We have audited the attached balance sheet of CHOKSI IMAGING LTD., as
at 31st March 2011, the Profit and Loss account for the year ended on
that date and the Cash Flow Statement for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the Company''s management. Our responsibility is to express an opinion
on these financial statements based on our audit.
1. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidences supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by Management, as well as evaluating the overall financial statements
presentation. We believe that our audit provides a reasonable basis for
2. As required by the Companies (Auditor''s Report) Order, 2003 as
amended by Companies (Auditor''s Report) (Amendment), Order,2004
(together the ''Order'') issued by the Central Government of India in
terms of sub- section (4A) of section 227 of the Companies Act, 1956 of
India (the ''Act), and on the basis of such checks of the books and
records of the Company as we considered appropriate and according to
the information and explanations give to us, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
3. Further to our comments in the Annexure referred to in paragraph
(2) above we report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
b) In our opinion, proper books of account as required by law have been
kept by the company so far as appears from our examination of those
c) The Balance Sheet, the Profit and Loss account and Cash Flow
Statement dealt with by this report are in agreement with the books of
d) In our opinion, the Balance Sheet, Profit and Loss account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956;
e) On the basis of written representations received from the directors,
as on 31st March 2011 and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March 2011 from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956;
f) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements together
with the notes thereon and attached thereto give in the prescribed
manner the information required by the Act and give a true and fair
view in conformity with the accounting principles generally accepted in
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2011;
ii) in the case of the Profit and Loss account, of the profit of the
Company for the year ended on that date; and
iii) in the case of Cash Flow Statement, of the cash flow for the year
ended on that date.
ANNEXURE TO THE AUDITOR''S REPORT (Referred to in paragraph 2 of our
report of even date)
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
(b) All the assets have not been physically verified by the management
during the year but there is a regular programme of verification which,
in our opinion, is reasonable having regard to the size of the company
and the nature of its asset. No material discrepancies were noticed on
(c) During the year, in our opinion, a substantial part of fixed assets
has not been disposed off by the Company.
(ii) (a) The inventory of the Company at work, godown and branches and
with consignment agent has been physically verified during the year by
In our opinion, the frequency of verification is reasonable.
(b) The procedures of physical verification 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 inventory. The
discrepancies noticed on verification between the physical stocks and
the books record were reported to the management and we have been
informed that there is burglary took place during the month of
March,2011 and the stock stolen amounting to Rs.20,96,256/- has been
adjusted in the closing stock of raw material.
(iii) (a) The company has taken loans from the parties listed in the
register maintained under section 301 of the Companies Act,1956. The
maximum amount involved during the year was Rs. 185,957,552/- and the
year end balance of loan taken was Rs. 137,966,853/-.
(b) In our opinion the rate of interest and other terms and conditions
on which loan have been taken from the parties listed in the register
maintained under section 301 of the Companies Act, 1956 are not prima
facie prejudicial to the interest of the company.
(c) There is no stipulation fixed regarding repayment of principal and
(d) There is no overdue amount of the loan taken from the parties
listed in the register maintained u/s.301 of the companies act, 1956.
(iv) In our opinion and according to the information and explanation
given to us, there are adequate internal procedures commensurate with
the size of the company and the nature of its business with regard to
purchase of inventory, fixed assets for sale goods and services. During
the course of our audit, we have not observed any continuing failure to
correct major weakness in internal controls.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the transactions made in pursuance of contracts
or arrangements entered in the registered maintained under section 301
of the Companies Act, 1956 have been so entered.
(b) In our opinion and according to the information and explanations
given to us, transaction made in pursuance of contracts or arrangements
entered in the register maintained under section 301 of the Companies
Act, 1956 and exceeding the value of rupees five lacs in respect of any
party during the year have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time where
such market prices are available.
(vi) In our opinion and according to the information and explanation
given to us, the company has complied with the provision of section
58(A) and 58 (AA) of the Companies Act, 1956 and companies rules
(Acceptance of deposit) Rule, 1975 with regard to the deposit accepted
from the public.
(vii) In our Opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) The provision of Cost Audit prescribed by the Central
Government, u/s 209 (1 )(d) of the Companies Act, 1956 are not
applicable to the company.
(ix) (a) The company is generally been regular in depositing with
appropriate authorities undisputed statutory dues including provident
fund, investor education protection fund, employees'' state insurance,
income tax, sales tax, wealth tax, service tax, custom duty, cess and
other material statutory dues applicable to it.
(b) According to the information and explanation given to us, no
undisputed amounts payable in respect of income tax, wealth tax,
service tax, sales tax, customs duty, excise duty and cess were In
arrears, as at 31st March, 2011 for a period of more than six months
from the date they became payable.
According to the Information and explanation given to us, the disputed
Income tax Rs.980,187/- related to Ass Year 2001 -2002 & matter Is
pending before Bombay High Court, that have not been deposited on
account of disputed matters pending.
(x) The Company does not have any accumulated losses as at 31st March,
2011 and has not Incurred any cash losses In the financial year ended
on that date or In the Immediately preceding financial year.
(xi) Based on our audit procedures and on 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, bank during the year.
(xii) According to the Information and explanation given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities. Therefore,
the provisions of clause 4(xll) of the Companies (Auditor''s Report)
Order, 2003 are not applicable to the Company.
(xiii) In our opinion, the company Is not a chit fund or a nidhi mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor''s Report) Order, 2003 are not applicable to the
(xiv) In our opinion, the Company Is not dealing In or trading In
shares, securities, debentures and other Investments, Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor''s Reports)
Order,2003 are not applicable to the company.
(xv) The company has not given any guarantees for loans taken by others
from banks or financial Institutions.
(xvi) The company has not taken any term loan.
(xvii) According to the Information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, in our
opinion, there are no funds raised on a short term basis which have
been used for long term investment, and vice versa.
(xviii) The company has not made preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Companies Act, 1956 during the year.
(xix) Company has not made any issue of debentures.
(xx) During the period covered by our audit report, the company has not
raised any money by public issues.
(xxi) To the best of our knowledge and belief and according to the
information and explanations given to us by the management no material
found on or by the company and causing material misstatement to
financial statement have been noticed or reported during the course of
our audit except there was burglary amounting to Rs.20,96,256/- during
the year have been committed on the company and the Company has lodged
police complaint and the matter is under investigation.
FOR PARIKH AND AMIN ASSOCIATES
Firm Registration No. 107520W
K. R. PARIKH
Place: Mumbai PARTNER
Date : 30th May, 2011. Membership No. 36517