Midwest Gold Ltd.
|BSE: 526570||Sector: Others|
|NSE: N.A.||ISIN Code: INE519N01014|
|BSE 10:30 | 17 Nov||Midwest Gold Ltd|
|NSE 05:30 | 01 Jan||Midwest Gold Ltd|
|BSE: 526570||Sector: Others|
|NSE: N.A.||ISIN Code: INE519N01014|
|BSE 10:30 | 17 Nov||Midwest Gold Ltd|
|NSE 05:30 | 01 Jan||Midwest Gold Ltd|
To the Members of
MIDWEST GOLD LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of MIDWEST GOLDLIMITED ("the Company") which comprise the Balance Sheet as at March 31 2017the Statement of Profit and Loss and the Cash Flow Statement for the year then ended anda summary of significant accounting policies and other explanatory infor-mation.
Managements Responsibility for the Standalone Financial Statements
The Companys Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparationand presentation of these standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Ac-counts) Rules 2014. This responsibility also includes maintenance ofadequate account-ing records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatements whether due to fraud or error.
Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatements.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditors judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Companyspreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by Companys Directors as well as evaluating theoverall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31 March 2017 and its loss and its cash flow for the year ended on that date. Reporton other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the Annexure "A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.
2. As required by section 143(3) of the Act we report that:
a) We have sought and obtained all the information and explanations which to the bestof 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 theCompany so far as it appears from our examination of those books;
c) the balance sheet statement of profit and loss and cash flow statement dealt withby this Report are in agreement with the books of account;
d) in our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;
e) on the basis of the written representations received from the directors as on 31March 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2016 from being appointed as a director in terms of section164(2) of the Act; and
f) with respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure B" and g) with respect to the other to be includedin the Auditors Report in accordance with Rule 11 of the Companies ( Audit andAuditors) Rules2014 in our opinion and to the best of our information and according tothe explanations given to us:
i. the company has disclosed the impact of pending litigations on its financialposition in its financial statements;
ii. The company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long term contracts includingderivative contracts.
iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.
iv. The Company has provided requisite disclosures in the financial statements as toholdings as well as dealings in Specified Bank notes during the period from 8thNovember2016 to 30th December2016 Based on audit procedures and relying on themanagement representation we report that the disclosures are in accordance with books ofaccount maintained by the Company and has produced to us by the Management -Refer Note-15
Annexure "A" to the Independent Auditors Report
The Annexure referred to in our independent Auditors report to the members of thecompany on the standalone financial statements for the year ended 31 March 2017 we reportthat:
1. a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
b) A substantial portion of the fixed assets has been physically verified by themanagement during the year and in our opinion frequency of verifi-cation is reasonablehaving regard to the size of the Company and the nature of its assets.
No material discrepancies were noticed on such physical verification.
c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.
2. a) The inventories have been physically verified during the year by the management.In our opinion the frequency of verification is reasonable.
(b) In our opinion and according to the information and explanation given to us theprocedures of physical verification of inventory followed by the man-agement arereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.
(c) In our opinion and according to the information and explanations given to us and onthe basis of our examination of the records of inventory the Company is maintainingproper records of inventory. The discrepancies noticed on physi-cal verification ofinventory as compared to the books of account were not ma-terial and have been properlydealt with in the books of account.
3. (a) The Company has taken an interest free unsecured loan from intercorporate related party. The terms of arrangements do not stipulate any repayment scheduleand loans are repayable on demand.
(b) According to the information and explanations given to us the company has notgranted any loans secured or unsecured to and from companies firms and other partiescovered in the register maintained under section 189 of the Companies Act.
4. In Our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act with respectto the loans and investments made.
5. The Company has not accepted any deposits from the public during the year underconsideration.
6. The Central Government has not prescribed the maintenance of cost records undersection 148(1) of the Act for any of the activities rendered by the Company.
7. According to the records of the Company and information and explanations given tous the Company has been regular in depositing undisputed statutory dues includingProvident Fund Employees State Insurance Income tax Sales Tax Wealth TaxService
Tax Customs Duty Excise Duty Value Added Tax Cess and other statutory dues with theappropriate authorities during the year. According to the information and explanationsgiven to us no undisputed amounts payable in respect of above were in arrears as atMarch 31 2017 for a period of more than six months from the date on which they becomepayable.
8. The company has not defaulted in payment of any loan installment or interest inrespect of term loans from bank. The company has not issued any debentures and taken theloan from financial institution.
9. The Company did not raise any money by way of initial public offer or further publicoffer (including debt instruments) and term loan during the year. Accordingly paragraph 3(ix) of the Order is not applicable.
10. To the best of our knowledge and belief and according to the information andexplanations given to us no fraud on or by the Company has been noticed or reportedduring the course of our audit.
11. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.
12. In Our opinion and according to the information and explanations given to us theCompany is not a Nidhi company. Accordingly paragraph 3(xii) of the order is notapplicable.
13. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.
14. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.
15. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered in to non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.
16. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.
Annexure "B" to the Independent Auditors Report
Report on the Internal Financial Controls under (i) Of Sub-section 143 of the CompaniesAct 2013 ("the Act") We have audited the internal financial controls overfinancial reporting of Midwest Gold Limited ("the Company") as of 31 March 2017in conjuednction with our audit of the standalone financial statements of the Company forthe year ended on that date.
Managements Responsibility for Internal Financial controls
The Companys management is responsible for establishing and maintaining inter-nalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal con-trolstated in the Guidance Note on Audit of Internal Financial Controls over Finan-cialReporting issued by the Institute of Chartered Accountant of India. (ICAI).
These responsibilities include the design implementation and maintenance of ade-quateinternal financial controls that were operating effectively for ensuring the or-derly andefficient conduct of its business including adherence to companys polic-es thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely prepara-tion ofreliable financial information as required under the Companies Act 2013.
Our responsibility is to express an opinion on the Companys internal financialcon-trols over financial reporting based on our audit. We conducted our audit inaccor-dance with the Guidance Note on Audit of Internal Financial Controls over Finan-cialReporting (the "Guidance Note") and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143 (10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applica-ble to an auditof internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over finan-cial reporting was established andmaintained and if such controls operated effec-tively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the ade-quacyof the internal financial controls system over financial reporting and their op-eratingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial re-portingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditors judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the companys internal financial controlssystem over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companys internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A Companys internal financial control overfinancial reporting includes those policies and procedures that
1. pertain to the maintenance of records that in reasonable details accurately andfairly reflect the transactions and dispositions of the assets of the company
2. provide reasonable assurance that truncations are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company and
3. Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the companys assets that could havea material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting.
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also Projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the polices or procedures may deteriorate.
In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2017based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting Issued by the Institute of CharteredAccountants of India.