You are here » Home » Companies » Company Overview » Celebrity Fashions Ltd

Celebrity Fashions Ltd.

BSE: 532695 Sector: Industrials
NSE: CELEBRITY ISIN Code: INE185H01016
BSE 00:00 | 22 Mar 8.94 -0.15
(-1.65%)
OPEN

10.15

HIGH

10.15

LOW

8.70

NSE 00:00 | 22 Mar 9.00 -0.40
(-4.26%)
OPEN

9.40

HIGH

9.50

LOW

9.00

OPEN 10.15
PREVIOUS CLOSE 9.09
VOLUME 3388
52-Week high 19.15
52-Week low 7.63
P/E 6.77
Mkt Cap.(Rs cr) 43
Buy Price 8.72
Buy Qty 500.00
Sell Price 8.94
Sell Qty 2.00
OPEN 10.15
CLOSE 9.09
VOLUME 3388
52-Week high 19.15
52-Week low 7.63
P/E 6.77
Mkt Cap.(Rs cr) 43
Buy Price 8.72
Buy Qty 500.00
Sell Price 8.94
Sell Qty 2.00

Celebrity Fashions Ltd. (CELEBRITY) - Auditors Report

Company auditors report

To the Members of CELEBRITY FASHIONS LIMITED

Report on the Ind AS Financial Statements

We have audited the accompanying Ind AS financial statements drawn in accordance withthe Indian Accounting Standards ("the Financial Statements") of CELEBRITYFASHIONS LIMITED ("the Company") which comprise the Balance sheet as at 31stMarch 2018 the Statement of Profit and Loss (including Other Comprehensive Income)Statement of Changes in Equity and the Statement of Cash Flow for the year ended 31stMarch 2018 and a summary of significant accounting policies and other explanatoryinformation.

Management's Responsibility for the Ind AS 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 Ind AS financial statements that give a true and fair view of the financialposition financial performance (including Other Comprehensive Income) Changes in Equityand cash flows of the Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting Standards specified under Section 133of the Act read with Rule 7 of the Companies (Account) Rules 2014. This responsibilityalso includes maintenance of adequate accounting records in accordance with the provisionsof the Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation 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 Ind AS financial statementsthat give a true and fair view and are free from material misstatement whether due tofraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these Ind AS financial statements basedon our audit.

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 Ind AS financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Ind AS financial statements. The procedures selected depend on theauditor's judgement including the assessment of the risks of material misstatement of theInd AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the Ind AS financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company's Directors as well as evaluating theoverall presentation of the Ind AS financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India including the Indian AccountingStandards of the state of affairs (financial position) of the Company as at 31st March2018 its Loss (financial performance including Other Comprehensive Income) Changes inEquity and its Cash Flows for the year ended on 31st March 2018.

Emphasis of Matter

We draw attention to Note No. 33 of the Ind AS financial statements which disclosesthat as at the date of the Balance Sheet the Company has significant accumulated losses.We have evaluated the appropriateness of the ‘going concern' concept in accordancewith SA-570 based on such evaluation in our opinion and on the basis of the informationand explanations given to us we report that we have obtained sufficient evidence toestablish the continuance of the Company as a going concern. The Ind AS financialstatements of the Company have been prepared on a going concern basis for the reasonsstated in the said Note. Our opinion is not modified in respect of this matter.

Other Matters

The comparative financial information of the Company for the year ended March 31 2017and the transition date opening balance sheet as at 1st April 2016 included in these IndAS financial statements are based on the previously issued statutory financial statementsprepared in accordance with Accounting Standards prescribed under Section 133 of the Actread with Rule 7

of the Companies (Accounts) Rules 2014 (as amended) and other accounting principlesgenerally accepted in India jointly audited by CNGSN & Associates LLP CharteredAccountants and Anil Nair & Associates Chartered Accountants the predecessorauditors whose report for the year ended March 31 2016 and March 31 2017 dated 30thMay 2016 and 26th May 2017 respectively expressed an unmodified opinion onthose standalone financial statements as adjusted for the differences in the accountingprinciples adopted by the Company on transition to the Ind AS which have been audited byus.

Our opinion is not modified in respect of these 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 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 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 Statement of Cash Flowand Statement of Changes in Equity dealt with by this Report are in agreement with thebooks of accounts.

d) In our opinion the aforesaid Ind AS financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Account) Rules 2014.

e) On the basis of the written representations received from the directors as on 31stMarch 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 from being appointed as a director in terms of Section164 (2) of the Act.

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".

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 Ind AS financial statements- Refer Note 38(c )

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.

iv) The reporting on disclosures relating to Specified Bank Notes is not applicable tothe Company for the year ended March 31 2018.

For SRSV & Associates Chartered Accountants FR. No. 015041S V. Rajeswaran

Date : 28th May 2018 Partner

Place: Chennai Membership No. 020881

Annexure A to the Independent Auditor's Report

Referred to in Paragraph 1 of Report on Other Legal and Regulatory Requirements

of our Report of even date to the Ind AS Financial Statements of the Company for the

year ended 31st March 2018:

i. Fixed Assets

a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b) As explained to us all the fixed assets have been physically verified by themanagement in a phased periodical manner which in our opinion is reasonable havingregard to the size of the Company and nature of its assets. According to the informationand explanations given to us no material discrepancies were noticed on such physicalverification.

c) According to the information and explanation given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties of theCompany are held in the name of the Company.

ii. Physical verification of inventory has been conducted at reasonable intervals bythe management and no material discrepancies were noticed on such verification.

iii. In our opinion and according to the information and explanations given to us thecompany has not granted loans to parties covered in the register maintained under section189 of the Companies Act. Accordingly reporting under this clause does not arise.

iv. 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 loans investments guarantees and security.

v. The Company has not accepted any deposits from the public and hence the directivesissued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any otherrelevant provisions of the Act and the Companies (Acceptance of Deposit) Rules 2015 withregard to the deposits accepted from the public are not applicable.

vi. The Central Government has not prescribed the maintenance of cost records undersection 148 (1) of the Companies Act 2013. Accordingly clause vi of paragraph 3 ofCompanies (Auditors Report) Order 2016 is not applicable.

vii. Undisputed and disputed taxes and duties

a) According to the records of the Company and information and explanations given tous the company is regular in depositing undisputed statutory dues including providentfund employees' state insurance income-tax sales-tax wealth tax service tax duty ofcustoms duty of excise value added tax Goods and service tax cess and any otherstatutory dues with the appropriate authorities. There are no undisputed statutory duesoutstanding for more than six months.

b) As at 31st March 2018 according to the records of the Company the following are theparticulars of the disputed dues on account of sales tax income tax customs duty wealthtax service tax and cess which have not been deposited on account of dispute:

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
Total

2903868

* Relating to Income Tax dues of Partnership Firm Celebrity Connections

viii. 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 or borrowings to a financial institution bank Government or debentureholders.

ix. In our opinion term loans have been applied for the purposes for which they wereraised. During the year the company has not raised money by way of initial public offeror further public offer. The Company has not issued any debentures during the year

x. In our opinion and according to the information and explanations given to us nofraud on or by the Company by its officers or employees has been noticed or reportedduring the year.

xi In our opinion and according to the information and explanations given to usmanagerial remuneration has been provided in accordance with the requisite approvalsmandated by Section 197 read with Schedule V of the Companies Act 2013.

xii. In our opinion the Company is not a Nidhi Company. Accordingly clause xii ofPara 3 of Companies (Auditors Report) Order 2016 is not applicable.

xiii. In our opinion and according to the information and explanation given to us alltransactions with the related parties are in compliance with sections 177 and 188 ofCompanies Act 2013 where applicable and the details have been disclosed in the Ind ASFinancial Statements as required by the applicable accounting standards.

xiv. According to the information and explanations given to us the Company has notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year except allotment of equity shares on conversion ofconvertible warrants as stated in note no. 13 in respect of which requirement of section42 of the Act have been complied with and the amountraised has been used for the purposefor which the funds were raised.

xv. In our opinion and according to the information and explanations given to us theCompany has not entered into any non - cash transactions with directors or personsconnected with the Directors. Accordingly clause xv of Para 3 of Companies (AuditorsReport) Order 2016 is not applicable.

xvi. In our opinion and according to the information and explanations given to us theCompany is not required to be registered under Section 45-lA of the Reserve Bank of IndiaAct 1934. Accordingly clause xvi of Para 3 of Companies (Auditors Report) Order 2016 isnot applicable.

For SRSV & Associates Chartered Accountants FR. No. 015041S V. Rajeswaran

Date : 28th May 2018 Partner

Place: Chennai Membership No. 020881

Annexure B to the Independent Auditor's 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 2018 in conjunction with ouraudit of the Ind AS 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Auditors' 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 applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

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 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 2018 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 SRSV & Associates Chartered Accountants FR. No. 015041S V. Rajeswaran

Date : 28th May 2018 Partner

Place: Chennai Membership No. 020881