INANNA FASHION AND TRENDS LIMITED
(Formally known as M/s. FRONTLINE BUSINESS SOLUTIONS LIMITED)
Report on the Financial Statements
We have audited the accompanying financial statements of INANNA FASHION AND TRENDSLIMITED (Formally known as M/s. FRONTLINE BUSINESS SOLUTIONS LIMITED) ("theCompany") which comprise the Balance Sheet as at March 31 2015 the Statement ofProfit and Loss and Cash Flow Statement for the year then ended and a summary ofsignificant 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 preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.
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 ethical requirements and plan and performthe audit to obtain reasonable assurance about whether the financial statements are freefrom material misstatements.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. 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 evaluating theoverall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.
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 2015 and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors' Report) Order 2015("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give in theannexure 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 bestof 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 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 2015 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2015 from being appointed as a director in terms of Section 164 (2) of theAct;
f) 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 does not have any pending litigations which would impact its financialposition.
ii) The Company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses :
iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
FOR P. C. BARADIYA & CO.
CHARTERED ACCOUNTANTS FIRM REGN. NO. 101017W
K.C. KANKARIYA PARTNER
MEMBERSHIP NO: 43951
Annexure to Independent Auditor's Report
(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirements'section of our report of even date)
(i) In respect of its fixed assets :
a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
b) The Company has a programme of physical verification of all its fixed assets in aphased manner which in our opinion is reasonable having regard to the size of theCompany and the nature of its assets. In accordance with such a programme certain fixedassets were physically verified by the management during the year. According to theinformation and explanation given to us no material discrepancies were noticed on suchverification.
(ii) In respect of its inventories :
a) As explained to us the inventories were physically verified during the year by theManagement at 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 werereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.
c) In our opinion and according to the information and explanations given to us theCompany has maintained proper records of its inventories and no material discrepancieswere observed during the course of physical verification.
(iii) The Company has granted interest free unsecured loans to four parties covered inthe register maintained under Section 189 of the Companies Act 2013. The maximum amountoutstanding during the year and year end balance of such loan aggregate to Rs. 2.04 Croreand Rs. 0.57 crore respectively. Since the loans are repayable on demand the question ofoverdue amount does not arise.
(iv) There is an adequate internal control system commensurate with the size of theCompany and the nature of its business with regard to purchases of inventory and fixedassets and the sale of goods and services. During the course of our audit we have notobserved any major weakness in such internal control system.
(v) According to the information and explanations given to us the Company has notaccepted any deposit from the public as per directives issued by the Reserve Bank of Indiaand the provisions of section 73 to 76 or any other relevant section of the Companies Actand the rules framed thereunder.
(vi) The Central Government has not prescribed the maintenance of cost records undersection 148(1) of the Act for any of the services rendered by the Company.
(vii) According to the information and explanations given to us in respect of statutorydues ;
a) The Company has generally been regular in depositing undisputed statutory duesincluding provident fund employees' state insurance income-tax sales tax wealth taxservice tax customs duty excise duty value added tax cess and any other statutory dueswith the appropriate authorities.
b) There were no undisputed amount payable in respect of Provident fund Employees'State Insurance Income tax Sales tax Service tax and any other material statutory duesin arrears as at March 31 2015 for a period of more than six months from the date theybecome payable.
c) Details of Sales tax dues which have not been deposited as on March 312015 onaccount of dispute are given below:
|Name of Statue ||Nature of dues ||Amount ||Period ||Forum where dispute is pending Appeal |
|JCCI ||Penalty ||534523/- ||1991-92 ||Appeal |
|Sales tax ||Assessment due ||647571/- ||1996-97 ||Appeal |
d) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
(viii) The Company has accumulated losses at the end of the financial year. However ithas not incurred cash losses during the financial year under report and immediatelypreceding financial year.
(ix) In our opinion and according to the information and explanations given to us theCompany does not have any borrowing from any bank financial institutions and debentureholders.
(x) In our opinion and according to the information and explanations given to us theCompany has not given any guarantees for loans taken by others from banks and financialinstitutions.
(xi) In our opinion and according to the information and explanations given to us theCompany has not taken term loans during the year.
(xii) To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the Company and no material fraud on the Company has been noticedor reported during the year.
FOR P. C. BARADIYA & CO.
FIRM REGN. NO. 101017W
MEMBERSHIP NO: 43951