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Scan Projects Ltd.

BSE: 531797 Sector: Industrials
NSE: N.A. ISIN Code: INE393D01015
BSE 00:00 | 21 Feb 3.23 0.15
(4.87%)
OPEN

3.23

HIGH

3.23

LOW

3.23

NSE 05:30 | 01 Jan Scan Projects Ltd
OPEN 3.23
PREVIOUS CLOSE 3.08
VOLUME 25
52-Week high 3.23
52-Week low 3.08
P/E 6.87
Mkt Cap.(Rs cr) 1
Buy Price 3.23
Buy Qty 3025.00
Sell Price 0.00
Sell Qty 0.00
OPEN 3.23
CLOSE 3.08
VOLUME 25
52-Week high 3.23
52-Week low 3.08
P/E 6.87
Mkt Cap.(Rs cr) 1
Buy Price 3.23
Buy Qty 3025.00
Sell Price 0.00
Sell Qty 0.00

Scan Projects Ltd. (SCANPROJ) - Auditors Report

Company auditors report

To

The Members of Scan Projects Limited

(Formerly Known as Ambala Cements Limited)

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone financial statements of SCAN PROJECTSLIMITED (FORMERLY KNOWN AS AMBALA CEMENTS LIMITED) YAMUNANAGAR ( the Company ) whichcomprise the Balance Sheet as at 31st March 2018 the Statement of Profit and Loss(Including Other Comprehensive Income) the statement of changes in equity and thestatement of cash flows for the year then ended and notes to the financial statementsincluding a summary of the significant accounting policies and other explanatoryinformation in which are incorporated the Returns for the year ended on that date auditedby the branch auditor of the Company s branch at Nepal.

Management s Responsibility for the Standalone Ind AS 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 of thesestandalone Ind As financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income changes in equityand cash flows of the Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind AS) 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 standalone Ind AS financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditors Responsibility

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit. We have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions 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 standalone Ind AS financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor s judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company s preparation of the standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company sDirectors as well as evaluating the overall presentation of the standalone Ind ASfinancial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at 31st March 2018 and its profit including other comprehensive income thechanges in equity and its cash flows for the year ended on that date.

Other Matter

The comparative financial information of the Company for the year ended 31st March 2017and the transition date opening balance sheet as at 1st April 2016 included in thesestandalone Ind AS financial statements are based on the previously issued statutoryfinancial statements prepared in accordance with the Companies (Accounting Standards)Rules 2006 audited by the predecessor auditor whose report for the year ended 31st March2017 and 31st March 2016 dated 30th May 2017 and 30th May 2016 respectively expressed anunmodified opinion on those standalone financial statements as adjusted for thedifferences in the accounting principles adopted by the Company on transition to the IndAS which have been audited by us.

We did not audit the financial statements/information of Nepal Branch included in thestandalone Ind AS financial statements of the Company whose financial statements /financial information reflect total assets of Rs.16312692.00 as at 31st March 2018 andtotal revenues of Rs.16186472.00 for the year ended on that date. The financialstatements/information of this branch has been audited by the branch auditor whose reporthas been furnished to us and our opinion in so far as it relates to the amounts anddisclosures included in respect of this branch is based solely on the report of suchbranch auditor.

Our opinion is not modified in respect of these matters.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor s Report) Order 2016 ( the Order ) issued bythe Central Government of India in terms of sub-section (11) of section 143 of theCompanies Act 2013 we give in the Annexure A a statement on the matters specified inparagraphs 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 and proper returnsadequate for the purposes of our audit have been received from Nepal Branch not visited byus;

(c) The reports on the accounts of the Nepal branch office of the Company audited underSection 143(8) of the Act by branch auditor have been sent to us and have been properlydealt by us in preparing this report.

(d) The Balance Sheet the Statement of Profit and Loss including Other ComprehensiveIncome the Statement of Changes in Equity and the statement of Cash Flow dealt with bythis Report are in agreement with the relevant books of account and with the returnsreceived from Nepal branch not visited by us;

(e) In our opinion the aforesaid standalone Ind AS financial statements comply withthe Indian Accounting Standards specified under Section 133 of the Act read with Rule 7of the Companies (Accounts) Rules 2014.

(f) On the basis of the written representations received from the Directors as on March31 2018 taken on record by the Board of Directors none of the Directors is disqualifiedas on March 31 2018 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 be included in the Auditors 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 standalone Ind AS financial statements as of March 31 2018;

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 to theInvestor Education and Protection Fund.

Place: Yamunanagar For Vijay & Satish Bhatia
Chartered Accountants
Firm Registration No. 03535N
Date: 30th May 2018 (VIJAY BHATIA)
M. No. 080225
(PARTNER)

ANNEXURE A REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING OF REPORT ON OTHER LEGAL ANDREGULATORY REQUIREMENTS OF INDEPENDENT AUDITORS REPORT OF EVEN DATE OF SCAN PROJECTSLIMITED (FORMERLY KNOWN AS AMBALA CEMENTS LIMITED) FOR THE YEAR ENDED MARCH 31 2018

(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 fixed assets have been physically verified by themanagement during the year in accordance with a regular programme of verification adoptedby the management which in our opinion provides for physical verification of all thefixed assets at reasonable intervals. According to the information and explanations givento 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 conveyance deed provided to us we report thatthe title deeds comprising all the immovable properties of land and buildings which arefreehold are held in the name of the Company as at the balance 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 Income TaxSales Tax Service Tax Duty of Customs Duty of Excise Value added tax Cess and othermaterial statutory dues applicable to it with appropriate authorities.

(b) According to information and explanations given to us no undisputed amountspayable in respect of Provident Fund Employee s State Insurance Fund Income Tax SalesTax Service Tax Duty of Customs Duty of Excise Value added tax Cess and othermaterial statutory dues applicable to it were in arrears as at 31st March 2018 for aperiod of more than six months from the date they become payable.

(c) According to the information and explanation given to us there are no dues ofIncome Tax Sales Tax Value added Tax Service Tax Duty of Custom and Duty of Exciseapplicable to it which have not been deposited on account of any dispute as on 31-03-2018except Central Excise Duty amounting to Rs.357489.19 (for the year 2002-03) against whichthe company has paid Rs.200000.00 and the balance is yet to be paid because the case ispending before the appellant authority for settlement. The details of the same are givenbelow: -

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 Vijay & Satish Bhatia
Chartered Accountants
Date: 30th May 2018 Firm Registration No. 03535N
(VIJAY BHATIA)
M. No. 080225
(PARTNER)

ANNEXURE B TO THE INDEPENDENT AUDITOR S REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTSOF 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 March31 2018 in conjunction with our audit of the financial statements of the Company for theyear 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 deemed to beprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols 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 controls systemover 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 2018 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 Vijay & Satish Bhatia
Chartered Accountants
Date: 30th May 2018 Firm Registration No. 03535N
(VIJAY BHATIA)
M. No. 080225
(PARTNER)