We have audited the accompanying financial statements of CHOKSI IMAGING
LTD. (the Company), which comprise the Balance Sheet as at March
31,2015, the Statement of Profit and Loss and Cash Flow Statement for
the year then ended 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 Section 134(5) of the Companies Act,2013 (''the Act) with respect to
the preparation of these financial statements that give a true and fair
view of the financial position, financial performance and cash flows of
the Company in accordance with the Accounting principles generally
accepted in India, including the Accounting Standards specified under
section 133 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 accordance with the
provisions of the Act for safeguarding the assets of the company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the Audit Report under the
provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company''s
preparation of the financial statement that give a true and fair view
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
whether the Company has in place an adequate internal financial
controls system over financial reporting and the operating
effectiveness of such controls. An Audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by Company''s Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India :
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2015;
b) In the case of the Statement of Profit and Loss, of the Loss for the
year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2015 (''the
Order'') issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in 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 best of 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 the Company so far as it appears from our examination of those
books and proper returns adequate for the purposes of our audit have
been received from the branches not visited by us.
c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt 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 Flow Statement comply with the Accounting Standards referred
to in Section 133 of the Companies Act, 2013 read with Rules 7 of the
Companies (Accounts) Rules, 2014.
e) On the basis of written representations received from the directors,
as on 31st March 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March 2015, from being
appointed as a director in terms of Sub-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 accordance with Rule 11 of the Companies (Audit and Auditors) Rules,
2014, in our opinion and 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
financial positions in its financial statement.
2) The Company has made provisions, as required under the applicable
Law or Accounting Standards, for the material foreseeable losses, if
any, on long term contracts including derivative contracts.
3) There has been no delay in transferring amounts, required to be
transferred, to the investor''s Education and Protection Fund by the
ANNEXURE TO THE INDEPENDENT AUDITORS'' REPORT
Referred to in Paragraph 1 under the heading Report on other legal and
regulatory requirements of our report of even date,
1. In respect of its Fixed Assets
a) The Company is maintaining proper records showing full particulars,
including quantitative details and situation of fixed assets;
b) As per the information and explanations given to us, the fixed
assets have been physically verified by the management during the year,
which in our opinion is reasonable, considering the size of the company
and nature of its asset. The frequency of physical verification is
reasonable and no material discrepancies were noticed on such
2. In respect of its Inventories
a) As per the information and explanations given to us inventories of
the company at work, godown and branches and with consignment agent
have been physically verified during the 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, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
c) The company is maintaining proper records of inventories and no
material discrepancies were noticed.
3. In respect of the loans, secured or unsecured, granted by the
company to / from companies, firms or other parties covered in the
register maintained under Section 189 of the Companies Act, 2013:
a) According to the information and explanations given to us, the
Company has not granted any loans, secured or unsecured, to companies,
firms or other parties covered in the register maintained under Section
189 of the Companies Act, 2013.
4. In our opinion and according to the information and explanation
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchases of inventory and fixed assets and with regard to the sale of
goods and services. During the course of our audit, we have neither
come across nor have we been informed of any continuing failure to
correct major weaknesses in internal control system.
5. In our opinion and according to the information and explanation
given to us, the Company has complied with the provision of section 73
to 76 of the Companies Act, 2013 and the Companies Rules (Acceptance of
Deposit) Rules, 2014 with regard to the deposit accepted from the
public. Accordingly, there have been no proceedings before the Company
Law Board or National Company Law Tribunal or Reserve Bank of India or
any court or any other tribunal in this matter and no order has been
passed by any of the aforesaid authorities.
6. The provision of Cost Audit prescribed by the Central Government,
under Section 148 of the Companies Act, 2013 are applicable to the
company. However, company has maintained the books of accounts pursuant
to the rules prescribed by the Central Government for maintenance of
cost records under Section 148 of the Act in respect of the product
sold by the Company and are of the opinion that prima facie, the
prescribed accounts and records have been made and maintained. The
company has obtained compliance report 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, the Company is generally regular in depositing undisputed
statutory dues with appropriate authorities including Provident Fund,
Investor Education and Protection Fund, Employees'' State Insurance,
Income Tax, VAT, Wealth Tax, Service Tax, Custom Duty, Cess and other
material statutory dues applicable to it. According to the information
and explanations given to us, there are no arrears of outstanding
statutory dues as at the last day of the financial 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 amounts payable in respect of Income Tax, Wealth Tax,
Service Tax, VAT, Customs Duty, Excise Duty and Cess were in arrears,
as at 31st March, 2015 for a period of more than six months from the
date they became payable.
However, according to information and explanation given to us, dues of
Custom Duty and Penalty has not been deposited on account of any
dispute is Rs. 1574.64 lacs related to Accounting Year 2011-2012, 2012
2013 and 2013-2014 pending before the Commissioner of Customs.
c) According to the information and explanation given to us, the
amounts which were required to be transferred to investor education and
protection fund in accordance with the relevant provisions of the
Companies Act,1956 (1 of 1956) and rules made thereunder has 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 the audit. However, company has incurred cash losses in
the immediate preceding financial year.
9. Based on our audit procedures and according to the information and
explanations given by management, we are of the opinion that the
Company has not defaulted in repayment of 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 the company has not given any guarantees for loans taken by
others from banks or financial institutions.
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, carried out in accordance with the generally accepted auditing
practices in India and according to the information and explanations
given to us by the management no material fraud on or by the Company
and causing material misstatement to financial statement 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