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Maharashtra Polybutenes Ltd.

BSE: 524232 Sector: Industrials
NSE: N.A. ISIN Code: INE488E01037
BSE 00:00 | 04 Mar Maharashtra Polybutenes Ltd
NSE 05:30 | 01 Jan Maharashtra Polybutenes Ltd
OPEN 3.00
52-Week high 3.00
52-Week low 0.00
Mkt Cap.(Rs cr) 47
Buy Price 0.00
Buy Qty 0.00
Sell Price 2.99
Sell Qty 200.00
OPEN 3.00
CLOSE 3.00
52-Week high 3.00
52-Week low 0.00
Mkt Cap.(Rs cr) 47
Buy Price 0.00
Buy Qty 0.00
Sell Price 2.99
Sell Qty 200.00

Maharashtra Polybutenes Ltd. (MAHPOLYBUTENES) - Auditors Report

Company auditors report



We have audited the accompanying financial statements of MAHARASHTRA POLYBUTENESLIMITED (The Company) which comprise the Balance Sheet as at March 31 2016 andthe Statement of Profit and Loss and Cash Flow Statement for the year ended on that dateand a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

Company's Board of Director is responsible for the matters stated in Section 134(5) ofThe Companies Act 2013 (The Act) with respect to the preparation of these financialstatements that give a true and fair view of the financial position financial performanceand cash flows of the Company in accordance with the Accounting Standards notified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding of the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgement and estimates that are reasonable andprudent; and design and implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143 (10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosure in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial controls relevant to the Company's preparation of thefinancial statements that give a true view in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made by theCompany's Directors as well as evaluating the overall presentation of the financialstatements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Financial Statement.


In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:

(a) in the case of the Balance Sheet of the state of affairs of the Company as at March31 2016 ;

(b) in the case of the Profit and Loss Account of the Loss for the year ended on thatdate; and

(c) in the case of the Cash Flow Statement of the cash flows for the year ended onthat date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 issued by the CentralGovernment of India in terms of sub section 11 of section 143 of the Act hereinafterreferred to as the "Order" and on the basis of such checks of the Books andrecords of the company as we considered appropriate and according to the information andexplanations given to us we give in the Annexure a statement on the matters specified inparagraphs 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 bestof 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 theCompany 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 dealtwith 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 FlowStatement dealt by this report comply with the Accounting Standards specified undersection 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 312016 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2016 from being appointed as a director in terms of Section 164(2) of TheAct.

f. In our opinion the Company has in all material respects an adequate internalfinancial control system over financial reporting and such internal financial controlswere operating effectively as at 31st March 2016 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControl Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

3. With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand 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 Company'sfinancial position:

a. One of the debtors of the Company i.e. Bharat Petroleum Corporation Limited (BPCL)owes the Company a sum of Rs. 15274105 as at 31st March 2016 for supply ofCompany's 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 henceno provisioning is required.

b. One creditor of the Company has initiated a recovery and liquidation suit againstthe company for a sum of Rs. 8991021. The Company Management maintains that sufficientamount 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 arecovery suit of Rs. 4057122 sufficient amount is provided for and no furtherprovisioning is required.

d. Take this note to Notes on Accounts

The Company had taken working capital loans from bank. Due to Company's inability toservice the interest the bank has classified the debts as Non Performing Asset (NPA) asper 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 contractsfor which there are any material foreseeable losses.

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

Firm Reg. No.: 114852W
(CA. B.K. Gupta)
Place: Mumbai Partner
Dated: 19th May 2016. Membership No.: 040889


The Annexure referred to in our report to the members of Maharashtra PolybutenesLimited for the year ended on 31st March 2016.

In terms of the information and explanation sought by us and given by the company andthe books and records examined by us in the normal course of our audit and to the best ofour knowledge and belief we report that:

1. In respect of its Fixed Assets:

(i) The company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets;

(ii) Fixed assets have been physically verified by the management during the year andno 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 atreasonable intervals discrepancies noticed on such physical verification have been dealtwith 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 registermaintained under section 189 of The Companies Act 2013.

(b) The loans granted were re-payable on demand. As informed repayment have been madeduring the year whenever demanded by us.

(c) Wherever stipulated interest and principal have been received regularly. Therewere no overdue of principal and interest for more than 90 days.

4. In respect of Loans investment guarantees and securities the provisions of section185 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 CentralGovernment 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 towardsundisputed statutory dues including Provident Fund Employees State Insurance Income taxService Tax Duty of Custom Duty of Excise Value added Tax cess and any other statutorydues with the appropriate authorities. However the following are the taxes etc which haveremained 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 8817679 2011-12
Income Tax Tax due 580100 2012-13
TDS TDS 247373 2014-15
MVAT Tax due 734615 2013-14
MVAT Tax due 16537 2014-15
MVAT Tax due 12216503 2015-16
PF / ESIC Dues 1031447 Up to 2015-16

(b) There are no dues of income tax or wealth tax or service tax or duty of customs orduty of excise or value added tax or cess which have not been deposited on account ofdispute.

(c) The Company had taken working capital loans from Central Bank of India. Due toCompany's inability to service the interest the bank has classified the debts as NonPerforming Asset (NPA) as per RBI guidelines. The bank has recalled the Loan vide letterdated 18/03/2016. Total outstanding loan is Rs. 170623482 of which Rs. 150000000 aretowards principal and Rs. 20623482 are towards interest. The management is takingappropriate action to resolve this matter. Interest has been provided for up to 31stMarch 2016.

8. The Company has not raised any money by way of initial public offering or furtherpublic offer (including debt instruments) and term loans during the year.

9. To the best of our knowledge and belief and according to the information andexplanations given to us no fraud on or by the company was noticed or reported during theyear.

10. Managerial remuneration has been provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct.

11. All the transactions with the related parties are in compliance with section 177and 188 of theCompanies Act 2013 where applicable and details have been disclosed in theFinancial 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 privateplacement of fully or partly convertible debentures during the year under review.

14. The Company has not entered into any non-cash transactions with directors andpersons concerned with them 15. The Company is not required to be registered under section45-IA of the Reserve Bank of India Act 1934.

Firm Reg. No.: 114852W
(CA. B.K. Gupta)
Place: Mumbai Partner
Dated: 19th May 2016. Membership No.: 040889