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Auditor Report of Monotype India Ltd.

Mar 31, 2014

We have audited the accompanying financial statements of MONOTYPE INDIA LIMITED, which comprise the Balance Sheet as at March 31st 2014, and the Statement of Profit and Loss and the Cash Flow Statement of the company for the year ended, for the year ended, and a summary of significant accounting policies and other explanatory information.

MANAGEMENT''S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

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

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.

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 entity''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.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

OPINION

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:

a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31st 2014;

b) in the case of the Profit and Loss Account, 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

1. The Companies (Auditor''s Report) Order, 2003 issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Companies Act, 1956, applies to the Company.

2. In our opinion, the Balance sheet and the Profit and loss Account dealt with by this report comply with the Accounting Standard (AS) referred to in sub-section of Section 211 of the Companies Act, 1956.

3. 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 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 appears from our examination of those books;

c) the Balance Sheet and Statement of Profit and Loss, dealt with by this Report are in agreement with the books of account;

d) in our opinion, the Balance Sheet and Statement of Profit and Loss and Cash Flow Statement comply with the Accounting Standards referred to in subsection (3C) of section 211 of the Companies Act, 1956;

e) on the basis of written representations received from the directors as on March 31st 2014, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31st 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 INDEPENDENT AUDITOR''S REPORT FOR THE YEAR ENDED ON 31ST MARCH, 2014 Referred to in our report of even date

I. The Company does not have any fixed assets during the year under review. Accordingly, the provisions of clause 4 (i) of the order are not applicable to the company.

II. The Company does not have any inventory. Accordingly, the provisions of clause 4 (ii) of the order are not applicable to the Company.

III. In respect of the loans secured or unsecured, granted or taken by the Company to / from companies, firm or other parties covered in the registered maintained under Section 301 of the Companies Act, 1956:

(a) The company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956. Accordingly, paragraph 4 (iii) (a) of the order are not applicable.

(b) The Company has taken unsecured loans from two companies and a party, covered in the register maintained under Section 301 of the Companies Act, 1956. The maximum amount involved during the year of such loan was Rs. 6,76,084 and the year end balance of such loan was Rs. 6,76,084.

(c) The rate of interest and other terms and conditions of such loans are, in our opinion, prima facie, not prejudicial to the interest of the company.

IV. In our opinion and according to the information and explanation given to us, there is an adequate internal control system commensurate with the size and nature of its business with regard to purchase of inventory, fixed assets etc. We have not observed any major weaknesses in the internal control system during the course of the audit.

V. In our opinion and according to the information and explanations given to us, transaction that needs to be entered into the register maintained under Section 301 of the Act, 1956 has been entered.

VI. According to information and explanations given to us, the Company has not accepted any deposits from the public. Therefore, the provisions of the Clause (vi) of paragraph 4 of the order are not applicable.

VII. The company does not have an internal audit department.

VIII. As informed to us the Central Government has not prescribed for the maintenance of cost records under section 209(1) (d) of the Companies Act, 1956 for any of the products of the Company.

IX. The Company is regular in depositing 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 and any statutory dues with the appropriate authorities, there is no other undisputed statutory demand outstanding for more than six months from the date they became payable.

X. The Company has accumulated losses of Rs. 443.52 Lacs which is more than 50% of the net worth of the company. The company has earned cash profits during the financial year and in the immediately preceding financial year.

XI. According to the information and explanations given to us and based on the documents and records produced to us, the company did not have any borrowing from a financial institution or bank or debenture holders and hence clause 4(xi) of the companies (Auditor''s Report) Order, 2003 (as amended) is not applicable.

XII. In our opinion and according to the explanation available, no loans and advances have been granted by the company on the basis of security by way of pledge of shares, debentures and other securities.

XIII. In our opinion, the Company is not chit fund / nidhi / mutual benefit fund / society. Therefore, the provisions of the Clause (xiii) of paragraph 4 of the order are not applicable to the Company.

XIV. In our opinion, the company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provision of clause 4 (xiv) of the Companies (Auditor''s Report) Order, 2003 (as amended) are not applicable to the company.

XV. The company has not given guarantee for the loans taken by others from banks or financial institution; hence clause (xv) of Para 4 of the Order is not is not applicable.

XVI. During the year the Company has not taken any term loan. In respect of loan taken in earlier years, utilization of such amount for specific purposes cannot be verified by us, in the absence of the relevant records, we are unable to comment upon the same.

XVII. According to the information and explanation given to us and overall examination of the Balance Sheet of the Company ,we are of the opinion that there are no funds raised on short term basis that have been applied for long term investment.

XVIII. The Company has not made any preferential allotment of shares to parties and companies covered in Registered maintained under Section 301 of the Company Act, 1956.

XIX. The Company has not issued any debentures during the year and no debentures were outstanding as at 31st March, 2014. Accordingly, requirements of clause 4 (xix) of the Order are not applicable to the Company.

XX. The Company has not made any public issue during the year.

XXI. Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per the information and explanations given by the management, we report that no fraud on or before by the company has been noticed or reported during the course of our audit.

For Motilal & Associates Chartered Accountants Firm Registration No.: 106584W

CA Motilal Jain Proprietor Membership No.: 036811 Place: Kolkata Date : 28th May, 2014


Mar 31, 2010

We have audited the attached Balance Sheet of Monotype India Limited (The Company) as at 31st March, 2010 and the Profit and Loss account and Cash Flow of the Company for the year 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 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 support the financial statements, the amounts and disclosures in the financial statement. An audit also includes examining, on a test basis, evidence supporting the amount 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 the Companies (Auditors Report) (Amendment) Order, 2003 (the Order) issued by the Central Government of India in terms of section 227(4A) of the Companies Act, 1956 (the Act), and on the basis of such checks as we considered appropriate and according to the information and explanations given to us and subject to non availability of the relevant details / information / records due to the reasons given in Note 2 of Schedule 13, wer annex hereto a statement on the matters specified in the said order to the extent applicable to the company.

2. Due to reasons given in Note 5 of Schedule 13, the accounts of the company have been prepared on the basis that it is a going concern though the accumulated losses of the company as on 31.03.2010 have exceeded its entire net worth on that date.

3. As indicated in Note 2 of Schedule 13, relevant records in respect of factory, and other offices were not available for our verification. Consequently, the figures compiled by the company for the purpose of these accounts including the quantitative details / information as given under Schedules to the accounts could not be verified by us with respect to the primary and secondary records and supplementary documents and details. Accordingly, in the absence of relevant details / records and or full information reconciliation / confirmation, we are unable to express any opinion on the amounts of various assets and liabilities, expenses and income (including adjustments made during the year to such assets and liabilities), the adequacy and compliance thereof with the relevant Accounting Standards issued by the Institute of Chartered Accountants of India and impact thereof on the profit and accumulated losses of the company.

4. Attention is invited to the following notes of Schedule 13:

a. Note 1 regarding non ascertainment of liabilities in respect of items disclosed under contingent liabilities and adequacy of the disclosure / provision in these respect.

b. Note 4 and 5 regarding non ascertainment / confirmation / reconciliation and consequential adjustments in respect of certain statutory dues and other balances and non ascertainment of the impact on the profit for the year and the accumulated losses at the year end.

5. The overall impact of adjustments to be carried out including with regard to various legal and other implication arising with respect to our remarks under paras 2 to 4 above or otherwise has not been ascertained and therefore cannot be commented upon by us.

6. According to the information and explanation given to us and on the basis of test check carried out by us during the course of the audit of the company, our report on the matters specified under Para 3A and 3C of Non Banking Financial Companies Auditors Report (Reserve bank) Direction, 1998 is as follows:

I. The company has been incorporated prior to January 9, 1997 and has not applied for registration as provided in Section 45 (1A) of the Reserve Bank of India Act, 1934, (2 of 1934).

II. The Board of directors has passed the resolution for non acceptance of the public deposits.

III. The Company has not accepted any public deposits during the year.

PV. The company has complied with the prudential norms on income recognition, accounting standard, asset classification and provisioning for bad and doubtful debts as specified in the direction issued by the Reserve Bank of India in terms of the Non Banking Financial Companies Prudential Norms (Reserve Bank) Directions, 1998.

7. For the reasons given in Note 4 of Schedule 13 various directions as applicable to a Non Banking Financial Company, issued by the Reserve Bank of India, inter alia with regard to disclosures of information in the financial statements have not been adhered to.

8. Further to the above and subject to our comments in paragraph 1 and the annexure referred therein and subject to and except as given in Paragraphs 2 to 4 above, we report that:

a. We have obtained all the information and explanation, which to the best of bur knowledge and belief were necessary for the purpose of our audit;

b. In our opinion, the said accounts give in the prescribed manner the information required by the Companies Act, 1956 and proper books of accounts as required by laws have been kept by the Company so far as appears from our examination of the books;

c. In our opinion, the Balance Sheet, the Profit and Loss Account and Cash Flow Statement comply with the Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956;

d. On the basis of written representations received from the directors 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 directors in terms of Clause (g) of Sub-Section (1) of Section 274 of the Companies Act, 1956;

e. In our opinion and to the best of our information and according to the explanations given to us and in view of our observation in Para 2 to 4 above and our inability to ascertain and comment on the overall impact as per Para 5 with respect to para 7, we are unable to express our opinion on whether the said Balance Sheet and Profit and Loss Account are in agreement with the books of account and whether the said accounts give a true and fair view in conformity with the accounting principles generally accepted in India:

i. In case of the Balance Sheet, of the State of Affairs of the company as at 31.03.2010;

ii. In the case of the Profit and Loss Account, of the Loss for the year ended on that date; and

iii. In case of the Cash Flow Statement, of the Cash Flow for the year ended on that date.

ANNEXURE REFERRED TO IN PARAGRAPH 1 OF AUDITORS REPORT OF EVEN DATE TO THE MEMBERS OF MONOTYPE INDIA LIMITED FOR THE YEAR ENDED 31ST MARCH 2010

I. The Company does not have any fixed assets. Accordingly, the provisions of clause 4 (i) of the Order are not applicable to the Company.

II. The Company does not have any inventory. Accordingly, the provisions of clause 4 (ii) of the Order are not applicable to the Company.

III. (a) The Company has obtained interest free unsecured loan from promoter Company listed

in the register maintained under section 301 of the Companies Act, 1956. The number of parties involved was one and the maximum amount involved during the year is Rs. 34,16,886.00 and amount outstanding as at the year end is Rs.22,46,886.00.

(b) According to the information given to us, the terms and conditions on which such loans were obtained, are prima facie not prejudicial to the interest of the Company.

(c) The terms of repayment have not been specified.

(d) In absence of terms of repayment, we are unable to express any opinion that the Company is regular in repayment of the loan.

(e) No loan has been granted to any Company listed in register maintained under section 301. Consequently, the provisions of clause 4 (iii) (b) to (d) of the order are not applicable to the Company.

IV. According to the information and explanations given to us, during the year there was no purchase of inventory, fixed assets and sale of goods and as such clause 4 (IV) of the order is not applicable to the Company.

V. In our opinion and according to the information and explanations given to us, there is no transaction that needs to be entered into the register maintained under section 301 of the Act, 1956.

In view of remarks given in Para v (a) requirements of clause v (b) of the order are not applicable to the Company.

VI. 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 meaning of directives issued by the Reserve Bank of India and the provisions of Section 58A of the Companies Act, 1956 and rules framed there under.

VII. As explained to us, due to the situation prevailing in the company on account of suspension of operation, internal audit of the Company could not be carried out during the year.

VIII. As informed to us the Central Government has not prescribed for the maintenance of cost records under section 209(1) (d) for any of the products of the Company.

IX. (a) In the absence of relevant records and documents it is not possible for us to state whether the Company is not regular in depositing with the appropriate authorities undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Excise duty, Custom Duty, Cess and other relevant material statutory dues wherever applicable with the appropriate authorities.

(b) In absence of relevant records it is not possible for us to state that there were no disputed amounts payable in respect of Income Tax, Service tax, Cess, Wealth tax, Sales Tax, Customs Duty and Excise Duty which are outstanding as at March 2010 except to the extent as stated in Note 1 of schedule 13.

X. The accumulated loss of the Company as at the end of the year is more than the fifty percent of its net worth. The company has incurred cash loss amounting to Rs. 3,03,904.00 during the current year and has not incurred any cash loss in the immediately preceding financial year.

XI. In our opinion, on the basis of audit procedures and according to the information and explanations given to us, the Company has not defaulted as on 31.03.2010 in repayment of dues to financial institution and Debenture-holders.

XII. We have been informed and explained that the Company has not granted any loans and advances on the basis of security by way of the pledge of shares, debentures and other securities.

XIII. In our opinion, the Company is not a chit fund or nidhi / mutual fund / society. Accordingly, the provision of the clause 4(xiii) of the Order is not applicable to the Company.

XTV. The Company is dealing or trading in shares, securities, debentures and other investments and on the basis of the information and documents provided to us, the company has maintained the proper records of the transactions and contracts and timely entries have been made therein.

XV. According to the information and explanations given to us, the Company has" not given any guarantee for loans taken by others from bank or financial institutions.

XVI. During the year the Company has not taken any term loan. In respect of such loan taken in earlier years utilization of such amount, in absence of the relevant records are not available and such cannot be commented upon by us.

XVII. According to the information and explanations given to us, we report that no funds raised on short- term basis have been used for long term investment by the company.

XVIII. The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956.

XIX. The Company has not issued any debentures during the year and no debentures were outstanding as at 31st March 2010. Accordingly, requirements of clause 4 (xix) of the order are not applicable to the Company.

XX The Company has not made any public issue during the year.

XXI. During the course of our examination of the books of account carried out in accordance with generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any incidence of fraud on or by the Company nor have we been informed of any such case by the Management.

For Patni & Co.

Chartered Accountants



(Sashi Sureka)

Place : Kolkata Partner

Date: 20th May 2010 Membership No. 57918

 
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