You are here » Home » Companies » Company Overview » Choksi Imaging Ltd

Choksi Imaging Ltd.

BSE: 530427 Sector: Consumer
NSE: N.A. ISIN Code: INE865B01016
BSE 00:00 | 17 May 26.00 -1.00
(-3.70%)
OPEN

27.85

HIGH

27.85

LOW

26.00

NSE 05:30 | 01 Jan Choksi Imaging Ltd
OPEN 27.85
PREVIOUS CLOSE 27.00
VOLUME 1535
52-Week high 29.00
52-Week low 9.36
P/E 8.15
Mkt Cap.(Rs cr) 10
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 27.85
CLOSE 27.00
VOLUME 1535
52-Week high 29.00
52-Week low 9.36
P/E 8.15
Mkt Cap.(Rs cr) 10
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Choksi Imaging Ltd. (CHOKSIIMAGING) - Auditors Report

Company auditors report

To the Members of Choksi Imaging Limited Report on the Standalone Financial StatementsOpinion

We have audited the accompanying standalone financial statements of M/s CHOKSI IMAGINGLIMITED which comprise the Balance Sheet as at March 31 2020 and the Statement of Profitand Loss (including Other Comprehensive Income) the Statement of Cash Flow and theStatement of Changes in Equity for the year then ended and a summary of significantaccounting policies and other explanatory information. (hereinafter referred to as"the standalone financial statements)

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 (the Act) in the manner so required and give a true and fairview in conformity with the accounting principles generally accepted in India includingIndian Accounting Standards ( Ind AS ) specified under section 133 of the Act of thestate of affairs ofthe Company as at March 31 2020 and profit/loss (changes in equity)1 and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters.

We have determined the matters described below to be the key audit matters to becommunicated in our report:

Key Audit Matter How our audit addressed the key audit matter
Litigation Matter- Claims against company not acknowledged as Debt Our procedures included but were not limited to the following:
Refer note no 27 to the accompanying financial statements. Obtained an understanding of management's stance on the said matter based on the provisions of the law prevailing at that period of time.
As at 31st March 2020 the contingent liability reported in notes accompanying financial statements is on account of order passed by Commissioner of Customs for the levy of SAD & penalty thereon amounting to Rs 15.74 crores and further penalty on executives/director of the company amounting to Rs 75 lacs. Assessed the professional competence and capabilities of the legal adviser engaged by the management.
The Company has filed an appeal before the Honorable Tribunal of Customs against the said order and management is expecting a favorable order based on the legal advisory's opinion. Based on our procedures we also considered the adequacy of disclosures in respect of the said litigation as a contingent liability in the notes to the standalone financial statements.
Considering the materiality of the amount involved this matter has been identified as a key audit matter for the current year audit.

Information Other than the Financial Statements and Auditor's Report Thereon

The Company's Board of Directors' is responsible for the other information. The otherinformation comprises the information included in the Annual Report but does not includethe financial statements and our auditor's report thereon.

Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether other information is materiallyinconsistent with the financial statements or our knowledge obtained in the audit orotherwise appears to be materially misstated. If based on the work we have performed weconclude that there is a material misstatement of this other information we are requiredto report that fact. We have nothing to report in this regard.

Responsibility of Management for theStandaloneFinancial 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 standalone financial statements that give a true and fair view of the financialposition financial performance (changes in equity) 2 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. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities;selection and application of appropriate implementationand maintenance of accounting policies; making judgments and estimates that are reasonableand prudent; 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 financialstatement that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

The Board of Directors is also responsible for overseeing the company's financialreporting process

Auditor's Responsibility for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the standalone financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain auditevidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(I) of theAct we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls with reference to financial statements in place andthe operating effectiveness of such controls.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures in the standalone financial statements madeby the Management and

Board of Directors.

Conclude on the appropriateness of the Management and Board of Directors use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our Auditors' Report tothe related disclosures in the standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our Auditors' Report. However future events or conditions maycause the Company to cease to continue as a going concern.

Evaluate the overall presentation structure and content of the standalone financialstatements including the disclosures and whether the standalone financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our Auditors' Report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to out weigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Companies Act 2013 we give in the Annexure A; statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

As required by Section 143(3) of the Act we report that:

We have sought and obtained all the information and explanations which to the best ofour knowledge and belief were necessary for the purposes of our audit.

a. 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. 3 ]

b. 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.

c. 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.

d. On the basis of the written representations received from the directors as on 31stMarch 2020 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2020 from being appointed as a director in terms of Section164 (2) of the Act.

e. With respect to the adequacy of the internal financial controls over financialreporting (ICFR) of the Company and the operating effectiveness of such controls refer toour separate Report in "Annexure B".

f. 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 has disclosed the impact of pending litigations on its financialposition in its financial statements

Refer Note 27 to the financial statements.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company during the year ended 31stMarch 2020.

FOR KARIA & SHAH
CHARTERED ACCOUNTANTS
Firm Registration No. 112203W
Sanjay Shah
(PARTNER)
M. No. 042529
Place: Mumbai
Date: 17/06/2020
UDIN: 20042529AAAABT3179

ANNEXURE A TO THE INDEPENDENT AUDITOR'S REPORT

CHOKSI IMAGING LTD. ON THE STANDALONE FINANCIAL STATEMENTS FOR THE

YEAR ENDED 31 ST MARCH 2020; F.Y.2019-20

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 has maintained proper records showing full particulars includingquantitative details and situation of property plant and equipment.

b) As per the information and explanation given to us the property plant andequipment have been physically verified by the management during the year which in ouropinion is reasonable considering the size of the company and nature of asset. Thefrequency of physical verification is reasonable and no material discrepancies werenoticed on such verification.

c) The tittle deeds comprising all the Immovable Properties of the land and acquiredbuildings which are freehold are held in the name of Company.

2. In respect of Inventories :

According to information and explanation given to us physical verification of inventoryhas been conducted at reasonable intervals by the management except for inventories lyingwith third parties where confirmations have been received by the management and nomaterial discrepancies were noticed on physical verification during the year.

3. In respect of the loan secured or unsecured granted by the company to / fromcompanies firms or other parties covered in the register maintained under sec 189 ofCompanies act 2013:

a According to the information and explanations given to us the company has not grantedany loans secured or unsecured to companies firms or other parties covered in theregister maintained under section 189 of Companies Act 2013.

4. According to the information and explanations given to us the Company hascomplied with the provision of section 185 and 186 of The Companies Act 2013 in respect ofloan investments guarantees and securities as applicable.

5. According to the information and explanation given to us the Company has notaccepted any deposit and hence reporting under paragraph 3(v) of the Order is notapplicable.

6. According to information & explanation given to us the CentralGovernment has not prescribed maintenance of cost records under sub-section (1) of thesection 148 of Companies Act 2013 for the year under consideration.

7. In respect of Statutory Dues :

a) According to information and explanations given to us in our opinion the Companyis generally regular in depositing undisputed statutory dues with appropriate authoritiesincluding Provident Fund Income Tax VAT Wealth Tax Service Tax Custom Duty GST Cessand other material statutory dues applicable to it with the appropriate authorities.

b) According to the information and explanation given to us no undisputed amountspayable in respect of Income Tax Wealth Tax Service Tax VAT Custom Duty GST and Cesswere in arrears as at 31 st March 2020 for a period of more than Six months from the datethey became payable.

c) Details of dues of Income-tax Service tax Custom Duty Excise Duty and ValueAdded Tax GST which have not been deposited as on 31 st March 2020 on account of disputeare given below

Name of Statue Nature of Dues Forum where dispute is pending Periods to which the amount relates Amount unpaid Amount paid in protest
The Customs Act 1962 Custom Duty CentralExciseService Tax Appellate Tribunal 2011-12 2012-13 2013-14 1574.64 59.04
The Customs Act 1962 Custom Duty- Executive Offence CentralExciseService Tax Appellate Tribunal 2011-12 To 2013-14 75.00 5.62

8. Based on our audit procedure and according to the information andexplanations given by the management we are of the opinion that the company has notdefaulted in repayment of its dues to any financial institution and banks and governmentand dues to debenture holders.

9. In our opinion and according to the information and explanation given to usmoney raised by way of term loans have been applied by the company during the year for thepurposes of which they were raised or as per purposes revised with appropriate approvalsother than temporary deployment pending application of proceeds. The Company has neitherraised any moneys by way of public offer nor were such proceeds pending to be appliedduring the current year.

10. According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

11. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

12. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company.

Accordingly paragraph 3(xii) of the Order is not applicable.

13. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

14. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year and hence reporting under paragraph 3(xiv) of the Order is not applicable.

15. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him.

Accordingly paragraph 3(xv) of the Order is not applicable.

16. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For KARIA & SHAH
Chartered Accountants
Partner : Sanjay Shah
Mem No: 042529
Firm:112203W
Place : Mumbai
Date: 17/06/2020
UDIN: 20042529AAAABT3179

ANNEXURE B TO THE INDEPENDENT AUDITORS' REPORT

Annexure B to the Independent Auditor's Report of even date on financial statement ofM/s CHOKSI IMAGING LIMITED on the standalone financial statements for the year ended on 31MARCH 2020

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 ChoksiImaging Limited ("the Company") as of 31 March 2020 in conjunction with ouraudit of the standalone Ind AS financial statements of the Company for the year ended onthat date which includes a jointly controlled operation.

Management's Responsibility 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 (‘ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required 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 prescribed under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls 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 controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures 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

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.

Option

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 March 2020 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 Institute of CharteredAccountants of India.

For KARIA & SHAH
Chartered Accountants
(FRN: 112203W)
Partner: Sanjay Shah
Membership No: 042529
Place: Mumbai
Date: 17/06/2020
UDIN: 20042529AAAABT3179

.