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Indian Terrain Fashions Ltd.

BSE: 533329 Sector: Industrials
NSE: INDTERRAIN ISIN Code: INE611L01021
BSE LIVE 11:24 | 20 Nov 202.75 6.25
(3.18%)
OPEN

207.00

HIGH

207.00

LOW

201.90

NSE 11:01 | 20 Nov 202.00 2.85
(1.43%)
OPEN

200.00

HIGH

202.00

LOW

197.00

OPEN 207.00
PREVIOUS CLOSE 196.50
VOLUME 22
52-Week high 252.55
52-Week low 129.35
P/E 27.40
Mkt Cap.(Rs cr) 769
Buy Price 201.05
Buy Qty 1.00
Sell Price 203.00
Sell Qty 25.00
OPEN 207.00
CLOSE 196.50
VOLUME 22
52-Week high 252.55
52-Week low 129.35
P/E 27.40
Mkt Cap.(Rs cr) 769
Buy Price 201.05
Buy Qty 1.00
Sell Price 203.00
Sell Qty 25.00

Indian Terrain Fashions Ltd. (INDTERRAIN) - Auditors Report

Company auditors report

To the Members of Indian Terrain Fashions Limited

Report on the Financial Statements

We have audited the accompanying financial statements of Indian Terrain FashionsLimited ("the Company") which comprise the Balance Sheet as at March 312016 Statement of Profit and Loss the Cash Flow Statement for the year then ended and asummary 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 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 specifiedunder Section133 of the Accounting Standards the Act read with Rule 7 of the Companies (Accounts)Rules 2014.

This responsibility also includes maintenance of adequate accounting records inaccordance 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 judgments 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 there under.

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 andthe disclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the Company has in place an adequate internal financialcontrols system over financial reporting and the operating effectiveness of such controls.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by the Company’s Directors aswell as evaluating the overall 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.

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 the state of affairs of the Company as at March31 2016 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 (Auditor’s Report) Order 2016 ("theOrder") as amended issued by the Central Government of India in terms ofsub-section (11) of section 143 of the Companies Act 2013 we give in the Annexure astatement on the matters specified in paragraphs 3 and 4 of the Order to the extentapplicable.

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 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 Statement of Profit and Loss and the Cash Flow Statement dealtwith 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 Note 27(c) to the financial statements;

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 InvestorEducation and Protection Fund by the Company.

for ANIL NAIR & ASSOCIATES for CNGSN & ASSOCIATES LLP
Chartered Accountants Chartered Accountants
ICAI Firm Registration Number 000175S ICAI Firm Registration Number
004915S/S 200036
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 Auditor’s Report to the members ofIndian Terrain Fashions Limited ("the Company") on the financial statements forthe 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 mannerdesigned to cover all the items over a period of three years. In accordance with thisprogramme certain fixed assets were verified during the year and no discrepancies werenoticed on such verification. In our opinion this periodicity of physical verification isreasonable having 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 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 of clause(iii) (a) (b) and (c) of paragraph 3 of the said Order are not applicable to the company.

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 (asamended) are not applicable to the Company.

6. To the best of our knowledge and as explained to us the Central Government of Indiahas not prescribed the maintenance of cost records under Section 148(1) (d) of theCompanies Act 2013 for any of the activities 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 service tax duty of customs duty of excise value addedtax cess and other material statutory dues have been regularly deposited during the yearby the Company with the appropriate authorities. As explained to us the Company did nothave any dues on account of duty of excise.

According to the information and explanations given to us no undisputed amountspayable in respect of provident fund income tax service tax duty of customs duty ofexcise value added tax cess and other material statutory dues were in arrears as at 31March 2016 for a period of more than six months from the date they became payable.

b. According to the information and explanations given to us the following dues ofCENVAT have not been deposited by the company on account of disputes:-

Name of the Statue Nature of Dues Forum Where the dispute is pending Period to which the amount relates Amount (inRs. Lakhs)
Central Excise Act 1944 Excise duty Appellate Tribunal Central Excise & Service Tax Chennai February 2012 to April 2012 47.43
Central Excise Act 1944 Excise duty Appellate Tribunal Central Excise & Service Tax Chennai May 2012 to September 2012 32.18
Central Excise Act 1944 Excise duty Appellate Tribunal Central Excise & Service Tax Chennai October 2012 to January 2013 23.29
Central Excise Act 1944 Excise duty Commissioner Central Excise Chennai February 2013 51.82
Central Excise Act 1944 Excise duty Appellate Tribunal Central Excise & Service Tax Chennai October 2015 42.65
Total 197.37

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 the Company has paid/provided for themanagerial remuneration in accordance with the requisite approvals mandated by theprovisions of Section 197 read with Schedule V to the Act.

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
ICAI Firm Registration Number 000175S ICAI Firm Registration Number
004915S/S 200036
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 Subsection 3 of Section143 of the Companies Act 2013 ("The Act"). We have audited the internalfinancial controls over financial reporting of Indian Terrain Fashions Limited ("theCompany") as of March 31 2016 in conjunction with our audit of the financialstatements 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’). These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to company’s policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under theCompanies 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 have believe that the audit evidence we have obtained is sufficient and appropriateto provide 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
ICAI Firm Registration Number 000175S ICAI Firm Registration Number
004915S/S 200036
G. ANIL C.N. GANGADARAN
Partner Partner
Membership Number 22450 Membership Number 11205
Place: Chennai
Date: May 30 2016