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Monotype India Ltd.

BSE: 505343 Sector: Financials
NSE: N.A. ISIN Code: INE811D01024
BSE 12:49 | 18 Jul 0.35 0.01
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NSE 05:30 | 01 Jan Monotype India Ltd
OPEN 0.35
PREVIOUS CLOSE 0.34
VOLUME 60101
52-Week high 22.55
52-Week low 0.25
P/E
Mkt Cap.(Rs cr) 25
Buy Price 0.35
Buy Qty 298188.00
Sell Price 0.00
Sell Qty 0.00
OPEN 0.35
CLOSE 0.34
VOLUME 60101
52-Week high 22.55
52-Week low 0.25
P/E
Mkt Cap.(Rs cr) 25
Buy Price 0.35
Buy Qty 298188.00
Sell Price 0.00
Sell Qty 0.00

Monotype India Ltd. (MONOTYPEINDIA) - Auditors Report

Company auditors report

To the Members of

Monotype India Limited

Report on the Financial Statements

We have audited the accompanying financial statements of Monotype India Limited ('theCompany') which comprise the balance sheet as at 31 March 2017 the statement of profitand loss and the cash flow statement for the year then ended and a summary of significantaccounting 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 Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparationand presentation of these financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgements and estimates that arereasonable 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 from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgement including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide 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 explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31 March 2017 and its Profit and its cash flows for the year ended on that date.

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure A statement on the matters specified in the paragraph 3and 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 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 and the cash flow statementdealt with by this Report are in agreement with the books of account;

(d) in our opinion the aforesaid standalone financial statement comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;

(e) on the basis of the written representations received from the directors as on 31March 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2017 from being appointed as a director in terms of Section164 (2) of the Act; and

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B"

(g) 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 has disclosed the impact of pending litigations on its financialposition in its financial statements if any.

ii. the Company does not have any material foreseeable losses on long-term contractsincluding derivative contracts; and

iii. The company is not required to transfer any amounts to the Investor Education andProtection Fund by the Company.

iv. The Company has provided requisite disclosures in its financial statements as toholdings as well as dealings in specified banks notes during the period from 8th November2016 to 30th December 2016 and these are in accordance with the books of accountsmaintained by the company.

For MOTILAL & ASSOCIATES

Chartered Accountants

FRN:106584W

Sd/-

Motilal Jain

Partner

M. No. 036811

Place : Mumbai

Date : 29/05/2017

"Annexure A" Referred to in Independent Auditors' Report

(i) In respect of its Fixed Assets

a. The company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets;

b. Fixed assets have been physically verified by the management at reasonable intervalsand 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 theCompany's business is such that it does not hold any physical inventories. Accordinglythe provisions of the Clause 3(ii) of the order is not applicable to the Company hence notcommented 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 auditprocedures conducted by us we are of the opinion that the company has granted unsecuredloans to one party covered in the register maintained under section 189 of the CompaniesAct 2013 total loan amount outstanding as at balance sheet date Rs 6950000/-.

b. In our opinion the terms and conditions of the loans granted to the said party isprima facie prejudicial to the interest of the company on account of the fact that theloans granted are interest free.

c. No terms and conditions have been stipulated for the grant of such loan hence wecannot report on the same.

(iv) In our opinion and according to information and explanations given to us thecompany has not advanced loans to Directors/to a company in which the director isinterested to which the provisions of Section 185 of the Companies Act 2013 apply andhence not commented upon. In our opinion and according to the information and explanationsgiven to us the company has not made investment and given guarantee/provided securitywhich falls under the purview of section 186 of the Companies Act 2013 and hence notcommented upon.

(v) The company has not accepted any deposits from the public. Accordingly paragraph3(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 costrecords specified by the Central Government under sub-section (1) of section 148(1) of theCompanies 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 ispayable in respect of provident fund employees' state insurance income-tax sales-taxservice tax duty of customs duty of excise value added tax cess and other materialstatutory dues were outstanding at the year end for the period of more than six monthsfrom 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 Rs.) Period to which the amount relates Due Date Date of Payment
Income Tax Act 1961 TDS default 6568916/- F.Y.2015-16 Various dates Unpaid till date
Income Tax Act 1961 Income Tax 3588481/- F.Y.2014-15 30/09/2015 Unpaid till date
Income Tax Act 1961 Income Tax 5887596/- F.Y.2015-16 30/09/2016 Unpaid till date
Income Tax Act 1961 TDS Interestu/s 201 271930/- F.Y 2014-15 Unpaid till date
Income Tax Act 1961 TDS late filing fees 13800/- F.Y 2014-15 - Unpaid till date
Income Tax Act 1961 TDS interest u/s 220(2) 1540/- F.Y 2014-15 - Unpaid till date
Income Tax Act 1961 TDS Interestu/s 201 1035330/- F.Y.2015-16 - Unpaid till date

become liabilities of the Company after the amalgamation adjustments have been giveneffect to.

b. According to the information and explanations given to us and based on the auditprocedures conducted by us there are income tax dues which have not been deposited withthe appropriate authorities on account of any dispute.

(viii) According to the information and explanations given to us the Company has notdefaulted in repayment of loans or borrowings from financial institution banksgovernment or debenture holders during the year.

(ix) According to the information and explanation given to us the Company did notraise any money by way of initial public offer or further public offer (including debtinstruments) and term loans during the year. Accordingly paragraph 3(ix) of the Order isnot applicable to the company and hence not commented upon.

(x) Based on the audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to the information and explanationsgiven by the management we report that there were no material fraud by the Company or onthe Company by its officers or employees has been noticed or reported during the yearunder review.

(xi) According to the information and explanations given to us the Managerialremuneration paid during the year under review is in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company. Consequently provisions of clause 3(xii) of the Order arenot applicable to the company and hence not commented upon.

(xiii) According to the information and explanations given by the managementtransactions with the related parties are in compliance with sections 177 and 188 ofCompanies Act 2013 where applicable and the details have been disclosed in the FinancialStatements as required by the applicable accounting standards.

(xiv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year under review and hence reporting under clause 3 (xiv) are not applicable to thecompany and hence not commented upon.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him as referred to in section 192 ofCompanies Act 2013.

(xvi) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company is not required to get registeredunder section 45-IA of the Reserve Bank of India Act 1934.

For MOTILAL & ASSOCIATES

Chartered Accountants

FRN: 106584W

Sd/-

Motilal Jain

Partner

M. No. 036811

Place : Mumbai

Date : 29/05/2017

"Annexure B" referred to in Independent Auditor's Report

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 MONOTYPEINDIA LIMITED ("the Company") as of March 31 2017 in conjunction with ouraudit 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 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 responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its as sets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Auditors' Responsibility

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 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.

Opinion

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 31 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For MOTILAL & ASSOCIATES

Chartered Accountants

FRN: 106584W

Sd/-

Motilal Jain

Partner

M. No. 036811

Place: Mumbai

Date: 29/05/2017