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Monotype India Ltd.

BSE: 505343 Sector: Financials
NSE: N.A. ISIN Code: INE811D01024
BSE 00:00 | 18 Feb 0.20 -0.01
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NSE 05:30 | 01 Jan Monotype India Ltd
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VOLUME 13150
52-Week high 2.95
52-Week low 0.19
P/E
Mkt Cap.(Rs cr) 14
Buy Price 0.20
Buy Qty 1000.00
Sell Price 0.20
Sell Qty 2860.00
OPEN 0.20
CLOSE 0.21
VOLUME 13150
52-Week high 2.95
52-Week low 0.19
P/E
Mkt Cap.(Rs cr) 14
Buy Price 0.20
Buy Qty 1000.00
Sell Price 0.20
Sell Qty 2860.00

Monotype India Ltd. (MONOTYPEINDIA) - Auditors Report

Company auditors report

 

To

The Members of

MONOTYPE INDIA LIMITED

REPORT ON THE IND AS FINANCIAL STATEMENTS

We have audited the accompanying Ind AS financial statements of MONOTYPE INDIALIMITED ('the Company') which comprise the Balance Sheet as at 31st March 2018 theStatement of Profit and Loss the Statement of Changes in Equity and the Cash FlowStatement for the year then ended and a summary of significant accounting policies andother explanatory information.

MANAGEMENT'S RESPONSIBILITY FOR THE IND AS 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 Ind AS financial statements that give a true and fair view ofthe financial position financial performance including other comprehensive income cashflows and changes in equity of the Company in accordance with the Indian AccountingStandards (Ind AS)prescribed under Section 133 of the Act read with Companies (IndianAccounting Standards)Rules 2015 as amended and other accounting principles generallyaccepted in India.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the Ind ASfinancial 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 Ind AS financial statements basedon our audit.

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 and the Order issued under section143(11) of the Act.

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 Ind AS financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Ind AS financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of theInd AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the Ind AS financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances but not for the purposeof expressing an opinion on whether the Company has in place an adequate internalfinancial controls system over financial reporting and the operating effectiveness of suchcontrols. An audit also includes evaluating the appropriateness of the accounting policiesused and the reasonableness of the accounting estimates made by the Company's Directorsas well as evaluating the overall presentation of the Ind AS financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Ind AS financial statements.

OPINION

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid

Ind AS financial statements give the information required by the Act in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of the state of affairs of the Company as at 31stMarch 2018and its Loss total comprehensive income the changes in equity and its cash flows for theyear ended on that date.

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 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 theparagraph 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 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 cash flow statement dealt with by thisReport are in agreement with the books of account;

(d) In our opinion the aforesaid Ind AS financial statements 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 31stMarch 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 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 Ind AS 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.

For Motilal & Associates

Chartered Accountants

Registration No.:106584W

Sd/-

Motilal Jain

Partner

M. No. 036811

Place : Mumbai

Date :30/05/2018

"Annexure A" Referred to in Independent Auditors' Report

(i) 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) a. According to the information and explanations given to us and based on theaudit procedures conducted by us we are of the opinion that the Company has grantedunsecured loans to one (1) party covered in the register required to be maintained underSection 189 of the Companies Act 2013 Maximum amount outstanding during the yearRs.6950000/-and 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 advanced loan to Directors/to a company in which the director is interested towhich the provisions of Section 185

 of the Companies Act 2013 apply.

Name of Director Company in which Director is interested Maximum Outstanding amount during the year Amount Outstanding as at Balance sheet Date
Naresh Jain Pranjali(India) Pvt. Ltd. Rs. 6950000 Rs. 6950000

In our opinion and according to the information and explanations given to us theCompany has not made investment and given guarantee/provided security which falls underthe 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 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 of theCompanies Act 2013 is not applicable to the Company and hence not commented upon.

(vii) a. According to the information and explanation given to us no undisputed amountis payable in respect of provident fund employees' state insurance income-taxsales-tax service tax duty of customs duty of excise value added tax Goods andServices Tax Cess and other material statutory dues were outstanding at the year endfor the period of more than six months from the date they become payable except for thedues outlined below:

 Statement of Arrears of Statutory Dues Outstanding for More than Six Months:

Name of the Statute Nature of the Dues Amount (Rs.) Period to which the amount relates Due Date Date of Payment
Income Tax Act 1961 Income Tax 3588481/-* F.Y.2014 - 15 30/09/2015 Unpaid date till
Income Tax Act 1961 Income Tax 5887596/-* F.Y.2015 - 16 30/09/2016 Unpaid date till
Income Tax Act 1961 TDS default 6568916/- F.Y.2015 - 16 Various dates Unpaid date till
Income Tax Act 1961 TDS Interest on Late payment of TDS 271930/- F.Y 2014- 15 - Unpaid date till
Income Tax Act 1961 TDS Return Late filing Levy 13800/- F.Y 2014- 15 - Unpaid date till
Income Tax Act 1961 TDS interest u/s 220(2) 1540/- F.Y 2014- 15 - Unpaid date till
Income Tax Act 1961 TDS Interest on payment Default u/s 201 1035330/- F.Y.2015 - 16 - Unpaid date till
Income Tax Act 1961 TDS Interest on payment Default u/s 201 549669/- F.Y.2016 - 17 - Unpaid date till
Income Tax Act 1961 TDS interest u/s 220(2) 32/- F.Y.2016 - 17 - Unpaid date till

(*) Income Tax pertaining to the F.Y. 2014-15 & 2015-16 has not been paid by theCompany. Assessment for the same has not been completed as on the date. The amountoutstanding is as per the Company's estimate of Outstanding Income Tax and does notinclude any corresponding Interest or Penalty under the Income Tax Act 1961 for theaforesaid years.

b. According to the information and explanations given to us and based on the auditprocedures conducted by us there are noincome tax dues which have not been deposited withthe appropriate authorities on account of any dispute. (viii) According to the informationand explanations given to us the Company has not defaulted in repayment of loans orborrowings from financial institution banks government or debenture holders during theyear.

(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 usthe Managerialremuneration paid during the year under review is in accordance with the requisiteapprovals mandated by the provisions of section 197 read withSchedule V to the CompaniesAct.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company. Consequentlyprovisions 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 isnot 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 : 30th May 2018

"Annexure B" Referred to in Independent Auditors' 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 2018 in conjunction with ouraudit of the Ind AS 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 assets 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.

AUDITOR'S RESPONSIBILITY

Our responsibility is to express an opinion on the Company's internal financial controlover financial reporting based on our audit. We conducted our audit in accordance with theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting (the"Guidance Note") and the Standards on Auditing issued by ICAI and deemed to beprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols 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 judgment 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 Ind AS financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of Ind ASfinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company's assets that could have a material effect on the Ind ASfinancial 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 2018 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

Firm's Registration No.106584W

Sd/-

Motilal Jain

Partner

M. No. 036811

Place : Mumbai

Date :30/05/2018