| We have audited the accompanying financial statements of SCAN PROJECTS
LIMITED (FORMERLY KNOWN AS AMBALA CEMENTS LIMITED), YAMUNANAGAR ('the
Company'), which comprise the Balance Sheet as at March 31, 2015 and
the Statement of Profit and Loss and the Cash Flow Statement for the
year then ended, and a summary of the significant accounting policies
and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ('the Act') with respect
to the preparation of these financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under 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 accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of these financial statements that give a true and fair
view and are free from material misstatement, whether due to fraud or
error.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Board of Directors,
as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide 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
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2015;
(b) In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date;
(c) In the case 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, 2015 ('the
Order') issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Companies Act, 2015, we give in
the Annexure a statement on 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 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 by the Company so far as it appears from our examination of
those books and proper returns adequate for the purposes of our audit
have been received from Nepal Branch not visited by us;
(c) The reports on the accounts of the Nepal branch office of the
Company audited under Section 143(8) of the Act by branch auditor have
been sent to us and have been properly dealt by us in preparing this
report.
(d) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account and with the returns received from Nepal branch not
visited by us;
(e) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under 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 March 31, 2015, taken on record by the Board of
Directors, none of the Directors is disqualified as on March 31, 2015
from being appointed as a Director in terms of Section 164 (2) of the
Act.
(g) With respect to the other matters to be included in the Auditors'
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and 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
financial position in its financial statements as of March 31, 2015;
ii) The Company has made provision in its financial statements, as
required under the applicable law or accounting standards, for material
foreseeable losses on long term contracts;
iii) There were no amounts which required to be transferred by the
Company to the Investor Education and Protection Fund.
1. In respect of the fixed assets of the Company:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) As explained to us, fixed assets have been physically verified by
the management during the year in accordance with a regular programme
of verification adopted by the management which, in our opinion,
provides for physical verification of all the fixed assets at
reasonable intervals. According to the information and explanations
given to us, no material discrepancies were noticed on such
verification.
2. In respect of the inventories of the Company:
(a) As explained to us that, the Company is engaged in business
activities i.e. Erection, commissioning & supervision services and
trading of fabricating material, electrical components, machinery parts
and other items etc and holds stock of consumable stores & spares and
finished/traded goods, which have been physically verified during the
year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management were reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the company has maintained proper records of its
inventories and no material discrepancies were noticed on the physical
verification of stocks as compared to book records.
3. According to the information and explanations given to us, the
Company has not granted any loans, secured or unsecured, to companies,
firms or other parties covered in the Register maintained under Section
189 of the Companies Act, 2013. Accordingly paragraph 3(iii) of the
Order is not applicable.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the company and the nature of its business for the
purchase of inventory, fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
system with regards to purchase of inventories, fixed assets and for
sale of goods and services.
5. In our opinion and according to the information and explanations
given to us, the Company has not accepted deposits during the year.
Therefore, the provisions of the clause 3 (v) of the Order are not
applicable to the Company.
6. We have broadly reviewed the cost records maintained by the Company
pursuant to the Rules made by the Central Government under Section
148(1) of the Companies Act, 2013 in respect of Engineering Services
(i.e. erection, commissioning and supervision activities), and are of
the opinion that prima facie the prescribed cost records have been made
and maintained. We have, however, not made a detailed examination of
the cost records with a view to determine whether they are accurate or
complete.
7. In respect of Statutory dues:
(a) According to the records of the company and as per information and
explanations given to us, the company has generally been regular in
depositing undisputed statutory dues, including Provident Fund,
Employee's State Insurance Fund, Income Tax, Sales Tax/Value added Tax,
Wealth Tax, Service Tax, Duty of Custom, Duty of Excise, Cess and other
material statutory dues applicable to it with appropriate authorities.
(b) According to the information and explanations given to us, there
were no undisputed amounts payable in respect of Provident Fund,
Employees' State Insurance, Income Tax, Sales Tax and Value Added Tax,
Wealth Tax, Service Tax, duty of Customs, duty of Excise, Cess and
other material statutory dues in arrears as at March 31, 2015 for a
period of more than six months from the date of becoming payable except
annual stock exchange listing fee of Rs, 180000/-. The details of the
same are given below: -
(d) According to the information and explanation given to us, that
there were no amounts which required to be transferred by the Company
to the Investor Education and Protection Fund. Accordingly clause
3(vii)(c) of the Order is not applicable to it.
8. As per the information and explanations given to us and on an
overall examination of the financial statements of the company for the
current and immediately preceding financial year, we report that the
total accumulated losses of the company as on 31-03-2015 is Rs,
3496175.97 (Previous year Rs, 5984290.97). The net worth of the company
has become positive, due to earning of profits since last few years.
The company has incurred cash
9. As per the information and explanations given to us, that the
company has not defaulted in repayment of dues to bank/financial
institutions as on balance sheet date and the dealings are regular.
However, the company does not have any borrowings in the form of
debentures.
10. In our opinion, an according to the information and explanations
given to us, the company has not given any guarantees for loans taken
by others from banks or financial institutions during the year.
11. In our opinion and according to the information and explanations
given to us, the company has not obtained any term loan during the
year.
12. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud by the Company and
no material fraud on the Company has been noticed or reported during
the year.
Place: Yamunanagar For Jayant Bansal & Co.,
Chartered Accountants
Firm Registration No. 04694N
Date: 30th May 2015
JAYANT BANSAL
(PARTNER)
Membership No.: 086478 |