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Inanna Fashion and Trends Ltd.

BSE: 521167 Sector: Others
NSE: N.A. ISIN Code: INE485D01035
BSE 00:00 | 18 Jun Inanna Fashion and Trends Ltd
NSE 05:30 | 01 Jan Inanna Fashion and Trends Ltd
OPEN 8.00
PREVIOUS CLOSE 8.00
VOLUME 1
52-Week high 11.97
52-Week low 6.00
P/E
Mkt Cap.(Rs cr) 17
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 8.00
CLOSE 8.00
VOLUME 1
52-Week high 11.97
52-Week low 6.00
P/E
Mkt Cap.(Rs cr) 17
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Inanna Fashion and Trends Ltd. (INANNAFASHION) - Auditors Report

Company auditors report

To

The Members

INANNA FASHION AND TRENDS LIMITED

(Formally known as M/s. FRONTLINE BUSINESS SOLUTIONS LIMITED)

Mumbai.

Report on the Financial Statements

1. We have audited the accompanying financial statements of INANNA FASHION ANDTRENDS LIMITED (Formally known as M/s. FRONTLINE BUSINESS SOLUTIONS LIMITED)("the Company") which comprise the Balance Sheet as at March 31 2017 theStatement of Profit and Loss and 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

2. 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

3. Our responsibility is to express an opinion on these financial statements based onour audit.

4. 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.

5. 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 misstatements.

6. An audit involves performing procedures to obtain audit evidence about the amountsand disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement 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 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.

7. 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

8. 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 profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

9. 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 the‘Annexure A' statement on the matters specified in paragraphs 3 and 4 of the Order.

10. 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 2017 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2017 from being appointed as a director in terms of Section 164 (2) of theAct;

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 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
Place : Mumbai
Date : 30th May 2017

Annexure-A to Independent Auditor's Report

(Referred to in paragraph 9 under ‘Report on Other Legal and RegulatoryRequirements' 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 program 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 program 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.

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

ii. In respect of its inventories :

As explained to us the inventories were physically verified during the year by theManagement at reasonable intervals and no material discrepancy was noticed on physicalverification.

iii. The Company has granted interest free unsecured loans to a party covered in theregister maintained under Section 189 of the Companies Act 2013. The maximum amountoutstanding during the year and yearend balance of such loan aggregate to Rs79.92 lacs andRs. 79.47 lacs respectively..

a. In respect of the aforesaid loans the terms and conditions under which such loanswere granted are not prejudicial to the Company's interest.

b. The said loans are repayable on demand and therefore the question of its overdue and/ or amount of overdue and / or steps taken by the Company for recovery of principal andinterest does not arise.

iv. In our opinion and according to the information given to us the Company hascomplied with the provisions of section 185 and 186 of the Act with respect to the loansand investments made. The company has not provided any guarantee or security in terms ofsection 185 and 186 of the Act

v. According to the information and explanations given to us the Company has notaccepted any deposit from the public during the year in terms of the provision of Section73 to 76 or any other relevant provision of the Act and the rules framed their under. Asinformed to us no Order has been passed by the Company Law Board or National Company LawTribunal or Reserve Bank of India for this matter.

vi. The Central Government has not prescribed the maintenance of cost records undersection 148(1) of the Act in respect of the product manufactured and / or the servicesrendered 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 service taxcustoms duty excise duty value added tax cess and any other statutory dues with theappropriate authorities. There were no undisputed amount payable in respect of Providentfund Employees' State Insurance Income tax Sales tax Service tax and any othermaterial statutory dues in arrears as at March 31 2017 for a period of more than sixmonths from the date they become payable.

b. Details of Sales tax dues which have not been deposited as on March 312017 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

viii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

ix. In our opinion and according to information and explanation given to us no moneywas raised by way of term loan or by way of initial public offer or further public offer(including debt instruments) during the year.

x. During the course of our examination of the books of account and records of theCompany carried out in accordance with the generally accepted auditing practices inIndia and according to the information and explanations given to us we have neither comeacross any instance of material fraud by the Company or on the Company by its officers oremployees noticed or reported during the year nor have we been informed of any such caseby the Management.

xi. In our opinion and according to the information and explanations given by themanagement the Company has paid/provided managerial remuneration in accordance with theprovisions of section 197 read with Schedule V of the Act

xii. 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 to the Company.

xiii. According to the information and explanation given to us all the transactionswith related parties are in compliance with the provisions of Sections 177 and 188 of theAct where applicable. The details of related party transactions have been disclosed inthe financial statements as required under Accounting Standard (AS) 18 Related PartyDisclosures specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

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 fully or partly convertible debentures nor preferentialallotment of equity shares and hence reporting under clause (xiv) of CARO 2016 is notapplicable to the Company

xv. In our opinion and according to the information and explanations given to us andbased on our examination of the records of the Company the Company has not entered intoany non cash transactions with directors or persons connected with him during the year.Accordingly paragraph 3 (xv) of the order is not applicable to the Company.

xvi. According to the information and explanations given to us the Company is notrequired to be registered under section 45-IA of the Reserve Bank of India Act 1934.Accordingly paragraph 3 (xvi) of the order is not applicable to the Company.

FOR P. C. BARADIYA & CO.
CHARTERED ACCOUNTANTS
FIRM REGN. NO. 101017W
K.C. KANKARIYA
PARTNER
MEMBERSHIP NO: 43951
Place : Mumbai
Date : 30th May 2017

‘Annexure B' to Independent Auditor's Report

(Referred to in paragraph 10 (f) under ‘Report on the Standalone FinancialStatement Other Legal and Regulatory Requirements' section of our report of even date)

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Act

We have audited the internal financial controls over financial reporting of M/s INANNAFASHION AND

TRENDS LIMITED (Formally known as M/s. FRONTLINE BUSINESS SOLUTIONS LIMITED) (the

Company") as of March 31 2017 in conjunction with our audit of the standalonefinancial statements of the

Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

1. 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 responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat 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 Act.

Auditors' Responsibility

2. 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 deemed tobe prescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of internal financial controlsand both issued by the ICAI. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

3. Our audit involves performing procedures to obtain audit evidence about the adequacyof the internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining and 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.

4. 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

5. 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 disposition 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 authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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

6. 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

7. 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 P. C. BARADIYA & CO.
CHARTERED ACCOUNTANTS
FIRM REGN. NO. 101017W
K.C. KANKARIYA
PARTNER
MEMBERSHIP NO: 43951
Place : Mumbai
Date : 30th May 2017