TO THE MEMBERS OF INDIAN TONERS AND DEVELOPERS LIMITED
I. Report on the Audit of Standalone Financial
Statements for the year ended 31st March 2021
A. We have audited the Standalone Financial Statements of INDIAN TONERS ANDDEVELOPERS LIMITED ("the Company") which comprise the Balance Sheet as atMarch
31 2021 and the Statement of Profit and Loss
(including Other Comprehensive Income) Statement of Changes in Equity and Statement ofCash Flows for the year then ended and notes to financial statements including a summaryof the significant accounting policies and other explanatory information (hereinafterreferred to as "the Standalone Financial Statements").
B. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone Financial Statements give the information requiredby the Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India ofthe state of affairs of the Company as at March 31 2021 and its Profit othercomprehensive income changes in equity and its cash flows for the year ended on thatdate.
2. Basis for Opinion
We conducted our audit in accordance with the
Standards on Auditing (SAs) specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India (ICAI) together with the independencerequirements that are relevant to our audit of the financial statements under theprovisions the Act and the Rules made thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our audit opinion on the Standalone Financial Statements.
3. Key Audit Matters
Key audit matters are those matters that in our professional judgment were ofmost significance in our audit of the Standalone Financial Statements of the currentperiod. These matters were addressed in the context of our audit of the StandaloneFinancial Statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. We have determined that there are no key auditmatters to be communicated in our report.
4. Information Other than the Standalone
Financial Statements and Auditor's Report thereon
A. The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notinclude the Standalone Financial Statements and our auditor's report thereon.
Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.
B. In connection with our audit of the financial statements our responsibility is toread the other information and in doing so consider whether the other information ismaterially inconsistent with the Standalone Financial Statements or our knowledge obtainedduring the course of our audit or otherwise appears to be materially misstated. If basedon the work we have performed we conclude that there is a material misstatement of thisother information we are required to report that fact. We have nothing to report in thisregard.
5. Responsibilities of Management and Those
Charged with Governance for the Standalone Financial Statements
A. The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these Standalone Financial Statementsthat give a true and fair view of the financial position financial performance othercomprehensive income changes in equity and cash flows of the Company in accordance withthe accounting principles generally accepted in India including
Indian Accounting Standards (IndAS) specified under section 133 of company Act. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that werefor ensuring the accuracy operating effectively and completeness of the accountingrecords relevant to the preparation and presentation of the standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
B. In preparing the Standalone Financial Statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.
Those Board of Directors are responsible for overseeing the Company's financialreporting process.
6. Auditor's Responsibilities for the Audit of the
Standalone Financial Statements
A. Our objectives are to obtain reasonable assurance about whether the StandaloneFinancial Statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these Standalone Financial Statements.
B. As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:
i) Identify and assess the risks of material misstatement of the standalone financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.
ii) Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.
iii) Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.
iv) Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe Standalone Financial Statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future specified inevents or conditions may cause the Companyto cease to continue as a going concern.
v) Evaluate the overall presentation structure and content of the Standalone FinancialStatements including the disclosures and whether the Standalone Financial Statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.
C. We communicate with those charged with governance regarding among other mattersthe planned scope and timing of the audit and significant audit findings including anydeficiencies in internal control that we identify during our audit.
D. We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.
E. From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the Standalone Financial Statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.
II. Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give in "AnnexureA" a statement on the paragraph 3 and 4 of the matters
Order to the extent applicable.
2. (A) As required by Section 143(3) of the Act based on our audit we report that:
a. We have sought and obtained all the information and explanations which to the bestof 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 theCompany so far as it appears from our examination of those books;
c. The Balance Sheet the Statement of Profit and Loss including Other ComprehensiveIncome Statement of Changes in Equity and the Statement of Cash Flow dealt with by thisReport are in agreement with the relevant books of account;
d. In our opinion the aforesaid standalone financial statements comply with the IndASspecified under Section 133 of the Act.
e. On the basis of the written representations received from the directors as on March
31 2021taken on record by the Board of
Directors none of the directors is disqualified as on March 31 2021from beingappointed as a director in terms of Section 164 (2) of the Act; f. With respect to theadequacy of the internal financial controls over financial reporting of the Company andthe operating effectiveness of such controls refer to our separate Report in "AnnexureB".
(B) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:
i) The Company does not have any pending litigation which would impact its financialposition in its Standalone financial statements as at 31st March 2021.
ii) The Company did not have long-term contracts including derivative contracts whichwas outstanding as at 31St March 2021.
iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.
(C) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act: In our opinion and to thebest of our information and according to the explanations given to us the remunerationpaid by the Company to its directors during the year is in accordance with the provisionsof section 197 of the Act.
ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S
(Referred to in paragraph II point 1 under "Report on Other Legal and RegulatoryRequirements" section of our report to the members of INDIAN TONERS AND DEVELOPERSLIMITED of even date) i) (a) The Company has maintained proper records showing fullparticulars including quantitative 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 this periodicity and manner of physical verification is reasonable having regardto the size of the company and the nature of its assets.
(c) According to the information and explanations given to us title deeds of immovableproperties of the company are held in the name of the Company.
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 verificationstocks.
iii) According to the information and explanations given to us the Company has duringthe year not granted unsecured loan secured or unsecured to companies firm LLP or otherparties covered in the register maintained under Section 189 of the Act. AccordinglyParagraph 3(iii) of the order is not applicable to company.
iv) According to the information and explanation given to us the company has compliedwith the provisions of section 185 and 186 of the Act in respect of making Investmentgrants of Loans and providing guarantees and securities.
v) The Company has not accepted any deposits from the public during the year and henceparagraph 3(v) of the Order is not applicable to the Company.
vi) Pursuant to the rules made by the central government of India the company isrequired to maintain cost records as specified under section
148(1) of the act in respect of its products. We have broadly reviewed the same andare of opinion that prima facie the prescribed accounts and records have been made andmaintained. However we have not made a detailed examination of the records with a view todetermine whether they are accurate or complete.
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 Goods & Service Tax Duty Of CustomDuty Of Excise Cess and other statutory dues wherever applicable.
According to the information and explanations given to us no undisputed amountspayable in respect of Provident Fund Income Tax Duty Of Customs Goods and Service TaxCess and other material statutory dues were in arrears as at 31st March 2021 for a periodof more than six months from the date they became payable.
(b) According to the records and information and explanations given to us and therecords of the company examined by us there were no dues in respect of Income Tax SalesTax Service Tax Goods & Service Tax Duty of Customs Duty of Excise Value AddedTax Cess and other statutory dues which have not been deposited on account of disputes.
viii) Based on our audit procedures and according to the information given by themanagement the company has not taken any loans or borrowings from any financialinstitution bank and government. The company has not issued debentures during the year.Threfore paragraph 3(viii) of the Order is not applicable to the Company.
ix) In our opinion and according to the information and explanations given to us theCompany did not raise any money by way of any initial public offer or further public offer(including debt instrument) or of term loan. Therefore paragraph 3(ix) of the Order is notapplicable 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) On the basis of records and information and explanations made available and basedon the examination of the records of the company managerial remuneration which has beenpaid or provided is in accordance with the requisite approval mandated vide provisions ofSection 197 read with schedule V to the Companies Act 2013.
xii) The Company is not a Nidhi Company and hence 3 (xii) of the Order is notapplicable to the Company.
xiii) As per the information and explanations and records made available by themanagement of the company and audit procedure performed for the related partiestransaction entered during the year the company has complied with the provisions of sec177 and 188 of the act wherever applicable. As explained as per records and details madeavailable to us such related parties transactions have been disclosed in standalonefinancial statements as required by the applicable Ind-AS.
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) According to information and explanation given to us and based on the examinationof the records of the company the Company has not entered into any non-cash transactionwith Director 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.
ANNEXURE "B" TO THE INDEPNDEDNT AUDITOR'S
(Referred to in paragraph II point 2A (f) under "Report on Other Legal andRegulatory Requirements" section of our report to the members of INDIAN TONERS ANDDEVELOPERS LIMITED of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSubsection 3 of Section 143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of INDIANTONERS AND DEVELOPERS LIMITED ("the Company") as of March
31 2021 in conjunction with our audit of the financial statements of the Company forthe year ended on that date. In our opinion to the best of our information and accordingto the explanations given to us the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at March 31 2021 basedon the criteria for internal financial control over financial reporting established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Control over Financial Reporting issued by theInstitute of Chartered Accountants of India.
Management's Responsibility for Internal Financial
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 (the "Guidance Note").These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively forensuringtheorderlyandbusiness 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 of the Company based on our audit. We conducted ouraudit in accordance with the Guidance Note and the Standards on Auditing prescribed underSection 143(10) of the Companies Act 2013 to the extent applicable to an audit ofinternal financial controls. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.
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 reporting is a process designed to providereasonable assurance regarding the reliability of financial reporting and the preparationof financial statements for external purposes in accordance with generally acceptedaccounting principles. A company's internal financial control over financial reportingincludes those policies and procedures that (1) pertain to the maintenance of recordsthat 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 authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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.
For M.L. GARG & COMPANY
PLACE : NEW DELHI
DATE : 22nd JUNE 2021