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Indian Terrain Fashions Ltd.

BSE: 533329 Sector: Industrials
NSE: INDTERRAIN ISIN Code: INE611L01021
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OPEN 67.65
PREVIOUS CLOSE 66.95
VOLUME 9949
52-Week high 88.00
52-Week low 37.25
P/E 16.04
Mkt Cap.(Rs cr) 304
Buy Price 68.65
Buy Qty 1.00
Sell Price 68.90
Sell Qty 100.00
OPEN 67.65
CLOSE 66.95
VOLUME 9949
52-Week high 88.00
52-Week low 37.25
P/E 16.04
Mkt Cap.(Rs cr) 304
Buy Price 68.65
Buy Qty 1.00
Sell Price 68.90
Sell Qty 100.00

Indian Terrain Fashions Ltd. (INDTERRAIN) - Auditors Report

Company auditors report

TO THE MEMBERS OF INDIAN TERRAIN FASHIONS LIMITED

REPORT ON THE AUDIT OF THE STANDALONE FINANCIAL STATEMENTS

OPINION

We have audited the accompanying Standalone Financial Statements ofINDIAN TERRAIN FASHIONS LIMITED ("the Company") which comprises the BalanceSheet as at 31st March 2022 the Statement of Profit and Loss (including OtherComprehensive Income) the Statement of Changes in Equity and the Statement of Cash Flowsfor the year then ended and a summary of significant accounting policies and otherexplanatory information.

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid Standalone Financial Statements give theinformation required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under Section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended ("Ind AS") and other accounting principlesgenerally accepted in India of the state of affairs of the Company as at 31st March 2022the loss and total comprehensive loss changes in equity and its cash flows for the yearended on that date.

BASIS FOR OPINION

We conducted our audit in accordance with the Standards on Auditing(SAs) specified under section 143(10) of the Companies Act 2013. Our responsibilitiesunder those Standards are further described in the Auditor?s Responsibilities for theAudit of the Standalone Financial Statements section of our report. We are independent ofthe Company in accordance with the Code of Ethics issued by the Institute of CharteredAccountants of India together with the ethical requirements that are relevant to our auditof the Standalone Financial Statements under the provisions of the Companies Act 2013 andthe Rules there under and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the Code of Ethics. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for ouropinion.

EMPHASIS OF MATTER

We draw attention to Note No. 43 to the Standalone FinancialStatements which describes the uncertainties and the impact of the Covid-19 pandemic onthe Company?s operations and results as assessed by management. The actual resultsmay differ from such estimates depending on future developments. Our opinion is notmodified in respect of this matter.

KEY AUDIT MATTERS

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the Standalone Financial Statements of thecurrent period. These matters were addressed in the context of our audit of the StandaloneFinancial Statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.

A) Contingent Liability: Our procedures included but were not limited to the following:
Assessment of Provisions for taxation litigations and claims: Obtain details of completed Tax Assessments and Demands for the year ended 31st March 2022 from the Management.
As of 31st March 2022 Indian Terrain Fashions Limited had a provision in respect of possible or actual taxation disputes litigation and claims to the tune of ' 0.52 Crs. These provisions are estimated using a significant degree of management judgment in interpreting the various relevant rules regulations and practices and in considering precedents in various forums. Refer Note No. 40 (1) in Financial Statements. Assessed the adequacy of Tax Provisions by reviewing correspondence with the Tax Authorities.
Assessed the view of the External Advisors regarding the likely outcome and magnitude of and exposure to the relevant litigation and claims
Our Internal Experts also considered Legal precedence and other rulings in evaluating Management's position on these uncertain tax positions.
Our audit procedure did not identify any material discrepancies with respect to Contingent Liabilities.
B) Existence and impairment of Trade Receivables We performed audit procedures on existence of trade receivables which included substantive testing of revenue transactions obtaining trade receivable external confirmations and testing the subsequent payments received. Assessing the impact of trade receivables requires judgment and we evaluated management's assumptions in determining the provision for impairment of trade receivables by analyzing the ageing of receivables assessing significant overdue individual trade receivables and specific local risks combined with the legal documentations where applicable.
Trade Receivables are significant to the Company's financial statements. The Collectability of trade receivables is a key element of the Company's working capital management which is managed on an ongoing basis by its management. Due to the nature of the Business and the requirements of customers various contract terms are in place which impacts the timing of revenue recognition. Given the magnitude and judgment involved in the impairment assessment of trade receivables we have identified this as a key audit matter. We tested the timing of revenue and trade receivables recognition based on the terms agreed with the customers. We also reviewed on a sample basis terms of the contract with the customers invoices raised etc. as a part of our audit procedures.
As at 31st March 2022 an amount of ' 223.92 Crs is classified as "Receivables considered good and unsecured." Assessed the appropriateness of the disclosures made in Note No.7 to the Financial Statements.
Refer Note No. 7 of the Financial Statements. Our Audit Procedures did not identify any material discrepancies with respect to Trade Receivables.
In calculating the Expected Credit Loss as per Ind AS 109 - "Financial Instruments" the Company has also considered the estimation of probable future customer default and has taken into account an estimation of possible effect from the pandemic relating to Covid-19. Physical Verification of inventory was conducted by the management and necessary certificates have been produced evidencing the inventory check.
C)Inventory: With respect to the Net Realizable value of Inventory the Company has provided Management Representations that there is no significant impact on account of Covid as all contracts are based on fixed prices.
Management judgment is required to establish the carrying value of inventory particularly in relation to determining the appropriate level of provisions in relation to obsolete and Surplus items. Audit procedures include testing the inventory provisions we assessed the management control and estimation of inventory provisions and their appropriateness. Future salability of inventory was assessed based on past track records
The judgment reflects that inventory is held to support Company's operations which results in the Company holding inventory for extended periods before utilization. Based on the audit procedure performed no material discrepancies were identified.
D) Adoption of IND AS 116 - Leases Our audit procedures on adoption of Ind AS 116 include:
As described in Note 2A to the financial statements the Company has adopted Ind AS 116 - Leases (Ind AS 116). The application of this accounting standard is complex and is an area of focus in our audit. • Assessed and tested new processes and controls in respect of the lease accounting standard (Ind AS 116).
Owing to COVID 19 Rent Concession or Waivers have been availed and necessary disclosures have been made. The company has opted for Practical Expedient for the Year ended 31st March 2022. • Assessed the Company's evaluation on the identification of leases based on the contractual agreements and our knowledge of the business.
As per Ind AS 116 the Lessee may opt not to account change in lease payment due to Rent Concession as a Lease Modification by Opting for Optional Exemption • Evaluated the reasonableness of the discount rates applied in determining the lease liabilities.
Ind AS 116 introduces a new lease accounting model wherein lessees are required to recognize a right-of-use (ROU) asset and a lease liability arising from a lease on the balance sheet. The lease liabilities are initially measured by discounting future lease payments during the lease term as per the contract/ arrangement. Adoption of the standard involves significant judgements and estimates including determination of the discount rates and the lease term. Additionally the standard mandates detailed disclosures in respect of transition. Refer Note - 2A of financial statements. • Tested completeness of the lease data by reconciling the Company's operating lease commitments to data used in computing ROU asset and the lease liabilities.
On a statistical sample we performed the following procedures:
• assessed the key terms and conditions of each lease with the underlying lease contracts; and
• evaluated computation of lease liabilities and challenged the key estimates such as discount rates and the lease term.
• Assessed and tested the presentation and disclosures relating to Ind AS 116 including disclosures.

INFORMATION OTHER THAN THE STANDALONE FINANCIAL STATEMENTS ANDAUDITORS? REPORT THEREON

The Company?s management and Board of Directors are responsiblefor the other information. The other information comprises the information included in theCompany?s Annual Report but does not include the financial statements and our reportthereon.

Our opinion on the Standalone Financial Statements does not cover theother information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the Standalone Financial Statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the Standalone Financial Statements orour knowledge obtained in the audit or otherwise appears to be materially misstated.

Based on the work we have performed we conclude that there is nomaterial misstatement of any other information.

MANAGEMENT?S RESPONSIBILITY FOR THE STANDALONE FINANCIALSTATEMENTS

The Company?s Board of Directors is responsible for the mattersstated in section 134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation of these Standalone Financial Statements that give a true and fair view ofthe financial position financial performance total comprehensive loss changes in equityand cash flows of the Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind AS) specified undersection 133 of the Act read with the rule 3 of the Companies (Indian AccountingStandards) Rules 2015 as amended.

This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate implementation and maintenance of accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the Standalone Financial Statement that give a true andfair view and are free from material misstatement whether due to fraud or error.

In preparing the Standalone Financial Statements management isresponsible for assessing the Company?s ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing theCompany?s financial reporting process.

AUDITOR?S RESPONSIBILITIES FOR THE AUDIT OF THE STANDALONEFINANCIAL STATEMENTS

Our objectives are to obtain reasonable assurance about whether theStandalone Financial Statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor?s report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of thefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Companies Act 2013 we are also responsible for expressing ouropinion on whether the Company has adequate internal financial controls system in placeand the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management?s use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company?s ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor?sreport to the related disclosures in the Standalone Financial Statements or if suchdisclosures are inadequate to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor?s report. However future events orconditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of theStandalone Financial Statements including the disclosures and whether the Standalone

Financial Statements represent the underlying transactions and eventsin a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the standalonefinancial statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the standalone financialstatements may be influenced. We consider quantitative materiality and qualitative factorsin (i) planning the scope of our audit work and in evaluating the results of our work; and(ii) to evaluate the effect of any identified misstatements in the Standalone FinancialStatements.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the StandaloneFinancial Statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor?s report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. As required by the Companies (Auditor?s Report) Order 2020("the Order") issued by the Central Government of India in terms of sub-section(11) of section 143 of the Act(here in after referred to as the "Order") and onthe basis of such checks of the books and records of the Company as we consideredappropriate and according to the information and explanations given to us we give in the"Annexure A" a statement on the matters specified in paragraphs 3 and 4 of theOrder to the extent applicable

2. As required by Section 143(3) of the Companies Act2013 we reportthat:

(a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

(b) In our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination of those books

(c) The Balance Sheet the Statement of Profit and Loss (includingother comprehensive income) Statement of Changes in the Equity and the Cash FlowStatement dealt with by this Report are in agreement with the books of account

(d) In our opinion the aforesaid Standalone Financial Statementscomply with the IND AS specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

(e) On the basis of the written representations received from thedirectors as on 31st March 2022 and taken on record by the Board of Directors none ofthe directors is disqualified as on 31st March 2022 from being appointed as a director interms of Section 164 (2) of the Act.

(f) With respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure B".

(g) With respect to the other matters to be included in theAuditor?s Report in accordance with the requirements of section197(16) of the Act asamended:

In our opinion and to the best of our information and according to theexplanations given to us the remuneration paid by the Company to its directors during theyear is in accordance with the provisions of Section 197 of the Act.

(h) With respect to the other matters to be included in theAuditor?s Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 as amended in our opinion and to the best of our information and accordingto the explanations given to us:

i. The Company has disclosed the impact of pending litigations on itsfinancial position in its Standalone Financial Statements as referred to in Note No. 40(i) to the Standalone Financial Statements;

ii. The Company did not have any long-term contracts includingderivative contracts as at 31st March 2022;

iii. There were no amounts required to be transferred to the InvestorEducation and Protection Fund by the Company for the year ended 31st March 2022;

iv. (a) Management has represented that to the best of its knowledgeand belief other than as disclosed in the notes to the accounts no funds have beenadvanced or loaned or invested (either from borrowed funds or share premium or any othersources or kind of funds) by the Company to or in any other person(s) or entity(is)including foreign entities ("Intermediaries") with the understanding whetherrecorded in writing or otherwise that the Intermediary shall whether directly orindirectly lend or invest in other persons or entities identified in any manner whatsoeverby or on behalf of the Company ("Ultimate Beneficiaries") or provide anyguarantee security or the like on behalf of the Ultimate Beneficiaries. (Refer Note No.44 to the Standalone Financial Statements)

(b) Management has represented that to the best of its knowledge andbelief other than as disclosed in the notes to the accounts no funds have been receivedby the Company from any person(s) or entity(ies) including foreign entities("Funding Parties") with the understanding whether recorded in writing orotherwise that the Company shall whether directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of theFunding Party ("Ultimate Beneficiaries") or provide any guarantee security orthe like on behalf of the Ultimate Beneficiaries (Refer Note No. 44 to the StandaloneFinancial Statements) and

(c ) Based on the audit procedures adopted by us nothing has come toour notice that has caused us to believe that the representations made by the Managementunder sub clause (a) and (b) above contain any material misstatement.

v. The Company has not declared or paid any Dividend during the year.

For SRSV & Associates
Chartered Accountants
ICAI Firm Registration No. 015041S
V. Rajeswaran
Partner
Place: Chennai Membership No. 020881
Dated: 18th May 2022 UDIN No.:20020881AAAADV5788

ANNEXURE ‘A? TO THE INDEPENDENT AUDITOR?S REPORT

The Annexure referred to in our Independent Auditor?s Report tothe members of Indian Terrain Fashions Limited on the Standalone Financial Statements forthe year ended 31st March 2022

i.

(a) (A) According to the information and explanations given to us andthe records of the Company examined by us in our opinion the Company has maintainedproper records showing full particulars including quantitative details and situation ofProperty Plant & Equipment.

(B) According to the information and explanations given to us and therecords of the Company examined by us in our opinion the Company has maintained properrecords showing full particulars including quantitative details and situation ofIntangible Assets.

(b) The Company has a regular program of physical verification of itsProperty Plant & Equipment by which Property Plant & Equipment are verified in aphased periodical manner designed to cover all the items over a period of three years. Inaccordance with this program certain Property Plant & Equipment were verified duringthe year 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 given to us and onthe basis of our examination of the records of the Company the title deeds of all theimmovable properties (other than properties where the Company is the lessee and the leaseagreements are duly executed in favour of the lessee) disclosed in the financialstatements are held in the name of the Company.

(d) The Company has not revalued its Property Plant and Equipment(including Right of Use assets) or intangible assets during the year.

(e) Based on the information and explanations furnished to us noproceedings have been initiated on or are pending against the Company for holding benamiproperty under the Prohibition of Benami Property Transactions Act 1988 (as amended in2016) (formerly the Benami Transactions (Prohibition) Act 1988 (45 of 1988)) and Rulesmade thereunder and therefore the question of our commenting on whether the Company hasappropriately disclosed the details in its financial statements does not arise.

ii. (a) Physical verification of inventory has been conducted atreasonable intervals by the management and in our opinion the coverage and procedure ofsuch verification by the management is appropriate and no discrepancies of 10% or more inthe aggregate for each class of inventory were noticed.

(b) According to the records of the Company and information andexplanations given to us the Company has been sanctioned working capital limits in excessof Rupees Five crore in aggregate from banks or financial institutions on the basis ofsecurity of current assets during the year. The quarterly returns or statements filed bythe Company with the banks or financial institutions are in agreement with the unauditedbooks of accounts of the Company. (Refer Note No.17 to the standalone financialstatements)

iii. (a) In our opinion and according to the explanations given to usthe Company has not made investments in provided any guarantee or security or granted anyloans or advances in the nature of loans secured or unsecured to companies firmsLimited Liability Partnerships. However the Company has granted loans and advances to theemployees as detailed below

To whom Type (Loan/ adv/guarantee/ security) Aggregate Amount during the year (Rs) Balance outstanding at Balance sheet date (Rs)
Employees Loans 1321261 21384354.21

(b) In our opinion and according to the explanations given to us theterms and con ditions of the grant of all loans and advances in the nature of loans arenot prejudicial to the Company?s interest.

(c) In our opinion and according to the explanations given to us inrespect of loans and advances in the nature of loans the schedule of repayment ofprincipal and payment of interest has been stipulated and the repayments are regular.

(d) In our opinion and according to the explanations given to us inrespect of loans and advances in the nature of loans no amounts are overdue for a periodof more than 90 days.

(e) In our opinion and according to the explanations given to us noloans or advance in the nature of loan granted which has fallen due during the year hasbeen renewed or extended nor fresh loans have been granted to settle the overdues ofexisting loans given to the same parties.

(f) In our opinion and according to the explanations given to us theCompany has not granted loans or advances in the nature of loans either repayable ondemand or without specifying any terms or period of repayment.

iv. In our opinion and according to the explanations given to us inrespect of loans investments guarantees and security the Company has complied with theprovisions of Section 185 and 186 of the Companies Act. Therefore the provisions of theparagraph 3(iv) of the Order are not applicable to the Company.

v. In our opinion and according to the information and explanationsgiven to us the Company has not accepted any deposits or amounts which are deemed to bedeposits from the public within the meaning of Sections 73 to 76 or any other relevantprovisions of the Act and rules framed thereunder and hence reporting under clause (v) ofthe Order are not applicable.

vi. In our opinion and as explained to us the Central Government hasnot prescribed the maintenance of cost records under Section 148(1) of the Companies Act2013 for any of the products/services manufactured/rendered by the Company.

vii. In respect of statutory dues:

a) According to the records of the Company and information andexplanations given to us the Company is regular in depositing undisputed statutory duesincluding Goods and Service tax provident fund employees? state insuranceincome-tax sales-tax wealth tax service tax duty of customs duty of excise valueadded tax cess and any other statutory dues with the appropriate authorities. There areno undisputed statutory dues outstanding for more than six months.

b) As at 31st March 2022 according to the records of the Company thefollowing are the particulars of the statutory dues referred in sub-clause (a) which havenot been deposited on account of dispute:

( Rs in Lakhs)

Name of the Statue Nature of Dues Forum Where the Dispute is Pending Period to which the amount relates Amount
Central Excise Act 1944 Excise Duty The Commissionner of Central Excise Chennai February 2013 51.82

viii. According to the information and explanations given to us and onthe basis of records of the Company examined by us in our opinion the company has notransactions that has not been recorded in the books of account and no unrecorded incomewas disclosed or surrendered as income during the year in the Tax assessments under theIncome Tax1961. Accordingly clause (viii) of Para 3 of the Order is not applicable.

ix. (a) Based on our audit procedures and according to the informationand explanations given to us by the management we are of the opinion that the Company hasnot defaulted in repayment of loans or borrowings or in the payment of interest to anylenders during the year.

(b) According to the records of the Company and information andexplanations given to us the Company is not a declared wilful defaulter by any bank orfinancial institution or other lender or Government or any Government Authority.

(c) According to the records of the Company and information andexplanations given to us term loans were applied for the purpose for which the loans wereobtained. (Also refer Note 17 to the financial statements).

(d) According to the information and explanations given to us and theprocedures performed by us and on an overall examination of the financial statements ofthe Company we report that no funds raised on short-term basis have been used forlong-term purposes by the Company.

(e) The Company does not have any subsidiary associate or jointventure. Accordingly clause (ix)(e) of Para 3 of the Order is not applicable. .

(f) The Company does not have any subsidiary associate or jointventure. Accordingly clause (ix)(f) of Para 3 of the Order is not applicable.

x. (a) The Company has not raised any money by way of initial publicoffer or further public offer (including debt instruments) during the year. Accordinglythe reporting under clause 3(x)(a) of the Order is not applicable to the Company.

(b) The Company has not made any preferential allotment or privateplacement of shares or fully or partially or optionally convertible debentures during theyear. Accordingly the reporting under clause 3(x)(b) of the Order is not applicable tothe Company.

xi. (a) During the course of our examination of the books and recordsof the Company carried out in accordance with the generally accepted auditing practicesin India and according to the information and explanations given to us we have neithercome across any instance of material fraud by the Company or on the Company noticed orreported during the year nor have we been informed of any such case by the Management.

(b) During the course of our examination of the books and records ofthe Company carried out in accordance with the generally accepted auditing practices inIndia and according to the information and explanations given to us a report underSection 143(12) of the Act in Form ADT-4 as prescribed under rule 13 of Companies (Auditand Auditors) Rules 2014 was not required to be filed with the Central Government.Accordingly the reporting under clause 3(xi)(b) of the Order is not applicable to theCompany.

(c) During the course of our examination of the books and records ofthe Company carried out in accordance with the generally accepted auditing practices inIndia and according to the information and explanations given to us and as representedto us by the management no whistle-blower complaints have been received during the yearby the Company. Accordingly the reporting under clause 3(xi)(c) of the Order is notapplicable to the Company.

xii. In our opinion the Company is not a Nidhi Company. Accordinglyclause (xii(a) xii(b) xii(c) of Para 3 of the Order are not applicable.

xiii. In our opinion and according to the information and explanationgiven to us all transactions with the related parties are in compliance with sections 177and 188 of Companies Act 2013 where applicable and the details have been disclosed in theStandalone Financial Statements as required by the applicable accounting standards.

xiv. (a) In our opinion and according to the information andexplanation given to us the Company has an internal audit system commensurate with thesize and nature of its business.

(b) The reports of the Internal Auditors for the period under auditwere considered by us.

xv. In our opinion and according to the information and explanationsgiven to us the Company has not entered into any non - cash transactions with directorsor persons connected with the Directors. Accordingly clause xv of Para 3 of the Order isnot applicable.

xvi. (a) The Company is not required to be registered under Section45-IA of the Reserve Bank of India Act 1934. Accordingly the reporting under clause3(xvi) (a) of the Order is not applicable to the Company.

(b) The Company has not conducted non-banking financial activities orhousing finance activities during the year. Accordingly the reporting under clause3(xvi)(b) of the Order is not applicable to the Company.

(c) The Company is not a Core Investment Company (CIC) as defined inthe regulations made by the Reserve Bank of India. Accordingly the reporting under clause3(xvi)(c) of the Order is not applicable to the Company

(d) Based on the information and explanation provided by the Managementof the Company the Group does not have any CICs which are part of the Group. We havenot however separately evaluated whether the information provided by the Management isaccurate and complete. Accordingly the reporting under clause 3(xvi)(d) of the Order isnot applicable to the Company.

xvii. The Company has incurred cash losses during the year and in theimmediately preceding financial year. The amount of cash loss is ` 0.79 Crores and ` 49.81Crores respectively.

xviii.There has been no resignation of the statutory auditors duringthe year and accordingly the reporting under clause (xviii) of Para 3 of the Order is notapplicable.

xix. According to the information and explanations given to us and onthe basis of the financial ratios (Also refer Note 42 to the financial statements) ageingand expected dates of realisation of financial assets and payment of financialliabilities other information accompanying the financial statements our knowledge of theBoard of Directors and management plans and based on our examination of the evidencesupporting the assumptions nothing has come to our attention which causes us to believethat any material uncertainty exists as on the date of the audit report that Company isnot capable of meeting its liabilities existing at the date of Balance Sheet as and whenthey fall due within a period of one year from the Balance Sheet date. We however statethat this is not an assurance as to the future viability of the Company. We further statethat our reporting is based on the facts up to the date of the audit report and we neithergive any guarantee nor any assurance that all liabilities falling due within a period ofone year from the Balance Sheet date will get discharged by the Company as and when theyfall due

xx. (a)In our opinion and according to the information and explanationgiven to us in respect of other than ongoing projects the company is yet to transfer theunspent amount to a fund specified in Schedule VII to the Companies Act within a period ofsix months of the expiry of the financial year in compliance with second proviso tosub-section (5) of section 135 of the said Act.

(b) According to the explanations provided by the management there areno ongoing projects. Accordingly clause (xx)(b) of Para 3 of Companies (Auditors Report)Order 2020 is not applicable.

xxi. The Company does not have any subsidiary associate or jointventure and hence not required to prepare consolidated financial statements. Accordinglyclause xxi of Para 3 of the Order is not applicable

ANNEXURE "B" TO THE INDEPENDENT AUDITOR?S REPORT

(Referred to in paragraph 2 (f) under ‘Report on Other Legal andRegulatory Requirements? section of the Independent Auditor?s Report of evendate)

Report on the Internal Financial Controls Over Financial Reportingunder Clause(i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("theAct")

We have audited the internal financial controls over financialreporting of INDIAN TERRAIN FASHIONS LIMITED ("the Company") as of 31stMarch 2022 in conjunction with our audit of the Standalone Financial Statements of theCompany for the year ended on that date.

MANAGEMENT?S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS

The Company?s Management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India("ICAI"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence toCompany?s policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

AUDITOR?S RESPONSIBILITY

Our responsibility is to express an opinion on the internal financialcontrols over financial reporting of the Company based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") and the Standards on Auditing issuedby ICAI and deemed to be prescribed under Section 143(10) of the Companies Act 2013 tothe extent applicable to an audit of internal financial controls both issued by theInstitute of Chartered Accountants of India. Those Standards and the Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor?s judgement including the assessment ofthe risks of material misstatement of the Standalone Financial Statements whether due tofraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company?s internalfinancial controls system over financial reporting.

MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

A Company?s internal financial control over financial reporting isa process designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of Standalone Financial Statements for external purposes inaccordance with generally accepted accounting principles. A Company?s internalfinancial control over financial reporting includes those policies and procedures that (1)pertain to the maintenance of records that in reasonable detail accurately and fairlyreflect the transactions and dispositions of the assets of the Company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation ofStandalone Financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the Company are being made only inaccordance with authorizations of management and directors of the Company; and (3) providereasonable assurance regarding prevention or timely detection of unauthorized acquisitionuse or disposition of the Company?s assets that could have a material effect on theStandalone Financial Statements.

INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIALREPORTING

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

OPINION

In our opinion to the best of our information and according to theexplanations given to us 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 31st March 2022 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
ICAI Firm Registration No. 015041S
V. Rajeswaran
Partner
Place: Chennai Membership No. 020881
Dated: 18th May 2022 UDIN No.:20020881AAAADV5788

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