Mar 31, 2014
We have audited attached Balance Sheet of M/S. KACHCHH MINERALS LTD. as
at 31st March, 2014 and also profit & loss account for the year ended
on that date annexed thereto and also Cash Flow Statement for the year
ended on that date, 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 &fair view of the financial position,
financial performance and cash flows of the company in accordance with
the Accounting standards referred to in subsection (3C) of section 211
of the Companies Act, 1956 ("the Act") This responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation and presentation of the financial statements that give
a true & 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 have conducted our audit in
accordance with Auditing Standards issued by ICAI. 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 of material misstatement. An audit involves
performing procedures to obtain evidence about the amounts and
disclosure in the financial statements. An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of the accounting estimates made by the management, as
well as evaluating the overall presentation of the financial statement.
We believe that audit evidence we have obtained is sufficient and
appropriate to provide a basis four our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the effects of the matter
described in the Basis for qualified Opinion paragraph, the financial
statements give the information required by the Act in the manner so
required give a true &fair view in conformity with accounting
principles generally accepted in India
(i) In the case of the Balance Sheet, of the state of affairs of the
Company as on 31st March, 20C14;
(ii) In the case of the Profit and Loss Account, of the loss of the
Company for the year ended on that date and;
(iii) In the case of Cash Flow Statement of the cash flows for the year
ended as on that date.
Emphasis of Matter
We draw attention to
(a) NOTE NO. 19(v) regarding Company having no whole time Company
Secretary.
(b) NOTE NO. 19(vii) regarding non-ascertainment as well as
non-provision of retirement benefits such as gratuity and leave
encashment as required by accounting standard (AS 15) issued by the
Institute of Chartered Accountants of India.
(c) NOTE NO. 19(ix) regarding non-ascertainment of impaired assets as
required by accounting standard (AS 28) issued by the Institute of
Chartered Accountants of India.
(d) NOTE NO. 19(xii) The concept of going concern is affected due to
temporary suspension of mining activities of company with effect from
07/01/2014.
Report on Other Legal and Regulatory requirements
1. As required the companies (Auditors Report) Order 2003 ("the Order")
issued by the Central Government in terms of Section 227 (4A) of the Act,
we give in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the Order
2. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge & 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 the
Books of the Company.
c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
referred to in this report are in agreement with the Books of Accounts.
d) Except for the effects of the matter described in the Basis for
Qualified Opinion paragraph, the Balance Sheet, Statement of Profit and
Loss, and Cash Flow Statement comply with the Accounting Standard
referred to in sub- section (3C) of section 211 of Companies Act, 1956.
e) on the basis of written representation received from the Directors
as on 31.03.2014 and taken on record by the Board of directors of the
Company, none of the Directors are disqualified as on 31.03.2014 from
being appointed as director in terms of clause (g) of sub-section (1)
of Section 274 of the Companies Act, 1956.
ANNEXURE TO THE AUDIT REPORT
(REFERRED TO IN PARAGRAPHS 1 OF OUR REPORT OF EVEN DATE ON ACCOUNTS FOR
THE YEAR ENDED ON 31.3.2014)
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) We are informed that all the major assets have been physically
verified by the management during the year No material discrepancies
were noticed on such verification of Fixed Assets during the year
(c) In our opinion, no substantial part of the fixed assets has been
disposed off during the year
(ii) (a) According to information and explanations given to us, the
Company has conducted physical verification of inventories at
reasonable intervals.
(b) According to information and explanations given to us, the
procedure of physical verification of inventories carried on by the
management appears to be reasonable and adequate in relation to its
size and nature of its business.
(c) According to information and explanations given to us, the company
is maintaining proper records of inventory; no material discrepancies
were noticed between physical verification of stock as compared to book
records.
(iii) (a) The Company has not granted any loans secured or unsecured to
Companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
(b) According to the information and explanation given to us, the
company has not granted any loans, secured or unsecured to companies
firms or other parties. Therefore, the provisions of clause iii (b) of
paragraph (4) of the order are not applicable.
(c) According to the information and explanation given to us, the
company has not granted any loans. Therefore provisions of clause iii
(c) of the paragraph (4) of the order are not applicable.
(d) According to the information and explanation given to us the
company has not granted any loan. Therefore provisions of clause iii
(d) of the paragraph (4) of the order are not applicable.
(e) The Company has taken unsecured loan from companies, firms or other
parties covered in the register maintained under section 301 of the
Act, where the directors are interested.
(f) In our opinion, the rate of interest and other terms and conditions
on which loan has been taken from the party listed in the Register
maintained under section 301 of the Act are not prima facie prejudicial
to the interest of the Company.
(g) In our opinion, payment of principal amount and interest are
regular There is no overdue amount of loans/interest on loan taken.
(iv) In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the Company and nature of its business
with regard to purchase of inventories stores, spare parts, components,
fixed assets including plant & machinery, equipment and other assets
and with regards to sale of goods. There is no continuing failure to
correct major weakness in internal control of the Company.
(v) (a) According to the information and explanations given to us,
transactions that need to be entered into the register maintained
under Section 301 of the Act has been entered.
(b) In our opinion and according to explanation given to us, the
transactions made in pursuance of contracts or arrangements entered in
the register maintained under Section 301 of the Companies Act, 1956
and exceeding the value of Rs. 5,00,000/- in respect of each party
during the year are either have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time or the prices at which transactions for similar goods or services
have been made with other parties or as compared to the prices quoted
by others, or such comparisons could not be made since there are no
other suppliers of similar items.
(vi) In our opinion and according to information and explanation given
to us, the Company has not accepted any deposit from public u/s. 58 A &
58 AA of the Companies Act, 1956 except paid under contractual
arrangement.
(vii) The Company has an internal audit system commensurate with the
size of the Company and nature of its business.
(viii) According to information and explanations given to us by the
management, the Central Govt, has not prescribed 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 information and explanation given to us, no
undisputed amount shown as payable in respect of items specified in
clause ix (a) Income Tax, Wealth Tax, Gujarat Sales Tax, Custom Duty,
Royalty, Excise Duty, Cess as were outstanding as on 31 st March,
2014 for a period more than 6 months from the date they become
payable.
(b) According to the information and explanation given to us, in case
of Wealth Tax, Sales Tax, Excise/Custom Duty, Cess, there is no
dispute.
However there is a dispute over payment of royalty amount of Rs.2, 80,
90,656/- (interest & penalty) included to the collector of Kucth-Bhuj.
The company has disputed demand before the competent Authority. In case
of Income tax, the company has paid Rs 1, 50,000 against demand of Rs.
3,36,000 for A.Y 2007-2008 under dispute. The Company has preferred
appeal against the decision of ITO.
(x) The accumulated losses at the end of financial year 2013-2014 are
more than 50% of Company''s net worth. The Company has not incurred cash
losses during the period covered by the report and in the financial
year immediately preceding such financial year The Company is not a
sick industrial company within the meaning of clause (o) of sub section
(1) of section (3) of the Sick Industrial Companies (special provision)
Act, 1985.
(xi) According to explanation 8i information given to us by the
management, the company has not defaulted in repayment of dues to
financial institution and banks.
(xii) According to information & explanation given to us, the Company
has not granted any loans & advances on the basis of security by way of
pledge of shares, debentures and other securities.
(xiii) The Company is not a chit fund or a nidhi/mutual benefit fund/
society. Therefore the provision of clause (xiii)paragraph (4) of the
order are not applicable.
(xiv) The Company is not dealing in or trading in shares, Securities,
debentures and other investment. Therefore the provisions of clause
(xiv) of the Paragraph 4 of the order are not applicable.
(xv) According to information & explanation given to us, the Company
has not given any guarantee for loans taken by other from bank or
financial institutions.
(xvi) The Company has not obtained any new ter, loans from the banks
and financial insitutions during the year.
(xvii) According to the information & explanation given to us, during
the year the Company has npt made any preferential allotment of shares
to partied and companies and companies covered in the register
maintained under Section 301 of the Companies Act, 1956
(xix) According to the information & explanation given to us, the
Company had not issued any secured debentures during the year.
(XX) The Company has not raised any money by public issue during the
year
(xxi) 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 M. G. SIMARIA & CO.
Chartered Accountants
Manilal G. Simaria
Proprietor
Membership No. 31547
Place : Mumbai Firm Registration No. 110260W
Date : 30th May, 2014
Mar 31, 2013
Report of the Financial Statements
We have audited attached Balance Sheet of M/S. KACHCHH MINERALS LTD. as
at 31st March, 2013 and also profit & loss account for the year ended
on that date annexed thereto and also Cash Flow Statement for the year
ended on that date, 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 & fair view of the financial position,
financial performance and cash flows of the company in accordance with
the Accounting standards referred to in subsection (3C) of section 211
of the Companies Act, 1956 ("the Act") This responsibility includes the
design , implementation and maintenance of internal control relevant to
the preparation and presentation of the financial statements that give
a true & 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 have conducted our audit in
accordance with Auditing Standards issued by ICAI. 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 of material misstatement. An audit involves
performing procedures to obtain evidence about the amounts and
disclosure in the financial statements. An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of the accounting estimates made by the management, as
well as evaluating the overall presentation of the financial statement.
We believe that audit evidence we have obtained is sufficient and
appropriate to provide a basis four our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the effects of the matter
described in the Basis for qualified Opinion paragraph, the financial
statements give the information required by the Act in the manner so
required give a true & fair view in conformity with accounting
principles generally accepted in India
(i) In the case of the Balance Sheet, of the state of affairs of the
Company as on 31st March, 2013;
(ii) In the case of the Profit and Loss Account, of the profit of the
Company for the year ended on that date and;
(iii) In the case of Cash Flow Statement of the cash flows for the year
ended as on that date.
Emphasis of Matter :-
We draw attention to :- (a) NOTE NO. 19(v) regarding Company having no
whole time Company Secretary.
(b) NOTE NO. 19(vii) regarding non-ascertainment as well as
non-provision of retirement benefits such as gratuity and leave
encashment as required by accounting standard (AS 15) issued by the
Institute of Chartered Accountants of India.
(c) NOTE NO. 19(ix) regarding non-ascertainment of impaired assets as
required by accounting standard (AS 28) issued by the Institute of
Chartered Accountants of India.
Report on Other Legal and Regulatory requirements
1. As required the companies (Auditors Report) Order 2003 ("the
Order") issued by the Central Government in terms of Section 227 (4A)
of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge & 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 the
Books of the Company.
c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
referred to in this report are in agreement with the Books of Accounts.
d) Except for the effects of the matter described in the Basis for
Qualified Opinion paragraph, the Balance Sheet, Statement of Profit and
Loss, and Cash Flow Statement comply with the Accounting Standard
referred to in sub- section (3C) of section 211 of Companies Act, 1956.
e) on the basis of written representation received from the Directors
as on 31.03.2013 and taken on record by the Board of directors of the
Company, none of the Directors are disqualified as on 31.03.2013 from
being appointed as director in terms of clause (g) of sub-section (1)
of Section 274 of the Companies Act, 1956.
ANNEXURE TO THE AUDIT REPORT
(REFERRED TO IN PARAGRAPHS 1 OF OUR REPORT OF EVEN DATE ON ACCOUNTS FOR
THE YEAR ENDED ON 31.3.2013)
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets
(b) We are informed that all the major assets have been physically
verified by the management during the year. No material discrepancies
were noticed on such verification of Fixed Assets during the year.
(c) In our opinion, no substantial part of the fixed assets has been
disposed off during the year.
(ii) (a) According to information and explanations given to us, the
Company has conducted physical verification of inventories at
reasonable intervals.
(b) According to information and explanations given to us, the
procedure of physical verification of inventories carried on by the
management appears to be reasonable and adequate in relation to its
size and nature of its business.
(c) According to information and explanations given to us, the company
is maintaining proper records of inventory; no material discrepancies
were noticed between physical verification of stock as compared to book
records.
(iii) (a) The Company has not granted any loans secured or unsecured to
Companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
(b) According to the information and explanation given to us, the
company has not granted any loans, secured or unsecured to companies
firms or other parties. Therefore, the provisions of clause iii (b) of
paragraph (4) of the order are not applicable.
(c) According to the information and explanation given to us, the
company has not granted any loans. Therefore provisions of clause iii
(c) of the paragraph (4) of the order are not applicable.
(d) According to the information and explanation given to us the
company has not granted any loan. Therefore provisions of clause iii
(d) of the paragraph (4) of the order are not applicable.
(e) The Company has not taken unsecured loan from companies, firms or
other parties covered in the register maintained under section 301 of
the Act, where the directors are interested.
(f) In our opinion, the rate of interest and other terms and conditions
on which loan has been taken from the party listed in the Register
maintained under section 301 of the Act are not prima facie prejudicial
to the interest of the Company.
(g) In our opinion, payment of principal amount and interest are
regular. There is no overdue amount of loans/interest on loan taken.
(iv) In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the Company and nature of its business
with regard to purchase of inventories stores, spare parts, components,
fixed assets including plant & machinery, equipment and other assets
and with regards to sale of goods. The company has rendered some
professional services which are not of recurring nature. There is no
continuing failure to correct major weakness in internal control of the
Company.
(v) (a) According to the information and explanations given to us,
transactions that need to be entered into the register maintained under
Section 301 of the Act has been entered.
(b) In our opinion and according to explanation given to us, the
transactions made in pursuance of contracts or arrangements entered in
the register maintained under Section 301 of the Companies Act, 1956
and exceeding the value of Rs. 5,00,000/- in respect of each party
during the year are either have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time or the prices at which transactions for similar goods or services
have been made with other parties or as compared to the prices quoted
by others, or such comparisons could not be made since there are no
other suppliers of similar items.
(vi) In our opinion and according to information and explanation given
to us, the Company has not accepted any deposit from public u/s. 58 A &
58 AA of the Companies Act, 1956 except paid under contractual
arrangement.
(vii) The Company has an internal audit system commensurate with the
size of the Company and nature of its business.
(viii) According to information and explanations given to us by the
management, the Central Govt. has not prescribed 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 information and explanation given to us, no
undisputed amount shown as payable in respect of items specified in
clause ix (a) Income Tax, Wealth Tax, Gujarat Sales Tax, Custom Duty,
Royalty, Excise Duty, Cess as were outstanding as on 31st March, 2013
for a period more than 6 months from the date they become payable. (b)
According to the information and explanation given to us, in case of
Wealth Tax, Sales Tax, Excise/Custom Duty, Cess, there is no dispute.
However there is a dispute over payment of royalty amount of Rs.2, 80,
90,656/- (including interest & penalty) included to the collector of
Kucth-Bhuj. The company has disputed demand before the competent
Authority. In case of Income tax, the company has paid Rs 1, 50,000
against demand of Rs. 3,36,000 for A.Y 2007- 2008 under dispute. The
Company has preferred appeal against the decision of ITO.
(x) The accumulated losses at the end of financial year 2012-2013 are
more than 50% of Company''s net worth. The Company has not incurred cash
losses during the period covered by the report and in the financial
year immediately preceding such financial year. The Company is not a
sick industrial company within the meaning of clause (o) of sub section
(1) of section (3) of the Sick Industrial Companies (special provision)
Act, 1985.
(xi) According to explanation & information given to us by the
management, the company has not defaulted in repayment of dues to
financial institution and banks.
(xii) According to information & explanation given to us, the Company
has not granted any loans & advances on the basis of security by way of
pledge of shares, debentures and other securities.
(xiii) The Company is not a chit fund or a nidhi / mutual benefit fund
/ society. Therefore the provision of clause (xiii) paragraph (4) of
the order are not applicable
(xiv) The Company is not dealing in or trading in shares, Securities,
debentures and other investment. Therefore the provisions of clause
(xiv) of the Paragraph 4 of the order are not applicable.
(xv) According to information & explanation given to us, the Company
has not given any guarantee for loans taken by others from bank or
financial institutions.
(xvi) The Company has not obtained any new term loans from the banks
and financial institutions during the year.
(xvii) According to the cash flow statement and other records examined
by us and the information & explanations given to us, on an overall
basis, funds raised on short term basis have not prima facie, been used
during the year for long term investments .
(xviii) According to the information & explanation given to us, during
the year, the Company has not made any preferential allotment of shares
to parties and companies covered in the register maintained under
Section 301 of the Companies Act, 1956.
(xix) According to the information & explanation given to us, the
Company had not issued any secured debentures during the year
(xx) The Company has not raised any money by public issue during the
year.
(xxi) 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 M. G. SIMARIA & CO.
Chartered Accountants
Manilal G. Simaria
Proprietor
Membership No. 31547
Firm Registration No. 110260W
Place : Mumbai
Date : 31st July, 2013
Mar 31, 2012
1. We have audited attached Balance Sheet of M/S. KACHCHH MINERALS
LTD. as at 31st March, 2012 and also profit & loss account for the year
ended on that date annexed thereto and also Cash Flow Statement for the
year ended on that date. 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 have conducted our audit in accordance with Auditing Standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about, whether the
financial statements are free of material misstatement. An audit
includes, examining on a test basis, evidence supporting the amounts
and disclosures in 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.
3. As required the companies (Auditors Report) Order 2003 as amended
by the Companies (Auditor's Report) (Amendment) Order; 2004 issued by
the Central Government in terms of Section 227 (4A) of the Companies
act, 1956 and on the basis of such checks on the books and records of
the company as we considered appropriate and according to the
information and explanations given to us, we annexed hereto a statement
on the matters specified in paragraphs 4 and 5 of the said order
4. Attention is invited to the following in NOTE NO. 19, of notes
forming part of financial statement.
4.1 NOTE NO. 19 (v) regarding Company having no whole time Company
Secretary.
4.2 NOTE NO. 19 (vii) regarding non ascertainment as well as non
provision of retirement benefits such as gratuity and leave encashment
as required by accounting standard (AS15) issued by the Institute of
Chartered Accountants of India.
4.3 NOTE NO. 19 (ix) regarding non ascertainment of impaired assets as
required by accounting standard (AS28) issued by the Institute of
Chartered Accountants of India.
5. Further to our comments in the annexure referred to above, we
report that
a) We have obtained all the information and explanations, which to the
best of our knowledge & 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 the
Books of the Company.
c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
referred to in this report are in agreement with the Books of Accounts.
d) In our opinion and subject to our observations, comments and Notes
on the Accounts, the Profit & Loss Account,Balance Sheet and Cash Flow
Statement so prepared comply with the Accounting Standard referred to
in sub- section (3C) of section 211 of Companies Act, 1956, subject to
following qualifications mentioned in below point (f).
e) In our opinion and based on information and explanations given to us
and on the basis of written representation received from the Directors
as on 31.03.2012 and taken on record by the Board of directors of the
Company, none of the Directors are disqualified as on 31.03.2012 from
being appointed as director in terms of clause (g) of sub-section (1)
of Section 274 of the Companies Act, 1956.
6. Subject to Para 4 above, in our opinion, and to the best of our
information and according to explanations given to us, the said
accounts, read with significant accounting policies and other notes
thereon, give the information required by the Companies Act, 1956, in
the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India:
(i) In the case of the Balance Sheet, of the state of affairs of the
Company as on 31st March, 2012;
(ii) In the case of the Profit and Loss Account, of the profit of the
Company for the year ended on that date and;
(iii) In the case of Cash Flow Statement of the cash flows for the year
ended as on that date.
ANNEXURE TO THE AUDIT REPORT
(REFERRED TO IN PARAGRAPHS 1 OF OUR REPORT OF EVEN DATE ON ACCOUNTS FOR
THE YEAR ENDED ON 31.3,2012)
(i) (a) The Company has maintained proper records showing full
particulars including quantitative
details and situation of fixed assets.
(b) We are informed that all the major assets have been physically
verified by the management during the year No material discrepancies
were noticed on such verification of Fixed Assets during the year
(c) In our opinion, no substantial part of the fixed assets has been
disposed off during the year
(ii) (a) According to information and explanations given to us, the
Company has conducted physical verification of inventories at
reasonable intervals
(b) According to information and explanations given to us, the
procedure of physical verification of inventories carried on by the
management appears to be reasonable and adequate in relation to its
size and nature of its business.
(c) According to information and explanations given to us, the company
is maintaining proper records of inventory; no material discrepancies
were noticed between physical verification of stock as compared to book
records.
(iii) (a) The Company has not granted any loans secured or unsecured to
Companies, firms or other parties covered in the register maintained
ufujel Section 301 of i.iie Companies Act, 1956.
(b) According to the information and explanation given to us, the
company has not granted any loans, secured or unsecured to companies
firms or other parties. Therefore, the provisions of clause iii (b) of
paragraph (4) of the order are not applicable.
(c) According to the information and explanation given to us, the
company has not granted any loans. Therefore provisions of clause iii
(c) of the paragraph (4) of the order are not applicable.
(d) According to the information and explanation given to us the
company has not granted any loan. Therefore, provisions of clause iii
(d) of the paragraph (4) of the order are not applicable.
(e) The Company has taken unsecured loan from companies, firms or other
parties covered in the register maintained under section 301 of the
Act, where the directors are interested or have no outstanding dues.
(f) In our opinion, the rate of interest and other terms and conditions
on which loan has been taken from the party listed in the Register
maintained under section 301 of the Act are not prima facie prejudicial
to the interest of the Company.
(g) In our opinion, payment of principal amount and interest are
regular. There is no overdue amount of loans/interest on loan taken.
(iv) In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the Company and nature of its business
with regard to purchase of inventories stores, spare parts, components,
fixed assets including plant & machinery equipment and other assets and
with regards to sale of goods. There is no continuing failure to
correct major weakness in internal control of the Company.
(v) (a) According to the information and explanations given to us,
transactions that need to be entered into the register maintained under
Section 301 of the Act has been entered. (b) In our opinion and
according to explanation given to us, the transactions made in
pursuance of contracts or arrangements entered in the register
maintained under Section 301 of the Companies Act, 1956 and exceeding
the value of Rs. 5,00,000/- in respect of each party during the year
are either have been made at prices which are reasonable having regard
to prevailing market prices at the relevant time or the prices at which
transactions for similar goods or services have been made with other
parties or as compared to the prices quoted by others, or such
comparisons could not be made since there are no other suppliers of
similar items.
(vi) In our opinion and according to information and explanation given
to us, the Company has not accepted any deposit from public u/s. 58 A &
58 AA of the Companies Act, 1956 except paid under contractual
arrangement.
(vii) The Company has an internal audit system commensurate with the
size of the Company and nature of its business.
(viii) According to information and explanations given to us by the
management, the Central Govt. has not prescribed 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 information and explanation given to us, no
undisputed amount shown as payable in respect of items spccif;cd in
clause ix (a) Income Tax, Wealth Tax, Gujarat Sales Tax, Custom Duty,
Royalty, Excise Duty, Cess as were outstanding as on 31 st March, 2012
for a period more than 6 months from the date they become payable. (b)
According to the information and explanation given to us, in case of
Wealth Tax, Sales Tax, Excise/Custom Duty, Cess, there is no dispute.
However there is a dispute over payment of royalty amount of Rs.
2,80,90,656/- (interest & penalty) included to the collector of
Kucth-Bhuj In case of Income tax, the company has paid Rs 45,000
against demand of Rs. 3,36,000 for A.Y 2007-2008 under dispute. The
Company has preferred appeal against the decision of ITO.
(x) The accumulated losses at the end of financial year 2011-2012 are
more than 50% of Company's net worth. The Company has not incurred cash
losses during the period covered by the report and in the financial
year immediately preceding such financial year The Company is not a
sick industrial company within the meaning of clause (o) of sub section
(1) of section (3) of the Sick Industrial Companies (special provision)
Act, 1985.
(xi) According to explanation & information given to us by the
management, the company has not defaulted in repayment of dues to
financial institution and banks.
(xii) According to information & explanation given to us, the Company
has not granted any loans & advances on the basis of security by way of
pledge of shares, debentures and other securities.
(xiii) The Company is not a chit fund or a nidhi / mutual benefit fund
/ society. Therefore the provision of clause (xiii) paragraph (4) of
the order are not applicable.
(xiv) The Company is not dealing in or trading in shares, Securities,
debentures and other investment. Therefore the provisions of clause
(xiv) of the Paragraph 4 of the order are not applicable.
(xv) According to information & explanation given to us, the Company
has not given any guarantee for loans taken by others from bank or
financial institutions.
(xvi) The Company has not obtained any new term loans from the banks
and financial institutions during the year
(xvii) According to the cash flow statement and other records examined
by us and the information & explanations given to us, on an overall
basis, funds raised on short term basis have not prima facie, been used
during the year for long term investments.
(xviii) According to the information & explanation given to us, during
the year, the Company has not made any preferential allotment of shares
to parties and companies covered in the register maintained under
Section 301 of the Companies Act, 1956.
(xix) According to the information & explanation given to us, the
Company had not issued any secured debentures during the year
(xx) The Company has not raised any money by public issue during the
year
(xxi) 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 M. G. SIMARIA & CO.
Chartered Accountants
Manilal G. Simaria
Proprietor
Membership No. 31547
Firm Registration No. 110260W
Place : Mumbai
Date : 31st July, 2012
Mar 31, 2011
We have audited attached Balance Sheet of M/S. KACHCHH MINERALS LTD. as
at 31st March, 2011 and also profit & loss account for the year ended on
that date annexed thereto and also Cash Flow Statement for the year
ended on that date. These financial statements are the responsibility
of the Company's management. Our responsibility is to express an
opinion on these financial statements based on our audit.
We have conducted our audit in accordance with Auditing Standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about, whether the
financial statements are free of material misstatement. An audit
includes, examining on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
As required the companies (Auditors Report) Order 2003 as amended by
the Companies (Auditor's Report) (Amendment) Order, 2004 issued by the
Central Government in terms of Section 227 (4A) of the Companies act,
1956 and on the basis of such checks on the books and records of the
company as we considered appropriate and according to the information
and explanations given to us, we annexed hereto a statement on the
matters specified in paragraphs 4 and 5 of the said order
Further to our comments in the annexure referred to above, we report
that
a) We have obtained all the information and explanations, which to the
best of our knowledge & 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 the
Books of the Company.
c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
referred to in this report are in agreement with the Books of Accounts.
d) In our opinion and subject to our observations, comments and Notes
on the Accounts, the Profit & Loss Account,Balance Sheet and Cash Flow
Statement so prepared comply with the Accounting Standard referred to
in sub- section (3C) of section 211 of Companies Act, 1956, subject to
following qualifications mentioned in below point (f).
e) In our opinion and based on information and explanations given to us
and on the basis of written representation received from the Directors
as on 31.03.2011 and taken on record by the Board of directors of the
Company, none of the Directors are disqualified as on 31.03.2011 from
being appointed as director in terms of clause (g) of sub-section (1)
of Section 274 of the Companies Act, 1956.
f) Attention is invited to the following in SCHEDULE "M" notes on
Accounts.
NOTE NO. 7
Regarding Company having no whole time Company Secretary
NOTE NO. 10
Regarding non-ascertainment as well as non-provision of retirement
benefits such as gratuity and leave encashment as required by
accounting standard (AS 15) issued by the Institute of Chartered
Accountants of India.
NOTE NO. 12
Regarding non-ascertainment of impairement of assets by the Company as
required by accounting standard AS 28 "impairment of assets" issued by
the Institute of Chartered Accountants of India.
Subject to forgoing, in our opinion, and to the best of our information
and according to explanations given to us, the said accounts, read with
significant accounting policies and other notes thereon, give the
information required by the Companies Act, 1956, in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
(i) In the case of the Balance Sheet, of the state of affairs of the
Company as on 31st March, 2011;
(ii) In the case of the Profit and Loss Account, of the profit of the
Company for the year ended on that date and;
(iii) In the case of Cash Flow Statement of the cash flows for the year
ended as on that date.
ANNEXURE TO THE AUDIT REPORT
(REFERRED TO IN PARAGRAPHS 1 OF OUR REPORT OF EVEN DATE ON ACCOUNTS FOR
THE YEAR ENDED ON 31.3.2011)
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets
(b) We are informed that all the major assets have been physically
verified by the management during the year No material discrepancies
were noticed on such verification of Fixed Assets during the year
(c) In our opinion, no substantial part of the fixed assets has been
disposed off during the year
(ii) (a) According to information and explanations given to us, the
Company has conducted physical verification of inventories at
reasonable intervals.
(b) According to information and explanations given to us, the
procedure of physical verification of inventories carried on by the
management appears to be reasonable and adequate in relation to its
size and nature of its business.
(c) According to information and explanations given to us, the company
is maintaining proper records of inventory; no material discrepancies
were noticed between physical verification of stock as compared to book
records.
(iii) (a) The Company has not granted any loans secured or unsecured to
Companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
(b) According to the information and explanation given to us, the
company has not granted any loans, secured or unsecured to companies
firms or other parties. Therefore, the provisions of clause iii (b) of
paragraph (4) of the order are not applicable.
(c) According to the information and explanation given to us, the
company has not granted any loans. Therefore provisions of clause iii
(c) of the paragraph (4) of the order are not applicable.
(d) According to the information and explanation given to us the
company has not granted any loan. Therefore provisions of clause iii
(d) of the paragraph (4) of the order are not applicable.
(e) The Company has taken unsecured loan from companies, firms or other
parties covered in the register maintained under section 301 of the
Act, where the directors are interested No. of Parties : 2
Amount involved : Rs. 11,15,000/-
(f) In our opinion, the rate of interest and other terms and conditions
on which loan has been taken from the party listed in the Register
maintained under section 301 of the Act are not prima facie prejudicial
to the interest of the Company.
(g) In our opinion, payment of principal amount and interest are
regular There is no overdue amount of loans/interest on loan taken.
(iv) In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the Company and nature of its business
with regard to purchase of inventories stores, spare parts, components,
fixed assets including plant & machinery, equipment and other assets
and with regards to sale of goods. There is no continuing failure to
correct major weakness in internal control of the Company.
(v) (a) According to the information and explanations given to us,
transactions that need to be entered into the register maintained under
Section 301 of th 2 Act has been entered. (b) In our opinion and
according to explanation given to us, there are no transactions
exceeding Rs. 5 lacs during this financial year in respect of any party
except remuneration paid to executive directors as disclosed.
(vi) In our opinion and according to information and explanation given
to us, the Company has not accepted any deposit from public u/s. 58 A
& 58 AA of the Companies Act, 1956 except paid under contractual
arrangement. ,
(vii) The Company has an internal audit system commensurate with the
size of the Company and nature of its business.
(viii) According to information and explanations given to us by the
management, the Central Govt. has not prescribed 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 information and explanation given to us, no
undisputed amount shown as payable in respect of items specified in
clause ix (a) Income Tax, Wealth Tax, Gujarat Sales Tax, Custom Duty,
Royalty, Excise Duty, Cess as were outstanding as on 31st March, 2011
for a period more than 6 months from the date they become payable.
(b) According to the information and explanation given to us, in case of
Wealth Tax, Sales Tax, Excise/Custom Duty, Cess, there is no dispute.
(x) The accumulated losses at the end of financial year 2010-2011 are
more than 50% of Company's net worth. The Company has not incurred cash
losses during the period covered by the report and in the financial
year immediately preceding such financial year The Company is not a
sick industrial company within the meaning of clause (0) of sub section
(1) of section (3) of the Sick Industrial Companies (special provision)
Act, 1985.
(xi) According to explanation & information given to us by the
management, the company has not defaulted in repayment of dues to
financial institution and banks.
(xii) According to information & explanation given to us, the Company
has not granted any loans & advances on the basis of security by way of
pledge of shares, debentures and other securities.
(xiii) The Company is not a chit fund or a nidhi / mutual benefit fund
/ society. Therefore the provision of clause (xiii) paragraph (4) of
the order are not applicable
(xiv) The Company is not dealing in or trading in shares, Securities,
debentures and other investment. Therefore the provisions of clause
(xiv) of the Paragraph 4 of the order are not applicable.
(xv) According to information & explanation given to us, the Company
has not given any guarantee for loans taken by others from bank or
financial institutions.
(xvi) The Company has not obtained any new term loans from the banks
and financial institutions during the year
(xvii) According to the cash flow statement and other records examined
by us and the information & explanations given to us, on an overall
basis, funds raised on short term basis have not prima facie, been used
during the year for long term investments .
(xviii) According to the information & explanation given to us, during
the year, the Company has not made any preferential allotment of shares
to parties and companies covered in the register maintained under
Section 301 of the Companies Act, 1956.
(xix) According to the information & explanation given to us, the
Company had not issued any secured debentures during the year
(xx) The Company has not raised any money by public issue during the
year
(xxi) 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 M. G. SIMARIA & CO.
Chartered Accountants
Manilal G. Simaria
Proprietor
Membership No. 31547
Firm Registration No. 110260W
Place : Mumbai
Date : 3rd September 2011
Mar 31, 2010
We have audited attached Balance Sheet of M/S. KACHCHH MINERALS LTD. as
at 31st March, 2010 and also profit & loss account for the year ended
on that date annexed thereto and also Cash Flow Statement for the year
ended on that date. These financial statements are the responsibility
of the Companys management. Our responsibility is to express an
opinion on these financial statements based on our audit.
We have conducted our audit in accordance with Auditing Standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about, whether the
financial statements are free of material misstatement. An audit
includes, examining on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
As required the companies (Auditors Report) Order 2003 as amended by
the Companies (Auditors Report) (Amendment) Order 2004 issued by the
Central Government in terms of Section 227 (4A) of the Companies act,
1956 and on the basis of such checks on the books and records of the
company as we considered appropriate and according to the information
and explanations given to us, we annexed hereto a statement on the
matters specified in paragraphs 4 and 5 of the said order.
Further to our comments in the annexure referred to above, we report
that
a) We have obtained all the information and explanations, which to the
best of our knowledge & 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 the
Books of the Company.
c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
referred to in this report are in agreement with the Books of Accounts.
d) In our opinion and subject to our observations, comments and Notes
on the Accounts, the Profit & Loss Account ,Balance Sheet and Cash Flow
Statement so prepared comply with the
Accounting Standard referred to in sub- section (3C) of section 211 of
Companies Act, 1956, subject to following qualifications mentioned in
below point (f).
e) In our opinion and based on information and explanations given to us
and on the basis of written representation received from the Directors
as on 31.03.2010 and taken on record by the Board of directors of the
Company, none of the Directors are disqualified as on 31.03.2010 from
being appointed as director in terms of clause (g) of sub-section (1)
of Section 274 of the Companies Act, 1956.
f) Attention is invited to the following in SCHEDULE "M" notes on
Accounts. NOTE NO. 7
Regarding Company having no whole time Company Secretary,
NOTE NO. 10
Regarding non-ascertainment as wel I as non-provision of retirement
benefits such as gr atuity and leave encashment as required by
accounting standard (AS 15) issued by the I nstitute of Chartered
Accountants of India.
NOTE NO. 12
Regarding non-ascertainment of impair ed assets as requir ed by
accounting standard (A S26) issued by the Institute of Chartered
Accountants of India.
Subject to forgoing, in our opinion, and to the best of our information
and according to explanations given to us, the said accounts, read with
significant accounting policies and other notes thereon, give the
information required by the Companies Act, 1956, in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
(i) In the case of the Balance Sheet, of the state of affairs of the
Company as on 31st March, 2010;
( i i ) In the case of the Profit and Loss Account, of the profit of
the Company for the year ended on that date and;
(iii) In the case of Cash Flow Statement of the cash flows for the year
ended as on that date.
ANNEXURE TO THE AUDIT REPORT
(REFERRED TO IN PARAGRAPHS 1 OF OUR REPORT OF EVEN DATE ON ACCOUNTS FOR
THE YEAR ENDED ON 31.3.2010)
(I) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets
(b) We are informed that all the major assets have been physically
verified by the management during the year. No material discrepancies
were noted on such verification of Fixed Assets during the year.
(c) In our opinion, no substantial part of the fixed assets has been
disposed off during the year.
(ii) (a) According to information and explanations given to us, the
Company has conducted physical verification of inventories at
reasonable intervals.
(b) According to information and explanations given to us, the
procedure of physical verification of inventories carried on by the
management appears to be reasonable and adequate in relation to its
size and nature of its business.
(c) According to information and explanations given to us, the company
is maintaining proper records of inventory; no material discrepancies
were noticed between physical verification of stock as compared to book
records.
OH) (a) The Company has not granted any loans secured or unsecured to
Companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956. any loans. Therefore
provisions of xpl use iii (c) of the paragraph (4) of the order are not
(d) Accoing to the information and explanation given to us the company
has not granted any loan. Therefore provisions of clause i (d) of the
paragraph (4) of the order are not applicable.
(e) The Company has taken unsecured loan from companies firms or other
parties covered in the register maintained under section 301 of the
Act, where the director are interested No. of Parties: 2
Amount involved : Rs. 3,51,000/-
(f) In our opinion, the rate of interest and other terms and conditions
on which loan has been taken from the party listed in the Register
maintained under section 301 of the Act are not prima facie prejudicial
to the interest of the Company.
(iv) In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the Company and nature of its business
with regard to purchase of inventories stores, spare parts, components,
fixed assets including plant & machinery, equipment and other assets
and with regards to sale of goo.. There is no continuing failure to
correct major weakness in internal control of the Company
(v) (a) According to the information and explanations given to us,
transactions that need to be entered into the register maintained under
Section 301 of the Act
(b) has been entered
(vi) In our opinion and according to information and explanation given
to us, the Company has not accepted any deposit from public u/s. 58 A &
58 AA of the Companies Act, 1956 except paid
(vii) The Company has an internal audit system commensurate with the
size of the Company and
(viii) According to information and explanations given to us by the
management, the Central anies
has not prescribed maintenance of cost records under section 209 (1)
(d) of the
(ix) (a) According to the information and explanation given to us, no
undisputed amount shown as payable in respect of items specified in
clause ix (a) Income Tax, Wealth Tax, arch, Sales Tax, for period more
6 month from the date they become 31st March 2010
(b) According to the information and explanation given to us, in case
of Wealth Tax, Sales Tax, Excise/Custom Duty, Cess, there is no
dispute. However an appeal has been preferred under dispute (Income Tax
Act) to the Commissioner of Income Tax Appeals (Mumbai.
againest penalty proceedings initiated for F.Y. 2006-2007 for levy of
penalty of Rs. 3,36,000.
(x) The accumulated losses at the end of financial year 2009-2010 are
more than 50% of Companys net worth. The Company has not incurred cash
losses during the period covered by the report
(xi) According to explanation & information given to us by the
management, the company has not defaulted in repayment of dues to
financial institution and banks.
(xii) According to information & explanation given to us, the Company
has not granted any loans & advances on the basis of security by way of
pledge of shares debentures and other securities.
(xiv) The Company is not dealing in or trading in shares, Securities,
debentures and other investment. Therefore the provisions of clause
(xiv) of the Paragraph 4 of the order are not applicable.
(xv) According to information & explanation given to us, the Company
has not given any guarantee for loans taken by others from bank or
financial institutions
(xvl) The Company has not obtained any new term loans from the banks
and financial institutions during the year.
(xvii) According to the cash flow statement and other records examined
by us and the information & explanations given to us, on an overall
basis, funds raised on short term basis have not prima facie, been used
during the year for long term investments .
(xviii) According to the information & explanation given to us, during
the year, the Company has not made any preferential allotment of shares
to parties and companies covered in the register maintained under
Section 301 of the Companies Act, 1956.
(xix) According to the information & explanation given to us, the
Company had not issued any secured debentures during the year
(xx) The Company has not raised any money by public issue during the
year.
(xxi) 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 M. G. SIMARIA & CO.
Chartered Accountants
Manila G. Simaria
Proprietor
Membership No. 31547
Firm Registration No. 110260W
Place : Mumbai
Date : 30th, August, 2010
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