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Maha Rashtra Apex Corporation Ltd.

BSE: 523384 Sector: Financials
NSE: MAHAPEXLTD ISIN Code: INE843B01013
BSE 00:00 | 17 Oct 81.00 -1.95
(-2.35%)
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NSE 00:00 | 17 Oct 86.00 2.60
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86.00

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OPEN 79.15
PREVIOUS CLOSE 82.95
VOLUME 1072
52-Week high 144.90
52-Week low 70.35
P/E 89.01
Mkt Cap.(Rs cr) 115
Buy Price 81.00
Buy Qty 100.00
Sell Price 87.00
Sell Qty 410.00
OPEN 79.15
CLOSE 82.95
VOLUME 1072
52-Week high 144.90
52-Week low 70.35
P/E 89.01
Mkt Cap.(Rs cr) 115
Buy Price 81.00
Buy Qty 100.00
Sell Price 87.00
Sell Qty 410.00

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

Company auditors report

To the Members

MAHA RASHTRA APEX CORPORATION LTD

Report on the Standalone Ind AS Revised Financial Statements

We have audited the accompanying standalone Ind AS Revised financial statements of MahaRashtra Apex Corporation Limited ("the Company") which comprise the BalanceSheet as at March 31 2018 the Statement of Profit and Loss (including the statement ofOther Comprehensive Income) the Cash Flow Statement and the Statement of Changes inEquity for the year then ended and a summary of significant accounting policies and otherexplanatory information [hereinafter referred to as "standalone Ind AS RevisedFinancial statements"].

Management's Responsibility for the Standalone Ind AS Revised Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese [standalone] Ind AS Revised financial statements that give a true and fair view ofthe financial position financial performance (including other comprehensive income) cashflows and changes in equity of the Company in accordance with accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) specifiedunder section 133 of the Act. read with [the Companies (Indian Accounting Standards)Rules 2015 as amended and other accounting principles generally 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 the design implementation and maintenance of adequateinternal financial control that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone Ind AS revised financial statements that give a true and fair view and arefree from material misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone Ind AS Revisedfinancial statements based on our audit. We have taken into account the provisions of theAct the accounting and auditing standards and matters which are required to be includedin the audit report under the provisions of the Act and the Rules made thereunder. Weconducted our audit of the standalone Ind AS Revised financial statements in accordancewith the Standards on Auditing issued by the Institute of Chartered Accountants of Indiaas specified under Section 143(10) of the Act. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the IND AS Revised financial statements are free from material misstatement. Anaudit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the IND AS revised financial statements. The procedures selected depend onthe auditor's judgment including the assessment of the risks of material misstatement ofthe standalone Ind AS revised financial statements whether due to fraud or error. Inmaking those risk assessments the auditor considers internal financial control relevantto the Company's preparation of the standalone Ind AS revised financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the standalone Ind AS revisedfinancial statements. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the Ind AS revised financialstatements.

Opinion:

In our opinion and to the best of our information and according to the explanationsgiven to us the Ind AS revised financial statements give the information required by theAct in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at March 31 2018 its profit including other comprehensive income its cash flows andthe changes in equity for the year ended on that date.

Emphasis on Matters:

On revised financial statements:

In forming our Opinion on the revised financial statements which is not qualified wehave considered the disclosure made in note (Refer Note No 1(a)) on Fair Value Gain ofunquoted Equity share which is regrouped from Other Income to Other Comprehensive Incomeand its consequential effect on EPS. The original financial statements were approved bythe board on 30/05/2018 and our previous report was signed on that date.

Further we draw attention to the following:

a. Refer to Note No 31 As per the scheme sanctioned by Honorable High Court ofKarnataka vide order dated 8th October 2004 all Deposit/ Bonds should have been repaid by15.06.2009 and 15.09.2009. The balance outstanding as on date are shortfall of repaymentamounting to Rs.6282.72 Lakhs.

b. the management believe that the accumulated loss of earlier years would beeffectively monitored and paired in due course. The revised financial statements as suchhave been prepared on going concern basis.

c. Fair value of Investments in Associate companies are as furnished by the managementon the basis of unaudited revised financial statements

d. In the opinion of the management Income tax Provision is required to be made on theprofits as per IGAAP.

Our opinion is not modified in respect of the matters as stated in the above paragraph.

Other Matter

The Ind AS revised financial statements of the Company for the year ended March 312017 included in these standalone Ind AS revised financial statements have been auditedby the predecessor auditor who expressed an Qualified opinion on those statements on26.05.2017. The comparative financial information of the Company for the year ended March31 2017 and the transition date opening balance sheet as at April 01 2016 included inthese standalone Ind AS revised financial statements are based on the previously issuedstatutory financial statements prepared in accordance with the accounting principlesgenerally accepted in India including the Companies (Accounting Standards) Rules 2006(as amended) specified under section 133 of the Act read with the Companies (Accounts)Rules 2014 audited by the predecessor auditor whose report for the year ended March312017 and March 31 2016 dated May 26 2017 and May 30 2016 respectively expressed anqualified opinion on those standalone financial statements as adjusted for thedifferences in the accounting principles adopted by the Company on transition to the IndAS which have been audited by us.

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 sub-section (11) of section 143 ofthe Act we give in the Annexure 1 statement on the matters specified in paragraphs 3 and4 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 Statement of Profit and Loss (including the Statement of OtherComprehensive Income) the Cash Flow Statement and Statement of Changes in Equity dealtwith by this Report are in agreement with the books of account;

(d) In our opinion the aforesaid standalone Ind AS Revised financial statements complywith the Indian Accounting Standards specified under section 133 of the Act read withCompanies (Indian Accounting Standards) Rules 2015 as amended;

(e) On the basis of written representations received from the directors as on March 312018 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2018 from being appointed as a director in terms of section 164 (2) ofthe Act;

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company with reference to these standalone Ind AS revised financialstatements and the operating effectiveness of such controls refer to our separate Reportin "Annexure 2" to this report;

(g) 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 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations on its financialposition in its Ind AS revised financial statements – Refer Note 38 On ContingentLiabilities to the Ind AS revised financial statements;

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses].

iii. Refer to Note No.32 The entire deposit liability is covered under the scheme ofarrangement hence the Transfer of unclaimed deposit and remaining unpaid for a period ofexceeding 7 years to Investor Education and Protection Fund the question of delay intransferring such sums does not arise.

For MAIYA AND MAIYA

Chartered Accountants

ICAI Firm Registration Number: 001944S

S/d

RAVI PRASAD K

Partner

Membership Number: 228348

Place of Signature: Bengaluru.

Date: 12th June 2018.

Annexure "1" to the Independent Auditor's Report to the members of Companyfor the year ended 31st March 2018

The Annexure referred to in our Independent Auditors' Report to the members of theCompany on the revised financial statements for the year ended 31st March 2018 we reportthat:

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

(b) i. During the year Fixed assets have been physically verified by the management asinformed no material discrepancies were noticed on such verification; In our opinion thefrequency of verification is reasonable having regard to the size of the Company and thenature of its assets.

ii. In respect of the Assets on lease have not been physically verified by theManagement as most of the assets are under legal proceedings. Material discrepanciesnoticed (if any) on such verification have been properly dealt with in the books ofaccount.

(c) The title deeds of the immovable properties are in the name of the Company.

(ii) 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

(iii) As Informed the company has not granted any loans during the year secured orunsecured to companies firms Limited liability Partnership or other parties covered inthe register maintained under section 189 of the Act. In respect of loans granted inearlier years the repayment of loans is not regular but the company has taken proper stepsfor recovery.

(iv) The Company has not made any Loans requiring compliance of section 185 of theCompanies Act 2013 during the year. In respect of an Investment of 50000 equity shares of`10/- each in M/s Eldorado Investments Company (P) Ltd. a subsidiary company for a saleconsideration of ` 950000/-compliance of Section 186 of the Companies Act 2013 ispending.

(v) The Company has not accepted any deposits from the public covered under Section 73to 76 of the Companies Act 2013

(vi) As informed to us the Company is not required maintain cost records undersub-section (1) of Section 148 of the Act clause not applicable.

(vii) (a) Based on the records of the company examined by us the company is regular indepositing the undisputed statutory dues including Provident Fund Employees' StateInsurance Income-tax Sales-tax Service Tax Goods and Service Tax Custom DutyExcise Duty and other material statutory dues as applicable with the appropriateauthorities in India ;

(b) According to the information and explanations given to us and based on the recordsof the company examined by us there are no dues of Income Tax Service Tax Sales TaxCustoms Duty and Excise Duty which have not been deposited on account of any disputes.Disputed income tax liability amounting to `264.82 lakhs for the Assessment years 1998-99to 2000-01 are pending before CIT(A) for disposal. This demand has raised on account ofdisallowance of depreciation on leased assets and bad debts. The said demand is adjustedagainst refund due to the company. Disputed sales tax amounting to `17.54 lakhs in AndhraPradesh pending for disposal Sales Tax Appellate Tribunal.

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

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

(x) During the course of our examination of the books and records of the Companycarried out 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.

(xi) The Managerial Remuneration paid to its Managing Director is within the limitsspecified under Section 197 read with Schedule V of the Companies Act.

(xii) The Company is Not a Nidhi company and Paragraph 3(xii) of the Order is notapplicable to the Company.

(xiii) The Company has disclosed all transaction with the related parties are incompliance with section 177 and 188 of Companies Act 2013 were applicable and the detailshave been disclosed in the standalone Ind As revised financial statements etc. asrequired by applicable Indian Accounting standards (refer to Note No:26) . However inrespect of Two Associate companies i.e Mangala Investment Limited and Rajmahal Hotels Ltd.in absence of documentary evidence we are unable to comment upon related partytransactions entered in- respect of arm's length price.

(xiv) No private placement or preferential allotment of the shares or debentures weremade during the year.

(xv) The company has not entered into any non-cash transactions with directors orpersons connected with him.

(xvi) The certificate of registration granted to the company to act as Non-BankingFinancial Company as per Section 45-IA of Reserve Bank of India Act 1934 has beencancelled by an order dated 13th June 2002.

For MAIYA AND MAIYA

Chartered Accountants

ICAI Firm Registration Number: 001944S

S/d

RAVI PRASAD K

Partner

Membership Number: 228348

Place of Signature: Bengaluru.

Date: 12th June 2018.

ANNEXURE 1 TO THE INDEPENDENT AUDITOR'S REPORT

Referred to in Paragraph 2 under 'Report on Other Legal and Regulatory Requirements' inthe Independent Auditor's Report of even date to the members of Maha Rashtra ApexCorporation Limited on the Standalone Ind AS Revised Financial Statements for the yearended March 31 2018

Report on the Internal Financial Controls over Financial Reporting under Clause (i) ofSub-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 of March 31 2018 inconjunction with our audit of the Standalone Ind AS Revised Financial Statements of theCompany for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's Management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reporting("the Guidance Note") issued by the Institute of Chartered Accountants of India("ICAI").

These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Act.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note and the Standards on Auditing specified under section 143(10) ofthe Act to the extent applicable to an audit of internal financial controls both issuedby the ICAI. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects. Our auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Company's internal financial controls system over financialreporting.

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 generally accepted accountingprinciples. A company's internal financial control over financial reporting includes thosepolicies and procedures that (1) pertain to the maintenance of records that in reasonabledetail accurately and fairly reflect the transactions and dispositions of the assets ofthe company; (2) provide reasonable assurance that transactions are recorded as necessaryto permit preparation of financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorisations of management and directors of the company; and (3)provide reasonable assurance regarding prevention or timely detection of unauthorizedacquisition use or disposition of the company's assets that could have a material effecton the financial statements.

Inherent 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 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 the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2018 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the ICAI.

For MAIYA AND MAIYA

Chartered Accountants

ICAI Firm Registration Number: 001944S

S/d

RAVI PRASAD K

Partner

Membership Number: 228348

Place of Signature: Bengaluru.

Date: 12th June 2018.