| We have audited the accompanying financial statements of GRAPHIC CHARTS
LIMITED which comprise the balance sheet as at 31 March 2015, the
statement of Profit and Loss and the 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 Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position of the Company in accordance with the Accounting Standards
specified under section 133 of the Act, read with rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility includes the
design, implementation and maintenance of internal control 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.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. 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
control relevant to the Company's preparation and fair presentation of
the financial statements in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by management, 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.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the 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 31 March 2015; and
b) In the case of the statement of Profit and Loss, of the loss for the
year ended on that date.
c) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
1. The Company is having accumulated losses of Rs.73,26,262/- as at
31st March, 2015. The company's net worth is eroded. This raises a
doubt that the company will be able to continue as a going concern.
2. 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, 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 given to
us during the course of the audit, we give in the Annexure a statement
on the matters specified in paragraphs 3 and 4 of the Order.
3. As required by sub-section (3) of section 143 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 appears from our examination of those
books.
c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under section 133 of the Act, read with
rule 7 of the Companies (Accounts) Rules, 2014. e) On the basis of
written representations received from the directors, 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 Act.ss
ANNEXURE TO THE AUDITOR'S REPORT OF EVEN DATE
(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory
Requirements' section of our report to the members of Graphic Charts
Limited (the Company))
On the basis of such checks as we considered appropriate and in terms
of the information and explanations given to us, we state that:-
1. a) The Company has maintained proper records showing full
particulars including quantitative details and situation of Fixed
Assets.
b) As explained to us, the management at reasonable intervals, in a
phased verification- program has physically verified fixed assets. In
our opinion, the frequency of verification is reasonable having regard
to the size of the company, and the nature of its assets. The
discrepancies reported on such verification were not material and have
been properly dealt with in the books of account.
c) The Company has not disposed off any fixed assets during the year.
2. a) The management has conducted physical verification of inventory
at reasonable intervals.
b) In our opinion, the procedures followed by the management for
physical verification of inventory are reasonable and adequate in
relation to the size of the Company and nature of its business.
c) In our opinion, the company is maintaining proper records of
inventory. The discrepancies noticed on physical verification of
inventories as compared to the book records were not material and the
same have been properly dealt with in the books of account.
3. According to the information and explanations given to us, the
Company has not granted any loan, secured or unsecured from / to
companies, firms or other parties listed in the register maintained
under Section 301 of the Companies Act 1956. The Company has taken
demand loans from its Directors which are interest free.
4. In our opinion to the information and explanations given to us,
there is an adequate internal control system commensurate with the size
of the Company and the nature of its business with regard to the
purchase of inventory, fixed assets and for sale of goods and services.
In our opinion, and according to the information and explanations given
to us, there is no continuing failure to correct major weaknesses in
the internal control system.
5. In our opinion and according to the information and explanations
given to us, there are no contracts and arrangements the particulars of
which need to be entered into the register maintained under section 301
of the Companies Act, 1956.
6. The Company has not accepted any deposit in contravention of the
provisions of Section 58A and 58AA and other provisions of the
Companies Act, and it's Rules, and also 2 the directives of Reserve
Bank of India with regard to acceptance of deposits from the public.
7. The Company does not have an Internal Audit system.
8. As informed to us, the Central Government has not prescribed the
maintenance of cost records under Section 209(1) (d) of the Companies
Act, 1956 in respect of the Company's products.
9. (a) According to the records of the Company and explanation given
to us, there are certain statutory dues which are in arrears for a
period of more than six months as on the Balance Sheet date.
Sr. Name of Statute Nature of dues Due from
No.
1. Sales Tax Act Sales Tax F.Y. 2000-2001
2. Income Tax Act TDS on Professional F.Y. 2000-2001
Fees
3. Income Tax Act TDS on Salary F.Y 2000-2001
Sr. Name of Statute Amount (Rs.)
No.
1. Sales Tax Act 1,61,466
2. Income Tax Act 4,974
3. Income Tax Act 63,477
However, the detailed working & particulars are not available on
records with company.
(b) There was no disputed amount payable in respect of Income Tax,
Wealth Tax, Service Tax and Custom Duty except for 76,333 /- pertaining
to Sales Tax pending in appeal before Commissioner of Sales Tax for the
financial year 1995-96.
10. The Company has accumulated losses of Rs.73,26,262/- as at the end
of the financial year, and incurred cash losses in the financial year
under the report and cash loss in the immediately preceding financial
year.
11. Based on the information and explanations given by the management,
and as reflected in the books, the Company has not taken any loan from
any financial institution or bank.
12. As explained to us, the Company has not granted any loans or
advances on the basis of security by way of pledge of shares,
debentures or any other securities.
13. In our opinion, the provisions of any Special Statute applicable
to Chit Fund, Nidhi or Mutual Fund/ Schemes are not applicable to the
Company.
14. According to the information and explanations given to us, the
Company is not a dealer or trader in securities.
15. According to the information and explanations given to us, and the
representations made by the management, the Company has not given any
guarantees for loans taken by others from any bank or financial
institution.
16. According to the information and explanations given to us, and as
per the books of account the company has not taken any term loan during
the year.
17. The Company has not borrowed any funds, hence comments for
utilization of long term funds for short term uses and vice versa does
not arise.
18. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act of the Companies Act, 1956.
19. During the year the company has not issued any debentures.
20. The Company has not raised any money by public issue, during the
year.
21. According to the information and explanations given to us, and to
the best of our knowledge and belief, no fraud on or by the Company,
has been noticed or reported during the year under audit.
FOR ASJ & Company LLP
CHARTERED ACCOUNTANTS
FRN: 133292W
CA. SHARED KUMAR PATEL
PARTNER
Membership No: 047570
Place : Mumbai
Date : 7th Sept. 2015
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