To, The Members of MADHAV COPPER LIMITED Bhavnagar.
Report on the Ind AS Financial Statements
Opinion
We have audited the accompanying Ind AS financial statements of Madhav Copper Limited
("the Company"), which comprise the Balance Sheet as at 31st March, 2023, and
the Statement of Profit and Loss (including other comprehensive income), the Cash Flow
Statement and the Statement of Changes in Equity for the year then ended, and a summary of
the significant accounting policies and other explanatory information (herein after
referred to as "Ind AS financial statements").
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 Companies Act, 2013 (“ the Act”) in the manner so required and give a
true and fair view in conformity with the Indian Accounting Standards prescribed under
section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015,
as amended, (“Ind AS”) and other accounting principles generally accepted in
India, of the state of affairs of the Company as at March 31, 2023 and its Loss (including
Other Comprehensive profit), changes in equity and its cash flows for the year ended on
that date.
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"). Our
responsibilities under those SAs are further described in the Auditors Responsibilities
for the Audit of the Financial Results section of our report. We are independent of the
Company, in accordance with the Code of Ethics issued by the Institute of Chartered
Accountants of India together with the ethical requirements that are relevant to our audit
of the financial results under the provisions of the Act, and the Rules there under, and
we have fulfilled our other ethical responsibilities in accordance with these requirements
and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion.
Responsibilities of management and those charged with Governance for the Ind AS
Financial Statements
The Companys 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 of
these Ind AS financial statements that give a true and fair view of the state of affairs
(financial position), profit or loss (financial performance including other comprehensive
income), cash flows and changes in equity of the Company in accordance with the accounting
principles generally accepted in India, including the Indian Accounting Standards (Ind AS)
prescribed under Section 133 of the Act.
This responsibility also includes maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding of 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 Ind AS financial statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, managements is responsible for assessing the
Companys ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the concern basis of accounting unless management
either intends to liquidate the Company or to cease operations, or has no realistic
alternative but to do so.
Those Board of Directors are also responsible for overseeing the Companys financial
reporting process.
Auditors Responsibility for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial results
as a whole is free from material misstatement, whether due to fraud or error, and to issue
an auditors report that includes our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted in accordance with SAs will
always detect a material misstatement when it exists. Misstatements can arise from fraud
or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of
this financial results.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the Financial Results,
whether due to fraud or error, design and perform audit procedures responsive to those
risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for
our opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances. Under Section 143(3) (i) of
the Act, we are also responsible for expressing our opinion on whether the company has
adequate internal financial controls with reference to financial statements in place and
the operating effectiveness of such controls
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates made by the Board of Directors.
Conclude on the appropriateness of the Board of Directors use of the going concern
basis of accounting and, based on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that may cast significant doubt on the
ability of the Company to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditors report to the
related disclosures in the Statement 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
auditors report. However, future events or conditions may cause the Company to cease to
continue as a going concern.
Evaluate the overall presentation, structure and content of the Financial Results,
including the disclosures, and whether the Financial Results represent the underlying
transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
Other matter
For other matter kindly refer clause no seven and nineteen of CARO, 2020.
Report on other legal and regulatory requirements
1. As required by the Companies (Auditors Report) Order, 2020 ("the Order"),
issued by the Central Government of India in terms of Section 143(11) of the Act, we give
in the Annexure-I a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by section 143(3) of the Act, we report, to the extent applicable, 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 and returns adequate for
the purposes of our audit have been received from the branches not visited by us.
c) The reports on the accounts of the branch office (NIL) of the company audited under
section 143(8) of the Act by branch auditors have been sent to us and have been properly
dealt with us in preparing this report.
d) The Balance Sheet, the Statement of Profit and Loss, the Cash Flow Statement and the
Statement of Change in Equity dealt with by this Report are in agreement with the books of
account and with the returns received from branches (NIL) not visited by us.
e) In our opinion, the aforesaid Ind AS financial statements comply with the Indian
Accounting Standards specified under Section 133 of the Act, to the extent applicable.
f) With respect to the adequacy of internal financial control over financial reporting
of the company and the operating effectiveness of such controls, refer to our separate
report in the Annexure-II, and
g) With respect to the other matters to be included in the Auditors 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:
1) The Company has disclosed the impact of pending litigations on its financial
position in its Ind AS financial statements.
2) The Company did not have any material foreseeable losses on long-term contract
including derivative contracts.
3) According to the information and explanations given to us, there were no amounts
which were required to be transferred to Investor Education and Protection Fund by the
company.
4) (a) The management has represented that, to the best of its knowledge and belief,
other than as disclosed in the notes to the accounts, no funds have been advanced or
loaned or invested (either from borrowed funds or share premium or any other sources or
kind of funds) by the company to or in any other person(s) or entity(ies), including
foreign entities (“Intermediaries”), with the understanding, whether recorded in
writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or
invest in other persons or entities identified in any manner whatsoever by or on behalf of
the company (“Ultimate Beneficiaries”) or provide any guarantee, security or the
like on behalf of the Ultimate Beneficiaries;
(b) The management has represented, that, to the best of its knowledge and belief,
other than as disclosed in the notes to the accounts, no funds have been received by the
company from any person(s) or entity(ies), including foreign entities (“Funding
Parties”), with the understanding, whether recorded in writing or otherwise, that the
company shall, whether, directly or indirectly, lend or invest in other persons or
entities identified in any manner whatsoever by or on behalf of the Funding Party
(“Ultimate Beneficiaries”) or provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries; and
(c) Based on audit procedures which we considered reasonable and appropriate in the
circumstances, nothing has come to their notice that has caused them to believe that the
representations under sub-clause (i) and (ii) contain any material mis-statement.
5) The company has not declared or paid any dividend during the year in contravention
of the provisions of section 123 of the Companies Act, 2013.
| For, Nirav Patel & Co. |
|
| Chartered Accountants |
|
| FRN.134617W |
|
| SD/- |
|
| (Rinku N. Patel) |
|
| Partner |
|
| M. No. 171232 |
Place: Bhavnagar |
| UDIN: 23171232BGXUTZ8531 |
Date: 10/05/2023 |
Reports under The Companies (Auditors Report) Order, 2020 (CARO 2020) for the year
ended on 31st March 2023
To,
The Members of Madhav Copper Limited,
1. In Respect of Property, Plant and Equipments
(a) (i)The company has maintained proper records in computerized format showing full
particulars, including quantitative details. In such format of Property, Plant and
Equipment they have not mentioned Situation of Property, Plant and Equipment.
(ii) The company does not have any intangible assets.
(b) The company has a regular program of physical verification of its Property, Plant
and Equipment by which all Property, Plant and Equipment are verified in a phased manner
over a period of three years. Accordingly, Property, Plant and Equipment of some plants
&/or offices of the company were verified by internal staff during the year and no
material discrepancies were noticed on such verification.
In our opinion, the periodicity of physical verification is reasonable having regard to
the size of the company and the nature of its assets. We also suggest to get it verified
from external agencies once in three years.
(c) The title deeds of all the immovable properties (other than properties where the
company is the lessee and the lease agreements are duly executed in favor of the lessee)
disclosed in the financial statements are held in the name of the company except following
properties:
| Description of property |
Gross carrying value |
Held in name of |
Whether promoter, director or their relative or employee |
Period held - indicate range, where appropriate |
Reason for not being held in name of company * |
| Innova Crystal truck |
2.82 Lacs |
Rohitbhai B. Chauhan |
Director |
From F.Y.2017-18 till date |
To reduce RTO Tax Burden |
| _ Fortuner |
3.66 Lacs |
Nileshbhai N. Patel |
Director |
From F.Y.2016-17 till date |
To reduce RTO Tax Burden |
(d) According to the information and explanations given to us, the company has not
revalued its Property, Plant and Equipment (including Right of Use assets) or intangible
assets or both during the year. This Sub clause is not applicable since there are no
revaluation is done during period covered under audit.
(e) According to the information and explanations given to us and on our verification,
no proceedings have been initiated or are pending against the company for holding any
benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and
rules made there under.
2. In Respect of Inventories
a) According to the information and explanations given to us, the inventories of
Finished Goods, Raw Materials and store & spares have been physically verified by the
management during the year. In our opinion, the periodicity and procedure of physical
verification is reasonable having regard to the size of the company and the nature of its
business. There are no inventories of 10 % or more in the aggregate for each class of
inventory were noticed.
b) According to the information and explanations given to us during any point of time
of the year, the company has been sanctioned/renewed working capital limits in excess of
five crore rupees, in aggregate, from banks on the basis of security of current assets.
The quarterly returns or statements filed by the company with such banks are in agreement
with the books of account of the Company.
3. In Respect of Granting any kind of loans and advances
According to the information and explanation given to us during the year the company
has not made investments in, provided any guarantee or security or granted any loans or
advances in the nature of loans, secured or unsecured, to companies, firms, Limited
Liability Partnerships or any other parties.
4. Compliance under section 185 and 186 of The Companies Act , 2013
According to information and explanation given to us, the company has not advanced any
loan, given any guarantee or provided any security in connection with such loan and
given/made any loan/investment within the meaning of section 185 and 186 of the companies
Act,2013 and as such, reporting under this clause is not applicable to the company.
5. Compliance under section 73 to 76 of The Companies Act, 2013 and Rules framed there
under while accepting Deposits
According to the information and explanation given to us, the company has not accepted
any deposit from the public or amounts which are deemed to be deposits within the meaning
of section 73 to 76 or the directives issued by the Reserve Bank of India or any other
relevant provisions of companies Act, 2013 and the Rules framed there under and as such,
reporting under this clause is not applicable to the company.
6. Maintenance of cost records
According to the information and explanations given to us, maintenance of cost records
by the company has been specified by central Government under sub section (1) of the
section 148 of the companies Act, 2013. We have broadly reviewed such cost records and we
are of the opinion that, prima facie , such accounts and records have been made and
maintained. We have not however made a detailed examination of records with a view to
determine whether they are accurate and complete.
7. Deposit of statutory Dues
(a) According to the records of the company and information and explanations given to
us, the company is generally regular in depositing undisputed statutory dues including
provident fund, employee state insurance, income tax, sales tax, service tax, custom duty,
duty of excise, value added tax , Cess and other statutory dues with the appropriate
authorities where applicable. There is no arrear of outstanding statutory dues as at 31st
March, 2023 for a period of more than six months from the date they became payable
excepting Rs. 0.22 Lac of Professional Tax.
(b) According to the records of the company and information and explanations given to
us, the following are the details disputed statutory dues including provident fund,
employee state insurance, income tax, sales tax, service tax, custom duty, duty of excise,
value added tax , Cess and other statutory dues as on 31st March, 2023.
| Name of the Statue Income |
Nature of Dues Short |
Period to which amount relates Prior Years |
Forum where dispute is pending TIN-NSDL |
Amount (In Lac) 0.33 |
| Tax Act |
Deduction of TDS and/or TCS |
|
|
(Including Accrued Interest thereon) |
| Central Excise Act |
Cenvat and Additional Duty on Import Purchase |
F.Y.2014-15 |
Appellate Tribunal |
18.00 |
| Central Excise Act |
Cenvat and Additional Duty on Import Purchase |
F.Y.2015-16 |
Appellate Tribunal |
32.87 |
| Income Tax Act |
Intimation order u/s.143(1) |
F.Y.2017-18 |
Central Processing Centre |
542.06 |
| Income Tax Act |
Intimation order u/s.143(1) |
F.Y.2019-20 |
Central Processing Centre |
256.17 (Including Accrued Interest thereon) |
| Income Tax Act |
Intimation order u/s.143(1) |
F.Y.2020-21 |
Central Processing Centre |
1778.90 (Including Accrued Interest thereon) |
| Income Tax Act |
Short Deduction of TDS and/or TCS |
F.Y.2020-21 |
TIN-NSDL |
0.01 (Including Accrued Interest thereon) |
8. Unrecorded Transaction
We have not found any transactions which were not recorded in the books of account have
been surrendered or disclosed as income during the year in the tax assessments under the
Income Tax Act, 1961 (43 of 1961), if so, whether the previously unrecorded income has
been properly recorded in the books of account during the year.
9. Repayment of Loans and borrowings
(a) According to the information and explanations given to us, the Company has not
defaulted in repayment of loan or borrowing to financial institutions, banks or
government. (b) According to the information and explanations given to us, the company has
not declared willful defaulter by any bank or financial institution or other lender; (c)
According to the information and explanations given to us, term loans were applied for the
purpose for which the loans were obtained; no diversification is made of loans during the
period of Audit.
(d) According to the information and explanations given to us, funds raised on short
term basis have been utilized for short term purposes only. (e) According to the
information and explanations given to us, the company has not taken any funds from any
entity or person on account of or to meet the obligations of its subsidiaries, associates
or joint ventures.
(f) According to the information and explanations given to us, the company has not
raised loans during the year on the pledge of securities held in its subsidiaries, joint
ventures or associate companies.
10. Utilization of Money Raised by Public Offers and Term Loan for which they raised
and Compliance under section 42 and 62 of companies Act,2013
(a) According to the information and explanations given to us, the company did not
raise any money by way of initial public offer or further public offer (including debt
instruments) or term loan during the year.
(b) According to the records of the company and information and explanations given to
us the company has not made any preferential allotment or private placement of shares or
convertible debentures (fully, partially or optionally convertible) within the meaning of
section 42 and 62 of Companies Act,2013 during the year and as such, reporting under this
clause is not applicable to the company.
11. Reporting of fraud During the Year
(a) No fraud by the company or any fraud on the company has been noticed or reported
during the year.
(b) In our opinion there are no requirements to file the report under sub-section (12)
of section 143 of the Companies Act.
(c) No whistle- blower complaints were received by the company and not provided to us
by the company
12. Compliance by Nidhi company Regarding net owned Fund to deposit Ratio
Regarding in our opinion and according to the information and explanations given to us,
the company is not a Nidhi company and as such, reporting under this clause is not
applicable to the company.
13. Related Party Compliance with Section 177 and 188 of Companies Act -2013
According to the information and explanation given to us and based on our examination
of the records of the company, transactions with the related parties are in compliance
with sections 177 and 188 of the companies Act,2013 where applicable and details of such
transactions have been disclosed in note no 1 in the financial statements as required by
the applicable accounting standards, where applicable.
14. Regarding internal Audit System
(a) The company has an internal audit system commensurate with the size and nature of
its business. (b) The reports of the Internal Auditors for the period under audit were
carefully read and considered while making statutory Audit report by us.
15. Compliance under Section 192 of Companies Act 2013
According to the information and explanation given to us and based on our examination
of the records of the company, the company has not entered into any non-cash transactions
with directors or persons connected with him/her and such, reporting under this is not
applicable to the company
16. Requirements of Registration under 45 IA of Reserve Bank of India Act,1934
In our opinion, the company is not required to be registered under section 45-IA of the
reserve bank of India Act 1934 and as such, reporting under this clause is not applicable
to the company.
17. Reporting of cash losses
Based on the financial information provided to us and verification of the same we are
of the opinion that the company has not incurred cash losses in the financial year and in
the immediately preceding financial year.
18. Reporting on resignation of Statutory Auditor
There has not been any resignation of the statutory auditors during the year.
19. Reporting on the uncertainty of the company capable of meeting its liabilities
According to the information and explanations given to us and on the basis of the
financial ratios, ageing and expected dates of realisation of financial assets and payment
of financial liabilities, other information accompanying the standalone financial
statements, our knowledge of the Board of Directors and management plans and based on our
examination of the evidence supporting the assumptions, nothing has come to our attention,
which causes us to believe that any material uncertainty exists as on the date of the
audit report that the Company is not capable of meeting its liabilities existing at the
date of balance sheet as and when they fall due within a period of one year from the
balance sheet date. We, however, state that this is not an assurance as to the future
viability of the Company. We further state that our reporting is based on the facts up to
the date of the audit report and we neither give any guarantee nor any assurance that all
liabilities falling due within a period of one year from the balance sheet date, will get
discharged by the Company as and when they fall due.
20. Reporting on Transfer of Unspent Amount of CSR to fund specified in Schedule VII of
Companies Act,2013
This Clause is not applicable as Company does not have any unspent amount which
required to be transferred.
21. Reporting on Qualification or adverse remarks on consolidated financial statement:
This Clause is not applicable as company is not liable to prepare Consolidated
financial Statements.
| For, Nirav Patel & Co. |
|
| Chartered Accountants |
|
| FRN.134617W |
|
| SD/- |
|
| (Rinku N. Patel) |
|
| Partner |
|
| M. No. 171232 |
Place: Bhavnagar |
| UDIN: 23171232BGXUTZ8531 |
Date: 10/05/2023 |
To The Independent Auditors Report of even date on the Ind AS Financial statements of
Madhav Copper Limited Report on the Internal Financial Controls under Clause (i) of
Sub-section 3 of Section 143 of the Companies Act,2013 ("the Act")
We have audited the internal financial controls over financial reporting of Madhav
Copper Limited ("the Company") as of 31st March, 2023 in conjunction with our
audit of the Ind AS financial statements of the Company for the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and maintaining internal
financial controls based on the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting
issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities
include the design, implementation and maintenance of adequate internal financial controls
that were operating effectively for ensuring the orderly and efficient conduct of its
business, including adherence to companys policies, the safeguarding of its assets, the
prevention and detection of frauds and errors, the accuracy and completeness of the
accounting records, and the timely preparation of reliable financial information, as
required under the Companies Act, 2013.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls over financial reporting based on our audit. We conducted our audit in accordance
with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting
(the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed
to be prescribed under section143(10) of the Companies Act, 2013, to the extent applicable
to an audit of internal financial controls, both applicable to an audit of Internal
Financial Controls and, both issued by the Institute of Chartered Accountants of India.
Those Standards and the Guidance Note require that we comply with ethical requirements and
plan and perform the audit to obtain reasonable assurance about whether adequate internal
financial controls over financial reporting was established and maintained and if such
controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditors judgment, including the assessment of the risks of
material misstatement of the Ind AS financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Companys internal financial controls system
over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A companys internal financial control over financial
reporting includes those policies and procedures that
66
(1) Pertain to the maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the company are being made only in
accordance with authorizations of management and directors of the company; and
(3) Provide reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use, or disposition of the companys 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 financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has in place, in all material respects, an adequate
internal financial controls system over financial reporting and such internal financial
controls over financial reporting were operating effectively as at 31st March 2023, based
on the internal control over financial reporting criteria established by the Company
considering the essential components of internal control stated in the Guidance Note on
Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of
Chartered Accountants of India.
| For, Nirav Patel & Co. |
|
| Chartered Accountants |
|
| F.No.134617W |
|
| SD/- |
|
| (Rinku N. Patel) |
|
| Partner |
|
| M. No. 171232 |
Place: Bhavnagar |
| UDIN: 23171232BGXUTZ8531 |
Date: 10/05/2023 |
+91-9892691696
