| We have audited the accompanying Standalone Financial Statements of
RESURGERE MINES AND MINERALS INDIA LIMITED ("the Company"), which
comprise the Balance Sheet as at March 31, 2015, and the Statement of
Profit and Loss, the Cash Flow Statement for the year then ended, and a
summary of significant accounting policies and other explanatory
information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation and presentation of these standalone financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding the assets of the
Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and 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 Statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide 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
explanations given to us, the aforesaid Standalone Financial Statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India except to Note No. 9(**), 10(****), 11 (*),
14 (Note), 15(Note and **) and 17 (*, **, ***, ****), 19 (*) in notes
on account to the Financial Statements, with regard to Trade Payable,
Creditors for Capital Goods, Capital work in progress, Inventories,
Trade Receivables, Advance to suppliers and Subsidiaries, Inter -
Corporate Deposits, Mine Deposits and Interest on Inter Corporate
Deposits, where the Company does not have any confirmation and
reconciliation with the parties. Major portion of such transactions
does not have any movement since a long time and have remained
outstanding for over one year. We are unable to comment upon the
reliability of such amount and the consequential adjustments required
to be made, if any, in this regard.
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
(b) In the case of the Statement of Profit and Loss, of the Loss for
the year ended on that date.
(c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements:
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in the paragraph 3 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 best of 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 the Company so far as it appears from our examination of those
books;
c) The Standalone Balance sheet, the statement of profit and loss and
the cash flow statement dealt with by this Report are in agreement with
the books of account;
d) In our opinion, the aforesaid standalone financial statements comply
with the Accounting Standards specified under Section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules, 2014;
e) On the basis of the written representations received from the
directors as on 31 March 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31 March 2015
from being appointed as a director in terms of Section 164 (2) of the
Act; and
f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
(i) The Company has disclosed the impact of pending litigations on its
financial position in its Standalone Financial Statements except
interest thereon. The unaccounted litigations have been duly disclosed
at note no. 26 of Notes on Accounts.
(ii) The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
and as required on long-term contracts including derivative contracts.
(iii) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
Annexure to the Auditors Report
The Annexure referred to in our Independent Auditors' Report to the
members of Resurgere Mines & Minerals India Limited on the standalone
financial statements for the year ended March 31, 2015, we report that:
1. In respect of its Fixed Assets:
a. The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
b. As explained to us, all the fixed assets have been physically
verified by the management in a phased periodical manner, which in our
opinion, is reasonable having regard to the size of the Company and the
nature of its assets. As informed, no material discrepancies were
noticed on such verification.
2. In respect of Inventories:
a. The inventories have been physically verified by the management
during the year. In our Opinion, the frequency of verification is
reasonable.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
c. The Company has maintained proper records of inventory. As
explained to us, there were no material discrepancies noticed on
physical verification of inventories as compared to the book records.
3. In respect of the Loans, secured or unsecured, granted, by the
company to companies, firms or other parties covered in the register
maintained under section 189 of the Companies Act, 2013 ('the Act').
a. There is no overdue amount of loan granted to said companies.
4. In our opinion and according to the information and explanations
given to us, there exists an adequate internal control system
commensurate with the size of the company and the nature of its
business with regard to purchase of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, no major weakness has been noticed in the internal control
system in respect of these areas. During the course of our audit, we
have not observed any continuing failure to correct major weakness in
internal control system of the company.
5. According to the information and explanations given to us, the
company has not accepted any deposits from the public.
6. The Central Government has prescribed the maintenance of cost
records under sub-section (1) of section 148 of the Companies Act 2013
for the activities carried on by the company but the company does not
fall under the prescribed norms for maintenance of cost records.
7. In respect of statutory dues:
a) According to the records of the Company, the undisputed statuary
dues including Provident Fund, Sales Tax, Wealth Tax, Services Tax,
Customs Duty, Excise Duty, Cess and Income tax have generally not been
regularly deposited with the appropriate authorities.
The details of undisputed amount of statutory dues not paid for more
than six months as on the close of financial year are us under:
Nature of tax Amount of demand Assessment Year/ Period for
(Rs in Lacs) Financial Year which due
Income Tax 378.50 AY 08-09 2007-08
1022.16 AY 09-10 2008-09
1001.59 AY 10-11 2009-10
47.67 AY 11-12 2010-11
TDS 9.37 AY 13-14 2012-13
Service Tax 17.92 FY 11-12 2011-12
6.82 FY 14-15 2014-15
Sales Tax 0.72 FY 11-12 2011-12
5.56 FY 12-13 2012-13
Provident Fund 1.89 FY 13-14 2013-14
b) The details of all disputed statutory dues is as under:
Nature of tax Amount of demand Assessment
(Rs in Lacs) Year
Income Tax 148.14 AY 08-09
1923.23 AY 09-10
26.50 AY 10-11
20.68 AY 11-12
Nature of tax Forum where Current
dispute is pending status
Income Tax CIT(A) & ITAT In process
CIT(A) & ITAT In process
CIT(A) In process
CIT(A) In process
c) According to the information and explanations given to us the
amounts which were required to be transferred to the investor education
and protection fund in accordance with the relevant provisions of the
Companies Act and rules there under has been transferred to such fund
within time.
8. The Company has no accumulated losses at the end of the financial
year. However, it has incurred losses in the current financial year
amounting to is Rs. 6438.03 lacs and in immediately preceding financial
year amounting to Rs. 5884.33 lacs
9. The Company has defaulted in repayment of its dues to banks and
financial institutions. Details of default are as follows:
Sr.No. Name of Institution Default in Repayment of
Principal Amount Interest Amount
(Rs in Lacs) (Rs in Lacs)
1. Term Loan from 826.24 591.66
Union Bank of India
2 Working Capital Loan from 10776.58 7104.21
State Bank of India,
Union Bank of India,
Bank of India, Indusland Bank
and Barclays Bank
Sr.No. Name of Institution For the Date of
month Payment
1. Term Loan from May,2011 Not Yet Paid
Union Bank of India to
March, 2014
2 Working Capital Loan from Jan, 2011 Not Yet Paid
State Bank of India, to
Union Bank of India, March, 2014
Bank of India, Indusland Bank
and Barclays Bank
10. In our opinion and according to the information and explanations
given to us and based on the documents and records produced to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
11. The Company has not taken any term loans during the year.
12. On the Basis of our examination and according to the information
and explanation given to us, no material fraud, on or by the company,
has been noticed or reported during the year.
For Ranjana Vandana & Co.
Chartered Accountants
Firm Registration No.: 008961C
CA Ranjana Rani
Partner
Membership No. 077985
Place: Mumbai
Date: 29th May, 2015
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