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Resurgere Mines & Minerals India Ltd.

BSE: 533017 Sector: Metals & Mining
NSE: RMMIL ISIN Code: INE774I01031
BSE 00:00 | 04 Mar Resurgere Mines & Minerals India Ltd
NSE 05:30 | 01 Jan Resurgere Mines & Minerals India Ltd
OPEN 1.65
PREVIOUS CLOSE 1.68
VOLUME 256794
52-Week high 1.68
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 33
Buy Price 1.68
Buy Qty 4725.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1.65
CLOSE 1.68
VOLUME 256794
52-Week high 1.68
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 33
Buy Price 1.68
Buy Qty 4725.00
Sell Price 0.00
Sell Qty 0.00

Resurgere Mines & Minerals India Ltd. (RMMIL) - Auditors Report

Company auditors report

Independent Auditors' Report

To the Members of RESURGERE MINES AND MINERALS INDIA LIMITED

Report on the Financial Statements

We have audited the accompanying standalone financial statements of RESURGERE MINES ANDMINERALS INDIA LIMITED ("the Company") which comprise the Balance Sheet as atMarch 31 2016 and the Statement of Profit and Loss the Cash Flow Statement for the yearthen ended and a summary of significant accounting policies and other explanatoryinformation.

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 preparationand presentation of these standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; 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.

Auditor's Responsibility

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 accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions 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 andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. 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 financial statements.

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

Qualified Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid stand alone 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 except to Note No. 9(**) 10(****) 11(*) 14 (Note) 15(Note and **)17 (* ** *** ****) 19 (*) 35 and 42 in notes onaccount to the Financial Statements with regard to Trade Payable Creditors for CapitalGoods Capital work in progress Inventories Trade Receivables Inter – CorporateDeposits Mine Deposits Interest on Inter Corporate Deposits Advance to suppliers andSubsidiaries where the Company does not have any confirmation and reconciliation with theparties. Major portion of such transactions does not have any movement since a long timeand have remained outstanding for over one year. We are unable to comment upon thereliability of such amount and the consequential adjustments required to be made if anyin this regard.

(a) In the case of the Balance Sheet of the state of affairs of the Company as atMarch 31 2016;

(b) In the case of the Profit and Loss Account of the Loss for the year ended on thatdate.

(c) In the case of the Cash Flow Statement of the cash flows for the year ended onthat date.

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 of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure A a statement on the matters specified in the paragraph3 and 4 of the Order to the extent applicable.

2. As required 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 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 and the cash flow statementdealt with by 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 the written representations received from the directors as on 31March 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2016 from being appointed as a director in terms of Section164 (2) of the 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 B' and

g) With respect to other matters to be included in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to thebest of our information and according to the explanations given to us:

(i) The Company has disclosed the impact of pending litigations on its financialposition in its financial statements except interest thereon. The unaccounted litigationshave been duly disclosed at note no. 26 of Notes on Accounts.

(ii) The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any and as required on long-term contractsincluding derivative contracts.

(iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For Ranjana Vandana & Co.
Chartered Accountants
Firm Registration No.: 008961C
CA Ranjana Rani
Partner
Membership No. 077985
Place: Mumbai
Date: 27th May 2016

Annexure A to the Auditor's Report

The Annexure referred to in our Independent Auditors' Report to the members ofResurgere Mines & Minerals India Limited on the standalone financial statements forthe year ended March 31 2016 we report that:

1. In respect of its Fixed Assets:

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

b. The Fixed Assets have been physically verified by the management in a phased mannerdesigned to cover all the items over a period of three years which in our opinion isreasonable having regard to the size of the company and nature of its business. Pursuantto the program a portion of the fixed asset has been physically verified by themanagement during the year and no material discrepancies between the books records and thephysical fixed assets have been noticed.

c. According to the information and explanation given to us and on the basis of ourexamination of records of the company no immovable properties are held in the name of thecompany.

2. The inventories have been physically verified by the management during the year. Asexplained to us there was no material discrepancies noticed on physical verification ofinventories as compared to the book records.

3. In respect of the Loans secured or unsecured granted by the company to companiesfirms or other parties covered in the register maintained under section 189 of theCompanies Act 2013 (‘the Act') there is no overdue amount of loan granted to saidcompanies.

4. In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and I86 of the Companies Act 2013with respect to loans and investments made.

5. According to the information and explanations given to us the company has notaccepted any deposits from the public.

6. The Central Government has prescribed the maintenance of cost records undersub-section (1) of section 148 of the Companies Act 2013 for the activities carried on bythe company but the company does not fall under the prescribed norms for maintenance ofcost records.

7. In respect of statutory dues:

a) According to the records of the Company the undisputed statutory dues includingProvident Fund Sales Tax Services Tax Customs Duty Excise Duty Cess and Income taxhave generally not been regularly deposited with the appropriate authorities.

The details of undisputed amount of statutory dues not paid for more than six months ason the close of financial year are us under:

Nature of tax Amount of demand (Rs in Lacs) Assessment Year/ Financial Year Period for which due
Income Tax 378.44 AY 08-09 2007-08
1022.16 AY 09-10 2008-09
1001.59 AY 10-11 2009-10
40.72 AY 11-12 2010-11
TDS 9.37 AY 13-14 2012-13
Service Tax 9.92 FY 11-12 2011-12
6.54 FY 14-15 2014-15
Sales Tax 0.72 FY 11-12 2011-12
5.56 FY 12-13 2012-13
0.69 FY 15-16 2015-16

b) The details of all disputed statutory dues is as under:

Nature of tax Amount of demand Assessment Forum where Current
(Rs in Lacs) Year dispute is pending status
Income Tax 148.20 AY 08-09 CIT(A) & ITAT In process
1923.23 AY 09-10 CIT(A) & ITAT In process
26.50 AY 10-11 CIT(A) In process
20.68 AY 11-12 CIT(A) In process

c) According to the information and explanations given to us the amounts which wererequired to be transferred to the investor education and protection fund in accordancewith the relevant provisions of the Companies Act and rules there under has beentransferred to such fund within time.

8. The Company has defaulted in repayment of its dues to banks and financialinstitutions. Details of default are as follows:

. Name of Institution Default in Repayment of
Principal Amount Interest Amount For the month Date of Payment
(Rs in Lacs) (Rs in Lacs)
1. Term Loan from Union Bank of India 826.24 799.39 May2011 to March 2016 Not Yet Paid
2 Working Capital Loan from State Bank of India Union Bank of India Bank of India Indusland Bank and Barclays Bank 10776.58 9554.43 Jan 2011 to March 2016 Not Yet Paid

9. The company did not raise any money by way of initial public offer or further publicoffer (including debt instruments) and term Loans. Accordingly the provisions of clause 3(ix) of the Order are not applicable to the Company.

10. On the Basis of our examination and according to the information and explanationgiven to us no material fraud on or by the company has been noticed or reported duringthe year.

11. According to the information and explanations given to us and on the basis of ourexamination of records of the company the company has not paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Companies Act.

12. In our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause 4 (xii) of the Order are not applicable to the Company.

13. According to the information and explanations given to us all transactions with therelated parties are in compliance with section 177 and 188 of Companies Act 2013 and thedetails have been disclosed in the Financial Statements as required by the applicableaccounting standards.

14. According to the information and explanations given to us the company has not madeany preferential allotment or private placement of shares or fully or partly convertibledebentures during the year under review.

15. According to the information and explanations given to us the company has notentered into any non-cash transactions with directors or persons connected with him.Accordingly the provisions of clause 3 (xv) of the Order is not applicable to theCompany.

16. The company is not required to be registered under section 45 IA of the ReserveBank of India Act 1934.

For Ranjana Vandana & Co.
Chartered Accountants
Firm Registration No.: 008961C
CA Ranjana Rani
Partner
Membership No. 077985
Place: Mumbai
Date: 27th May 2016

Annexure B to the Independent Auditor's Report of even date on the standalone financialstatements of Resurgere Mines & Minerals India Limited

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 ResurgereMines & Minerals India Limited ("the Company") as of March 31 2016 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Auditors' 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") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively 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 judgement 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 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 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 authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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 the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Ranjana Vandana & Co.
Chartered Accountants
Firm Registration No.: 008961C
CA Ranjana Rani
Partner
Membership No. 077985
Place: Mumbai
Date: 27th May 2016