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Maha Rashtra Apex Corporation Ltd.

BSE: 523384 Sector: Financials
NSE: MAHAPEXLTD ISIN Code: INE843B01013
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OPEN 76.40
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VOLUME 421
52-Week high 126.00
52-Week low 71.10
P/E 27.00
Mkt Cap.(Rs cr) 108
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 76.40
CLOSE 77.85
VOLUME 421
52-Week high 126.00
52-Week low 71.10
P/E 27.00
Mkt Cap.(Rs cr) 108
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Maha Rashtra Apex Corporation Ltd. (MAHAPEXLTD) - Auditors Report

Company auditors report

To the Members of MAHA RASHTRA APEX CORPORATION LIMITED Report on the Audit of theFinancial Statements

Qualified Opinion

We have audited the financial statements of MAHA RASHTRA APEX CORPORATION LIMITED("the Company") which comprise the balance sheet as at March 31 2021 and thestatement of Profit and Loss (Including Other Comprehensive Income) the statement of cashflows and Statement of Changes in Equity for the year then ended and notes to thefinancial statements including a summary of significant accounting policies and otherexplanatory information. (hereinafter refer to standalone financial statements).

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matter described in the Basis for QualifiedOpinion section of our report aforesaid the financial statements give the informationrequired by the companies Act 2013 ("the Act") in the manner so required andgive a true and fair view in conformity with (Indian Accounting Standards Prescribe underSection 133 of the Act read with the companies (Indian Accounting Standards) Rules2015as amended (Ind AS) and other accounting principles generally accepted in India of stateof affairs of the Company as at March 312021 and its Loss total comprehensive incomeits cash flows and the changes in equity for the year ended on that date.

Basis for Qualified Opinion a. The Company has not provided for delayed periodinterest cost from October 2019 as per the scheme sanctioned by Honorable High Court ofKarnataka for the year ending 31st March 2021 amounting to Rs 73.92 Lakhs to that extentprofit is overstated and Liability is understated and cumulative Interest cost up to 31stMarch 2021 amounting to Rs 111.38 Lakhs Not Provided in the books of accounts. b.Investment in one of Associate Kurlon Limited not shown at fair value as at 31st March2021 in absence of audited statement we are unable to quantify the effect on the valueof Investment and other comprehensive Income and corresponding figures are incomparable.We conducted our audit in accordance with Standards on Auditing (SAs) specified undersection 143(10) of the Companies Act 2013. Our responsibilities under those Standards arefurther described in the Auditor's Responsibilities for the Audit of the FinancialStatements section of ou r report. We are independent of the Company in accordance withthe Code of Ethics issued by the Institute of Chartered Accountants of India together withthe ethical requirements that are relevant to our audit of the financial statements underthe provisions of the Companies Act 2013 and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the ICAI's Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our qualified opinion on the financial statements.

Emphasis of Matter a) We draw attention to Note: 2(b) of the Notes accompanyingStandalone Financial Statement as regards the management's evaluation of uncertaintiesrelated to COVID-19 and its consequential effects on the carrying value of the assets asat March 31 2021 and operations of the Company. b) As per the scheme sanctioned byHonourable High Court of Karnataka vide order dated 8 th October 2004 all Deposit/ Bondsshould have been repaid by 15.09.2009/15.06.2009. The balance outstanding as on date areshortfall of repayment is Rs 4874.98 Lakhs. c) RBI has cancelled the Certificate ofRegistration Granted to the company to Act as NonBanking Financial Company by its orderdated 13th June 2002. d) Unpaid creditors being outstanding Bonds / Deposit with Interestunder Other Financial Liability-Current Includes Rs 570.68 Lakhs Deposit/Bonds andCheques Issued Pending Realisation year wise/ Instalment wise reconciliation not producedfor ver ification. e) Company entered in to agreement for Sale of Property with KurlonLimited / Kurlon Enterprises Limited Total Amount Credited up to 31-03-2021 is Rs 1273.37Lakhs. Out of which Rs 300.95 Lakhs Kurlon Limited / Kurlon Enterprises Limited Directlysettled Maha Rashtra Apex Bonds / Deposit liability is also adjusted towards Advance forProperty purchase. Our conclusion is not modified in respect of (a) to (e) of aboveparagraph

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters. Wehave determined that there are no key audit matters to communicate in our report.Information Other than the Financial Statements and Auditor's Report Thereon The company'sBoard of Directors is responsible for the other information. The other informationcomprises the information included in the Management Discussion and Analysis Board 'sReport including Annexures to Board's Report Business Responsibility Report CorporateGovernance and Shareholder's Information but does not include the standalone financialstatements and our auditor's report thereon. These are expected to be made available to usafter the date of this auditor's report.

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

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. As describedin the Basis for Qualified Opinion section above we have nothing to this regard.

Management's responsibility for the financial statements

The Company's board of directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these financial statements that give atrue and fair view of the financial position financial performance including othercomprehensive income cash flows and changes in equity of the Company in accordance withthe Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act read withthe Companies (Indian Accounting Standards) Rules 2015 and Companies (Indian AccountingStandards) Rules 2016 as amended from time to time and other accounting principlesgenerally accepted in India.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statement that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

The board of directors are also responsible for overseeing the Company's financialreporting process.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also: l Identify and assess therisks of material misstatement of the financial statements whether due to fraud or errordesign and perform audit procedures responsive to those risks and obtain audit evidencethat is sufficient and appropriate to provide a basis for our opinion. The risk of notdetecting a material misstatement resulting from fraud is higher than for one resultingfrom error as fraud may involve collusion forgery intentional omissionsmisrepresentations or the override of internal control. l Obtain an understanding ofinternal control relevant to the audit in order to design audit procedures that areappropriate in the circumstances. Under section 143(3)(I) of the Companies Act 2013 weare also responsible for expressing our opinion on whether the company has adequateinternal financial controls system in place and the operating effectiveness ofsuchcontrols l Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management. lConclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related toevents or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe 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 auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern. l Evaluate the overall presentation structure and content of thefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit. We alsoprovide those charged with governance with a statement that we have complied with relevantethical requirements regarding independence and to communicate with them allrelationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards. From the matters communicated withthose charged with governance we determine those matters that were of most significancein the audit of the financial statements of the current period and are therefore the keyaudit matters.

We describe these matters in our auditor's report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Other Matters

1. Manipal Raj Mahal Hotels Ltd. is no longer an associate of the company hencecorresponding previous year figures regrouped.

2. Refer to Note No 36 in respect of an investment of 50000 equity shares of Rs.10/-each in M/s Eldorado Investments Company (P) Ltd. a subsidiary company physical sharesnot produced for verification.

Our opinion is not modified in respect of other matters.

Report on other legal and regulatory requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of subsection (11) of section 143 ofthe Companies Act 2013 we give in Annexure "A" a statement on the mattersspecified in paragraphs 3 and 4 of theOrder.

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 purposes of our audit; (b) Except forthe effect of the matters described in the Basis for Qualified Opinion paragraph above inour opinion proper books of account as required by law have been kept by the Company sofar as it appears from our examination of those books; (c) The balance sheet thestatement of profit and loss and the cash flow statement dealt with by this report are inagreement with the books of account; (d) Except for the effects of the matter described inthe Basis for Qualified Opinion paragraph above in our opinion the aforesaid financialstatements comply with the accounting standards specified under section 133 of the Actread with rule 7 of the Companies (Accounts) Rules 2014; (e) On the basis of the writtenrepresentations received from the directors as on March 31 2021 taken on record by theboard of directors none of the directors is disqualified as on March 31 2021 from beingappointed as a director in terms of Section 164 (2) of the Act; (f) With respect to theadequacy of the internal financial controls over financial reporting of the Company andthe operating effectiveness of such controls refer to our separate report in"Annexure B". Our report expresses an unmodified opinion on the adequacy andoperating effectiveness of the Company's internal financial controls over financialreporting; (g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197 (16) of the Act as amended in ouropinion and to the best of our information and according to the explanations given to usthe remuneration paid by the Company to its directors during the year is in accordancewith the provisions of section 197 of the Act; and (h) With respect to the other mattersto be included in the Auditor's Report in accordance with Rule 11 of the Companies (Auditand Auditors) Rules 2014 in our opinion and to the best of our information and accordingto the explanations given to us; a. The Company has disclosed the impact of pendinglitigations on its financial position in its financial statements –ReferNote 38 tothefinancial statements; b. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses; and c. Refer toNote No 31. The entire deposit liability is covered under the scheme of arrangement hencethe transfer of unclaimed deposit and remaining unpaid for a period of exceeding 7 yearsto Investor Education and Protection fundthe question of delay in transferring such sumsdoes not arise.

FOR MAIYA AND MAIYA
Chartered Accountants
Firm Registration No: 001944S
RAVI PRASAD K
PARTNER
MEMBER SHIP NO: 228348
UDIN: 21228348AAAAAL5538
PLACE: UDUPI.
DATE: 29/06/2021.

Annexure "A" to the Independent Auditor's Report*

(Referred to in paragraph 1 under ‘Report on other legal and regulatoryrequirements' section of our report to the members of

MAHA RASHTRA APEX CORPORATION LIMITED of even date)

1. In respect of the Company's fixed assets:

(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The fixed assets of the Company were physically verified in full by the managementduring the year. According to the information and explanations given to us and as examinedby us no material discrepancies were noticed on such verification. In respect of Assetson lease have not been physically Verified by the management as most of the assets areunder legal proceedings. Material discrepancies noticed (if any) on such verification havebeen property dealt with in the books of accounts. (c) According to the information andexplanations given to us the records examined by we report that the title deedscomprising all the immovable properties of land and buildings which are freehold are heldin the name of the Company as at the balance sheet date.

2. The nature of business of the company does not require it to have any inventory.Hence the requirement of clause (ii) of paragraph 3 of the said order is not applicableto the company.

3. According to information and explanation given to us the company has not grantedany loan secured or unsecured to companies firms limited liability partnerships orother parties covered in the register required under section 189 of the Companies Act2013. In respect of loans granted earlier years the repayment of loans is not regular butthe company has taken proper steps to recover the same.

4. In our opinion and according to information and explanation given to us the companyhas not granted any loans or provided any guarantees or given any security or made anyinvestments to which the provision of section 185 and 186 of the Companies Act 2013.Accordingly paragraph 3 (iv) of the order is not applicable.

5. In our opinion and according to the information and explanations given to us thecompany has not accepted any deposits and accordingly paragraph 3 (v) of the order is notapplicable.

6. The Central Government of India has not prescribed the maintenance of cost recordsunder sub-section of section 148 of the Act for any of the activities of the company andaccordingly paragraph 3 (vi) of the order is not applicable.

7. In respect of statutory dues:

(a) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including provident fund employees' stateinsurance income-tax State Tax Goods and Service Tax Custom duty Excise duty andother material statutory dues as applicable with appropriate authorities in India (b)According to Information and expiations given to us and based on the records of thecompany examined by us there are no dues of Income tax service tax Sales tax customduty and excise duty which have not been deposited to any disputes. Except Advance Tax 1stInstalment amounting to Rs. 8.28 Lakhs and disputed sales tax amounting to Rs 17.54 Lakhsin Andhra Pradesh pending for disposal sales tax appellate Tribunal.

8. The Company has not borrowed loans from Banks Financial institution governmentauthorities. In respect of Debenture interest accrued there on up to 31.03.2002 thecompany is in the process of repayment as per the scheme of compromise and arrangementsanctioned by the Honorable High Court of Karnataka dated 8th October 2004.

9. As Informed the company has not raised money by way of Initial Public offer/Further Public Offer (Including debt Instrument) during the year.

10. During the course of our examination of the books and records of the companycarriedout in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of fraud by the company or any fraud on the company by its officers or employeesnoticed or reported during the year nor have we been informed of any such instance by themanagement.

11. In our opinion and according to the information and explanations given to us theCompany has paid/ provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the Act.

12. The Company is not a Nidhi Company and accordingly paragraph 3 (xii) of the orderis not applicable to the Company.

13. According to the information and explanations given to us and based on ourexamination of the records of the company transactions with the related parties are incompliance with section 177 and 188 of the Act. Where applicable the details of suchtransactions have been disclosed in the financial statements as required by the applicableIndian accounting standards (Ind AS) However In respect of advance from Kurlon limited inabsence of adequate evidence we are unable to comment upon related party transactionentered in respect of arm's length price.

14. According to the information and explanations given to us and based on ourexamination of the records of the company the company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

15. According to the information and explanations given to us and based on ourexamination of the records of the company the company has not entered into non-cashtransactions with directors or persons connected with them. Accordingly paragraph 3(xv)of the order is not applicable.

16 . The Certificate of registration granted to the company as Non-Banking Financialcompany under section 45-IA of the Reserve

Bank of India Act 1934 has been cancelled by an order dated 13th June 2002.

FOR MAIYA AND MAIYA
Chartered Accountants
Firm Registration No: 001944S
RAVI PRASAD K
PARTNER
MEMBER SHIP NO: 228348
UDIN: 21228348AAAAAL5538
PLACE: Udupi.
DATE: 29/06/2021.

Annexure "B" to the Independent Auditor's Report

(Referred to in paragraph 2 (f) under ‘Report on other legal and regulatoryrequirements' section of our report to the Members of MAHA RASHTRA APEX CORPORATIONLIMITED of even date) Report on the internal financial controls over financialreporting 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 MAHARASHTRA APEX CORPORATION LIMITED ("the Company") as at March 31 2021 inconjunction with our audit of the financial statements of the Company for the year endedon that date.

Management's responsibility for internal financial controls

The board of directors of the Company is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditors' responsibility

Our responsibility is to express an opinion on the internal financial controls overfinancial reporting of the Company based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") issued by the Institute of Chartered Accountantsof India and the standards on auditing prescribed under Section 143 (10) of the CompaniesAct 2013 to the extent applicable to an audit of internal financial controls. Thosestandards and the guidance note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting were established and maintained and if suchcontrols operated effectively in all material respects. Our audit involves performingprocedures to obtain audit evidence about the adequacy of the internal financial controlssystem over financial reporting and their operating effectiveness. Our audit of internalfinancial controls over financial reporting included obtaining an understanding ofinternal financial controls over financial reporting assessing the risk that a materialweakness exists and testing and evaluating the design and operating effectiveness ofinternal control based on the assessed risk. The procedures selected depend on theauditor's judgement including the assessment of the risks of material misstatement in thefinancial statements whether due to fraud or error. We believe that the audit evidence wehave obtained is sufficient and appropriate to provide a basis for our audit opinion onthe Company's internal financial control system over financial reporting.

Meaning of internal financial controls over financial reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (i) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (ii) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (iii) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Limitations of internal financial controls over financial reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management of override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion and according to the information and explanations given to us theCompany has in all material respects an adequate internal financial control system overfinancial reporting and such internal financial controls over financial reporting wereoperating effectively as at March 31 2021 based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India.

FOR MAIYA AND MAIYA
Chartered Accountants
Firm Registration No: 001944S
RAVI PRASAD K
PARTNER
MEMBER SHIP NO: 228348
UDIN: 21228348AAAAAL5538
PLACE: Udupi.
DATE:29/06/2021.

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