Auditor Report of Indian Toners & Developers Ltd.
Mar 31, 2018
Report on the Standalone Ind AS Financial Statements
1. We have audited the accompanying Standalone Ind AS financial statements of INDIAN TONERS & DEVELOPERS LIMITED (âthe Companyâ), which comprises the Balance Sheet as at 31st March 2018, the statement of Profit and Loss (including Other Comprehensive Income), the statement of Cash Flows and the statement of Changes in Equity for the year then ended and a summary of the significant accounting policies and other explanatory information (herein after referred to as âInd AS financial statementsâ).
Managementâs Responsibility for the Ind AS Financial
Statements
2. The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these Standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act read with Indian Accounting Standard Rules 2015 issued thereunder, as amended.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies, making judgments and estimates that are reasonable and prudent; and design, 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 standalone Ind AS financial statements that give a true and fair view and free from material misstatement, whether due to fraud or error.
Auditorsâ Responsibility
3. Our responsibility is to express an opinion on these standalone Ind AS 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 thereunder and the order issued under section 143(11) of the Act.
We conducted our audit of the standalone financial statements 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 standalone Ind AS financial statements are free from material misstatement.
4. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
5. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
6. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS 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 including the standalone Ind AS, of the financial position of the Company as at 31st March, 2018, and its financial performance including other comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements
7 As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of section 143(11) of the Act, we give in the Annexure A, a statement on the matters specified in the paragraph 3 and 4 of the order.
8 As required by Section 143(3) of the Act based on our audit, 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 including Other Comprehensive Income, the Statement of Cash Flows and the Statement of Changes in Equity dealt with by this report are in agreement with the books of account;
(d) in our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act read with relevant rules issued thereunder;
(e) On the basis of the written representation received from the directors of the company as on 31st March 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March 2018 from being appointed as a director in terms of Section 164(2) of the Act;
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ; our report expresses an unmodified opinion on the adequacy and operating effectiveness of the companyâs internal financial controls over financial reporting.
(g) with respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended in our opinion and to the best of our information and according to the explanations given to us:
i) The Company has no pending litigations as at 31st March, 2018 which has impact on its financial positions;
ii) The Company did not have any long term contracts and had no derivative contracts outstanding as at 31st March 2018; and
iii) The Company did not have any dues required to be transferred by it to the Investor Education and Protection Fund.
(Referred to in para 7 under âReport on Other Legal and Regulatory Requirementsâ section of our report of even date to the Members of INDIAN TONERS & DEVELOPERS LIMITED)
i) In respect of Companyâs Fixed Assets
(a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
(b) As explained to us, physical verification of fixed assets has been carried out by the Company and no material discrepancies were noticed on such verification. In our opinion the frequency and manner of physical verification is reasonable, having regard to the size of the Company and nature of its business.
(c) Title deeds of immovable properties of the company are held in the name of the Company.
ii) (a) The inventories have been physically verified during the year by the management at reasonable intervals.
(b) In our opinion, no material discrepancies were noticed on physical verification of inventories.
iii) According to the information and explanations given to us, the Company has, during the year not granted any loans, secured or unsecured to companies, firm, Limited liability partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013. Accordingly, paragraph 3(iii) of the Order is not applicable to the Company.
iv) According to the information and explanation given to us, the company has complied with the provisions of section 185 and 186 of the Companies Act, 2013, in respect of investments.
v) The Company has not accepted any deposits during the year and therefore, the provision of the clause 3(v) of the Order is not applicable to the Company.
vi) The Central Government has not prescribed the maintenance of cost records under Sub Section (1) of Section 148 of the Companies Act, 2013 for any of the products/services of the Company.
vii) According to the information and explanations given to us, in respect of statutory dues:
(a) The Company is generally regular in depositing undisputed statutory dues including Provident Fund, Employees State Insurance, Income Tax, Sales Tax , Service Tax, Goods and Service Tax (GST), Custom Duty, Excise Duty, Value Added Tax, Cess and other material statutory dues applicable to it with the appropriate authorities.
(b) There is no undisputed amount payable in respect of Provident Fund, Employeeâs State Insurance, Income Tax, Sales Tax, Value Added Tax, Goods and Service Tax(GST), Custom Duty, Excise Duty, Cess and other material statutory dues in arrears as at March 31, 2018 for the period of more than six months from the date they become payable.
(c) According to the records and information and explanation given to us and the records examined by us of the Company, there were no dues in respect of Sales Tax, Service Tax, Goods & Service Tax (GST), Duty of Customs, Duty of Excise, Value Added Tax, Cess and other statutory dues which have not been deposited on account of disputes.
viii) The Company has not taken any term loans or borrowings from financial institutions, banks and government or has not issued any debentures. Hence reporting under clause 3(viii)of the Order is not applicable to the Company.
ix) The Company has not raised moneys by way of initial public offer or further public offer (Including debt instruments) or term loans and hence reporting under clause 3 (ix) of the Order is not applicable to the Company.
x) Based upon the audit procedures performed and to the best of our knowledge and according to the information and explanations given to us by the management, we report that no fraud by the Company or no material fraud on the company by its officer or employees has been noticed or reported during the course of our audit.
xi) In our opinion and according to the information and explanations given to us, the Company has paid/ provided managerial remuneration in accordance with the provisions of section 197 read with Schedule V of the Act.
xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company and hence paragraph 3 (xii) of the Order is not applicable to the Company.
xiii) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 177 and 188 of the Companies Act, 2013 wherever applicable, for all transactions with related parties and the details of related party transactions have been disclosed in the standalone financial statements as required by the applicable accounting standards.
xiv) During the year, the Company has not made any preferential allotment or private placement of shares or fully or partly paid convertible debentures and hence reporting under clause 3 (xiv) of the Order is not applicable to the Company.
xv) In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non- cash transactions with its Directors or persons connected to its directors and provisions of section 192 of the Companies Act, 2013 are applicable to the Company.
xvi) The Company is not required to be registered under section 45-1A of the Reserve Bank of India Act, 1934 and hence paragraph 3 (xvi) of the Order is not applicable to the Company.
ANNEXURE âBâ REFERRED TO IN PARAGRAPH 8 (f) TO THE OUR INDEPENDENT AUDITORS REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTS OF INDIAN TONERS & DEVELOPERS LIMITED
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Indian Toners & Developers Limited (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on âthe 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 Controls over Financial Reporting issued by the Institute of Chartered Accountants of Indiaâ. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) issued by the Institute of Chartered Accountants of India and the Standards on Auditing, prescribed under section 143 (10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgement, including the assessment of the risks 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 to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs 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 financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion to the best of our information and according to the explanation given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on âthe 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 Controls over Financial Reporting issued by the Institute of Chartered Accountants of Indiaâ.
FOR M.L. GARG & COMPANY
CHARTERED ACCOUNTANTS
FRN 001604N
(MANISH K GARG)
PLACE : NEW DELHI PARTNER
DATE : 17th MAY, 2018 M.NO. 96238
Mar 31, 2017
AUDITORSâ REPORT
TO THE MEMBERS OF INDIAN TONERS &
DEVELOPERS LIMITED
Report on the Financial Statements
1. We have audited the accompanying Standalone financial statements of INDIAN TONERS & DEVELOPERS LIMITED (âthe Company"), which comprise the Balance Sheet as at 31st March, 2017, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information which we have signed under reference to this report.
Managementâs responsibility for the Financial Statements
2 The Companyâs Board of Directors is responsible for the matters stated in section 134 (5) of the Companies Act 2013 (âthe Act") with respect to the preparation and presentation of these standalone 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 principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.This responsibility also includes maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent and design, 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.
Auditorsâ Responsibility
3 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 Companies Act, 2013. 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 misstatements.
4 An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditorâs 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 control relevant to the Companyâs preparation and fair presentation of the financial statements in order to design the audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and reasonableness of the accounting estimates made by the management, as well as evaluating the overall presentation of the financial statements.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
6. 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:
(i) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2017;
ii) in the case of the Statement of Profit and Loss, of the Profit of the Company for the year ended on that date; and
(iii) in the case of Cash Flow Statement, of the cash flows of the Company for the year ended on that date.
Report on Other Legal and Regulatory
Requirement
7. As required by the Companies (Auditorâs Report) Order, 2016 (âOrderâ), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we enclose in the Annexure âAâ a statement on the matters specified in paragraphs 3 and 4 of the said Order.
8. 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 Accounts as required by the law have been kept by the Company, so far as appears from our examination of those books;
c. the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this report are in agreement with the Books of Accounts;
d. In our opinion, the aforesaid Financial Statements dealt with by this report comply with the Accounting Standards referred to in section 133 of the Companies Act, 2013;
e. on the basis of written representations received from the directors as on 31st March 2017, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March 2017 from being appointed as director in terms of section 164(2) of the Companies Act, 2013 ;
f. With respect to the adequacy of the Internal Financial Controls over the financial reporting of the Company and operating effectiveness of such controls, refer to our separate Report in âAnnexure B"; and
g. With respect to the other matters to be included in the Auditorâs 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 explanations given to us:
i. The Company has disclosed the impact of pending litigation on its financial position in its standalone financial statement Refer Note 26(b) to the financial statement;
ii. The Company did not have any foreseeable losses on long term contracts and had no derivative contracts outstanding as at 31st March 2017;
iii. The Company did not have any dues on account of Investor Education and Protection Fund;
iv. Accordingly to the information and records of the company, the company had provided requisite disclosures in its financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8fh November, 2016 to 30th December,
2016 and these are in accordance with the books of accounts maintained by the company. Refer Note no 41 of the financial.
The Annexure âAâ referred to in paragraph 7 of our report of even date to the members of Indian Toners & Developers Limited on the Financial Statements for the year ended 31st March, 2017.
i) (a) The Company has maintained proper records showing full particulars including quantitative details
and situation of fixed assets.
(b) As explained to us, physical verification of fixed assets has been carried out by the Company and no material discrepancies were noticed on such verification. In our opinion the frequency of verification is reasonable, having regard to- the size of the Company and nature of its business.
(c) Title deeds of immovable properties of the company are held in the name of the Company.
ii) (a) The inventories (Except Goods in Transit )have been physically verified during the year by the management at reasonable intervals.
(b) In our opinion, no material discrepancies were noticed on physical verification of stocks.
iii) According to the information and explanations given to us during the year, the Company has not granted any loans, secured or unsecured to companies firm, Limited liability partnerships firms or other parties covered in the register maintained under section 189 of the companies Act, 2013 in respect of investment & guarantees.
iv) According to the information and explanation given to us, the company has complied with the provisions of section 185 and 186 of the Companies Act, 2013, in respect of investments & guarantees
v) The Company has not accepted any deposits during the year and hence paragraph 3(v) of the Order is not applicable to the Company.
vi) The Central Government has not prescribed maintenance of cost accounts for the type of activities of the Company pursuant to the rules made by the Central Government of India for the maintenance of cost records under clause (d) of Sub Section (1) of Section 148 of the Companies Act, 2013
vii) (a) According to the records examined by us , the Company is generally regular in depositing with
appropriate authorities undisputed statutory dues including provident fund, employees state insurance, income tax , sales tax , service tax, duty of custom, duty of excise, value added tax, cess and other statutory dues wherever applicable.
According to the information and explanations given to us, no undisputed arrears of statutory dues were outstanding as on the last date of the financial year for a period of more than six months from the date they became payable.
(b) According to the records of the Company, there were no dues in respect of Sales Tax, Service Tax, Duty of Customs, Duty of Excise, Value Added Tax, Cess and other statutory duties which have not been deposited on account of disputes. However, in respect of income tax, there is demand of Rs. 25,66,329 related to the Assessment year 2013-14 and the appeal in pending with Commissioner of Income Tax.
viii) Based on our audit procedures and according to the information given by the management, the company has not defaulted repayment in respect of any loans or borrowings from any financial institution, bank, government or dues to debentures holders during the year.
ix) In our opinion and according to the information and explanations given to us, the Company has not taken any term loan during the financial year and has not done any initial public offer or further public offer (including debt instrument) or term loans and hence paragraph 3(ix) of the Order is not applicable to the Company.
x) Based upon the audit procedures performed and to the best of our knowledge and according to the information and explanations given to us by the management, we report that no fraud by the Company or any fraud on the company by its officer or employees has been noticed or reported during the course of our audit.
xi") Ihe Company has paid managerial remuneration in compliance with the provisions of Section 197 read with schedule V to the Companies Act, 2013 and obtained necessary approval of the Central Government to comply with the aforesaid provision.
xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company and hence paragraph 3 (xii) of the Order is not applicable to the Company.
xiii) As explained to us and as per the records of the company, in our opinion the transactions with the related parties are in Compliance with Section 177 and Section 188 of the Companies Act, 2013 and the details have been disclosed in the financial statements as required by the applicable Accounting Standards.
xiv) According to the records of the company, it has not made any preferential allotment of shares or private placement of shares or fully/partly convertible debentures during the year under report. Accordingly paragraph 3 (xiv) of the Order is not applicable to the Company.
xv) During the year, the Company has not entered into any non-cash transaction with Director or person connected with him. Hence paragraph 3 (xv) of the Order is not applicable to the Company.
xvi) The Company is not required to be registered under section 45-1A of the Reserve Bank of India Act, 1934 and hence paragraph 3 (xvi) of the Order is not applicable to the Company.
We have audited the internal financial controls over financial reporting of Indian Toners & Developers Limited (âthe Companyâ) as at 31st March, 2017 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on âthe 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 Controls over Financial Reporting issued by the Institute of Chartered Accountants of Indiaâ. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143 (10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks 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 to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs 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 financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial Controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31st, 2017, based on âthe 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 Controls over Financial Reporting issued by the Institute of Chartered Accountants of Indiaâ
PLACE OF SIGNATURE: NEW DELHI FOR K.N. GUTGUTIA & COMPANY
DATE: 20th May, 2017 CHARTERED ACCOUNTANTS
FRN 304153E
(B.R. GOYAL)
PARTNER M.NO. 12172
Mar 31, 2016
TO THE MEMBERS OF INDIAN TONERS AND
DEVELOPERS LIMITED
Report on the Financial Statements
1. We have audited the accompanying Standalone financial statements of INDIAN TONERS & DEVELOPERS LIMITED (âthe Companyâ), which comprise the Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information which we have signed under reference to this report.
Managementâs responsibility for the Financial Statements
2 The Companyâs Board of Directors is responsible for the matters
stated in section 134 (5) of the Companies Act 2013 (âthe Actâ) with respect to the preparation and presentation of these standalone 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 principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent and design, 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.
Auditorsâ Responsibility
3 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 Section143 (10) of the Companies Act, 2013. 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 misstatements.
4 An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements, The procedures selected depend on the auditorâs 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 control relevant to the Companyâs preparation and fair presentation of the financial statements in order to design the audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and reasonableness of the accounting estimates made by the management, as well as evaluating the overall presentation of the financial statements.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
6 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:
(i) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2016;
(ii) in the case of the Statement of Profit and Loss, of the Profit of the Company for the year ended on that date; and
(iii) in the case of Cash Flow Statement, of the cash flows of the Company for the year ended on that date.
Report on Other Legal and Regulatory Requirement
7. As required by the Companies (Auditor''s Report) Order, 2016 (âOrderâ), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we enclose in the Annexure âAâ a statement on the matters specified in paragraphs
3 and 4 of the said Order.
8 As required by Section143 (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 Accounts as required by the law have been kept by the Company, so far as appears from our examination of those books;
c. the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this report are in agreement with the Books of Accounts;
d. In our opinion, the aforesaid Financial Statements dealt with by this report comply with the Accounting Standards referred to in section 133 of the Companies Act, 2013;
e. on the basis of written representations received from the directors as on 31st March 2016, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March 2016 from being appointed as director in terms of section 164(2) of the Companies Act, 2013 ;
f. With respect to the adequacy of the Internal Financial Controls over the financial reporting of the Company and operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ; and
g. With respect to the other matters to be included in the Auditorâs Report in accordance with Rule11 of the Companies (Audit and Auditors)Rules,2014,in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigation on its financial position in its financial statement Refer Note 28 to the financial statement.
ii. The Company did not have any foreseeable losses on long term contracts and had no derivative contracts outstanding as at 31st March 2016; and
iii. The Company did not have any dues on account of Investor Education and Protection Fund.
The Annexure âAâ referred to in paragraph 7 of our report of even date to the members of Indian Toners & Developers Limited on the Financial Statements for the year ended
31st March, 2016.
i) (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
(b) As explained to us, physical verification of fixed assets has been carried out by the Company and no material discrepancies were noticed on such verification. In our opinion the frequency of verification is reasonable, having regard to- the size of the Company and nature of its business.
(c) Title deeds of immovable properties of the company are held in the name of the Company.
ii) (a) The inventories have been physically verified during the year by the management at reasonable intervals. (b) In our opinion, no material discrepancies were noticed on physical verification of stocks.
iii) According to the information and explanations given to us during the year, the Company has not granted any loans, secured or unsecured to companies firm, Limited liability partnerships firms or other parties covered in the register maintained under section 189 of the companies Act, 2013 in respect of investment & guarantees.
iv) According to the information and explanation given to us, the company has complied with the provisions of section 185 and 186 of the Companies Act, 2013, in respect of investments & guarantees
v) The Company has not accepted any deposits during the year and hence paragraph 3(v) of the Order is not applicable to the Company.
vi) The Central Government has not prescribed maintenance of cost accounts for the type of activities of the Company pursuant to the rules made by the Central Government of India for the maintenance of cost records under clause (d) of Sub Section (1) of Section 148 of the Companies Act, 2013
vii) (a) According to the records examined by us , the Company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident fund, employees state insurance, income tax , sales tax , service tax, duty of custom, duty of excise, value added tax, cess and other statutory dues wherever applicable.
According to the information and explanations given to us, no undisputed arrears of statutory dues were outstanding as on the last date of the financial year for a period of more than six months from the date they became payable.
(b) According to the records of the Company, there were no dues in respect of Sales Tax, Service Tax, Duty of Customs, Duty of Excise, Value Added Tax, Cess and other statutory duties which have not been deposited on account of disputes. However, in respect of income tax, there is demand of Rs. 25,66,329 related to the Assessment year 2013-14 and the appeal in pending with Commissioner of Income Tax.
viii) Based on our audit procedures and according to the information given by the management, the company has not defaulted repayment in respect of any loans or borrowings from any financial institution, bank, government or dues to debentures holders during the year.
ix) In our opinion and according to the information and explanations given to us, the Company has not taken any term loan during the financial year and has not done any initial public offer or further public offer (including debt instrument) or term loans and hence paragraph 3 (ix) of the Order is not applicable to the Company.
x) Based upon the audit procedures performed and to the best of our knowledge and according to the information and explanations given to us by the management, we report that no fraud by the Company or any fraud on the company by its officer or employees has been noticed or reported during the course of our audit
xi) The Company has paid managerial remuneration in compliance with the provisions of Section 197 and 200 read with schedule V to the Companies Act, 2013 and obtained necessary approval of the Central Government to comply with the aforesaid provision.
xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company and hence paragraph 3 (xii) of the Order is not applicable to the Company.
xiii) As explained to us and as per the records of the company, in our opinion the transactions with the related parties are in Compliance with Section 177 and Section 188 of the Companies Act, 2013 and the details have been disclosed in the financial statements as required by the applicable Accounting Standards.
xiv) According to the records of the company, it has not made any preferential allotment of shares or private placement of shares or fully/partly convertible debentures during the year under report. Accordingly paragraph 3 (xiii) of the Order is not applicable to the Company.
xv) During the year, the Company has not entered into any non-cash transaction with Director or person connected with him. Hence paragraph 3 (xv) of the Order is not applicable to the Company.
xvi) The Company is not required to be registered under section 45-1A of the Reserve Bank of India Act, 1934 and hence paragraph 3 (xvi) of the Order is not applicable to the Company.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Indian Toners & Developers Limited (âthe Companyâ) as at 31st March, 2016 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on âthe 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 Controls over Financial Reporting issued by the Institute of Chartered Accountants of Indiaâ. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143 (10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks 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 to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''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 financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate
. Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial Controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31st, 2016, based on âthe 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 Controls over Financial Reporting issued by the Institute of Chartered Accountants of Indiaâ
FOR K.N.GUTGUTIA & CO.,
CHARTERED ACCOUNTANTS
ICAI''S FRN 304153E
(B.R.GOYAL)
Place : New Delhi PARTNER
Date: 25th May, 2016 Membership No. 12172
Mar 31, 2015
1. 1. We have audited the accompanying financial statements of INDIAN
TONER & DEVELOPERS LIMITED ("the Company"), which comprise the Balance
Sheet as at 31st March, 2015, the Statement of Profit and Loss and the
Cash Flow Statement for the year then ended and a summary of
significant accounting policies and other explanatory information.
Management's responsibility for the Financial Statements
2. The Company's Board of Directors is responsible for the matters
stated in section 134 (5) of the Companies Act 2013 ("the Act") with
respect to the preparation and presentation 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 principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes maintenance of adequate accounting records in accordance
with the provision of the Act for safeguarding the assets of the
Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent and design, 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
3. 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
Section143(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.
4. An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor's 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 control relevant to the
Company's preparation and fair presentation of the financial statements
in order to design the audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company's internal control. An audit also includes
evaluating the appropriateness of accounting policies used and
reasonableness of the accounting estimates made by the management, as
well as evaluating the overall presentation of the financial
statements.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Opinion
6. 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:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2015;
(ii) in the case of the Statement of Profit and Loss, of the Profit of
the Company for the year ended on that date; and
(iii) in the case of Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
7. As required by the Companies (Auditor's Report) Order, 2015
('Order'), issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we enclose in the Annexure,
a statement on the matters specified in paragraphs 3 and 4 of the said
Order, to the extent applicable.
8. As required by Section143 (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 accounts as required by the law have
been kept by the Company, so far as appears from our examination of
those books;
c. the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
d. In our opinion, the Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in section 133 of the Companies Act,
2013;
e. on the basis of written representations received from the directors
as on 31 March 2015, and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on 31 March 2015
from being appointed as director in terms of section 164(2) of the
Companies Act, 2013 and
f. With respect to the other matters to be included in the Auditor's
Report in accordance with Rule11 of the Companies (Audit and
Auditors)Rules,2014,in our opinion and to the best of our information
and according to the explanations given to us:
i. The Company did not have any pending litigations as at 31st March,
2015 which has impact on its financial position.
ii. The Company did not have any foreseeable losses on long term
contracts and had no derivative contracts outstanding as at 31 March
2015; and
iii. The Company did not have any dues on account of Investor Education
and Protection Fund.
ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT
(Referred to in paragraph 7 of our report of even date to the members
of Indian Toners & Developers Limited (the Company) on the Financial
Statements for the year ended 31st March, 2015.)
i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As explained to us, physical verification of fixed assets has been
carried out in terms of the phased programme of verification of its
fixed assets adopted by the Company and no material discrepancies were
noticed on such verification. In our opinion the frequency of
verification is reasonable, having regard to the size of the Company
and nature of its business.
ii) (a) The inventories have been physically verified during the year
by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. In our
opinion, discrepancies noticed on physical verification of stocks were
not material in relation to the operations of the Company.
iii) (a) According to the information and explanations given to us, the
Company has, during the year, not granted any loans, secured or
unsecured to companies, firms or other parties covered in the register
maintained under section 189 of the companies Act,2013. Accordingly,
paragraph 3(iii) of the Order is not applicable.
iv) In our opinion and according to the information and explanations
given to us, there are internal control systems commensurate with the
size of the Company and the nature of its business with regard to
purchase of inventory, fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weakness in internal control
system.
v) The Company has not accepted public deposits during the year.
vi) The Central Government has not prescribed maintenance of cost
accounts for the type of activities of the Company pursuant to the
rules made by the Central Government of India for the maintenance of
cost records under clause (d) of Sub Section (1) of Section 148 of the
Companies Act, 2013 .
vii) (a) According to the records examined by us , the Company is
generally regular in depositing with appropriate authorities undisputed
statutory dues including provident fund, employees state insurance,
income tax , sales tax , wealth tax, service tax, duty of custom, duty
of excise, value added tax, cess and other statutory dues wherever
applicable. According to the information and explanations given to us,
no undisputed arrears of statutory dues were outstanding as at 31st
March, 2015 for a period of more than six months from the date they
became payable.
(b) According to the records of the Company, there were no dues in
respect of sale tax, income tax, duties of customs, wealth tax, service
tax, duty of excise, cess and value added tax which have not been
deposited on account of disputes.
(c) The Company did not have any dues on account of Investor Education
and Protection Fund.
viii) There are no accumulated losses of the Company as at 31st March
2015. The Company has not incurred cash losses during the financial
year covered by our audit, as well as in the immediately preceding
financial year.
ix) Based on our audit procedures and the information given by the
management, we are of the opinion that the Company has not defaulted in
repayment of dues to any financial institution or bank.
x) According to the information and explanations given to us, Company
has not given any guarantee during the year for loans taken by others
from banks or financial institution.
xi) In our opinion and according to the information and explanations
given to us. During the year, the Company has not taken any term loan.
xii) Based upon the audit procedures performed and to the best of our
knowledge and according to the information and explanations given to us
by the management, we report that no fraud on or by the Company has
been noticed or reported during the course of our audit.
FOR K.N.GUTGUTIA & CO.,
CHARTERED ACCOUNTANTS
ICAI'S FRN 304153E
(B.R.GOYAL)
Place : New Delhi PARTNER
Date: 23rd May, 2015 Membership No. 12172
Mar 31, 2014
1. We have audited the accompanying financial statements of INDIAN
TONER & DEVELOPERS LIMITED ("the Company"), which comprises the Balance
Sheet as at March 31, 2014 and the Statement of Profit and Loss and the
Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
2. The Company''s Management is responsible for 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 referred to in sub-section
(3C) of section 211 of the Companies Act, 1956 ("the Act"). This
responsibility includes the design, implementation and maintenance of
internal control 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.
Auditor''s Responsibility
3. Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. 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.
4. An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor''s 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 control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company''s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of the accounting estimates made by management, as well
as evaluating the overall presentation of the financial statements.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Place : New Delhi
Dated : 21st May, 2014
Opinion
6. In our opinion and to the best of our information and according to
the explanations given to us, by the aforesaid 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 31st March, 2014;
(b) In the case of Statement of Profit and Loss, of the Profit for the
year ended on that date; and
(c) In the case of Cash Flow Statement, of the Cash Flows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
7. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Companies Act 1956 (the Act), we
give in the Annexure a statement on the matters specified in paragraphs
4 and 5 of the Order to the extent applicable to the company.
8. As required by section 227(3) of the Act, we report that :- a) We
have obtained all the information and
explanations which to the best of 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 the Company, so far as appears from our examination of those
books;
c) The Balance Sheet, Statement of Profit & Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) In our opinion, the Balance Sheet, Statement of Profit & Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956.
e) On the basis of the written representations received from the
Directors as on 31st March, 2014, and taken on record by the Board of
Directors, none of the Directors is disqualified as on 31st March, 2014
from being appointed as a Director in terms of Clause (g) of sub-
section (1) of Section 274 of the Companies Act, 1956 ;
ANNEXURE TO THE AUDITORS'' REPORT
Annexure referred to in paragraph 7 under the heading "Report on Other
Legal and Regulatory Requirements" of the Independent Auditor''s report
of even date to the matters of Indian Toners & Developers Limited ("the
Company") on the financial statements for the year ended March 31,
2014.
i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As per the information and explanation given to us physical
verification of fixed assets has been carried out by the Management
during the year and no discrepancy was noticed on such verification.
(c) During the year the Company has not disposed off any substantial/
major part of fixed assets.
ii) (a) As per the information furnished, the inventories have been
physically verified during the year by the management . In our opinion,
having regard to the nature and location of stock, the frequency of the
physical verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, procedures of physical verification of inventory followed
by the management are reasonable and adequate in relation to the size
of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. In our
opinion, discrepancies noticed on physical verification of stocks were
not material in relation to the operations of the Company and the same
have been properly dealt with in the books of account.
iii) (a) The company has not granted any loans during the year to any
Company listed under section 301 of the Companies Act, 1956. However,
there was opening balance of Rs. 700 Lacs outstanding as at the opening
of the year out of loans granted in the earlier years to its subsidiary
company. There was no amount outstanding at the close of the year. The
maximum amount involved during the year was Rs. 700 Lacs. According to
the information and explanations given to us, in our opinion, the terms
and condition of the said loan are not, prima facie prejudicial to the
interest of the Company.
(b) As informed, the Company has not taken any loans, secured or
unsecured from companies, firms or other parties covered in the
register maintained under Section 301 of the companies Act, 1956 and
hence the requirements of sub clauses (e) to (g) of clause (iii) of the
Order are not applicable to it.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the company and the nature of its business with regard
to purchase of inventory and fixed assets and for the sale of goods.
During the course of our audit, we have not observed any continuing
failure to correct major weakness in internal controls in respect of
these areas.
v) a) According to the information and explanations provided by the
management, we are of the opinion that the particulars of contracts or
arrangements referred to in Section 301 of the Act that need to be
entered into the register maintained under section 301 have been so
entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements exceeding value of Rupees five lakhs have been entered
into during the financial year with its subsidiary, at such
consideration which are reasonable having regard to the nature of
strategic relationship with the company.
vi) The Company has not accepted any public deposits. Accordingly,
paragraph (vi) of the Order is not applicable to it.
vii) In our opinion, the company has an internal audit system
commensurate with the size of the company and the nature of its
business.
viii) We have broadly reviewed the books of account maintained by the
Company in respect of products where, pursuant to the Rules made by the
Central Government of India, the maintained of cost records has been
prescribed under clause (d) of sub section (1) of Section 209 of the
Act, and are lf the opinion
that prima facie, the prescribed accounts and records have been made
and maintained. We have not, however, made a details examination of the
record with a view of determine whether they are accurate or complete.
ix) (a) According to the information''s and explanations given to us and
records examined by us , the company is regular in depositing with
appropriate authorities undisputed statutory dues including provident
fund , employees state insurance, income tax , sales-tax, service tax,
custom duty, excise duty, cess and other statutory dues wherever
applicable. According to the information and explanations given to us,
no undisputed arrears of statutory dues of the aforesaid nature were
outstanding as at 31st March, 2014 for a period of more than six months
from the date they became payable.
(b) According to the records of the Company, there was no dues as at
31st March,2014 of sales tax, income-tax, customs, wealth-tax, service
tax, excise duty, cess which have not been deposited on account of
disputes.
x) There are no accumulated losses of the Company as on 31st March,
2014. The company has not incurred any cash losses during the financial
year covered by our audit and in the immediately preceding financial
year.
xi) Based on our audit procedures and the information given by the
management, we are of the opinion that the company has not defaulted in
repayment of dues to a financial institutions or banks.
xii) Based on our examination of the records and the information and
explanations given to us, the Company has not granted any loans and/ or
advances on the basis of security by way of pledge of shares,
debentures and other securities.
xiii) Clause (xiii) of the Order is not applicable to the Company as
the Company is not a Chit fund Company or nidhi /mutual benefit fund/
society.
xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures, and other investments. Accordingly, the
provisions of clause 4 (xiv) of the Companies (Auditor''s Report )
Order, 2003 are not applicable to the Company.
xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
of financial institution.
xvi) According to the information and explanations given to us, no term
loan has been raised by the Company during the year.
xvii) According to the information & explanation given to us and on an
overall examination of the balance sheet of the company, we report that
the no funds raised on short-term basis have been used for long term
investments.
xviii) The Company has not made any preferential allotment of shares
during the year.
xix) During the year covered by our audit report the Company has not
issued secured debentures.
xx) The Company has not raised any money by public issues during the
year covered by our report.
xxi) Based upon the audit procedures performed and the information and
explanations given to us, by the management, we report that no fraud on
or by the Company has been noticed or reported during the course of our
audit.
FOR K.N.GUTGUTIA & CO.,
CHARTERED ACCOUNTANTS
FRN 304153E
(B.R.GOYAL)
PARTNER
M. No. 12172
Mar 31, 2013
Report on the Financial Statements
1. We have audited the accompanying financial statement of INDIAN
TONER & DEVELOPERS LIMITED ("the Company"), which comprises the Balance
Sheet as at March 31, 2013 and the Statement of Profit and Loss and the
Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management''s Responsibility for the.
Financial Statements
2. Management is responsible for 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 referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control 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.
Auditor''s Responsibility
3. Our responsibility is to. express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. 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.
4. An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor''s 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 control relevant to the
Company''s preparation and fair presentation of the financial statements
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 management, as well as evaluating the overall
presentation of the financial statements.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Opinion
6. in our opinion and to the best of our information and according to
the explanations given to us, by the Companies Act, 1956 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 31st March, 2013;
(b) In the case of Statement of Profit and Loss, of the Profit for the
year ended on that date; and
(c) In the case of Cash Flow Statement, of the Cash Flows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
7. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of sub-
section (4A) of section 227 of the Companies Act 1956 (the Act), we
give in the Annexure a statement on the matters specified in paragraphs
4 and 5 of the Order to the extent applicable to the company.
8. As required by section 227(3) of the Act, we report that :-
a) We have obtained all the information and explanations which to the
best of 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 the Company, so far as appears from our examination of those
books;
c) The Balance Sheet, Statement of Profit & Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) In our opinion, the Balance Sheet, Statement of Profit & Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of Section 211 of the Act; &
e) On the basis of the written representations received from the
Directors as on 31s" March, 2013, and taken on record by the Board of
Directors, none of the Directors is disqualified as on 31st March, 2013
from being appointed as a Director in terms of Clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956 ;
ANNEXURE TO THE AUDITORS'' REPORT
INDIAN TONERS & DEVELOPERS LIMITED
(Referred to in paragraph 7 of our report of even date to the members
of Indian Toners & Developers Limited (the Company) on the Financial
Statements for the year ended 31st March, 2013.)
i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As per the information and explanation given to us physical
verification of fixed assets has been carried out by the Management
during the year and no discrepancy was noticed on such verification.
(c) During the year the Company has not disposed off any substantial/
major part of fixed assets.
ii) (a) As per the information furnished, the inventories have been
physically verified during the year by the management. In our opinion,
having regard to the nature and location of stock, the frequency of the
physical verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, procedures of physical verification of inventory followed
by the management are reasonable and adequate in relation to the size
of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. In our
opinion, discrepancies noticed on physical verification of stocks were
not material in relation to the operations of the Company and the same
have been properly dealt with in the books of account.
iii) (a) The company has not granted unsecured loans during the year
(there was opening balance of Rs. 1300 Lacs) to its subsidiary namely
ITDL Imagetec Ltd., listed in the register maintained under Section 301
of the Companies Act, 1956. The maximum amount involved during the
years was Rs. 1327.89 Lacs and outstanding amount as at balance sheet
date was Rs.700 Lacs. According to the information and explanations
given to us, in our opinion, the terms and condition of the said loan
are not prima facie prejudicial to the interest of the Company.
(b) As informed, the Company has not taken any loans, secured or
unsecured from companies, firms or other parties covered in the
register maintained under Section 301 of the companies Act, 1956 and
hence the requirements of sub clauses (e) to (g) of clause (iii) of the
Order are not applicable to it.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the company and the nature of its business with regard
to purchase of inventory and fixed assets and for the sale of goods.
During the course of our audit, we have not observed any continuing
failure to correct major weakness in internal controls in respect of
these areas.
v) a) According to the information and explanations provided by the
management, we are of the opinion that the particulars of contracts or
arrangements referred to in Section 301 of the Act that need to be
entered into the register maintained under section 301 have been so
entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements exceeding value of Rupees five lakhs have been entered
into during the financial year with its subsidiary, at such
consideration which are reasonable having regard to the nature of
strategic relationship with the company.
vi) The Company has not accepted any public deposits. Accordingly,
paragraph (vi) of the Order is not applicable to it.
vii) In our opinion, the company has an internal audit system
commensurate with the size of the company and the nature of its
business.
viM) We have broadly reviewed the books of account maintained by the
company in respect of products where, pursuant to the Rules made by the
Central Government of India, the maintained of cost records
has been prescribed under clause (d) of sub section (1) of Section 209
of the Act, and are If the opinion that prima facie, the prescribed
accounts and records have been made and maintained. We have not,
however, made a details examination of the record with a view of
determine whether they are accurate or complete.
ix) (a) According to the information''s and explanations given to us and
records examined by us , the company is regular in depositing with
appropriate authorities undisputed statutory dues including provident
fund , employees state insurance, income tax , sales-tax, service tax,
custom duty, excise duty, cess and other statutory dues wherever
applicable. According to the Information and explanations given to us,
no undisputed arrears of statutory dues of the aforesaid nature were
outstanding as at 31a March, 2013 for a period of more tharvsix months
from the date they became payable.
(b) According to the records of the Company, there was no dues as at 31
* March,2013 of sales tax, income-tax, customs, wealth-tax, service
tax, excise duty, cess which have not been deposited on account of
disputes.
x) There are no accumulated losses of the Company as on 31 * March,
2010. The company has not incurred any cash losses during the financial
year covered by our audit and in the immediately preceding financial
year.
xi) Based on our audit procedures and the information given by the
management, we are of the opinion that the company has not defaulted in
repayment of dues to a financial institutions or banks.
xii) Based on our examination of the records and the information and
explanations given to us, the Company has not granted any loans and/ or
advances on the basis of security by way of pledge of shares,
debentures and other securities.
xiii) Clause (xiii) of the Order is not applicable to the Company as
the Company is not a Chit fund Company or nidhi/mutual benefit
fund/society.
xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures, and other investments. Accordingly, the
provisions of clause 4 (xiv) of the Companies (Auditor''s Report) Order,
2003 are not applicable to the Company.
xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
of financial institution.
xvi) According to the information and explanations given to us, no term
loan has been raised by the Company during the year.
xvii) According to the information & explanation given to us and on an
overall examination of the balance sheet of the company, we report that
the no funds raised on short-term basis have been used for long term
investments.
xviii) The Company has not made any preferential allotment of shares
during the year.
xix) During the year covered by our audit report the Company has not
issued secure* debentures.
xx) The Company has not raised any money by public issues during the
year covered by our report.
Based upon the audit procedures performed and the information and
explanations given to us, by the management, we report that no fraud on
or by the Company has been noticed or reported during the course of our
audit.
FOR K.N.GUTGUTIA & CO.,
CHARTERED ACCOUNTANTS
(B.R.GOYAL)
PARTNER
Place : New Delhi Membership No. 12172
Date: 17th May, 2013 ICAr SFRN 304153E
Mar 31, 2012
1. We have audited the attached Balance Sheet of INDIAN TONERS &
DEVELOPERS LTD as at 31st March 2012, the related Statement of Profit
and Loss and the cash flow statement of the company for the year ended
on that date annexed thereto, which we have signed under reference to
this report. These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on
these financial , statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable ' assurance about whether the
financial statements are free of material misstatement: An Audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis
for our opinion.
3. As required by the Companies (Auditors' Report) Order, 2003
issued by the Central Government of India in terms of Section 227 (4A)
of the Companies Act, 1956, and on the basis of such checks as
considered appropriate and according to the information and explanation
given to us during the course of our audit, we enclose in the Annexure
hereto a statement on the matters specified in paragraphs 4 and 5 of
the said Order.
4. Further to our comments mentioned in the Annexure referred to in
above paragraph, we report that:
a) We have obtained all the information and explanations which to the
best of 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 the Company so far as appears from our examination of the books
of the Company.
c) The Balance Sheet, Statement of Profit and Loss and the Cash Flow
Statement dealt with by the report are in agreement with the Books of
Account of the Company.
d) In our opinion, the Balance Sheet, Statement of Profit & Loss and
Cash Flow Statement comply with the mandatory Accounting Standards
referred to in Sub- Section 3 (c) of Section 211 of the Companies Act,
1956.
e) According to the information and explanation given to us and on the
basis of written representations received from the Directors as on 31st
March 2012 of the Company and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31s1 March 2012, from being appointed as a Director in terms of clause
(g) of Sub Section (1) of Section 274 of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements read with
the notes and Significant Accounting Policies thereon, give the
information required by the Companies Act, 1956 in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted inJndia:
(i) In the case of the Balance Sheet, of the state of affairs of the
company as at 31st March 2012.
(ii) In the case of the Statement of Profit and Loss , of the Profit
for the year ended on that date;
And
In the case of the Cash Flow Statement, of the Cash Flows for the year
ended on that date.
This is the Annexure referred to in paragraph 3 of our report of even
date to the members of Indian Toners & Developers Limited (the Company)
for the year ended 31st March, 2012.
i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As per the information and explanation given to us physical
verification of fixed assets has been carried out by the Management
during the year and no discrepancy was noticed on such verification.
(c) During the year the Company has not disposed off any substantial/
major part of fixed assets.
ii) (a) As per the information furnished, the inventories have been
physically verified during the year by the management. In our opinion,
having regard to the nature and location of stock, the frequency of the
physical verification is reasonable.
(b) In our opinion and according to' the information and explanations
given to us, procedures of physical verification of inventory followed
by the management are reasonable and adequate in relation to the size
of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. In our
opinion, discrepancies noticed on physical verification of stocks were
not material in relation to the operations of the Company and the same
have been properly dealt with in the books of account.
iii) (a) The company has granted loans to its subsidiary namely ITDL
Imagetec Ltd., listed in the register maintained under Section 301 of
the Companies Act, 1956. The maximum amount involved during the years
was Rs. 1900 Lacs and outstanding amount as at balance sheet date was
Rs. 1300 Lacs. According to the information and explanations given to
us, in our opinion, the terms and condition of the said loan are not
prima facie prejudicial to the interest of the Company.
(b) As informed, the Company has not taken any loans, secured or
unsecured from companies, firms , or other parties covered in the
register maintained under Section 301 of the companies Act, 1956 and
hence the requirements of sub clauses (e) to (g) of clause (iii) of the
Order are not applicable to it.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the company and the nature of its business with regard
to purchase of inventory and fixed assets and for the sale of goods.
During the course of our audit, we have not observed any continuing
failure to correct major weakness in internal controls in respect of
these areas.
v) a) According to the information and explanations provided by the
management, we are of the opinion that the particulars of contracts or
arrangements referred to in Section 301 of the Act that need to , be
entered into the register maintained under section 301 have been so
entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements exceeding value of Rupees five lakhs have been entered
into during the financial year with its subsidiary, at such
consideration which are reasonable having regard to the nature of
strategic relationship with the company.
vi) The Company has not accepted any public deposits. Accordingly,
paragraph (vi) of the Order is not applicable to it.
vii) In our opinion, the company has an internal audit system
commensurate with the size of the company and the nature of its
business.
viii) We have broadly reviewed the books of account maintained by the
Company in respect of products where, pursuant to the Rules made by the
Central Government of India, the maintained of cost records has be6n
prescribed under clause (d) of sub section (1) of Section 209 of the
Act, and are If the opinion that prima facie, the prescribed accounts
and records have been made and maintained. We have not, however, made a
details examination of the record with a view of determine whether they
are accurate or complete.
ix) (a) ' According to the information's and explanations given to us
and records examined by us , the company is regular in depositing with
appropriate authorities undisputed statutory dues including provident
fund , employees state insurance, income tax , sales-tax, service tax,
custom duty, excise duty, cess and other statutory dues wherever
applicable. According to the information and explanations given to us,
no undisputed arrears of statutory dues of the aforesaid nature were
outstanding as at 31 st March, 2012 for a period of more than six
months from the date they became payable.
(b) According to the records of the Company, there was no dues as at
31st March,2012 of sales tax, income-tax, customs, wealth-tax, service
tax, excise duty, cess which have not been deposited on account of
disputes.
x) There are no accumulated losses of the Company as on 31st March,
2012. The company has not incurred any cash losses during the financial
year covered by our audit and in the immediately preceding financial
year.
xi) Based on our audit procedures and the information given by the
management, we are of the opinion that the company has not defaulted in
repayment of dues to a financial institutions or banks.
xii) Based on our examination of the records and the information and
explanations given to us, the Company has not granted any loans and/ or
advances on the basis of security by way of pledge of shares,
debentures and other securities.
xiii) Clause (xiii) of the Order is not applicable to the Company as
the Company is not a Chit fund Company or nidhi /mutual benefit fund/
society.
xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures, and other investments. Accordingly, the
provisions of clause 4 (xiv) of the Companies (Auditor's Report)
Order, 2003 are not applicable to the Company.
xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
of financial institution.
xvi) According to the information and explanations given to us, no term
loan has been raised by the Company during the year.
xvii) According to the information & explanation given to us and on an
overall examination of the balance sheet of the company, we report that
the no funds raised on short-term basis have been used for long term
investments.
xviii) The Company has not made any preferential allotment of shares
during the year.
xix) During the year covered by our audit report the Company has not
issued secured debentures.
xx) The Company has not raised any money by public issues during the
year covered by our report.
xxi) Based upon the audit procedures performed and the information and
explanations given to us, by the management, we report that no fraud on
or by the Company has been noticed or reported during the course of our
audit.
FOR K.N.GUTGUTIA & CO.,
CHARTERED ACCOUNTANTS
(B.R.GOYAL)
PARTNER
Place : New Delhi Membership No. 12172
Date: 29th May, 2012 ICAI'S FRN 304153E
Mar 31, 2010
1. We have audited the attached Balance Sheet of INDIAN TONERS &
DEVELOPERS LTD as at 31st March 2010, the related Profit and
LossAccount and the cash flow statement of the company for the year
ended on that date annexed thereto, which we have signed under
reference to this report. These financial statements are the
responsibility of the Companys management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An Audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of Section 227 (4A) of the
Companies Act, 1956, and on the basis of such checks as considered
appropriate and according to the information and explanation given to
us during the course of our audit, we enclose in the Annexure hereto a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4. Further to our comments mentioned in the Annexure referred to in
above paragraph, we report that:
a) We have obtained all the information and explanations which to the
best of 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 the Company so far as appears from our examination of the books
of the Company.
c) The Balance Sheet, Profit and Loss Account and the Cash Flow
Statement dealt with by the report are in agreement with the Books of
Account of the Company.
d) In our opinion, the Balance Sheet, the Profit & LossAccount and Cash
Flow Statement comply with the mandatory Accounting Standards referred
to in Sub-Section 3 (c) of Section 211 of the Companies Act, 1956.
e) According to the information and explanation given to us and on the
basis of written representations received from the Directors as on 31
st March 2010 of the Company and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March 2010, from being appointed as a Director in terms of clause
(g) of Sub Section (1) of Section 274oftheCompaniesAct, 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said Accounts read with the notes and
Significant Accounting Policies thereon, give the information required
by the Companies Act, 1956 in the manner so required and give a true
and fair view in conformity with the accounting principles generally
accepted in India:
(i) In the case of the Balance Sheet, of the state of affairs of the
company as at 31st March 2010.
(ii) In the case of the Profit and Loss Account, of the Profit for the
year ended on that date;
And (iii) In the case of the Cash Flow Statement. of the Cash Flows
for the year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
Re: INDIAN TONERS & DEVELOPERS LIMITED
i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As per the information and explanation given to us Physical
verification of fixed assets has been carried out by the Management
during the year and no discrepancy was noticed on such verification.
(c) During the year the Company has not disposed off any substantial/
major part of fixed assets.
ii) (a) As per the information furnished, the inventories have been
physically verified during the year by the management. In our opinion,
having regard to the nature and location of stock, the frequency of the
physical verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, procedures of physical verification of inventory followed
by the management are reasonable and adequate in relation to the size
of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. In our
opinion, discrepancies noticed on physical verification of stocks were
not material in relation to the operations of the Company and the same
have been properly dealt with in the books of account.
iii) (a) The company has granted loans to its subsidiary namely ITDL
Imagetec Ltd. listed in the register maintained under Section 301 of
the Companies Act, 1956. The maximum amount involved during the year
and outstanding as at balance sheet date was Rs171273756. According to
the information and explanations given to us, in our opinion, the terms
and condition of the said loan are not prima -facie prejudicial to the
interest of the Company.
(b) As informed, the Company has not taken any loans, secured or
unsecured from companies, firms or other parties covered in the
register maintained under Section 301 of the companies Act, 1956 and
hence the requirements of sub clauses (f) and (g) of clause (iii) of
the order are not applicable
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the company and the nature of its business with regard
to purchase of inventory and fixed assets and for the sale of goods.
During the course of our audit, we have not observed any continuing
failure to correct major weakness in internal controls in respect of
these areas.
v) a) According to the information and explanations provided by the
management, we are of the opinion that the particulars of contracts or
arrangements referred to in Section 301 of the Act that need to be
entered into the register maintained under section 301 have been so
entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements exceeding value of Rupees five lakhs have been entered
into during the financial year with its subsidiary, at such
consideration which are reasonable having regard to the nature of
strategic relationship with the company.
vi) The Company has not accepted any public deposits. Accordingly,
paragraph (vi) of the Order is not applicable to it.
vii) In our opinion, the company has an internal audit system
commensurate with the size of the company and the nature of its
business.
viii) The Central Government has not prescribed maintenance of the cost
records under section 209( 1 )(d) of the Companies Act, 1956 in respect
to the companies products.
Ix) (a) According to the informations and explanations given to us and
records examined by us , the company is regular in depositing with
appropriate authorities undisputed statutory dues including provident
fund, employees state insurance, income tax, sales-tax, service tax,
custom duty, excise duty, cess and other statutory dues wherever
applicable. According to the information and explanations given to us,
no undisputed arrears of statutory dues of the aforesaid nature were
outstanding as at 31 st March, 2010 for a period of more than six
months from the date they became payable.
(b) According to the records of the Company, the dues as at 31st
March,2010 of sales tax, income-tax, customs, wealth-tax, service tax,
excise duty, cess which have not been deposited on account of disputes
and the forum where the dispute is pending are as under:
Name of
the Statue Nature of Amount Period to
which the Forum where
the Dues Rs. amount
relates dispute is
pending
UP. Sales
Tax Act Trade Tax 8,26,252.00 1994-1995& HighCourt
1995-1996 (Allahabad)
Trade Tax 1,07,443.00 1999-2000 Tribunal
(Moradabad)
Trade Tax 5,82,009.00 2002-2003 Tribunal
(Moradabad)
Trade Tax 33,40,229.00 2000-2005 Supreme Court
(Delhi)
x) There are no accumulated losses of the Company as on 31 st March,
2010. The company has not incurred any cash losses during the financial
year covered by our audit and in the immediately preceding financial
year.
xi) Based on our audit procedures and the information given by the
management, we are of the opinion that the company has not defaulted in
repayment of dues to a financial institutions or banks.
xii) Based on our examination of the records and the information and
explanations given to us, the Company has not granted any loans and/ or
advances on the basis of security by way of pledge of shares,
debenture and other securities.
xiii) Clause (xiii) of the Order is not applicable to the Company as
the Company is not a Chit fund Company or nidhi /mutual benefit fund/
society.
xiv) In our opinion, the Company is not
dealing in or trading in shares, securities, debentures, and other
investments.
Accordingly, the provisions of clause 4 (xiv) of the Companies
(Auditors Report) Order, 2003 are n6t applicable to the Company.
xv) According to the information and explanations given to us, the Company
has given corporate guarantees for loans taken by its subsidiary,
namely, ITDL Imagetec Ltd. and the terms of such guarantee are not
prejudicial to the interest of the company in view of
holding/subsidiary relationship.
xvi) According to the information and explanations given to us, no
term loan has been raised by the Company during the year.
xvii) According to the information & explanation given to us and on an
overall examination of the balance sheet of the company, we report that
no funds raised on short-term basis have been used for long term investments.
xviii) The Company has not made any preferential allotment of shares
during the year.
xix) During the year covered by our audit report the Company has not
issued secured debentures.
xx) The Company has not raised any money by public issues during the
year covered by our report.
xxi) Based upon the audit procedures performed and the information and
explanations given to us,by the management, we report that no fraud on
or by the Company has been noticed or reported during the course of our
audit.
Place: New Delhi
Date: 30th May, 2010 FOR K.N.GUTGUTIA&CO.,
(B.R.GOYAL)
PARTNER
CHARTERED ACCOUNTANTS
Membership No. 12172
ICAISFRN304153E
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