TO THE MEMBERS
MAHARASHTRA POLYBUTENES LIMITED
We have audited the accompanying financial statements of MAHARASHTRA POLYBUTENES
LIMITED (The Company), which comprise the Balance Sheet as at March 31, 2016 and
the Statement of Profit and Loss and Cash Flow Statement for the year ended on that date,
and a summary of significant accounting policies and other explanatory information.
Managements Responsibility for the Financial Statements
Companys Board of Director is responsible for the matters stated in Section 134(5) of
The Companies Act, 2013 (The Act), with respect to the preparation of these financial
statements that give a true and fair view of the financial position, financial performance
and cash flows of the Company in accordance with the Accounting Standards notified under
Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This
responsibility also includes the 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 judgement and estimates that are reasonable and
prudent; and design, and implementation and maintenance of adequate internal financial
controls that were operating effectively for ensuring the accuracy and completeness of the
accounting records relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material misstatement, whether
due to fraud or error.
Auditors Responsibility
Our responsibility is to express an opinion on these financial statements based on our
audit
We have taken into account the provisions of the Act, the accounting and auditing
standards and matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under
Section 143 (10) of the Act. Those Standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosure in the financial statements. The procedures selected depend on the auditors
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal financial controls relevant to the Companys preparation of the
financial statements that give a true view in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting estimates made by the
Companys Directors, as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Financial Statement.
Opinion
In our opinion and to the best of our information and according to the explanations
given to us, the financial statements give the information required by the Act in the
manner so required and give a true and fair view in conformity with the accounting
principles generally accepted in India:
(a) in the case of the Balance Sheet of the state of affairs of the Company as at March
31, 2016 ;
(b) in the case of the Profit and Loss Account, of the Loss for the year ended on that
date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the year ended on
that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order 2016, issued by the Central
Government of India in terms of sub section 11 of section 143 of the Act hereinafter
referred to as the "Order", and on the basis of such checks of the Books and
records of the company as we considered appropriate and according to the information and
explanations given to us we give in the Annexure 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 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 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, and Cash Flow Statement dealt
with by the Report are in agreement with the books of account and returns.
d. In our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt by this report comply with the Accounting Standards specified under
section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules, 2014.
e. On the basis of written representation received from the directors as on March 31,
2016, and taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 2016, from being appointed as a director in terms of Section 164(2) of The
Act.
f. In our opinion, the Company has, in all material respects, an adequate internal
financial control system over financial reporting and such internal financial controls
were operating effectively as at 31st March 2016, 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
Control Over Financial Reporting issued by the Institute of Chartered Accountants of
India.
3. 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 explanation given to us:
(i) The Company has the following litigation pending which may impact Companys
financial position:
a. One of the debtors of the Company i.e. Bharat Petroleum Corporation Limited (BPCL)
owes the Company a sum of Rs. 1,52,74,105 as at 31st March, 2016 for supply of
Companys products to them. BPCL has withheld this payment on account of risk purchase.
The Company has moved the Sole Arbitrator of BPCL to claim the amount so withheld by BPCL.
The Company maintains that the Company is entitled to recover the entire amount and hence
no provisioning is required.
b. One creditor of the Company has initiated a recovery and liquidation suit against
the company for a sum of Rs. 89,91,021. The Company Management maintains that sufficient
amount is provided for and no further provisioning is required in this regard.
c. In another case, one of the creditors of the Company has moved the court for a
recovery suit of Rs. 40,57,122, sufficient amount is provided for and no further
provisioning is required.
d. Take this note to Notes on Accounts
The Company had taken working capital loans from bank. Due to Companys inability to
service the interest the bank has classified the debts as Non Performing Asset (NPA) as
per RBI guidelines. The management is taking appropriate action to resolve this matter.
Interest has been provided up to 31st March, 2016.
(ii) The Company did not have any long term contracts including derivative contracts
for which there are any 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.
|
FOR BKG & ASSOCIATES |
|
CHARTERED ACCOUNTANTS |
|
Firm Reg. No.: 114852W |
|
(CA. B.K. Gupta) |
| Place: Mumbai |
Partner |
| Dated: 19th May, 2016. |
Membership No.: 040889 |
ANNEXURE TO THE AUDITORS REPORT
The Annexure referred to in our report to the members of Maharashtra Polybutenes
Limited for the year ended on 31st March 2016.
In terms of the information and explanation sought by us and given by the company and
the books and records examined by us in the normal course of our audit and to the best of
our knowledge and belief we report that:
1. In respect of its Fixed Assets:
(i) The company is maintaining proper records showing full particulars, including
quantitative details and situation of fixed assets;
(ii) Fixed assets have been physically verified by the management during the year and
no material discrepancies were identified on such verification.
(iii) Title deeds of the immoveable properties are held in the name of the Company.
2. In respect of its Inventories:
(a) The Inventory has been physically verified during the year by the management at
reasonable intervals, discrepancies noticed on such physical verification have been dealt
with in the books of accounts.
3. In respect of loans covered u/s 189:-
(a) The Company had granted unsecured advances to parties covered in the register
maintained under section 189 of The Companies Act 2013.
(b) The loans granted were re-payable on demand. As informed, repayment have been made
during the year whenever demanded by us.
(c) Wherever stipulated, interest and principal have been received regularly. There
were no overdue of principal and interest for more than 90 days.
4. In respect of Loans, investment, guarantees and securities the provisions of section
185 and 186 of the Companies Act 2013 have been complied with.
5. The company has not accepted any deposits during the year.
6. Company has maintained the cost records pursuant to the rules made by the Central
Government for the maintenance of cost records under Section 148(1) Companies Act, 2013.
7. (a) The company has generally been not regular in depositing liability towards
undisputed statutory dues including Provident Fund, Employees State Insurance, Income tax,
Service Tax, Duty of Custom, Duty of Excise, Value added Tax, cess and any other statutory
dues with the appropriate authorities. However the following are the taxes etc which have
remained outstanding for more than six month as on the date of the Balance Sheet i.e.
31-03-2016.
| Nature of statute |
Nature of the Dues |
AmountRs. |
Period for which the amount relates |
| Income Tax |
Tax Dues |
3892150 |
2009-10 |
| Income Tax |
Tax Due |
88,17,679 |
2011-12 |
| Income Tax |
Tax due |
5,80,100 |
2012-13 |
| TDS |
TDS |
2,47,373 |
2014-15 |
| MVAT |
Tax due |
7,34,615 |
2013-14 |
| MVAT |
Tax due |
16,537 |
2014-15 |
| MVAT |
Tax due |
1,22,16,503 |
2015-16 |
| PF / ESIC |
Dues |
10,31,447 |
Up to 2015-16 |
(b) There are no dues of income tax or wealth tax or service tax or duty of customs or
duty of excise or value added tax or cess, which have not been deposited on account of
dispute.
(c) The Company had taken working capital loans from Central Bank of India. Due to
Companys inability to service the interest the bank has classified the debts as Non
Performing Asset (NPA) as per RBI guidelines. The bank has recalled the Loan vide letter
dated 18/03/2016. Total outstanding loan is Rs. 17,06,23,482 of which Rs. 15,00,00,000 are
towards principal and Rs. 2,06,23,482 are towards interest. The management is taking
appropriate action to resolve this matter. Interest has been provided for up to 31st
March, 2016.
8. The Company has not raised any money by way of initial public offering or further
public offer (including debt instruments) and term loans during the year.
9. To the best of our knowledge and belief and according to the information and
explanations given to us, no fraud on or by the company was noticed or reported during the
year.
10. Managerial remuneration has been provided in accordance with the requisite
approvals mandated by the provisions of section 197 read with Schedule V to the Companies
Act.
11. All the transactions with the related parties are in compliance with section 177
and 188 of theCompanies Act, 2013 where applicable and details have been disclosed in the
Financial statement as required by the applicable accounting standards.
12. The Company is not a Nidhi Company as specified in Nidhi Rules, 2014.
13. The Company has not made any Preferential /private placement of shares or private
placement of fully or partly convertible debentures during the year under review.
14. The Company has not entered into any non-cash transactions with directors and
persons concerned with them 15. The Company is not required to be registered under section
45-IA of the Reserve Bank of India Act, 1934.
|
FOR BKG & ASSOCIATES |
|
CHARTERED ACCOUNTANTS |
|
Firm Reg. No.: 114852W |
|
(CA. B.K. Gupta) |
| Place: Mumbai |
Partner |
| Dated: 19th May, 2016. |
Membership No.: 040889 |
+91-9892691696
