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 312016 theStatement of Profit and Loss and Cash Flow Statement for the year then ended and a summaryof significant accounting policies and other explanatory information.
Managements Responsibility for the Financial Statements
The Companys 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 Companies Act 2013 read with Rule 7 of the Companies (Accounts) Rules2014. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the company andfor preventing 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 theauditors 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 Companyspreparation of the financial statement 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 accounting policies used and the reasonableness of theaccounting estimates made by Companys 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 2016;
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 (Auditors Report) Order 2016 (theOrder) issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the Annexure a statement on the matters specified inparagraphs 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 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 2016 and 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 ofSub-section (2) of Section 164 of the Companies Act 2013.
f) In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlover financial reporting were operating effectively as at March 31 2016 based on theinternal control over financial reporting criteria established by the Company.
g) With respect to the other matters to be included in Auditors Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules2014 in our opinionand to the best 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 theinvestors Education and Protection Fund by the Company.
FOR PARIKH AND AMIN ASSOCIATES
Firm Registration No. 107520W
Place : Mumbai
Date:May 16 2016
ANNEXURE A 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.
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 inventoryhas been conducted at reasonable intervals by management and no material discrepancieswere noticed on physical verification during the year.
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 Act2013:
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. Accordinglyparagraph 3 (iii) (b) (c) and (d) of the Order are not applicable to the Company.
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 to which provision of section 73 to76 or any other relevant provision of the Companies Act 2013 and the rules framedthereunder where applicable.
6. The provision of Cost Audit prescribed by the Central Government under Section 148of the Companies Act 2013 are not applicable to the company. However company hasmaintained the books of accounts pursuant to the rules prescribed by the CentralGovernment for maintenance of cost records under Section 148 of the Act in respect of theproduct sold by the Company and are of the opinion that prima facie the prescribedaccounts and records have been made and maintained. The company has obtained compliancereport from Cost Auditor 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 FundEmployees State Insurance Income Tax VAT Wealth Tax Service Tax Custom DutyCess and other material statutory dues applicable to it. According to the information andexplanations given to us there are no arrears of outstanding statutory dues as at thelast day of the financial year for a period exceeding six months from the date they becamepayable.
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 2016 for a period of more than six months fromthe 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 HonbleCustoms Excise Service Tax Appellate Tribunal West Zone Mumbai.
The Company has paid a deposit of Rs.5904883/- being the 7.5% of duty leviable andalso paid the deposit of Rs. 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 its dues to any financial institution and banks during the year.
9. The Company has not raised any money 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 and causing material misstatement to financial statement has been noticed orreported during the course of our audit.
11. The managerial remuneration has been paid or provided in accordance with therequisite approvals mandated by the provision 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-IA of Reserve Bank of India Act1934.
For PARIKH AND AMIN ASSOCIATES
Firm Registration No. 107520W
Place : Mumbai
Date: 16th May 2016
ANNEXURE B TO THE INDEPENDENT AUDITORS REPORT
Annexure B to the Independent Auditors Report of even date on financialstatements of M/S. CHOKSI IMAGING LIMITED.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 (the Act).
1. We have audited the internal financial controls over financial reporting of M/s.Choksi Imaging Limited (the Company) as of 31st March 2016 in conjunction withour audit of financial statements of the company for the year ended on that date.
Managements Responsibility for the Internal Financial Controls
2. The Companys management is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of India (ICAI).
3. 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 Companyspolicies the safeguarding of its assets the prevention and detection of frauds anderrors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companys Act2013.
4. Our responsibility is to express an opinion on the Companys 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 standard on auditing issued by ICAI and deemed tobe prescribed under section 143(10) of the Companies Act2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the ICAI.
5. 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 were established andmaintained and if such controls operated effectively in all material respects.
6. 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 auditors judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error
7. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Companys internal financial controlssystem over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
8. A Companys internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statement for external purposes in accordance withgenerally accepted accounting principles. A Companys 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 assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
9. 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.
10. 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 31st March 2016 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
Firm Registration No.107520W
(K. R. Parikh)
Place : Mumbai
Date : 16th May 2016