Mar 31, 2017
To the Members of Monotype India Limited
Report on the Financial Statements
We have audited the accompanying financial statements of Monotype India Limited (''the Company''), which comprise the balance sheet as at 31st March 2017, the statement of profit and loss and the cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management''s 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 and presentation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the 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 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 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, 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.
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 2017 and its Profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure A statement on the matters specified in the paragraph 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 and the cash flow statement dealt with by this Report are in agreement with the books of account;
(d) in our opinion, the aforesaid standalone financial statement 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 2017 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March 2017 from being appointed as a director in terms of Section 164 (2) of the Act; and
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ
(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 has disclosed the impact of pending litigations on its financial position in its financial statements, if any.
ii. the Company does not have any material foreseeable losses on long-term contracts including derivative contracts; and
iii. The company is not required to transfer any amounts to the Investor Education and Protection Fund by the Company.
iv. The Company has provided requisite disclosures in its financial statements as to holdings as well as dealings in specified banks notes during the period from 8th November, 2016 to 30th December, 2016 and these are in accordance with the books of accounts maintained by the company.
(i) In respect of its Fixed Assets
a. The company has maintained proper records showing full particulars, including quantitative details and situation of its fixed assets;
b. Fixed assets have been physically verified by the management at reasonable intervals and No material discrepancies were noticed on such verification.
c. The company does not hold any immovable properties.
(ii) According to the information and explanation given to us the nature of the Company''s business is such that it does not hold any physical inventories. Accordingly, the provisions of the Clause 3(ii) of the order is not applicable to the Company hence not commented upon.
(iii) In respect of Register Maintained as per Section 189 of the Companies Act, 2013
a. According to the information and explanations given to us and based on the audit procedures conducted by us, we are of the opinion that the company has granted unsecured loans to one party covered in the register maintained under section 189 of the Companies Act, 2013, total loan amount outstanding as at balance sheet date Rs 6,950,000/-.
b. In our opinion, the terms and conditions of the loans granted to the said party is, prima facie, prejudicial to the interest of the company on account of the fact that the loans granted are interest free.
c. No terms and conditions have been stipulated for the grant of such loan, hence we cannot report on the same.
(iv) In our opinion and according to information and explanations given to us, the company has not advanced loans to Directors/to a company in which the director is interested to which, the provisions of Section 185 of the Companies Act, 2013 apply and hence not commented upon. In our opinion and according to the information and explanations given to us, the company has not made investment and given guarantee/provided security which falls under the purview of section 186 of the Companies Act, 2013 and hence not commented upon.
(v) The company has not accepted any deposits from the public. Accordingly paragraph 3(v) of the order is not applicable to the company and hence not commented upon.
(vi) As per the information and explanation given to us, the maintenance of cost records specified by the Central Government under sub-section (1) of section 148(1) of the Companies Act, 2013, is not applicable to the Company and hence not commented upon.
(vii) In respect of its Statutory Dues
a. According to the information and explanation given to us, no undisputed amount is payable in respect of provident fund, employees'' state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess and other material statutory dues were outstanding, at the year end, for the period of more than six months from the date they become payable except for the dues outlined below:
Statement of Arrears of Statutory Dues Outstanding for More than Six Months
Name of the Statute |
Nature of the Dues |
Amount (in '') |
Period to which the amount relates |
Due Date |
Date of Payment |
Income Tax Act, 1961 |
TDS default |
65,68,916/- |
F.Y.201 5-16 |
Various dates |
Unpaid till date |
Income Tax Act, 1961 |
Income Tax |
35,88,481/- |
F.Y.201 4-15 |
30/09/2015 |
Unpaid till date |
Income Tax Act, 1961 |
Income Tax |
58,87,596/- |
F.Y.201 5-16 |
30/09/2016 |
Unpaid till date |
Income Tax Act, 1961 |
TDS Interestu/s 201 |
2,71,930/- |
F.Y 2014-15 |
- |
Unpaid till date |
Income Tax Act, 1961 |
TDS late filing fees |
13,800/- |
F.Y 2014-15 |
- |
Unpaid till date |
Income Tax Act, 1961 |
TDS interest u/s 220(2) |
1,540/- |
F.Y 2014-15 |
- |
Unpaid till date |
Income Tax Act, 1961 |
TDS Interest/s 201 |
1,035,330/- |
F.Y.201 5-16 |
- |
Unpaid till date |
* The said amounts pertain to years prior to the financial year under review. The same have become liabilities of the Company after the amalgamation adjustments have been given effect to.
b. According to the information and explanations given to us and based on the audit procedures conducted by us, there are income tax dues which have not been deposited with the appropriate authorities 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 from financial institution, banks, government or debenture holders during the year.
(ix) According to the information and explanation given to us, the Company did not raise any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, paragraph 3(ix) of the Order is not applicable to the company and hence, not commented upon.
(x) Based on the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, we report that there were no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year under review.
(xi) According to the information and explanations given to us the Managerial remuneration paid during the year under review is in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi company. Consequently, provisions of clause 3(xii) of the Order are not applicable to the company and hence, not commented upon.
(xiii) According to the information and explanations given by the management, transactions with the related parties are in compliance with sections 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the Financial Statements, as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review and hence, reporting under clause
3 (xiv) are not applicable to the company and hence, not commented upon.
(xv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him as referred to in section 192 of Companies Act, 2013.
(xvi) According to the information and explanations given to us and based on our examination of the records of the Company, the Company is not required to get registered under section 45-IA of the Reserve Bank of India Act, 1934.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of MONOTYPE INDIA LIMITED (âthe Companyâ) as of March 31st, 2017 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining 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. 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 as sets, 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.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the 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 policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2017, 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.
For MOTILAL & ASSOCIATES
Chartered Accountants
FRN: 106584W
Sd/-
Motilal Jain
Partner M. No. 036811
Place: Mumbai
Date: 29/05/2017
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