moil ltd share price Auditors report


To

The Members of MOIL Limited

Report on the Audit of the Standalone Financial Statements Opinion

We have audited the Standalone financial statements of MOIL LIMITED ("the Company”), which comprise the Balance Sheet as at 31st Marc Rs.2023, and the statement of the Profit and Loss (including other comprehensive income), the statements of changes in equity and the statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information (herein after referred to as "Standalone financial statements”).

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid 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 Marc Rs.31, 2023, the profit and total comprehensive income, the changes in equity and its cash flows for the year ended on that date.

Basis for opinion

We conducted our audit of standalone financial statements in accordance with the Standards on Auditing (SAs) specified under section 143 (10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditors Responsibilities for the Audit of the financial statements 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 (ICAI) together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Companies Act, 2013 and the Rules thereunder, 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.

Emphasis of Matter -

Without qualifying our opinion, we draw attention to:

1. Point No. 1.2.13 of accounting policy & Note No. 2.27 for recognition of revenue. The revenue includes Royalty, District Mineral fund (DMF) and National minerals exploration trust contribution (NMET) collected on behalf of third party on actual basis as per contract. However, this treatment is not in line with IND AS 115, which says to show revenue on net basis excluding all collection on behalf of third parties. This has been done by the company as per the industry practice and expert opinion obtained. Our opinion is not modified on the same.

2. Note No. 2.5 (Investment) with regard to classification of actual advance Expenditure (MOIL Share) for proposed joint ventures with GMDC and MPSMCL, amounting to ?754.02 Lakhs and ?104.33 Lakhs respectively under Investments in the name and style of "MOIL-GMDC JV, yet to be incorporated”, and "MOIL -MPSMCL JV, yet to be incorporated” respectively. They should have been classified as Other Non- Current Assets.

3. Note no. 3.27 of notes on accounts in regard to a case of fraud committed on the company by an employee. The fraud has been detected through a compliant received under the Public Disclosure & Protection of Informer Resolution (PIDPIR) by Chief Vigilance Officer of the company wherein the value of transaction under investigation is approx. RS.1.35 Cr as per the said note. Currently, on the basis of information received, the case has been handed over to CBI.

Key Audit Matters -

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statement as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.

Sr. Key Audit Matter No.

Auditors Response

1 Revenue from Contract with Customer:

Principal Audit Procedures:

(i) Refer Note no. 2.27 Revenue from contracts with customers is recognized when control of the goods is transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods.

Our Audit Procedure comprises of assessing the application of the provisions of Ind AS 115 in respect of the Companys revenue recognition and appropriateness of the estimated adjustments in the process, also we have performed test to establish the basis of estimation of the consideration and whether such estimates are commensurate with the accounting policy.

All revenue from sale of goods is recognised at a point in time. Revenue is recognized in the books of accounts only after dispatch of goods based on railway receipt/lorry receipt/delivery challan.

Contract asset: A contract asset is the right to consideration in exchange for goods or services transferred to the customer. If the Company performs by transferring goods or services to a customer before the customer pays consideration or before payment is due, a contract asset is recognised for the earned consideration that is conditional.

Contract liability: A contract liability is the obligation to transfer goods or services to a customer for which the Company has received consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the Company transfers goods or services to the customer, a contract liability is recognised when the payment is made or the payment is due (whichever is earlier). Contract liabilities are recognised as revenue when the Company performs under the contract.

Debit notes / Credit notes are raised for variation in quality on receipt of laboratory analysis reports. Analysis reports received in subsequent year up to a cut-off date are considered in year of dispatch. Accordingly, debit / credit notes are raised and accounted for in the same year. In respect of analysis reports received after the cut-off date, the invoices for the same are raised in subsequent year.
Sales include amounts in respect of royalty, district mineral fund and national mineral exploration trust contributions but excludes GST and any other taxes/cess. Sales are reduced to the extent of the amount of price discount. The Company acts as a principal to its customers and all the performance obligation stands on the Company, therefore revenue is accounted on Gross basis.
Manganese ore fines, hutch, dust and HIMS rejects generated during operations are recognised as production as and when they are sold and corresponding sales is treated as revenue from mining products.

2 Inventory Valuation:

Principal Audit Procedures:

Refer Note no. 1.2.3 (Significant Accounting Policy) Our team has reviewed the same and has obtained a copy of valuation reports and price lists that have been taken into consideration while arriving at the final closing value of inventory. The system of inventory valuation and recording of stock level is found to be appropriate.

(a) Finished Goods:-Manganese ore of all grades including Manganese ore fines, hutch dust and HIMS rejects, Manganese ore at port, Electrolytic manganese di-oxide [EMD], Ferro manganese/silico manganese including stock in cake:- At cost at mines including depreciation on mine assets or net realizable value, whichever is less.

(b) Stock in process:-

The quantity of ferro manganese/silico manganese in process has not been assigned any value.

(c) Stock of slag:-

Slag is a molten mass of impurities generated during manufacture of ferro manganese, which is treated as scrap and, accordingly, valued at net realizable price.

3 Deferred tax:

Principal Audit Procedures:

As disclosed in Note 3.8 the Company has recognised deferred tax assets in respect of certain deductions on account of provision for Leave Encashment, provision for pension, provision for Post-Retirement Medical Benefit, provision for Doubtful Debts and provision for Bonus to the extent that it is probable that we get tax benefits in future. This requires management judgement in estimating future taxable income and is accordingly a key audit matter. Refer Note no. 3.8 Reviewed the assumptions made by management for uncertain current and deferred tax positions to assess whether appropriate current and deferred tax provisions have been recognized and are based on the most probable outcome. We found the disclosures relating to the income tax and deferred tax balances to be appropriate.

4 Information Systems and Controls:

Principal Audit Procedures:

The company is using SAP system to process all accounting transactions. The said system has been implemented recent past. As Some manual intervention is still there. Thus, it is a Key Audit Matter.

Our team has performed risk assessment procedure and considered the risk arising from the use of IT system at the company. While obtaining and understanding of the business process and performing walkthroughs the use of IT system and application has been considered. We have assessed the reliability of source data and completeness of population. Through sample testing we have tested the key reports generated from the IT system, and found that IT controls are adequate

5 Defined Benefit Obligation and other Long-Term Benefits:

Principal Audit Procedures:

The Company has recognized long term employee benefit liabilities, consisting of Terminal Leave Obligation & Gratuity and defined benefit obligations receivable (net of plan asset against funded gratuity obligation) and post-employment benefits. The valuation of employee benefit obligations is dependent on market conditions and assumptions made. The key audit matter specifically relates to the following key assumptions: discount rate, inflation expectations and life expectancy assumptions. The setting of these assumptions is complex and requires the exercise of significant management judgement with the support of third-party actuary.

In testing the valuation, we have examined the reports of external actuarial specialists to review the key actuarial assumptions used, both financial and demographic, and considered the methodology utilized to derive these assumptions. Furthermore, we have examined the sensitivity analysis adopted by the external party viz. actuarial on the key assumptions in valuing the defined benefit obligations. We would like to comment that on the methodology and assumption applied in relation to determination of liability is acceptable.

6 Provision for final Mine Closure Expenses:

Principal Audit Procedures:

The companys obligation for land reclamation and decommissioning of structures consists of spending at both surface and underground mines. The company estimates its obligation for Mine Closure, Site Restoration and Decommissioning based upon detailed calculation and technical assessment. Mine Closure expenditure is provided as per approved Mine Closure Plan. As the provision for mine closure involves estimate and Management judgement, the same is considered as a Key Audit Matter

Our Audit procedure comprise of identification and understanding of the reasonableness of the principal assumption used by the management to judge the need for its basis of estimate as it has been explained to us that the provision made is in accordance with the technical evaluation and production of ore during the year.

7 Provision for Post-Retirement medical benefit:

Principal Audit Procedures:

As disclosed in Note 2.25(d) The company, as per office memorandum from Government of India (Ministry of Heavy Industries and Public enterprises) is required to create post retirement corpus fund for medical benefit of employees. The valuation provision of the same requires assumptions which are based upon market conditions, discount rate, Life expectancy of employees and others, to be considered for setting aside fund for medical benefit. The setting of these assumptions is complex and requires the exercise of significant management judgement with the support of third party actuary.

In testing the valuation, we have examined the reports of external actuarial specialists to review the key actuarial assumptions used, both financial and demographic, and considered the methodology utilized to derive these assumptions. Furthermore, we have examined the sensitivity analysis adopted by the external party viz. actuarial on the key assumptions in valuing the defined benefit obligations. We would like to comment that on the methodology and assumption applied in relation to determination of liability is acceptable.

Information other than the Standalone Financial statements and Auditors Report thereon

The Companys management and Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Management Discussion and Analysis, Boards Report including Annexures to Boards Report, Business Responsibility Report, Corporate Governance Report and Shareholders Information, Corporate Social Responsibility but does not include the financial statements and our "Audit report” thereon.

• Our opinion on the financial statements does not cover the "other information and we will not express any form of assurance conclusion thereon.

• In connection with our audit of the financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so consider whether the other information is materially inconsistent with the financial statement or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

• If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to communicate the matter to those charged with governance and necessary actions, as applicable under relevant laws and regulations.

Responsibilities of Management and Those Charged with Governance for the 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 and presentation of these Standalone Financial Statement that give a true and fair view of the financial position, financial performance including other comprehensive income, statement of changes in equity and cash flow of the company in accordance with the accounting principles generally accepted in India, including the Indian Accounting standard (Ind AS) specified under section 133 of the Act, read with Rule 7 issued thereunder. This responsibility also includes maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding the assets of the Company and for preventing and detecting fraud 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 Standalone financial statements that give a true and fair view and are free from material misstatements, whether due to fraud or error.

In preparing the Financial Statements, Board of Directors is responsible for assessing the Companys ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors is also responsible for overseeing the Companys financial reporting process.

Auditors Responsibility for the Audit Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the Financial Statements as a whole are 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 based on these Financial Statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

i. Identify and assess the risks of material misstatement of the financial statements, 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.

ii. 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 Companies Act, 2013, we are also responsible for expressing our opinion on whether the entity has adequate internal financial controls system in place and the operating effectiveness of such controls.

iii. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

iv. Conclude on the appropriateness of managements and 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 Companys ability 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 financial statements 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.

v. Evaluate the overall presentation, structure and content of the Standalone financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the Standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the Standalone financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the Standalone financial statements.

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.

Form the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on other Legal and regulatory requirements:

1. As required by section143(3) of the Act, we report that;

a. We have sought and obtain all the information and explanations, which, to the best of our knowledge and belief were necessary for the purpose 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 Balance Sheet, the Statement of Profit and Loss (including Other Comprehensive Income) and Statement of Cash Flow and the Statement of Changes in Equity dealt with by this report are in agreement with the books of account.

d. In our opinion, the aforesaid standalone financial statement complies with the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014, subject to point No. 2 of Emphasis of Matter herein above.

e. As per notification no. GSR 463(E) dated 5th June 2015 issued by the Ministry of Corporate Affairs, Government of India, Section 164(2) of the Companies Act, 2013 shall not be applicable to the Company.

f. With respect to the adequacy of the internal financial controls over financial reporting of the company and the operating effectiveness of such controls, refer to our separate report in Annexure "A”. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companys internal financial controls over financial controls over financial reporting.

g. With respect to the other matters to be included in the Auditors Report in accordance with the requirements of section 197(16) of the Act, as amended:

As per notification no. GSR 463(E) dated 5th June 2015 issued by the Ministry of Corporate Affairs, Government of India, Section 197 of the Companies Act, 2013 shall not be applicable to the Company.

h. 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:

i. The company has disclosed the impact of pending litigations as at Marc Rs.31, 2023 on its financial position in its standalone financial statements- Refer Note 3.15 to the standalone financial statements.

ii. There are no long term contracts including derivative contracts for which required provision for material foreseeable losses.

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

iv. a) The Management has represented that, to the

best of its knowledge and belief, as disclosed in the notes to the accounts no funds (which are material either individually or in aggregate) 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 persons or entities, including foreign entities ("Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, 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 in behalf of the Ultimate Beneficiaries

b) The Management has represented, that, to the best of its knowledge and belief, as disclosed in the notes to accounts, no funds (which are material either individually or in the aggregate) have been received by the Company from any persons or entities, including foreign entities ("Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, 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

c) Based on the audit procedures that has been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-case (i) and (ii) of rule 11(e) as provide under (a) & (b) above contain any material misstatement.

2. As required under section 143(5) of the Companies Act, 2013 we give in the Annexure "B” a statement on directions issued by the Comptroller & Auditor General of India after complying the suggested methodology of audit, action taken thereon and its impact on the accounts and standalone financial statement of the Company.

3. As required by the Companies (Auditors Report) Order, 2020 ("the order”), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we give in the Annexure "C” statement on the matters specified in paragraphs 3 and 4 of the order, to the extent applicable.

FOR JODH JOSHI AND CO.

CHARTERED ACCOUNTANTS (FRN.104317W)

CA MAKARAND JOSHI

(PARTNER)

Date : 03.07.2023

(Mem. No:047196)

Place : NAGPUR

(UDIN : 23047196BGWALP5218)

Annexure - A

to the Independent Auditors Report of MOIL Limited for The FY 2022-23

(Referred to in paragrap Rs.1 (f) under Report on Other Legal and Regulatory Requirements section of our report and in terms of section 143 (3)(i) of the Act)

Report on the Internal Financial Controls Over Financial Reporting 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 MOIL Limited ("the Company”) as of 31 Marc Rs.2023 in conjunction with our audit of the Standalone 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, issue by ICAI and deemed to be prescribed under section 143(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 standalone 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 (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 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 31 Marc Rs.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.

However, the internal audit system requires to be strengthened. Also, ERP system SAP requires elaborate improvement like inclusion of several features viz,

1. Vouchers making checking authorizing through SAP

2. Periodic reviews of roles & authorization

3. Audit Logs

4. Governance and regulation control consisting statutory legal and other compliance

5. System audit of SAP is required, so that proper assessment of system can be evaluated.

FOR JODH JOSHI AND CO.

CHARTERED ACCOUNTANTS (FRN.104317W)

CA MAKARAND JOSHI

(PARTNER)

Date : 03.07.2023

(Mem. No:047196)

Place : NAGPUR

(UDIN : 23047196BGWALP5218)

Annexure-B

to the Independent Auditors Report of MOIL Limited for the FY 2022-23

Report on the Directions issued by the Comptroller and Auditor General under sub-section 5 of Section 143 of the Companies Act, 2013 ("the Act")

1. Whether the company has system in place to process all the accounting transactions through IT system? If yes, the implications of processing of accounting transactions outside IT system on the integrity of the accounts along with the financial implications, if any, may be stated.

Yes, the company is using ERP-SAP System to process all the accounting transactions with manual intervention including for preparation of Financial statements, which needs elaborate improvements like Inclusion of several features such as

• Voucher making checking authorizing through SAP,

• Periodic reviews of roles &authorization

• Audit trail logs

• Governance and regulation control consisting statutory legal and other compliance

Further System Audit of SAP is Required, so that proper Assessment System can be evaluated.

2. Whether there is any restructuring of an existing loan or cases of waiver/write off of debts/loans/ interest etc. made by a lender to the company due to the companys inability to repay the loan? If yes, the financial impact may be stated. Whether such cases are properly accounted for? (In case, lender is a Government company, then this direction is also applicable for statutory auditor of lender company).

The Company has no borrowing, hence reposting with regard to this Point is Not applicable.

3. Whether funds (grants/subsidy etc.) received/ receivable for specific schemes from Central/State Government or its agencies were properly accounted for/utilized asper its term and conditions? List the cases of deviation.

No such funds have been received or are receivable from central/ State Agencies.

FOR JODH JOSHI AND CO.

CHARTERED ACCOUNTANTS (FRN.104317W)

CA MAKARAND JOSHI

(PARTNER)

Date : 03.07.2023

(Mem. No:047196)

Place : NAGPUR

(UDIN : 23047196BGWALP5218)

Annexure-C

to the Independent Auditors Report

(Referred to in paragrap Rs.3 under Report on Other Legal and Regulatory Requirements section of our report of even date)

With reference to the Annexure referred to in the Independent Auditors Report to the MOIL Limited (the Company) on the Financial Statements for the year ended 31st March2023, we report the following:

(i) (a) The company has maintained proper records showing full particulars, including quantitative details and situation of the property, plant and equipment and Capital work-in-progress. The company has maintained proper records showing full particulars of intangible assets held by the Company.

(b) The property, plant and equipment were physically verified by the management. The physical verification was carried out in accordance with a regular program of verification which in our opinion provides for physical verification of all property, plant and equipment at reasonable intervals having regard to the size of the Company and the nature of assets. According to the information and explanations given to us, no material discrepancies were noticed on such verification.

(c) On examination of the documents provided to us by the management, the title deeds of immovable properties included in Property Plant & Equipment and Capital work-inProgress are held in the name of company.

(d) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has not revalued its property, plant and equipment (including right of use assets) or intangible assets or both during the year.

(e) With respect to the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder, there are no proceedings initiated or pending against the company for holding any benami property under the said act.

(ii) (a) In our opinion and according to the information and

explanations given to us, procedures of physical verification of inventory at reasonable intervals followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business. The company is maintaining proper records of inventory. No discrepancies of 10% or more in the aggregate for each class of inventories were noticed on such physical verification of inventories/ alternative procedures performed as applicable, when compared with books of accounts.

(b) According to the information and explanations gives to us at any point of time of the year, the company has not been sanctioned any working capital facility, from bank or financial

institutions. Hence reporting under clause 3(ii)(b) of the order is not applicable except for bank guarantees received against lien on fixed deposits, for which no stock statement is required to be submitted.

(iii) According to the information and explanations given to us and on the basis of our examination of the records of the company, the company has not made any investments in or provided security to companies, firms limited liability partnerships or any other parties during the year. The company has not provided guarantees granted loans and advances in the nature of loans during the year to companies and other parties. The company has not provided guarantees or granted loans or advances in the nature of loans during the year to firms or limited liability partnerships.

(a) (A) Based on the audit procedures carried out by us and as

per the information and explanations given to us, the Company has not granted loans to subsidiaries, hence reporting under clause 3(iii)(a)(A) is not applicable to the company.

(B) Based on the audit procedures carried out by us and as per the information and explanations given to us, the Company has granted advances in the nature of loans to other parties as below:

Particulars

Advance in the nature of Loan - Employee Advances

Balance Outstanding as the balance sheet date - Other Parties

(a) Current (Refer Note No. 2.14)

330.39

(b) Non - Current (Refer Note No. 2.6)

177.06

Total (abs)

507.45

(b) According to the information and explanations given to us and based on the audit procedures conducted by us, as the company has not provided any guarantees, Accordingly Reporting under 3(iii)(b) is not applicable to company.

(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, in our opinion, in the case of loans and advances in the nature of loans given, the repayment of principal and payment of interest has been stipulated and the repayments or receipts have been regular.

(d) According to the information and explanations given to us and on the basis of our examination of the records of the

Company, there is no overdue amount for more than ninety days in respect of loans and advances in the nature of loans given. Hence, reporting under 3(iii)(d) is not applicable to company.

(e) According to the information and explanations given to us and on the basis of our examination of the records of the Company, there is no loan or advance in the nature of loans granted falling due during the year, which has been renewed or extended or fresh loans granted to settle the over dues of existing loans or advances in the nature of loans given to same parties. Hence, reporting under 3(iii)(e) is not applicable to company.

(f) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has not granted any loans or advances in the nature of loans either repayable on demand or without specifying any terms or period of repayment. Hence, reporting under 3(iii)(f) is not applicable to company.

(iv) In our opinion, the company has not granted any loans or provided any guarantees or securities to the parties covered u/s 185 of the Act. The company has complied with the provisions of section 186 of the Act with respect to loans and Investments. The company has not provided any guarantee or security to the parties covered u/s 186 of the Act. Hence the provisions of clause 3(iv) of the order is not applicable.

(v) According to the information and explanations given to us, the company has not accepted any deposit from the public. Hence the issue of compliance with the directives issued by the Reserve

Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act and the rules framed thereunder is not applicable. Hence, reporting under clause 3(v) of the order is not applicable.

(vi) The Central Government has prescribed the maintenance of cost records under section 148 (1) of the Companies Act, 2013 and prima facie the prescribed cost records have been maintained. We have however not made a detailed examination of cost records with a view to determine whether they are accurate or complete.

(vii) In respect of statutory dues:

(a) According to the information and explanations given to us and on the basis of our examination of the books of accounts, the company has generally been regular in depositing with the appropriate authorities the undisputed statutory dues including GST, Provident Fund, Employee State Insurance, Income-Tax, Duty of Customs, and other statutory dues applicable to it during the year. The provisions related to sales tax, service tax, duty of excise and value added taxes are not applicable to the Company.

According to the information and explanations given to us, no undisputed amounts payable in respect of GST, Provident Fund, Employee State Insurance, Income-Tax, and other material statutory dues were in arrears as at 31st March,2023 for a period of more than 6 months from the date they became payable. The provisions related to sales tax, service tax, duty of excise and value added taxes are not applicable to the Company.

(b) The dues of Entry Tax and Value Added Tax, Professional Tax, Service tax, Duty of Excise and Income Tax which have not been deposited by the Company on account of various disputes relating to Assessment Dues are as under:-

Name of statute

Amount Demanded (In Rs Lacs)

Amount paid under Protest (In Rs Lacs)

Amount paid under Protest (In Rs Lacs)

Forum where dispute is pending

M.P. Entry Tax Act 1975

13.68

8.45

2008-09

M.P. High Court, Jabalpur

6.28

6.28

2012-13

M.P. Commercial Tax Appellate Board, Bhopal

2.86

0.72

2013-14

M.P. Commercial Tax Appeals, Jabalpur

21.75

5.44

2014-15

10.72

2.68

2015-16

M.P. Vat Act 2002

3.68

1.47

2011-12

M.P. Commercial Tax Appellate Board, Bhopal

9.15

6.66

2012-13

M.P.CST Act 1956

6.10

1.53

2013-14

Commercial Tax Appeals Jabalpur

M S VAT ACT 2002

0.40

0.00

2010-11

Sales tax appellate M.S.

2.01

0.00

2011-12

M S CST ACT 1956

3.24

1.08

2010-11

Sales tax appellate M.S.

0.71

0.47

2011-12

Profession Tax Act 1975

2.27

1.13

2006-07

Sales tax appellate M.S.

7.70

1.93

2007-08

Central Excise- FMP

44029.31

1082.69

Mar. 2011 -Dec.2015

M.P. High Court, Jabalpur

Income Tax Act, 1961

60.00

0.00

2018-19

Commissioner Appeal, I. Tax

 

Name of statute

Amount Demanded (In Rs Lacs)

Amount paid under Protest (In Rs Lacs)

Amount paid under Protest (In ^ Lacs)

Forum where dispute is pending

Service Tax Act, 1994

629.50

17.16

2012-13 2016-17

Central Excise Service Tax Appellate Tribunal, Mumbai

3.09

0.10

April 2016 - June 2017

Commissioner Appeal, CGST & Excise

Gram Panchayat, Chikla Mine

35.57

14.30

2018-19

High Court, Nagpur

Gram Panchayat, Sitasaongi Mine

48.18

20.50

2018-19

High Court, Nagpur

(viii) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has not surrendered or disclosed any transactions, previously unrecorded as income in the books of account, in the tax assessments under the Income Tax Act, 1961 as income during the year.

(ix) The Company does not have any loans or borrowings from any financial institution, banks, government or debenture holders. Accordingly, paragrap Rs.3(ix)a-f of the Order are not applicable.

(x) (a) According to the records of the company examined by us and

the information and explanations given to us, the company has not raised any money by way of initial public offer (including debt instruments) and term loans during the year. Accordingly, reporting under paragrap Rs.3(x)(a) of the order is not applicable.

(b) The According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, clause 3(x)(b) of the Order is not applicable.

(xi) (a) We have been informed by the management that a fraud on

the company is reported during the year wherein transactions pertaining to the period from 01.04.2019 to 31.03.2022 are of suspicious nature. Such fraud, involving transaction value of RS.1.35 crores, has been identified by the company as fraud and has been reported to Audit Committee of the Board and also to the Board of Directors of the company. Employee under suspicion is under suspension and case has been handed over to CBI for further investigation.

(b) During the year under audit, a fraud was reported to the management under PIDPIR against which due cognizance was taken by Chief Vigilance Officer of the company. This fraud was already reported to the Board of Directors and the Audit Committee and we as auditors have not identified the said fraud per se. Therefore, Form ADT-4 is not required to be filed in view of the provisions of The Companies Act, 2013 read with Rule 13 of The Companies (Audit and Auditors)

Amendment Rules, 2015 and in synchronization with the Guidance Note on reporting on fraud under section 143(12) of the Companies Act, 2013 and as per the explanation given below-

Further, sub-section (12) of Section 143 of The Companies Act, 2013 read with Rule 13 of The Companies (Audit and Auditors) Amendment Rules, 2015, requires that if an auditor in the course of the performance of his duties as auditor, has reason to believe that an offense of fraud involving such amount or amounts as prescribed, is being or has been committed in the company by its officers or employees, the auditor shall report the matter to the Central Government.

Guidance Note on reporting on fraud under section 143(12) of the Companies Act, 2013 issued by the Institute of Chartered Accountants of India envisages the auditor to report to the Audit Committee under section 177 of The Companies Act, 2013 or to the Board of Directors and thereafter, where applicable, to the Central Government an offense of fraud in the company by its officers or employees only if he is the first person to identify/note such instance in the course of performance of his duties as an auditor.

Accordingly, in case a fraud has already been reported or has been identified/detected by the management or through the companys vigil/whistle blower mechanism and has been/ is being remediated/dealt with by them and such case is informed to the auditor, he will not be required to report the same under Section 143(12) since he has not per se identified the fraud.

In the present case, the said fraud case was already reported and discussed in the audit committee meeting held on 07.10.2022 and the board meeting as well. The Chief Vigilance officer (CVO) of the company has handed over the case to Central Bureau of Investigation (CBI) and also informed to the Ministry of Steel (Mos).

(c) As per the information and explanation provided to us, there are no whistle blower complaints received by the company during the year.

(xii) In our opinion and according to the information and explanations given to us, the company is not a Nidhi Company as prescribed under Section 406 of the Act. Accordingly, provision of clause 3 (xii) of the order is not applicable to the company.

(xiii) In our opinion and according to the information and explanations given to us and based on our examination of the records of the Company, all transactions with the related parties are in compliance with Sections 177 and 188 of the Act, where applicable, and details of such related party transactions have been disclosed in the Ind AS financial statements as required by the applicable accounting standard.

(xiv) (a) Based on the information and explanation provided to us and

our audit procedure, in our opinion, though the company has an internal audit system commensurate with the size and nature of its business, the same need to be strengthened.

(b) We have considered the Internal Audit Reports of the Company issued till date for the period under audit.

(xv) According to the information and explanations 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 its directors or persons connected with him. Accordingly, provision of clause 3(xv) of the Order is not applicable to the Company.

(xvi) (a) According to the information and explanations given to us,

the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, provision of clause 3(xvi) of the Order is not applicable to the Company.

(b) According to the information and explanations given to us, the Company has not conducted any Non-Banking Financial or Housing Finance activities without a valid Certificate of Registration (CoR) from the Reserve Bank of India as per the Reserve Bank of India Act, 1934;

(c) According to the information and explanations given to us, the Company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of India.

(d) According to the information and explanations given to us, the Company is not a group company, hence this clause is not applicable.

(xvii) The Company has not incurred cash losses during the financial year covered by our audit and in the immediately preceding financial year.

(xviii) There has not been any resignation of statutory auditors during the current financial year.

(xix) According to the information and explanations given to us and on the basis of the financial ratios, ageing and expected dates of realization 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.

(xx) In our opinion and according to the information and explanations given to us, there is no unspent amount under sub-section (5) of section 15 of the Act pursuant to any project. Accordingly, clauses 3(xx) (a) and 3(xx) (b) of the Order are not applicable.

(xxi) The company as on date does not have any Subsidiaries and Joint Ventures and Associates, But the Advance Expenditure done for Proposed Joint Venture with MOIL GMDC & MOIL MPSMCL is shown by the company under the head investment under note no. 2.5 of the Financial Statement. As the Entities are yet to be incorporated, we believe that reporting under clause 3(xxi) of the order is not applicable.

FOR JODH JOSHI AND CO.

CHARTERED ACCOUNTANTS (FRN.104317W)

CA MAKARAND JOSHI

(PARTNER)

Date : 03.07.2023

(Mem. No:047196)

Place : NAGPUR

(UDIN : 23047196BGWALP5218)

COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 143(6)(b) OF THE COMPANIES ACT, 2013 ON THE FINANCIAL STATEMENTS OF MOIL LIMITED FOR THE YEAR ENDED 31 MARC RS.2023

The preparation of financial statements of MOIL Limited for the year ended 31 Marc Rs.2023 in accordance with the financial reporting framework prescribed under the Companies Act, 2013 (Act) is the responsibility of the management of the company. The statutory auditor appointed by the Comptroller and Auditor General of India under Section 139(5) of the Act is responsible for expressing opinion on the financial statements under Section 143 of the Act based on independent audit in accordance with the standards on auditing prescribed under Section 143(10) of the Act. This is stated to have been done by them vide their Revised Audit Report dated 03 July 2023 which supersedes their earlier Audit Report dated 25 May 2023.

I, on behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit of the financial statements of MOIL Limited for the year ended 31 Marc Rs.2023 under Section 143(6)(a) of the Act. This supplementary audit has been carried out independently without access to the working papers of the statutory auditor and is limited primarily to inquiries of the statutory auditor and company personnel and a selective examination of some of the accounting records.

In view of the revisions made in the statutory auditors report, to give effect to some of my audit observations raised during supplementary audit, I have no further comments to offer upon or supplement to statutory auditors report under section 143(6)(b) of the Act.

For and on behalf of the Board of Directors

Comptroller & Auditor General of India

Place : New Delhi

(Sanjay K. Jha)

Date : 27-07- 2023

Director General of Audit (Energy), Delhi