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Greenearth Resources & Projects Ltd.

BSE: 533016 Sector: Others
NSE: AUSTRAL ISIN Code: INE455J01027
BSE 00:00 | 13 Dec Greenearth Resources & Projects Ltd
NSE 05:30 | 01 Jan Greenearth Resources & Projects Ltd
OPEN 0.24
PREVIOUS CLOSE 0.24
VOLUME 60845
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52-Week low 0.20
P/E
Mkt Cap.(Rs cr) 7
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 0.24
CLOSE 0.24
VOLUME 60845
52-Week high 0.24
52-Week low 0.20
P/E
Mkt Cap.(Rs cr) 7
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Greenearth Resources & Projects Ltd. (AUSTRAL) - Auditors Report

Company auditors report

To

The Members of

Greenearth Resource & Projects Limited.

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying Standalone Ind AS Financial Statements of M/sGreenarth Resources & Projects Limited("the Company") which comprisethe Balance Sheet as at 31st March 2019 the Statement of Profit and Loss (includingOther Comprehensive Income) the Statement of Cash Flows and the Statement of Changes inEquity for the year then ended and a summary of significant accounting policies and otherexplanatory information (herein after referred to as "Standalone Ind AS FinancialStatements").

Management's Responsibility for the Financial Statements

The Company's 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 Ind AS Financial Statements that give a true and fairview of the financial position financial performance including other comprehensiveincome cash flows and changes in equity of the Company in accordance with the accountingprinciples generally accepted in India including the applicable Indian AccountingStandards (Ind AS) prescribed under Section 133 of the Act read with the Companies(Indian Accounting Standards) Rules 2015 as amended.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing 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 Standalone IndAS Financial Statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these Standalone Ind AS FinancialStatements based on our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions 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 Standalone Ind AS Financial Statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Standalone Ind AS Financial Statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the Standalone Ind AS Financial Statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the Standalone Ind AS Financial Statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the Standalone Ind ASFinancial Statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Standalone Ind AS Financial Statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone Ind AS Financial Statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India including the Ind AS of thefinancial position of the Company as at 31st March 2019 and its financial performanceincluding other comprehensive income its cash flows and the changes in equity for theyear ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-Section (11) of Section 143 ofthe Act we give in "Annexure A" statement on the matters specified inthe paragraph 3 and 4 of the Order to the extent applicable.

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 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 the Statement of Cash Flows andthe Statement of Changes in Equity dealt with by this Report are in agreement with thebooks of account;

d) in our opinion the aforesaid Standalone Ind AS Financial Statements comply with theAccounting Standards specified under Section 133 of the Act read with the Companies(Indian Accounting Standards) Rules 2015 as amended;

e) on the basis of the written representations received from the directors as on 31stMarch 2019 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2019 from being appointed as a director in terms of Section164 (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 B";

g) with respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us wereport that :-

Basis for Qualified Opinion

i. The Accumulated losses of the Company is Rs. 604.59 crores (Previous period: LossRs. 595.99 crores) and its net worth is negative Rs. 270.88 Crores (Previous period:Negative Rs. 262.28 crores) as at the end of the reporting period which indicates erosionof Net worth of the Company. The Company can be termed as "SICK" within themeaning of clause (O) of sub section (1) of section 3 of the Sick Industrial Companies(Special Provision) Act 1985.

ii. Presently Invent Assets Securitisation & Reconstruction Private Limited is thesecured lender and all the rights title and interests of State Bank of India have vestedin Invent Assets Securitisation & Reconstruction Private Limited in respect of thefinancial assistances granted by State Bank of India and Bank of India.

iii. Also M/s Simplex Coke and Refractory Private Limitedis the beneficial owner of allpresent and future encumbered or unencumbered tangible assets receivables and advances ofcompany in lieu of settlement/payment to the secured creditor/lender being "M/sInvent Assets Securitisation & Reconstruction Private Limited".

iv. M/s Simplex coke and Refractory Private Limited is using the production facility ofM/s Greenearth Resources & Projects Limited on lease basis.

v. The inquiry before the Securities and Exchange Board of India Mumbai under Rule 4of SEBI (Procedure for Holding Inquiry and Imposing Penalties by Adjudication officer)Rules 1995 is still subjudice.However the management has submitted its reply and outcomeof the same is still pending.

vi. SFIO filed petitions before CLB Principal Bench;Kolkata- NCLT & CMM courtKolkata. The outcome of the same is pending & matter is subjudice

vii. There have been no amounts which are required to be transferred to the InvestorEducation and Protection Fund by the Company.

viii. Balances of Loans Sundry Debtors Loans and Advances and Current Liabilitiesare subject to confirmation from the respective parties and reconciliations if any.

For and on behalf of
M/s SARP & Associates
(Chartered Accountants)
Firm Reg. No. 007375C
Sd/-
Shailesh Agarwal
(Partner)
Membership No. 063220
Place: Kolkata
Date: May 30 2019.

Annexure "A" to the Independent Auditors' Report

(Referred to in Paragraph 1 of our Report of even date)

The Annexure referred to in our Independent Auditor's Report to the members of theCompany on the Standalone Ind AS Financial Statements for the year ended 31st March 2019we report that:

1. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets subject to the annexure to the AuditorsReport for the period ended on 31.03.2010.

(b) As explained to us fixed assets according to the practice of the Company arephysically verified by the management at reasonable intervals in a phased verificationprogramme which in our opinion is reasonable looking to the size of the Company andthe nature of its business.

2. As explained to us company had no inventories except consumables spares during theyear hence clause (ii) of the order is not applicable to the company.

3. In our opinion and according to the information and explanation given to us duringthe period under review the company has not granted any loans secured or unsecured tocompanies firms or other parties covered in the register maintained under section 189 ofthe Companies Act 2013 ('the Act'). Accordingly Clause 3(iii) (a) (b) and (c) of theorder are not applicable for the year.

4. In our opinion and according the information and explanation given to us during theperiod under review there are no loans guarantees and securities granted in respect ofwhich provisions of section 185 and 186 of the Companies Act 2013 are applicable and hencenot commented upon.

5. The Company has not accepted any deposits from the public and hence the directivesissued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any otherrelevant provisions of the Act and the Companies (Acceptance of Deposit) Rules 2015 withregard to the deposits accepted from the public are not applicable.

6. The Central Government has not prescribed the maintenance of cost records for thecompany under section 148(1) of the Act 2013.

7. (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company in respect of undisputed statutory duesincluding provident fund income tax sales tax wealth tax service tax duty of customsvalue added tax cess and other material statutory dues have been regularly depositedduring the year by the Company with the appropriate authorities. According to theinformation and explanations given to us no undisputed amounts payable in respect ofstatutory dues were in arrears as at 31 March 2019 for a period of more than six monthsfrom the date they became payable except Professional tax Sales tax service tax andIncome tax.

(b) As at the Balance Sheet date the following are the details of the disputed incometax that has not been deposited by the Company on account of disputes.

Sr. No. Nature of Dues Assessment Year Amount (Rs.In Lacs) Forum where dispute is pending
1. Income Tax 2011-12 14.15 CIT(Appeal)
2. Income Tax 2012-13 751.71 CIT(Appeal)
3. Income Tax 2013-14 2412.33 CIT(Appeal)
4. Income Tax 2014-15 3678.44 CIT(Appeal)
Total 6856.63

8. The Company is having outstanding dues to financial institutions or banks during theyear as mentioned under the Report on other Legal and Regulatory Requirements paragraphabove.

9. According to the information and explanation given by the management the companyhas neither raised any monies by way of initial public offer or further public offer andterm loan during the period under audit. Hence reporting under clause (ix) is notapplicable.

10. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practice in India andaccording to the information and explanation given to us we have neither come across anyinstance of material fraud by the Company or on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of any such case by themanagement.

11. According to the information and explanations given to us and on the basis of ourexamination of the records of the Company managerial remuneration if any has been paid orprovided in accordance with the requisite approvals mandated by the provisions of Section197 read with Schedule V of the Act.

12. In our opinion the Company is not a nidhi Company. Accordingly the provisions ofClauses 3 (xii) of the Order are not applicable.

13. As per information and explanation given to us and on the basis of our examinationof the records of the Company all the transaction if any with related parties are incompliance with Section177 and 188 of Companies Act 2013 and all the details have beendisclosed in Standalone Ind AS Financial Statements as required by the applicableAccounting Standards.

14. According to the information and explanations given to us and on the basis of ourexamination of the records the Company has not made any preferential allotment or privateplacement or not issued any debenture during the year under review. Accordingly theprovisions of paragraph 3(xiv) of the Order are not applicable.

15. According to the information and explanations given to us and on the basis of ourexamination of the records the Company has not entered into any non-cash transactionswith any director or any person connected with him. Accordingly the provisions of Clauses3(xv) of the Order are not applicable to the Company.

16. In our opinion the Company is not required to be registered under Section 45 IA ofthe Reserve Bank of India Act 1934 and accordingly the provisions of clause 3(xvi) ofthe Order are not applicable.

For and on behalf of
M/s SARP & Associates
(Chartered Accountants)
Firm Reg. No. 007375C
Sd/-
Shailesh Agarwal
(Partner)
Membership No. 063220
Place: Kolkata
Date: May 30 2019.

Annexure "B" to the Independent Auditor's Report

(Referred to in paragraph 2 (f) of our Report of even date)

Report on the Internal Financial Controls under Clause i of sub-section 3 of Section143 of the Companies Act 2013 (the Act).

We have audited the internal financial controls over financial reporting of the Companyas of 31st March 2019 in conjunction with our audit of the Standalone Ind-AS FinancialStatements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the Guidance Note) and the Standards on Auditing issued by ICAI and deemed to beprescribed under Section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand 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 Standalone Ind AS Financial Statements whether due to fraudor error.

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.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the Company;

(2) Provide reasonable assurance that transactions 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 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.

Opinion

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 31st March 2019 based 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.

For and on behalf of
M/s SARP & Associates
(Chartered Accountants)
Firm Reg. No. 007375C
Sd/-
Shailesh Agarwal
(Partner)
Membership No. 063220
Place: Kolkata
Date: May 30 2019.

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