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Auditor Report of Resurgere Mines & Minerals India Ltd.

Mar 31, 2015

We have audited the accompanying Standalone Financial Statements of RESURGERE MINES AND MINERALS INDIA LIMITED ("the Company"), which comprise the Balance Sheet as at March 31, 2015, and the Statement of Profit and Loss, 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 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 thereunder.

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.

Qualified 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 except to Note No. 9(**), 10(****), 11 (*), 14 (Note), 15(Note and **) and 17 (*, **, ***, ****), 19 (*) in notes on account to the Financial Statements, with regard to Trade Payable, Creditors for Capital Goods, Capital work in progress, Inventories, Trade Receivables, Advance to suppliers and Subsidiaries, Inter - Corporate Deposits, Mine Deposits and Interest on Inter Corporate Deposits, where the Company does not have any confirmation and reconciliation with the parties. Major portion of such transactions does not have any movement since a long time and have remained outstanding for over one year. We are unable to comment upon the reliability of such amount and the consequential adjustments required to be made, if any, in this regard.

(a) In the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2015;

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

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

Report on Other Legal and Regulatory Requirements:

1. As required by the Companies (Auditor's Report) Order, 2015 ("the Order") issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, 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 Standalone 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 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 Standalone Financial Statements except interest thereon. The unaccounted litigations have been duly disclosed at note no. 26 of Notes on Accounts.

(ii) The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, and as required on long-term contracts including derivative contracts.

(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 Auditors Report

The Annexure referred to in our Independent Auditors' Report to the members of Resurgere Mines & Minerals India Limited on the standalone financial statements for the year ended March 31, 2015, we report that:

1. In respect of its Fixed Assets:

a. The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.

b. As explained to us, all the fixed assets have been physically verified by the management in a phased periodical manner, which in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. As informed, no material discrepancies were noticed on such verification.

2. In respect of Inventories:

a. The inventories have been physically verified by the management during the year. In our Opinion, the frequency of verification is reasonable.

b. In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business.

c. The Company has maintained proper records of inventory. As explained to us, there were no material discrepancies noticed on physical verification of inventories as compared to the book records.

3. In respect of the Loans, secured or unsecured, granted, by the company to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act, 2013 ('the Act').

a. There is no overdue amount of loan granted to said companies.

4. In our opinion and according to the information and explanations given to us, there exists an adequate internal control system commensurate with the size of the company and the nature of its business with regard to purchase of inventory, fixed assets and with regard to the sale of goods and services. During the course of our audit, no major weakness has been noticed in the internal control system in respect of these areas. During the course of our audit, we have not observed any continuing failure to correct major weakness in internal control system of the company.

5. According to the information and explanations given to us, the company has not accepted any deposits from the public.

6. The Central Government has prescribed the maintenance of cost records under sub-section (1) of section 148 of the Companies Act 2013 for the activities carried on by the company but the company does not fall under the prescribed norms for maintenance of cost records.

7. In respect of statutory dues:

a) According to the records of the Company, the undisputed statuary dues including Provident Fund, Sales Tax, Wealth Tax, Services Tax, Customs Duty, Excise Duty, Cess and Income tax have generally not been regularly deposited with the appropriate authorities.

The details of undisputed amount of statutory dues not paid for more than six months as on the close of financial year are us under:

Nature of tax Amount of demand Assessment Year/ Period for (Rs in Lacs) Financial Year which due

Income Tax 378.50 AY 08-09 2007-08

1022.16 AY 09-10 2008-09

1001.59 AY 10-11 2009-10

47.67 AY 11-12 2010-11

TDS 9.37 AY 13-14 2012-13

Service Tax 17.92 FY 11-12 2011-12

6.82 FY 14-15 2014-15

Sales Tax 0.72 FY 11-12 2011-12

5.56 FY 12-13 2012-13

Provident Fund 1.89 FY 13-14 2013-14

b) The details of all disputed statutory dues is as under:

Nature of tax Amount of demand Assessment (Rs in Lacs) Year

Income Tax 148.14 AY 08-09

1923.23 AY 09-10

26.50 AY 10-11

20.68 AY 11-12

Nature of tax Forum where Current dispute is pending status

Income Tax CIT(A) & ITAT In process

CIT(A) & ITAT In process

CIT(A) In process

CIT(A) In process

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 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. However, it has incurred losses in the current financial year amounting to is Rs. 6438.03 lacs and in immediately preceding financial year amounting to Rs. 5884.33 lacs

9. The Company has defaulted in repayment of its dues to banks and financial institutions. Details of default are as follows:

Sr.No. Name of Institution Default in Repayment of

Principal Amount Interest Amount (Rs in Lacs) (Rs in Lacs)

1. Term Loan from 826.24 591.66 Union Bank of India



2 Working Capital Loan from 10776.58 7104.21 State Bank of India, Union Bank of India, Bank of India, Indusland Bank and Barclays Bank

Sr.No. Name of Institution For the Date of month Payment

1. Term Loan from May,2011 Not Yet Paid Union Bank of India to March, 2014

2 Working Capital Loan from Jan, 2011 Not Yet Paid State Bank of India, to Union Bank of India, March, 2014 Bank of India, Indusland Bank and Barclays Bank

10. In our opinion and according to the information and explanations given to us and based on the documents and records produced to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

11. The Company has not taken any term loans during the year.

12. On the Basis of our examination and according to the information and explanation given to us, no material fraud, on or by the company, has been noticed or reported during the year.

For Ranjana Vandana & Co. Chartered Accountants Firm Registration No.: 008961C

CA Ranjana Rani Partner Membership No. 077985

Place: Mumbai Date: 29th May, 2015




Mar 31, 2014

We have audited the accompanying financial statements of RESURGERE MINES AND MINERALS INDIA LIMITED ("the Company"), which comprise the Balance Sheet as at March 31, 2014, and the Statement of Profit and Loss for the year ended, and a summary of 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 referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ("the Act"). This responsibility includes the design, implementation and maintenance Forming an Opinion and Reporting on Financial Statements 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 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.

Qualified 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 except to Note No. 9(**), 10(****), 11 (*) 14 (Note), 15(Note and *) and 17 (*, ***, ****) in notes on account to the Financial Statements. With regard to Trade Payable , Creditor for Capital Goods, Capital work in progress, Inventories, Trade Receivables, Inter - Corporate Deposits and Mine Deposits the Company does not have any confirmation and reconciliation with the parties. Considering the past trend that major portion of such transactions does not have any movement since a long time and have remained outstanding for over one year. We are unable to comment upon the reliability of such amount and the consequential adjustments required to be made, if any, in this regard.

(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 Profit and Loss Account, of the Loss for the year ended on that date.

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

Report on Other Legal and Regulatory Requirements:

1. As Required by the Companies (Auditor''s Report) Order, 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 & 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 and 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 and 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 qualification mentioned in paragraph "Qualified Opinion".

e) On the basis of written representations received from the directors as on March 31, 2014, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2014, 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

The Annexure referred to in Paragraph 1 of Our Report of even date to the members of M/S Resurgere Mines & Minerals India Limited on account of the company for the year ended 31st March 2014.

On the basis of such checks as we considered appropriate and according to the information and explanation given to us during the course of our audit, 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 at reasonable intervals; no material discrepancies were noticed on such verification.

c) The Company has not disposed off any substantial part of its fixed assets during the year.

2) a) As explained to us, inventories have been physically verified during the year by management at reasonable intervals.

b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business.

c) In our opinion and on the basis of our examination of our records, the Company is generally maintaining proper records of its inventories. No materials discrepancy was noticed on physical verification of stocks by the management as compared to book records.

3) The Company has neither granted nor taken any loans, Secured or Unsecured, to companies, firms, or other parties covered in the register maintained under Section 301 of the Companies Act 1956. Therefore, the provisions of clause 4(iii) [(b), (c), and (d)/ (f) and (g)] of the said order is not applicable.

4) In our opinion and according to the information and explanation given to us, there is adequate internal control system commensurate with the size of the company and the nature of its business for the purchase of fixed assets and inventory and for the sale of 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) a) Based on the audit procedures performed by us, we are of the opinion that particulars of contracts or arrangements referred to in Section 301 of the Act have been entered in the register required to be maintained under that section.

b) The transactions made in pursuance of such contracts or arrangements have been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

6) The Company has not accepted any deposits from the public.

7) In our opinion and as per the information and explanation given to us, the company has an internal audit system commensurate with the size and nature of its business.

8) We are informed by the management that the Central Government has not prescribed for maintenance of Cost Records under section 209(1) (d) of the Companies Act, 1956 for the products of the company.

9) a) According to the records of the Company, the undisputed statuary dues including Provident Fund, Sales Tax, Wealth Tax, Services Tax, Customs Duty, Excise Duty, Cess and Income tax have generally not been regularly deposited with the appropriate authorities. According to the information and explanations given to us, there are no undisputed amount payable in respect of such statutory dues, i.e. Income Tax for Assessment Year 08-09 Rs.131.73 Lacs, for Assessment year 09-10 Rs.1,578.00 Lacs, for Assessment year 10-11 Rs.1105.72 Lacs, for the Assessment Year 11-12 Rs.41.66 Lacs (as per ITR or Assessment order), Tds Payable Rs.11.10 Lacs, Service Tax Rs.26.55 Lacs and Sales Tax Rs. 6.28 Lacs which have remained outstanding as at 31st March, 2014 for the period more than six months from the date they became payable.

b) According to the information and explanations given to us, the Company has no dues of Income Tax, Sales Tax, Wealth Tax, Services Tax, Custom Duty, Excise Duty and Cess which have not been deposited on account of disputes with the related authorities.

10) The Company has no accumulated losses at the end of the financial year, whereas, company has incurred cash losses of Rs.2485.28 Lacs in the current financial year.

11) In our opinion and according to the information and explanation given to us the Company has defaulted in repayment of its dues to banks and financial institutions are as follows:

Sr. No. Name of Institution Default in Repayment of Principal Interest Amount Amount

1 Union Bank of India Rs.826.24 Rs.410.48 Lacs Lacs

2 Working Capital Loan from Rs.10,776.58 Rs.4,932.71 State Bank of India, Lacs Lacs Union Bank of India, Bank of India, Induslnd Bank and Barclays Bank

Name of Institution For the Date of month Payment

Union Bank of India From May, 2011 Not Yet to March, 2014 Paid

Working Capital Loan from From Jan, 2011 Not Yet State Bank of India, Union to March, 2014 Paid Bank of India, Bank of India, Induslnd Bank and Barclays Bank

12) The Company has not granted any loans or advances on the basis of security by way of pledge of Shares, Debentures or Other Securities.

13) The provisions of any Special Statute application to Chit Fund, Nidhi or Mutual Benefit Fund/ Societies are not application to the company.

14) According to the information and explanation given to us the company is not dealing or trading in shares, securities, debentures or other investments.

15) The Company has not given any guarantees for loans taken by others from banks and financial institutions.

16) The Company has not taken any term loans during the year hence clause (xvi) of the said order is not applicable.

17) On an overall examination of the balance sheet of the company, we report that no funds raised on Short - term basis have been used for Long - term investment.

18) The Company has not made any preferential allotment of Equity Shares during the year 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) On the Basis of our examination and according to the information and explanation given to us, no fraud, on or by the company, has been noticed or reported during the year.

For G L Mangal & Associates Chartered Accountants Firm Registration No.: 131017W

CA Girdhari Lal Mangal Place: Mumbai Proprietor Date: 4th June, 2014 Membership No. 076305


Mar 31, 2013

Report on the Financial Statements

We have audited the accompanying financial statements of RESURGERE MINES AND MINERALS INDIA LIMITED ("the Company"), which comprise the Balance Sheet as at March 31, 2013, and the Statement of Profit and Loss for the year ended, and a summary of 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 referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ("the Act"). This responsibility includes the design, implementation and maintenance Forming an Opinion and Reporting on Financial Statements 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 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 31, 2013;

(b) In the case of the Profit and Loss Account, of the Loss for the year ended on that date.

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

Report on Other Legal and Regulatory Requirements:

1. As Required by the Companies (Auditor''s Report) Order, 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 & 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 and 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 and 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.

e) On the basis of written representations received from the directors as on March 31, 2013, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 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

The Annexure referred to in Paragraph 1 of Our Report of even date to the members of M/S Resurgere Mines & Minerals India Limited on account of the company for the year ended 31st March 2013.

On the basis of such checks as we considered appropriate and according to the information and explanation given to us during the course of our audit, 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 at reasonable intervals; no material discrepancies were noticed on such verification.

c) The Company has not disposed off any substantial part of its fixed assets during the year.

2) a) As explained to us, inventories have been physically verified during the year by management at reasonable intervals.

b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business.

c) In our opinion and on the basis of our examination of our records, the Company is generally maintaining proper records of its inventories. No materials discrepancy was noticed on physical verification of stocks by the management as compared to book records.

3) The Company has neither granted nor taken any loans, Secured or Unsecured, to companies, firms, or other parties covered in the register maintained under Section 301 of the Companies Act 1956. Therefore, the provisions of clause 4(iii) [(b), (c), and (d)/ (f) and (g)] of the said order is not applicable.

4) In our opinion and according to the information and explanation given to us, there is adequate internal control system commensurate with the size of the company and the nature of its business for the purchase of fixed assets and inventory and for the sale of 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) a) Based on the audit procedures performed by us, we are of the opinion that particulars of contracts or arrangements referred to in Section 301 of the Act have been entered in the register required to be maintained under that section.

b) The transactions made in pursuance of such contracts or arrangements have been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

6) The Company has not accepted any deposits from the public.

7) In our opinion and as per the information and explanation given to us, the company has an internal audit system commensurate with the size and nature of its business.

8) We are informed by the management that the Central Government has not prescribed for maintenance of Cost Records under section 209(1) (d) of the Companies Act, 1956 for the products of the company.

9) a) According to the records of the Company, the undisputed statuary dues including Provident Fund, Sales Tax, Wealth Tax, Services Tax, Customs Duty, Excise Duty, and Cess except Income tax have generally not been regularly deposited with the appropriate authorities. According to the information and explanations given to us, there are no undisputed amount payable in respect of such statutory dues, i.e. Income Tax for Assessment Year 08-09 Rs.131.73 Lacs, for Assessment year 09-10 Rs.1,578.00 Lacs, for Assessment year 10-11 Rs.1105.72 Lacs, for the Assessment Year 11-12 Rs.41.66 Lacs (as per ITR or Assessment order), Tds on Salary Rs.3.63 Lacs, Service Tax Rs.22.77 Lacs and Provident Fund Rs.21.48 Lacs which have remained outstanding as at 31st March, 2013 for the period more than six months from the date they became payable.

b) According to the information and explanations given to us, the Company has no dues of Income Tax, Sales Tax, Wealth Tax, Services Tax, Custom Duty, Excise Duty and Cess which have not been deposited on account of disputes with the related authorities.

10) The Company has no accumulated losses at the end of the financial year, whereas, company has incurred cash losses of Rs.2095.14 Lacs in the current financial year.

11) In our opinion and according to the information and explanation given to us the Company has defaulted in repayment of its dues to banks and financial institutions are as follows:



Sr. No. Name of Institution Default in Repayment of

Principal Interest Amount Amount

1 Union Bank of India Rs.826.24 Rs.252.44 Lacs Lacs

2 Working Capital Loan from Rs.10,776.58 Rs.3,003.60 State Bank of India, Union Bank of India, Lacs Lacs Bank of India, Indusland Bank and Barclays Bank

Name of Institution For the Date of month Payment

Union Bank OF india From May,2011 Not Yet to March, 2013 Paid

Working Capital Loan from from Jan, 2011 Not Yet State Bank of India, Union Bank of India, to March, 2013 Paid

Bank of India, Indusland Bank and Barclays Bank

12) The Company has not granted any loans or advances on the basis of security by way of pledge of Shares, Debentures or Other Securities.

13) The provisions of any Special Statute application to Chit Fund, Nidhi or Mutual Benefit Fund/ Societies are not application to the company.

14) According to the information and explanation given to us the company is not dealing or trading in shares, securities, debentures or other investments.

15) The Company has not given any guarantees for loans taken by others from banks and financial institutions.

16) The Company has not taken any term loans during the year hence clause (xvi) of the said order is not applicable.

17) On an overall examination of the balance sheet of the company, we report that no funds raised on Short – term basis have been used for Long – term investment.

18) The Company has not made any preferential allotment of Equity Shares during the year 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) On the Basis of our examination and according to the information and explanation given to us, no fraud, on or by the company, has been noticed or reported during the year.



For G L Mangal & Associates

Chartered Accountants

Firm Registration No.: 131017W



CA Girdhari Lal Mangal

Proprietor

Membership No. 076305



Place: Mumbai

Date: 30th May, 2013


Mar 31, 2012

1. We have audited the attached Balance Sheet of M/s. Resurgere Mines & Minerals India Limited as at 31st March, 2012, statement of Profit and Loss Account and also the Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company's Management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. 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 disclosure in the 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.

3. As required by the Companies (Auditor's 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 paragraphs 4 and 5 of the Order.

4. Further to our comments in the Annexure referred to in paragraph 3 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 accounts 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 dealt with by this report comply with the accounting standards referred to in sub-section (3C) of Section 211 of the Act.

e) On the basis of written representations received from the directors, as on March 31, 2012 and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2012 from being appointed as a director in terms of clause (g) of subsection (1) of Section 274 of the Act.

f) In our opinion and to the best of our information and according to the explanations given to us, the said financial statements together with the notes thereon and attached thereto give, in the prescribed manner, the information required by the Act, 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 March 31, 2012;

(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.

Annexure to the Auditors Report

Annexure referred to in Paragraph 3 of Auditors Report to the members of M/s. Resurgere Mines & Minerals India Limited for the year ended 31st March 2012.

As required by the Companies (Auditors Report) Order, 2003 and amendments thereto and according to the information and explanation given to us during the course of the audit and on the basis of such checks of the books and records as were considered appropriate we report that:

(i) a) The Company has maintained 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 have been noticed on such verification. In our opinion, the frequency of verification is reasonable.

c) The Company has not disposed off any substantial part of its fixed assets during the year.

(ii) a) As explained to us, management has conducted physical verification of inventories during the year at reasonable intervals. b) The procedures of physical verification of the inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

c) The Company has maintained proper records of inventories and discrepancies noticed on physical verification of inventories as compared to book records were not material.

(iii) a) The Company has neither granted nor taken any loans, Secured or Unsecured, to companies, firms, or other parties covered in the register maintained under Section 301 of the Companies Act 1956. Therefore, the provisions of clause 4(iii) ((b), (c), and (d)/(f) and (g)) of the said order is not applicable.

(iv) In our opinion and according to the information and explanation given to us, there is adequate internal control system commensurate with the size of the company and the nature of its business for the purchase of fixed assets and inventory and for the sale of 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.

(v) a) Based on the audit procedures performed by us, we are of the opinion that particulars of contracts or arrangements referred to in Section 301 of the Act have been entered in the register required to be maintained under that section.

b) The transactions made in pursuance of such contracts or arrangements have been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

(vi) The Company has not accepted any deposits from the public.

(vii) In our opinion and as per the information and explanation given to us, the company has an internal audit system commensurate with the size and nature of its business.

(viii) We are informed by the management that the Central Government has not prescribed for maintenance of Cost Records under section 209(1) (d) of the Companies Act, 1956 for the products of the company.

(ix) a) According to the records of the Company, the undisputed statuary dues including Provident Fund, Sales Tax, Wealth Tax, Services Tax, Customs Duty, Excise Duty, and Cess except Income tax have generally not been regularly deposited with the appropriate authorities. According to the information and explanations given to us, there are no undisputed amount payable in respect of such statutory dues, except Income Tax for Assessment Year 08-09 Rs. 131.73 Lacs, for Assessment year 09-10 Rs. 1,308.70 Lacs, for Assessment year 10-11 Rs. 852.06 Lacs, for the Assessment Year 11-12 Rs. 41.66 Lacs (as per ITR or Assessment order), Tds on Salary Rs. 6.78 Lacs, Service Tax Rs. 5.31 Lacs and Provident Fund Rs. 6.71 Lacs which have remained outstanding as at 31st March, 2012 for the period more than six months from the date they became payable.

b) According to the information and explanations given to us, the Company has no dues of Income Tax, Sales Tax, Wealth Tax, Services Tax, Custom Duty, Excise Duty and Cess which have not been deposited on account of disputes with the related authorities.

(x) The Company has no accumulated losses at the end of the financial year, whereas, company has incurred cash losses of Rs. 1511.50 Lacs in the current financial year.

(xi) In our opinion and according to the information and explanation given to us the Company has defaulted in repayment of its dues to banks and financial institutions are as follows:

Sl. Name of Institution Default in Repayment of No. Term Loan from Principal Interest Amount Amount

1. Union Bank of India Rs. 619.48 Rs. 112.86 Lacs Lacs

2. Working Capital Loan Rs. 10,239.37 Rs. 1,809.45 from State Bank of Lacs Lacs India, Union Bank of India, Bank of India, Indusland Bank and Barclays Bank

Sl. Name of Institution For the month Date of Payment No. Term Loan from

1. Union Bank of India From May,2011 Not Yet Paid to March, 2012

2. Working Capital Loan From Jan, 2011 Not Yet Paid from State Bank of to March, 2012

(xii) The Company has not granted any loans or advances on the basis of security by way of pledge of Shares, Debentures or Other Securities.

(xiii) The provisions of any Special Statute application to Chit Fund, Nidhi or Mutual Benefit Fund/Societies are not application to the company.

(xiv) According to the information and explanation given to us the company is not dealing or trading in shares, securities, debentures or other investments.

(xv) The Company has not given any guarantees for loans taken by others from banks and financial institutions.

(xvi) The Company has not taken any term loans during the year hence clause (xvi) of the said order is not applicable.

(xvii) On an overall examination of the balance sheet of the company, we report that no funds raised on Short - term basis have been used for Long - term investment.

(xviii) The Company has not made any preferential allotment of Equity Shares during the year to parties covered in the register maintained under Section 301 of the Companies Act, 1956.

(xix) The Company has not issued any debentures during the year.

(xx) On the Basis of our examination and according to the information and explanation given to us, no fraud, on or by the company, has been noticed or reported during the year.



For G. L. Mangal & Associates Chartered Accountants Firm Registration No: 131017W

CA. Girdhari Lal Mangal Proprietor Membership No. 076305

Place: Mumbai Date: 30th May, 2012

 
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