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Mewat Zinc Ltd.

BSE: 513496 Sector: Metals & Mining
NSE: N.A. ISIN Code: INE235U01012
BSE 00:00 | 31 Jul Mewat Zinc Ltd
NSE 05:30 | 01 Jan Mewat Zinc Ltd
OPEN 12.80
PREVIOUS CLOSE 12.80
VOLUME 100
52-Week high 12.90
52-Week low 12.80
P/E 71.11
Mkt Cap.(Rs cr) 5
Buy Price 12.90
Buy Qty 100.00
Sell Price 12.80
Sell Qty 100.00
OPEN 12.80
CLOSE 12.80
VOLUME 100
52-Week high 12.90
52-Week low 12.80
P/E 71.11
Mkt Cap.(Rs cr) 5
Buy Price 12.90
Buy Qty 100.00
Sell Price 12.80
Sell Qty 100.00

Mewat Zinc Ltd. (MEWATZINC) - Auditors Report

Company auditors report

To

The Members of:- Mewat Zinc Limited

New Delhi

Report on the Standalone Indian Accounting Standards (IND AS) Financial StatementsOpinion

We have audited the accompanying Standalone Indian Accounting Standards (IND AS)financial statements of Mewat Zinc Limited(“the company”) which comprise theBalance Sheet as at 31 March 2020 the Statement of Profit and Loss (including otherComprehensive Income)the Cash Flow Statement and the Statement of Changes in Equity forthe year then ended and a summary of significant accounting policies and otherexplanatory information.

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 theCompanies Act 2013 (“the Act”) in the manner so required and give a true andfair view in conformity with the Indian Accounting Standards prescribed under section 133of the Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended(“Ind AS”) and other accounting principles generally accepted in India of thestate of affairs of the Company as at 31st March 2020 its Profit and total comprehensiveincome changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India (ICAI) together with theindependent requirements that are relevant to our audit of the financial statements underthe provisions 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 opinion on the financial statements.

Information Other than the Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises Board's Report including Annexures to Board'sReport but does not include the financial statements and our auditor's report thereon.

Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially in consistent with the financial statements or our knowledge obtained duringthe course of our audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information; we are required to report that fact. We havenothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the FinancialStatements

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 financial statements that givea true and fair view of the financial position financial performance total comprehensiveincome changes in equity and cash flows of the Company in accordance with the Ind AS andother accounting principles generally accepted in India. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

The Board of Directors of the company are also responsible for overseeing the company'sfinancial reporting process. Auditor's Responsibilities for the Audit of the FinancialStatements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these 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 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.

• Obtain an understanding of internal financial control relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Companies Act 2013 we are also responsible for expressing our opinionon whether the company has adequate internal financial controls system in place and theoperating effectiveness 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 existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

• Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

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.

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 in terms of sub-section (11) of the section 143 of theAct (“the Order”) and on the basis of such checks of the books and records ofthe Company as we considered appropriate and according to the information and explanationgiven to us we give in “Annexure-A” a statement on matters specified inparagraphs 3 and 4 of the said Order.

2. As requiredbysection143(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 (including other comprehensiveincome) the Cash Flow Statement and the Statement of changes in Equity dealt with by thisReport are in agreement with the books of account.

d) In our opinion the aforesaid standalone Ind AS financial statements comply with theIndian Accounting Standards prescribed under section 133 of the Act.

e) On the basis of written representations received from the directors as on 31 March2020 taken on record by the Board of Directors none of the directors is disqualified ason 31March 2020 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 over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in “Annexure-B”. Our Report expresses an unmodified opinion onthe adequacy and operating effectiveness of the company's internal financial controls overfinancial reporting.

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. The Company does not have any pending litigations which would affect its financialposition.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

iv. Impact of Govid-19:- Government has imposed lockdown from 22nd March2020 due to outbreak of Coronavirus Disease (Covid-19) a global pandemic. As reported bymanagement Covid -19 badly affected the Company and the Company will start its businessactivities only after the situation becomes normal.

For Gaurav Surendra Gupta & Associates
Chartered Accountants
(Firm Reg. No 032345N)
Sd/-
(CA. Gaurav Gupta)
F.C.A
Place: Delhi Partner
Dated: June 29 2020 Membership No. 524688
UDIN: 20524688AAAAG E2609

“Annexure A'' to the Independent's Auditor's Report

Referred to in paragraph 10 under the heading of “Report on Other Legal andRegulatory Requirements” of the

Independent's Auditor's Report on even date to the members of Mewat Zinc Limited on theStandalone Ind AS financial

Statements as of and for the year ended 31st March 2020

i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) As per the information and explanation given to us and records examined by us theCompany has physically verified its fixed assets at reasonable intervals in accordancewith its program. No material discrepancies were noticed on such verification.

(c) According to the information and explanations given to us and on the basis ofexamination of the records of the Company does not own any immovable properties.

ii) As per the information and explanation given to us and on the basis of examinationof records of the company inventories have been physically verified by the Management atreasonable intervals in accordance with its program and no material discrepancies werenoticed on such physical verification by the management.

iii) As per the information and explanation given to us and on the basis of examinationof records of the company the Company has not granted any loans whether secured orunsecured to any companies firms limited liability partnership or to other partiescovered in the Register required to be maintained under section 189 of the Companies Act2013 and thereby reporting requirement as to term and conditions repayment schedulepayment of interest and overdue principal thereof is not applicable for the year underreport.

iv) As per the information and explanation given to us and on the basis of examinationof records of the company the Company has neither granted any loans nor made anyinvestments nor provided any guarantee or security pursuant to section 185 and section 186of the Companies Act 2013 and thereby reporting requirement with regard thereto is notapplicable for the year under report.

v) As per the information and explanation given to us and on the basis of examinationof records of the company the Company has not accepted any deposits from the publicduring the year and thereby directives of Reserve Bank of India or the provisions ofsection 73 to 76 or any other relevant provisions of the Companies Act 2013 relating todeposits is not applicable for the year under report.

vi) Maintenance of stock record has not been prescribed by the central government undersection 148 (1) of the companies act to this company however as per the information andexplanations given to us and records broadly reviewed by us we are of the opinion thatprima-facie cost records as specified by the Central Government pursuant to section 148 ofthe Act have been made and maintained by the company.

vii) (a) According to the information and explanations given to us the Company isgenerally regular in depositing with appropriate authorities undisputed statutory duesincluding provident fund employees' state insurance income tax (income tax deducted atsource) goods and service tax duty of custom cess and other material statutory duesapplicable to it except slight delay in few cases of deposit of income tax deducted atsource.

According to the information and explanations given to us no undisputed amountspayable in respect of the aforesaid dues were outstanding as at 31st March 2020 for aperiod of more than six months from the date they became payable

(b) According to the information and explanations given to us there are no dues ofincome tax (income tax deducted at source) service tax value added tax goods andservice tax and duty of custom which have not been deposited on account of any dispute.

viii) According to the information and explanations given to us and on the basis ofexamination of books of account and other records the company has not defaulted inrepayment of loans or borrowings to a financial institutions bank government or dues todebentures holders.

ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3(ix) of the Order is not applicable to the Company.

x) According to the information and explanations given to us and records examined by usduring the course of audit and to the best of our knowledge and belief no fraud by thecompany; nor any fraud on the company by its officers or employees has been noticed orreported during the course of our audit for the year under report.

xi) According to the information and explanations given to us and on the basis ofexamination of books of account and other records the company was not required to obtainany requisite approval mandated by the provisions of section 197 read with Schedule V ofthe Companies Act 2013 and thereby reporting with regard thereto is not applicable.

xii) According to the information and explanations given to us the company is not anidhi company and thereby ratio of net owned funds to deposits and other requirements withregard thereto is not applicable to the company.

xiii) According to the information and explanations given to us and based onexamination of the records of the Company we are of the opinion that transactions withthe related parties were in compliance with sections 188 of the Companies Act 2013wherever applicable and details thereof have been disclosed in the financial statements asrequired by applicable accounting standards. In our opinion the provisions of section 177of the Companies Act 2013 are not applicable to the company.

xiv) According to the information and explanations give to us and based on examinationof the books of account and other records the Company has not made any preferentialallotment or any private placement of shares or of any fully or partly convertibledebentures during the year and thereby reporting requirement with regard thereto is notapplicable to the company for the year under report.

xv) According to the information and explanations given to us and based on examinationof the books of account and other records the Company has not entered into any non-cashtransactions with directors or persons connected with him and thereby repottingrequirement with regard thereto is not applicable for the year under report.

xvi) According to the information and explanations given to us and records examined byus the Company is not required to be registered under section 45-IA of the Reserve Bankof India Act 1934.

For Gaurav Surendra Gupta & Associates
Chartered Accountants
(Firm Reg. No 032345N)
Sd/-
(CA. Gaurav Gupta)
F.C.A
Place: Delhi Partner
Dated: June 29 2020 Membership No. 524688
UDIN: 20524688AAAAG E2609

“Annexure B'' to the Independent's Auditor's Report

Referred to in paragraph under the heading of “Report on Other Legal andRegulatory Requirements” of our Independent Auditors report of even date to themembers of Mewat Zinc Limited on the standalone Ind AS financial Statement for the yearended 31st March 2019

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 Mewat ZincLimited (“the Company”) as of 31 March 2020 in conjunction with our audit of theStandalone Ind AS financial statements of the Company for the year ended on that 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 (‘ICAI'). These responsibilities include thedesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to respective company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the 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”) issued by ICAI and the Standards on Auditing prescribedunder section 143(10) of the Companies Act 2013 to the extent applicable to an audit ofinternal financial controls. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

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 financial statements whether 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 internal financial controls system overfinancial 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 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 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.

Opinion

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 31st March 2020 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

For Gaurav Surendra Gupta & Associates
Chartered Accountants
(Firm Reg. No 032345N)
Sd/-
(CA. Gaurav Gupta)
F.C.A
Place: Delhi Partner
Dated: June 29 2020 Membership No. 524688
UDIN: 20524688AAAAG E2609

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