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Indian Terrain Fashions Ltd.

BSE: 533329 Sector: Industrials
NSE: INDTERRAIN ISIN Code: INE611L01021
BSE 00:00 | 20 Jul 149.25 4.85
(3.36%)
OPEN

145.00

HIGH

152.35

LOW

144.00

NSE 00:00 | 20 Jul 150.30 5.00
(3.44%)
OPEN

149.85

HIGH

153.20

LOW

142.00

OPEN 145.00
PREVIOUS CLOSE 144.40
VOLUME 1997
52-Week high 252.55
52-Week low 143.00
P/E 22.24
Mkt Cap.(Rs cr) 566
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 145.00
CLOSE 144.40
VOLUME 1997
52-Week high 252.55
52-Week low 143.00
P/E 22.24
Mkt Cap.(Rs cr) 566
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Indian Terrain Fashions Ltd. (INDTERRAIN) - Auditors Report

Company auditors report

TO THE MEMBERS OF INDIAN TERRAIN FASHIONS LIMITED REPORT ON THE FINANCIAL STATEMENTS

We have audited the accompanying Financial Statements of Indian Terrain FashionsLimited ("the Company") which comprises the Balance sheet as at March 31 2017the Statement of Profit and Loss and the Cash Flow Statement for the year ended and asummary of significant accounting policies and other explanatory information.

MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

The Compan/s Board of Directors is responsible for the matters stated in Section 134(5)of the Companies Act 2013 ("the Act") with respect to the preparation of theseFinancial Statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

AUDITOR'S RESPONSIBILITY

Our responsibility is to express an opinion on these Financial Statements based on ouraudit. We have taken into account the provisions of the Act and the Rules made thereunderincluding the accounting standards and matters which required to be in the audit report.

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

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the Financial Statements. The procedures selected depend on the auditor'sjudgement including the assessment of the risks of material misstatements of theFinancial Statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Compan/s preparation of theFinancial Statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by the Compan/s directors as well as evaluating the overall presentationof Financial Statements.

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

OPINION

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at March312017 and its profits and its cash 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 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act (here in after referred to as the "Order") and on the basis of suchchecks of the books and records of the Company as we considered appropriate and accordingto the information and explanations given to us we give in Annexure B a statement on thematters specified in paragraphs 3 and 4 of the Order.

2. As required by section 143(3) of the Companies Act 2013 we report that:

(a) we have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purpose of our audit;

(b) in our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books;

(c) the Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account;

(d) in our opinion the aforesaid Financial Statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014;

(e) on the basis of the written representations received from the directors as on March312017 and taken on record by the Board of Directors none of the directors aredisqualified as on March 312017 from being appointed as a director in terms of Section164(2) of the Act; and

(f) with respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in 'Annexure A'; and

(g) with respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our knowledge and belief and according to the explanations given to us:

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

ii. The Company did not have any long-term contracts including derivative contracts asat March 312017;

iii. There were no amounts required to be transferred to the Investor Education andProtection Fund by the Company for the year ended March 31 2017

iv. The Company has provided requisite disclosures in the Financial Statements as toholdings as well as dealings in Specified Bank Notes during the period from 8* November2016 to 30* December 2016. Based on audit procedures and relying on the managementrepresentation we report that the disclosures are in accordance with books of accountmaintained by the Company and as produced to us by the Management (Refer Note 40).

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

TO THE INDEPENDENT AUDITORS7 REPORT ON THE FINANCIAL STATEMENTS OF INDIANTERRAIN FASHIONS LIMTTED

(Referred to in paragraph 12(f) of the Independent Auditors' Report of even date to themembers of Indian Terrain Fashions Limited on the Financial Statements for the year endedMarch 312017)

REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER CLAUSE (I) OF SUBSECTION 3 OF SECTION143 OF THE COMPANIES ACT 2013 ("THE ACT").

We have audited the internal financial controls over financial reporting of IndianTerrain Fashions Limited ("the Company") as of March 312017 in conjunction withour audit of the Financial Statements of the Company for the year ended on that date.

MANAGEMENT'S RESPONSIBIUTY FOR INTERNAL FINANCIAL CONTROLS

The Compan/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 Compan/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.

AUDITOR'S RESPONSIBILITY

Our responsibility is to express an opinion on the Compan/s internal financial controlsover financial reporting based on our audit. We conducted our audit in accordance with theGuidance Note on Audit of Internal Financial Controls over Financial Reporting (the"Guidance Note") and the Standards on Auditing issued by ICAI and deemed to beprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of Internal Financial Controls both issued by the Institute of CharteredAccountants of India. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operate 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 procedures selected depend on the auditor's judgment including the assessment ofthe risks of material misstatement of the Financial Statements whether due to fraud orerror.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Compan/s internal financial controls systemover financial reporting.

MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

A Compan/s internal financial control over financial reporting is a process designed toprovide 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 312017 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 ANIL NAIR & ASSOCIATES for CNGSN & ASSOCIATES LIP
Chartered Accountants Chartered Accountants
ICAI Firm Registration Number ICAI Firm Registration Number
000175S 004915S/S200036
sd/- sd/~
G. ANIL C.N. GANGADARAN
Partner Partner
Membership Number: 022450 Membership Number: 011205
Place: Chennai
Date: 26* May 2017

TO THE INDEPENDENT AUDITORS' REPORT ON THE FINANCIAL STATEMENTS OFINDIAN TERRAINFASHIONS LIMITED

The Annexure referred to in our Independent Auditors' Report to the members of theIndian Terrain Fashions Limited on the Financial Statements for the year ended March312017 we report that:

1. In respect of its Fixed Assets:

a. On the basis of available information we report that the Company has maintainedproper records showing full particulars including quantitative details and situation offixed assets.

b. As explained to us the Company has a regular programme of physical verification ofits fixed assets by which fixed assets are verified in a phased periodical manner designedto cover all the items over a period of three years. In accordance with this programmecertain fixed assets were verified during the year and no discrepancies were noticed onsuch verification. In our opinion this periodicity of physical verification is reasonablehaving regard to the size of the Company and nature of its assets.

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

2. In respect of its Inventories:

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

3. The Company has not granted any loans secured or unsecured to companies firmslimited liability partnerships or other parties covered in the register maintained underSection 189 of the Companies Act 2013.Therefore in our opinion the provisions ofclause(iii)(a)(b) and(c) of paragraph 3 of the said Order are not applicable to theCompany.

4. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Sections 185 and 186 of the Companies Act2013 in respect of grant of loans making investments and providing guarantees andsecurities.

5. According to the information and explanations given to us the Company has notaccepted any deposits from the public. Therefore in our opinion the provisions of Clause(v) of paragraph 3 of the Order (as amended) are not applicable to the Company.

6. To the best of our knowledge and as explained to us the Central Government has notprescribed the maintenance of cost records under Section 148(1) of the Companies Act 2013 for any of the products/services manufactured/rendered by the Company.

7. In respect of Statutory dues:

a. According to the information and explanations given to us and on the basis of ourexamination of the records of the Company amounts deducted/accrued in the books ofaccount in respect of undisputed statutory dues including provident fund employees stateinsurance scheme income tax duty of customs duty of excise value added tax cess andother material statutory dues as applicable have been regularly deposited during the yearby the Company with the appropriate authorities.

According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees state insurance schemeincometaxduty ofcustoms duty of excise value added tax cess and other material statutory dues were inarrears as at March 31 2017 for a period of more than six months from the date theybecame payable.

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

Name of the Statue Nature of Dues Forum Where the dispute is pending Period to which the amount relates Amount (Rs. in Lakhs)
Central Excise Act 1944 Excise duty Appellate Tribunal Central Excise & Service Tax Chennai February 2012 to April 2012 47.43
Central Excise Act 1944 Excise duty Appellate Tribunal Central Excise & Service Tax Chennai May 2012 to September 2012 32.18
Central Excise Act 1944 Excise duty Appellate Tribunal Central Excise & Service Tax Chennai October 2012 to January 2013 23.29
Central Excise Act 1944 Excise duty Commissioner Central Excise Chennai February 2013 51.82
Central Excise Act 1944 Excise duty Appellate Tribunal Central Excise & Service Tax Chennai October 2015 42.65
Total 197.37

8. Based on our audit procedures and according to the information and explanationsgiven to us by the management we are of the opinion that the Company has not defaulted inrepayment of loans and borrowings to a financial institution bank or government. TheCompany has not issued any debentures.

9. According to the information and explanations given to us the Company did not raiseany money by way of initial public offer or further public offer (including debtinstruments). The term loans raised in our opinion have been applied by the Company forthe purposes for which they were obtained.

10. According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe year.

11. In our opinion and according to the information and explanations given to us andbased on our examination of the records of the Company during the year the Company haspaid / provided Managerial Remuneration in accordance with the requisite approvalsmandated by the provisions of Section 197 read with Schedule V to the Companies Act 2013.

12. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly paragraph 3(xii) of the Order is notapplicable.

13. In our opinion and according to the information and explanations given to us andbased on our examination of the records of the Company transactions with its related

parties are in compliance with Sections 177 and 188 of the Act where applicable anddetails of such transactions have been disclosed in the Financial Statements as requiredby the applicable Accounting Standards.

14. 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.

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

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

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