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Future Lifestyle Fashions Ltd.

BSE: 536507 Sector: Industrials
NSE: FLFL ISIN Code: INE452O01016
BSE 00:00 | 18 Mar 463.30 -8.50
(-1.80%)
OPEN

478.00

HIGH

480.60

LOW

460.00

NSE 00:00 | 18 Mar 462.35 -9.50
(-2.01%)
OPEN

476.60

HIGH

481.30

LOW

460.00

OPEN 478.00
PREVIOUS CLOSE 471.80
VOLUME 2543
52-Week high 481.00
52-Week low 358.50
P/E 66.85
Mkt Cap.(Rs cr) 9,014
Buy Price 461.50
Buy Qty 23.00
Sell Price 463.30
Sell Qty 50.00
OPEN 478.00
CLOSE 471.80
VOLUME 2543
52-Week high 481.00
52-Week low 358.50
P/E 66.85
Mkt Cap.(Rs cr) 9,014
Buy Price 461.50
Buy Qty 23.00
Sell Price 463.30
Sell Qty 50.00

Future Lifestyle Fashions Ltd. (FLFL) - Auditors Report

Company auditors report

To the Members of

FUTURE LIFESTYLE FASHIONS LIMITED

REPORT ON THE STANDALONE FINANCIAL STATEMENTS

We have audited the accompanying Standalone financial statements of FUTURE LIFESTYLEFASHIONS LIMITED ("the Company") which comprise the Balance Sheet as atMarch 31 2018 the Statement of Profit and Loss (including other comprehensive income)the Statement of changes in equity and the statement of Cash Flows for the year then endedand summary 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 preparation ofthese Standalone financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income cash flows andchanges in equity of the Company in accordance with the Indian Accounting Standards (IndAS) prescribed under Section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended and other accounting principles generally accepted inIndia.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrol that were operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the Standalonefinancial 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 Standalone financialstatementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provision of the Act and the Rules made there under and the order issued undersection 143(11) of the Act.

We conducted our audit of the Standalone financial statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the Standalone financial statements are free frommaterial misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Standalone financial statements. The procedures selected depend onthe auditor's judgement including the assessment of the risks of material misstatement ofthe Standalone 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 Standalone financial statements that give a true and fair view in orderto 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 Directors as well as evaluating theoverall presentation of the Standalone financial statements.

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

OPINION

In our opinion and to the best of information and according to the explanation given tous the aforesaid Standalone financial statements give the information required by the Actin the manner so required and give true and fair view in conformity with the accountingprinciples generally accepted in of the state of affair of the company as at March 312018 and its profit including other comprehensive income the changes in equity and itscash 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") issued by the Central Government in terms of sub-section (11) of section 143of the Act we give in the Annexure 'A' a statement on the matters specified in paragraphs3 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 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 including other comprehensiveincome the statement of changes in equity and the Cash Flow Statement dealt with by thisReport are in agreement with the books of account;

d) In our opinion the aforesaid Standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with relevant ruleissued there under.

Financial Statements

e) On the basis of written representations received from the Directors as on March 312018 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2018 from being appointed as a director in terms of Section 164 (2) ofthe Act.

f) With respect to the adequacy of Internalfinancial controls over financial reportingof the company and the operating effectiveness of such control refer to our separatereport 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 as amended inour opinion and to the best of our information and according to the explanation given tous:

i) The Company has disclosed the impact of pending litigations on its financialposition in its Standalone financial statements.

ii) The Company did not have any long term contract including derivative contract 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 NGS & CO. LLP

Chartered Accountants Firm Registration No. : 119850W

Ashok A. Trivedi

Mumbai Partner

May 18 2018 Membership No. 042472

ANNEXURE - A TO THE INDEPENDENT AUDITORS' REPORT

The Annexure referred to in Independent Auditors' Report to the members of the FUTURELIFESTYLE FASHIONS LIMITED on the standalone financial statements for the year ended March31 2018 we report that:

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

(b) Some of the fixed assets were physically verified during the year by the Managementin accordance with a regular programme of verification which in our opinion providesfor physical verification of all the fixed assets at reasonable intervals. According tothe information and explanations given to us no material discrepancies were noticed onsuch verification.

(c) The Company did not have any immovable properties of freehold or leasehold land andbuilding as at March 31 2018. Therefore paragraph 3(i)(c) of the Order is notapplicable.

(ii) (a) As explained to us management has conducted physical verification ofinventory at regular intervals during the year

(b) I n our opinion and according to the information and explanations given to us theprocedures of physical verification of inventory followed by the Management werereasonable and adequate in relation to the size of the Company and nature of its business.

(c) I n our opinion and according to the information and explanations given to us theCompany has maintained proper records of its inventories and no material discrepancieswere noticed on physical verification.

(iii) The Company has not granted any loan secured or unsecured to companies firms orother parties covered in the register maintained under section 189 of the Companies Act2013 ("the Act"). Therefore paragraph 3 (iii) of the Order is not applicable.

(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 Act with respectto the loans and investments made.

(v) The Company has not accepted any deposits from the public.

(vi) To the best of our knowledge and as explained the Central Government has notprescribed the maintenance of cost records under section 148(1) of the Act for any of theproducts of the Company.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including Provident Fund Employees'State Insurance Income tax Sales tax Service tax Goods and Service Tax Duty of Custom Duty 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. As explained to us the Company did not have any dues on account of customduty

According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employee's state insurance income tax service taxGoods and Service Tax Duty of Custom Duty of Excise Value Added Tax cess and othermaterial statutory dues were in arrears as at March 312018 for a period of more than sixmonths from the date they became payable.

(b) According to the information and explanations given to us there are no materialdues of income tax service tax Duty of Custom Duty of Excise which have not beendeposited with the appropriate authorities on account of any dispute.

However according to information and explanations given to us Value Added TaxCentral Sales Tax and stamp duty have not been deposited by the Company on account ofdisputes:

Name of the Statute Nature of the dues Amount (Rs in crore) Period to which the amount relates Forum where dispute is pending
MP VAT Act 2002 Sales Tax 0.05 2013-14 Dy Commissioner of Sales Tax
Kerala VAT Act 2003 Sales Tax 0.37 2013-14 Dy Commissioner of Sales Tax
Kerala CST Act 1956 Sales Tax 0.23 2015-16 Dy Commissioner of Sales Tax
The Indian Stamp Act 1899 Stamp Duty 1.55 2008-09 Upper Collector Gaziabad

(viii) Based on our audit procedures and on the basis of information and explanationsgiven by the management we are of the opinion that the company has not defaulted inrepayment of loans or borrowings from banks and debenture holders. The company has nottaken any loans from Government or any Financial Institution.

(ix) Based on our audit procedure and on the basis of information and explanation givenby the management we are of the opinion that money raised by company by way of term loanhave been applied for the purpose for which they were raised. The company did not raiseany money by way of Initial Public offer or further public offer

(x) To the best of our knowledge and belief and according to the information andexplanations given to us no fraud by the Company was noticed or reported during the yearalthough there were some instances of fraud on the Company noticed by the Management theamounts whereof were not material in the context of the size of the Company and the natureof its business and the amounts were adequately provided for

(xi) According to the information and explanations given to us and based on ourexamination of the records of the company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Therefore paragraph 3(xii) of the Order is notapplicable.

(xiii) 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 standalone financial statements as required by theapplicable accounting standards.

(xiv) 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

(xv) 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-cashtransactions with directors or persons connected with him. Therefore paragraph 3(xv) ofthe Order is not applicable.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For NGS & CO. LLP

Chartered Accountants Firm Registration No. : 119850W

Ashok A. Trivedi

Mumbai Partner

May 18 2018 Membership No. 042472

Financial Statements

ANNEXURE - B TO THE INDEPENDENT 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 FUTURELIFESTYLE FASHIONS LIMITED ("the Company") as of March 31 2018 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat 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 financialreporting 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 responsibilitiesinclude the design implementation and maintenance of adequate internal financialcontrolsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the 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 judgment including the assessment of the risks ofmaterial misstatement of the standalone financial statements whether due to fraud orerror

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 standalone 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 the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

2. provide reasonable assurance that transactions are recorded as necessary to permitpreparation of standalone financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorisations of management and directors of the company; and

3. provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the standalone financial statements.

INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

Because of the limitations of internal financial controls over financial reportingincluding the possibility of collusion or improper management override of controlsmaterial misstatements due to error or fraud may occur and not be detected. Alsoprojections of any evaluation of the internal financial controls over financial reportingto future periods are subject to the risk that the internal financial control overfinancial reporting may become inadequate because of changes in conditions or that thedegree 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 NGS & CO. LLP

Chartered Accountants Firm Registration No. : 119850W

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's Mumbai internal financial controlssystem over financial reporting. May 18 2018

Ashok A. Trivedi

Partner

Membership No. 042472