TO THE MEMBERS OF
KACHCHH MINERALS LIMITED.
I. Report on the Audit of the Standalone Financial Statements
A. We have audited the accompanying Standalone Financial Statements of KACHCHH
MINERALS LIMITED ("the Company") which comprise the Balance Sheet as atMarch 31 2021 the Statement of Profit and Loss (including Other Comprehensive Income)the Statement of Changes in Equity and the Statement of Cash Flows for the year ended onthat date and a summary of the significant accounting policies and other explanatoryinformation (hereinafter referred to as "the Standalone Financial Statements").
B. 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 ("Ind AS") and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at March 31 2021 the profit and totalcomprehensive income changes in equity and its cash flows for the year ended on thatdate.
2. Basis for Opinion
We conducted our audit of the Standalone Financial Statements in accordance with theStandards on Auditing specified under section 143(10) of the Act (SAs). 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 (ICAI) together with the independencerequirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the Standalone Financial Statements.
3. Key Audit Matters
Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the Standalone Financial Statements of the current period.These matters were addressed in the context of our audit of the Standalone FinancialStatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.
We draw attention to the following matters in the Notes to the financial statements:
a) Note 4.14 regarding non-ascertainment as well as non-provision of retirementbenefits such as gratuity and leave encashment as required by accounting standard (AS 15)issued by the Institute of Chartered Accountants of India
b) Note 4.15 regarding non-ascertainment of impaired assets as required by accountingstandard (AS 28) issued by the Institute of Chartered Accountants of India.
4. Information Other than the Standalone Financial Statements and Auditor's ReportThereon
A. The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notinclude the Standalone Financial Statements and our auditor's report thereon. Our opinionon the standalone financial statements does not cover the other information and we do notexpress any form of assurance conclusion thereon
B. In connection with our audit of the financial statements our responsibility is toread the other information and in doing so consider whether the other information ismaterially inconsistentwith the standalone Financial Statements or our knowledge obtainedduring the course of our audit or otherwise appears to be materially misstated. If basedon the work we have performed we conclude that there is a material misstatement of thisother information; we are required to report that fact. We have nothing to report in thisregard.
5. Management's Responsibility for the Standalone Financial Statements
A. 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 Ind AS and other accounting principles generally accepted in India. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
B. 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 are responsible for overseeing the Company's financial reportingprocess.
6. Auditor's Responsibilities for the Audit of the Standalone Financial Statements
A. 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.
B. As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:
i) Identify and assess the risks of material misstatement of the standalone financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.
ii) Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls with reference to financial statements inplace and the operating effectiveness of such controls.
iii)Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.
iv)Conclude on the appropriateness of management's use of the going concern basis ofaccounting 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 existswe 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 the Company to cease tocontinue as a going concern.
v) Evaluate the overall presentation structure and content of the Standalone FinancialStatements including the disclosures and whether the Standalone Financial Statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.
C. 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 of any identified misstatements in the Standalone FinancialStatements.
D. We communicate with those charged with governance regarding among other mattersthe planned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.
E. We also provide those charged with governance with a statement that we have compliedwithrelevantethical requirements regarding independence and to communicate with them allrelationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.
F. 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.
II. 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 the.Company 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 Ind ASspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules2014.
E. On the basis of the written representations received from the directors as on March31 2021 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2021 from being appointed as a director in terms of Section 164 (2) of theAct.
F. With respect to the adequacy of the internal financial controls with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure A". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internal financialcontrols with reference to financial statements.
G. With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended:
In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of section 197 of the Act.
H. 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 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 to theInvestor Education and 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 AMAA & ASSOCIATES || |
|Chartered Accountants || |
|FRN 013066 C || |
|RAJMALLABHCHANDMOGRA || |
|Partner || |
|M NO 036687 ||Date: 10/06/2021 |
|UDIN:21036687AAAAAI9836 ||Place: Mumbai |
"ANNEXURE A" TO THE AUDIT REPORT
Report on the internal financial controls with reference to the aforesaid standalonefinancial statements under section 143(3) (i) of the Companies Act 2013(Referred to inparagraph 2(f) under Report on Other Legal and Regulatory Requirements' section ofour report of even date)
We have audited the internal financial controls with reference to financial statementsof Kachchh Minerals Limited ("the Company") as of 31 March 2021 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat date.
In our opinion the Company has in all material respects an adequate internalfinancial control system with reference to financial statements and such internalfinancial controls were operating effectively as at 31 March 2021 based on the internalfinancial controls with reference to financial statements criteria established by theCompany considering the essential components of internal controls stated in the GuidanceNote on Audit of Internal Financial Controls over Financial Reporting issued by theInstitute of Chartered Accountants of India ("Guidance note").
Management's Responsibility for Internal Financial Controls
The Company's management and the Board of Directors are responsible for establishingand maintaining internal financial controls based on the internal financial controls withreference to financial statements criteria established by the Company considering theessential components of internal control stated in the Guidance Note. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to Company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013 (hereinafter referred to as"the Act").
Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to financial statements based on our audit. We conducted our auditin accordance with the Guidance Note and the Standards on Auditing prescribed undersection 143(10) of the Act to the extent applicable to an audit of internal financialcontrols with reference to financial Statements. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls with reference tofinancial statements were established and maintained and whether such controls operatedeffectively in all material respects Our audit involves performing procedures to obtainaudit evidence about the adequacy of the internal financial controls with reference tofinancial statements and their operating effectiveness. Our audit of internal financialcontrols with reference to financial statements included obtaining an understanding ofsuch internal financial controls assessing the risk that a material weakness exists andtesting and evaluating the design and operating effectiveness of internal control based onthe assessed risk. The procedures selected depend on the auditor's judgment including theassessment of the risks of material misstatement of the standalone financial statementswhether 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 Company's internal financial controls withreference to financial statements.
Meaning of Internal Financial Controls with reference to Financial Statements financialstatements is a process designed to provide reasonable assurance regarding the reliabilityof financial reporting and the preparation of financial statements for external purposesin accordance with generally accepted accounting principles. A company's internalfinancial controls with reference to financial statements include those policies andprocedures that (1)pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany; (2) provide reasonable assurance that transactions are recorded as necessary topermit preparation of financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorizations of management and directors of the company; and (3)provide reasonable assurance regarding prevention or timely detection of un authorizedacquisition use or disposition of the company's assets that could have a material effecton the financial statements.
Inherent Limitations of Internal Financial Controls with reference to financialstatements
Because of the inherent limitations of internal financial controls with reference tofinancial statements including the possibility of collusion or improper managementoverride of controls Material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls withreference to financial statements to Future periods are subject to the risk that theinternal financial controls with reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.
|FOR AMAA & ASSOCIATES || |
|Chartered Accountants || |
|FRN 013066 CRAJMAL LABHCHAND MOGRA || |
|Partner || |
| ||Date: 10/06/2021 |
|M NO 036687 ||Place: Mumbai |
|UDIN:21036687AAAAAI9836 || |
"ANNEXURE B" TO THE 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 31st March 2021 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 Act2013 (the Act').
(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.
(viii) The accumulated losses at the end of financial year 2020-2021 are more than 50%of Company's net worth. The Company has earned cash Profits during the period covered bythe report and the financial year immediately preceding such financial year.
(ix) 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.