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Scan Projects Ltd.

BSE: 531797 Sector: Industrials
NSE: N.A. ISIN Code: INE393D01015
BSE 00:00 | 28 Mar Scan Projects Ltd
NSE 05:30 | 01 Jan Scan Projects Ltd
OPEN 5.63
PREVIOUS CLOSE 5.63
VOLUME 3
52-Week high 5.63
52-Week low 3.32
P/E 5.03
Mkt Cap.(Rs cr) 2
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 5.63
CLOSE 5.63
VOLUME 3
52-Week high 5.63
52-Week low 3.32
P/E 5.03
Mkt Cap.(Rs cr) 2
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Scan Projects Ltd. (SCANPROJECTS) - Auditors Report

Company auditors report

To

The Members of Scan Projects Limited

Report on the Audit of the Standalone Ind AS Financial Statements.

Opinion

We have audited the accompanying standalone Ind AS financial statements of SCANPROJECTS LIMITED YAMUNANAGAR (‘the Company') which comprise the Balance Sheet as at31st March 2021 the Statement of Profit and Loss (Including OtherComprehensive Income) the statement of changes in equity and the statement of cash flowsfor the year then ended and notes to the financial statements including 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.

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 March 31 2021 and its profit total comprehensive income the changes inequity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder Section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.

Emphasis of Matter

We draw attention to Note 2(d) in the financial statements which describes theeconomic and social consequences the entity is facing as a result of COVID-19 pandemicwhich is impacting business operation and carrying amounts of financial and non-financialassets of the Company. Our opinion is not modified in respect of this matter."

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.

The Key audit matters How our audit addressed the key audit matter
As described in Note 2(m) to the standalone financial statements regarding "Revenue from Contracts with Customers" the application of this accounting standard is complex and is an area of focus in the audit. The Revenue standard establishes a comprehensive framework for determining whether how much and when revenue is recognized. This involves certain key judgments relating to identification of distinct price of identified performance obligation the appropriateness of the basis used to measure revenue recognized over a period. Additionally the standard mandates robust disclosures in respect of revenue and periods over which remaining performance obligations will be satisfied subsequent to the balance sheet date. Our audit procedures on recognition of Revenue from Contracts with Customers" includes: -
Obtained an understanding if the systems process and controls implemented by company for recording and computing revenue and the associated contract assets unbilled and unearned deferred revenue balances;
Evaluated the design and implementation of the processes and internal controls relating to implementation of the revenue accounting standard;
Evaluated the detailed analysis performed by management on revenue streams by selecting samples for the existing contracts with customers and considered revenue recognition policy in the current period in respect of those revenue streams;
Evaluated the changes made to IT systems to reflect the changes required in revenue recognition as per the new accounting standard;
Evaluated the appropriateness of the disclosures provided under the new revenue standard and assessed the completeness and mathematical accuracy of the relevant disclosures.

 

As described in Note 2(o) to the standalone financial statements the Company has adopted Ind AS 116 Leases in the current year. The application and transition to this accounting standard is complex and is an area of focus in our audit since the Company has only short term leases and leases for which the underlying asset is of low value. Our audit procedures on adoption of Ind AS 116 Includes:
Assessed and tested new processes and controls in respect of the lease accounting standard (Ind AS 116).
Assessed the Company's evaluation on identification of short term rental lease agreement and leases for which the underlying asset is of low value to elect not to apply the requirements of Ind AS 116 for such short term rental agreements.

Other Information

The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the Company'sAnnual Report but does not include the standalone financial statements and our auditor'sreport thereon. Our opinion on the standalone financial statements does not cover theother information and we do not express any form of assurance conclusion thereon. Inconnection with our audit of the standalone financial statements our responsibility is toread the other information and in doing so consider whether the other information ismaterially inconsistent with the standalone financial statements or our knowledge obtainedduring the course of our audit or otherwise appears to be materially misstated. If basedon the work we have performed we conclude that there is a material misstatement of thisother information we are required to report that fact. We have nothing to report in thisregard.

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 preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income the changes inequity and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) specifiedunder section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding of the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate implementation and maintenance of accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of these standalone Ind AS financial statement that give a true and fair viewand are free from material misstatement whether due to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

The Board of Directors is also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance withStandards on Auditing will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these financial statements

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Companies act 2013 we are also responsible for expressing our opinion on whetherthe company has adequate internal financial controls with reference to standalonefinancial statement and the operating effectiveness of such controls.

Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.

Conclude on the appropriateness of management's use of the going concernbasis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Companyto cease to continue as a going concern.

Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Other Matter

We did not audit the financial statements/information of Nepal Branch included in thestandalone Ind AS financial statements of the Company whose financial statements/financialinformation reflect total assets of Rs. 9997403.00 as at 31st March 2021 and the totalrevenue of Rs. NIL for the year ended on that date as considered in the standalone Ind ASfinancial statements/information of this branch has been audited by the branch's auditorwhose reports have been furnished to us and our opinion in so far as it relates to theamounts and disclosures included in respect of branch is based solely on the report ofsuch branch 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 (‘theOrder') issued by the Central Government of India in terms of sub-section (11) of section143 of the Companies Act 2013 we give in the Annexure "A" a statement on thematters 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 tothe best of 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 bythe Company 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 Companyaudited under Section 143(8) of the Act by branch auditor have been sent to us and havebeen properly dealt by us in preparing this report;

(d) The Balance Sheet the Statement of Profit and Loss (Including OtherComprehensive Income) the Statement of Changes in Equity and the statement of Cash Flowsdealt with by this Report are in agreement with the 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 complywith the Accounting Standards specified under Section 133 of the Act read with Rule 7 ofthe Companies (Accounts) Rules 2014.

(f) On the basis of the written representations received from the Directors ason March 31 2021 taken on record by the Board of Directors none of the Directors isdisqualified as on March 31 2021 from being appointed as a Director in terms of Section164 (2) of the Act.

(g) With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate report in Annexure "B".

(h) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended: In our opinionand to the best of our information and according to the explanations given to us theremuneration paid by the Company to its director during the year is in accordance with theprovisions of section 197 of the Act.

(i) 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 standaloneInd AS financial position in its financial statements as of March 31 2021;

ii) The Company has made provision in its financial statements as requiredunder the applicable law or accounting standards for material foreseeable losses if anyon long term contracts;

iii) There were no amounts which required to be transferred by the Company tothe Investor Education and Protection Fund by the Company.

Place: Yamunanagar For Vijay & Satish Bhatia
Chartered Accountants
Firm Registration No. 03535N
Date: 30th June 2021
(SATISH BHATIA)
M. No. 082393
(PARTNER)
UDIN:21082393AAAAGY8553

ANNEXURE "A" REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING OF "REPORT ONOTHER LEGAL AND REGULATORY REQUIREMENTS" OF INDEPENDENT AUDITORS' REPORT OF EVEN DATEOF SCAN PROJECTS LIMITED FOR THE YEAR ENDED MARCH 31 2021

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

(a) The Company has maintained proper records showing full particularsincluding quantitative 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 recordsexamined by us and based on the examination of the conveyance deed provided to us wereport that the title deeds comprising all the immovable properties of land andbuildings which are freehold are held in the name of the Company as at the balance sheetdate.

(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 TaxGood and Service Tax Service Tax Duty of Customs Duty of Excise Value added tax Cessand other material 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 Goodand Service Tax Sales Tax Service Tax Duty of Customs Duty of Excise Value added taxCess and other material statutory dues applicable to it were in arrears as at 31stMarch 2021 for a period of more than six months from the date they become payable.

(c) According to the information and explanation given to us there are no duesof Income Tax Good and Service Tax Sales Tax Value added Tax Service Tax Duty ofCustom and Duty of Excise applicable to it which have not been deposited on account ofany dispute as on 31-03-2021 except Central Excise Duty amounting to Rs.357489.19 (for theyear 2002-03) against which the company has paid Rs.200000.00 and the balance is yet to bepaid because the case is pending before the appellant authority for settlement. Thedetails 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 Vijay & Satish Bhatia
Chartered Accountants
Firm Registration No. 03535N
Date: 30th June 2021
(SATISH BHATIA)
M. No. 082393
(PARTNER)
UDIN: 21082393AAAAGY8553

ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THEFINANCIAL STATEMENTS OF SCAN PROJECTS 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 ("the Company") as of March 31 2021 in conjunction with ouraudit of the financial statements of the Company 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 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial 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 2021 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 in so far 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
Firm Registration No. 03535N
Date: 30th June 2021
(SATISH BHATIA)
M. No. 082393
(PARTNER)
UDIN: 21082393AAAAGY8553

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