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Auditor Report of Orissa Minerals Development Company Ltd.

Mar 31, 2015

1. We have audited the accompanying financial statements of The Orissa/Minerals Development Company Limited ("the Company"), which comprise the Balance Sheet as at 31st March, 2015, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, signed by us under reference to this report and a summary of the significant accounting policies and other explanatory information. 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.

Management''s Responsibility for the Standalone Financial Statements

2. The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of 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

3. Our responsibility is to express an opinion on these financial statements based on our audit.

4. 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.

5. 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.

6. 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.

7. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.

Opinion

8. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2015, its profit and its cash flows for the year ended on that date.

Emphasis of Matters

9. As indicated in the Note 35 to the Financial Statements mining operation of the Company is continued to be remained suspended due to non-renewal of the leases and non-receipt of requisite clearances from the Government of Odisha and the Central Government. These conditions indicate the existence of a material uncertainty that may cast significant doubt about the Company''s ability to continue its operations pursuant to its main objective. These financial statements have been prepared on a going concern basis mainly for the initiative taken by the Company''s management for opening of the mines and resumption of mining operations.

Report on Other Legal and Regulatory Requirements

10. As required by the Companies (Auditor''s Report) Order, 2015 ("the Order") issued by the Central Government of India in terms of Section 143 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order.

11. As required by Section 143 (3) of the Act, we report that:

(a) We have sought and obtained, except any report as might have made by the Vigilance department of the Company, 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 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) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, there is no matter which may have an adverse effect on the functioning of the Company.

(f) On the basis of the written representations received from the directors other than Mr. T. Chattopadhyay and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2015 from being appointed as a director in terms of Section 164 (2) of the Act.

(g) With respect to the other matters to be included in the 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:

a. The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 25 to the financial statements.

b. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

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

12. In terms of the Directions and Sub-Direction of the Comptroller & Auditor General of India under section 143(5) of the Act, we give in the ADDENDUM our report on the matters included in the Directions and Sub-Directions as aforesaid.

Other Matters

This revised report issued in compliance with the Audit Memo No. A. A/cs/OMDC/14-15/01 dated 18.06.2015 issued by the Office of the Principal Director of Commercial Audit, Ranchi supersedes our report dated 29th May 2015 to the members of The Orissa Minerals Development Company Limited.

ANNEXURE TO THE AUDITORS'' REPORT

To the members of The Orissa Minerals Development Company Limited

[Referred to in paragraph 10 of the Auditors'' Report of even date]

1. (a) The Company is maintaining proper records showing full particulars including quantitative details and situation of fixed assets.

(b) The fixed assets of the Company have been physically verified by the management during the year and no material discrepancies between the book records and the physical inventory have been noticed. In our opinion, the frequency of verification is reasonable.

2. (a) The inventory has been physically verified by the management during the year. In our opinion, the frequency of verification is reasonable.

(b) In our opinion, 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) On the basis of our examination of the inventory records, in our opinion, the Company is maintaining proper records of inventory. The discrepancies noticed on physical verification of inventory as compared to book records were not material and have been properly dealt with in the books of account.

3. The Company has not granted any loans, secured or unsecured, to companies, firms or other parties covered in the register maintained under Section 189 of the Act.

4. In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business for the purchase of inventory and fixed assets and for the sale of goods and services. Further, on the basis of our examination of the books and records of the Company, and according to the information and explanations given to us, we have neither come across nor have been informed of any continuing failure to correct major weaknesses in the aforesaid internal control system.

5. The Company has not accepted any deposits within the meaning of Sections 73 or 76 of the Act and the rules framed there under.

6. We have broadly reviewed the books and records maintained by the company in respect of its products where maintenance of cost records has been specified by the Central Government under sub-section (I) of section 148 of the Companies Act and are of opinion that prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of these books and records to determine whether they are accurate or complete.

7. (a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is generally regular in depositing the undisputed statutory dues including provident fund, employees'' state insurance, income-tax, sales-tax, wealth tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues with the appropriate authorities.

The extent of the arrears of statutory dues outstanding as at 31st March 2015, for a period of more than six months from the date they became payable, in respect of share of shortfall of distributable interest on Provident Fund are as follows-

Name of Statute Nature of due Amount Period to which it Due date of (Rs in Lacs) relates payment

Provident Fund Share of shortfall of 6.00 2012-13 - Act, 1952 distributable interest

(b) According to the information and explanations given to us and the records of the Company examined by us, the particulars of dues of sales-tax, service tax, duty of excise and value added tax as at 31st March 2015 which have not been deposited on account of a dispute, are as follows-

Name of the statute Nature of dues Amount Period to which Forum where the the amount dispute is pending (Rs in Lacs.) relates

The Central Sales Tax Central Sales 4.44 2003-04 Appellate Tribunal Act,1956 Tax

Odisha Value Added VAT 21.34 2005-06 High Court of Orisse Tax Act, 2004

Odisha Entry Tax Act, Entry Tax 34.79 2005-06 High Court of Orissa 1999

Odisha Entry Tax Act, Entry Tax 2.31 2006-07 Commissioner 1999 Appeal

Odisha Entry Tax Act, Entry Tax 0.88 2007-08 Appellate Tribunal 1999

Odisha Value Added VAT 224.25 2006-07 Commissioner Tax Act, 2004 Appellate

Finance Act, 1994 Service Tax 7.05 2012-13 Commissioner Appeal

(c) According to the information and explanations given to us and the records of the Company examined by us, no amounts were required to be transferred to Investor Education and Protection Fund during the year in accordance with the provisions of section 205C of the Companies Act, 1956 and rules made there under and there were no dues in this regard outstanding as at 31st March 2015.

8. The company has no accumulated losses as at 31st March 2015 and it has not incurred any cash losses in the financial year ended on that date or in the immediately preceding financial year.

9. The Company has neither borrowed funds from financial institutions nor issued any debentures.

10. According to the information and explanations given to us and the records of the Company examined by us, the Company has not given any guarantee for loans taken by others from banks or financial institutions during the year.

11. The company has not obtained any term loans.

12. During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India and the books and papers made available to us, we have not come across any instance of fraud on or by the Company.



For LB. Jha & Co.,

Chartered Accountants

(Firm Registration number 301088E)



Kamal Kumer Bhanja

Partner

(Membership number 14722)

Kolkata, 3rd July, 2015


Mar 31, 2014

A. Report on the Financial Statements

We have audited the accompanying financial statement of The Orissa Minerals Development Company Limited, which comprise the Balance Sheet as at 31st March, 2014. the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

B. 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 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 fair presentation of the financial Statements that are free from material misstatement, whether due to fraud or error.

C. 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 Standard 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 form 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 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.

D. Opinion

In our opinion and to the best of information and according to the explanations given to us, the financial statement 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 31, 2014;

(b) In the case of the Statement of Profit and Loss, of the profit for the year ended on that date;

(c) In the case of Cash Flow Statement, of the Cash Flows for the year ended on that date.

E. Emphasis of matter

1) Attention is drawn to the Mote 32 to the Financial Statements regarding non-availability of confirmation of balances from Trade Payables/Trade Receivables/Loans & Advances and the adjustment, if any, which may arise on receipt of confirmations is presently not quantifiable and accordingly their consequential impact on the year''s profit and year-end Assets & Liabilities is not ascertainable.

2) We also draw attention to Note 36 to the financial statements which states about preparation of the accounts on a going concern basis inspite of the fact that mining operations of the Company have been stopped for more than three years due to non-receipt of environment/fores''t/other clearances from the Government of Odisha as well as Central Government and the management is regularly following up with the Governments for opening and resumption of mining operations.

Our opinion is not qualified in respect of the above matters.

F. 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 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 of the Order.

2. As required by Section 227(3) of the Act, we report that:

a. we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

b. In our opinion proper books of account as required by law have been kept by the Company so far as appeals.

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 sub-section (3C) of Section 211 of the Act;

e. The provision of clause (g) of sub-section ( l ) of Section 274 of the Act is not applicable to the Company, vide notification GSR - 829 (Z) dated 21.10.2003 issued by the Department of Company Affairs, Govt. of India, New Delhi.

f. Since the Central Government has not issued any notification as to the rate at which the cess is to be paid under Section 441A of the Act nor has it issued any Rules under the said Section, prescribing the manner in which such cess is to be paid, no cess is due and payable by the Company.

ANNEXURE TO THE AUDITORS'' REPORT (Referred to in Paragraph F.l of our report of even date)

1. [a] The Company has maintained proper records to show full particulars including quantitative details and situation of the fixed assets.

[b] The Fixed Assets have been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable having regard to the size of the Company and the nature of its fixed assets. The discrepancies noticed on such verification were not material and have been properly dealt with in the books of account.

[c] In our opinion, and according to the information and explanations given to us, the Company has not disposed off a substantial part of its fixed assets during the year.

2. [a] As explained to us, stock of stores have been physically verified during the year by the management. Stock of Finished Goods and Raw Materials has been physically verified by an outside agency on behalf of the Company. In our opinion, the frequency of verification is reasonable.

[b] In our opinion, the procedures of physical verification of inventory followed by the management were reasonable and adequate in relation to the size of the Company and the nature of its business.

[c] In our opinion, the Company is maintaining proper records of inventory. The discrepancies noticed on physical verification of inventory as compared to book records were not material,

3. The Company has not granted/taken any loans secured unsecured to/from companies, firm or other parties covered in the register maintained under Section 301 of the act.

4. In our opinion and according to the information and explanations given to us and based on our review, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business for the purchase of inventory and fixed assets and for the sale of services. There was no sale of goods made during the year. Further, on the basis of our examination on the books and records of the Company, and according to the information and explanations given to us, we have neither come across nor have we been informed of any instances of major weaknesses in the aforesaid internal control procedure and continuing failure on the part of the management to take corrective course of action in this regard.

5. In our opinion and according to the information and explanations given to us, during the year there were no transactions that were need to be entered into the register in pursuance of Section 301 of Act.

6. The Company has not accepted any deposits under the provisions of Sections 58A and 58AA of the Act and the rules framed there under.

7. In our opinion, and based on our review, the Company has an internal audit system which need to be strengthened to make it commensurate with the size and nature of its business.

8. We have made an overall review of the books of account maintained by the Company, pursuant to the rules made by the Central Government of India, for the maintenance of cost records has been prescribed under clause (d) of sub-section (1) of Section 209 of the Act and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate and complete.

9. [a] According to the information and explanations given to us and records of the Company

exammed by us. the Company is generally regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and other material statutory dues as applicable to it.

There are no arrears of outstanding statutory dues other than share of shortfall of distributable interest on Provident Fund as at the last day of the financial year for a period of more than 6 months from the date they became payable:

Name of Statute Nature of due Amount Period to Due date of (Rs. in lacs) which it payment relate

P.F. Act. Share of short fall 3.00 (Estd.) 2012-13 * of distributable interest

*P.F A/cs. yet to be audited after which the dues would be deposited to the P.F Fund.

[b] According to the information and explanations given to us records of the Company examined by us, no undisputed amounts payable in respect of income tax, wealth tax, service tax, sales tax, customs duty, excise duty and cess as at March 31, 2014 which have not been deposited on account of disputed except as follows:-

Name of Nature of Period to which it Statute dues pertains

Sales Tax CST 2003-2004 Act

Orissa Entry Entry Tax 2005-2008 Tax Act

Sales Tax O-VAT 2005-06 Act

Sales Tax O-VAT 2006-07 Act

Name of Forum where dispute is Amount Statute pending (Rs. in Lac)

Sales Tax Tribunal 4.44 Act

Orissa Entry Additional 30.11 Tax Act Commissioner (Appeal)

Sales Tax High Court of Orissa 21.34 Act

Sales Tax Commissioner (Appeal) 224.26 Act 10. The Company does not have any accumulated losses. The Company has neither incurred cash losses during the financial year covered by our audit nor in the immediately preceding financial year.

11. According to the records of the Company as examined by us and the information and explanations given to us, the Company has not accepted any deposits/loans from any financial institutions/banks nor it has issued any debentures.

12. Based on our examination of documents and records and according to the information and explanations given by the management, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13. In our opinion, and according to explanations received from the management, the provisions of any special statutes relating to a chit fund or a nidhi/mutual benefit fund/ societies are not applicable to the Company.

14. In our opinion and according to the information and explanations given to us, the Company is not dealing in or trading in shares, securities, debentures and other investments.

15. In our opinion and according to the information and explanations given to us, the Company has not given any guarantees for loans taken by others from banks or financial institutions during the year.

16. In our opinion, and according to the information given to us, the Company has not availed any Term loans.

17. On the basis of an overall examination of the balance sheet of the Company, in our opinion, and according to the information and explanations given to us, there are no funds raised on a short- term basis, which have been used for long-term investment:

18. The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the Act during the year.

19. In our opinion and according to the information and explanations given to us, the Company has not issued any debentures during the year nor has any debentures outstanding as at 31st March.2014.

20. The Company has not raised any money by way of any public issue during the year.

21. During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of fraud on or by the Company, noticed or reported during the year, nor have we been informed of any such case by the Management.

For L.B.JHA & Co. Chartered Accountants Firm Registration Number: 301088E

(A.K. Gandhi) Place: Kolkata Partner Date:30.05.2014 Membership No 16350


Mar 31, 2013

Report on the Financial Statements

We have audited the accompanying financial statement of The Orissa Minerals Development Company Limited , which comprise the Balance Sheet as at 31st March, 2013, the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

B. 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 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 fair presentation of the financial Statements that are free from material misstatement, whether due to fraud or error.

C. 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 Standard 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 of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified audit opinion.

D. Basis for "Qualified Opinion"

Attention is drawn to the Note 30(2.3) to the Financial Statements regarding non availability of confirmation of balances from Trade Payables/Trade Receivables/Loans & Advances and the adjustment, if any, which may arise on receipt of confirmations with their consequential impact on the year''s profit and year-end Assets & Liabilities is not ascertainable.

E. Qualified Opinion

In our opinion and to the best of information and according to the explanations given to us, the financial statement give "except for the effects of the matter described in the Basis for Qualified Opinion paragraph" 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 31, 2013;

(b) In the case of the Statement of Profit and Loss, of the profit for the year ended on that date;

(c) In the case of Cash Flow Statement, of the Cash Flows for the year ended on that date.

F. Emphasis of matter

We also draw attention to Note 30(8) to the financial statements which states about preparation of the accounts on a going concern basis inspite of the fact that mining operations of the Company have been stopped for more than two years due to non receipt of environment/forest/other clearances from the Government of Odisha as well as Central Government and the management is regularly following up with the Governments for opening and resumption of mining operations. Our opinion is not Qualified in respect of this matter.

G. Report on Other Legal and Regularly Requirements

1. As required by the Companies (Auditor''s Report) Order, 2003 ("the Order") 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 of the Order.

2. As required by Section 227(3) of the Act, we report that:

a. We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

b. In our opinion proper books of 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 sub-section (3C) of Section 211 of the Act;

e. The provision of clause (g) of sub-section (1) of Section 274 of the Act is not applicable to the Company vide notification GSR - 829 (Z) dated 21.10.2003 issued by the Department of Company Affairs, Govt, of India, New Delhi.

f. Since the Central Government has not issued any notification as to the rate at which the cess is to be paid under Section 441 of the Act nor has it issued any Rules under the said section, prescribing the manner in which such cess is to be paid, no cess is due and payable by the Company

1. [a] The Company has maintained proper records to show full particulars including quantitative details and situation of the fixed assets.

[b] The Fixed Assets have been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable having regard to the size of the Company and the nature of its fixed assets. The discrepancies noticed on such verification were not material and have been properly dealt with in the books of account.

[c] In our opinion, and according to the information and explanations given to us, the Company has not disposed off a substantial part of its fixed assets during the year.

2. [a] As explained to us, stock of stores have been physically verified during the year by the management. Stock of Finished Goods and Raw Materials has been physically verified by an outside agency on behalf of the Company. In our opinion, the frequency of verification is reasonable.

[b] In our opinion the procedures of physical verification of inventory followed by the management were reasonable and adequate in relation to the size of the Company and the nature of its business.

[c] In our opinion the Company is maintaining proper records of inventory. The discrepancies noticed on physical verification between the physical stock and book records were not material and the same have been dealt with in the books of account.

3. The Company has not granted/taken any loans secured unsecured to/from companies, firm or other parties covered in the register maintained under section 301 of the act.

4. In our opinion and according to the information and explanations given to us and based on our review, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business for the purchase of inventory and fixed assets, there was no sale of goods made during the year. Further, on the basis of our examination on the books and records of the Company, and according to the information and explanations given to us, we have neither come across nor have we been informed of any instances of major weakness in the aforesaid internal control procedure and continuing failure on the part of the management to take corrective course of action in this regard.

5. In our opinion and according to the information and explanations given to us, during the year there were no transactions that were need to be entered into the register in pursuance of Section 301 of Act.

6. The Company has not accepted any deposits under the provisions of Sections 58A and 58AA of the Act and the rules framed there under.

7. In our opinion, and based on our review, the Company has an internal audit system which need to be strengthened to make it commensurate with the size and nature of its business.

8. We have made an overall review of the books of account maintained by the Company, pursuant to the rules made by the Central Government of India, for the maintenance of cost records has been prescribed under clause (d) of sub-section (1) of Section 209 of the Act and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate and complete.

9. [a] According to the information and explanations given to us and records of the Company examined by us, the Company is generally regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees'' State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and other material statutory dues as applicable to it.

10. The Company does not have any accumulated losses. The Company has neither incurred cash losses during the financial year covered by our audit nor in the immediately preceeding financial year.

11. According to the records of the Company as examined by us and the information and explanations given to us, the Company has not accepted any deposits/loans from any financial institutions/banks nor it has issued any debentures.

12. Based on our examination of documents and records and according to the information and explanations given by the management, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13. In our opinion, and according to explanations received from the management, the provisions of any special statutes relating to a chit fund or a nidhi/mutual benefit fund/ societies are not applicable to the Company.

14. In our opinion and according to the information and explanations given to us, the Company is not dealing in or trading in shares, securities, debentures and other investments.

15. In our opinion and according to the information and explanations given to us, the Company has not given any guarantees for loans taken by others from banks or financial institutions during the year.

16. In our opinion, and according to the information given to us, the Company has not availed any term loans.

17. On the basis of an overall examination of the balance sheet of the Company, in our opinion, and according to the information and explanations given to us, there are no funds raised on a short-term basis, which have been used for long-term investment.

18. The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the Act during the year.

19. In our opinion and according to the information and explanations given to us, the Company has not issued any debentures during the year nor has any debentures outstanding as at 31s* March,2013.

20. The Company has not raised any money by way of any public issue during the year.

21. During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of fraud on or by the Company, nor noticed or reported during the year, have we been informed of such a case by the management.

For L.B.JHA & Co.

Chartered Accountants

Firm Registration Number: 301088E

(A.K. Gandhi)

Place: Kolkata Partner

Date:24th May, 2013 Membership No 16350


Mar 31, 2012

1. We have audited the attached Balance Sheet of The Orissa Minerals Development Company Limited as at 31st March 2012 and also the Statement of Profit and Loss of the Company for the year ended on that date and Cash Flow Statement for the year ended on that date annexed thereto.

2. 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.

3. We conducted our audit in accordance with the 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 misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for expressing our opinion on financial statements of the company.

4. As required by the Companies (Auditor's report) Order, 2003 as amended by the Companies (Auditor's Report) (Amendment ) Order, issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Companies Act, 1956 and on the basis of such examination of the books and record of the company as we considered appropriate and according to the information and explanations given to us, we enclosed in "Annexure-A", a statement on the matters specified in paragraphs 4 and 5 of the said order:

5. Further to our comments in Annexure A, We report that;

i) 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.

ii) 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.

iii) The Balance Sheet, Statement of Profit & Loss and Cash Flow Statement dealt with by this report are in agreement with the books of account.

iv) In our opinion, the Balance Sheet, Statement of Profit & Loss and Cash Flow Statement dealt with by this report together with Notes on Accounts and Significant Accounting Policies of the Company comply with the Accounting Standards referred in sub-section (3C) of Section 211 of the Companies Act, 1956.

v) On the basis of written declaration received from the Directors which were taken on record by the Board of Directors, none of the Directors of the Company is disqualified from being appointed as a Director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956.

vi) In our opinion and to the best of our information and according to the explanations given to us, the said accounts of the Company together with the Significant Accounting Policies read with Notes on Accounts (Part A & B) give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the Accounting Principles generally accepted in India :-

(a) in case of the Balance Sheet, of the state of affairs of the Company as at 31st March 2012.

(b) in case of the Statement of Profit & Loss of the profit for the year ended on that date; and

(c) in the case of Cash Flow Statement, of the Cash Flows for the year ended on that date.

(i) (a) Whether the Company is maintaining proper records showings full particulars, including quantitative details and situation of fixed assets.

(b) Whether these fixed assets have been physically verified by the management at reasonable intervals; whether any material discrepancies were noticed on such verification and if so, whether the same have been properly dealt with in the books of Accounts.

(c) If a substantial part of Fixed Assets have been disposed off during the year, whether it has affected the going concern.

(ii) (a) Whether physical verification of inventory has been conducted at reasonable intervals by the Management.

(b) Are the procedures of physical verification of inventory followed by the Management reasonable and adequate in relation to the size of the company and the nature of its businessRs. If not, the inadequacies in such procedures should be reported.

(c) Whether the company is maintaining proper records of Inventory and whether any material discrepancies were noticed on physical verification and if so, whether the same have been properly dealt with in the books of accounts.

(iii) (a) Has the company either granted or taken loans, secured or unsecured to/from companies, firms or other parties covered in the register maintained under section 301 of the Act Rs. If so, give the number of parties and amount involved in the transactions.

(b) Whether the rate of interest and other terms and conditions of loans given or taken by the company, secured or unsecured, are prima facie prejudicial to the interest of the company.

(c) Whether payment of the principal amount and interest are also regular.

(d) If overdue amount is more than one lakh, whether reasonable steps have been taken by the company for recovery/ payment of the principal and interest.

(iv) Is there an adequate internal control procedure commensurate with the size of the company and the nature of its business, for the purchase of inventory and fixed assets and for the sale of goods Rs. Whether there is a continuing failure to correct major weaknesses in internal control.

(v) (a) Whether transactions that need to be entered into a register in pursuance of Section 301 of the Act have been so entered.

(b) Whether each of these transactions have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time. (This information is required only in case of transactions exceeding the value of five lakh rupees in respect of any party and in any one of financial year)

(vi) In case the company has accepted deposits from the public, whether the directives issued by the Reserve Bank of India and the provisions of sections 58A and 58AA of the rules framed there under, where applicable, have been complied with, if not the nature of contravention should be stated, if an order has been passed by the Company Law Board whether the same has been complied with or not.

(vii) In the case of listed companies and / or other companies having a paid up capital and reserve exceeding Rs. 50 lakh as at the commencement of the financial year concerned, having an average annual turnover exceeding five crore rupees for the period of three consecutive financial year immediately preceding the internal audit system commensurate with its size and nature of its business.

(viii) Where maintenance of cost records has been prescribed by the Central Government under clause (d) of sub- section (1) of Section 209 of the Act, whether such accounts and records have been made and maintained.

(ix) (a) Is the company regular in depositing undisputed statutory dues including Provident Fund. Investor Education and Protection Fund, Employees' State Insurance, Income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise Duty Cess and any other statutory dues with the appropriate authorities and if not, the extent of the arrears of outstanding statutory dues as at the last day of the financial year concerned for a period more than six months from the date they became payable, shall be indicated by the auditor.

(b) In case dues of sales tax / income tax / custom tax/wealth tax/excise duty/cess have not been deposited on account of any dispute, then the amounts involved and the forum where dispute is pending may please be mentioned.

(A mere representation to the department shall not constitute the disputes.)

(x) Whether in case of a company which has been registered for a period not less than five years, its accumulated losses at the end of the financial year are not less than fifty percent of its net worth and whether it has incurred cash losses in such financial year and in the financial year immediately preceding such financial year also.

(xi) Whether the company has defaulted in repayment of dues to a financial institution or bank or debenture holders. If yes, the period and amount of default to be reported.

(xii) Whether adequate documents and records are maintained is cases where the company has granted loans and advances on the basis of security by way of pledge of shares, debenture and other securities, if not, the deficiencies to be pointed out.

(xiii) Whether the provisions of any special statute applicable to chit fund have been duly complied with. In respect of nidhi/ mutual benefit fund / societies :

(a) Whether the net owned funds to deposit liability ratio is more than 1.20 as on the date of Balance Sheet.

(b) Whether the company has complied with the prudential norms on income recognition and provisioning against sub- standard /default/loss assets.

(c) Whether the company has adequate procedures for appraisal of credit proposals / requests, assessment of credit need and repayment capacity of the borrowers.

(d) Whether the repayment schedule of various loans granted by nidhi is based on the repayment capacity of the borrower and would be conducive to recovery of the loan amount.

(xiv) If the company is dealing or trading in shares, securities, debentures and other investments, whether proper records have been maintained of the transactions and contracts and whether timely entries have been made therein; also whether the shares, securities, debentures and other securities have been held by the company in its own name except to be extent of the exemption if any, granted under Section 49 of the Act.

(xv) Whether the company has given any guarantee for loans taken by others from bank or financial institutions, the terms and conditions whereof any prejudicial to the interest of the company.

(xvi) Whether term loans were applied for the purpose for which the loans were obtained.

(xvii) Whether the funds raised on short term basis have been used for long term investment and vice-versa, if yes, the nature and amount is to be indicated.

(xviii) Whether the company has made any preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the Act and if so, whether the price at which shares have been issued is prejudicial to the interest of the company.

(xix) Whether securities have been created in respect of debenture issued.

(xx) Whether the management has disclosed on the end use of money raised by public issues and the same has been verified.

(xxi) Whether any fraud on or by the company has been noticed or reported during the year. If yes, the nature and the amount involved is to be indicated.

For N. C. Banerjee & Co.,

Chartered Accountants

FRN 302081E

(Arnob Paul)

Partner

Mem. No. 06490

Place : KOLKATA

Dated : 18 May 2012

 
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