1. We have audited the attached Balance Sheet of M/s. Resurgere Mines
& Minerals India Limited as at 31st March, 2012, statement of Profit
and Loss Account and also the Cash Flow Statement for the year ended on
that date annexed thereto. These financial statements are the
responsibility of the Company''s Management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosure in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
We believe that our audit provides a reasonable basis for our opinion.
3. As required by the Companies (Auditor''s Report) Order, 2003, issued
by the Central Government of India in terms of sub-section (4A) of
Section 227 of ''The Companies Act, 1956'' we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
b) In our opinion, proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of
c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of Section 211 of
e) On the basis of written representations received from the directors,
as on March 31, 2012 and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2012 from being
appointed as a director in terms of clause (g) of subsection (1) of
Section 274 of the Act.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements together
with the notes thereon and attached thereto give, in the prescribed
manner, the information required by the Act, and give a true and fair
view in conformity with the accounting principles generally accepted in
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2012;
(ii) in the case of the Statement of Profit and Loss, of the loss for
the year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Annexure to the Auditors Report
Annexure referred to in Paragraph 3 of Auditors Report to the members
of M/s. Resurgere Mines & Minerals India Limited for the year ended
31st March 2012.
As required by the Companies (Auditors Report) Order, 2003 and
amendments thereto and according to the information and explanation
given to us during the course of the audit and on the basis of such
checks of the books and records as were considered appropriate we
(i) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
b) The fixed assets of the Company have been physically verified by the
Management during the year and no material discrepancies have been
noticed on such verification. In our opinion, the frequency of
verification is reasonable.
c) The Company has not disposed off any substantial part of its fixed
assets during the year.
(ii) a) As explained to us, management has conducted physical
verification of inventories during the year at reasonable intervals.
b) The procedures of physical verification of the inventories followed
by the management are reasonable and adequate in relation to the size
of the Company and the nature of its business.
c) The Company has maintained proper records of inventories and
discrepancies noticed on physical verification of inventories as
compared to book records were not material.
(iii) a) The Company has neither granted nor taken any loans, Secured
or Unsecured, to companies, firms, or other parties covered in the
register maintained under Section 301 of the Companies Act 1956.
Therefore, the provisions of clause 4(iii) ((b), (c), and (d)/(f) and
(g)) of the said order is not applicable.
(iv) In our opinion and according to the information and explanation
given to us, there is adequate internal control system commensurate
with the size of the company and the nature of its business for the
purchase of fixed assets and inventory and for the sale of services.
Further, on the basis of our examination of the books and records of
the Company, and according to the information and explanations given to
us, we have neither come across, nor have been informed of, any
continuing failure to correct major weaknesses in the aforesaid
internal control system.
(v) a) Based on the audit procedures performed by us, we are of the
opinion that particulars of contracts or arrangements referred to in
Section 301 of the Act have been entered in the register required to be
maintained under that section.
b) The transactions made in pursuance of such contracts or arrangements
have been made at prices which are reasonable having regard to
prevailing market prices at the relevant time.
(vi) The Company has not accepted any deposits from the public.
(vii) In our opinion and as per the information and explanation given
to us, the company has an internal audit system commensurate with the
size and nature of its business.
(viii) We are informed by the management that the Central Government
has not prescribed for maintenance of Cost Records under section 209(1)
(d) of the Companies Act, 1956 for the products of the company.
(ix) a) According to the records of the Company, the undisputed
statuary dues including Provident Fund, Sales Tax, Wealth Tax, Services
Tax, Customs Duty, Excise Duty, and Cess except Income tax have
generally not been regularly deposited with the appropriate
authorities. According to the information and explanations given to us,
there are no undisputed amount payable in respect of such statutory
dues, except Income Tax for Assessment Year 08-09 Rs. 131.73 Lacs, for
Assessment year 09-10 Rs. 1,308.70 Lacs, for Assessment year 10-11 Rs.
852.06 Lacs, for the Assessment Year 11-12 Rs. 41.66 Lacs (as per ITR
or Assessment order), Tds on Salary Rs. 6.78 Lacs, Service Tax Rs. 5.31
Lacs and Provident Fund Rs. 6.71 Lacs which have remained outstanding
as at 31st March, 2012 for the period more than six months from the
date they became payable.
b) According to the information and explanations given to us, the
Company has no dues of Income Tax, Sales Tax, Wealth Tax, Services Tax,
Custom Duty, Excise Duty and Cess which have not been deposited on
account of disputes with the related authorities.
(x) The Company has no accumulated losses at the end of the financial
year, whereas, company has incurred cash losses of Rs. 1511.50 Lacs in
the current financial year.
(xi) In our opinion and according to the information and explanation
given to us the Company has defaulted in repayment of its dues to banks
and financial institutions are as follows:
Sl. Name of Institution Default in Repayment of
No. Term Loan from
1. Union Bank of India Rs. 619.48 Rs. 112.86
2. Working Capital Loan Rs. 10,239.37 Rs. 1,809.45
from State Bank of Lacs Lacs
India, Union Bank
of India, Bank of
Bank and Barclays
Sl. Name of Institution For the month Date of Payment
No. Term Loan from
1. Union Bank of India From May,2011 Not Yet Paid
to March, 2012
2. Working Capital Loan From Jan, 2011 Not Yet Paid
from State Bank of to March, 2012
(xii) The Company has not granted any loans or advances on the basis of
security by way of pledge of Shares, Debentures or Other Securities.
(xiii) The provisions of any Special Statute application to Chit Fund,
Nidhi or Mutual Benefit Fund/Societies are not application to the
(xiv) According to the information and explanation given to us the
company is not dealing or trading in shares, securities, debentures or
(xv) The Company has not given any guarantees for loans taken by others
from banks and financial institutions.
(xvi) The Company has not taken any term loans during the year hence
clause (xvi) of the said order is not applicable.
(xvii) On an overall examination of the balance sheet of the company,
we report that no funds raised on Short - term basis have been used for
Long - term investment.
(xviii) The Company has not made any preferential allotment of Equity
Shares during the year to parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
(xix) The Company has not issued any debentures during the year.
(xx) On the Basis of our examination and according to the information
and explanation given to us, no fraud, on or by the company, has been
noticed or reported during the year.
For G. L. Mangal & Associates
Firm Registration No: 131017W
CA. Girdhari Lal Mangal
Membership No. 076305
Date: 30th May, 2012