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Midwest Gold Ltd.

BSE: 526570 Sector: Others
NSE: N.A. ISIN Code: INE519N01014
BSE 00:00 | 02 Feb 33.00 1.45
(4.60%)
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NSE 05:30 | 01 Jan Midwest Gold Ltd
OPEN 33.00
PREVIOUS CLOSE 31.55
VOLUME 100
52-Week high 33.20
52-Week low 28.00
P/E
Mkt Cap.(Rs cr) 11
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 33.00
CLOSE 31.55
VOLUME 100
52-Week high 33.20
52-Week low 28.00
P/E
Mkt Cap.(Rs cr) 11
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Midwest Gold Ltd. (MIDWESTGOLD) - Auditors Report

Company auditors report

To the Members of

MIDWEST GOLD LIMITED

Report on the audit of the financial statements

Opinion

We have audited the financial statements of MIDWEST GOLD LIMITED (the ‘Company')which comprise the balance sheet as at 31 March 2022 the statement of profit and loss(including Other Comprehensive income) the statement of changes in equity and thestatement of cash flows for the year then ended and notes to the financial statementsincluding a summary of the significant accounting policies and other explanatoryinformation.

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 theCompanies2013 (‘the Act")in the manner so required and give a true and fairview in conformity with the Indian Accounting Standards prescribed under Section 133 ofthe Act read with the Companies (Indian Accounting Standard) Rule 2015 as amended(‘Ind AS') and the other accounting principles generally accepted in India of thestate of affairs of the Company as at 31 March 2022 and its profit total comprehensiveincome changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the financial statements in accordance with the Standards onAuditing (SAs) specified under section 143(10) of the Companies Act 2013. Ourresponsibilities under those Standards are further described in the auditor'sresponsibilities for the audit of the financial statements section of our report.

We are independent of the Company in accordance with the Code of Ethics issued by theInstitute of Chartered Accountants of India (ICAI) together with the independentrequirements that are relevant to our audit of the financial statements under theprovisions of the Companies Act 2013 and the Rules made thereunder and we have fulfilledour other ethical responsibilities in accordance with these requirements and the ICAI'sCode of Ethics.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.

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.

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

The Company's Board of Directors is responsible for the preparation of otherinformation. The other information comprises the information included in the board'sreport including annexures to boards report and shareholder's information but does notinclude 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 inconsistent with the financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated.

lf 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 Companies Act 2013 (the ‘Act') with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance including other comprehensive income cash flows and changes inequity of the Company in accordance with Ind AS and the other accounting principlesgenerally accepted in India.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments 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 ofthe financial statements that give a true and fair view and are free from materialmisstatement 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 cease operations or has no realisticalternative but to do so.

The Board of Directors of the Company are responsible for overseeing the company'sfinancial reporting process.

Auditor's responsibility for the audit of the Financial statements

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 financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.

? Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theCompanies Act 2013 we are also responsible for expressing our opinion on whether thecompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

? Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

? 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 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 financial statementsincluding the disclosures and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.

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 Section143 (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 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 statement of changes in equity and the statement of cash flows dealt with bythis report are in agreement with the books of account;

(d) in our opinion the aforesaid financial statements comply with the IndianAccounting Standards notified under Section 133 of the Act read with Companies (IndianAccounting Standards) Rules 2015 as amended;

(e) on the basis of the written representations received from the directors as on 31stMarch 2022 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2022 from being appointed as director in terms of Section164(2) of the Act; and (f) with respect to the adequacy of the internal financial controlsover the financial reporting of the Company and the operating effectiveness of suchcontrols refer our separate report in Annexure "A". Our report expresses anunmodified opinion on the adequacy and operating effectiveness of the company's internalfinancial controls over financial reporting.

(g) ln our opinion and to the best of our information and according to the explanationsgiven to us the company has not paid any remuneration to its directors during the yearand accordingly the provisions of section 197 of the Act are not applicable.

(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 in our opinionand to the best of our information and according to the explanations given to us:

i. the company has disclosed the impact of pending litigation on its financial positionin its standalone financial statements.

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. (a) The Management has represented that to the best of its knowledge and beliefother than as disclosed in the notes to the financial statements no funds have beenadvanced or loaned or invested (either from borrowed funds or share premium or any othersources or kind of funds) by the company to or in any other person or entity includingforeign entity ("Intermediaries") with the understanding whether recorded inwriting or otherwise that the Intermediary shall whether directly or indirectly lend orinvest in other persons or entities identified in any manner whatsoever by or on behalf ofthe company ("Ultimate Beneficiaries") or provide any guarantee security or thelike on behalf of the Ultimate Beneficiaries;

(b) The Management has represented that to the best of its knowledge and beliefother than as disclosed in the notes to the financial statements no funds have beenreceived by the company from any person or entity including foreign entity ("FundingParties") with the understanding whether recorded in writing or otherwise that thecompany shall whether directly or indirectly lend or invest in other persons orentities identified in any manner whatsoever by or on behalf of the Funding Party("Ultimate Beneficiaries") or provide any guarantee security or the like onbehalf of the Ultimate Beneficiaries; and

(c) Based on our audit procedures that we have been considered reasonable andappropriate in the circumstances nothing has come to our notice that has caused us tobelieve that the representations provided by the management under sub-clause (a) and (b)above contain any material misstatement.

(d) The Company has not declared any dividend during the year.

2) As required by the Companies (Auditor's Report) Order 2020 (the ‘Order')issued by the Central Government of India in terms of Section 143(11) of the Act we givein Annexure ‘B' to this Report a statement on the matters specified in Para 3 and 4of the said Order to the extent applicable.

For B R N MURTHY AND ASSOCIATES
CHARTERED ACCOUNTANTS
(Firm Registration No. 011309 S)
CA.B.R. N. MURTHY
PROPRIETOR
M. No. 214628
UDIN: 22214628AJWPDF1942
PLACE : HYDERABAD
DATE: 30/05/2022

Annexure "A" to the Independent Auditor's 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 clause (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 at March 31 2022 in conjunction with our auditof the 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'). 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.

Auditors' responsibility

Our responsibility is to express an opinion on the internal financial controls overfinancial reporting of the Company based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") issued by the Institute of Chartered Accountantsof India and the standards on auditing prescribed under Section 143 (10) of the CompaniesAct 2013 to the extent applicable to an audit of internal financial controls and bothissued by the Institute of chartered Accountants of India. Those standards and theguidance note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting were established and maintained and if such controls operatedeffectively in all material respects.

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 in 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 control 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 (i) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (ii) 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 (iii) 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 of 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 and according to the information and explanations given to us theCompany has in all material respects an adequate internal financial control system overfinancial reporting and such internal financial controls over financial reporting wereoperating effectively as at March 31 2022 based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India.

For B R N MURTHY AND ASSOCIATES
CHARTERED ACCOUNTANTS
(Firm Registration No. 011309 S)
CA.B.R. N. MURTHY
PROPRIETOR
M. No. 214628
UDIN: 22214628AJWPDF1942
PLACE : HYDERABAD
DATE: 30/05/2022

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 evendate.

Based on the audit procedures performed for the purpose of reporting a true and fairview on the financial statements of the Company and taking into consideration theinformation and explanations given to us and the books of account and other recordsexamined by us in the normal course of audit we report that:

i) In respect of company's Property Plant and Equipment and Intangible Assets:

a) A) The Company has maintained proper records showing full particulars includingquantitative details and situation of Property Plant and Equipment and relevant detailsof right-of-use of assets.

B) The Company has no intangible assets. Accordingly the provisions of clause3(i)(a)(B) of the Order are not applicable.

b) The Property Plant and Equipment have been physically verified by the managementduring the year and according to the information and explanation given no materialdiscrepancies were noticed on such verification. In our opinion the frequency ofverification of the Property Plant and Equipment is reasonable having regard to the sizeof the Company and the nature of its assets.

c) According to the information and explanations given to us the records examined byus and based on the examination of the conveyance deeds provided to us we report thatthe title deeds comprising all the immovable properties are held in the name of theCompany as at the balance sheet date.

d) The Company has not revalued any of its Property Plant and Equipment during theyear. Accordingly reporting under paragraph3(i)(d) of the Order is not applicable

e) No proceedings have been initiated during the year or are pending against theCompany as at March 31 2022 for holding any Benami property under the Benami Transactions(Prohibition) Act 1988 (as amended in 2016) and rules made thereunder.

ii) a) In our opinion physical verification of inventory has been conducted atreasonable intervals by the management and the coverage and procedure of such verificationby the management is appropriate No material discrepancies were noticed on suchverification.

b) According to the information and explanations given to us and the records examinedby us the Company has not been sanctioned any working capital limits aggregating to morethan five crores by banks or financial institutions on the basis of security of currentassets at any point of time of the year. Hence reporting under paragraph 3(ii)(b) of theOrder does not arise.

iii) a) During the year the Company has not made any investments in or granted anyloans or advances in the nature of Loans secured or unsecured to companies firmsLimited Liability Partnerships (LLPs) or other parties. The Company has provided guaranteeon additional credit facility of Rs. 162000000/- availed by Midwest Granite PrivateLimited and the balance of corporate guarantee provided as at end of financial year stoodat Rs. 33525000/-.

b) The Company has provided guarantee and terms and conditions of the grant are notprejudicial to the Company's interest.

c) The Company has not made any loans and advances during the year and hence thisclause is not applicable.

d) The Company has not made any loans and advances during the year and hence thisclause is not applicable.

e) The Company has not made any loans and advances during the year and hence thisclause is not applicable.

f) The Company has not made any loans and advances during the year and hence thisclause is not applicable.

iv) The company has not made any loans and investments on which provisions of section185 and 186 of the Companies Act 2013 are applicable. However The Company has providedcorporate guarantee within the meaning of section 185 & 186 of the Companies Act 2013as mentioned in clause (iii)(a) above.

v) The Company has not accepted any deposits within the meaning of Sections 73 to 76 ofthe Act and the Companies (Acceptance of Deposits) Rules 2014 (as amended).

Accordingly the provisions of clause 3(v) of the Order are not applicable.

vi) To the best of our knowledge and belief the Central Government has not specifiedmaintenance of cost records under sub-section (1) of Section 148 of the Act in respect ofCompany's products/services. Accordingly the provisions of clause 3(vi) of the Order arenot applicable.

vii) According to the information and explanations given to us in respect of statutorydues:

a) The Company is generally regular in depositing undisputed statutory dues includingprovident fund employees' state insurance income-tax sales-tax service tax Goods andServices tax duty of customs duty of excise value added tax cess and other materialstatutory dues as applicable with the appropriate authorities.

b) No undisputed amounts payable in respect of Provident fund Employees StateInsurance Income tax Sales tax Service tax Value Added Tax Goods and Service taxCustoms duty Excise duty Cess and other material statutory dues in arrears as at 31stMarch 2022 for a period of more than six months from the date they become payable.

viii) There were no transactions relating to previously unrecorded income that havebeen surrendered or disclosed as income during the year in the tax assessments under theIncome Tax Act 1961.

ix) a) According to the information and explanations given to us the company has notdefaulted in repayment of loans or other borrowings or in the payment of interest thereonto any lender hence reporting under paragraph 3(ix)(a) of the Order does not arise.

b) In our opinion and according to the information and explanations given to us TheCompany has not been declared willful defaulter by any bank or financial institution orgovernment or any government authority.

c) In our opinion and according to the information and explanations given to usthecompany has applied term loans for the purpose for which the loans were obtained.

d) In our opinion and according to the information and explanations given to us thefunds raised on short term basis have not been utilized for long term purposes.

e) As the Company has no subsidiaries associates or joint ventures the clause(ix)(e)is not applicable.

f) As the Company has no subsidiaries associates or joint ventures the clause(ix)(f)is not applicable.

x) a) In our opinion and according to the information and explanations given to us theCompany did not raise any money by way of initial public offer or further public offer(including debt instruments) during the year and hence reporting under this paragraph3(x)(a) of the order is not applicable.

b) In our opinion and according to the information and explanations given to us theCompany has not made any preferential allotment or private placement of shares orconvertible debentures (fully partially or optionally convertible) during the year.

Accordingly paragraph 3 (x) (b) of the Order is not applicable.

xi) a) 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 any person hasbeen noticed or reported during the year. Accordingly paragraph 3 (xi) (a) of the Orderis not applicable.

b) Since there is no fraud by the Company or no material fraud on the Company by anyperson has been noticed or reported during the year paragraph 3 (xi) (b) of the Order isnot applicable.

c) To the best of our knowledge and according to the information and explanations givento us no whistle-blower complaints have been received by the Company during the year.

xii) In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

xiii) According to the information and explanations 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 where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableIndian accounting standards.

xiv) In our opinion and according to the information and explanations given to us theinternal audit provisions are applicable to the Company.

xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with its directors or persons connected with its directors. Hence provisionsof section 192 of Companies Act 2013 are not applicable to the Company.

xvi) a) In our opinion the Company is not required to be registered under section45-IA of the Reserve Bank of India Act 1934. Hence reporting under clause 3(xvi)(a) and(b) of the Order is not applicable.

b) In our opinion the company has not conducted any Non-Banking Financial or HousingFinance activities without a valid Certificate of Registration (CoR) from the Reserve Bankof India as per the Reserve Bank of India Act 1934; c) In our opinion the company is nota core investment company (as defined in the Core Investment Companies (Reserve Bank)Directions 2016) and accordingly reporting under clause 3(xvi)(c) of the Order is notapplicable.

d) In our opinion the Group has no CIC Hence reporting under this clause3(xvi)(d)will not arise.

xvii) The Company has incurred cash loss of Rs.18982729/- during the financial yearcovered by ouraudit and incurred cash loss of Rs.14755603/- during the immediatelypreceding financial year.

xviii) There has been no resignation of the statutory auditors of the Company duringthe year.

xix) On the basis of the financial ratios ageing and expected dates of realisation offinancial assets and payment of financial liabilities other information accompanying thefinancial statements and our knowledge of the Board of Directors and Management plans andbased on our examination of the evidence supporting the assumptions nothing has come toour attention which causes us to believe that any material uncertainty exists as on thedate of the audit report indicating that Company is not capable of meeting its liabilitiesexisting at the date of balance sheet as and when they fall due within a period of oneyear from the balance sheet date. We however state that this is not an assurance as tothe future viability of the Company. We further state that our reporting is based on thefacts up to the date of the audit report and we neither give any guarantee nor anyassurance that all liabilities falling due within a period of one year from the balancesheet date will get discharged by the Company as and when they fall due.

xx) a) Since the provisions of Corporate Social Responsibility (CSR) of Companies Act2013 are notapplicable to the company the reporting under clause 3(xx)(a) and 3(xx)(b) ofthe Order is not applicable for the year.

xxi) The company has not made investments in subsidiary company. Therefore the companyisnot required to prepare consolidated financial statement. Therefore the provisions ofclause (xxi) of paragraph 3 of the order are not applicable to the company.

For B R N MURTHY AND ASSOCIATES
CHARTERED ACCOUNTANTS
(Firm Registration No. 011309 S)
CA.B.R. N. MURTHY
PROPRIETOR
M. No. 214628
UDIN: 22214628AJWPDF1942
PLACE : HYDERABAD
DATE: 30/05/2022

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