To the Members of
MIDWEST GOLD LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of MIDWEST GOLDLIMITED ("the Company") which comprise the Balance Sheet as at March 312018and the Statement of Profit and Loss (including Other Comprehensive Income) theStatement of Changes in Equity and the Statement of Cash Flows for the year then ended anda summary of the significant accounting policies and other explanatory information.
Management's Responsibility for the Standalone 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 standa-lone financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income cash flows andchanges in equity of the Company in accordance with the Indian Accounting Standards (IndAS) pre-scribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended and other accounting principles generally accepted inIndia.
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 standalonefinancial 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. In conducting our audit we have taken into account the provisions ofthe Act the accounting and auditing standards and matters which are required to beincluded in the audit report under the provisions of the Act and the Rules madethe-reunder and the Order issued under section 143(11) of the Act.
We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone financial statements are free frommaterial misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone financial statements. The procedures selected depend onthe auditor's judgment including the assessment of the risks of material misstatement ofthe standalone financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the standalone financial statements that give a true and fair view in orderto design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the standalone financial statements.
We believe that the audit evidence obtained by us is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.
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 of the state of affairs of the Companyas at 31 March 2018 and its and its profit total comprehensive income the changes inequity and its cash flows for the year ended on that date.
Report on other Legal and Regulatory Requirements
1. As required by section 143(3) of the Act based on the 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 purpose 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 Statement of Changes in Equity and the Statement of Cash Flow dealt with by thisReport are in agreement with the books of account.
d) in our opinion the aforesaid standalone financial statements comply with the IndianAccounting Standards specified under section 133 of the Act.
e) on the basis of the written representations received from the directors of thecompany as on 31 March 2018 taken on record by the Board of Directors none of thedirectors is disqualified as on 31 March 2018 from being appointed as a director in termsof section 164(2) of the Act; and
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" . 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 inac-cordance with Rule 11 of the Companies ( Audit and Auditors) Rules2014 in our opinionand to the best of our information and according to the explana-tions given to us:
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 tothe Investor 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 of India in terms of section 143(11) of the Act we givein the Annexure "B" a statement on the matters specified in paragraphs 3 and 4of the Order.
| ||For M/s. B R N Murthy And Associates || |
| ||Chartered Accountants Bangalore || |
| ||( Firm Registration Number - 011309 S). || |
| ||CA Narshimha murthy ||B R |
|PLACE : Bangalore || || |
| ||Proprietor || |
|DATE : 30/05/2018 ||M. No. 214628 || |
Annexure "A" to the Independent Auditors' Report
(Referred to in paragraph 1(f) under Report on Other Legal and RegulatoryRequirements' section of our report to the Members of Midwest Gold Limited of even date)
Report on the Internal Financial Controls Over Financial Reporting under (i) OfSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of MidwestGold Limited ("the Company") as of 31 March 2018 in conjunction with our auditof the standalone 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 maintain-inginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of inter-nalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required un-der the Companies Act 2013.
Our responsibility is to express an opinion on the internal financial controls overfi-nancial reporting of the Company based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over Fi-nancialReporting (the "Guidance Note") issued by the Institute of CharteredAc-countants of India and the Standards on Auditing prescribed under Section 143(10) ofthe Companies Act 2013 to the extent applicable to an audit of internal financialcontrols. Those Standards and the Guidance Note require that we comply with ethi-calrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was es-tablished andmaintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the ade-quacyof the internal financial controls system over financial reporting and their op-eratingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial re-portingassessing 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 assess-ment 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 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 details accurately andfairly reflect the transactions and dispositions of the assets of the compa-ny
2. provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally ac-cepted accountingprinciples and that receipts and expenditures of the com-pany are being made only inaccordance with authorizations of management and directors of the company and
3. Provide reasonable assurance regarding prevention or timely detection ofun-authorized acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.
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 polices or procedures may deteriorate.
In our opinion to the best of our information and according to the explanations giv-ento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over fi-nancialreporting were operating effectively as at 31 March 2018based on the inter-nal 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 Char-tered Accountants ofIndia.
For M/s. B R N Murthy And Associates
Chartered Accountants Bangalore
CA Narshimha murthy B R
M. No. 214628
(Firm Registration No. 011309 S)
PLACE : Bangalore
DATE : 30/05/2018
Annexure "B" to the Independent Auditors' Report
(Referred to in paragraph 2 under Report on Other Legal and RegulatoryRequirements' section of our report to the Members of Midwest Gold Limited of even date)
1. In respect of the company's fixed assets: a) The Company has maintained properrecords showing full particulars including quantitative details and situation of fixedassets. b) The Company has a program of verification to cover all the items of fixedassets in a phased manner which in our opinion is reasonable having regard to the sizeof the Company and the nature of its assets. Pursuant to the program substantial portionof fixed assets were physi-cally verified by the management during the year. According tothe in-formation and explanations given to us no material discrepancies were noticed onsuch verification. c) According to the information and explanations given to us therecords examined by us and based on the examination of the conveyance deeds provided tous we report that the title deeds comprising all the im-movable properties are heldin the name of the Company as at the bal-ance sheet date. In respect of immovableproperties of land and building that have been taken on lease and disclosed as fixedassets in the standa-lone financial statements the lease agreements are in the name ofthe Company.
2. a) The inventories have been physically verified during the year by the management.In our opinion the frequency of verification is reasonable.
(b) In our opinion and according to the information and explanation given to us theprocedures of physical verification of inventory followed by the man-agement arereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.
(c) In our opinion and according to the information and explanations giv-en to us andon the basis of our examination of the records of inventory the Company is maintainingproper records of inventory. The discrepancies noticed on physical verification ofinventory as compared to the books of account were not material and have been properlydealt with in the books of accounts.
3. According to the information and explanations given to us the Company hasnot granted unsecured loans to bodies corporate covered in the register maintained undersection 189 of the Companies Act 2013.
4. In Our opinion and according to the information and explanations given to usthe Company has complied with the provisions of section 185 and 186 of the Act in respectof grant of loans making investments and providing guarantees and securities asapplicable.
5. The Company has not accepted deposits during the year and does not have anyunclaimed deposits as at March 31 2018 and therefore the provisions of the clause 3 (v)of the Order are not applicable to the Company.
6. The maintenance of cost records has not been specified by the CentralGovernment under section 148(1) of the Companies Act 2013 for the business activitiescarried out by the Company. Thus reporting under clause 3(vi) of the order is notapplicable to the Company.
7. According to the information and explanations given to us in respect ofstatutory dues:
(a) The Company has generally been regular in depositing undisputed statutory duesincluding Provident Fund Employees' State Insurance Income Tax Sales Tax Service TaxGoods and Service Tax Value Added Tax Customs Duty Excise Duty Cess and other materialstatutory dues applicable to it with the appropriate authorities. (b) There were noundisputed amounts payable in respect of Provident Fund Employees' State InsuranceIncome Tax Sales Tax Service Tax Value Added Tax Goods and Service Tax Customs DutyExcise Duty Cess and other material statutory dues in arrears as at March 31 2018 for aperiod of more than six months from the date they became payable.
(c) There are no dues of Income Tax Sales Tax Service Tax Excise Duty and ValueAdded Tax which have not been deposited as at March 31 2018 on account of dispute.
8. The Company has not taken any loans or borrowings from financialinstitu-tions banks and government or has not issued any debentures. Hence report-ingunder clause 3 (viii) of the Order is not applicable to the Company
9. The Company has not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) or term loan and hence re-porting under clause 3(ix) of the Order is not applicable to the Company.
10. To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the company or no material fraud on the Company by its officersor employees has been noticed or reported during the year.
11. In our opinion and according to the information and explanations give to us theCompany has paid/provided for managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the Act.
12. The Company is not a Nidhi company and hence reporting under clause 3(xii) of theorder is not applicable to the company.
13. In our opinion and according to the information and explanations given to us theCompany is in compliance with Section 177 and 188 of the Companies Act 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the standalone financial statements as required by theapplicable accounting standards.
14. During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly paid convertible debentures and hence reportingunder clause 3 (xiv) of the Order is not applicable to the Company.
15. In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transactions with itsDirectors or persons connected to its directors and hence provisions of section 192 of theCompanies Act 2013 are not applicable to the Company.
16. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.
| ||For M/s. B R N Murthy And Associates |
| ||Chartered Accountants Bangalore |
| ||CA Narshimha murthy B R |
| ||Proprietor |
| ||M. No. 214628 |
| ||(Firm Registration No. 011309 S) |
|PLACE : Bangalore || |
|DATE : 30/05/2018 || |