You are here » Home » Companies » Company Overview » Maxgrow India Ltd

Maxgrow India Ltd.

BSE: 521167 Sector: Others
NSE: N.A. ISIN Code: INE485D01035
BSE 00:00 | 14 Feb 1.04 -0.02
(-1.89%)
OPEN

1.04

HIGH

1.04

LOW

1.04

NSE 05:30 | 01 Jan Maxgrow India Ltd
OPEN 1.04
PREVIOUS CLOSE 1.06
VOLUME 1
52-Week high 6.78
52-Week low 1.04
P/E 52.00
Mkt Cap.(Rs cr) 2
Buy Price 1.04
Buy Qty 1.00
Sell Price 1.10
Sell Qty 2288.00
OPEN 1.04
CLOSE 1.06
VOLUME 1
52-Week high 6.78
52-Week low 1.04
P/E 52.00
Mkt Cap.(Rs cr) 2
Buy Price 1.04
Buy Qty 1.00
Sell Price 1.10
Sell Qty 2288.00

Maxgrow India Ltd. (MAXGROWINDIA) - 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 standalone Ind AS financial statements of INANNAFASHION AND TRENDS LIMITED (Formally known as M/s. FRONTLINE BUSINESS SOLUTIONSLIMITED) ("the Company") which comprise the Balance Sheet as at March 312018the Statement of Profit and Loss (including other comprehensive income) the Cash FlowStatement and Statement of Change in Equity for the year then ended and a summary ofsignificant 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 standalone financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income cash flows andChange in Equity of the Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind AS) prescribed underSection 133 of the Act.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

3. Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

4. In conducting our audit we have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made thereunder and the Orderissued under section 143(11) of the Act.

5. We conducted our audit of the standalone Ind AS financial statements in accordancewith the Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatements.

6. An audit involves performing procedures to obtain audit evidence about the amountsand disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sdirectors as well as evaluating the overall presentation of the standalone Ind ASfinancial statements.

7. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone Ind AS 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 2018 and its profit total comprehensive income its cash flow and the change inequity for the year ended on that date.

Key Audit Matters

9. Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.

Report on Other Legal and Regulatory Requirements

10. 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.

11. 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 including other comprehensiveincome the cash flows and Change in Equity dealt with by this Report are in agreementwith the books of account;

d) In our opinion the aforesaid standalone Ind AS financial statements comply with theAccounting Standards prescribed 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 the directors as on March31 2018 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) of theAct;

f) With respect to the internal financial controls with reference to the financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in ‘Annexure B'. Our report expresses an unmodified opinion on theinternal financial controls with reference to the financial reporting.

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 standaloneInd AS financial statements;

ii) The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses;

iii) An amount of Rs. 80873/- being unpaid dividend account which is outstanding sincefor more than 7 years are required to be transferred to the Investor Education andProtection Fund by the Company.

For B.N. Kedia & Co.

Chartered Accountants F.R.N. 001652N

(CA S.K. Kedia) Partner

Membership No.: 052579

Place: Mumbai Dated: 21/08/2018

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 year-end balance of such loan aggregate to Rs9481563/-and Rs. 9123713/- 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 312018 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 312018 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. An amount of Rs. 80873/- being unpaid dividend account which is outstandingsince for more than 7 years are required to be transferred to the Investor Education andProtection 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 B.N. Kedia & Co.

Chartered Accountants F.R.N. 001652N

(CA S.K. Kedia) Partner

Membership No.: 052579

Place: Mumbai Dated: 21/08/2018

‘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 with reference to the financial reportingunder Clause (i) of Subsection 3 of Section 143 of the Act.

We have audited the internal financial controls with reference to the financialreporting of M/s INANNA FASHION AND TRENDS LIMITED (Formally known as M/s. FRONTLINEBUSINESS SOLUTIONS LIMITED) (‘the Company") as of March 312018 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

1. The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal financial controls with reference to thefinancial reporting 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 and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation of reliablefinancial information as required under the Act.

Auditors' Responsibility

2. Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to the financial reporting 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 Act to the extentapplicable to an audit of internal financial controls both applicable to an audit ofinternal financial controls and both issued by the ICAI. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about internal financial controls with reference to thefinancial reporting was established and maintained and if such controls operatedeffectively in all material respects.

3. Our audit involves performing procedures to obtain audit evidence about the adequacyof the internal financial controls with reference to the financial reporting and theiroperating effectiveness. Our audit of internal financial controls with reference to thefinancial reporting included obtaining and understanding of internal financial controlswith reference to the financial reporting assessing the risk that a material weaknessexists and testing and evaluating the design and operating effectiveness of internalcontrol based on the assessed risk. The procedures selected depend on the auditor'sjudgement including the assessment of the risks of material misstatement of the financialstatements 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 withreference to the financial reporting.

Meaning of internal financial controls with reference to the financial reporting

5. A company's internal financial controls with reference to the financial reporting isa process designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial controlswith reference to the 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 disposition of the assets of the company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company's assets that could have a material effect on the financialstatements.

Inherent Limitations of internal financial controls with reference to the financialreporting

6. Because of the inherent limitations of internal financial controls with reference tothe financial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or

fraud may occur and not be detected. Also projections of any evaluation of theinternal financial controls with reference to the financial reporting to future periodsare subject to the risk that the internal financial controls with reference to thefinancial reporting may become inadequate because of changes in conditions or that thedegree 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 with reference to the financial reporting and such internal financialcontrols with reference to the financial reporting were operating effectively as at March312018 based on the internal financial controls with reference to the 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.

For B.N. Kedia & Co.

Chartered Accountants

F.R.N. 001652N

(CA S.K. Kedia)

Partner

Membership No.: 052579

Place: Mumbai

Dated: 21/08/2018