Mar 31, 2015
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
Mar 31, 2014
Report on the Financial Statements
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 31st March 2014, the
Statement of Profit and Loss and Cash Flow Statement for the year then
ended and a summary of significant accounting polices and other
explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for 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
Accounting Standards referred to in Section 211(3C) of the Companies
Act, 1956 ("the Act") read with the General Circular 15/2013 dated
September 13, 2013, of the Ministry of Corporate Affairs, in respect of
section 133 of the Companies Act, 2013. This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the 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 conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. 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 misstatements. An audit involves performing procedures to
obtain audit evidence about the amounts and 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
control relevant to the Company''s preparation and fair presentation of
the financial statements in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by management, 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.
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, 2014;
(b) In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(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, 2003 ("the
Order") issued by the Central Government of India in terms of Section
227(4A) of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion, proper books of accounts as required by the law have
been kept by the company so far as 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 Balance Sheet, 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];
d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub section 3(C) of section 211 of
the Companies Act, 1956 read with the General Circular 15/2013 dated
September 13, 2013, of the Ministry of Corporate Affairs, in respect of
section 133 of the Companies Act, 2013; and
e) On the basis of the written representations received from the
Directors, as on 31st March, 2014 and taken on record by the Board of
Directors, none of the Directors is disqualified as on 31st March 2014
from being appointed as a director under Section 274(1)(g) of the
Companies Act, 1956.
ANNEXURE REFERRED TO IN PARAGRAPH 1 UNDER THE HEAPING OF "REPORT ON
OTHER LEGAL AND REGULATORY REQUIREMENTS" OF INDEPENDENT AUDITORS''
REPORT OF EVEN DATE OF SCAN PROJECTS LIMITED (FORMERLY KNOWN AS AMBALA
CEMENTS LIMITED) FOR THE YEAR ENDED MARCH 31.2014
1. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As explained to us that, the Company has regular programme of
physical verification of its assets. In accordance with this programme
the fixed assets were verified by the responsible staff during the year
at regular intervals of time. Ho material discrepancies were noticed on
such verification. In our opinion, this periodicity of verification is
reasonable having regard to the size of the company and nature of its
assets.
(c) In our opinion, the Company has not disposed off a substantial part
of its fixed assets during the year and the going concern status of the
Company is not affected.
2. (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
fmished/traded goods, which have been physically verified at frequent
intervals during the year by the management and in our opinion, the
frequency of verification is reasonable.
(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 are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) The company has maintained proper records of inventories and the
discrepancies noticed on the physical verification of stocks as
compared to book records, which in our opinion were not material, have
been properly dealt with in the books of accounts.
3. (a) According to the information and explanations given to us, the
company has not granted any loans, secured or unsecured, to companies,
firms and other parties listed in the register maintained under section
301 of the Companies Act, 1956. Accordingly paragraphs 4 (iii) (b), (c)
and (d) of the order are not applicable.
(b) According to the information and explanations given to us, the
company has not taken loans, secured or unsecured, from companies,
firms and other parties listed in the register maintained under section
301 of the Companies Act, 195.6. Accordingly paragraphs 4 (iii) (f) &
(g) of the order are 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. (a) According to the Information and explanations given to us and
as confirmed by the Managing Director of the company, we are of the
opinion that the particulars of contracts or arrangements that need to
be entered into the register maintained under section 301 of the
Companies Act, 1956, have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of Rs. 500000/- in
respect of each party during the year have been made at prices which
are reasonable having regard to prevailing market prices at the
relevant time.
6. According to the information and explanations given to us, the
Company has not accepted any deposit from the public. Therefore, the
provisions of Clause (vi) of paragraph 4 of the Order are not
applicable to the Company.
7. In our opinion and according to the information and explanation
given to us, the company has internal audit system commensurate with
the size of the company and nature of its business.
8. We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209(l)(d) of the
Companies Act, 1956 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.
9. (a) According to the records of the company and as per information
and explanations given to us, the company is generally regular in
depositing undisputed statutory dues including Provident Fund, investor
education and protection fund, Employee''s State Insurance Fund, Income
Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess
and other material statutory dues applicable to it with appropriate
authorities. According to the information and explanations given to us,
no undisputed amount payable in respect of the aforesaid dues were
outstanding as at March 31, 2014 for a period of more than six months
form the date of becoming payable except annual stock exchange listing
fee of'' Rs. 348500/-. The details of the same are given below: -
PARTICULARS PERIOD AMOUNT STATUS AS
DUE (in) ON
31/03/2014
*Stock exchange listing fee:
The Stock Exchange Ahemdabad 1997-2014 178500.00 Yet to be
paid
Jaipur Stock Exchange , 1997-2014 170000.00 -do-
(b) According to the information and explanation given to us, there are
no dues of Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty,
Excise Duty and Cess, applicable to it, which have not been
deposited on account of any dispute as on 31-03-2014 except Central
Excise Duty amounting to Rs. 357489.19 (for the year 2002-03) against
which the company has paid Rs. 200000.00 and the balance is yet to be
paid, because the case is pending before the appellant authority for
settlement. The details of the same are given below: -
PARTICULARS NATURE OF YEAR TO AMOUNT FORUM WHERE
DUES WHICH IT DISPUTE IS
RELATES PENDING
Central Excise Difference in 1991-1993 357489.19 Central Excise
Duty rate of excise (arising (against and Service Tax
duty in the year that Appellate
2002-03) Tribunal
200000/-
has been
paid)
10. 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 31-03-2014 is Rs.
5984290.97 (Previous year Rs. 10220339.13). The net worth of the
company has become positive, due to earning of profits since last few
years. The company has incurred cash profit of'' Rs. 4976512.16 in the
current year and Rs. 5912359.51 in the immediately preceding financial
year.
11. 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.
12. As per the information and explanations given to us, the company
has not granted any loans and advances on the basis of security by way
of pledge of shares, debentures and other securities to any body during
the year.
13. In our opinion, the company is not a chit fund or a nidhi/mutual
benefit fund /society. Therefore, the provisions of clause (xiii) of
the paragraph 4 of the Order are not applicable to the company.
14. According to the information and explanations given to us, the
company is not dealing in or trading in shares, securities, debentures
and other investments. Accordingly, the provisions of clause (xiv) of
the paragraph 4 of the Order are not applicable to the company.
15. 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.
16. In our opinion and according to the information and explanations
given to us, on an overall basis the term loan has been applied for the
purpose for which they were obtained.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the company, we report
that no funds raised on short term basis has been used for long term
investments.
18. According to the information and explanations given to us, during
the year the company has not made preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Companies Act, 1956.
19. The company has not issued any debentures during the year which
requires the creation of security. Therefore, clause (xix) of the
paragraph 4 of the Order is not applicable to the company.
20. The company has not raised any money by way of public issues
during the year for which the management has to disclose the end use of
money raised through the public issue. Therefore, clause (xx) of the
paragraph 4 of the Order is not applicable to the company.
21. According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
Place: Yamunanagar For Jayant Bansal & Co.,
Chartered Accounts
Firm Registration No. 004694N
Date: 30th May 2014 JayaNT BANSAL
(PARTNER)
MEMBERSHIP No: 086478
Mar 31, 2013
Report on the Financial Statements
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 31st March 2013, the
Statement of Profit and Loss and Cash Flow Statement for the year then
ended and a summary of significant accounting polices and other
explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for 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
Accounting Standards referred to in Section 211(3C) of the Companies
Act, 1956 ("the Act"). This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the 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 conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. 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 misstatements. An audit involves performing procedures to
obtain audit evidence about the amounts and 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
control relevant to the Company''s preparation and fair presentation of
the financial statements in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by management, 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.
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, 2013;
(b) In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(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, 2003 ("the
Order") issued by the Central Government of India in terms of Section
227(4 A) of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion, proper books of accounts as required by the law have
been kept by the company so far as appears from our examination of
those books;
c) The Balance Sheet, Statement of Profit and Loss and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub section 3(C) of section 211 of
the Companies Act, 1956; and
e) On the basis of the written representations received from the
Directors, as on 31st March, 2013 and taken on record by the Board of
Directors, none of the Directors is disqualified as on 31sl March 2013
from being appointed as a director under Section 274(l)(g) of the
Companies Act, 1956
ANNEXURE REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING OF "REPORT ON
OTHER LEGAL AND REGULATORY REQUIREMENTS" OF INDEPENDENT AUDITORS''
REPORT OF EVEN PATE OF SCAN PROJECTS LIMITED (FORMERLY KNOWN AS AMBALA
CEMENTS LIMITED) FOR THE YEAR ENDED MARCH 31,2013
1. (a) The company has maintained proper records showing foil
particulars including quantitative details and situation of fixed
assets.
(b) As explained to us that, the Company has regular programme of
physical verification of its assets. In accordance with this programme
the fixed assets were verified by the responsible staff during the year
at regular intervals of time. No material discrepancies were noticed on
such verification. In our opinion, this periodicity of verification is
reasonable having regard to the size of the company and nature of its
assets.
(c) In our opinion, the Company has not disposed off a substantial part
of its fixed assets during the year and the going concern status of the
Company is not affected.
2. (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 at frequent
intervals during the year by the management and in our opinion, the
frequency of verification is reasonable.
(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 are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) The company has maintained proper records of inventories and the
discrepancies noticed on the physical verification of stocks as
compared to book records, which in our opinion were not material, have
been properly dealt with in the books of accounts.
3. (a) According to the information and explanations given to us, the
company has not granted any loans, secured or unsecured, to companies,
firms and other parties listed in the register maintained under section
301 of the Companies Act, 1956. Accordingly paragraphs 4 (Hi) (b), (c)
and (d) of the order are not applicable, (b) According to the
information and explanations given to us, the company has not taken
loans, secured or unsecured, from companies, firms and other parties
listed in the register maintained under section 301 of the Companies
Act, 1956. Accordingly paragraphs 4 (in) (f) & (g) of the order are 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. (a) According to the information and explanations given to us and
as confirmed by the Managing Director of the company, we are of the
opinion that the particulars of contracts or arrangements that need to
be entered into the register maintained under section 301 of the
Companies Act, 1956, have been so entered. (b) In our opinion and
according to the information and explanations given to us, the
transactions made in pursuance of contracts or arrangements entered in
the register maintained under section 301 of the Companies Act, 1956
and exceeding the value ofRs. 500000/- in respect of each party during
the year have been made at prices which are reasonable having regard to
prevailing market prices at the relevant time.
6. According to the information and explanations given to us, the
Company has not accepted any deposit from the public. Therefore, the
provisions of Clause (vi) of paragraph 4 of the Order are not
applicable to the Company.
7. In our opinion and according to the information and explanation
given to us, the company has internal audit system commensurate with
the size of the company and nature of its business.
8. We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209(l)(d) of the
Companies Act, 1956 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.
9. According to the records of the company and as per information
and explanations given to us, the company is generally regular in
depositing undisputed statutory dues including Provident Fund, investor
education and protection fond, Employee''s State Insurance Fund, Income
Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess
and other material statutory dues applicable to it with appropriate
authorities.
10. 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 31-03-2013 is Rs.
10220339.13 (Previous year ^ 15505710.64). The net worth of the company
has become positive, due to earning of profits since last four years.
The company has incurred cash profit of f 5912359.51 in the current
year and Rs. 12550033.45 in the immediately preceding financial year.
11. 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.
12. As per the information and explanations given to us, the company
has not granted any loans and advances on the basis of security by way
of pledge of shares, debentures and other securities to any body during
the year.
13. In our opinion, the company is not a chit fund or a nidhi/mutual
benefit fund /society. Therefore, the provisions of clause (xiii) of
the paragraph 4 of the Order are not applicable to the company.
14. According to the information and explanations given to us, the
company is not dealing in or trading in shares, securities, debentures
and other investments. Accordingly, the provisions of clause (xiv) of
the paragraph 4 of the Order are not applicable to the company.
15. 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.
16. In our opinion and according to the information and explanations
given to us, on an overall basis the term loan has been applied for the
purpose for which they were obtained.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the company, we report
that no funds raised on short term basis has been used for long term
investments.
18. According to the information and explanations given to us, during
the year the company has not made preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Companies Act, 1956.
19. The company has not issued any debentures during the year which
requires the creation of security. Therefore, clause (xix) of the
paragraph 4 of the Order is not applicable to the company.
20. The company has not raised any money by way of public issues
during the year for which the management has to disclose the end use of
money raised through the public issue. Therefore, clause (xx) of the
paragraph 4 of the Order is not applicable to the company.
21. According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
Place: Yamunanagar For Jay ant Bansal & Co.,
Chartered Accountants
Firm Registration No. 004694N
Date: 31st May 2013 JAYANT BANSAL
(PARTNER)
Membership No.: 086478
Mar 31, 2010
We have audited the attached Balance Sheet of AMBALA CEMENTS LIMITED
YAMUNANAGAR as at 31st March, 2010 and also the profit and loss Account
and the cash flow statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
company's management. Our responsibility is to express and opinion on
these financial statement based on our audit.
1. We conducted the audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
2. As required by the Companies (Auditors' Report) Order, 2003 issued
by the Central Government of India in terms of sub section (4A) of
section 227 of the Companies Act, 1956, We enclose in the annexure I a
statement on the matters specified in paragrahs 4 and 5 of the said
order.
3. Further to our comments in the Annexure referred to above, we
report that: -
(i) We have obtained all the information and Explanation, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
(ii) In our opinion, proper books of accounts as required by the law,
has been kept by the company so far as appears from our examination of
those books of the company.
(iii) The Balance Sheet, Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
accounts;
(iv) In our opinion, the Balance Sheet, Profit and Loss Account and
Cash Flow statement dealt with, by this report comply with the
accounting standards referred to in sub section 3(C) of section 211 of
the Companies Act, 1956;
(v) On the basis of the written representations received from the
directors, as on 31 March, 2010 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March 2010 from being appointed as a director under Section 274(1)
(g) of the Companies Act, 1956;
(vi) We draw attention to note No.9 in the financial statement. The
company has disposed off substantial part of the assets for repayment
of dues towards financial institution/ Bank. Moreover, the accumulated
losses of the company have just become equivalent to its entire net
worth. The accounts have however, been prepared by the management as a
going concern, as explained in the abovementioned notes of Schedule
"L". However, in view of uncertainty for re-establishing the
commercial activities along with other matters as set forth in the
above mentioned notes, we are unable to comment as to whether the
company will continue as a going concern in the foreseeable future.
Consequently, adjustments may be required to the recorded amounts of
assets and classification of liabilities. The financial statements (and
notes thereto) do not disclose this fact.
(vii) In Our opinion and to the best of our information and according
to the explanation given to us, subject to the omission of the
Information dealt within the preceding paragraph, the said financial
statements read together with the notes thereon, give the information
required by the Companies Act 1956, 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 Balance Sheet, of the state of affairs of the
company as at 31st March 2010 and
(b) In the case of Profit and Loss Account, of the Profit for the year
ended on that date,
(c) In the cash flow statement, of the cash flow for the year ended on
that date.
1. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As explained to us that, due to disposal of substantial part of
assets, no physical verification has been conducted during the year.
However, the necessary verification regarding wear and tear of the.
remaining assets has been conducted by the responsible staff during the
year at regular intervals of time. No material discrepancies were
noticed on such verification.
(c) The company had previously disposed off substantial part of fixed
assets and it also has disposed off the part of remaining assets (i.e.
plant & Machinery, Electrical / pollution / Laboratory Equipments,
other assets and assets required under capital work-in-progress new
expansion scheme) during the year. However, as explained by the
management that the account has been prepared on the basis of going
concern concept in view of restructuring process initiated by the
management of the company. Because the company has already repaid all
the dues towards financial institution / Bank under one time settlement
scheme after disposing off substantial part of the fixed assets and has
also started new business activities (i.e. trading of Store and spares/
Machinery spares and material and Services for installation of
Machinery parts for Cement and allied industry). All these above
efforts reflect that the Management of the Company is serious for
revival of the company for the existing crisis. Hence the management is
hopeful to re-establish its business activities in the ensuing years.
2. (a) As explained to us that, the entire old stock (i.e. raw
material, finished and semi-finished goods) except stores and spares of
the company has been disposed off during the year and starred the new
business activities. The stock of raw material, stores & Spares and
finished / semi-finished goods of the company regarding new activities
have been physical verified at frequent intervals during the year by
the management and in our opinion, the frequency of verification is
reasonable.
(b) The procedure of physical verification of inventories followed by
the management regarding new activities, are reasonable and adequate in
relation to the size of the company and the nature of its business.
(c) The company has maintained proper records of inventories and the
discrepancies noticed on the physical verification of stocks as
compared to book records, which in our opinion were not material, have
been properly dealt with the the books of accounts.
(d) The management has valued the old stock of store and spares as per
stock records maintained by the company and no physical verification
was carried out during the year under consideration to work out damaged
stock. The company has taken book value as value of the old stock of
store and spares. so, we do not offer any comments on the value of the
old stock of store and spares as shown in the Balance Sheet, as we have
relied on the management's certificate regarding the value and quality
of it.
3. (a) The company has not granted any loans, secured or unsecured, to
companies, firms and other parties listed in the register maintained
under section 301 of the companies act, 1956, where the rate of
interest and other terms and conditions are prima facie, prejudicial
to the interest of the company.
(b) The company has not taken loans, secured and unsecured, from
companies, firms and other parties listed in the register maintained
under section 301 of the Companies Act, 1956, where the rate of
interest and terms and conditions are, prima facie, prejudicial to the
interest of the company.
4. In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct major
weakness in internal controls with regards to purchase of inventories,
fixed assets and for sale of goods and services.
5. (a) According to the information and explanation given to us and as
confirmed by the Managing Director of the company, we are of the
opinion that the particulars of contracts or arrangements that need to
be entered into the register maintained under section 301 of the
companies Act, 1956, have been so entered.
(b) In our opinion and according to the information and explanation
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956, have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
6. In our opinion and according to the information and explanation
given to us, the company has complied with the provisions of section
58A, 58AA or any other relevant provisions of the companies Act, 1956
and the Companies (Acceptance of Deposits) Rules, 1975, with regard to
the deposits accepted from the public. We are also informed that, no
order has been passed by the company Law Board or National Company Law
Tribunal or Reserve Bank of India or Any Court or any other Tribunal.
7. In our opinion and according to the Information and explanation given
to us, that due to discontinuation of commercial production since
January 2002 and in view of low volume of its transactions, the company
does not have a formal system of internal audit commensurate with
size and nature of its business. However, as pointed in clause above,
the company's has an adequate internal control system.
8. According to the information and explanations given to us, in
respect of the company the Central Government has not prescribed rules
for maintenance of cost records under section 209(1)(d) of the
Companies Act, 1956 for any products of the company's new business
activities.
9. (a) According to the records of the company and as per information
and explanation given to us, the company is generally regular in
depositing undisputed statutory dues including provident fund, investor
education and protection fund, Employee's state Insurance Fund, Income
Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess
and other material statutory dues applicable to it with appropriate
authorities.
(b) According to the information and explanation given to us, no
undisputed amounts payable in respect of Income Tax, Sales Tax, Wealth
Tax, Service Tax, Custom Duty, Excise Duty, Cess applicable to it were
in arrears, as at 31-03-2010 for a period more than six months from
that date they became payable except Central Excise Duty amounting to
Rs.357489.19 (for the year 2002-03) against which the company has paid
Rs.200000.00 and the balance is yet to be paid, because the case is
pending before the appellant authority for settlement. The details of
the other cases are given below:
PARTICULARS PERIOD AMOUNT STATUS AS
DUE ON 31/03/2010
Stock exchange listing fee
The Stock Exchange Ahemdabad 1997-2010 136500.00 Yet to be paid
Jaipur Stock Exchange 1977-2010 130000.00 -do-
(C) According to the information and explanation given to us, there are
no dues of Income Tax, Sales Tax, Custom Duty, Excise Duty, Cess
applicable to it, which have not been deposited on account of any
dispute as on 31-03-2010 except excise duty. The details of which are
given below:-
PARTICULARS NATURES OF YEAR TO AMOUNT FORUM WHERE
DUES WHICH IT DISPUTE IS
RELATES PENDING
central Excise Difference in 1991-1993 357489.19 Central Excise
and
Duty rate of excise (arising
in the (against service Tax
duty year
2002-03) that Rs.
200000/- Appellate
Tribunal
has been
paid
10. As per the information and explanation given to us and on an
overall examination of the financial statements of the company for the
current and immediately preceding financial year, we are report that the
total accumulated losses of the company as on 31-03-2010 is Rs.
40245684.89 (Previous year Rs. 40911855.79) which is just equivalent to
the entire net worth of the company. While the company has incurred
cash profit of Rs. 854874.90 in the current year and cash loss of Rs.
1938930.67 in the immediately preceding financial.
11. As per information and explanation given to us, that the company
had repaid all its dues towards financial institution / Bank under one
time settlement scheme. In respect of other loan availed from Lloyd
Finance Ltd, Chandigarh against equipment, the total overdue amount is
Rs. 1298600.98 as on 31-03-2010, as per revised re-scheulement. The
said company has also filed the recovery suit against the company in
the Honorable Punjab and Haryana High Court for recovery. However, the
company does not have any borrowings in the form of debentures.
12. As per the information and explanation given to us, the company has
not granted any loans and advances on the basis of security by way of
pledge of shares, debentures and other securities to any body during
the year.
13. In our opinion, the company is not a chit fund or a nidhi / mutual
benefit fund / society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditors' Report) Order, 2003 are not applicable to the
Company.
14. According to the information and explanation given to us, the
company is not denting in or trading in share, securities, debentures
and other investments. Accordingly, the provisions of clause 4(xiv) of
the Companies (Auditors' Report) Order, 2003 are not applicable to the
company.
15. According to the information and explanation given to us, the
company has given any guarantees for loans taken by others from banks
or financial institutions.
16. According to the records of the company, the company has not raised
any term loan during the year.
17. According to the information and explanation given to us and on an
overall examination of the Balance Sheet of the company, we report that
no funds raised on short term basis has been used for long term
investments.
18. According to the information and explanations given to us, during
the year the company has not made preferential allotment of shares of
parties and companies Covered in the register maintained under section
301 of the companies Act, 1956.
19. The company has not issued any debentures during the year which
requires the creation of security. Therefore paragraph 4(xix) of the
companies (Auditors' Report) Order, 2003 is not applicable to the
Company.
20. The company has not raised any money by way of public issues during
the year for which the management has to disclose the end use of money
raised through the public issue. Therefore, paragraph 4(xx) of the
Companies (Auditors' Report) Order, 2003 is not applicable to the
company.
21. According to the information and explanation given to us, no fraud
on or by the company has been noticed or reported during the course of
our audit.
Place: Ambala Cantt For Jayant Bansal & Co.,
Chartered Accountants
Date: 28-05-2010 JAYANT BANSAL
(PARTNER)
Mar 31, 2009
We have audited the attached Balance Sheet of AM1ULA CEMENTS LIMITED,
YAMUNANAGAR as at 31st March, 2009 and also the Profit and Loss Account
and the cash flow statement for the year ended on that date annexed
thereto. These financial statement; are the responsibility of the
company; management. Our responsibility is to express an opinion on
these financial statements based on cur audit.
1. We conducted the audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements An auoit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
2. As required by the Companies (.Auditors Report) Order, 2003 issued
by the Central Government of India in terms of sub section (4A) of
section 227 of the Companies Act, 1956, we enclose in the annexure I a
statement on the matters specified in paragraphs 4 and 5 of the said
order.
3. Further to our comments in the Annexure referred to above. we
report that: -
(i) We have obtained all the information and explanation, which to the
best of our knowledge and belief were necessary fir [he purpose of our
audit;
(ii) In our opinion, proper books of accounts as required by the law,
has been kept by the company so far as appears from our examination of
those books
of the company.:
(iii) The Balance Sheet, Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement v/th the books of
accounts;
(iv) In our opinion, the Balance Sheet, Profit and Loss; Account and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub section 3(C ) of section 211 of
the Companies Act, 19:56;
(v) On the basis of the written representations received from the
directors, as on 31st March, 2009 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March 2009 from being appointed as a director under Section 274( 1
)(g) of the Companies Act, 1956;
(vi) We draw attention to note No. 11 in the financial statement. The
company has disposed off substantial part of the assets for repayment
of dues towards financial institution/Bank. Moreover, the accumulated
losses of ;he company have just equivalent to its entire net worth. The
accounts have, however, been prepared by the management as a going
concern, as explained ir. the abovementioned notes of Schedule "L". How
ever, in view of uncertainty for re-establishing the commercial
activities along with other matter;; as set forth m the above mentioned
notes, we are unable to comment as to whether the company will continue
as a going concern in the foreseeable future. Consequently,
adjustments may be required to the recorded amounts of assets and
classification of liabilities. The financal statements (and notes
thereto) do not disclose this fact.
(vii) In our opinion and to the best of our information and according
to the explanation given to us, subject to the omission of the
information dealt within the preceding paragraph, the said financial
statements read together with the notes thereon, give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally acceoted in India;
(a) In the case of Balance Sheet, of the state of affairs of the
Company as at 31st March 2009 and
(b) In the case of Profit and Loss Account, of the Loss for the year
ended on that date.
(c) In the cash flow statement, of the cash flow for the year ended on
that date.
ANNEXURE 1 REFERRED TO IN PARAGRAPH 1 OF AUDITORS REPORT OF EVEN DATE
ON THE ACCOUNTS OF AMDAI.A CEMENTS LIMITED FOR THE VãaR ENDED 31st
MARCH 2009
1. (a) The company has maintained proper records showing fad
particulars including quantitative details
and situation of fixed assets
(b) As explained to us that, due to closure of plant since January
2002, disposal of substantial part of plant and inadequate manpower, no
physical verification has been conducted during the year. However, the
necessary verification regarding wear and tear of the remaining assets
has been conducted by the responsible staff during the year at regular
intervals of time. No material discrepancies were noticed on such
verification.
(c) The company had previously disposed off substantial part of fixed
assets and it also has disposed off substantial part of assets acquired
under Capital work in progress new expansion scheme and Technology
Development Assistance scheme during the year. However, as explained by
the maragement tha: the account has been prepared on the basis of going
concern concept, because one plan (50 TPD capacity) is still with the
company and the management has also staited new justness activities
i.e. Trading of store and spares/Fabrics. Hence the management is
hopeail to re-establish its business activities in the ensuing years.
2. (a) As explained to us that, due to discontinuance of commercial
production since January 2002, the
management could not conduct the physical verification of the stock,
i.e. raw material, stores & spares and finished/semi-fmished goods of
the company during the year. So, we do not offer any comments on it and
rely on the managements certificate in this regard, (b) The management
has valued the closing stock as per stock records maintained by ;he
company and no physical veritication was carried out during the year
under consideration to work cut damaged stock. The company has taken
book value as value of the closing stock of raw mat.erial, work-in-
progress, finished goods and stores & spares So, we do not offer any
comments on the value of the stock as shown in the Balance Sheet, as we
have relied on the managements certificate regarding the value and
quality.
3 (a) The company has not gtanted any loans, secured or unsecured, to
companies, firms and other parties
listed in the register maintained under section 301 of the Companies
Act, 1956, where the rate of interest and other terns and conditions
are, prima facie, prejudicial to the interest of the ccinpany.
However, the compare has given advance to related linn towards supply
of goods/equpments which was adjustable against supplies. The term and
condition of such advance is not prima facie, prejudicial to the
interest of the company. (b) The company has not taken loans, secured
or unsecured, from companies, firms and other parties listed in the
register maintained under section 301 of the Companies Act, 1956, where
the rate of interest and terms and conditions are, prima facie,
prejudicial to the interest of the company.
4 In our opinion and according to the information and explanation given
to us, there are adequate internal control procedures commensurate with
the size of the company and the nature of its business with regard to
purchases of inversory, fixed assets and with regard to 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
controls with regards to purchase of inventories, fixed assets and for
sale of goods and services.
5. (a) According to the information and explanation given to us and as
confirmed by the Managing
Director of the company, we are of the opinion that the particulars of
contracts or arrangements that need to be entered into the register
maintained under secticn 301 of the Companies Act, 1955, have been so
entered. (b) In our opinion and according to the information and
explanation given to us, the transaction; made in pursuance of
contracts or arrangements entered in the register maintained under
section 30i of the Companies Act, 1956. have been made at prices which
are reasonable having regard to prevailing market prices at the
relevant time.
6 In our opinion and according to the information and explanation given
to us, the company has complied with the provisions of section 58A,
58AA or any other relevant provisions of the Companies Act, 1956 and
the Companies (Acceptance of Deposits) Rules, 1975, with regard to the
deposits accepted from the public. We are also informed that no order
has been passed b the Company Law Board or National Company Law
Tribunal or Reserve Bank of India or Any Court or any other Tribunal
7 In our openion and according to the information and explanation given
to us, that due to discontinuation of commercial production since
January 2002 and in view of low volume of its transactions, the company
does not have a formal system of internal audit commensurate with the
size and nature of its business. However, as pointed in clause above,
the company has an adequate internal control system.
8 According to the information and explanations given to us. in respect
of the company the Central Government has prescribed rules for the
maintenance of cost records under section .209(1)(d) of the Companies
Act l95o. But. the company has not maintained such cost records due to
discontinuance of the productions activities since January 2002.
9. (a) According to the records of the company and as per information
and explanation given to us, the company is generally regular in
depositing undisputed satutory dues including Providen Fund, investor
education and protection fund, Employees State Insurance Fund, Income
Tax, Saks Tax, Wealth Tax. Service Tax, Custom Duty, Excise Duty, Cess
and other materia statutory dues applicable to it with appropriate
authorities.
(b) According to the information and explanation given to us, no
undisputed amounts payable in respect of Income Tax, Stiles Tax, Wealth
Tax, Service Tax, Custom Duty, Excise Duty. Cess applicable to it were
in æarrears, as at 31-03-2009 for a period more than six months from
the date they became payable except Central Excise Duty amounting to
Rs. 3:7489.19 (for the year 2002-03) against which the company has paid
Rs. 200000.00 and the balance is yet to be paid, because the case is
pending before the appellant authority for settlement. The details of
the other cases are given below:
PARTICULARS PERIOD AMOUNT STATUS AS
DUE ON
31/03/2009
-Stock exchange Iisting fee:
The Stock Exchange Aherndabad 1997-09 126000.00 Yet to be paid
Jaipur Stock Exchange 1997-09 120000.00 -do-
The Delhi Stock Exchange
Association Ltd. 2000-09 155000.00 -do-
(C ) According to the information and explanation given to us,
there are no dues of Income Tax Sales Tax, Wealtli Tax, Service Tax,
Custom Duty, Excise Duty, Cess applicable to it, which hate not been
deposited on account of any dispute as on 31 -03-2009 except excise
duty. The details of which are given below: -
PARTICULARS NATURES OF YEAR TO AMOUNT FORUM WHERE
DUES WHICH IT DISPUTE IS
RELATES PENDING
Central Excise Difference in 1991-1993 357489.19 Central Excise and
Duty rate of excise (arising (against Service Tax
duty in the year
2002-03) that Rs. Appellate Tribunal
200000/-
has been
paid)
10 As per the information and explanation given to us and on an overall
examination of the firancial
statements of the company far the current and immediately preceding
financial year, we report that the total accumulated losses of the
company as on 31-03-2009 is Rs.10911588.79, which is just equivalent to
the entire net worth of the company. While the company has incurred
cash loss of Rs.1938930.67 in the current year and cash profits of
Rs.3724094.00 in the immediately preceding financial.
11 As per the information and explanation given to us, that the
cjrnpany has repaid all the dues of the
financial institutions under one time settlement scheme. In respect of
loan availed from the Central Bank of India, Ambala Cantt, the bank has
recalled its whole amount Rs.l 1004919.70 and filed the recovery suit
against the company in Debt Recovery Tribunal, Chandigaih. The company
has already approached the bank for settlement of dues under one time
settlement scheme, which has duly been accepted by the bank on dated
31/03/2009 and the company has paid the necessary upfront fee to the
bank for execution of the said compromise proposal. In other loan
availed from Lloyd Finance Ltd., Chandigarh against equipment, the
total overdue amount is Rs. 1298600.98 as on 31-03-2009, as per revised
reschedulement. The Said company has also filed the recovery suit
against the :ompany in the Honorable Punjab and Haryana High Court for
recovery. However, the company does not have any borrowings in the fcim
of debentures.
12. As per the nformation and explanation given to us, the company has
not granted any loans and on the basis of security by way of pledge of
shares, debentures an J other securities to any body iuriig the year.
13 In our opitiion, the eompam is not a chit fund or a nidhi/mutual
benefit fund /society. Therefore, the provisions of clause -l(xiii) of
the Companies (Auditors Report) Order, 2003 are not applicable to the
company.
14. According to the information and explanation giver, to us, the
company is not dealing in or trading in shares, securities, debentures
and other investments. Accordingly, die provisions of clause 4|xiv) of
the Companies (Auditors Report) Order, 2003 are not applicable to tie
company.
15. According to the information and explanation given to us, the co
npany hsis not given any guarantees for loans taken by others from
banks or financial institutions.
16. According to the records of the company, the company has not n.sed
any term loan during the year.
17. According to the information and explanation given to us and on an
overall examination of the Balance Sheet of the company, we report that
no funds raised on short erm basis has been used for long term
investments.
18 According to the information and explanations given to us, during
the year the company has not made preferential allotment of shares to
parties and companies covereJ in the register maintained unoer section
301 of the Companies A.ct, 1956.
19. The company has not issued any debentures during the year which
requires the creation of security. Therefore, paragraph 4,xixi of the
Companies (Auditors Repot) Order. 2003 is not applicable to the
company.
20. The company has not raised any money by way of public issues
during the year for which the management has to disclose the end use of
money raised througit the public issue. Therefore, part graph 4(xx) of
the Companies (Auditors Report) Order, 2003, is not applicable to the
company.
21. According to the information and explanation given to us, no tiaud
on or by the company has been noticed or reported during the course of
our audit.
Place: Ambala Canit For Jayant Batumi & Co.,
Chartered Accountants
Date: 26-06-2009
JAYANT BANSAL
(PARTNER)
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