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Saral Mining Ltd.

BSE: 532116 Sector: Others
NSE: N.A. ISIN Code: INE490B01013
BSE 00:00 | 04 Mar Saral Mining Ltd
NSE 05:30 | 01 Jan Saral Mining Ltd
OPEN 1.18
PREVIOUS CLOSE 1.13
VOLUME 15052
52-Week high 1.23
52-Week low 0.00
P/E 12.56
Mkt Cap.(Rs cr) 5
Buy Price 0.00
Buy Qty 0.00
Sell Price 1.17
Sell Qty 198.00
OPEN 1.18
CLOSE 1.13
VOLUME 15052
52-Week high 1.23
52-Week low 0.00
P/E 12.56
Mkt Cap.(Rs cr) 5
Buy Price 0.00
Buy Qty 0.00
Sell Price 1.17
Sell Qty 198.00

Saral Mining Ltd. (SARALMINING) - Auditors Report

Company auditors report

To Board of Directors of SARAL MINING LIMITED

(FORMERLY KNOWN AS XO INFOTECH LIMITED)

We have audited the accompanying standalone annual financial results of SARAL MININGLIMITED. (here in after referred to as the "Company") for the year ended 31stMarch 2020 attached herewith being submitted by the company pursuant to the requirementsof Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements)Regulations 2015 as amended.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matter described in the basis for QualifiedOpinion paragraph above the aforesaid standalone financial statements give theinformation required by the Act in the manner so required and give true and fair view inconformity with the accouting principles generally accepted in India of the state ofaffairs of the Company as on 31st March2020 and its Profit / loss and its Cash Flows forthe year ended on that date

(i) are presented in accordance with the requirements of Regulation 33 of the SEBI(Listing Obligations and Disclosure Requirements) Regulations 2015 in this regard; and

(ii) give a true and fair view in conformity with the recognition and measurementprinciples laid down in the applicable Indian accounting standards and other accountingprinciples generally accepted in India of the net profit and other comprehensive incomeand other financial information for the year ended 31 March 2020.

Basis for Opinion

We conducted our audit in accordance with the standards on auditing ("SAs")specified under section 143 (10) of the Companies Act 2013 ("the Act"). Ourresponsibilities under those SAs are further described in the Auditor's Responsibilitiesfor the Audit of the Standalone Financial Results Section of our report. We areindependent of the company in accordance with the Code of Ethics issued by the Instituteof Chartered Accountants of India together with the ethical requirements that are relevantto our audit of the financial result under the provision of the Act and the Rules thereunder and we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for our opinion on the standalone annualfinancial results.

1. The Companies Investments are carried in Balance Sheet at Rs. 2535.57/- (In Lakhs)(As at 31st March 2020) . The Investments showing as on Balance Sheet date March 2020were suspended on Recognised Stock Exchange so accordingly Fair Value of Investmentscould not be measured and management has stated Investments at Cost.

2. Included in Unsecured Loan shown on the Balance sheet is an amount of Rs.2868.62(InLakhs) Deposits (under section 72 to 76A and Companies Acceptance of Deposits Rules2014 ) accepted from public amounting to Rs.317(In Lakhs)

Management's and Board of Directors' Responsibilities for the Standalone AnnualFinancial Results

These standalone annual financial results have been prepared on the basis of thestandalone annual financial statements.

The Company's Management and Board of Directors are responsible for the preparation ofthese standalone annual financial results that give a true and fair view of the netprofit/loss and other comprehensive income and other financial information in accordancewith the Indian Accounting Standards prescribed under Section 133 of the Act and otheraccounting principles generally accepted in India and in compliance with Regulation 33 ofthe Listing Regulations. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the standalone annual financial results that give a true and fair view andare free from material misstatement whether due to fraud or error.

In preparing the standalone annual financial results the Management and the Board ofDirectors are responsible for assessing the Company's ability to continue as a goingconcern disclosing as applicable matters related to going concern and using the goingconcern basis of accounting unless the Board of Directors either intends to liquidate theCompany or to cease operations or has no realistic alternative but to do so.

The Board of Directors is also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the Standalone Financial Results

Our objectives are to obtain reasonable assurance about whether the standalone annualfinancial results as a whole are free from material misstatement whether due to fraud orerror and to issue an auditor's report that includes our opinion. Reasonable assurance isa high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone annual financial results.

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 standalone annualfinancial results whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under Section 143(3)(i)of the Act we are also responsible for expressing our opinion through a separate reporton the complete set of financial statements on whether the Company has adequate internalfinancial controls with reference to financial statements in place and the operatingeffectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures in the standalone financial results madeby the Board of Directors.

• Conclude on the appropriateness of the Management's and Board of Directors ' useof the going concern basis of accounting and based on the audit evidence obtainedwhether a material uncertainty exists related to events or conditions that may castsignificant doubt on the appropriateness of this assumption. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor's report tothe related disclosures in the standalone annual financial results or if such disclosuresare inadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditions maycause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of the standaloneannual financial results including the disclosures and whether the standalone annualfinancial results represent the underlying transactions and events in a manner thatachieves 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.

Other Matters

The standalone annual financial results include the results for quarter ended 31 March2020 being the balancing figure between the audited figures in respect of the fullfinancial year and the published unaudited year to date figures up to the third quarter ofthe current financial year which were subject to limited review by us.

Report on Other Legal and Regulatory Requirements

a) 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.

b) As required by Section 143 (3) of the Act we report that:

We have sought and obtained all the information and explanations which to the best ofour knowledge and belief were necessary for the purposes of our audit.

Except for the possible effects of the matter described in the basis for QualifiedOpinion paragraph above in our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination of those books; thebalance sheet the statement of profit and loss and the cash flow statement dealt with bythis Report are in agreement with the books of account; in our opinion the aforesaidstandalone financial statements comply with the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014; on thebasis of the written representations received from the directors as on 31 March 2020 takenon record by the Board of Directors none of the directors is disqualified as on 31 March2020 from being appointed as a director in terms of Section 164 (2) of the Act;

(f) In our opinion with respect to internal financial control the said para isapplicable to Company & hereby attached as Annexure - B.

(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 opinion and to the best of our information andaccording to the explanations given to us:

i. The Company does not have any pending litigation which would impact 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 are required to be transferred to the investoreducation and protection fund by the company.

For Bhagat & Co.

Chartered Accountants FRN: 127250W

Sd/-

CA Sandeep H Mulchandani

PARTNER

M.NO. 144241

UDIN: 20144241AAAAAN2325

Place: Ahmeadbad

Date: 31.07.2020

ANNEXURE "A" TO THE AUDITORS' REPORT

THE ANNEXURE REFERRED TO IN PARAGRAPH 1 OF THE OUR REPORT OF EVEN DATE TO THE MEMBERSOF M/S SARAL

MINING LIMITED ON THE ACCOUNTS OF THE COMPANY FOR THE YEAR ENDED 31st MARCH2020.

The Annexure referred to in Independent Auditors' Report to the members of the Companyon the standalone financial statements for the year ended 31st March 2020 we report that:

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

(b) The Company has a regular programme of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner over a period of three years. Inaccordance with this programme certain fixed assets were verified during the year and nomaterial discrepancies were noticed on such verification. In our opinion this periodicityof physical verification is reasonable having regard to the size of the Company and thenature of its assets.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company. (This clause is not applicable to company as there areno immovable property or any other property.)

(ii) In Respect of Inventories :

(a) The Inventories have been physically verified during the year by the management. Inour opinion the frequency of verification is reasonable.

(b) The Company has maintained proper records of inventories. As per the informationand explanation given to us in the form of management Representations no materialdiscrepancies were noticed on physical verification as on Balance Sheet Date. Stock as on31/03/2020 is Rs. 15939414.43.

(iii) The Company has granted loans to bodies corporate covered in the registermaintained under section 189 of the Companies Act 2013 ('the Act').

(iv) In our opinion and according to the information and explanations given to us theCompany has not complied with the provisions of section 185 and 186 of the Act withrespect to the loans and investments made. We are unable to obtain the Board Resolutionsto verify the same.

(v) The Company has accepted deposits from the public. Therefore The Company has notcomplied the provisions of sections 73 to 76 or any other relevant provisions of theCompanies Act The Directions issued by the Reserve Bank of India

(vi) The Central Government has not prescribed the maintenance of cost records undersection 148(1) of the Act for any of the services rendered by the Company.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/accrued in the book ofaccount in respect of undisputed statutory dues including provident fund income-taxsales tax value added tax duty of customs service tax cess and other materialstatutory dues have been regularly deposited during the year by the company with theappropriate authorities. As explained to us the Company did not have any dues on accountof employees' state insurance and duty of excise.

(b) According to the information and explanations given to us following outstandingdemands as per Income Tax Act 1961 were in arrears as at March 31st 2020 for a period ofmore than six months from the date they became payable.

Sr. No. Section AY Date on which Demand Raised Outstanding Demand as on 31/03/2020
1 143(1) 2007-08 16/03/2009 174123
2 147 2010-11 26/12/2017 203910

(vii) The Company has not received loans or borrowings from any financial institutionbanks government or debenture holders during the year. Accordingly paragraph 3(vii) ofthe Order is not applicable.

(viii) The Company has not raised any fund during current Financial year. Accordinglyparagraph 3(viii) of the Order is not applicable.

(ix) According to the information and explanations given to us no material fraud bythe Company or on the Company by its officers or employees has been noticed or reportedduring the course of our audit.

(x) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

(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 has been entered into transactions with therelated parties as specified in sections 177 and 188 of the Act. But we have not receivedany proper Explanation / Documents to Verify and Quantify the same.

(xiv) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year. Accordingly the provisions of clause 3(xiv) of the order are not applicable tothe company. hence not commented upon.

(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 directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For Bhagat & Co.

Chartered Accountants FRN: 127250W

Sd/-

CA Sandeep H Mulchandani

PARTNER

M.NO. 144241

UDIN: 20144241AAAAAN2325

Place: Ahmeadbad Date: 31.07.2020

ANNEXURE "B" TO THE AUDITORS' REPORT

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 SARALMINING LIMITED ("the Company") as of March 31 2020 in conjunction with ouraudit of the financial statements of the Company for the year 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 responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to 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.

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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial 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 2018 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 Bhagat & Co.

Chartered Accountants FRN: 127250W

Sd/-

CA Sandeep H Mulchandani

PARTNER

M.NO. 144241

UDIN: 20144241AAAAAN2325

Place: Ahmeadbad

Date: 31.07.2020

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