Toyam Industries

Report on the Standalone Financial Statements
 
We have audited the accompanying Standalone financial statements of Toyam Industries Limited (‘the
Company’), which comprise the balance sheet as at 31st March 2018, the statement of profit and loss
(including other comprehensive income), the statement of cash flows and the statement of changes in equity
for the year then ended 31st March 2018 and a summary of the significant accounting policies and other
explanatory information (herein after referred to as “Standalone financial statements”).
 
Management''s Responsibility for the Financial Statements
 
The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the
Companies Act, 2013 (“the Act”) with respect to the preparation of these Standalone financial
statements that give a true and fair view of the financial position, financial performance including other
comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting
principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under
Section 133 of the Act read with relevant rules issued there under.
 
This responsibility also includes maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and
other irregularities; selection and application of appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal
financial controls, that were operating effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the Standalone financial statements that
give a true and fair view and are free from material misstatement, whether due to fraud or error.
 
In preparing the standalone financial statements, management is responsible for assessing the
Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless management either intends to liquidate the
Company or to cease operations, or has no realistic alternative but to do so.
 
Auditor''s Responsibility
 
Our responsibility is to express an opinion on these Standalone financial statements based on our
audit.
 
We have taken into account the provisions of the Act, the accounting and auditing standards and matters
which are required to be included in the audit report under the provisions of the Act and the Rules made
there under.
 
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of
the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the Standalone financial statements are free from material
misstatement.
 
An audit involves performing procedures to obtain audit evidence about the amount sand the disclosures in
the Standalone financial statements. The procedures selected depend on the auditor’s judgment, including
the assessment of the risks of material misstatement of the Standalone financial statements, whether due to
fraud or error. In making those risk assessments, the auditor considers internal financial control relevant
to the Company’s preparation of the Standalone financial statements that give at true and fair view in
order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating
the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by
the Company’s Directors, as well as evaluating the overall presentation of the Standalone financial
statements.
 
We are also responsible to conclude on the appropriateness of management’s use of the going concern
basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related
to events or conditions that may cast significant doubt on the Company’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in the
auditor’s report to the related disclosures in the Standalone financial statements or, if such
disclosures are inadequate, to modify the opinion. Our conclusions are based on the audit evidence obtained
up to the date of the auditor’s report. However, future events or conditions may cause the Company to
cease to continue as a going concern.
 
We believe that the audit evidence we have obtained is sufficient and appropriate to provide 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 explanations given to us, the
aforesaid Standalone financial statements give the information required by the Act in the manner so required
and give a true and fair view in conformity with the accounting principles generally accepted in India
including the Ind AS, of the state of the affairs of the Company as at 31 st March 2018, and its profits and
its cash flows for the year 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 section 143(11) of the Act, we give in the Annexure A, a
statement on the matters specified in the paragraph 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 best of 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 the Company so far as
it appears from our examination of those books;
 
c)    The balance sheet, the statement of profit and loss, the statement of cash flows and the statement
of changes in equity dealt with by this Report are in agreement with the books of account;
 
d)    In our opinion, the aforesaid Standalone financial statements comply with the Accounting Standards
specified under Section 133 of the Act read with relevant rule issued thereunder;
 
e)    On the basis of the written representations received from the directors as on 31st March 2018 taken
on record by the Board of Directors, none of the directors is disqualified as on 31st March 2018 from being
appointed as a director in terms of Section 164 (2) of the Act;
 
f)    With respect to the adequacy of the internal financial controls over financial reporting of the
Company and the operating effectiveness of such controls, refer to our separate report in “Annexure
B”; and
 
g)    With respect to the other matters to be included in the Auditor’s Report in accordance with
Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and 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 financial position in its
Standalone financial statements.
 
ii.    The Company did not have any long-term contracts including derivative contracts for which there
were any foreseeable losses; and
 
iii.    There were no amounts which were required to be transferred to the Investors Education and
Protection Fund by the Company.
 
iv.    The disclosures in the standalone financial statements regarding holdings as well as dealings in
specified bank notes during the period from 8 November 2016 to 30 December 2016 have not been made since they
do not pertain to the financial year ended 31 March 2018.
 
The Annexure referred to in our Independent Auditors'' Report to the members of the Company on the
standalone financial statements for the year ended March 31st, 2018, we report that:
 
i.    (a) The Company has maintained proper records showing full particulars, including quantitative
details and situation of fixed assets.
 
(b)    The Company has a regular program of physical verification of its fixed assets by which fixed
assets are verified in a phased manner over a period of one years. In accordance with this program, certain
fixed assets were verified during the year and no material discrepancies were noticed on such verification.
In our opinion, this periodicity of physical verification is reasonable having regard to the size of the
Company and the nature of its assets.
 
(c)    There are no immovable properties held by the Company.
 
ii.    (a) There are no inventories held by the Company.
 
iii.    (a) The Company has granted loans to one party covered in the register maintained under section
189 of the Companies Act,2013 (‘the Act’),
 
(b)In    the case of the loans granted to any parties in the register maintained under section 189 of the
act, the borrowers have been regular in the payment of the interest as stipulated. The terms of arrangements
do not stipulate any repayment schedule and the loans are repayable on demand. Accordingly, paragraph 3 (ii)
(b) of the order is not applicable to the company in respect of payment of the principal amount.
 
(c)    There are no overdue amounts for period of more than ninety days in respect of the loans granted
to the bodies corporate listed in the register maintained under section 189 of the act.
 
iv.    In our opinion and according to the information and explanations given to us, the Company has
complied with provision of section 185 and 186 of Act, with respect to the loan and investment made.
 
v.    The Company has not accepted any deposits during the year within the meaning of the provisions of
section 73 to 76 or any other relevant provisions of the Companies Act and the rules framed there under.
 
vi.    The Central Government has not prescribed the maintenance of cost records under section148 (1) of
the Act, for any of the services rendered by the Company.
 
vii.    (a) According to the information and explanations given to us and on the basis of our examination
of the records, the Company is regular in depositing undisputed statutory dues including provident fund,
income tax, service tax, cess and other material statutory dues with the appropriate authorities. As
explained to us, the Company did not have any dues on account of sales tax, wealth tax, duty of customs,
value added tax, employees'' state insurance and duty of excise.
 
(b) According to the information and explanation given to us, there is no dispute pending in respect of
dues of provident fund/sales tax/wealth tax/service tax/custom duty/excise duty/cess/value added tax, were in
arrears as at 31st march, 2018 for a period of more than six month from the date they became payable.
According to the records of the Company, income-tax.
 

 

 

 

 
Name of the Statute
 
 

 
Nature of dues
 
 

 
Amount (Rs in lakhs)
 
 

 
Period to which it relates
 
 

 
Form where the Dispute is pending
 
 
 

 

 
Income Tax Act, 1961
 
 

 
Income tax dues
 
 

 
42,070
 
 

 
A.Y. 2010-11
 
 

 
Assessing Officer
 
 
 
 
 
viii. The Company did not have any outstanding dues to financial institutions, banks or debenture holders
during the year.
 
ix.    The Company did not raise any money by way of initial public offer or further public offer
(including debt instruments) and term loans during the year. Accordingly, paragraph 3 (ix) of the Order is
not applicable.
 
x.    Based upon the audit procedure performed for purpose of reporting the true and fair view of the
Financial Statements and According to the information and explanations given to us, no material fraud on or
by the Company has been noticed or reported during the course of our audit.
 
xi.    According to the information and explanations given to us and based on our examination of the
record of the Company, managerial remuneration has been paid/provided in accordance with the requisite
approvals.
 
xii.    In our opinion and according to the information and explanations given to us, the company is not
Nidhi Company. Accordingly paragraph 3(xii) of Order is not applicable.
 
xiii.    According to the information and explanations given to us and based on our examination of the
records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of
the Act where applicable and details of such transactions have been disclosed in the Standalone financial
statements as required by the applicable accounting standards.
 
xiv.    The company has not made any preferential allotment or private placement of shares or fully or
partly convertible debentures during the year under review.
 
xv.    According to the information and explanations given to us and based on our examination of the
record of the Company, the company has not entered into any non-cash transactions with directors or persons
connected with him.
 
xvi.    According to the information and explanations given to us, the provisions of the section 45-IA of
the Reserve Bank of India Act, 1934 are not applicable to the company.
 
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the
Companies Act, 2013 (“the Act”)
 
We have audited the internal financial controls over financial reporting of Toyam Industries
Limited (''the Company'') as of 31st March 2018 in conjunction with our audit of the
standalone 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 internal financial
controls based on the internal control over financial reporting criteria established by the Company
considering the essential components of internal control stated in the Guidance Note on Audit of Internal
Financial Controls over Financial Reporting (the “Guidance Note”) issued by the Institute of
Chartered Accountants of India (the “ICAI”). These responsibilities include the design,
implementation and maintenance of adequate internal financial controls that were operating effectively for
ensuring the orderly and efficient conduct of its business, including adherence to the Company’s
policies, safeguarding of its assets, prevention and detection of frauds and errors, accuracy and
completeness of the accounting records, and timely preparation of reliable financial information, as required
under the Act.
 
Auditors’ Responsibility
 
Our responsibility is to express an opinion on the Company''s internal financial controls over financial
reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of
Internal Financial Controls Over Financial Reporting (the “Guidance Note”) and the Standards on
Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the
extent applicable to an audit of internal financial controls, both applicable to an audit of Internal
Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and
the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether adequate internal financial controls over financial reporting was
established and maintained and if such controls operated effectively in all material respects.
 
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal
financial controls system over financial reporting and their operating effectiveness.
 
Our audit of internal financial controls over financial reporting included obtaining an understanding of
internal financial controls over financial reporting, assessing the risk that a material weakness exists, and
testing and evaluating the design and operating effectiveness of internal control based on the assessed risk.
The procedures selected depend on the auditor’s judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error.
 
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion on the Company’s internal financial controls system over financial reporting.
 
Meaning of Internal Financial Controls over Financial Reporting
 
A company''s internal financial control over financial reporting is a process designed to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with generally accepted accounting principles. A company''s
internal financial control over financial reporting includes those policies and procedures that
 
1.    Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company;
 
2.    Provide reasonable assurance that transactions are recorded as necessary to permit preparation of
financial statements in accordance with generally accepted accounting principles, and that receipts and
expenditures of the company are being made only in accordance with authorizations of management and directors
of the company; and
 
3.    Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition,
use, or disposition of the company''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 financial reporting, including
the possibility of collusion or improper management override of controls, material misstatements due to error
or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls
over financial reporting to future periods are subject to the risk that the internal financial control over
financial reporting may become inadequate because of changes in conditions, or that the degree of compliance
with the policies or procedures may deteriorate.
 
Opinion
 
In our opinion, the company has, in all material respects, an adequate internal financial control system
over financial reporting and such internal financial controls over financial reporting were operating
effectively as at march 31,2018, based on the internal control over financial reporting criteria established
by the company considering the essential components of internal control stated in the guidance note on audit
of internal financial control over financial reporting issued by the Institute of Chartered Accountant of
India.
 
FOR R SONI & COMPANY
 
Chartered Accountants
 
Firm’s registration number: 130349W
 
Sd/-
 
RAJESH SONI
 
Partner
 
Membership No.133240
 
Place: Mumbai
 
Date: 30/05/2018