We have audited the accompanying standalone financial statements of
Chromatic India Limited (the Company), which comprise the Balance
Sheet as at March 31, 2015, and 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 and presentation of these standalone 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 Act, 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 standalone
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 there under.
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 the 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 statements 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 the accounting policies used and the reasonableness
of the accounting estimates made by the 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 standalone
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements,
subject to note nos. 27, 28, 29, 30 & 35 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 Standalone Balance Sheet, of the state of
affairs of the Company as at March 31, 2015;
(b) In the case of the Standalone Statement of Profit and Loss, of the
Profit of the company for the year ended on that date and
(c) In the case of the Standalone Cash Flow Statement, of the cash
flows of the company 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 the paragraph 3 and 4 of the
Order, to the extent applicable.
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
purposes 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
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 aforesaid standalone financial statements comply
with the Accounting Standards specified under Section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules, 2014; and
e) on the basis of the written representations received from the
directors as on 31 March 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31 March 2015
from being appointed as a director in terms of Section 164 (2) of the
f) With respect to the other matters to be included in the 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:
(i) The Company has disclosed the impact of pending litigations on its
financial position in its financial statements.
(ii) The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
and as required on long-term contracts including derivative contracts.
(iii) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Annexure to Auditors'' Report
The Annexure referred to in our Independent Auditors'' Report to the
members of Chromatic India Limited on the standalone financial
statements for the year ended March 31, 2015, we report that:
1. In respect of its Fixed Assets:
a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets on the
basis of available information.
b) As explained to us, all the fixed assets have been physically
verified by the management in a phased periodical manner, which in our
opinion, is reasonable having regard to the size of the Company and the
nature of its assets. As informed, no material discrepancies were
noticed on such verification.
2. In respect of Inventories:
a) The inventories have been physically verified by the management
during the year. In our Opinion, the frequency of verification is
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 has maintained proper records of inventory. As explained
to us, there were no material discrepancies noticed on physical
verification of inventories as compared to the book records.
3. In respect of the Loans, secured or unsecured, granted by the
company to companies, firms or other parties covered in the register
maintained under section 189 of the Companies Act, 2013 (''the Act'')
there is no overdue amount of loan granted to said companies.
4. In our opinion and according to the information and explanations
given to us, there exists an adequate internal control system
commensurate with the size of the company and the nature of its
business with regard to purchase of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, no major weakness has been noticed in the internal control
system in respect of these areas. During the course of our audit, we
have not observed any continuing failure to correct major weakness in
internal control system of the company.
5. According to the information and explanations given to us, the
company has not accepted any deposits from the public.
6. The Company is required to maintain the cost records as prescribed
by the Central Government of India under sub- section (1) of section
148 of the Companies Act for the activities carried on by the company.
We are of the opinion that primafacie the prescribed records have been
maintained. We have, however, not made a detailed examination of cost
records with a view to determine whether they are accurate or complete.
7. In respect of statutory dues:
a) Undisputed statutory dues including provident fund, investor
education and protection fund, Employees'' state insurance, income-tax,
sales-tax, wealth-tax, customs duty, excise duty, have not been
regularly deposited with the appropriate authorities and there have
been slight delays in few cases.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees'' state insurance, wealth-tax,
sales-tax, customs duty, excise duty and other undisputed statutory
dues were outstanding, at the year end, for a period of more than six
months from the date they became payable except an amount of Rs.
20,79,000/- on account of Income Tax for the A.Y. 2012-13 for which
return is also not filed, Rs. 2,30,510/- on account of Dividend
Distribution Tax for the F.Y. 2012- 13 and interest thereon.
c) According to the information and explanations given to us the
amounts which were required to be transferred to the investor education
and protection fund in accordance with the relevant provisions of the
Companies Act, 2013 and rules there under has been transferred to such
fund within time.
8. The Company has no accumulated losses at the end of the financial.
9. Based on our audit procedures and as per the information and
explanations given by the Management, we are of the opinion that the
Company has not defaulted in repayment of dues to a financial
institution or bank or debenture holders.
10. According to the information and explanations given to us and
based on the documents and records produced to us, the Company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities
11. According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that no funds raised on short-term basis have been used for long-term
12. According to the information and explanations given to us, no
material fraud on or by the Company has been noticed or reported during
the course of our audit.
For S. K. Badjatya & Co.
Firm Registration No. 004017C
CA. Sudhir K. Jain
Place: Mumbai Partner
Date: May 29, 2015 Membership No. 072282