To the Members of Choksi Imaging Ltd. Report on the Financial Statements
We have audited the accompanying financial statements of CHOKSI IMAGING LTD. ("theCompany") which comprise the Balance Sheet as at March 31 2015 the Statement ofProfit and Loss and Cash Flow Statement for the year then ended and a summary ofsignificant 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 Act2013 ('the Act") with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the Accounting principlesgenerally accepted in India including the Accounting Standards specified under section133 of the Companies Act 2013 read with Rule 7 of the Companies (Accounts) Rules 2014.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding the assets of the company and forpreventing 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 financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
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 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 anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statement that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An Audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by Company's Directors as well as evaluating the overallpresentation 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 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 :
a) In the case of the Balance Sheet of the state of affairs of the Company as at March31 2015;
b) In the case of the Statement of Profit and Loss of the Loss for the year ended onthat date; and
c) In the case of the Cash Flow Statement of the cash flows for the year ended on thatdate. Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2015 ('the Order') issued bythe Central Government of India in terms of sub-section (11) of section 143 of the Act wegive in the Annexure a statement on the matters specified in paragraphs 3 and 4 of theOrder.
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 purpose 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 and proper returnsadequate for the purposes of our audit have been received from the branches not visited byus.
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 Balance Sheet the Statement of Profit and Loss and Cash FlowStatement comply with the Accounting Standards referred to in Section 133 of the CompaniesAct 2013 read with Rules 7 of the Companies (Accounts) Rules 2014.
e) On the basis of written representations received from the directors as on 31stMarch 2015 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2015 from being appointed as a director in terms ofSub-section (2) of Section 164 of the Companies Act 2013.
f) With respect to the other matters to be included in Auditor's Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to thebest of our information and according to the explanations given to us :
1) The Company has disclosed the impact of pending litigations on its financialpositions in its financial statement.
2) The Company has made provisions as required under the applicable Law or AccountingStandards for the material foreseeable losses if any on long term contracts includingderivative contracts.
3) There has been no delay in transferring amounts required to be transferred to theinvestor's Education and Protection Fund by the Company.
| ||FOR PARIKH AND AMIN ASSOCIATES |
| ||CHARTERED ACCOUNTANTS |
| ||Firm Registration No. 107520W |
| ||Sd/- |
| ||K. R. PARIKH |
|Place : Mumbai ||(PARTNER) |
|Date : 11th May 2015 ||Membership No.36517 |
ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT
Referred to in Paragraph 1 under the heading "Report on other legal and regulatoryrequirements" of our report of even date
1. In respect of its Fixed Assets
a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets;
b) As per the information and explanations given to us the fixed assets have beenphysically verified by the management during the year which in our opinion is reasonableconsidering the size of the company and nature of its asset. The frequency of physicalverification is reasonable and no material discrepancies were noticed on suchverification.
2. In respect of its Inventories
a) As per the information and explanations given to us inventories of the company atwork godown and branches and with consignment agent have been physically verified duringthe year by the management. In our opinion the frequency of verification is reasonable.
b) In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventories followed by the management arereasonable and adequate in relation to the size of the company and the nature of itsbusiness.
c) The company is maintaining proper records of inventories and no materialdiscrepancies were noticed.
3. In respect of the loans secured or unsecured granted by the company to / fromcompanies firms or other parties covered in the register maintained under Section 189 ofthe Companies Act 2013:
a) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms or other parties covered inthe register maintained under Section 189 of the Companies Act 2013.
4. In our opinion and according to the information and explanation given to us thereis an adequate internal control system commensurate with the size of the Company and thenature of its business for the purchases of inventory and fixed assets and with regard tothe sale of goods and services. During the course of our audit we have neither comeacross nor have we been informed of any continuing failure to correct major weaknesses ininternal control system.
5. In our opinion and according to the information and explanation given to us theCompany has complied with the provision of section 73 to 76 of the Companies Act 2013 andthe Companies Rules (Acceptance of Deposit) Rules 2014 with regard to the depositaccepted from the public. Accordingly there have been no proceedings before the CompanyLaw Board or National Company Law Tribunal or Reserve Bank of India or any court or anyother tribunal in this matter and no order has been passed by any of the aforesaidauthorities.
6. The provision of Cost Audit prescribed by the Central Government under Section 148of the Companies Act 2013 are applicable to the company. However company has maintainedthe books of accounts pursuant to the rules prescribed by the Central Government formaintenance of cost records under Section 148 of the Act in respect of the product sold bythe Company and are of the opinion that prima facie the prescribed accounts and recordshave been made and maintained. The company has obtained compliance report from CostAuditor for the year.
7. In respect of statutory dues:
a) According to the information and explanations given to us in our opinion theCompany is generally regular in depositing undisputed statutory dues with appropriateauthorities including Provident Fund Investor Education and Protection Fund Employees'State Insurance Income Tax VAT Wealth Tax Service Tax Custom Duty Cess and othermaterial statutory dues applicable to it. According to the information and explanationsgiven to us there are no arrears of outstanding statutory dues as at the last day of thefinancial year for a period exceeding six months from the date they became payable.
b) According to the information and explanation given to us no undisputed amountspayable in respect of Income Tax Wealth Tax Service Tax VAT Customs Duty Excise Dutyand Cess were in arrears as at 31st March 2015 for a period of more than sixmonths from the date they became payable.
However according to information and explanation given to us dues of Custom Duty andPenalty has not been deposited on account of any dispute is Rs 1574.64 lacs related toAccounting Year 2011-2012 2012 2013 and 2013-2014 pending before the Commissioner ofCustoms.
c) According to the information and explanation given to us the amounts which wererequired to be transferred to investor education and protection fund in accordance withthe relevant provisions of the Companies Act1956 (1 of 1956) and rules made thereunderhas been transferred to such fund within time.
8. The Company does not have any accumulated losses as at 31st March 2015.The Company has not incurred any cash losses during the financial year covered by theaudit. However company has incurred cash losses in the immediate preceding financialyear.
9. Based on our audit procedures and according to the information and explanationsgiven by management we are of the opinion that the Company has not defaulted in repaymentof its dues to any financial institution and banks during the year.
10. In our opinion and according to the information and explanations given to us thecompany has not given any guarantees for loans taken by others from banks or financialinstitutions.
11. The company has not taken any term loan during the year.
12. During the course of our examination of books and record of the Company carriedout in accordance with the generally accepted auditing practices in India and according tothe information and explanations given to us by the management no material fraud on or bythe Company and causing material misstatement to financial statement
I has been noticed or reported during the course of our audit.
For PARIKH AND AMIN ASSOCIATES
Firm Registration No. 107520W
K. R. PARIKH
Place : Mumbai
Date : 11th May 2015