under Section 143(3)(i) of the Act on the adequacy and operatingeffectiveness of the internal financial controls over financial reporting insofar as itrelates to branch office Nepal is based on the corresponding report by the branch auditorof the Company’s branch at Nepal.

Place: Yamunanagar For Jayant Bansal & Co.
Chartered Accountants
Date: 30th May 2017 Firm Registration No. 004694N
JAYANT BANSAL
(PARTNER)
Membership No.: 086478