The Members of
Todays Writing Instruments Limited
Report on the Financial Statements
We have audited the accompanying financial statements of Todays Writing InstrumentsLimited ("the Company") which comprise the Balance Sheet as at 31st March2017 the Statement of Profit and Loss the Cash Flow Statement for the year then endedand a summary of the 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 Section134(5) of the Companies Act 2013 ("the Act'T with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of 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 wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.
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 judgment 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. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof 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 financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31stMarch 2017 and its Loss and its cash flows for the year ended on that date.
Emphasis of Matter .
a) We draw attention to Note No. 37 to the financial statement regarding preparation ofaccount of the company on going concern basis though the accumulated losses of the Companyhave exceeded its net worth. Based on the factors the management believes that the goingconcern assumption is appropriate and no adjustments have been made in the financialstatements for the year ended March 31 2017.
b) Balance confirmation from debtors creditors advances secured and unsecuredlenders etc. are generally not received and accordingly not reconciled / confirmed. Inabsence'of the same these balances and their classification are reflected as per therecords produced.
c) Provision of interest on loans from banks & financial institution are providedas per CDR scheme and not as per the sanction terms of the banks & financialinstitution even though the CDR scheme sanction of consortium Banks has been cancelled.
d) Retirement benefits of employees in respect of Gratuity and leave encashment areaccounted for on payment basis which is not in conformity with Accounting Standard (AS)'15 (Revised 2005) on Employee Benefits which requires that Gratuity be accounted for onaccrual basis.
Our opinion is not qualified in respect of these matters.
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 theparagraphs 3 and 4 of the Order.
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 financial statements comply with the AccountingStandards 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 on31" March 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in terms of Section164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer 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 does not have any pending litigations which would impact its financialposition;
(ii) The Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses.
(iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
For Ajay Shobha & Co.
(Firm Registration No: 317031E)
(M. No. 053071)
Place : Mumbai
Date: 30th May 2017
Annexure "A" to the Independent Auditors Report .
The Annexure referred to in Paragraph 1 under the heading "Report on Other Legaland Regulatory Requirements" in our Independent Auditor's Report to the members ofTodays Writing Instruments Limited for the year ended 31 st March 2017.
As required by the Companies (Auditors Report) Order 2016 and according to theinformation and explanations given to us during the course of the audit and on the basisof such checks of the books and records as were considered appropriate we report that: .
I. In respect of Companies Fixed Assets:
(a) The Company has maintained proper records showing full particulars includingquantitative details and. situation of fixed assets.
(b) The Fixed Assets have been physically verified by the management during the year atreasonable intervals. In our opinion the frequency of verification is reasonable havingregard to the size of the Company and the nature of its assets. No discrepancies have beennoticed on such physical verification.
(c) According to the information and explanations given to us the title deeds ofimmovable properties as disclosed in Note 11 to the Standalone financial statements areheld in the name of the Company.
ii. In respect of Company's inventories: -
(a) Inventories have been physically verified during the year by the Management. In ouropinion the frequency of verification is reasonable.
(b) In our opinion and according to the information and explanation given to us theprocedures of physical verification of inventories followed by the Management werereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.
(c) In our opinion and according to the information and explanations given to us theCompany has maintained proper records of its inventories and no material discrepancieswere noticed on physical verification.
lii. a) As per the information and explanation given to us the Company has grantedunsecured loans to its subsidiaries covered in the register maintained U/S 189 of theCompanies Act 2013 on call basis.
b) The advance given by the Company to its subsidiaries and rate of interest and suchadvances and the terms and '* conditions on which these advance given are not prejudicialto the interest of the Company.
c) There is no prescribed stipulation of repayment of the advance and is payable ondemand and therefore question of overdue amount does not arise. .
iv. In our opinion and according to the information and explanation given to us theCompany has complied with the provisions of section 185 and 186 of the Companies Act2013 with respect to loans and investments made.
v. The Company has not accepted any deposits from the public.
vi. The Central Government has not prescribed the maintenance of cost records underSection 148 (1) of the Act for the Company. .
Vii. a) Accordingly to the records of the Company the Company has not been regular indepositing the undisputed statutory dues of Provident Fund of Rs. 102.77 Lacs Income TaxRs. 1020.68 Lacs Maharashtra VAT Rs. 51.34 Lacs Gujarat VAT Rs. 3.88 . Lacs Service TaxRs. 1.72 Lacs duty of Excise of Rs. 54.53 Lacs and TDS of Rs. 18.64 Lacs with theappropriate authorities which have remained outstanding as at 31st March 2017 for aperiod more than six months from the date they became payable.
b) According to the records of the Company there are no dues of Income Tax Sales TaxService Tax Duty of Customs Duty of Excise.and Value Added Tax which have not beendeposited on account of. any dispute with the relevant authorities.
|Name of the Statute ||Nature of dues ||Year ||Amount ( Rs. In Lakhs) ||Forum where the dispute is pending |
|Income Tax Act 1961 ||Assessed Dues ||2007-2008 ||279.33 ||I. T. A. T. Kolkata |
|Income Tax Act 1961 ||Assessed Dues ||2008-2009 ||753.50 ||I. T. A. T. Kolkata |
viii) In our opinion and according to the information and explanations given to us theCompany has defaulted in repayment of its dues including principal and interest to thebanks since 2009 and declared as "Non Performing Assets " (NPA) by banks and hasnot issued debentures.
ix) The Company has not raised money by way of initial public offer or further publicoffer (including debt instruments) during the year. In our opinion and according to theinformation and explanations given to us the term loans taken by the Company have beenapplied for the purpose for which they were raised.
x) According to the information ft explanations given to us no instances of fraud bythe company or on the company by its officers or employees has been noticed or reportedduring the course of our audit.
xi) In our opinion and according to the information and explanations given to us theCompany has paid/ provided managerial remuneration in accordance with the requisiteapprovals mandated by the provision of Section 197 read with Schedule V to the CompaniesAct 2013.
xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly paragraph 3 (xii) of the Order is notapplicable.
xiii) According to the information and explanation given to us and based on ourexamination of the records of the Company transactions with related parties are incompliance with section 177 and 188 of the Act where applicable and details of suchrelated party transactions have been disclosed in the financial statements as required bythe 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.
xv) According to the information and explanation given to us and based on ourexamination of the records of the Company the
Company has not entered into any non-cash transactions with the directors or personsconnected with him. Accordingly paragraph 3 (xv) of the Order is not applicable.
xvi) In our opinion and according to the information and explanation given to us theCompany is not required to be registered under section 45-IA of the Reserve Bank of IndiaAct 1934.
For Ajay Shobha & Co.
(Firm Registration No. 317031E)
(M. No. 053071)
Place : Mumbai
Date: 30th May 2017