| We have audited the accompanying financial statements of INANNA FASHION
AND TRENDS LIMITED (Formally known as M/s. FRONTLINE BUSINESS SOLUTIONS
LIMITED) ("the Company"), which comprise the Balance Sheet as at March
31, 2015, the Statement of Profit and Loss and Cash Flow Statement for
the year then ended, and a summary of significant accounting policies
and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act.
Those Standards require that we comply with ethical requirements and
plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free from material misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company's
preparation of the financial statements that give a true and fair view
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
whether the Company has in place an adequate internal financial
controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by the Company's directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide 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
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at March 31, 2015, and its profit and its cash flows for the year ended
on that date.
Report on Other Legal and Regulatory Requirements
1. 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.
2. As required by Section 143(3) of the Act, we report that;
a) We have sought and obtained all the information and explanations
which to the best of 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 the Company 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 Statement dealt with by this Report are in agreement with the
books of account;
d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards 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 March 31, 2015, taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act;
f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and 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 financial position.
ii) The Company did not have any long term contracts including
derivative contracts for which there were any material foreseeable
losses :
iii) There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
Annexure to Independent Auditor's Report
(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory
Requirements' section of our report of even date)
(i) In respect of its fixed assets :
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b) The Company has a programme of physical verification of all its
fixed assets in a phased manner which, in our opinion, is reasonable
having regard to the size of the Company and the nature of its assets.
In accordance with such a programme, certain fixed assets were
physically verified by the management during the year. According to the
information and explanation given to us, no material discrepancies were
noticed on such verification.
(ii) In respect of its inventories :
a) As explained to us, the inventories were physically verified during
the year by the Management at reasonable intervals.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the Management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were observed during the
course of physical verification.
(iii) The Company has granted interest free unsecured loans to four
parties covered in the register maintained under Section 189 of the
Companies Act, 2013. The maximum amount outstanding during the year and
year end balance of such loan aggregate to Rs. 2.04 Crore and Rs. 0.57
crore respectively. Since the loans are repayable on demand the
question of overdue amount does not arise.
(iv) There is an adequate internal control system commensurate with the
size of the Company and the nature of its business with regard to
purchases of inventory and fixed assets and the sale of goods and
services. During the course of our audit, we have not observed any
major weakness in such internal control system.
(v) According to the information and explanations given to us, the
Company has not accepted any deposit from the public as per directives
issued by the Reserve Bank of India and the provisions of section 73 to
76 or any other relevant section of the Companies Act and the rules
framed thereunder.
(vi) The Central Government has not prescribed the maintenance of cost
records under section 148(1) of the Act for any of the services
rendered by the Company.
(vii) According to the information and explanations given to us in
respect of statutory dues ;
a) The Company has generally been regular in depositing undisputed
statutory dues including provident fund, employees' state insurance,
income-tax, sales tax, wealth tax, service tax, customs duty, excise
duty, value added tax, cess and any other statutory dues with the
appropriate authorities.
b) There were no undisputed amount payable in respect of Provident
fund, Employees' State Insurance, Income tax, Sales tax, Service tax
and any other material statutory dues in arrears as at March 31, 2015
for a period of more than six months from the date they become payable.
c) Details of Sales tax dues which have not been deposited as on March
31,2015 on account of dispute are given below:
Name of Statue Nature of dues Amount Period
JCCI Penalty 534523/- 1991-92
Sales tax Assessment due 647571/- 1996-97
Name of Statue Forum where dispute
is pending Appeal
JCCI Appeal
Sales tax Appeal
d) There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
(viii) The Company has accumulated losses at the end of the financial
year. However it has not incurred cash losses during the financial year
under report and immediately preceding financial year.
(ix) In our opinion and according to the information and explanations
given to us, the Company does not have any borrowing from any bank,
financial institutions and debenture holders.
(x) In our opinion and according to the information and explanations
given to us, the Company has not given any guarantees for loans taken
by others from banks and financial institutions.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not taken term loans during the year.
(xii) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no material fraud
on the Company has been noticed or reported during the year.
FOR P. C. BARADIYA & CO.
CHARTERED ACCOUNTANTS
FIRM REGN. NO. 101017W
K.C. KANKARIYA
PARTNER
MEMBERSHIP NO: 43951
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