Mar 31, 2023
Scan Steels Limited
Report on the Audit of Standalone Financial Statements
Opinion
We have audited the accompanying standalone financial statements of Scan Steels Limited (âthe Companyâ), which comprise the Balance Sheet as at 31st March 2023, and the Statement of Profit and Loss (including Other Comprehensive Income), Statement of Changes in Equity and Statement of Cash Flows for the year ended on that date and summary of significant accounting policies and other explanatory information (hereinafter referred to as the âstandalone financial statementsâ), attached herewith, being submitted by the Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended (the âListing Regulations).
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act,2013 (the âActâ) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the companies (Indian Accounting Standards) Rule, 2015, as amended,(Ind ASâ) and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2023, its Profit, total comprehensive income, changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (âSAâs) specified under section 143(10) of the Act and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Our responsibilities under those Standards are further described in the Auditorâs Responsibilities for the Audit of the standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules there under, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the standalone financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matter to be communicated in our report.
Sl.No. |
Key audit Matter |
Auditorâs Response |
|
1. |
Application of Ind AS 115 âRevenue from Contract with Customersâ) involves certain key judgements relating to identification of distinct performance obligations, determination of transaction price of the identified performance obligations, the appropriateness of the basis used to measure revenue recognized over a period. Disclosures which involve collation of information in respect of disaggregated revenue and periods over which the remaining performance obligations will be satisfied subsequent to the balance sheet date. Refer Notes 1.5 and 1.7 to the Financial Statements. |
Principal Audit Procedures Our audit approach consisted testing of the design and operating effectiveness of the internal controls and substantive testing as follows: ¦ Evaluated the design of internal controls relating to implementation of the new revenue accounting standard. ¦ Selected a sample of continuing and new contracts, and tested the operating effectiveness of the internal control, relating to identification of the distinct performance obligations and determination of transaction price. We carried out a combination of procedures involving enquiry and observation, reperformance and inspection of evidence in respect of operation of these controls. ¦ Tested the relevant information technology systemsâ access and change management controls relating to contracts and related information used in recording and disclosing revenue in accordance with the new revenue accounting standard. ¦ Selected a sample of continuing and new contracts and performed the following procedures: ¦ Read, analyzed and identified the distinct performance obligations in these contracts. ¦ Compared these performance obligations with that identified and recorded by the Company. ¦ Considered the terms of the contracts to determine the transaction parties including any variable consideration to verify the transaction price used to compute revenue and to test the basis of estimation of the variable consideration. ¦ Sample in respect of revenue recorded for time and material contracts were tested using a combination of approved time sheets including customer acceptances, subsequent invoicing and historical trend of collections and disputes. ¦ In respect of samples relating to fixed price contract progress towards satisfaction of performance obligation used to compute recorded revenue was verified with actual and estimated efforts from the time recording and budgeting systems. We also tested the access and change to management controls relating to these systems. |
¦ Sample of revenues disaggregated by type and service offering was tested with the performance obligations specified in the underlying contracts. ¦ Performed analytical procedures for reasonableness of revenues disclosed by type and service offerings. ¦ We reviewed the collation of information and the logic of the report generated from the budgeting system used to prepare the disclosure relating to the periods over the remaining performance obligations will be satisfied subsequent to the balance sheet date. ¦ The standard is applied retrospectively and the cumulative effect of applying this standard is recognized. The adoption of Ind AS 115 did not have any significant impact for the company. |
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2 |
Contingent Liabilities against litigation and claims |
We have obtained an understanding of the companyâs internal instructions and procedures in respect of estimation and disclosure of contingent liabilities and adopted the following audit procedures: ¦ Understood and tested the design and operating effectiveness of control established by the management for obtaining all relevant information for pending litigation cases. ¦ Discussed with the management any material developments and latest status of legal matters. ¦ Read various correspondences and related documents pertaining to litigation cases and relevant external legal opinions obtained by the management and performed various substantive procedures on calculation supporting the disclosure of contingent liabilities. ¦ Examined managementâs judgment and assessment those matters that are not disclosed as the probability of material outflow is considered to be remote. ¦ Reviewed the adequacy and completeness of disclosures. Based on the above procedures performed estimation and disclosure of contingent liabilities are considered to be adequate and reasonable. |
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Information Other than the Financial Statements and Auditorâs Report Thereon
The Companyâs Board of Directors is responsible for the other information. The other information comprises the information included in the Management Discussion and Analysis of Boardâs Report including Annexures to boardâs Report, Business Responsibility Report, Corporate Governance and Shareholderâs Information, but does not include the standalone financial statements and our auditorâs report thereon.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Managementâs Responsibility for the Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in section 134[5) of the Act with respect to the preparation of these Standalone financial statements that give a true and fair view of the financial position, financial performance, including other comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Ind AS. This responsibility also includes maintenance of adequate accounting records
in accordance with the provisions of the Act for safeguarding of 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 the standalone financial statement that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Companyâs ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Companyâs financial reporting process.
Auditorâs Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorâs report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAâs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management.
⢠Conclude on the appropriateness of managementâs use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Companyâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorâs report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify
our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditorâs report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the standalone financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the standalone financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key
audit matters. We describe these matters in our auditorâs report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditorâs Report) Order, 2020 (âthe Orderâ), issued by the Central Government of India in terms of 143(11) of the Act, we give in the Annexure-A a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
As required by Section 143(3) of the Act based on our audit, 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 the branches not visited by us.
c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, Statement of Changes in Equity and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under Section 133 of the Act.
e) On the basis of the written representations received from the directors as on 31st March, 2023 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2023 from being appointed as a director in terms of Section 164 (2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the companyâs internal financial controls over financial reporting.
g) With respect to the other matters to be included in the Auditorâs Report in accordance with the requirements of section 197(16) of the Act, as amended:
In our opinion and to the bast of our information and according to the explanation given to us , the remuneration paid by the company to its directors during the year is in accordance with provision of section 197 of the Act.
h) With respect to the other matters to be included in the Auditorâs 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 standalone financial statements -Refer Note 26 to the financial statements;
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
iv. (a) The Management has represented that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entity (âIntermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(b) The Management has represented, that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity (âFunding Partiesâ), with
Bhubaneswar 13th May, 2023
UDIN: 23306323BGWVRU2060
the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement.
v. No dividend is declared or paid during the year and the previous year by the company. Hence compliance with Section 123 of the Companies Act is not applicable.
vi. As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable for the Company only w.e.f. April 1, 2023, reporting under this clause is not applicable.
For SRB & Associates
Chartered Accountants F.Regd. No-310009E Sd/-K. P. Swain
Partner M. No: 306323
Mar 31, 2018
Report on the Ind AS Financial Statements
We have audited the accompanying financial statements of Scan Steels Limited [the ââCompanyââ], which comprise the Balance Sheet as at March 31, 2018, the statement of Profit and Loss [including other comprehensive income] and the statement of cash flows and the statement of changes in equity for the year then ended and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the Ind AS Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in section 134[5] of the Companies Act,2013 [ââthe Actââ] with respect to the preparation and presentation of these Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income and cash flows and changes in equity of the company in accordance with the accounting principles generally accepted in India, including the Indian 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 the Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these Ind AS financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters that 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 Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the Ind AS 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 Ind AS financial statements.
Opinion
In our opinion, and to the best of our information and according to the explanations given to us, the aforesaid Ind AS 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, of the state of affairs of the Company as at March 31, 2018, and its profit and its cash flows for the year ended on that date.
Emphasis of Matter
Without qualifying our opinion, we draw attention to
i. Note - 40 to the financial statements which describes the approval of the restructuring arrangement by the lead banker State Bank of India and about recognition of interest cost of other members.
ii. Note - 41 to the financial statements which describes on steps taken by the company for transition to Ind AS compliances.
Our opinion is not qualified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1 . As required by the Companies [Auditorâs Report] Order, 201 6[ââthe Orderââ] issued by the Central Government of India in terms of sub-section [11] of section 143 of the Companies Act, 2013, we give in the âAnnexure Aâ; a statement on the matters specified in the paragraph 3 and 4 of the said 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.
c. The Balance Sheet, the Statement of Profit and Loss and the statement of cash flows and the statement of changes in equity dealt with by this report are in agreement with the books of account.
d. In our opinion, the aforesaid Ind AS financial statements comply with the accounting standards specified under section 1 33 of the Act, read with rule 7 of the Companies [Accounts] Rules, 2014
e. On the basis of the written representations received from the Directors as on 31 st March 201 8 and taken on record by the Board of Directors, none of the Directors are disqualified as on 31st March 2018from being appointed as a Director in terms of section 164 [2] of the Act.
f. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ;
g. With respect to the other matters to be included in the Auditorâs Report in accordance with rule 11 of the Companies [Audit and Auditors] Rules, 201 4, 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 Ind AS financial statements. Refer Note-28 to the Ind AS financial statements;
ii. the Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. there has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the company.
Annexure-A to the Independent Auditorsâ Report
(Referred to in paragraph 1 under âReport on Other Legal and Regulatory Requirementsâ section of our report of even date)
The Annexure referred to in our Independent Auditorâs Report to the members of Scan Steels Limited [the Company] on the Ind AS financial statements for the year ended March 31, 2018, we report that:
[i][a] The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
[b] The Company has a regular programme of physical verification of its fixed assets, by which all fixed assets are verified in a phased manner over a period of two years. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to such program, a portion of fixed asset has been physically verified by the management during the year and no material discrepancies were noticed on such verification.
[c] The deed of immovable properties are held in the name of the Company in almost all cases excepting for
- Freehold land of 7.68 Acres situated in Village Raiberna and Laing, Sundergarh which is in the name of M/s. Shristi Ispat Limited, the company which was merged in to this company during 2005.
- Land of 14.88 Acres occupied by the company situated in Village-Kudithini, Bellary, Karnataka.
[ii.] a. The inventory has been physically verified by the management during the year. In our opinion, the frequency of such verification is reasonable.
b. The discrepancies noticed on the aforesaid verification between the physical stocks and book records were not material.
[iii] According to the information and explanations given to us, no loan has been granted by the Company [secured/ unsecured loans] to companies/ firms/ limited liability partnerships or other parties covered in the register maintained under section 189 of the Act.Accordingly reporting on interest and its repayment are not applicable.
[iv.] In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act in respect of grant 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, the Company has accepted deposits from the public and complied in accordance with Chapter-VI [section 73 to 76] of the Act.
[vi.] We have broadly reviewed the books of account maintained by the Company pursuant to the rules prescribed by the Central Government for maintenance of cost records under sub-section [1] of section 148 of the Act, and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of the records.
[vii.][a] According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted/accrued in the books of account in respect of undisputed statutory dues including provident fund, employeesâ state insurance, income-tax, sales tax, service tax, duty of customs, duty of excise, value added tax, goods and services tax ,cess and other material statutory dues have been generally regularly deposited during the year by the Company with the appropriate authorities.
[b] According to the information and explanations given to us, the following dues of Customs Duty, Income Tax, VAT, Goods and Services Tax and Entry Tax have not been deposited by the Company on account of disputes:
STATEMENT OF DISPUTED DUES
SI No. |
Name of the Statute |
Period |
Nature of Dues |
Amount (Rs. âLakhsâ) |
Forum where dispute is pending |
1 |
Orissa Sales Tax Act |
2001-2002 |
OST |
0.63 |
Sales Tax Tribunal, Cuttack |
2 |
Entry Tax Act |
2001-2002 |
ENTRY TAX |
0.09 |
Sales Tax Tribunal, Cuttack |
3 |
Orissa Sales Tax Act |
2002-2003 |
OST |
11.00 |
Assistant Commissioner of Commercial Tax, RKL |
4 |
Orissa Sales Tax Act |
2004-2005 |
OST |
3.66 |
OST Tribunal, Cuttack |
5 |
Entry Tax Act |
2004-2005 |
ENTRY TAX |
3.45 |
OST Tribunal, Cuttack |
6 |
Orissa Sales Tax Act |
2005-2006 |
OST |
100.62 |
High Court of Odisha, Cuttack |
7 |
Entry Tax Act |
2005-2006 |
ENTRY TAX |
16.79 |
High Court of Odisha, Cuttack |
8 |
Central Sales Tax Act |
2005-2006 |
CST |
4.25 |
High Court of Odisha, Cuttack |
9 |
OVAT , Act |
2006-2007 |
OVAT |
101.28 |
High Court of Odisha, Cuttack |
10 |
Central Sales Tax Act |
2006-2007 |
CST |
153.29 |
High Court of Odisha, Cuttack |
11 |
Entry Tax Act |
2006-2007 |
ENTRY TAX |
30.73 |
High Court of Odisha, Cuttack |
12 |
OVAT , Act |
2007-08 & 2008-09 |
OVAT |
1.10 |
Additional CST Northern Zone |
13 |
Entry Tax Act |
2007-08 & 2008-09 |
ENTRY TAX |
0.67 |
Additional CST Northern Zone |
14 |
Central Sales Tax Act |
2007-08 & 2008-09 |
CST |
0.93 |
Additional CST Northern Zone |
15 |
Central Sales Tax Act |
01.08.2008 to 28.02.2011 |
CST |
3.18 |
Additional CST Northern Zone |
16 |
OVAT, Act |
01.04.2009 to 31.03.2011 |
OVAT |
1.98 |
Additional CST Northern Zone |
17 |
Entry Tax Act |
01.04.2009 to 31.03.2011 |
ENTRY TAX |
4.55 |
Additional CST Northern Zone |
18 |
OVAT, Act |
01.08.2008 to 28.02.2011 |
OVAT |
1499.34 |
OST Tribunal, Cuttack / Stay Revision Commissioner |
19 |
Entry Tax Act |
01.08.2008 to 28.02.2011 |
ENTRY TAX |
315.77 |
OST Tribunal, Cuttack / Stay Revision Commissioner |
20 |
OVAT , Act |
04.04.2012 to 31.03.2014 |
OVAT |
2.71 |
Commissioner Cuttack , Revision |
21 |
Entry Tax Act |
01.04.2012 to 31.03.2014 |
ENTRY TAX |
21.05 |
Commissioner Cuttack, Revision |
22 |
Central Sales Tax Act |
01.04.2012 to 31.03.2014 |
CST |
5.38 |
Commissioner Cuttack, Revision |
23 |
Central Sales Tax Act |
01.04.2014 to 30.09.2015 |
CST |
1.54 |
DCCT, Rourkela |
24 |
Central Sales Tax Act |
01.04.2016 to 31.03.2017 |
CST |
1.14 |
DCCT, Rourkela |
25 |
Custom Act 1962 |
2012 & 2013 |
Custom Duty |
132.04 |
Customs, Excise& Service Tax Appellate Tribunal, Bangalore |
26 |
Income Tax act |
2009-10 & 2011-12 |
Income Tax |
88.94 |
The Commissioner of Income Tax(appeals) |
Total |
2506.10 |
(vii) In our opinion and according to the information and explanations given to us, the Company has defaulted in repayment of dues to banks who have declared the same as non-performing in respect of the following amounts:
Particular |
Nature of Loan |
Period of Default |
Principal Amount outstanding in Books of Account as at 31st March 2018 (Rs. In Lakhs) |
Remarks |
Oriental Bank of Commerce |
Cash Credit |
30th April,2016 to 31st March, 2018. |
1265.00 |
Refer Note No-40 and 12 to Financial Statements. |
Punjab National Bank. |
Cash Credit |
30th April,2016 to 31st March, 2018. |
2527.00 |
|
IDBI Bank |
Cash Credit |
30th June, 2016 to 31st March, 2018. |
1760 .00 |
|
Term Loan |
368 .00 |
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Bank of India |
Cash Credit |
30th June, 2017 to 31st March, 2018. |
1306.00 |
(ix.) In our opinion and according to the information and explanations given to us, the term loans taken by the Company have been applied for the purpose for which they were raised. The Company has not raised any money by way of initial public offer or further public offer (including debt instruments) during the year.
(x.) According to the information and explanations given to us, no fraud by the Company or on by its officers or employees has been noticed or reported during the course of our audit.
(xi.) According to the information and explanations given to us, managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act.
(xii.) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, paragraph 3(xii) of the Order is not applicable.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with section 1 77 and 1 88 of the Companies Act, 2013 and the details of such transactions have been disclosed in the Ind AS financial statements of the Company as required by the applicable accounting standards.
(xiv) Based upon audit procedures performed and the information and explanations given by the management, The company has allotted on Preferential basis 8,00,000 no of equity shares at a premium as decided by the Board of Directors out of the conversion of warrants allotted earlier. (Refer Note - 42)
(xv.) The Company has not entered into any non-cash transactions with its directors or persons connected with them. Accordingly, the provisions of clause 3(xv) of the Order are not applicable to the Company.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, the provisions of clause 3(xvi) of the order are not applicable to the Company.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Scan Steels Limited (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the Ind AS financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, (the âStandardsâ) issued by ICAI and deemed to be prescribed under section 1 43 (1 0) of the Companies Act, 201 3, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of theInd AS financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of Ind AS financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of Ind AS financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on the Ind AS financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For SRB & Associates
Chartered Accountants
F.Regd. No-310009E
B. Mohanty
30th May, 2018 Partner
Bhubaneswar M. No:056264
Mar 31, 2016
To the Members of Scan Steels Limited
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of SCAN STEELS LIMITED(''the Company''), which comprise the balance sheet as at 31 March 2016, the statement of profit and loss and the cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone 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 and presentation of these standalone 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 the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone 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 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 standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone 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, of the state of affairs of the company as at 31st March, 2016, and its loss and its cash flows for the year ended on that date.
Emphasis of Matter
Without qualifying our opinion, we draw attention to
i. Note No-2(vi) to the financial statements that describes that the company has defaulted on debt payments to consortium lenders, due to unprecedented adverse developments witnessed by industry as a whole during financial year.
ii. Note No-2(xi) to the financial statements that describes that the company has calculated reduction in value of inventory amounting to Rs. 78,42,86,306 due to sharp decline in finished goods price.
Our opinion is not qualified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act 2013, we give in the Annexure-A a statement on the matters specified in paragraph 3 and 4 of the Order.
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.
(c) 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.
(d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of written representations received from the directors as on 31 March 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2016 from being appointed as a director in terms of Section 164 (2) of the Act; and
(f) With respect to the adequacy of the internal financial control over financial reporting of the company and the operating effectiveness of such controls, refer to our separate report in "Annexure-B" and
(g) With respect to the other matters to be included in the Auditor''s 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.
ii. The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There are no amounts which are required to be transferred to the Investor Education and Protection Fund by the Company.
âAnnexure Aâ to the Independent Auditorsâ Report
The Annexure referred to in our Independent Auditors''
Report to the members of the Company on the standalone financial statements for the year ended 31 March 2016, we report that:
1.(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 in phased periodic manner, which in our opinion is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies have been noticed on such verification.
(c) The deed of immovable properties are held in the name of the Company in almost all cases excepting for
(I.) Freehold land of 7.68 Acres situated in Village Raiberna and Laing, Sundergarh which is in the name of M/s. Shristi Ispat Limited, the company which was merged in to this company during 2005.
(ii.) Land of 14.88 Acres occupied by the company situated in Village-Kudithini, Bellary, Karnataka.
2. In respect of its Inventories:
(a) As explained to us, Stocks have been physically verified by the management at regular intervals during the year. The frequency of verification is reasonable.
(b) In our opinion and according to the information and explanation given to us, the procedures of physical verification of inventory 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. As explained to us, there was no material discrepancies noticed on physical verification of inventories as compared to book records.
3. The Company has not granted any loan during the year, secured or unsecured to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act, 2013.
4. In our opinion and as per explanations given to us, the company has complied with the provisions of section 185 and186 of the Companies'' Act 2013 in respect of loans, investment, guarantees and security.
5. The Company has accepted deposits from public and in our opinion and according to the information and explanation given to us, the directives issued by Reserve Bank of India with respect to relevant provisions of section 73 to 76 or any other relevant provisions of Act and Companies Rules 2015 with regard to deposits from public are complied with. We are informed that no order has been passed by the Company Law Board of National Company Law Tribunal or Reserve Bank of India or any court or any other tribunal, in this context.
6. According to information and explanations given to us, the company is maintaining cost records as prescribed by central government under section 148(1) of the Act, in respect of the activities carried on by the company.
7. a)According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted/ accrued in the books of account in respect of undisputed statutory dues including provident fund, income tax, sales tax, wealth tax, service tax, duty of customs, value added tax, cess and other material statutory dues have been regularly deposited during the year by the Company with the appropriate authorities.
(b) According to the information and explanations given to us, there are no material dues of wealth tax, duty of customs and cess which have not been deposited with the appropriate authorities on account of any dispute excepting for following which have not been deposited by the Company on account of disputes:
STATEMENT OF DISPUTED DUES
SI No. |
Name of the Statute |
Period |
Nature of Dues |
Amount (Rs.) |
Forum where dispute is pending |
1 |
Orissa Sales Tax Act |
2001-2002 |
OST |
1,37,958 |
Sales Tax Tribunal,Cuttack |
2 |
Entry Tax Act |
2001-2002 |
ENTRY TAX |
24,482 |
Sales Tax Tribunal,Cuttack |
3 |
Orissa Sales Tax Act |
2002-2003 |
OST |
22,96,983 |
Assistant Commissioner of Commercial Tax,RKL |
4 |
Orissa Sales Tax Act |
2004-2005 |
OST |
17,15,871 |
Assistant Commissioner of Commercial Tax,RKL |
5 |
Entry Tax Act |
2004-2005 |
ENTRY TAX |
9,95,460 |
OST Tribunal, Cuttack |
6 |
Orissa Sales Tax Act |
2005-2006 |
OST |
1,07,26,881 |
High Court of Odisha,Cuttack |
7 |
Entry Tax Act |
2005-2006 |
ENTRY TAX |
18,50,937 |
High Court of Odisha,Cuttack |
8 |
Central Sales Tax Act |
2005-2006 |
CST |
5,30,992 |
High Court of Odisha,Cuttack |
9 |
OVAT, Act |
2006-2007 |
OVAT |
1,07,38,853 |
High Court of Odisha,Cuttack |
10 |
Central Sales Tax Act |
2006-2007 |
CST |
1,61,83,731 |
High Court of Odisha,Cuttack |
11 |
Entry Tax Act |
2006-2007 |
ENTRY TAX |
33,51,331 |
High Court of Odisha,Cuttack |
12 |
OVAT, Act |
2007-08 & 2008-09 |
OVAT |
2,25,331 |
Additional CST Northern Zone |
13 |
Entry Tax Act |
2007-08 & 2008-09 |
ENTRY TAX |
1,36,613 |
Additional CST Northern Zone |
14 |
Central Sales Tax Act |
2007-08 & 2008-09 |
CST |
1,82,853 |
Additional CST Northern Zone |
15 |
Central Sales Tax Act |
01.04.2009 to 30.06.2010 |
CST |
64,03,136 |
Additional CST Northern Zone |
16 |
Central Sales Tax Act |
01.08.2008 to 28.02.2011 |
CST |
5,17,563 |
Additional CST Northern Zone |
17 |
OVAT, Act |
01.04.2009 to 31.03.2011 |
OVAT |
2,98,363 |
Additional CST Northern Zone |
18 |
Entry Tax Act |
01.04.2009 to 31.03.2011 |
ENTRY TAX |
9,04,748 |
Additional CST Northern Zone |
19 |
OVAT, Act |
01.08.2008 to 28.02.2011 |
OVAT |
16,96,61,165 |
Commissioner of Commercial Tax,Cuttack |
20 |
Entry Tax Act |
01.08.2008 to 28.02.2011 |
ENTRY TAX |
4,00,53,670 |
Commissioner of Commercial Tax,Cuttack |
21 |
Custom Act 1962 |
2012 & 2013 |
Custom Duty |
1,38,48,914 |
Customs,Excise& Service Tax Appellate Tribunal, Bangalore |
22 |
Income Tax act |
2009-10 & 2011-12 |
Income Tax |
88,93,575 |
The Commissioner of Income Tax(appeals) |
Total |
28,96,79,410 |
8 In our opinion and according to the information and explanation given to us, the company has defaulted in repayment of dues to banks who have declared the same as non-performing in respect of following amounts:
Particular |
Nature of Loan |
Period of Default |
Amount outstanding in Books of Account as at 31st March 2016 (Rs.) |
Remarks |
State Bank of India |
Cash Credit |
28th November,2015 to 31st March, 2016. |
88,29,08,085 |
Refer Note No-2(vi) to Financial Statements |
Term Loan |
5,57,30,655 |
|||
Central Bank of India |
Cash Credit |
5,72,67,850 |
||
Term Loan |
6,99,59,128 |
9 Based upon the audit procedures performed and the information and explanations given by management, the company has not raised moneys by way of initial public offer or further public offer including debt instrument.
10 Based upon audit procedures performed and the information and explanations given by management, we report that no fraud by the company has been noticed.
11 Based upon audit procedures performed and the information and explanations given by management, the managerial remuneration has been paid or provided in accordance with the requisite approvals mandate by the provisions of section197 read with schedule V to the companies Act.
12 In our opinion, the company is not a nidhi company.
13 In our opinion, all transactions with related parties are in compliance with section 177 and 188 of companies Act2013 and the details have been disclosed in the financial statements as required by the applicable accounting standards.
14 Based upon audit procedures performed and the information and explanations given by the management, the company has allotted on Preferential basis 1,10,05,330 no of equity shares and 1,28,49,605 no. of preference shares at a premium as decided by the Board of Directors. Further, the company has also allotted on Preferential basis 80,00,000 Noâs of share warrants convertible into equivalent number of equity shares of face value of Rs.10 each of the company at an exercise price of Rs. 50(Rupees Fifty Only) (including a premium ofRs.40) per equity shares within 18 months from the date of issue of warrants, in its Board Meeting held on 14th October,2015, the allottees had exercised such power to convert 44,53,330 number of warrants into equity shares at board meeting held on different dates during the year ( Refer noteno.2(v)&5).
15 Based upon audit procedures performed and the information and explanations given by the management, the company has not entered into any non cash transaction with directors or persons connected with them.
16 In our opinion, the company is not required to be registered under section 45 1A of the Reserve Bank of India Act,1934.
Annexure "B" to the Independent Auditor''s report of even date on the Standalone Financial Statements as at and for the year ended 31st March 2016 of Scan Steels Limited
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Scan Steels Limited ("the Company") as of March 31, 2016 in conjunction with our audit of the standalone 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 internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require generally expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the standalone financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For SRB & Associates
Chartered Accountants
Firm Regn. No: 310009E
B.Mohanty
Place : Rajgangpur Partner
Date : 24th May, 2016 M.N-056264
Mar 31, 2015
We have audited the accompanying standalone financial statements of
Scan Steels Limited (For- merly Known as Clarus Infrastructure Realties
Limited) ('the Company'), which comprise the bal- ance sheet as at 31
March 2015, the statement of profit and loss and the cash flow
statement for the year then ended, and a summary of significant
accounting policies and other explanatory informa- tion.
Management's Responsibility for the Standalone 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 and presentation of these standalone 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 ad- equate 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 reason- able and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the account- ing records,
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.
Auditor's Responsibility
Our responsibility is to express an opinion on these standalone
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 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 standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone 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, of the state of affairs of the company
as at 31st March, 2015 and its profit and its 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 2013, we give in
the Annexure a statement on the matters specified in the paragraph 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;
(c) 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;
(d) In our opinion, the aforesaid standalone financial statements
comply with the Ac- counting Standards specified under Section 133 of
the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
(e) On the basis of the written representations received from the
directors as on 31 March 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31 March 2015
from being appointed as a director in terms of Section 164 (2) of the
Act; and
(f) With respect to the other matters to be included in the Auditor's
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  Refer Note 2(1) to the
financial statements;
ii. The Company did not have any long term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
Annexure to the Independent Auditors' Report
The Annexure referred to in our Independent Auditors' Report to the
members of the Company on the standalone financial statements for the
year ended 31 March 2015, we report that:
1. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) As explained to us, the fixed assets have been physically verified
by the Management in phased periodic manner, which in our opinion is
reasonable having regard to the size of the Company and the nature of
its assets. No material discrepancies have been noticed on such
verification
(c) Fixed assets disposed off during the year were not substantial, and
therefore, don't affect the going concern assumption.
2. In respect of its Inventories:
(a) As explained to us, Stocks have been physically verified by the
management at regular interval during the year. The frequency of
verification is reasonable.
(b) In our opinion and according to the information and explanation
given to us, the procedures of physical verification of inventory
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. As
explained to us, there was no material discrepancies noticed on
physical verification of inventories as com- pared to book records.
3. (a) The Company has not granted any loan during the year to the
Related parties covered in the register maintained under section 189 of
the Companies Act, 2013 ('the Act'). How- ever the company has taken
loan from parties where maximum outstanding as on 31.03.2015 is
Rs.2,52,41,699.00
(b) In the case of the loans granted to the bodies corporate listed in
the register maintained under section 189 of the Act, the borrowers
have been regular in the payment of the interest as stipulated. The
terms of arrangements do not stipulate any repayment schedule and the
loans are repayable on demand. Accordingly, paragraph 4(iii)(c) of the
Order is not applicable to the Company in respect of repayment of the
principal amount.
(c) There are no overdue amounts of more than rupees one lakh in
respect of the loans granted to the bodies corporate listed in the
register maintained under section 189 of the Act.
4. In our opinion and explanations given to us, there are adequate
internal control systems 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. We have not ob- served any
major weaknesses in internal control system of the Company.
5. The Company has accepted deposits from the public and in our
opinion and according to the information and explanation given to us,
the directives issued by Reserve Bank of India with respect to relevant
provisions of Companies Act,2013 and rules framed there under, where
applicable, have been complied with. We are 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, in this
context.
6. According to information and explanations given to us, the company
is maintaining cost records as prescribed by Central Government under
section 148(1) of the Act, for the products of company.
7. a) According to the information and explanations given to us and on
the basis of our examination of the records of the Company, amounts
deducted/ accrued in the books of ac- count in respect of undisputed
statutory dues including provident fund, income tax, sales tax, wealth
tax, service tax, duty of customs, value added tax, cess and other
material statutory dues have been regularly deposited during the year
by the Company with the appropriate authorities. As explained to us,
the Company did not have any dues on account of employees' state
insurance and duty of excise.
According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, income tax,
sales tax, wealth tax, service tax, duty of customs, value added tax,
cess and other material statutory dues were in arrears as at 31 March
2015 for a period of more than six months from the date they became
payable.
(b) According to the information and explanations given to us, there
are no material dues of wealth tax, duty of customs and cess which have
not been deposited with the appropriate authorities on account of any
dispute. However, according to information and explanations given to
us, the following dues of income tax, sales tax, service tax and value
added tax have not been deposited by the Company on account of
disputes:
STATEMENT OF DISPUTED DUES
Sl.Name of the Nature
No.Statute of dues Amount ( )
1 OVAT Act. OVAT 56,67,306.00
2 OVAT Act. OVAT 69,40,305.00
3 OVAT Act. OVAT 6,53,111.00
4 OVAT Act. OVAT 4,33,82,725.00
5 OVAT Act. OVAT 3,17,563.00
6 OVAT Act. OST 18,79,165.00
7 Income Tax Income 88,93,575.00
Act. Tax
TOTAL 6,77,33,750.00
Sl.Name of the Period to which the Forum where
No.Statute amt relates dispute is pending
1 OVAT Act. 2007-08, 2008-09 & Additional
2009-10 Commissioner of
Commercial Tax
2 OVAT Act. 2002-03, 2003-04 & Assistant
2004-05 Commissioner of
Commercial Tax,
RKLA
3 OVAT Act. 2009-10 & 2010-11 Deputy
Commissioner of
Commercial Tax,
Rourkela II Circle.
4 OVAT Act. 2005-06 & 2006-07 High Court of
Odisha, Cuttack.
5 OVAT Act. 2008-09 & 2010-2011 Joint Commissioner
of Commercial Tax.
6 OVAT Act. 2001-02, 2003-04 & Sales Tax Tribunal,
2004-05 Cuttack.
7 OVAT Act. 2009-10 & 2011-12 The Commissioner
of Income Tax
* net of amounts paid under protest.
(c) According to the information and explanations given to us the
amounts which were required to be transferred to the investor education
and protection fund in accordance with the relevant provisions of the
Companies Act, 2013 and rules there under has been transferred to such
fund within time.
8 The company has no accumulated losses at the end of the financial
year and has incurred cash profit of 17,67,18,631.00 during the
financial year covered by our audit and in the immediately preceding
financial year.
9 The Company did not have any outstanding dues to financial
institutions, banks or debenture holders during the year.
10 In our opinion and according to the information and explanations
given to us, the Company The Company has given guarantee for loans
taken by its sister concern from banks or financial institutions.
11 The Company has raised term loan Nil during the year and the same
has been applied for the purpose for which they were raised.
12 According to the information and explanations given to us, no
material fraud on or by the Company has been noticed or reported during
the course of our audit.
For SRB & Associates
Chartered Accountants
Firm Regn. No: 310009E
B. Mohanty
Bhubaneswar
Partner
29th May, 2015
M.N-056264
Mar 31, 2014
We have audited the accompanying financial statements of M/s SCAN
STEELS LIMITED (the Company), which comprises the Balance Sheet as at
31st March , 2014, and the Statement of Profit and Loss for the year
ended, and a summary of the significant accounting policies 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 Standards notified under the companies Act, 1956 ("the
Act"). Read with the general circular 15/203 dated 13th September,2013
of the ministry of corporate affairs in respect of section 133 of the
companies Act 2013 and with accordance with the accounting principles
generally accepted in india. 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 the
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 disclosures in the financial statements. The procedures
selected depend on the Auditors 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 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 March 31st 2014;and
b) in the case of the Statement of Profit and Loss Accounts, of the
Loss for the year ended on that date;
Meanwhile, it is to bring in notice that Clarus Infrastructure Realties
Ltd, had a reverse merger with Scan Steels Ltd, whereby Scan Steels
Ltd. was merged into Clarus Infrastructure Realties Ltd. And the name
of the emerging Company is Scan Steels Ltd, as per the order of Hon.
High Court of Orissa: Cuttack vide case No. COPET NO. 25 of 2011
(connected with COPET NO. 7 of 2011) Hon. Court given the order dated
25th February, 2014 and accordingly carrying operations under the name
of Scan Steels Ltd. Meanwhile, we, have Audited books and accounts only
of Clarus Infrastructure Realties Ltd. and verified the Consolidation
of Accounts of the Scan Steels Ltd. and Clarus Infrastructure Realties
Ltd. as on 31st March 2014.
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 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 appears from our examination of
those books.
(c) The Balance Sheet, and Statement of Profit and Loss, 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,
comply with the Accounting Standards notified under the Act read with
the General Circular 15/2013 dated 13th September,2013 of the Ministry
of Corporate Affairs in respect of Section 133 of the Companies Act,
2013.
(e) On the basis of the written representations received from the
directors as on March 31st, 2014 and taken on record by the Board of
Directors, none of the directors is disqualified as on March 31st, 2014
from being appointed as a director in terms of section 274 (1) (g) of
the Act.
ANNEXURE TO INDEPENDENT AUDITORS REPORT
CONSOLIDATED ANNEXURE TO THE AUDITORS'' REPORT OF INDEPENDENT
AUDITOR OF SCAN STEELS LIMITED
(Formerly known as CLARUS INFRASTRUCTURE REALTIES LIMITED) post merger
of Scan Steels Limited with Clarus Infrastructure Realties Limited
(Note: Standalone audit of Scan Steels Limited carried on by M/S SRB &
Associates, Chartered Accountants, and we have consolidated and
reviewed the report of auditors of Scan Steels Limited.)
(Referred to in paragraph 1 under Report on other Legal and Regulatory
Requirements Section of our report of even date)
1. In respect of its Fixed Assets :
The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of information available.
a) As explained to us, the fixed assets have been physically verified
by the Management in phased periodic manner, which in our opinion is
reasonable having regard to the size of the Company and the nature of
its assets. No material discrepancies have been noticed on such
verification.
b) Fixed assets disposed off during the year were not substantial, and
therefore, don''t affect the going concern assumption.
2. In respect of its Inventories:
(a) As explained to us, Stocks have been physically verified by the
management at regular interval during the year. The frequency of
verification is reasonable.
(b) In our opinion and according to the information and explanation
given to us, the procedures of physical verification of inventory
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. As
explained to us, there wa s n o m ateri al discrepancies noticed on
physical verification of inventories as compared to book records.
3. In respect of loans, secured or unsecured , granted or taken by the
Company to / from companies , firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956:
(a) The company had granted interest free unsecured loan to company &
related parties covered in the register maintained under section 301 of
the companies Act, 1956. The maximum amount involved during the year
aggregate to Rs.20,00,000/- and the year end balance in respect of this
loan was NIL. However the company has taken loan from related parties
during the year where outstanding as on 31.03.2014 is Rs. 3,89,15,728/-
and maximum amount outstanding during the year was Rs.6,54,21,699/-.
(b) In our opinion and according to the information and explanation
given to us, the rate of interest, wherever applicable and other terms
and conditions are not prima facie prejudicial to the interest of the
company.
(c) In respect of loans taken the principal amount along with interest
is repayable on demand and hence the question of overdue amount does
not arise.
4. In our opinion and explanation given to us. There are adequate
internal control systems 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. We have not observed any
major weaknesses in internal control system of the Company.
5. (a) In our opinion and according to the information given to us, the
particulars of contracts or arrangement referred to in section 301 of
the Act have been entered in the register required to be maintained
under that section.
(b) In our opinion and according to the information given to us, the
transactions made in pursuance of contracts or arrangements referred to
in (5) (a) above and exceeding the value of 5 Lakhs with any party
during the year have been made at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
6. The Company has accepted deposits from the public and in our opinion
and according to the information and explanation given to us, the
directives issued by Reserve Bank of India and the provisions of
section 58A and 58AA and relevant provisions of companies Act, 1956 and
rules framed there under, where applicable, have been complied with. We
are 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, in this context.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. According to information and explanations given to us, the company
is maintaining cost records as prescribed by central government under
section209 (1) (d) of companies Act, 1956 for the products of the
company.
9. (a) According to information and explanations given to us and on
the basis of the standalone auditors report of the Scan Steel Limited
as per the records of the Company, amounts deducted/ accrued in the
books of account in respect of undisputed statutory dues including
Provident Fund, Investor Education and Protection Fund, Income- Tax,
Sales-tax, Wealth tax, Service Tax and other material statutory dues
have been regularly deposited during the year by the Company with the
appropriate authorities.
According to information and explanations given to us, no undisputed
amounts payable in respect of Provident Fund, Investor Education and
Protection Fund, Income-Tax, Sales-tax, Wealth tax, Service Tax and
other material statutory dues were in arrears as at 31 March 2014 for a
period of more than six months from the date they became payable
(b) According to information and explanations given to us, the
following dues of Orissa Sales Tax, Entry tax, And Central Sales Tax
have not been deposited by the Company on account of disputes.
STATEMENT OF DISPUTED DUES
Sl. Nature of
No. Name of the Statute dues Amount (rs)
1 Orissa Sales Tax Act. OST 1,37,958
2 Entry Tax Act Entry Tax 24,482
3 Orissa Sales Tax Act OST 22,96,983
4 Entry Tax Act Entry Tax 7,21,265
5 Entry Tax Act Entry Tax 7,97,111
6 Orissa Sales Tax Act OST 21,30,340
7 Orissa Sales Tax Act OST 17,15''871
8 Entry Tax Act Entry Tax 9,95,460
9 Orissa Sales Tax Act " OVAT " 1,07,26,881
10 Entry Tax Act Entry Tax 18,50,937
11 Central Sales Tax Act CST 5,30,992
12 Orissa Sales Tax Act OVAT 1,07,38,853
13 Central Sales Tax Act CST 1,61,83,731
14 Entry Tax Act Entry Tax 33,51,331
15 Entry Tax Act Entry Tax 1,36,613
16 Central Sales Tax Act CST 1,82,853
17 OVAT Act OVAT 2,25,331
18 Central Sales Tax Act CST 51,22,509
19 Central Sales Tax Act CST 3,17,563
20 Entry Tax Act Entry Tax 4,54,748
21 OVAT Act OVAT 1,98,363
TOTAL 5,88,40,175
Name of the Statute period to Forum where dispute is pending
which the
amt relates
Orissa Sales Tax Act. 2001-02 Sales Tax Tribunal, CTC
Entry Tax Act 2001-02 Sales Tax Tribunal, CTC
Orissa Sales Tax Act 2002-03 Asst. Commissioner of
Commercial Tax, RKL
Entry Tax Act 2002-03 Sales Tax Tribunal, CTC
Entry Tax Act 2003-04 Asst. Commissioner of
Commercial Tax, RKL
Orissa Sales Tax Act 2003-04 Asst. Commissioner of
Commercial Tax, RKL
Orissa Sales Tax Act 2004-05 Asst. Commissioner of
Commercial Tax, RKL
Entry Tax Act 2004-05 OST Tribunal, Cuttack
Orissa Sales Tax Act 2005-06 High Court of Orissa,Cuttack
Entry Tax Act 2005-06 High Court of Orissa,Cuttack
Central Sales Tax Act 2005-06 High Court of Orissa,Cuttack
Orissa Sales Tax Act 2006-07 High Court of Orissa,Cuttack
Central Sales Tax Act 2006-07 High Court of Orissa,Cuttack_
Entry Tax Act 2006-07 High Court of Orissa,Cuttack_
Entry Tax Act 2007-08 AddI. CCT, Sambulpur
& 2008-09
Central Sales Tax Act 2007-08 AddI. CCT, Sambulpur
& 2008-09
OVAT Act 2007-08 AddI. CCT, Sambulpur
& 2008-09
Central Sales Tax Act 2009-10 AddI. CCT, Cuttack
Central Sales Tax Act 2008-09 Joint commissioner of
& 2010-11 Commercial taxes
Entry Tax Act 2009-10 Dy. commissioner of
& 2010-11 Commercial taxes
Roulkela II circle, Panposh
OVAT Act 2009-10 Dy. commissioner of
& 2010-11 Commercial taxes
Roulkela II circle, Panposh
10. The company has no accumulated losses at the end of the financial
year and in immediately preceding financial year.
11. According to information and explanations given to us, the Company
did not have any default in repayment of installments to banks,
financial institutions, or debenture holders which continued up the end
of the financial year.
12. In our opinion and according to 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.
13. The Company is not a chit fund or a nidhi / mutual benefit fund /
society. Therefore the provisions of paragraph 4 (xiii) of the order
are not applicable to the Company.
14. The company has maintained proper records of the transaction and
contracts in respect of dealing & trading in shares , securities,
debentures, and other investment and timely entries have been made
therein. All shares , securities , debentures and other investments
have been held by the company in its name.
15. The Company has given guarantee for loans taken by associate
concerns from banks.
16. The Company has raised term loan of Rs.55,60,424/- during the year
and the same has been applied for the purpose for which they were
raised.
17. The Company did not raise any funds on short term basis which have
been used for long term purpose and vice versa.
18. 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.
20. The Company has not raised any money by way of public issue during
the year.
21. According to the information given to us, no material fraud on or
by the Company has been noticed or reported during the course of our
audit.
For Motilal & Associates
Chartered Accountants
FRN: 106584W
CA Motilal Jain
Place: Mumbai Partner
Date: 18th November, 2014 Membership No.: 036811
Mar 31, 2013
Report of Financial Statements
We have audited the accompanying financial statements of M/s. Clarus
Infrastructure Realities Limited ("the company") which comprise of
the Balance Sheet as at 31st March, 2013, the statement of Profit and
Loss and the Cash Flow Statement of the Company for the year then ended
and a summary of the significant accounting policies 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 ofthe financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
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.
Auditor''s 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 misstatement.
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 ofthe financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
Reference is invited to the following:
(i) The company is yet to make the compounding application with the
Central Government on account of non compliance with the provisions of
Section 295 of the Companies Act, 1956 in form of obtaining the prior
approval of the Central Government in the previous year on account of
loan advanced to related parties covered in the register maintained
under section 301 of the Companies Act, 1956. We are unable to quantify
the financial impact on the financial statements in terms of penal
consequences on account of this non compliance.
(ii) Note No. 21.3, wherein the company is yet to obtain the approval
for the scheme of arrangement from the Hon''ble High Court of Orrisa. We
reserve our opinion on the effectiveness of the scheme of arrangement
since the company has not been able to provide convincing reasons for
the inadvertent delay in obtaining the approval from the Hon''ble High
Court of Orrisa.
Subject to the effects of matters discussed in para (i) and (ii) above
and para 2(d) below, in our opinion and to the best of our information
and according to the explanations given to us, the 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:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31 March 2013;
(ii) in the case of the Statement of Profit and Loss, of the loss for
the year ended on that date; and
(iii) 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
a) As required by the Companies (Auditors Report) Order, 2003 ("the
Order"), as amended, issued by the Central Government of India in
terms of sub-section (4A) of section 227 of the Act, we give in the
Annexure a statement on the matters specified in paragraphs 4 and 5
ofthe Order.
b) As required by section 227(3) ofthe 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 account as required by 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 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 comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956 except for
Accounting Standard 15 "Accounting for Employee Benefits" in
respect of leave encashment and Gratuity liability not provided as
explained in note 21.15; and
e. on the basis of written representations received from the directors
as on 31 March 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31 March 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
Annexure to the Auditors'' Report
(Referred to in Paragraph 3 of our report of even date)
Based upon the information and explanations furnished to us, and the
books and records examined by us in the normal course of our audit, we
report that to the best of our knowledge and belief:
1. In respect of its fixed assets:
a) As explained to us, the company is in the process of maintaining
proper records showing full particulars including quantitative details
and situation of fixed assets on the basis of available information. As
on the date of signing of this report the register was not available
for verification.
b) According to the information and explanations given to us, the fixed
assets of the company have been physically verified at the year-end,
which in our opinion is reasonable, having regard to the size of the
company and nature of its assets. As per the management representation,
no material discrepancies have been reported on such verification as
compared to book records.
c) In our opinion and according to the information and explanations
given to us, the Company has not disposed of substantial part of fixed
assets during the year and the going concern status of the Company is
not affected.
2. In respect of its inventories:
a) As explained to us, inventories of shares have been physically
verified by the management at regular intervals during the year.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories of
shares followed by the management are reasonable and adequate in
relation to the size ofthe company and 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 inventories
of shares. As explained to us, there was no material discrepancies
noticed on physical verification of inventory of shares as compared to
the book records.
3. In respect of loans, secured or unsecured, granted or taken by the
Company to/from companies, firms or other parties covered in the
register maintained under Section 301 ofthe Companies Act, 1956:
a) The Company had granted interest free unsecured loans to two
companies covered in the register maintained under section 301 ofthe
Companies Act, 1956. The maximum amount involved during the year
aggregate to Rs. 50,05,000/- and the year-end balance in respect of
these loans was Rs. Nil;
b) The above loans being interest free, the question of commenting on
the rates of interest does not arise. Further the loans have been
received back during the year and hence the question of whether receipt
of principal is regular and reasonable steps has been taken for
recovery ofprincipal does not arise.
c) The Company has taken interest free unsecured loans from one party
and one company covered in the register maintained u/s. 301 of the
Companies Act, 1956. The maximum amount involved during the year
aggregate to Rs. 94,00,000/- and the year-end balance in respect of
these loans was Rs. 68,00,000/-;
d) In our opinion and according to the information and explanations
given to us, the terms and conditions on which such loans had been
taken are not, prima facie prejudicial to the interest ofthe Company;
e) In respect of said loans, these are repayable on demand and hence
the question of overdue amounts as such does not arise.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventory, fixed assets and with regard
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 controls.
5. To the best of our knowledge and belief and according to the
information and explanations given to us, 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.
To the best of our knowledge and according to the information and
explanations given to us, there were no transactions in pursuance of
contracts or arrangements entered in the register maintained under
section 301 of the Companies Act, 1956, aggregating during the year to
Rs. 5,00,000/- (Rupees five lacs) or more in respect of any party.
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
within the meaning of section 58A and section 58AA or other relevant
provisions ofthe of the Companies Act, 1956 and Companies (Acceptance
of Deposits) Rules, 1975 with regard to acceptance of deposits from the
public.
7. There is no internal audit system prevalent in the Company.
8. According to information and explanations give to us, Central
Government has not prescribed maintenance of Cost Records under Section
209(1)(d) of the Companies Act, 1956 in respect of business activities
of the Company.
9. In respect ofstatutory dues:
a) According to the records of the Company, and according to the
information and explanations given to us, the company is generally
regular in depositing undisputed statutory dues including Investor
Education & Protection Fund, Income-Tax, Service tax and other material
statutory dues applicable to the company with the appropriate
authorities during the year.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of the aforesaid dues were
outstanding as at 31st March, 2013 for a period of more than six months
from the date of becoming payable.
c) According to the records of the Company, and as per information and
explanations given to us there are no disputed statutory dues
outstanding during the year.
10. The accumulated losses of the Company at the end of the financial
year are not less than 50% of its net worth. The Company has incurred
cash loss in the current and immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
banks. The company has not issued any debentures.
12. In our opinion and according to 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.
13. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society.
14. As per information and explanation given to us and books and
records produced before us, the company is dealing and trading in
shares and securities and proper records have been maintained of
transactions and contracts and timely entries have been made therein.
Also, shares and securities have been held by the company in its own
name.
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. The Company has not obtained any term loans during the year.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, funds
raised on short-term basis during the year have not been used for
long-term investments.
18. According to the information and explanations given to us, during
the year, the Company has not made any 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.
20. The Company has not raised any money by way of public issue during
the year covered by our audit report.
21. To the best of our knowledge and according to the information and
explanations given to us by the management, no fraud on or by the
Company has been noticed or reported during the year that causes the
financial statements to be materially misstated.
For Tushar Parekh and Associates
Chartered Accountants
FRN No: 117307W
CA Tushar Parekh
Proprietor
Membership number: 103230
Place: Mumbai
Date: 29th May, 2013
Mar 31, 2012
1. We have audited the attached Balance Sheet of M/s. Clarus
Infrastructure Realities Limited as at 31 st March, 2012 and also the
Profit and loss Account and the Cash Flow Statement of the Company 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 an opinion on these financial statements
based on our audit.
We conducted our 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 financial statements. An audit also includes assessing
the accounting principles used and significant estimates made by
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 a
statement on the matters specified in paragraph 4 and 5 of the said
Order.
3. Further to our comments in the Annexure referred to in paragraph 2
above, 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 account, as required by law, have
been kept by the Company, so far as appears from our examination of
those books;
c) The Balance Sheet, Profit Loss Account and Cash Flow Statement dealt
with by this report are in agreement with the books of account;
d) In our opinion the Balance Sheet, Profit and Loss Account and Cash
Flow Statements dealt with by this report comply with the mandatory
Accounting Standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956 except for Accounting Standard 15 "Accounting
for Employee Benefits" in respect of leave encashment and Gratuity
liability not provided as explained in note 21.14;
e) On the basis of written representations received from the directors,
and taken on record by the Board of Directors, in our opinion none of
the director is disqualified as on 31st March, 2012 from being
appointed as directors in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act 1956 as on that date.
0 Reference is invited to Note 21.15, regarding non compliance with the
provisions of Section 295 of the Companies Act, 1956 in obtaining the
prior approval of the Central Government. The impact of this non
compliance on the loss for the year and results is not ascertainable.
g) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts subject to the effects
of matters discussed in para (d) and (f) above read together with the
Significant Accounting Policies and other notes thereon give the
information required by the Companies Act, 1956, in the manner so
required, and present a true and fair view, in conformity with the
accounting principles generally accepted in India:
i. in so far as it relates to Balance Sheet, of the state of affairs
of the Company as at 31st March, 2012;
ii. in so far as it relates to the Profit and Loss Account, of the
Loss for the year ended on that date;
iii. in case of Cash Flow Statement of the cash flows for the year
ended on that date.
Annexure to the Auditors Report
(Referred to in Paragraph 3 of our report of even date)
Based upon the information and explanations furnished to us, and the
books and records examined by us in the normal course of our audit, we
report that to the best of our knowledge and belief:
1. In respect of its fixed assets:
a) As explained to us, the company is in the process of maintaining
proper records showing full particulars including quantitative details
and situation of fixed assets on the basis of available information. As
on the date of signing of this report the register was not available
for verification
b) According to the information and explanations given to us, the fixed
assets of the company have been physically verified at the year-end,
which in our opinion is reasonable, having regard to the size of the
company and nature of its assets. As per the management representation,
no material discrepancies have been reported on such verification as
compared to book records.
c) In our opinion and according to the information and explanations
given to us, the Company has not disposed of substantial part of fixed
assets during the year and the going concern status of the Company is
not affected.
2. In respect of its inventories:
a) As explained to us, inventories of shares have been physically
verified by the management at regular intervals during the year.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories of
shares followed by the management are reasonable and adequate in
relation to the size of the company and 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 inventories
of shares. As explained to us, there was no material discrepancies
noticed on physical verification of inventory of shares as compared to
the book records.
3. In respect of loans, secured or unsecured, granted or taken by the
Company to/from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956:
a) The Company has granted interest free unsecured loans to a company
covered in the register maintained under section 301 of the Companies
Act, 1956. The maximum amount involved during the year aggregate to Rs.
50,05,000/- and the year-end balance in respect of these loans was Rs.
45,05,000/-;
b) The above loans being interest free, the question of commenting on
the rates of interest does not arise. In the absence of any stipulated
terms and conditions of the loans granted, we are unable to comment
whether the same are prejudicial to the interest of the Company,
whether receipt of principal is regular and reasonable steps have been
taken for recovery of principal.
c) The Company has taken interest free unsecured loans from one party
covered in the register maintained u/s. 301 of the Companies Act, 1956.
The maximum amount involved during the year aggregate to Rs. 15,00,000/-
and the year-end balance in respect of these loans was Rs. 15,00,000/-; .
d) In our opinion and according to the information and explanations
given to us, the terms and conditions on which such loans had been
taken are not, prima facie prejudicial to the interest of the Company;
e) In respect of said loans, these are repayable on demand and hence
the question of overdue amounts as such does not arise. .
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventory, fixed assets and with regard
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 controls. .
5. To the best of our knowledge and belief and according to the
information and explanations given to us, 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.
To the best of our knowledge and according to the information and
explanations given to us, there were no transactions in pursuance of
contracts or arrangements entered in the register maintained under
section 301 of the Companies Act, 1956, aggregating during the year to
5,00,000/- (Rupees five lacs) or more in respect of any party.
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
within the meaning of section 58A and section 58AA or other relevant
provisions of the of the Companies Act, 1956 and Companies (Acceptance
of Deposits) Rules, 1975 with regard to acceptance of deposits from the
public.
7. There is no internal audit system prevalent in the Company.
8. According to information and explanations give to us, Central
Government has not prescribed maintenance of Cost Records under Section
209(1)(d) of the Companies Act, 1956 in respect of business activities
of the Company.
9. In respect of statutory dues:
a) According to the records of the Company, and according to the
information and explanations given to us, the company is generally
regular in depositing undisputed statutory dues including Investor
Education & Protection Fund, Income-Tax, Service tax and other material
statutory dues applicable to the company with the appropriate
authorities during the year.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of the aforesaid dues were
outstanding as at 31st March, 2012 for a period of more than six months
from the date of becoming payable.
c) According to the records of the Company, and as per information and
explanations given to us there are no disputed statutory dues
outstanding during the year.
10. The accumulated losses of the Company at the end of the financial
year are not less than 50% of its net worth. The Company has incurred
cash loss in the current and immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
banks. The company has not issued any debentures.
12. In our opinion and according to 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.
13. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society.
14. As per information and explanation given to us and books and
records produced before us, the company is dealing and trading in
shares and securities and proper records have been maintained of
transactions and contracts and timely entries have been made therein.
Also, shares and securities have been held by the company in its own
name.
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. The Company has not obtained any term loans during the year.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, funds
raised on short-term basis during the year have not been used for
long-term investments.
18. According to the information and explanations given to us, during
the year, the Company has not made any 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.
20. The Company has not raised any money by way of public issue during
the year covered by our audit report.
21. To the best of our knowledge and according to the information and
explanations given to us by the management, no fraud on or by the
Company has been noticed or reported during the year that causes the
financial statements to be materially misstated.
For Tushar Parekh and Associates
Chartered Accountants
(FRN: 117307W)
CA Tushar Parekh
Proprietor
Membership No: 103230
Place: Mumbai
Date: 31st July, 2012
Mar 31, 2010
1. We have audited the attached Balance Sheet of M/s. Clarus
Infrastructure Realities Limited (Formerly Known as Clarus Finance &
securities Ltd) as at 31s1 March, 2010 and also the Profit and loss
Account and the Cash Flow Statement of the Company for the year ended
on that date annexed thereto. These financial statements are the
responsibility of the Companys management. Our responsibility is to
express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with Auditing Standards generally
accepted in India. Those stapdards 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 financial statements. An audit also includes assessing
the accounting principles used and significant estimates made by
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 a
statement on the matters specified in paragraph 4 and 5 of the said
Order.
3. Further to our comments in the Annexure referred to in paragraph 2
above, 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 account, as required by law, have
been kept by the Company, so far as appears from our examination of
those books;
c) The Balance Sheet, Profit Loss Account and Cash Flow Statement dealt
with by this report are in agreement with the books of account;
d) In our opinion the Balance Sheet, Profit and Loss Account and Cash
Flow Statements dealt with by this report comply with the mandatory
Accounting Standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956 except for Accounting Standard 15 "Accounting
for Employee Benefits" in respect of leave encashment and Gratuity
liability not provided as explained in note 9 of Schedule 14;
e) On the basis of written representations received from the directors,
and taken on record by the Board of Directors, in our opinion none of
the director is disqualified as on 31s1 March, 2010 from being
appointed as directors in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act 1956 as on that date.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
Significant Accounting Policies and other notes thereon give the
information required by the Companies Act, 1956, in the manner so
required, and present a true and fair view, in conformity with the
accounting principles generally accepted in India:
i. in so far as it relates to Balance Sheet, of the state of affairs
of the Company as at 31st March, 2010;
ii. in so far as it relates to the Profit and Loss Account, of the
Profit for the year ended on that date;
iii. in case of Cash Flow Statement of the cash flows for the year
ended on that date.,
Annexure to the Auditors Report (Referred to in Paragraph 3 of our
report of even date)
Based upon the information and explanations furnished to us, and the
books and records examined by us in the normal course of our audit, we
report that to the best of our knowledge and belief:
1. In respect of its fixed assets:
a) As explained to us, the company is in the process of maintaining
proper records showing full particulars including quantitative details
and situation of fixed assets on the basis of available information.
b) -As explained to us, the fixed assets have been physically verified
at the year-end, which in our opinion is reasonable, having regard to
the size of the company and nature of its assets. No material
discrepancies have been reported on such verification as compared to
book records.
c) In our opinion and according to the information and explanations
given to us, the Company has not disposed of substantial part of fixed
assets during the year and the going concern status of the Company is
not affected.
2. In respect of its inventories:
a) As explained to us, inventories of shares have been physically
verified by the management at regular intervals during the year.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories of
shares followed by the management are reasonable and adequate in
relation to the size of the company and 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 inventories
of shares. As explained to us, there was no material discrepancies
noticed on physical verification of inventory as compared to the book
records.
3. In respect of loans, secured or unsecured, granted or taken by the
Company to/from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956:
a) The Company had granted interest free unsecured loans to two
companies covered in the register maintained under section 301 of the
Companies Act, 1956. The maximum amount involved during the year
aggregate to Rs. 57,40,000/- and the year-end balance in respect of
these loans was Rs. Nil.
b) In our opinion and according to the information and explanations
given to us, the terms and conditions on which such loans had been
granted are not, prima facie prejudicial to the interest of the
Company.
c) The principal amounts were payable on demand and there were no
written stipulations as to the repayment schedule.
d) In respect of said loans, these have been repaid during the year and
hence the question of overdue amounts as such does not arise.
e) The Company had taken interest free unsecured loans from two
companies and a party covered in the register maintained u/s. 301 of
the Companies Act, 1956. The maximum amount involved during the year
aggregate to Rs. 2,44,00,000/- and the year-end balance in respect of
these loans was Rs. Nil.
f) In our opinion and according to the information and explanations
given to us, the terms and conditions on which such loans had been
taken are not, prima facie prejudicial to the interest of the Company.
g) In respect of said loans, these have been repaid during the year and
hence the question of overdue amounts as such does not arise.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventory, fixed assets and with regard
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 controls.
5. To the best of our knowledge and belief and according to the
information and explanations given to us, 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.
According to the information and explanations given to us, there were
no transactions in pursuance of contracts or arrangements entered in
the register maintained under section 301 of the Companies Act, 1956,
aggregating during the year to Rs. 5,00,000/- (Rupees five lacs) or
more in respect of any party.
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
within the meaning of section 58A and section 58AA or other relevant
provisions of the of the Companies Act, 1956 and Companies (Acceptance
of Deposits) Rules, 1975 with regard to acceptance of deposits from the
public.
7. There is no internal audit system prevalent in the Company.
8. According to information and explanations give to us, Central
Government has not prescribed maintenance of Cost Records under Section
209(1 )(d) of the Companies Act, 1956 in respect of business activities
of the Company.
9. In respect of statutory dues:
a) According to the records of the Company, and according to the
information and explanations given to us, the company is generally
regular in depositing undisputed statutory dues including Investor
Education & Protection Fund, Income-Tax, Service tax and other material
statutory dues applicable to the company with the appropriate
authorities during the year.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of the aforesaid dues were
outstanding as at 31st March, 2010 for a period of more than six months
from the date of becoming payable.
c) According to the records of the Company, and as per information and
explanations given to us there are no disputed statutory dues
outstanding during the year.
10. In our opinion, the Company does not have accumulated losses as at
the end of the financial year exceeding fifty percent of its net worth
and company has not incurred cash losses in the current year.
11., In our opinion the Company has not defaulted in repayment of dues
to banks. The company has not issued any debentures.
12. In our opinion, the company has not granted any loans and advances
on the basis of security by way of pledge of shares, debentures and
other securities. æ
13. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society.
14. As per information and explanation given to us and books and
records produced before us, the company is dealing and trading in
shares and securities and proper records have been maintained of
transactions and contracts and timely entries have been made therein.
Also, shares and securities have been held by the company in its own
name.
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. The Company has not obtained any term loans during the year.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, funds
raised on short-term basts during the year have not been used for
long-term investments.
18. According to the information and explanations given to us, during
the year, the Company has made preferential allotment of 3,00,000
shares of Rs. 10/- each aggregating to Rs. 30,00,000/- to parties
covered in the Register maintained under Section 301 of the Companies
Act, 1956.
19. The Company has not issued any debentures during the year.
20. The Company has not raised any money by way of public issue during
the year covered by our audit report.
21. To the best of our knowledge and according to the information and
explanations given to us by the management, no fraud on or by the
Company has been noticed or reported during the year that causes the
financial statements to be materially misstated.
For Tushar Parekh and Associates
Chartered Accountants
(FRN: 117307W)
CA Tushar Parekh
Place : Mumbai. Proprietor
Date : 29th May, 2010 Membership No: 103230