TO THE MEMBERS OF
M/s. KACHCHH MINERALS LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of M/s KACHCHH MINERALS LIMITED("the company") which comprises the Balance Sheet as at 31 March 2017 theStatement of Profit and Loss the Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters in section 134(5) ofthe Companies Act 2013 ("the Act") with respect to the preparation andpresentation of these financial statements that give a true and fair view of the financialposition financial performance and cash fiows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes the maintenance of adequate accountingrecords in accordance with the provision of the Act for safeguarding of the assets of theCompany and for preventing and detecting the frauds and other irregularities; selectionand application of appropriate accounting policies; making judgments and estimates thatare reasonable and prudent; and design implementation and maintenance of internalfinancial control that were operating efiectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit.
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 there under.
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 misstatement.An audit involves performingprocedures to obtain audit evidence about the amounts and disclosures in the financialstatements. The procedures selected depend on the auditor's judgment including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error. In making those risk assessments the auditor considers internalfinancial control relevant to the Company's preparation of the financial statements thatgive true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by Company'sDirectors as well as evaluating the overall presentation of the financial statements.Webelieve that the audit evidence we have obtained is suficient and appropriate to provide abasis for our audit opinion on the financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31March 2017 and its Profit and its Cash Flows for the year ended on that date.
Emphasis of Matters
We draw attention to the following matters in the Notes to the ?nancial statements:a)Note 19.15.05 regarding non-ascertainment as well as non-provision of retirement benefitssuch as gratuity and leave encashment as required by accounting standard (AS 15) issued bythe Institute of Chartered Accountants of Indiab) Note 19.15.07 regardingnon-ascertainment of impaired assets as required by accounting standard (AS 28) issued bythe Institute of Chartered Accountants of India.
Report on other Legal and Regulatory Requirements
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(3)of the Companies Act 2013 we give the 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 appears from our examination of those books;
c) The Balance Sheet the Statement of Profit and Loss and Cash Flow Statement dealtwith by this Report are in agreement with the books of account;
d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.
e) On the basis of written representations received from the directors as on 31 March2017 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2017 from being appointed as a director in terms of Section 164(2) of theAct.
FOR SAMIR GANDHI & CO.
CA. SAMIR GANDHI
Membership No 121330
Place : MUMBAI
Date : 11/08/2017
ANNEXURE TO THE INDEPENDENT AUDIT REPORT
Report on the Financial Statements
The Annexure referred to in our Independent Auditor's Report to the Members of theCompany on the Financial Statements for the year ended 31 March 2017 we report that:
(I) (a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) We are informed that all the major assets have been physically verified by themanagement during the year No material discrepancies were noticed on such verification ofFixed Assets during the year.
(ii) (a) According to information and explanations given to us the Company hasconducted physical
verification of inventories at reasonable intervals.
(b) According to information and explanations given to us the procedure of physicalverification of inventories carried on by the management appears to be reasonable andadequate in relation to its size and nature of its business.
(c) According to information and explanations given to us the company is maintainingproper records of inventory; no material discrepancies were noticed between physicalverification of stock as compared to book records.
(iii) The Company has not granted any loans Secured or unsecured to Companies Firms orother parties
covered in the registered maintained under section 189 of the Companies Act 2013 ('theAct').
(a) According to the information and explanations given to us the company has notgranted any loans secured or unsecured to companies firms or other parties. Thereforethe provisions of clause iii (b) of paragraph (3) of order are not applicable.
(b) According to the information and explanation given to us the company has notgranted any loans. Therefore provisions of clause iii (c) of paragraph (3) of the orderare not applicable.
(iv) In our opinion and according to the information and explanation given to us thereare Adequate internal control procedures commensurate with the size of the company andNature of its business with regard to purchase of inventories stores spare partscomponents fixed assets including plant & machinery equipment and other assets andWith regards to sale of goods. There is no continuing failure to correct major weakness ininternal control of company.
(v) In our opinion and according to the information and explanation given to us thecompany has not accepted any deposits from the public u/s 73 to 76 or any other provisionsof Companies Act and rules framed there under.
(vi) In our opinion and according to the information and explanation given to us theCentral Government has not prescribed the maintenance of cost records under section 148(1)of the Act for the products of the Company.
(vii) According to information and explanation given to us and the records of thecompany examined by us the company has generally been regular in depositing with theappropriate authorities is undisputed dues including income tax value added tax royaltyand other material statutory dues as applicable to it. The royalty amount of Rs. 579037/- is shown as payable and outstanding on account of non-clarification of royaltypayable by the concerned dept. of the govt.
(viii) The accumulated losses at the end of financial year 2016-2017 are more than 50%of Company's net worth. The Company has incurred cash losses during the period covered bythe report and the financial year immediately preceding such financial year.
(xi) According to information and explanation given to us by the management thecompany has not defaulted in repayment of dues to financial institutions banks andDebenture holders.
(x) According to information and explanation given to us the Company has not given anyguarantee for loan taken by others from banks and financial institutions the terms andconditions whereof are prejudicial to the interest of the company.
(xi) According to information and explanation given to us no term loan has beenavailed by the company.
(xii) According to information and explanation given to us no fraud on or by thecompany has been noticed or reported during the year.
(xiii) In our opinion and according to the information and explanations given to usthe company has not raised any money by way of initial public offer or further publicsoffer (including debt instrument) and money raised by way of term loans during the yearhave been applied for the purposes for which they were raised.
(xiv) During the course of our examination of the books and records of the companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations 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 been informed of any such case by themanagement.
(xv) According to the records of the company examined by us and information andexplanations given to us the company has paid/provided for managerial remuneration inaccordance with the requisite approvals mandated by the provisions of section 197 readwith schedule v to the Act.
(xvi) In our opinion and according to the information and explanation given to us thecompany is not a Nidhi company and the Nidhi Rules 2014 are not applicable to it.
(xvii) According to the information and explanation given to us and based on ourexamination of the records of the company. Transactions with the related parties are incompliance with sections 177 and 188 of the Act and details of such transactions have beendisclosed in the financial statements as required by the applicable accounting standards.
(xviii) According to the records of the company examined by us and information andexplanations given to us the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year.
(xix) According to the records of the company examined by us and information andexplanations given to us the company has not entered into non-cash transactions withdirectors or persons connected with him.
(xx) The company is not required to be registered under section 45-lA of the Reservebank of India Act 1934.
FOR SAMIR GANDHI & CO.
Membership No 121330
Place : MUMBAI