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Celebrity Fashions Ltd.

BSE: 532695 Sector: Industrials
NSE: CELEBRITY ISIN Code: INE185H01016
BSE 00:00 | 20 Jul 11.60 -0.33
(-2.77%)
OPEN

11.60

HIGH

11.60

LOW

11.60

NSE 00:00 | 20 Jul 11.75 -0.20
(-1.67%)
OPEN

11.85

HIGH

12.00

LOW

11.15

OPEN 11.60
PREVIOUS CLOSE 11.93
VOLUME 120
52-Week high 26.74
52-Week low 11.50
P/E
Mkt Cap.(Rs cr) 53
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 11.60
CLOSE 11.93
VOLUME 120
52-Week high 26.74
52-Week low 11.50
P/E
Mkt Cap.(Rs cr) 53
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 ("theCompany") which comprises the Balance sheet as at March 31 2017 the Statement ofProfit and Loss and the Cash Flow Statement for the year 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.

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 and the Rules made thereunderincluding the accounting standards and matters which required to be in the audit report.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. And other applicable authoritative pronouncements issued bythe Institute of Chartered Accountants of India. Those Standards and pronouncementsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the Financial Statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the Financial Statements. The procedures selected depend on the auditor'sjudgement including the assessment of the risks of material misstatements of theFinancial Statements whether due to fraud or error. In making those risk assessments theauditor considers 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. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by the Company's directors as well as evaluating the overall presentationof 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 of the state of affairs of the Company as at March31 2017 and its profitsand its cash flows for the year ended on that date.

EMPHASIS OF MATTER

We draw attention to Note No. 27 of the Financial Statements which discloses that as atthe date of the Balance Sheet of 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. Ouropinion is not qualified in respect of this matter.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act (here in after referred to as the "Order")and on the basis of suchchecks of the books and records of the Company as we considered appropriate and accordingto the information and explanations given to us we give in Annexure B a statement on thematters specified in paragraphs 3 and 4 of the Order.

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 2017 and taken on record by the Board of Directors none of the directors aredisqualified as on March 31 2017 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 A'; 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 knowledge and belief and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on as at March 31 2017on its financial position in its Financial Statements as referred to in Note 34(c) to theFinancial Statements;

ii. The Company did not have any long-term contracts including derivative contracts asat March 31 2017; iii. There were no amounts required to be transferred to the InvestorEducation and Protection Fund by the Company for the year ended March 31 2017

iv. The Company has provided requisite disclosures in the Financial Statements as toholdings as well as dealings in Specified Bank Notes during the period from 8th November2016 to 30th December 2016.Based on audit procedures and relying on the managementrepresentation we report that the disclosures are in accordance with books of accountmaintained by the Company and as produced to us by the Management (Refer Note 42).

For A NIL NAIR & ASSOCIATES For CNGSN & ASSOCIATES LLP
Chartered Accountants Chartered Accountants
ICAI Firm Registration Number 000175S ICAI Firm Registration Number 004915S /S200036
G. ANIL C.N. GANGADARAN
Partner Partner
Membership Number 022450 Membership Number 011205
Place : Chennai
Date : May 26 2017

ANNEXURE A

TO THE INDEPENDENT AUDITORS' REPORT ON THE FINANCIAL STATEMENTS OF CELEBRITY FASHIONSLIMITED

(Referred to in paragraph 12(f) of the Independent Auditors' Report of even date to themembers of Celebrity Fashions Limited on the Financial Statements for the yearended March 312017)

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 2017 in conjunction withour audit 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

Reporting issued by the Institute of Chartered Accountants of India (‘ICAI').These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to Company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the CompaniesAct 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 judgment 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 controls systemover financial reporting.

MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

A Company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of Financial Statements for external purposes in accordance with generallyaccepted accounting principles. A Company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the Company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of Financial Statements inaccordance with generally accepted accounting principles and that receipts andexpenditures 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 material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2017 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 A NIL NAIR & ASSOCIATES For CNGSN & ASSOCIATES LLP
Chartered Accountants Chartered Accountants
ICAI Firm Registration Number 000175S ICAI Firm Registration Number 004915S /S200036
G. ANIL C.N. GANGADARAN
Partner Partner
Membership Number 022450 Membership Number 011205
Place : Chennai
Date : May 26 2017

ANNEXURE - B

TO THE INDEPENDENT AUDITORS' REPORT ON THE FINANCIALSTATEMENTS OF CELEBRITY FASHIONSLIMITED

The Annexure referred to in our Independent Auditors' Report to the members of the CelebrityFashions Limited on the Financial Statements for the year ended March 31 2017 wereport that:

1. In respect of its Fixed Assets: a. On the basis of available information we reportthat the Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets. b. As explained to us the Company hasa regular programme of physical verification of its fixed assets by which fixed assets areverified in a periodical manner designed to cover all the items over a period of threeyears. In accordance with this programme certain fixed assets were verified during theyear and no discrepancies were noticed on such verification. In our opinion thisperiodicity of physical verification is reasonable having regard to the size of theCompany and nature of its assets. c. According to the information and explanations givento us and on the basis of our examination of the records of the Company the title deedsof immovable properties are held in the name of the Company.

2. In respect of its Inventories:

In our opinion the inventories have been physically verified during the year by themanagement at reasonable intervals and as explained to us no material discrepancies werenoticed on physical verification.

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 Companies Act 2013in respect of grant of loans making investments and providing guarantees and securities.

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 givento us and on the basis of our examination of the records of the Company amountsdeducted/ accrued in the books of account in respect of undisputed statutory duesincluding provident fund employees state insurance scheme income tax duty of customsduty of excise value added tax cess and other material statutory dues as applicablehave been regularly deposited during the year by the Company with the appropriateauthorities.

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 2017 for a period of more than six months from the date theybecame payable.

b. According to the information and explanations given to us the following dues ofIncome Tax and Fringe Benefit Tax have not been deposited by the Company on account ofDisputes: -

Name of the Statue Nature of Dues Assessment Year to which the amount relates Forum where the dispute is pending Amount
(in`)
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
Total 2903868

* 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 year.

11. In our opinion and according to the information and explanations given to us andbased on our examination of the records of the Company during the year the Company haspaid / provided Managerial Remuneration in accordance with the requisite approvalsmandated by the provisions of Section 197 read with Schedule V to the Companies Act 2013.12. 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. In our opinion and according to the information and explanations given to us andbased on our examination of the records of the Company transactions with its relatedparties are in compliance with Sections 177 and 188 of the Act where applicable anddetails of such transactions have been disclosed in the Financial Statements as requiredby the applicable Accounting Standards.

14. During the year the company has made preferential allotment of shares. In respectof the same in our opinion the company has complied with the requirements of the section42 of the Act and the rules framed there under. Further in our opinion the amount soraised have been used for the purposes for which the funds were raised.

15. In our opinion and according to the information and explanation given to us duringthe year the company has not entered into any non-cash transactions with its directors orpersons connected with him and hence reporting under clause (xv) of paragraph 3 of theorder is not applicable to the company.

16. In our opinion and according to the information and explanation given to us theCompany is not required to be registered under Section 45-IA of the Reserve Bank of IndiaAct 1934.

For ANIL NAIR & ASSOCIATES For CNGSN & ASSOCIATES LLP
Chartered Accountants Chartered Accountants
ICAI Firm Registration Number 000175S ICAI Firm Registration Number 004915S /S200036
G. ANIL C.N. GANGADARAN
Partner Partner
Membership Number 022450 Membership Number 011205
Place : Chennai
Date : May 26 2017