TO THE MEMBERS OF COCHIN MINERALS AND RUTILE LIMITED
Report on the Audit of the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Cochin Minerals AndRutile Limited ("the Company") which comprise the Balance Sheet as at March 312022 the Statement of Profit and Loss (including Other Comprehensive Income) theStatement of Changes in Equity and the Statement of Cash Flows for the year ended on thatdate and notes to the standalone financial statement including a summary of thesignificant accounting policies and other explanatory information (hereinafter referred toas "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 Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("IndAS") and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at March 312022 the profit and totalcomprehensive income changes in equity and its cash flows for the year ended on thatdate.
Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing (SAs) specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India (I CAI) together with the ethicalrequirements that are relevant to our audit of the standalone financial statements underthe provisions of the Act and the Rules made there under and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence obtained by us is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.
Key Audit Matters
Key audit matters (KAM') are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.
|Sr. No. ||Key Audit Matter ||Auditor's Response |
|1 ||Revenue recognition ||Auditor's Response |
| ||We have identified revenue recognition as a key audit matter since revenue is significant to standalone financial statements and is required to be recognized as per the re- quirements of applicable accounting framework ||In view of the significance of matter our auditing procedures included the following. Assessment of design and implementation of controls in addition to testing the effectiveness of key controls in respect of revenue recognition. |
| || ||Testing on sample basis specific transactions before and after the financial year end date including examination of credit notes issued after the year end to determine whether the revenue has been recognized at the appropriate financial period. |
| || ||Inventory reconciliation checking of receivable balances substantive test for cut offs and analytical review procedures. |
Information Other than the Standalone Financial Statements and Auditor's Report Thereon
The Company's Management &Board of Directors are responsible for the preparation ofthe other information. The other information comprises the information included in theManagement Discussion and Analysis Board's Report including Annexure to Board's ReportBusiness Responsibility Report Corporate Governance Report and Shareholder's Informationbut does not include the standalone financial statements and our auditor's report thereon.
Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.
If based on the work we have performed we conclude that there is no materialmisstatement of this other information& we have nothing to report in this regard.
Responsibility of Management and those charged with governance for the StandaloneFinancial Statements
The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these standalone financial statementsthat give a true and fair view of the financial position financial performance totalcomprehensive income changes in equity and cash flows of the Company in accordance withthe IndAS and other accounting principles generally accepted in India. This responsibilityalso includes maintenance of adequate accounting records in accordance with the provisionsof the Act for safeguarding the assets of the Company and for prevent-
ing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
In preparing the standalone financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.
The Board of Directors is responsible for overseeing the Company's financial reportingprocess.
Auditor's Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.
Obtain an understanding of internal financial controls relevant to the audit inorderto design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible forexpressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty exists
we are required to draw attention in our auditor's report to the related disclosures inthe standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause theCompany to cease tocontinue as a going concern.
Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.
Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the standalone financial statements may be influenced. Weconsider quantitative materiality and qualitative factors in (i) planning the scope of ouraudit work and in evaluating the results of our work; and (ii) to evaluate the effect ofany identified misstatements in the standalone financial statements.
We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.
From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act based on our audit we report that:
a) We have sought and obtained all the information and explanations which to the bestof 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 theCompany so far as it appears from our examination of those books.
c) The Balance Sheet the Statement of Profit and Loss including Other ComprehensiveIncome Statement of Changes in Equity and the Statement of Cash Flow dealt with by thisReport are in agreement with the relevant books of account.
d) In our opinion the aforesaid standalone financial statements comply with the IndASspecified under Section 133 of the Act.
e) On the basis of the written representations received from the directors as on March312022 taken on record by the Board of Directors none of the directors is disqualifiedas on March 312022 from being appointed as a director in terms of Section 164
(2) of the Act.
f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure A". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internalfinancial controls overfinancialreporting.
g) Wth respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of sec. 197(16) of the act as amended: in our opinionand to the best of our information and according to the explanations given to us: theremuneration paid by the company to its directors during the year is in accordance withthe provisions of section 197 of the Act.
h) Wth respect to the other matters to be included in the Auditor's Report inaccordance withRule 11 of the Companies (Audit and Auditors) Rules 2014 as amended inour opinion and to the best of our information and according to the explanations given tous:
i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone 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 Educationand Protection Fund by the Company.
2. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give in"Annexure B" a statement on the matters specified in paragraphs 3 and 4 of theOrder.
|For A K MURALEE &CO |
|Chartered Accountants |
|(Firm Registration No.011817S) |
|Muralee krishnan.A.K |
|(Membership No.217127) |
|U Dl N-22217127AJKEXJ5798 |
ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT
(Referred to in paragraph 1 (f) under Report on Other Legal and RegulatoryRequirements' section of our report to the Members of Cochin Minerals and RutileLimited ofeven date)
Report on the Internal Financial Controls Over Financial Reporting under Clause
(i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of COCHINMINERALS AND RUTILE LIMITED ("the Company") as of March 31 2022 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat date.
Management's Responsibility for Internal Financial Controls
The Board of Directors of the Company is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial controls over financialreporting issued by the Institute of Chartered Accountants of India. The responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to respective company's policies the safeguarding of itsassets the prevention and detection of frauds and errors the accuracy and completenessof the accounting records and the timely preparation of reliable financial informationas required under the companies Act2013
Our responsibility is to express an opinion on the company's internal financialcontrols over financial reporting of the Company based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") issued by the Institute of CharteredAccountants of India and the Standards on auditing prescribed under Section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controls.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing 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 auditor's judgment including the assessment of the risks ofmaterial misstatement of the company's financial statements whether due to fraud orerror.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the company's internal financial controls systemover financial reporting of the Company.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regardingthe reliabilityof financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and
(3) provide reasonable assurance regarding prevention of timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial 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 policies or procedures may deteriorate.
In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 312022 based on the internal financialcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.
| ||For A K MURALEE & CO |
| ||Chartered Accountants |
| ||(Firm Registration No.011817S) |
| ||Muralee krishnan.A.K |
|Aiwa ye ||Proprietor |
|23/05/2022 ||(MembershipNo.217127) |
| ||U DIN-22217127AJ KEXJ5798 |
ANNEXURE B' TO THE INDEPENDENT AUDITOR'S REPORT
(Referred to in paragraph 2 under Report on Other Legal and RegulatoryRequirements' section of our report to the Members of Cochin Minerals and Rutile Limitedof even date)
i. In respect of the Company's fixed assets:
(a) (A) The Company has maintained proper records showing full particulars includingquantitative details and situation of Property Plant and Equipment;
(B) As per our information as explained by the management the company does not haveany intangible assets.
(b) The Company has a program of verification to cover all the items of fixed assets ina phased manner which in our opinion is reasonable having regard to the size of theCompany and the nature of its assets. Pursuant to the program certain fixed assets werephysically verified by the management during the year. According to the information andexplanations given to us no material discrepancies were noticed on such verification.
(c) The title deeds of all the immovable properties (other than properties where thecompany is the lessee and the lease agreements are duly executed in favour of the lessee)disclosed in the financial statements are held in the name of the company.
(d) The company has not revalued any of its Property Plant and Equipment (includingRight of Use assets) or intangible assets or both during the year.
(e) As per our information and as explained by the management no proceedings have beeninitiated or are pending against the company for holding any benami property under theBenami Transactions (Prohibition) Act 1988 (45 of 1988) and rules made thereunder.
ii. a) As explained to us inventories have been physically verified by the managementat regular intervals during the year. In our opinion the frequency of such verificationis reasonable. No material discrepancies were noticed on such physical verification.
b) The company has sanctioned working capital limits in exess of five crore rupeesinaggregate from banks or financial institutions on the basis of security of current assets;the difference at the year end and half yearly statements filed by the company with thebank are show below.
| ||As per balance sheet ||As per statement submitted to bank ||Difference ||Reason |
|March 2022 lnventory(raw material chemical and fuel) ||2545.69 ||3061.48 ||515.79 ||Change in valuation method of raw material from FIFO to weighted average. |
|Trade receivable ||2975.24 ||3018.55 ||43.31 ||In accounts the difference is due to exchange rate difference in realization of export bills. |
|September 2021 lnventory(raw material chemical and fuel) ||1144.21 ||1201.91 ||57.70 ||Change in valuation method of raw material from FIFO to weighted average. |
|Trade receivable ||6736.78 ||6736.78 ||No difference ||- |
iii. The company has not made investments in provided any guarantee or security orgranted any loans or advances in the nature of loans secured or unsecured to thecompanies firms limited liability partnerships or any other parties.
iv. The company has not provided any loans investments guarantees and security asper provisions of sections 185 and 186 of the companies act.
v. The Company has not accepted deposits during the year and therefore the directivesissued by the reserve bank of India and the provisions of sections 73 to76 of the relevantprovisions of the companies act and the rules made thereunder are not applicable.
vi. The company is maintaining cost records but cost audit is not applicable as perrule 3(1) of Companies (Cost Records and Audit) Rules 2014
vii. According to the information and explanations given to us in respect of statutorydues:
(a) The Company has generally been regular in depositing undisputed statutory duesincluding Goods and service tax Provident Fund Employees' State Insurance Income TaxSales Tax Service tax Duty of Customs Duty of ExciseValue added Tax Cess and othermaterial statutory dues applicable to itwith the appropriate authorities.
(b) According to the information and explanations given to us and based on the recordsof the company there are no dues ofGoods and service tax Provident Fund Employees'State Insurance Income Tax Sales Tax Service tax Duty of Customs Duty of ExciseValue added Tax Cesswhich have not been deposited on the account of dispute.
In the case of search and seizure by income tax department (DIT investigation Cochin)on 25/01/2019 the management has informed that no demand notice was received from thedepartment and the amount of liability if any at the year and cannot be quantified. So noprovision is made for any liability.
viii. There are no transactions that are not recorded in the books of accounts to besurrendered or disclosed as income during the year in the tax assessments under the incometax act 1961.
a) In our opinion and according to the explanations given to us the Company has notdefaulted in repayment of loans or borrowings or payment of interest any lender to thefinancial institutions banks and Government or dues to debenture holders. There were nodebenture holders at any time during the year.
b) the company is not declared as a willful defaulter by any bank or financialinstitutions or other lender.
c) The term loans were applied for the purpose for which the loans have been obtained.
d) Funds raised on shortterm basis have not been utilized for long term purposes.
e) The company has not taken any funds from any entity or person on account of or tomeet the obligations of its subsidiaries associates or joint ventures.
f) The company has not raised loans during the year on the pledge of securities held initssubsidiaries joint ventures or associate companies.
x. a) The Company has not raised moneys by way of initial public offer or furtherpublic offer (including debt instruments)and hence reporting under clause 3 (ix) of theOrder is not applicable to the Company.
b) The company has not made any preferential allotment or private placement of sharesor convertible debentures (fully partially or optionally convertible) during the year.
xi. a) To the best of our knowledge and according tothe information and explanationsgiven tous no fraud by the Company oron the Companyhas been noticed or reported duringthe year.
b) No report under sub-section (12) of section 143 of the Companies Act has been filedby the auditors in Form ADT-4 as prescribed under rule 13 of Companies (Audit andAuditors) Rules 2014 with the Central Government;
c) The company has not received any whistle-blower complaints during the year.
xii. The Company is not a NidhiCompany and hence reporting under clause 3 (xii) of theOrder is not applicable to the Company.
xiii. In our opinion and according to the information and explanations given to us theCompany is in compliance with Section 177 and 188 of the Companies Act 2013 whereapplicable for all transactions with the related parties as required by the applicableaccounting standards.
(a) The company has an internal audit system commensurate with the size and nature ofits business;
(b) We have considered the reports of the Internal Auditors for the period under audit.
xv. In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transactions with itsDirectors or persons connected to its directors and hence provisions of section 192 of theCompanies Act 2013 are not applicable to the Company.
xvi. The Company is not required to be registeredunder section 45-IAof the Reserve Bankof India Act 1934.
xvii. The company has not incurred cash loss in the financial year and in theimmediately preceding financial year.
xviii. There has been no resignations of statutory auditors during the year.
xix. On the basis of the financial ratios ageing and expected dates of realisation offinancial assets and payment of financial liabilities other information accompanying thefinancial statements and as per our knowledge of the Board of Directors and managementplans we are of the opinion that no material uncertainty exists as on the date of theaudit report that company is capable of meeting its liabilities existing at the date ofbalance sheet as and when they fall due within a period of one year from the balance sheetdate.
xx. There is no unspent amount remaining in CSR activities.
xxi. There are no qualifications or adverse remarks by the respective auditors in theCompanies (Auditor's Report) Order (CARO) reports of the companies to be considered in thestandalone financial statements.
| ||For A K MURALEE & CO |
| ||Chartered Accountants |
| ||(Firm Registration No.011817S) |
|Alwaye ||Muralee Krishnan.A.K |
|23/05/2022 ||Proprietor |
| ||(Membership No.217127) |
| ||UDIN-22217127AJKEXJ5798 |