1. We have audited the attached Balance Sheet of Today''s Writing
Products Limited as at 31st March 2011, the Profit and Loss Account and
the Cash Flow Statement of the Company for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the Company''s management. Our responsibility is to express an opinion
on these financial statements based on our audit. We conducted our
audit -in accordance with Auditing Standards generally accepted in
India. These standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are
free of material mis-statement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles
used and significant estimates made-by management, as well
as evaluating the overall financial statement presentation. We believe
that our audit provides a reasonable basis for our opinion.
2. As required by the Companies (Auditors'' Report) Order, 2003 and
amendment thereto issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Companies Act, 1956, and on the
basis of such checks as we considered appropriate and according to
information and explanation given to us, we enclose in the annexure
hereto a statement on the matters specified in paragraphs 4 it 5 of the
said Order to the extent applicable to company.
3. Further to our comments in the Annexure referred to in paragraph
(2) above, we report that:
a) We have obtained all the informations and explanations which, to the
best of our knowledge and belief, were necessary for the purpose of our
audit;
b) In our opinion, proper books of account as required by law have been
kept by the Company, so far as appears from our examination of those
books ;
c) The Balance Sheet, Profit and Loss Account St Cash Flow Statement
dealt with by this report are in agreement with the books of accounts;
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement comply with the applicable Accounting Standards referred
to in sub-section (3C) of section 211 of the Companies Act
1956,except,Accounting Standard 15 (AS-15) relating to retirement
benefits of employees as referred to in notes 2(a) of schedule 16.
e) On the basis of written representations received from the directors,
as on 31st March, 2011 and taken on record by the Board, we report that
none of the directors is disqualified as on 31st March 2011 from being
appointed as a director in terms of Clause (g) of Sub section (1) of
Section 274 of the Companies Act, 1956;
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with
significant accounting policies and notes thereon, give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India :
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March , 2011 in the case of the Profit and Loss
Account, of the Loss of the Company for the year ended on that date.
iii) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
AUDITORS'' REPORT
ANNEXURE TO THE AUDITORS* REPORT
(Referred to in paragraph 2 of the Auditors Report of even date)
1. In respect of the Fixed Assets :- _
a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
b) The fixed assets are physically verified by the management according
to a phased programe designed to cover all the items over a period of
three years, which in our opinion, is reasonable having regard to the
and the nature of its business. Pursuant to the programe, a portion of
the fixed assets has been physically verified by the management during
the year and no material discrepancies between the books records and
the physical inventory has been noticed.
c) In our opinion, a substantial part of fixed assets has not been
disposed off by the company during the year and the going concern
status of the company is not affected.
2. In respect of Inventories: - ,.
a) The inventory (excluding stocks with third parties and materials in
transit) has been physically verified by the management during the
year. In respect of inventory lying with third parties, these have been
confirmed by them. In our opinion, the frequency of verification is
reasonable. ''
b) In our opinion, the procedure of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to books records were not material and have been properly dealt with in
the books of accounts.
3. a) As per the information and explanation given to us, the company
has granted unsecured loans to three subsidiaries
covered in the register maintained under section 301 of the Companies
Act, 1956. on call basis. The maximum amount outstanding during the
year was Rs. 2727.42 Lacs and the year end balance was Rs. 2294.69
Lacs.
b) The advance given by the company is to wholly owned subsidiary free
of interest and the terms and conditions on which these advance given
are not prejudicial to the interest of the company.
c) There is no prescribed stipulation of repayment of the advance and
is payable on demand and therefore question of overdue amount does not
arise.
d) As per the information and explanation given to us, the company has
taken unsecured loan, from a director covered in the Register
maintained under Section 301 of the companies Act 1956. The maximum
amount outstanding during the year was Rs. 908.39 Lacs and the year end
balance was Rs. 908.39 Lacs.
e) The loans and advances are interest free and the terms and
conditions of these advance are not prejudicial to the interest of the
company.
f) There is no prescribed stipulation of repayment of the advance and
is payable on demand and therefore question of overdue amount does not
arise .
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and nature of its business,
with regard to purchase of inventory, fixed assets and sale of goods St
services. As per the information and explanation given to us, in our
opinion there is no continuing failure to correct major weaknesses in
internal control.
5. In respect of transactions covered under section 301 of the
Companies Act 1956 :
a) Based on the audit procedures applied by us and according to the
information and explanation provided by the Management we are of the
opinion that the transactions that need to be entered into the register
maintained under section 301 have been so entered.
b) In our opinion and according to the information and explanations
given to us, the transaction made in pursuance of such contracts or
arrangements entered in the register maintained under section 301 of
the companies Act 1956, and exceeding the value of rupees five lacs in
respect of any party during the year have been made at prices which are
reasonable having regard to the market prices prevailing at the
relevant time.
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
within the meaning of Section 58A and 58AA of the Companies Act, 1956,
and the rules framed there under. Hence clause 4 (Vi) of the Order is
not applicable.
7. The Company has an internal audit system, which in our opinion, is
commensurate with the size of the Company and the nature of its
business.
8. According to the information and explanations given to us, the
Central Government has not prescribed the maintenance of cost records
under clause (d) of sub-section (1) of Section 209 of the Companies
Act, 1956.
9. According to the information and explanations given to us in
respect statutory and other dues :
a) The Company has been not regular in depositing undisputed statutory
dues of Provident Fund dues of Rs._48.65 Lakhs, Income Tax of Rs.
745.29 Lakhs, Dividend Tax of Rs. 59.1 Lakhs, Fringe Benefit Tax of Rs.
27.35, TDS of Rs. 40.40 Lakhs and Sales tax of Rs. 51.59 Lakhs with the
appropriate authorities, which were outstanding for a period of more
than six months from the date they became payable.
b) According to the information and explanations given to us and the
records of the company examined by us particulars of Income Tax as on
31st March, 2011 that have not been deposited on account of a dispute
pending are as under :
Name of the
Statute Nature of Dues Year Amount Forum where dispute is
pending
(Rs. In
Lakhs)
Income Tax
Act, 1961 Assessed Dues 2008-
2009 753.50 C.I.T(Appeals),Kolkata
10. The Company has accumulated losses at the end of the financial
year resulting negative net worth and has incurred cash losses during
the financial year ended 31st March 2011 and also in the immediately
preceding financial Year.
11. Based on our audit procedures and the information and explanations
given by management, the Company has defaulted in repayment of dues to
banks.
12. According to the information and explanations given to us, the
Company has not given loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
13. In our opinion, considering the nature of activities carried on by
the Company during the year, the provisions of any special statute and
provisions applicable to chit fund / nidhi / mutual benefit fund /
societies are not applicable to the Company.
14. In our opinion and according to the information and explanations
given to us, the Company is not a dealer / trader in shares fit
securities.
15. According to the information and explanation given to us and the
records examined by us, the Company has given corporate guarantees
amounting to Rs. 3050.00 lacs & Rs.70.00 lacs to ICICI Bank Ltd & State
Bank of India for loans taken - by Today''s Petrotech Ltd ,a erstwhile
Wholly owned subsidiary Company, and by Today''s Stationery Mart Ltd, a
wholly owned subsidiary of the Company respectively. The terms and
conditions whereof are prima facie not prejudicial to the interest of
the company.
16. In our opinion, on the basis of information and explanations given
to us, on an overall basis, the term loans were applied for the
purposes for which the loans were obtained.
17. On the basis of an overall examination of the Balance Sheet of the
Company, in our opinion and according to the information and
explanation given to us, there are no funds raised on a short-term
basis, which have been used for long - term investments.
18. During the year the company has not made any preferential
allotment of shares to parties or companies covered in the register
maintained under section 301 of the Companies Act, 1956. According,
clause 4(xviii) of the Order is not applicable.
19. The Company has not issued any debentures. According, clause
4(xix) of the Order is not applicable.
20. During the year Company has not raised any money by public issued
during the year. According, clause 4(xx) of the Order is not
applicable.
21. To the best of our knowledge and belief and according to the
information and explanation given to us, no fraud on or by the Company
has been noticed or reported during the course of our audit.
For AJAY SHOBHA a CO.
Chartered Accountants
(AJAY GUPTA)
Place: Dadra Partner
Date: 15th June, 2011 M. No.053071
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