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Charms Industries Ltd.

BSE: 531327 Sector: Financials
NSE: N.A. ISIN Code: INE442C01012
BSE LIVE 14:26 | 08 Nov 2.19 -0.11
(-4.78%)
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2.19

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2.19

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NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 2.19
PREVIOUS CLOSE 2.30
VOLUME 100
52-Week high 5.27
52-Week low 2.00
P/E
Mkt Cap.(Rs cr) 1
Buy Price 2.19
Buy Qty 900.00
Sell Price 0.00
Sell Qty 0.00
OPEN 2.19
CLOSE 2.30
VOLUME 100
52-Week high 5.27
52-Week low 2.00
P/E
Mkt Cap.(Rs cr) 1
Buy Price 2.19
Buy Qty 900.00
Sell Price 0.00
Sell Qty 0.00

Charms Industries Ltd. (CHARMSINDS) - Auditors Report

Company auditors report

To the Members of Charms Industries Limited Report on the Financial Statements

We have audited the accompanying financial statements of Charms Industries Limited("the Company") which comprise the Balance Sheet as at 31st March2016 and the Statement of Profit and Loss and Cash Flow Statement for the year thenended and a summary of 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") with respect to the preparationand presentation of these standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on 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 thereunder.

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 ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company’s Directors as well as evaluating theoverall 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 given below give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at 31st March 2016 and its losses and its cash flowsfor the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2015 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in "Annexure A" a statement on the mattersspecified in the paragraph 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 Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account;

d) in our opinion the aforesaid standalone 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 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 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 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 does not have any pending litigations which would impact its financialposition;

ii. The Company did not have any long-term contracts including derivative contracts forwhich 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 Praful N. Shah & Co.
Chartered Accountants
(FRN: 108057W)
Praful N. Shah
Place : Ahmedabad Proprietor
Date : 26/05/2016 M.No.15591

ANNEXURE - A TO THE INDEPENDENT AUDITOR’S REPORT (Referred to in Paragraph 1 ofour Report of even date)

i. (a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets

(b) As explained to us the fixed assets have been physically verified by themanagement in accordance with the programme of verification which in our opinion isreasonable having regard to the size of the company and the nature of its assets. Asinformed to us no material discrepancies have been noticed on such verification.

ii. (a) The inventory has been physically verified during the year by the management atreasonable intervals

(b) The procedures of the physical verification of the inventories followed bymanagement are reasonable and adequate in relation to size of the company and nature ofthe business.

(c) The company has maintained proper records of its inventories and no materialdiscrepancies were noticed on physical verification.

iii. According to the information and explanation given to us and the records producedto us for our verification the company has not granted any loans to companies firms orother parties covered in the register maintained under section 189 of the Companies Act2013. Accordingly the provisions of paragraph 3 (iii) of the Order are not applicable.

iv. According to the information and explanations given to us and representations madeby the Management the Company has not done any transactions covered under section 185 and186 in respect of loans investments guarantees and security. Accordingly the provisionsof paragraph 3 (iv) of the Order are not applicable.

v. The Company has not accepted any deposits from the public and hence the directivesissued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any otherrelevant provisions of the Act and the Companies (Acceptance of Deposit) Rules 2015 withregard to the deposits accepted from the public are not applicable.

vi. The Central Government has not prescribed maintenance of cost records under subsection (1) of section 148 of the Companies Act 2013 for any of the products manufacturedby the Company.

vii. (a) According to information and explanation given to us and on the basis ofexamination of the records of the company amount deducted/accrued in the books ofaccounts in respect of undisputed statutory dues including provident fund employees’state insurance income-tax sales tax wealth tax service tax duty of customs duty ofexcise value added tax and other cess and any other statutory dues have been generallyregularly deposited with the appropriated authorities wherever applicable there is nooutstanding as at 31 March 2016 for a period of more than six months from the date theybecome payable.

(b) According to the records of the Company and representations made by the Managementthere are no statutory dues as mentioned in paragraph 3(vii)(a) which have not beendeposited on account of any dispute.

viii. The Company has not taken any loan either from banks financial institutions orfrom the government and has not issued any debentures. Accordingly the provisions ofparagraph 3 (viii) of the Order are not applicable.

ix. Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not raised moneys by way of initial public offeror further public offer including debt instruments and term Loans. Accordingly theprovisions of clause 3 (ix) of the Order are not applicable.

x. During the course of our examination of the books and records of the companycarried out in accordance with the generally accepted auditing practice in India andaccording to the information and explanation given to us we have neither come across anyinstance of material fraud by the company or on the company by its officers or employeesnoticed or reported during the period nor have we been informed of any such case by themanagement.

xi. In our opinion managerial remuneration for the year ended 31st March 2016 hasbeen paid and provided in accordance with the requisite approvals mandated by theprovisions of section 197 of the Act read with Schedule V to the Act.

xii. In our opinion the Company is not a nidhi Company. Accordingly the provisions ofClauses 3 (xii) of the Order are not applicable.

xiii. As per information and explanation given to us and on the basis of ourexamination of the records of the Company there are no transactions with related partieswithin section 177 and 188 of Companies Act 2013 and all the details have been disclosedin financial statements as required by the applicable Accounting Standards.

xiv. According to the information and explanations given to us and on the basis of ourexamination of the records the Company has not made any preferential allotment or privateplacement or not issued any debenture during the year under review. Accordingly theprovisions of paragraph 3(xiv) of the Order are not applicable.

xv. According to the information and explanations given to us and on the basis of ourexamination of the records Company has not entered into any non-cash transactions withany director or any person connected with him.

Accordingly the provisions of Clauses 3(xv) of the Order are not applicable to theCompany.

xvi. In our opinion the company is not required to be registered under section 45 IAof the Reserve Bank of India Act 1934 and accordingly the provisions of clause 3(xvi) ofthe Order are not applicable.

For Praful N. Shah & Co.
Chartered Accountants
(FRN: 108057W)
Praful N. Shah
Place : Ahmedabad Proprietor
Date : 26/05/2016 M.No.15591

ANNEXURE - B TO THE 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 the Companyas of 31st March 2016 in conjunction with our audit of the financial statements of thecompany for the year ended on that date.

Management’s Responsibilities 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 theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the 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 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 controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of 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 the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and

3) Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company’s assets that could havea 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 is not having any defined SOP to manage its operations.Accordingly there are some limitations in the control aspects of financial reporting. Inour opinion except for the possible effects of the this material weakness the companyhas maintained in all material respects an adequate internal financial controls overfinancial reporting and such internal financial controls over financial reporting wereoperating effectively as of 31st March 2016 based on the internal financial controls overfinancial reporting criteria established by the company considering the essentialcomponents of internal financial controls stated in the Guidance Note on audit of internalfinancial controls over financial reporting issued by the Institute of CharteredAccountants of India.

For Praful N. Shah & Co.
Chartered Accountants
(FRN: 108057W)
Praful N. Shah
Place : Ahmedabad Proprietor
Date : 26/05/2016 M.No.15591