TO THE MEMBERS OF
MERCURY METALS LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of M/s. MERCURY METALSLIMITED ("the Company") which comprise the Balance Sheet as at 31st March
2018 the Statement of Profit & Loss for the year then ended and the cash flowstatement for the year ended on that date annexed thereto and a summary of significantaccounting policies and other explanatory information.
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 preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows 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 maintenance of adequate accounting recordsin accordance with the provisions of the Act for safe guarding of the assets of theCompany and for preventing and decting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgements and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation of thefinancial 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 standalone financial statementsbased 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 financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal control relevant to the Company's preparation and fair presentation ofthe financial statements 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 managements aswell as evaluating the overall 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.
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:
(a) In the case of Balance Sheet of the state of affairs of the Company as at 31stMarch 2018;
(b) In the case of the Statement of Profit and Loss of the Loss for the year ended onthat date;
(c) In the case of Cash flow statement of the cash flows for the year ended on thatdate.
Emphasis of Matter
We draw attention to Note no 20 of the financial statements regarding diminuation invalue of inventory of shares of listed companies. Company has not provided for diminutionin value of inventories of listed companies shares as per Accounting Standard - 13'Accounting for Investments'. Our opinion is not qualified in respect of this matter.
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 of theCompanies Act 2013 we give in the Annexure B statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.
As acquired 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 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 written representations received from the directors as on 31st March2018 and taken on record by the Board of Directors none of the directors is disqualifiedas on 31st March 2018 from being appointed as a director in terms of Section 164(2) ofthe 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".
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:
i There is no pending litigation that may have impact on its financial statements.
ii The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii There is no amount to be transferred to Investors Eduction Protection Fund.
iv The Company has provided requisite disclosures in note no.30 of the financialstatements as to holdings as well as dealings in Specified Bank Notes during the periodfrom 8th November 2016 to 30th December 2016. Based on audit procedures and relying onthe management representation we report that the disclosures are in accordance with booksof account maintained by the Company and as produced to us by the management .
For AMBALAL PATEL & CO.
Chartered Accountants Firm Reg. No. : 100305W
CA NIKUNJ PATALIA
Partner M.No. 131220
INDEPENDENT AUDITORS' REPORT ON INTERNAL FINANCIAL CONTROL
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013
1 We have audited the internal financial controls over financial reporting of MercuryMetals Limited as at 31 March 2017 in conjunction with our audit of the Balance SheetStatement of Profit & loss Cash Flow statement & notes forming part of financialstatement.
Management's Responsibility for Internal Financial Controls
2 Management is responsible for establishing and maintaining internal financialcontrols based on the essential components of internal control stated in the Guidance Noteon
Audit of Internal Financial Controls Over Financial Reporting (the GuidanceNote') issued by the Institute of Chartered Accountants of India (the ICAI')".These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required by
The Companies Act 2013 (the Act').
3 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 and the Standards on Auditing (the Standards') issued by theICAI and deemed to be prescribed under section 143(10) of the Act to the extentapplicable to an audit of internal financial controls both issued by the ICAI. 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.
4 Our audit involves performing procedures to obtain audit evidence about the adequacyof the 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 financial statements whether due to fraud or error.
5 We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the companies internal financial controls systemover financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
6 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. 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 regardingprevention or timely detection of unauthorized acquisition use or disposition of theCompany's assets that could have a 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 policies or procedures may deteriorate.
7 In our opinion Company has in all material respects an adequate internal financialcontrols system over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at 31 March 2017 based on the internalcontrol over financial reporting criteria established by the management of the companyconsidering the essential components of internal control stated in the Guidance Note.
For AMBALAL PATEL & CO. Chartered Accountants Firm Reg. No. : 100305W
CA NIKUNJ PATALIA Partner M.No. 131220
ANNEXURE TO INDEPENDENT AUDITOR'S REPORT
(Referred to paragraph 1 under the heading of "Report on Other Legal andRegulatory Requirements" of our report of even date.)
(i) (a) The company does not own any fixed assets on its name hence no recordsrequired to be maintained for the same.
(b) As there is no fixed assets this clause does not applicable
(c) There is no immovable property held in the name of the company hence relevantclause is not applicable.
(ii) As explained to us physical verification of inventory has been conducted by themanagement at the end of the year in respect of inventory and there are no materialdiscrepancies were noticed;
(iii) According to the information explanation given to us company has not granted anyloans secured or unsecured to companies firms Limited Liability Partnerships or otherparties covered in the register maintained under section 189 of the Companies Act 2013
(iv) In respect of loans investments guarantees and security Company has compliedthe provisions of section 185 and 186 of the Companies Act 2013 .
(v) The Company has not accepted any deposites from public and hence the provision ofsection 73 and 76 or any other relevant provisions of the Companies Act and the rulesframed there under are not applicable to Company.
(vi) In our opinion and according to the information and explanations given to usmaintenance of cost records has not been prescribed by the Central Government undersection 148(1) of the Companies Act 2013 for any products of the company.
(vii) (a) According to the information and explanation given to us and the books andrecords examined by us there are no undisputed amounts payable in respect of Income-taxVAT outstanding as at 31st March 2017 for a period exceeding six months from the date theybecame payable.
(b) On the basis of our examination of the documents and records there is no disputedamount pending in respect of any statutory dues.
(viii) Based on our audit procedure and on the information and explanation given by themanagement we are of the opinion that the company has not defaulted in repayment of duesto the bank during the year under review.
(ix) Company has not raised money by way of initial public offer or further publicoffer (including debt instruments) and term loans under review.
(x) According to the information and explanation given to us and to the best of ourknowledge and belief no fraud on or by the company has been noticed or reported by thecompany during the year.
(xi) Based on our audit procedure and books examined by us Company has paid managerialremuneration in accordance with the the provisions of section 197 read with Schedule V tothe Companies Act.
(xii) Since the company is not Nidhi Company relevant clause of CARO 2016 is notapplicable to the company.
(xiii) According to information and explanation given to us all transactions with therelated parties are in compliance with sections 177 and 188 of Companies Act 2013 whereapplicable and the details have been disclosed in the Financial Statements etc. asrequired by the accounting standard 18.
(xiv) According to information and explanation given to us the company has not madeany preferential allotment or private placement of shares or fully or partly convertibledebentures during the year and so company is not required to comply section 42 of theCompanies Act 2013.
(xv) According to information and explanation given to us the company has not enteredinto any non-cash transactions with directors or persons connected with him and companyhas been complied the provisions of section 192 of Companies Act 2013.
(xvi) According to information and explanation given to us the company is not requiredto be registered under section 45-IA of the Reserve Bank of India Act 1934.
For AMBALAL PATEL & CO. Chartered Accountants Firm Reg. No. : 100305W
CA NIKUNJ PATALIA Partner M.No. 131220