TO THE MEMBERS OF INDIAN TONERS & DEVELOPERS LIMITED
Report on the Financial Statements
1. We have audited the accompanying Standalone financial statements of INDIAN TONERS& DEVELOPERS LIMITED ("the Company") which comprise the Balance Sheet as at31st March 2017 the Statement of Profit and Loss and the Cash Flow Statementfor the year then ended and a summary of significant accounting policies and otherexplanatory information which we have signed under reference to thisreport.
Management's responsibility for the Financial Statements
2 The Company's Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act 2013 ("the Act") with respect to the preparation andpresentation of these standalone financial statements that give a true and fair view ofthe financial position financial performance and cash flows of the Company in accordancewith the accounting principlesgenerally accepted in India including the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.This responsibility also includes maintenance of adequateaccounting records in accordance with the provision of the Act for safeguarding the assetsof the Company and for preventing and detecting frauds and other irregularities; selectionand application of appropriate accounting policies; making judgments and estimates thatare reasonable and prudent and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free frommaterialmisstatement whether due to fraud or error.
3 Our responsibility is to express an opinion on these financial statements based onour audit. We have taken into account the provisions of the Act the Accounting andAuditing Standards and matters which are required to be included in the audit report underthe provisions of the Act and the Rules made there under. We conducted our audit inaccordance with the Standards on Auditing specified under Section143 (10) of the CompaniesAct 2013. Those Standards require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether the financial statementsare free from material misstatements.
4 An audit involves performing procedures to obtain audit evidence about the amountsand disclosures in the financial statements.The procedures selected depend on theauditor's judgment including theassessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments; theauditor considers internal control relevant to the Company's preparation and fairpresentation of the financial statements in order to design the audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofaccounting policies used and reasonableness of the accounting estimates made by themanagement 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 toprovide a basis for our audit opinion.
6. In our opinion and to the best of our information and according to the explanationsgiven to us the Financial Statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the AccountingPrinciplesgenerally accepted in India:
(i) in the case of the Balance Sheet of the state of affairs of the Company as at 31stMarch 2017;
(ii) in the case of the Statement of Profit and Loss of the Profit of the Company forthe year ended on that date; and
(iii) in the case of Cash Flow Statement of the cash flows of the Company for the yearended on that date.
Report on Other Legal and Regulatory Requirement
7. As required by the Companies (Auditor's Report) Order 2016 (Order') issuedby the Central Government of India in terms of sub-section (11) of section 143 of the Actwe enclose in the Annexure A' a statement on the matters specified in paragraphs 3and 4 of the said Order.
8. As required by Section143 (3) of the Act we report that:
a. we have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purpose of our audit;
b. in our opinion proper Books of Accounts as required by the law have been kept by theCompany so far as appears from ourexamination of those books;
c . the Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this report are in agreement with the Books of Accounts;
d. In our opinion the aforesaid Financial Statements dealt with by this report complywith the Accounting Standards referred to in section 133 of the Companies Act 2013;
e. on the basis of written representations received from the directors as on 31stMarch 2017 and taken on record by the Board of Directors we report that none of thedirectors is disqualified as on 31st March 2017 from being appointed asdirector in terms of section 164(2) of the Companies Act 2013 ;
f. With respect to the adequacy of the Internal Financial Controls over the financialreporting of the Company and operating effectiveness of such controls refer to ourseparate Report in "Annexure B"; and
g. With respect to the other matters to be included in the Auditor's Report inaccordance with Rule11 of the Companies (Audit and Auditors) Rules2014in our opinion andto the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigation on its financial positionin its standalone financial statement Refer Note 26 (b) to the financial statement;
ii. The Company did not have any foreseeable losses on long term contracts and had noderivative contracts outstanding as at 31st March 2017;
iii. The Company did not have any dues on account of Investor Education and ProtectionFund;
iv. Accordingly to the information and records of the company the company had providedrequisite disclosures in its financial statements as to holdings as well as dealings inSpecified Bank Notes during the period from 8th November 2016 to 30th December 2016 andthese are in accordance with the books of accounts maintained by the company. Refer Noteno 41 of the financial.
FOR K.N.GUTGUTIA & CO. CHARTERED ACCOUNTANTS
ICAI'S FRN 304153E
| ||(B.R.GOYAL) |
|Place of Signature : New Delhi ||PARTNER |
|Date: 20th May 2017 ||Membership No. 12172 |
ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT
The Annexure "A" referred to in paragraph 7 of our report of even date to themembers of Indian Toners & Developers Limited on the Financial Statements for the yearended 31st March 2017.
i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) As explained to us physical verification of fixed assets has been carried out bythe Company and no material discrepancies were noticed on such verification. In ouropinion the frequency of verification is reasonable having regard to- the size of theCompany and nature of its business.
(c) Title deeds of immovable properties of the company are held in the name of theCompany.
ii) (a) The inventories (Except Goods in Transit )have been physically verified duringthe year by the management at reasonable intervals.
(b) In our opinion no material discrepancies were noticed on physical verification ofstocks.
iii) According to the information and explanations given to us during the year theCompany has not granted any loans secured or unsecured to companies firm Limitedliability partnerships firms or other parties covered in the register maintained undersection 189 of the companies Act 2013 in respect of investment & guarantees.
iv) According to the information and explanation given to us the company has compliedwith the provisions of section 185 and 186 of the Companies Act 2013 in respect ofinvestments & guarantees
v) The Company has not accepted any deposits during the year and hence paragraph 3(v)of the Order is not applicable to the Company.
vi) The Central Government has not prescribed maintenance of cost accounts for the typeof activities of the Company pursuant to the rules made by the Central Government of Indiafor the maintenance of cost records under clause (d) of Sub Section (1) of Section 148 ofthe Companies Act 2013
vii) (a) According to the records examined by us the Company is generally regular indepositing with appropriate authorities undisputed statutory dues including providentfund employees state insurance income tax sales tax service tax duty of customduty of excise value added tax cess and other statutory dues wherever applicable.
According to the information and explanations given to us no undisputed arrears ofstatutory dues were outstanding as on the last date of the financial year for a period ofmore than six months from the date they became payable.
(b) According to the records of the Company there were no dues in respect of SalesTax Service Tax Duty of Customs Duty of Excise Value Added Tax Cess and otherstatutory duties which have not been deposited on account of disputes. However in respectof income tax there is demand of Rs. 2566329 related to the Assessment year 2013-14 andthe appeal in pending with Commissioner of Income Tax.
viii) Based on our audit procedures and according to the information given by themanagement the company has not defaulted repayment in respect of any loans or borrowingsfrom any financial institution bank government or dues to debentures holders during theyear.
ix) In our opinion and according to the information and explanations given to us theCompany has not taken any term loan during the financial year and has not done any initialpublic offer or further public offer (including debt instrument) or term loans and henceparagraph 3(ix) of the Order is not applicable to the Company.
x) Based upon the audit procedures performed and to the best of our knowledge andaccording to the information and explanations given to us by the management we reportthat no fraud by the Company or any fraud on the company by its officer or employees hasbeen noticed or reported during the course of our audit.
xi) The Company has paid managerial remuneration in compliance with the provisions ofSection 197 read with schedule V to the Companies Act 2013 and obtained necessaryapproval of the Central Government to comply with the aforesaid provision.
xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company and hence paragraph 3 (xii) of the Order is not applicableto the Company.
xiii) As explained to us and as per the records of the company in our opinion thetransactions with the related parties are in Compliance with Section 177 and Section 188of the Companies Act 2013 and the details have been disclosed in the financial statementsas required by the applicable Accounting Standards.
xiv) According to the records of the company it has not made any preferentialallotment of shares or private placement of shares or fully/partly convertible debenturesduring the year under report. Accordingly paragraph 3 (xiv) of the Order is not applicableto the Company.
xv) During the year the Company has not entered into any non-cash transaction withDirector or person connected with him. Hence paragraph 3 (xv) of the Order is notapplicable to the Company.
xvi) The Company is not required to be registered under section 45-1A of the ReserveBank of India Act 1934 and hence paragraph 3 (xvi) of the Order is not applicable to theCompany.
|PLACE OF SIGNATURE: NEW DELHI ||FOR K.N. GUTGUTIA & COMPANY |
|DATE: 20th May 2017 ||CHARTERED ACCOUNTANTS |
| ||FRN 304153E |
| ||(B.R. GOYAL) |
| ||PARTNER |
| ||M.NO. 12172 |
ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THEFINANCIAL STATEMENTS OF INDIAN TONERS & DEVELOPERS LIMITED
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of IndianToners & Developers Limited ("the Company") as at 31st March2017 in conjunction with our audit of the standalone financial statements of the Companyfor the year ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing and maintaining internalfinancial controls based on "the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India". These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143 (10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequate internalfinancial Controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31st 2017 based on"the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls over Financial Reporting issued by the Institute ofChartered Accountants of India"
|PLACE OF SIGNATURE: NEW DELHI ||FOR K.N. GUTGUTIA & COMPANY |
|DATE: 20th May 2017 ||CHARTERED ACCOUNTANTS |
| ||FRN 304153E |
| ||(B.R. GOYAL) |
| ||PARTNER |
| ||M.NO. 12172 |