To the Members of Choksi Imaging Limited Report on the Financial Statements
We have audited the accompanying financial statements of CHOKSI IMAGING LIMITED("the Company")which comprise the Balance Sheet as at March 312017 theStatement of Profit and Loss Cash Flow Statement for the year then ended and a summaryof 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 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 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.
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. An Audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by Company's Directors as well as evaluating the overall presentation ofthe 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 March312017;
b) In the case of the Statement of Profit and Loss of the Profit 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 2016 (the Order') asamended issued by the Central Government of India in terms of sub-section (11) of section143 of the Act we give in the "Annexure A" a statement on the matters specifiedin paragraphs 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 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;
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 Rules 7 of the Companies(Accounts) Rules 2014.
e) On the basis of written representations received from the directors as on 31 stMarch2017taken on record by the Board of Directors none of the directors is disqualifiedas on 31 st March 2017 from being appointed as a director in terms of Section 164 (2) ofthe Act.
f) With respect to the adequacy of internal financial controls over financial reportingof the Company and the operating effectiveness of such controls refer to our separateReport in "Annexure B".
g) With respect to the other matters to be included in Auditor's Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules2014 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 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.
4) The Company has provided disclosures in its financial statements as to holdings aswell as dealings in specified bank notes during the period from 8th November 2016 to 30thDecember 2016 and the same are in accordance with books of accounts maintained by theCompany.
FOR PARIKH AND AMIN ASSOCIATES
CHARTERED ACCOUNTANTS Firm Registration No. 107520W
K.R. PARIKH (PARTNER)
Place: Mumbai Date: May 52017
Referred to in Paragraph 1 under the heading "Report on Other Legal and RegulatoryRequirement' of our report of even date to the financial statements of the Company for theyear ended March 31 st 2017:
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 these fixed assets have beenphysically verified by the management at reasonable intervals in accordance with regularprogramme of verification. According to the information and explanation given to us nomaterial discrepancies were noticed on such verification.
c) The title deeds of the Immovable Properties are held in the name of the Company.
2. In respect of its Inventories:
According to information and explanation given to us
Physical verification of inventory has been conducted at reasonable intervals bymanagement and no material discrepancies were noticed on physical verification during theyear.
3. According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms and limited liabilitypartnerships or other parties covered in the register maintained under Section 189 of theCompanies Act 2013.
4. According to the information and explanation given to us the Company has compliedwith the provisions of Section 185 and 186 of the Companies Act 2013 in respect of loansinvestments guarantees and securities.
5. According to the information and explanation given to us the Company has notaccepted any deposit from the public during the year.
6. According to the information and explanations given to us the Central Governmenthas not prescribed maintenance of cost records under sub-section (1) of the section 148 ofthe Companies Act 2013.
7. According to the information and explanations given to us in respect of statutorydues:
a) The Company is generally regular in depositing undisputed statutory dues withappropriate authorities including Provident Fund Investor Education and Provident FundEmployees' State Insurance Income Tax VAT Wealth Tax Service Tax Custom Duty ExciseDuty Cess and any other statutory dues.
b) There were no undisputed amounts payable in respect of Provident Fund Employees'State Insurance Income Tax Wealth Tax Service Tax VAT Customs Duty Excise Duty Cessand any other statutory dues in arrears as at 31 st March 2017 for a period of more thansix months 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 ? 1574.64 lacs related toAccounting Year 2011-2012 2012-2013 and 2013-2014 pending before the Hon'ble CustomsExcise Service Tax Appellate Tribunal - West Zone Mumbai. The Company has paid a depositof ? 5904883/- being the 7.5% of duty leviable and also paid the deposit of ? 562500/-on behalf of executive of the Company.
8. 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 loans or borrowings to a financial institution bank Government or dues to debentureholders.
9. The Company has not raised any moneys by way of initial public offer or furtherpublic offer (including debts instruments) and term loans during the year.
10. 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 or its officers or employees and causing material misstatement to financialstatement has been noticed or reported during the course of our audit.
11. The managerial remuneration has been paid or provided in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V of theCompanies Act2013.
12. The Clause of the Caro 2016 is not applicable to the Company as the Company is nota Nidhi Company.
13. According to the information and explanations given to us all transactions withthe related parties are in compliance with sections 177 and 188 of the Companies Act2013wherever applicable and the details have been disclosed in the financial statements etc.as required by the applicable accounting standards.
14. According to the information and explanations given to us the Company has not madeany preferential allotment or private placement of shares or fully or partly convertibledebentures during the year under review.
15. According to the information and explanations given to us the Company has notentered into any Non-cash transactions with Directors or persons connected with him andthe provisions of section 192 of Companies Act2013 have been complied with.
16. The Clause of Caro 2016 is not applicable to Company as the Company is not arequired to be registered under section 45-IAof Reserve Bankof India Act1934.
For PARIKH AND AMIN ASSOCIATES
CHARTERED ACCOUNTANTS Firm Registration No. 107520W
K.R. PARIKH (PARTNER)
Place: Mumbai Date:5th May2017
Annexure B to the Independent Auditor's Report of even date on financial statements ofM/S. CHOKSI IMAGING
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 M/s. ChoksiImaging Limited (the Company') as of 31 st March 2017 in conjunction with our auditof financial statements of the company for the year ended on that date.
Management's Responsibility for the Internal Financial Controls
1. 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 ('ICAI').
2. These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to Company's policiesthe safeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required underthe Company'sAct 2013.
3. 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 Notes 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 Act2013 to the extent applicable to anaudit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the ICAI.
4. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
5. Our audit involves performing procedures to obtain audit evidence about the adequacyof the 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
6. 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 controls systemover financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
7. 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 themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the Company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the Company are being made only in accordance with authorizations ofmanagement and directors of the Company and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of theCompany's assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
8. Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatement due to error or fraud may occur and not be detected. Alsoprojections of any evaluation of the internal financial controls over financial reportingto future periods are subject to the risk that the internal financial control overfinancial reporting may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.
9. In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 st March 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the ICAI.
For PARIKH & AMIN ASSOCIATES
Chartered Accountants Firm Registration No.107520W
Place: Mumbai Date :5 th May 2017