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The financial statements have been prepared in compliance with the requirements of the Companies Act, 2013, guidelines issued by the Securities and Exchange Board of India (SEBI) and other statutory requirements. Our Management accepts responsibility for the integrity and objectivity of these financial statements, as well as for various estimates and judgments used therein. The estimates and judgments relating to the financial statements have been made on a prudent and reasonable basis, so that the financial statements reflect in a true and fair manner the form and substance of transactions and reasonably present our state of affairs, profits and cash flows for the year.
Recent global trends indicate that there is a rising demand relative to supply and increasing cost of mining leading to an increase in commodity prices. Replenishing mineral reserves has become more difficult due to declining ore grades and additional challenges such as inadequate infrastructure and human capital, critical to support the growth of the sector. The Governments worldwide are adopting progressive policy measures to boost mining and mineral exploration in their countries. The Indian Government, too, has initiated several measures like the new mining legislation and Sustainable Development Framework.
RISKS AND CONCERNS:
The Company is planning to acquire for gold exploration licences which is highly speculative in nature and subject to several approvals and operational risks. These risks include exploration and mining risks, delays in approvals to undertake exploration activities, delays in grant of appropriate mineral concession licences, actual resources differing from estimates, operational delays and the availability of equipment, personnel and infrastructure.
The Company is also dependent on key personnel and subject to actions of third parties, including the staff, other contractors and suppliers.
The Companys operations are also subject to government laws and regulations, particularly environmental and land acquisition regulations.
The Companys future revenues from product sales will be affected by changes in the market price of gold other natural stones which is affected by numerous factors which are beyond its control. These include international supply and demand, the level of consumer product demand, international economic trends, currency exchange rate fluctuations, the level of interest rates, rate of inflation, global or regional political events and international events as well as a range of other market forces.
In the absence of cash flow from operations, the Company may have to rely on capital markets / private equity investment to fund its operations. The Companys ability to raise further funds will depend on the success of existing operations.
All the above factors notwithstanding, your Company and its Directors believe that they have adequate experience and access to expertise and capital sources that will enable the Company to successfully develop, launch and execute its projects successfully.
OUT LOOK AND OPPORTUNITIES :
India has the right geological potential for discovery and development of new gold mines. With the untapped mineral potential in India, the contribution of the mining sector in the GDP should aspire to around 7-8% over 20 years. The mining sector needs to play a major role if India has to realize the potential growth of 9% per annum in the coming years.
To unlock the potential of the mineral sector, the Indian Government would need to rework the legislative framework for transparent, safe, scientific & sustainable mining and effective regulation. Concerted action is required to promote scientific exploration for expanding the mineral reserves in India to its full potential. India needs to ensure globally best, fair, transparent and efficient process for the mineral concession system that reduces permit delays to create a more favourable policy environment.
Despite all these shortcomings, the gold exploration and mining sector holds substantial potential to contribute to the growth of the economy and create value for all stakeholders, including the Central Government, State Government (s) and the community at large .
To sum up Midwest Gold Limited will implement the licences of the gold mines if the government of India allot the licences in its favor with state of the art technology; a large pool of well trained geologists, geophysicists and mining engineers to generate a mineral-based economic development of enormous scale and value.
Apart from the above the company is doing trading of imported marble and exporting granite blocks produced out of local quarries to generate revenues to meet its day to day funds requirements. The company is trying to capture the domestic as well as international granite and marble markets to enhance its opportunities to achieve its objects.
RISK MANAGEMENT :
The Company has the mechanism to combat the risks of exposure to Business, Assets and Financial Risks in the form of competition, accidents, natural calamities, obsolescence, and fluctuations in foreign currency etc. The management of your company is on constant vigil to combat any eventuality that may pose threat to the companys business.
INTERNAL CONROL SYSTEMS AND THEIR ADEQUACY:
The philosophy we have with regard to internal control systems and their adequacy has been formulation of effective systems and their strict implementation to ensure that assets and interests of the Company are safeguarded; checks and balances are in place to determine the accuracy and reliability of accounting data. The Company has a well defined organization structure with clear functional authority, limits for approval of all transactions. The Company has a strong reporting system, which evaluates and forewarns the management on issues related to compliance. Company updates its internal control system from time to time, enabling it to monitor employee adherence to internal procedures and external regulatory guidelines.
FINANCIAL PERFORMANCE & OUTLOOK:
The Company has achieved a Turnover of Rs. 12.24 Lacs excluding other income of Rs. 64.79 Lacs when compared to Rs. 259.71 lacs during the previous year. The operations of the Company resulted in loss of Rs. 134.35 lacs when compared to loss of Rs. 187.54 Lacs during the previous year.
The management has done well to ensure sustain operations. However, due to high cost and expenditure, the operations resulted into losses. Efforts are being made to reduce the costs involved. The Management is also looking to get profits in the ensuing financial year.
Human wealth is the ultimate wealth for any industry. The Company recognizes this fact and understands that employees are one of the most important sources for sustained growth of any business. Quality personnel delivering their optimum potential for the organization is the key differentiator. The Company maintained good relations with its employees and there was no unrest in the Company at any point of time during the year.
CAUTIONARY STATEMENT :
Certain statements made in the management discussion and analysis report relating to the Companys objectives, projections, outlook, expectations, estimates and others may constitute forward looking statements within the meaning of applicable laws and regulations. Actual results may differ from such expectations whether expressed or implied. Several factors could make significant difference to the Companys operations. These include climatic and economic conditions affecting demand and supply, government regulations and taxation, natural calamities over which the Company does not have any direct control.
|BY THE ORDER OF THE BOARD|
|For MIDWEST GOLD LIMITED|
|Director||Whole Time Director|
|(DIN: 00078426)||(DIN: 01431440)|
|Place : Bangalore|
|Date : 14.08.2018|