Mar 31, 2018
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying Standalone Ind AS Financial Statements of Innovative Tech Pack Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended and a summary of significant accounting policies and other explanatory information, (hereinafter referred to as âStandalone Ind AS Financial Statementsâ)
Managementâs Responsibility for the Ind AS Financial Statements
The Company''s 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 (state of affairs) financial position, profit or loss (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 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 provisions of the Act for safeguarding of 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 and ensuring their operating effectiveness and 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 are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these Standalone Ind AS Financial Statements based on our audit.
In conducting 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 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.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Standalone Ind AS Financial Statements. The procedures selected depend on the auditors'' 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 Company''s 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 accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the Standalone Ind AS Financial Statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Standalone Ind AS Financial Statements.
Opinion
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 Ind AS of the state of affairs of the Company as at 31st March, 2018,and its profit, total comprehensive income, the changes in equity and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
(1) As required by the Companies (Auditors'' Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in âAnnexure Aâ, a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
(2) As required by Section 143(3) of the Act, we report that:
a. We have sought and obtained all the information and explanations which to the 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 it appears from our examination of those books;
c. The Balance Sheet, the Statement of Profit and Loss including other comprehensive income, Cash Flow Statement 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 read with Notes there on comply with the Indian Accounting Standards specified under Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules, 2014;
e. On the basis of written representations received from the directors as on March 31, 2018, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 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, we give our separate Report in âAnnexure Bâ.
g. With respect to the other matters to be included in the Auditor''s 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 does not have any pending litigations which would impact its financial position;
(ii) There are no material foreseeable losses on long term contracts;
(iii) There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
ANNEXURE âAâ
TO THE INDEPENDENT AUDITORâS REPORT
[Referred to in paragraph 1 under âReport on Other Legal and Regulatory Requirements'' section in the Independent Auditor''s Report of even date)
Report on Companies (Companies (Auditorsâ Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Companies Act, 2013 (âthe Actâ) of Innovative Tech Pack Limited (âthe companyâ)
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of Property, plant and equipment which is pending for upgradation.
(b) The Company has a planned program of verifying all the Property, plant and equipment once in two years, according to which all the Property, plant and equipment were physically verified by the management in the year 2016-17. We understand that no material discrepancies were noticed on such verification. In our opinion, such physical verification program, is reasonable having regard to the size of the Company and the nature of its assets
(c) The title deeds of immovable properties recorded in the books of account of the Company are held in the name of the Company.
(ii) The inventory including Stock Lying with third parties except goods in transit, has been physically verified by the management during the year. In our opinion, the frequency of verification is reasonable. As informed, discrepancies noticed on physical verification were not material and they were properly dealt with in the books of account.
(iii) According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Act.
(iv) According to the information and explanation given to us in respect of loans, investments, guarantees and securities, the Company has complied with the provisions of Section 185 and 186 of the Act.
(v) In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public within the provisions of Sections 73 to 76 of the Act and the rules framed there under.
(vi) We have broadly reviewed the books of account maintained by the Company in respect of products where the maintenance of cost records has been specified by the Central Government under sub-section (1) of Section 148 of the Act and the rules framed there under and we are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete.
(vii) (a) 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, value added tax, customs duty, excise duty, cess and any other material statutory dues applicable to it, however, there have been slight delay in few cases / delays in deposit have not been serious.
According to the information and explanations given to us, undisputed dues in respect of provident fund, employees'' state insurance, income tax, sales tax, service tax, value added tax, customs duty, excise duty, cess and any other material statutory dues applicable to it, which were outstanding, at the year-end for a period of more than six months from the date they became payable are as follows: TDS demand
Name of the statute |
Nature of the dues |
Amount |
Period to which the amount relates |
Income Tax Act |
TDS demand |
4,96,020.00 |
F.Y 2007-08 to 2012-13 |
Income Tax Act |
TDS demand |
9,410.00 |
F.Y 2016-17 |
Income Tax Act |
TDS demand |
540.00 |
F.Y 2017-18 |
Income Tax Act |
Income tax demand u/s 220(2) |
17,390.00 |
F.Y 2008-09 |
Income Tax Act |
Income tax demand u/s 154 |
12,11,900.00 |
F.Y 2015-16 |
(b) According to the information and explanation given to us, there are no dues with respect to income tax, sales tax, service tax, value added tax, customs duty, excise duty, which have not been deposited on account of any dispute.
(viii) According to the information and explanations given to us, the Company has not defaulted in repayment of loans or borrowings to financial institution(s), bank(s), government(s).
(ix) In our opinion and according to the information and explanations given to us, the Company has utilized the money raised by way of the term loans during the year for the purposes for which they were raised. Further the company has not raised the money by way of public issue.
(x) During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of fraud by the Company or any fraud on the Company by its officers or employees, noticed or reported during the year, nor have we been informed of any such instance by the management.
(xi) According to the information and explanations given to us, managerial remuneration has been paid / provided in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, paragraph 3(xii) of the Order is not applicable to the Company.
(xiii) According to the information and explanation given to us, all transactions entered into by the Company with the related parties are in compliance with Sections 177 and 188 of Act, where applicable and the details have been disclosed in the Financial Statements etc., as required by the applicable accounting standards.
(xiv) The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, paragraph 3(xiv) of the Order is not applicable to the Company.
(xv) According to the information and explanations given to us, the Company has not entered into any non-cash transactions with directors or persons connected with him.
(xvi) According to the information and explanation given to us the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
ANNEXURE âBâ
TO THE INDEPENDENT AUDITORâS REPORT
(Referred to in paragraph 2 (f) under âReport on Other Legal and Regulatory Requirements'' section in the Independent Auditor''s Report of even date)
Report on the Internal Financial Controls over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ) of Innovative Tech Pack Limited (âthe companyâ)
We have audited the internal financial controls over financial reporting of Innovative Tech Pack 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 Company''s management is responsible for establishing and maintaining internal financial controls based on the 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 India (âICAIâ). 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 company''s 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 specified under section 143(10) of the Act to the extent applicable to an audit of internal financial controls, both issued by the ICAI. 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 auditor''s 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 Company''s 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 authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised 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, 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 the 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 ICAI.
For KRA & ASSOCIATES
FRN: 002352N
Chartered Accountants
Sd/-
Ashvani Goel
Place : New Delhi Partner
Date : 30.05.2018 (Membership No. 503452)
Mar 31, 2016
TO
THE MEMBERS OF INNOVATIVE TECH PACK LIMITED Report on the Financial Statements
We have audited the accompanying standalone financial statements of Innovative Tech Pack Limited(âthe Companyâ), which comprises the Balance Sheet as at 31, March, 2016, the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the financial Statements
The Company''s 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 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 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 the 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.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone 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, issued by the Institute of Chartered Accountants of India, 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 financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the 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 financial control relevant to the Company''s preparation of the 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 Company''s Directors, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone 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, of the state of affairs of the Company as at 31st March,
2016, its Profit, and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s report) Order,2016(âthe Orderâ)issued by the Central Government of India in terms of sub-section (11) of the section 143 of the Act, we give in the Annexure A a statement on the matters specified in paragraph 3 and 4 of the Order.
2. As required by Section 143 (3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the 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 it 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 aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of the written representations received from the directors as on 31st March, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2016 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 Annexure A
g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our knowledge and belief and according to the information and explanations given to us:
i. The Company has disclosed all pending litigations as at March 31, 2016 which would impact its financial position, if any. (Refer Note 27)
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by 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)
To
The Members of Innovative Tech Pack Limited
We have audited the internal financial controls over financial reporting of Innovative Tech Pack Limited (âthe companyâ) as of March 31, 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementsâ Responsibility for Internal financial controls
The Company''s Management is responsible for establishing and maintaining internal financial controls based on internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance note on Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate of internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s 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 deemed to be prescribed under section 143(10) of the Act 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 ICAI. 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 control 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 procedure selected depends on the auditor''s 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 Company''s 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 principles 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 expenditure 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 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 procedure 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 31,2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal controls stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For KRA & Associates
Chartered Accountants (FRN - 002352N)
Sd/-
Vidhya Jayaraman
Place : New Delhi (Partner)
Date : 05.09.2016 M.No. 502997
Mar 31, 2015
1. We have audited the accompanying standalone financial statements of
Innovative Tech Pack Limited ("the Company"), which comprise the
Balance Sheet as at March 31,2015, the Statement of Profit and Loss,
the Cash Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
Management's Responsibility for the Standalone 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 of these standalone financial statements to
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 provisions of the Act for safeguarding of 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, 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.
4. We have taken into account the provisions of the Act and the Rules
made there under including the accounting standards and matters which
are required to be included in the audit report.
5. We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act and other applicable
authoritative pronouncements issued by the Institute of Chartered
Accountants of India. Those Standards and pronouncements 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.
6. An audit involves performing procedures to obtain audit evidence
about the amounts and the 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 financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view, in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
7. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion on the
financial statements.
Opinion
8. In our opinion and to the best of our information and according to
the explanations given to us, 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, of the state of affairs of the Company as
at March 31,2015, and its profit/loss and its cash flows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
9. As required by 'the Companies (Auditor's Report) Order, 2015,
issued by the Central Government of India in terms of sub-section (11)
of section 143 of the Act (hereinafter referred to as the "Order"), and
on the basis of such checks of the books and records of the Company as
we considered appropriate and according to the information and
explanations given to us, we give in the Annexure a statement on the
matters specified in paragraphs 3 and 4 of the Order.
10. 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
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 it appears from our examination of
those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the
directors as on March 31,2015 taken on record by the Board of
Directors, none of the directors is disqualified as on March 31,2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our knowledge and belief
and according to the information and explanations given to us:
i. The Company does not have any pending litigations as at March 31,
2015 which would impact its financial position.
ii. The Company did not have any long-term contracts including
derivative contracts as at March 31,2015.
iii. There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company during the year
ended March 31,2015.
ANNEXURE TO INDEPENDENT AUDITOR'S REPORT
Referred to in paragraph 9 of the Independent Auditors' Report of even
date to the members of Innovative Tech Pack Limited on the financial
statements for the year ended March 31, 2015
i. (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation, of
fixed assets.
(b) The fixed assets are physically verified by the Management
according to a phased programme designed to cover all the items over a
period of three years which, in our opinion, is reasonable having
regard to the size of the Company and the nature of its assets.
Pursuant to the programme, a portion of the fixed assets has been
physically verified by the Management during the year and no material
discrepancies have been noticed on such verification.
ii. (a) The inventory has been physically verified by the Management
during the year. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion, 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) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
iii. The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under Section 189 of the Act. Therefore, the provisions of Clause
3(iii), (iii)(a) and (iii)(b) of the said Order are not applicable to
the Company.
iv. In our opinion, and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services. Further, on the basis of our examination of the books and
records of the Company, and according to the information and
explanations given to us, we have neither come across, nor have been
informed of, any continuing failure to correct major weaknesses in the
aforesaid internal control system.
v. The Company has not accepted any deposits from the public within
the meaning of Sections 73, 74, 75 and 76 of the Act and the rules
framed there under to the extent notified.
vi. 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 maintenance of cost records has been
specified under sub- section (1) of Section 148 of the Act, and are of
the opinion that, prima facie, the prescribed accounts and records have
been made and maintained. We have not, however, made a detailed
examination of the records with a view to determine whether they are
accurate or complete.
vii. (a) According to the information and explanations given to us and
the records of the Company examined by us, in our opinion, undisputed
statutory dues including provident fund, employees' state insurance,
income-tax, sales-tax, wealth tax, service tax, duty of customs ,duty of
excise, value added tax and cess have not generally been deposited
regularly with the appropriate authorities.
(b) According to the information and explanations given to us and the
records of the Company examined by us, the particulars of dues of sales
tax, as at March 31,2015 which have not been deposited on account of a
dispute, are as follows:
Name of the statute Nature of dues Amount
(in Rs.)
Central Sales Tax Act Central Sales Tax 3,306
Haryana Vat Act Local Sale Tax 52,380
Central Sales Tax Act Central Sales Tax 45,958
Haryana Vat Act Local Sale Tax 5,857
Name of the statute Period to which Due date
the amount relates
Central Sales Tax Act 2009-10 31st July, 2013
Haryana Vat Act 2009-10 31st July, 2013
Central Sales Tax Act 2009-10 31st July, 2013
Haryana Vat Act 2009-10 31st July, 2013
c) There are no amounts required to be transferred by the Company to
the Investor Education and Protection Fund in accordance with the
provisions of the Companies Act, 1956 and the rules made there under.
viii. The Company has no accumulated losses as at the end of the
financial year and it has not incurred any cash losses in the financial
year ended on that date or in the immediately preceding financial year.
ix. According to the records of the Company examined by us and the
information and explanation given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holders as at the balance sheet date.
x. In our opinion, and according to the information and explanations
given to us, the terms and conditions of the guarantees given by the
Company for loans taken by others from banks or financial institutions
during the year, are not prejudicial to the interest of the Company.
xi. In our opinion, and according to the information and explanations
given to us, the term loans have been applied for the purposes for
which they were obtained.
xii. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of any such case by the Management.
For BGJC & Associates
Firm Registration Number: 003304N
Chartered Accountants
Sd/-
Darshan Chhajer
Place : New Delhi Partner
Date : 30/05/2015 Membership Number 088308
Mar 31, 2014
1. We have audited the accompanying financial statements of the
Innovative Tech Pack Ltd. (''the Company''), which comprise the Balance
Sheet as at 31st March, 2014, 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 in section 133 of the Companies Act
''2013 ( ''the Act '' ) ( which has superseded section 211 (3C) of
Companies Act 1956 )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. Subject to in our opinion and to the best of our information and
according to the explanations given to us, the financial statement
together with the notes thereon give the information required by 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, 2014;
(ii) in the case of the Statement of Profit and Loss of the profit for
the year ended on that date; and
(iii) in the case of the Cash Flow Statement, of cash flows for the
year ended on that date.
7. As required by the Companies (Auditor''s Report) Order, 2003 (as
amended) (herein after collectively referred to as the ''Order''), issued
by the Central Government of India in terms of section 227 (4A) of the
Companies Act, 1956, we annex hereto a statement on the matters
specified in paragraph 4 & 5 of the said Order.
8. As required by Section 227(3) of the Act , we report that:
i. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
ii. In our opinion, proper books of accounts, as required by law have
been kept by the Company so far as appears from our examination of
those books;
iii. The Balance Sheet , Statement of Profit & Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
accounts of the Company;
iv. In our opinion, the Balance Sheet , Statement of Profit & Loss and
Cash Flow Statement dealt with by this report comply with the
Accounting Standard referred to in section 133 of the Companies Act
''2013 ( which has superseded section 211 (3C) of Companies Act 1956 );
v. On the basis of the written representations received from the
directors as on March 31,2014, and taken on record by the Board of
Directors, we report that none of the directors are disqualified as on
March 31,2014 from being appointed as a director in terms of clause (g)
of sub-section (1) of section 274 of the Companies Act, 1956.
Emphasis of matter
9. without qualifying our opinion we report that ( to be read with
note no. 32 & 33 of notes to accounts of financial statement):
a) During the year company has changed its accounting policy of
depreciation from straight line method to written down value method
with effect from 1st April, 2013 for certain assets ( Mould, Building
and Electric installations). Difference in accumulated depreciation as
on 31st March, 2013 due to change in policy related to these assets
amounting to Rs. 153,73,780 /- has been charged to Statement of Profit
and Loss in current year as exceptional item . Further , due to change
in depreciation policy current year depreciation and amortization is
lower by Rs. 61,00,712 /-.
b) From the current year the Company has started providing loss on live
chits on estimated basis which were provided on closure of chits till
previous year. Rs.53,94,313 /- has been charged to current quarter as
exceptional item.
ANNEXURE REFERRED TO IN PARAGRAPH 7 OF THE AUDITOR''S REPORT TO THE
MEMBERS OF INNOVATIVE TECH PACK LTD. ON THE ACCOUNTS FOR THE YEAR ENDED
31ST MARCH 2014.
i. a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) As per the explanation and information given to us, the Company has
policy to physically verify all its fixed assets over a year in a
phased manner which is in our opinion is reasonable having regard to
the size of the Company and nature of its fixed assets. However, during
the current year no verification has been done.
c) The Company has not disposed off substantial parts of its fixed
assets during the year.
ii. a) The inventories have been physically verified by the management
at the year end which is in our opinion is adequate.
The frequency of such verification is reasonable.
b) In our opinion and according to the information and explanation
given to us, the procedure of such physical verification of inventories
followed by the management is appears to be reasonable and adequate in
relation to the size and nature of its operations and inventory items
involved.
c) In our opinion, the Company has maintained proper records of
inventories. The discrepancies noticed on physical verification of
inventories as compared to book records were not material and have been
properly dealt with in the books of accounts.
iii. a) In the current year under audit the company has granted loan to
following parties covered in the register maintained under section 301
of the Companies Act, 1956:-
(in Rs. )
NAME OF PARTY MAX. AMOUNT OUTSTANDING CLOSING BALANCE AS At
31/03/2014
Mr. K. Sayaji Rao 21,59,021 Nil
Mr. K. Satish Rao 84,00,000 Nil
b) In our opinion and according to the information and explanations
given to us , the rate of interest and other terms and conditions for
such loans are not being prima facie prejudicial to the interest of the
company.
c) According to the said information and explanation given to us , the
parties (referred in para 4 (iii) (a) above ) to whom loan have been
granted, were regular in repayment of principal; as per contractual
terms.
d) According to the information and explanation given to us, there are
no overdue amount of loan in respect of amount referred above for
recovery for more than one year.
e) The Company has taken unsecured loan from following parties covered
in the register maintained under section 301 of the companies Act
1956:-
(in Rs. )
Name of Party Maximum amount Closing balance
outstanding
Mr. K.S. Rao Interest free 12,63,357 NIL
Mrs Pratibha Rao Interest free 3,55,664 NIL
Mr. K Satish Rao Interest free 25,00,000 NIL
Innovative Interest 254,51,470 219,80,550
Datamatics Ltd bearing
iv. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with size of the Company and the nature of its business for the
purchase of inventory, fixed assets and for the sale of goods &
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in the internal control
system.
v. According to the information and explanation provided to us by the
management, no contracts or arrangements were entered into during the
year as referred to in section 301 of the Companies Act, 1956. Hence,
this clause is not applicable.
vi. In our opinion and according to the information and explanations
given to us, the Company has not accepted deposits from public within
the meaning of section 58A/58AA of the Companies Act, 1956 or any other
relevant provisions of the Act and the rules framed there under.
vii. During the year covered under audit a firm of chartered
accountants had carried out internal audit of some departments/
functions of company but the scope , area covered and frequency of
audit in not commensurate with the size of the Company and nature of
its business.
viii. The maintenance of cost records u/s 209 (1) (d) of the Companies
Act, 1956 is applicable to the company. The company has made &
maintained such records , however we have not made detailed review of
such records.
ix. a) According to the information and explanation given to us, the
undisputed statutory dues including Provident Fund , Investors
Educations Fund , income tax and sales tax, wealth tax, service tax etc
have generally been regularly deposited with the appropriate
authorities during the year though delay in some cases noticed.
b) In the following cases statutory dues were outstanding more than six
months from the date they became payable as at year end :-
Name of statute Nature of dues Amount Period to which
(in Rs. dues belongs
Central sales Central sales tax 3,306 2009-10
Tax Act
Haryana VAT Act Local sales tax 52,380 2009-10
Central sales Central sales tax 45,958 2009-10
Tax Act
Haryana VAT Act Local sales tax 5,857 2009-10
Name of statute Due date
Central sales 31st July, 2013
Tax Act
Haryana VAT Act 31st July, 2013
Central sales 31st July, 2013
Tax Act
Haryana VAT Act 31st July, 2013
c) As per the information and explanation given to us as at 31st march
2014 there were no dues of income tax, sales tax, wealth tax, service
tax, excise duty, customs duty and cess etc which have not been
deposited on account of any dispute.
x. The Company does not have accumulated losses at the year ended
March 31st, 2014. The company has not incurred cash losses in the year
covered by our audit and also in the immediately preceding financial
year.
xi. As per information and explanations given by the management, in
our opinion the Company has not defaulted in repayment of any loan /
dues taken from bank / financial institution.
xii. In our opinion and according to the information and explanations
given to us, the Company has not granted any loans and advances during
the year on the basis of security by way pledge of shares, debentures
and other securities.
xiii. In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund/society. Therefore, the provisions of clause
4(xiii) of Order are not applicable to the Company.
xiv. According to the information and explanations given to us, the
Company is not dealing / trading in shares, securities and other
investments.
xv. According to the information and explanations given to us, the
Company has not given any guarantees for loan taken by others from any
Bank / financial institution.
xvi. According to the information and explanations given to us the,
Company has applied term loans for the purpose it was obtained.
xvii. According to the information and explanations 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 covered under audit.
xix. The Company had no outstanding debentures during the year.
xx. The Company has not raised any money by way of public issue during
the year.
xxi. Based upon audit procedures performed and according to the
information and explanations given to us by the management and to the
best of our knowledge, we report that no fraud on or by the Company has
been noticed or reported during the course of our audit.
For BGJC & Associates
CHARTERED ACCOUNTANTS (FRN- 003304N)
Sd/-
DARSHAN CHHAJER
Place : New Delhi (PARTNER)
Date : 30.05.2014 M. No. 088308
Mar 31, 2013
1. We have audited the accompanying financial statements of the
Innovative Tech Pack Limited (''the Company''), which comprise the
Balance Sheet as at 31st March, 2013, 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 in subsection (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. We report that:
(i) During the year company has changed its accounting policy of
depreciation from ''Straight Line Method'' to ''Written Down Value Method''
with effect from 1st April, 2012 for asset category Plant & Machinery
only. Difference in accumulated depreciation as on 31st March, 2012 due
to change in policy in relate to existing assets amounting to Rs.
3,56,97,561/- has been charged to Statement of Profit and Loss as
exceptional item . Further, due to change in depreciation policy
current year ''Depreciation and amortization'' is higher by Rs.
10,43,308/-. Had the earlier policy of depreciation been followed, the
current year profit before tax and retained earnings would have been
higher by Rs. 3,67,40,869/- (without considering tax effect). (To be read
with note no.-33)
(ii) The company has not provided loss on running chit fund schemes. As
a policy company shall provide for loss in the year Chit is closed,
which has been the past practice ( to be read with note no.32).
7. In our opinion (to be read with matters reported in above
paragraph) and to the best of our information and according to the
explanations given to us, the financial statement together with the
notes thereon give the information required by Act, 1956, in the manner
so required and give a true and fair view in conformity with the
accountingp r i n c i p l e s generally accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2013; (ii) in the case of the Statement of
Profit and Loss of the profit for the year ended on that date; and
(iii) in the case of the Cash Flow Statement, of cash flows for the
year ended on that date.
8. As required by the Companies (Auditor''s Report) Order, 2003 (as
amended) (herein after collectively referred to as the ''Order''), issued
by the Central Government of India in terms of section 227 (4A) of the
Companies Act, 1956, we annex hereto a statement on the matters
specified in paragraph 4 & 5 of the said Order.
9. As required by section 227(3) of the Act, we report that:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
(ii) In our opinion, proper books of accounts, as required by law have
been kept by the Company so far as appears from our examination of
those books;
(iii) The Balance Sheet, Statement of Profit & Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
accounts of the Company;
(iv) In our opinion, the Balance Sheet , Statement of Profit & Loss and
Cash Flow Statement dealt with by this report comply with the
Accounting Standard referred to in Section 211 (3C) of the Companies
Act, 1956;
(v) On the basis of the written representations received from the
directors as on March 31, 2013, and taken on record by the Board of
Directors, we report that none of the directors are disqualified as on
March 31, 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 AUDITOR''S REPORT
Annexure referred to in Paragraph 1 of the Auditor''s Report To The
Members Of INNOVATIVE TECH PACK LIMITED On the Accounts for the period
ended 31st March, 2013.
i) a) The company is in the process of updating its fixed assets
register showing full particulars, including quantitative details and
situation of fixed assets.
b) The company has policy to physically verify all assets over a period
of three years. According to the explanation and information given to
us, during the year Plant and Machinery at Rudrapur unit have been
physically verified by the management and no discrepancy noticed.
c) During the period, the company has not disposed off substantial part
of its fixed asset that affects the going concern status of the
company.
ii) a) The inventory has been verified during the period by the
management. In our opinion, the frequency of verification is
reasonable.
b) The procedure of verification of inventories followed by the
management is reasonable and adequate in relation to the size of the
company and nature of its business.
c) On the basis of our examination of records of inventory, in our
opinion, the company has maintained proper records of inventory and the
discrepancies noticed on physical verification were not material in
relation to the operations of the company and the same has been
properly dealt with the books of accounts.
iii) a) The company has not granted any loans, secured or unsecured to
companies, firms or other parties as covered in the register maintained
under section 301 of the Act. Accordingly, the provisions of clause
4(iii) (a) to (d), of the Order are not applicable. b) The company has
taken interest free as well interest bearing unsecured loans from
following parties covered in the register maintained under section 301
of the Act during the period under audit.
(in Rs.)
Name of Party Maximum amount
outstanding Closing
balance
Mr. K.S. Rao Interest
free 12,38,357/- 12,38,357/-
Mrs. Pratibha Rao Interest
free 15,76,369/- 1,76,369/-
Mr. K. Satish Rao Interest
free 3,00,000/- 3,00,000/-
Innovative Datamatics Ltd Interest bearing 2,09,21,470/- 2,09,21,470/-
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchase of inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in the
internal control.
v) a) According to the information and explanation given to us, we are
of the opinion that the transaction made in pursuance of contracts or
arrangement entered in the register maintained under section 301 of the
companies act, 1956 have been so entered. b) In our opinion and
according to the information and explanations given to us, the
transactions made in pursuance of contracts or arrangements entered in
the register maintained under section 301 of the companies act, 1956
and exceeding the value of rupee five lakhs in respect of any party
during the period have been made at prices which are reasonable having
regard to prevailing market prices at the relevant time.
vi) The Company has not accepted any deposit during the period from
public within the meaning of section 58A, 58AA or any other relevant
provisions of the companies Act, 1956.
vii) In our opinion, the company has internal audit system which needs
to be strengthened.
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 maintenance of cost records has been
prescribed under clause (d) of sub-section (1) of section 209 of the
Act, and are of the opinion that prima facie, the prescribed accounts
and records have been made and maintained.
ix) Undisputed statutory dues including provident fund, investor
education and protection fund, employees'' state insurance, income-tax,
sales-tax, wealth tax, service tax, custom duty, excise duty, cess etc
have generally been regularly deposited with the appropriate
authorities though there was delay in few cases. According to the
information and explanation given to us, no undisputed amounts are
payable were in arrears as at 31st March, 2013 for a period of more
than six month from the date they became payable.
x) The company does not have accumulated losses as on 31st March, 2013
and it has not incurred cash losses in the current financial year ended
on that date or in the immediately preceding financial period.
xi) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to a
financial institution or bank as at the balance sheet date.
xii) According to the information given to us the company has not
granted loans and advances on the basis of security by way of pledge of
shares, debenture and other securities.
xiii) In our opinion, the company is not a chit fund or a nidhi mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Order are not applicable to the company.
xiv) In our opinion and according to the information and explanations
given to us the company does not deals in shares, securities,
debentures and other securities. The investment made in National
Savings Certificate has been held by the company is in the name of its
Managing Director.
xv) According to the information and explanations given to us the
company has not given any guarantees for loans taken by others from
banks or financial institutions.
xvi) According to the information given to us the company has used term
loans for the purpose for which it was availed.
xvii) According to the information and explanations 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 investment.
xviii) According to the information and explanations given to us,
during the period covered by our audit report the company has not made
any preferential allotment of shares.
xix) According to the information and explanations given to us, during
the period covered by our audit report, the company has not issued any
debentures.
xx) According to the information and explanations given to us, during
the period covered by our audit report no money has been raised by
public issues.
xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For BGJC & Associates
CHARTERED ACCOUNTANTS
(FRN- 003304N)
Sd/-
DARSHAN CHHAJER
Place: New Delhi (PARTNER)
Date : 30.05.2013 M. No. 088308
Mar 31, 2012
We have audited the attached Balance Sheet of Innovative Tech Pack
Limited ("the Company") as at 31st March, 2012 , the Statement of
Profit & Loss and the Cash Flow Statement of the Company for the period
ended on that date annexed thereto. 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.
We have conducted our audit in accordance with the 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.
1. As required by Companies (Auditor's Report) Order, 2003, ("the
order"), as amended, issued by the Central Government in terms of
section 227 (4A) of the Companies Act, 1956 ("the Act"), we enclose
in the Annexure hereto a statement on the matters specified in
paragraph 4 & 5 of the said Order as under.
2. Attention is drawn to this fact that during the period the company
has changed policy of charging depreciation from Straight Line Method
(SLM) to Written Down Value Method (WDV) with effect from 1st May'
2011 on certain assets. Difference in accumulated depreciation as on
30th April'2011 due to change in depreciation policy in relate to
assets existing on that date (opening block) amounting to Rs.
543,03,865/- has been charged to Statment of Profit & Loss Account as
exceptional item. Had the earlier policy of charging depreciation on
Straight Line Method on certain assets been followed, current period
profit before tax and reserve as on date (without considering tax
effect) would have been lower by Rs. 2,720/-.
3. Further to our comments in paragraph 1 above, 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 purpose of our
audit;
b) in our opinion, proper books of account, as required by law have
been kept by company so far as appears from our examination of those
books;
c) the Balance Sheet, the Statement Of Profit & Loss and Cash Flow
Statement dealt with this report are in agreement with the books of
accounts;
d) in our opinion, Balance Sheet, the Statement Of Profit & Loss and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of Section 211 of
the Act 1956, in so far as they apply to the company;
e) on the basis of the written representations received from the
directors as on 31st March'2012 and taken on record by the Board of
Directors, we report that none of the directors are disqualified as on
31st March'2012 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Act; and
f) in our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
significant accounting policies and other notes thereon 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 Balance Sheet, of the state of affairs of the Company
as at 31st March' 2012;
ii. in the case of Statement of Profit & Loss , of the profit of the
Company for the period ended on, that date and
iii. in the case of Cash Flow Statements, of the cash flows of the
Company for the period ended on that date.
ANNEXURE TO AUDITOR'S REPORT
Annexure referred to in Paragraph 1 of the Auditor's Report To The
Members Of INNOVATIVE TECH PACK LIMITED On the Accounts for the period
ended 31st March'2012.
i) a) The company has maintained proper records showing full
particulars, including quantitative details and situation of
fixed assets.
b) The company has defined policy to physically verify all assets over
a period of three years from this period. According to the explanation
and information given to us fixed assets shall be physically verified
by the management in the next year.
c) During the period, the company has not disposed off substantial part
of its fixed asset that affects the going concern status of the
company.
ii) a) The inventories have been verified during the period by the
management. In our opinion, the frequency of verification
is reasonable.
b) The procedure of verification of inventories followed by the
management is reasonable and adequate in relation to the size of the
company and nature of its business.
c) On the basis of our examination of records of inventory, in our
opinion, the company has maintained proper records of inventory and the
discrepancies noticed on physical verification were not material in
relation to the operations of the company and the same has been
properly dealt with the books of accounts.
iii) d) The company has not granted any loans, secured or unsecured to
companies, firms or other parties as covered in
the register maintained under section 301 of the Act . Accordingly, the
provisions of clause 4(iii) (b) to (d), of the Order are not
applicable.
e) The company has taken interest free as well interest bearing
unsecured loans from following parties covered in the register
maintained under section 301 of the Act during the period under audit.
(in Rs.)
Name of
Party Maximum amount
outstanding Closing balance
Mr. K.S.
Rao Interest
free 89,55,456/- NIL
Mrs. K.
Pratibha
Rao Interest
free 413,730/- 355,664/-
Mr. K.
Satish Rao Interest
free 31,00,000/- NIL
Innovative
Datamatics
Ltd Interest
bearing 206,58,951/- 172,40,069/-
(f) on the basis of terms and conditions of loan, we have the view that
rate of interest and other terms and conditions of interest bearing
loan and other loans are prima facie not prejudicial to the interest of
the company. (g) The payment of principal and interest are as per
agreed terms.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchase of inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in the
internal control.
v) a) According to the information and explanation given to us, we are
of the opinion that the transaction made in pursuance
of contracts or arrangement entered in the register maintained under
section 301 of the companies act, 1956 have been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the companies act, 1956 and exceeding the value of rupee five lakhs in
respect of any party during the period have been made at prices which
are reasonable having regard to prevailing market prices at the
relevant time.
vi) The Company has not accepted any deposit during the period from
public within the meaning of section 58A, 58AA or any other relevant
provisions of the Companies Act' 1956.
vii) In our opinion, the company has an internal audit system
commensurate with its size and nature of business which needs to be
improved in terms of periodicity.
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 maintenance of cost records has been
prescribed under section 209(1) (d) of the Act, and are of the opinion
that, prima facie, the prescribed accounts and records have been made
and maintained.
ix) a) Undisputed statutory dues including Provident Fund, Investor
Education and Protection Fund, Employees' State Insurance,
Income-Tax, Sales-Tax, Wealth Tax, Service Tax, Custom Duty, Excise
Duty, Cess etc have generally been regularly deposited with the
appropriate authorities though there were delays in some cases.
According to the information and explanation given to us, following
undisputed amounts are payable were in arrears as at 31st March'2012
for a period of more than six month from the date they became payable:-
Particulars Amount
outstanding Period to which dues are
(in Rs.) related
Wealth Tax 251,886/-* FY 2006-07 to FY 2009-10
*since paid.
b) According to the information and explanation given to us, there were
no dues of Income-Tax, Sales-Tax, Wealth Tax, Service Tax, Custom Duty,
Excise Duty, Cess etc which have not been deposited on account of any
dispute except given below:
Name
statute Nature
of dues Amount
unpaid Related
Period Forum where
(inRs.) dispute is
pending
Central
Excise Demand
for 3,42,750 2008-09 CESTAT
Act,
1944 Modvat
Claim
FERA Penalty 15,00,000 1993-1998 Tribunal
x) The company does not has accumulated losses as on 31st March'2012
and it has not incurred cash losses in the current financial period
ended on that date or in the immediately preceding financial period.
xi) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to a
financial institution or bank as at the Balance Sheet date.
xii) According to the information given to us the company has not
granted loans and advances on the basis of security by way of pledge of
shares, debenture and other securities.
xiii) In our opinion, the company is not a chit fund or a nidhi mutual
benefit fund /society. Therefore, the provisions of clause 4(xiii) of
the Order are not applicable to the company.
xiv) In our opinion and according to the information and explanations
given to us the company does not deals in shares, securities,
debentures and other securities. The investment made in National
Savings Certificate has been held by the company is in the name of its
Managing Director. .
xv) According to the information and explanations given to us the
company has not given any guarantees for loans taken by others from
banks or financial institutions.
xvi) According to the information given to us the company has used term
loans for the purpose for which it were availed.
xvii) According to the information and explanations 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 investment.
xviii) According to the information and explanations given to us,
during the period covered by our audit report the company has not made
any preferential allotment of shares.
xix) According to the information and explanations given to us, during
the period covered by our audit report, the company has not issued any
debentures.
xx) According to the information and explanations given to us, during
the period covered by our audit report no money has been raised by
public issues.
xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For BGJC & Associates
CHARTERED ACCOUNTANTS
(FRN- 003304N)
Sd/-
DARSHAN CHHAJER
Place : New Delhi (PARTNER)
Date : 30.05.2012 M. No. 088308
Sep 30, 2010
We have audited the attached balance sheet of Innovative Tech Pack
Limited ("the Company") as at September 30th, 2010 and the profit &
loss account and the cash flow statement of the Company for the period
ended on that date annexed thereto. 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.
We have conducted our audit in accordance with the 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.
1. As required by Companies (Auditors Report) Order, 2003, ("the
order"), as amended, issued by the Central Government in terms of
section 227 (4A) of the Companies Act, 1956 (" the Act"), we enclose in
the Annexure hereto a statement on the matters specified in paragraph 4
& 5 of the said Order as under.
2. Further to our comments in paragraph 1 above, 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 purpose of our
audit;
b) in our opinion, proper books of account, as required by law have
been kept by company so far as appears from our examination of those
books;
c) the balance sheet, the profit & loss account and cash flow statement
dealt with this report are in agreement with the books of accounts;
d) in our opinion, the balance sheet , profit & loss account and cash
flow statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of Section 211 of the Act
1956, in so far as they apply to the company;
e) on the basis of the written representations received from the
directors as on 30th September2010 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
30th September 2010 from being appointed as a director in terms of
clause (g) of sub-section (1) of section 274 of the Act; and
f) in our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
significant accounting policies and other notes thereon 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 balance sheet, of the state of affairs of the
Company as at September 30, 2010;
ii. in the case of profit & loss account, of the profit of the Company
for the period ended on, that date and
iii. in the case of Cash flow statements, of the cash flows of the
Company for the period ended on that date.
ANNEXURE TO AUDITORS REPORT
Annexure referred to in Paragraph 1 of the Auditors Report To The
Members of INNOVATIVE TECH PACK LIMITED on the Accounts for the period
ended 30th September 2010
i) a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) According to the explanation and information given to us certain
fixed assets have been physically verified by the management during the
period under audit. .
c) During the period, the company has not disposed off substantial part
of its fixed asset that affect the going concern status of the company.
ii) a) The inventory (except stocks lying with third parties) has been
verified during the period by the management. In our opinion, the
frequency of verification is reasonable.
b) The procedure of verification of inventories followed by the
management is reasonable and adequate in relation to the size of the
company and nature of its business.
c) On the basis of our examination of records of inventory, in our
opinion, the company has maintained proper records of inventory and the
discrepancies noticed on physical verification were not material in
relation to the operations of the company and the same has been
properly dealt with the books of accounts.
iii) a) The company has not granted any loans, secured or unsecured to
companies, firms or other parties as covered in the register maintained
under section 301 of the Act . Accordingly, the provisions of clause
4(iii) (b) to (d), of the Order are not applicable.
e) The company has taken interest free unsecured loans from three
parties covered in the register maintained under section 301 of the Act
during the period under audit. Accordingly the provisions of clause
4(iii) (f) & (g), of the Order are not applicable. The maximum amount
outstanding was Rs.128.50 lacs.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchase of inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in the
internal control.
v) a) According to the information and explanation given to us, we are
of the opinion that the transaction made in pursuance of contracts or
arrangement entered in the register maintained under section 301 of the
Companies Act, 1956 have been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the companies act, 1956 and exceeding the value of rupee five lakhs in
respect of any party during the period have been made at prices which
are reasonable having regard to prevailing market prices at the
relevant time.
vi) The Company has not accepted any deposit during the period from
public within the meaning of section 58A, 58AA or any other relevant
provisions of the companies Act1956.
vii) In our opinion, the company has an internal audit system
commensurate with its size and nature of business.
viii) As explained to us by the management and according to the
information given to us, maintenance of cost records as prescribed
under section 209(1) (d) of the Companies Act, 1956 is not applicable
to the company.
ix) a) Undisputed statutory dues including provident fund, investor
education and protection fund, employees state insurance, income-tax,
sales-tax, wealth tax, service tax, custom duty, excise duty, cess etc
have generally been regularly deposited with the appropriate
authorities though there was delay in few cases.
According to the information and explanation given to us, following
undisputed amounts are payable were in arrears as at 30.09.2010 for a
period of more than six month from the date they became payable:-
Particulars Amount outstanding
(in Rs.)
Wealth Tax 157,790
Fringe Benefit Tax 723,007
b) According to the information and explanation given to us, there are
no dues of sale tax, income tax, customs duty, wealth tax, excise duty
and cess which have not been deposited on account of any dispute except
given below:
Name statue Nature of Amount Related Forum where
Dues Unpaid
(in Rs.) Period Dispute is
Pending
Central Excise
Act1944 Demand for
Modvat Claim 15,42,750 2008-09 CESTAT
FERA Penalty 15,00,000 1993-1998 Tribunal
x) The company has accumulated losses amounting to Rs.248.00 Lacs as on
30.09.2010 but the company has not incurred
cash losses in the financial period ended on that date or in the
immediately preceding financial year.
xi) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to a
financial institution or bank as at the balance sheet date.
xii) According to the information given to us the company has not
granted loans and advances on the basis of security by way of pledge of
shares, debenture and other securities.
xiii) In our opinion, the company is not a chit fund or a nidhi mutual
benefit fund /society. Therefore, the provisions of clause 4(xiii) of
the Order are not applicable to the company.
xiv) In our opinion and according to the information and explanations
given to us, proper records have been maintained with respect to
transactions and contracts relating to dealing or trading in shares,
securities, debentures and other investments, and timely entries have
been made therein. The shares, securities, debentures and other
securities have been held by the company is in its own name.
xv) According to the information and explanations given to us the
company has not given any guarantees for loans taken by others from
banks or financial institutions.
xvi) According to the information given to us the company has used term
loans for the purpose for which it were raised.
xvii) According to the information and explanations 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 investment. No long-term funds have been used to finance
short-term assets .
xviii) According to the information and explanations given to us,
during the period covered by our audit report the company has not made
any preferential allotment of shares.
xix) According to the information and explanations given to us, during
the period covered by our audit report, the company has not issued any
debentures.
xx) According to the information and explanations given to us, during
the period covered by our audit report no money has been raised by
public issues.
xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For BGJC & Associates
CHARTERED ACCOUNTANTS
(Firm Registration No: 003304N)
PLACE: New Delhi
DARSHAN CHHAJER
DATE: 07.01.2011 (PARTNER)
Membership No: 088308