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Celebrity Fashions Ltd.

BSE: 532695 Sector: Industrials
NSE: CELEBRITY ISIN Code: INE185H01016
BSE LIVE 15:40 | 22 Mar 14.57 -0.56
(-3.70%)
OPEN

14.76

HIGH

15.08

LOW

14.50

NSE LIVE 15:50 | 22 Mar 14.55 -0.45
(-3.00%)
OPEN

14.90

HIGH

15.10

LOW

14.40

OPEN 14.76
PREVIOUS CLOSE 15.13
VOLUME 41329
52-Week high 16.29
52-Week low 7.79
P/E
Mkt Cap.(Rs cr) 61.30
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 14.76
CLOSE 15.13
VOLUME 41329
52-Week high 16.29
52-Week low 7.79
P/E
Mkt Cap.(Rs cr) 61.30
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Celebrity Fashions Ltd. (CELEBRITY) - Auditors Report

Company auditors report

TO THE MEMBERS OF

CELEBRITY FASHIONS LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of Celebrity Fashions Limited("the Company") which comprise the Balance sheet as at March 31 2016 theStatement of Profit and Loss and the Cash Flow Statement for the year ended and a summaryof 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 Section134(5) of the Companies Act 2013 (‘the Act’) with respect to the preparationand presentation of these Financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgements and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial . statements are free from material misstatement

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on theauditor’s judgement including the assessment of the risks of material misstatementsof the financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to theCompany’s preparation of the financial statements that give a true and fair view inorder to design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by the Company’s directors as well as evaluatingthe overall presentation of financial statements. We believe that the audit evidence wehave obtained is sufficient and appropriate to provide a basis for our audit opinion onthe financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at March31 2016 and its profits and its cash flows for the year ended on

Emphasis of Matter

We draw attention to Note No. 25 of the Financial Statements which discloses that as atthe date of the Balance Sheet the Company has significant accumulated losses. We haveevaluated the appropriateness of the ‘going concern’ concept in accordance withSA-570 based on such evaluation in our opinion and on the basis of the information andexplanations given to us we report that we have obtained sufficient evidence to establishthe continuance of the Company as a going concern. The financial statements of the Companyhave been prepared on a going concern basis for the reasons stated in the said Note.

Report on Other Legal and Regulatory Requirements

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

2. As required by section 143(3) of the Companies Act 2013 we report that:

a. we have sought and obtained all the information and explanations which to the bestof 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 theCompany so far as it appears from our examination of those books;

c. 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;

d. in our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014;

e. on the basis of the written representations received from the directors as on March31 2016 and taken on record by the Board of Directors none of the directors aredisqualified as on March 31 2016 from being appointed as a director in terms of Section164(2) of the Act; and

f. with respect to the adequacy of the internal financial controls over financialreporting of the company and the operating effectiveness of such controls refer to ourseparate report in ‘Annexure B’; and

g. 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 as referred to in Note 28(c) to the financialstatements.

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

iii. There were no amounts which were required to be transferred to the

Investor Education and Protection Fund by the Company.

for ANIL NAIR & ASSOCIATES for CNGSN & ASSOCIATES LLP
Chartered Accountants Chartered Accountants
Firm Registration Number 000175S Firm Registration Number 004915S /S200036
G. ANIL C.N. GANGADARAN
Partner Partner
Membership Number 22450 Membership Number 11205
Place : Chennai
Date : May 30 2016

ANNEXURE-A TO THE AUDITORS’ REPORT

The Annexure referred to in our Independent Auditors’ Report to the members of theCompany on the financial statements for the year ended March 31 2016 we report that:

1. In respect of its Fixed Assets:

a. On the basis of available information we report that the Company has maintainedproper records showing full particulars including quantitative details and situation offixed assets.

b. As explained to us the Company has a regular programme of physical verification ofits fixed assets by which fixed assets are verified in a phased periodical manner designedto cover all the items over a period of three years. In accordance with this programmecertain fixed assets were verified during the year and no discrepancies were noticed onsuch verification. In our opinion this periodicity of physical verification is reasonablehaving regard to the size of the Company and nature of its assets.

c. According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

2. In respect of its inventories :

a. As explained to us the inventories of the Company have been physically verifiedduring the year by the management at the reasonable intervals.

b. In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventories followed by the management arereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.

c. According to the information and explanations given to us the Company hasmaintained proper records of inventories and no material discrepancies were noticed onphysical verification of inventories as compared with book records.

3. The Company has not granted any loans secured or unsecured to companies firmslimited liability partnerships or other parties covered in the register maintained underSection 189 of the Companies Act 2013. Therefore in our opinion the provisions ofclause(iii) (a) (b) and (c) of paragraph 3 of the said Order are not applicable to theCompany.

4. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Section 185 and 186 of the Act with respectto the loans and investments made.

5. According to the information and explanations given to us the Company has notaccepted any deposits from the public. Therefore in our opinion the provisions of Clause(v) of paragraph 3 of the Order (as amended) are not applicable to the Company.

6. To the best of our knowledge and as explained to us the Central Government has notprescribed the maintenance of cost records under Section 148(1) of the Companies Act 2013for any of the products/services manufactured/rendered by the Company.

7. In respect of statutory dues:

a. According to the information and explanations given to us and on the basis of ourexamination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including provident fund employees stateinsurance scheme income tax duty of customs duty of excise value added tax cess andother material statutory dues as applicable have been regularly deposited during the yearby the Company with the appropriate authorities.

According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees state insurance scheme income tax dutyof customs duty of excise value added tax cess and other material statutory dues werein arrears as at March 31 2016 for a period of more than six months from the date theybecame payable. b. According to the information and explanations given to us thefollowing dues of Income Tax and Fringe Benefit Tax have not been deposited by the Companyon account of disputes:-

Name of the Statue Nature of Dues Assessment year to which the amount relates Forum Where the dispute is pending Amount
(in Rs.)
Income Tax Act1961 Income Tax 2003-2004 Pending before the Assessing Officer 526669*
Income Tax Act1961 Income Tax 2004-2005 Pending before the Assessing Officer 961087*
Income Tax Act1961 Fringe Benefit Tax 2007-2008 Pending for rectification before the Assessing Officer 699860
Income Tax Act1961 Fringe Benefit Tax 2008-2009 Pending for rectification before the Assessing Officer 601600
Income Tax Act1961 Income Tax 2011-2012 Pending for rectification before the Assessing Officer and appeal before the Commissioner of Income Tax Appeals Chennai 114652
Income Tax Act1961 Income Tax 2012-13 Pending for appeal before the Commissioner of Income Tax Appeals Chennai 5028975
Total 7932843

* Relating to Income Tax dues of partnership firm Celebrity Connections

8. Based on our audit procedures and according to the information and explanationsgiven to us by the management we are of the opinion that the Company has not defaulted inrepayment of loans and borrowings to a financial institution bank or government. Thecompany has not issued any debentures.

9. According to the information and explanations given to us the Company did not raiseany money by way of initial public offer or further public offer (including debtinstruments). The term loans raised in our opinion have been applied by the Company forthe purposes for which they were obtained.

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 during the year the Company has not paid anyManagerial Remuneration. Accordingly in our opinion paragraph 3(xi) of the Order is notapplicable.

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 notapplicable.

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 given 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.

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- cashtransaction with the 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 ANIL NAIR & ASSOCIATES for CNGSN & ASSOCIATES LLP
Chartered Accountants Chartered Accountants
Firm Registration Number 000175S Firm Registration Number 004915S /S200036
G. ANIL C.N. GANGADARAN
Partner Partner
Membership Number 22450 Membership Number 11205
Place : Chennai
Date : May 30 2016

ANNEXURE – B TO THE AUDITORS’ REPORT

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 CelebrityFashions Limited ("the Company") as of March 31 2016 in conjunction with ouraudit of the financial statements of the Company for the year ended on that date.

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 safeguardingof its 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.

Auditor’s 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 issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of Internal Financial Controls both issued by the Institute ofChartered Accountants of India. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operate effectively in all materialrespects.

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 judgement 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 controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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.

Opinion

In our opinion the Company has in all materials respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2016 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 ANIL NAIR & ASSOCIATES for CNGSN & ASSOCIATES LLP
Chartered Accountants Chartered Accountants
Firm Registration Number 000175S Firm Registration Number 004915S /S200036
G. ANIL C.N. GANGADARAN
Partner Partner
Membership Number 22450 Membership Number 11205
Place : Chennai
Date : May 30 2016