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Mysore Petro Chemicals Ltd.

BSE: 506734 Sector: Industrials
NSE: MYSORPETRO ISIN Code: INE741A01011
BSE 00:00 | 22 Jun 101.20 1.20
(1.20%)
OPEN

93.00

HIGH

102.45

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93.00

NSE 05:30 | 01 Jan Mysore Petro Chemicals Ltd
OPEN 93.00
PREVIOUS CLOSE 100.00
VOLUME 47
52-Week high 183.00
52-Week low 85.05
P/E 11.71
Mkt Cap.(Rs cr) 67
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 93.00
CLOSE 100.00
VOLUME 47
52-Week high 183.00
52-Week low 85.05
P/E 11.71
Mkt Cap.(Rs cr) 67
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Mysore Petro Chemicals Ltd. (MYSORPETRO) - Auditors Report

Company auditors report

TO THE MEMBERS OF MYSORE PETRO CHEMICALS LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements ofMysore Petro ChemicalsLimited ("the Company") which comprise the Balance Sheet as at 31stMarch2017 the Statement of Profit and Loss the Cash Flow Statement for the year then endedand a summary of the significant accounting policies and other explanatory information.

Management’s Responsibility for the 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 financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities;selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

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 accordancewith the Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement. An audit involves performing procedures to obtain audit evidence about theamounts and the disclosures in the financial statements. The procedures selected depend onthe auditor’s judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. In making thoserisk assessments the auditor considers internal financial control relevant to theCompany’s preparation of the financial statements that give a true and fair view inorder to design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company’s Directors as wellas evaluating the overall presentation of the financial statements.

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

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at31stMarch 2017 and its profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofSection 143 of the Act and on the basis of such checks of the books and records of theCompany as we considered appropriate and according to the information and explanationsgiven to us during the course of audit we give in the Annexure ‘A’ a statementon the matters specified in the 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 bestof our knowledge and belief were necessary for the purposes 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 the Cash Flow Statementdealt with by this Report are in agreement with the books of account.

(d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

(e) On the basis of the written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in terms of Section164 (2) of the Act.

(f) As required by Section 143(3)(i) of the Companies Act 2013 and based on thechecking of the books and records of the Company as we considered appropriate andaccording to the information and explanations given to us we give our separate report inAnnexure B with respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls.

(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 in our opinionand to the best of our information and according to the explanations given to us: i. TheCompany has disclosed the impact of pending litigations on its financial position in itsfinancial statements. ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses. iii. There wereno amounts which were required to be transferred to the Investor Education and ProtectionFund by the Company. iv. The Company has provided requisite disclosures in its financialstatements as to holdings as well as dealings in Specified Bank Notes during the periodfrom November 08 2016 to December 30 2016 – Refer Note 30 to the financialstatements. However we are unable to obtain sufficient and appropriate audit evidence toreport on whether the disclosures are in accordance with books of account maintained bythe Company and as produced to us by the Management.

For Hariharan & Co.
Chartered Accountants
Firm’s Registration No. 001083S
K Nagarajan
Partner
Membership No.: 16398
Place: Mumbai
Date : 4th May2017

Annexure "A" referred to in paragraph 1 under the heading "Report onother legal and regulatory requirements" of our report of even date on the FinancialStatements of Mysore Petro Chemicals Limited for the year ended 31st March 2017

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

(b) The fixed assets have been physically verified by the management according to theprogramme of periodical physical verification in phased manner which in our opinion isreasonable having regard to the size of the Company and the nature of its fixed assets.The discrepancies noticed on such physical verification were not material.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

2. The inventory of the Company have been physically verified by the management atreasonable intervals. In respect of stock lying with third parties the same have beensubstantially confirmed/checked with subsequent receipts. No material discrepancies werenoticed on physical verification.

3. The Company has not granted any loan secured or unsecured to any companies firms orother parties covered in the register maintained under Section 189 of the Companies Act2013. Accordingly the provisions of Clause 3(iii) (a) & (b) of the Order are notapplicable.

4. According to the information explanations and representations provided by themanagement and based upon audit procedures performed we are of the opinion that inrespect of investments and guarantees given the Company has complied with the provisionsof the Section 185 and 186 of the Companies Act 2013.

5. In our opinion and according to the information and explanations given to us theCompany has not accepted any Deposits from the public within the meaning of provisions ofSection 73 to 76 of the Act or any relevant provisions of the Act and the rules framedthere under.

6. On the basis of Information furnished the maintenance of cost records has not beenspecified by the Central Government under sub section (1) of section 148 of the CompaniesAct 2013.

7. (a) According to the records of the Company the Company is generally regular indepositing undisputed statutory dues including provident fund employees’ stateinsurance income tax sales-tax service tax duty of customs duty of excise valueadded tax cess and other material statutory dues with the appropriate authorities to theextent applicable and there are no undisputed statutory dues payable for a period of morethan six months from the date they become payable as at 31st March 2017.

(b) According to the records and information & explanations given to us there areno material dues in respect of duty of customs or duty of excise or value added tax thathave not been deposited with the appropriate authorities on account of any dispute and thedues in respect of sales tax and service tax that have not been deposited with theappropriate authority on account of dispute and the forum where the dispute is pending aregiven below: -

Nature of statute Nature of dues Amount disputed Period to which Forum where
( Rs in Lakhs) the amount dispute is
relates pending
Karnataka Special Sales Tax 23.98 2008-09 Karnataka High
Entry Tax Act 2004 Court
Central Excise Act Service Tax 17.58 Dec’ 2008 to CESTAT
1944 Mar’ 2016

8. In our opinion on the basis of audit procedures and according to the informationand explanations given to us the Company does not have any dues to Banks financialinstitutions or debenture holders.

9. On the basis of information and explanations given to us term loan were applied forthe purpose for which the loans were obtained. No moneys have been raised during the yearby way of initial public offer or further public offer (including debt instruments).

10. Based on the audit procedure performed and on the basis of information andexplanations provided by the management no fraud by the Company and no material fraud onthe Company by its officers or employees has been noticed or reported during the course ofthe audit.

11. According to the information and explanations give to us and based on ourexamination of the records of the Companymanagerial remuneration has been paid orprovided inaccordance with the requisite approvals mandated by the provisions of Section197 read with Schedule V to the Companies Act. 12. In our opinion and according to theinformation and explanations given to us the Company is not a nidhi company. Accordinglyparagraph 3(xii) of the Order is not applicable.

13. According to the information and explanations and records made available by themanagement of the Company and audit procedure performed for transactions with the relatedparties during the yearthe Company has complied with the provisions of Section 177 and188 of the Act where applicable. As explained and as per records details of relatedparty transactions have been disclosed in the financial statements as per the applicableAccounting Standards.

14. According to the information and explanations given to us the Company has not madeany preferential allotment or private placement of shares or fully or partly convertibledebentures during the year. 15. On the basis of records made available to us and accordingto information and explanations given to us the Company has not entered into non-cashtransactions with the directors or persons connected with him. Accordingly paragraph3(xv) of the Order is not applicable.

16. The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934.

For Hariharan & Co.
Chartered Accountants
Firm’s Registration No. 001083S
K Nagarajan
Partner
Membership No.: 16398
Place: Mumbai
Date : 4th May2017

ANNEXURE ‘B’ TO THE INDEPENDENT AUDITOR’S REPORT

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 MysorePetro Chemicals Limited ("the Company") as of 31 March 2017 in conjunction withour audit of the financial statements of the Company 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 Reportingissued by the Institute of Chartered Accountants of India ("ICAI’). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company’s policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditor’s 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 on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") issued by ICAI and the Standards on Auditing issued byICAI and deemed to be prescribed under Section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both issued by the Instituteof Chartered Accountants of India. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects. Our audit involves performing procedures to obtain audit evidence about theadequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor’s judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Group’s internal financial controlssystem over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A Company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A Group’s internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the Company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the companies are being made only in accordance with authorizations ofmanagement and directors of the Company and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of theGroup’s assets that could have a material effect on 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 31 March 2017 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 Institute of CharteredAccountants of India.

For Hariharan & Co.
Chartered Accountants
Firm’s Registration No. 001083S
K Nagarajan
Place: Mumbai Partner
Date: 4th May2017 Membership No.: 16398