Inanna Fashion and Trends Limited(Formerly known as Frontline Business Solutions Limited)
25th
Annual Report 2017- 2018
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
CORPORATE INFORMATION
BOARD OF DIRECTORSMr. Natwar Sureka - Managing Director (Resigned from 27/07/2018)Mrs. Manju Sureka - Non Independent Non-Executive Director (Resigned from 27/07/2018)Mr. Brijkishore Ruia - Independent Director (Resigned from 27/07/2018)Mr. Sandeep Mhaske - Independent Director (Resigned from 27/07/2018) Mr. Rahul Saraf - Whole-time Director (Appointed from 27/07/2018) Mr. Rishabh Sharma - Independent Director (Appointed from 27/07/2018) Ms. Purnima Parashar - Independent Director (Appointed from 27/07/2018) Mrs. Gita Devi Agarwal - Non-Executive Director (Appointed from 27/07/2018)
STATUTORY AUDITORS B. N. Kedia & Co Chartered Accountants
REGISTERED OFFICE 103, Hubtown Solaris, N S Phadke Marg, Andheri (East), Mumbai-400069, Maharashtra, India
REGISTRAR AND Universal Capital Securities Private LimitedTRANSFER AGENT (Formerly known as Mondkar Computers Private Limited) 21, Shakil Niwas, Opp. Satya Saibaba, Temple, Mahakali Caves Road, Andheri (East), Mumbai-400 093.
BANKERS Kotak Bank ICICI Bank IDBI Bank HDFC Bank
ANNUAL GENERAL MEETING
Day: Friday
Date: 28th September, 2018
Venue: FM Banquet, Mini Hall,
8/B, Udyog Nagar, Kamath Club Lane,
OffS.V.Road,GoregaonWest,Mumbai400062
Time: 11.00AM
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
Contents Page No.Notice 3DirectorsReport 17ManagementDiscussionandAnalysis 33CorporateGovernanceReport 35AuditorsReport 48Balance Sheet 54Profit&LossAccount 55Cash Flow Statement 56Change in Equity 57NotestotheAccounts 58AttendanceSlipProxy Form
Important Communication to Members
TheMinistryofCorporateAffairshastakena“GreenInitiativeintheCorporateGovernance”byallowingpaperlesscompliancebytheCompaniesandhasissuedcircularsstatingthatserviceofnotice/documentsincludingAnnulReportcanbesentbye-mailtoitsMembers.ToSupportthisgreeninitiativeoftheGovernmentinfullmeasure,Memberswhohavenotregisteredtheire-mailaddress,sofar,arerequestedtoregister theire-mailaddress, inrespectofelectronicholdingswiththeDepositorythroughtheirconcernedDepositoryParticipants.MemberswhoholdsharesinphysicalformarerequestedtoregisterthesamewiththeCompany’sRegistrarandTransferAgent,UniversalCapitalSecuritiesPrivateLimitedbysendinge-mailtoinfo@unisec.in
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
Inanna Fashion and Trends LimitedRegistered office: 103, Hubtown Solaris,
NSPhadkeMarg,Andheri(East),Mumbai-400069,Maharashtra,India
CIN:L17200MH1994PLC076018Website:http://frontlinegroup.in/
Email:[email protected]. No. :022-66067200FaxNo.66067270
NOTICE OF ANNUAL GENERAL MEETINGNOTICE isherebygiven that theTwenty-fifthAnnualGeneralMeetingof Inanna Fashion and Trends Limited (Formerly known as Frontline Business Solutions Limited) will be held on Friday, 28thSeptember,2018at11.00AMatFMBanquet,MiniHall,8/B,UdyogNagar,KamathClubLane,OffS.V.Road,GoregaonWest,Mumbai400062to transact the following business:
ORDINARY BUSINESS: 1. Toconsiderandadopt theAuditedFinancialStatementsof theCompany for thefinancial yearended31st
March2018, including theAuditedBalanceSheetasat31stMarch,2018, thestatementofProfitandLossAccountfortheyearendedonthatdatetogetherwiththereportoftheDirectors’andAuditor’sthereon.
SPECIAL BUSINESS: 2. Appointment of Mr. Rishabh Sharma (DIN: 08051566) as a Non Executive Independent Director Toconsiderand if thought fit, topass,withorwithoutmodification(s)asmaybedeemedfit, the following
resolutionasOrdinaryResolution:
“RESOLVED THAT Mr.RishabhSharma(DIN:08051566),whowasappointedasanAdditionalDirectorofthecompanybytheBoardofDirectorswitheffectfromJuly27,2018intermsofSection161(1)oftheCompaniesAct,2013andwhosetermsoftheofficeexpiresatthisAnnualGeneralMeetingandinrespectofwhomtheCompanyhasreceivedanoticeinwritingfromamemberproposinghiscandidaturefortheofficeofdirectorbeandisherebyappointedasanIndependentDirectoroftheCompanyintermsofsection149,152andotherapplicableprovisions,ifany,oftheCompaniesAct,2013(Act)andtheRulesframedthereunder,readwithScheduleIVtotheAct,asamendedfromtimetotime,toholdofficefor5(Five)consecutiveyearsfromtheconclusionofthisAnnualGeneralMeeting.
3. Appointment of Ms. Purnima Parashar (DIN: 07675850) as a Non Executive Independent Director Toconsiderand if thought fit, topass,withorwithoutmodification(s)asmaybedeemedfit, the following
resolutionasOrdinaryResolution:
“RESOLVED THATMs.PurnimaParashar(DIN:07675850),whowasappointedasanAdditionalDirectorof thecompanyby theBoardofDirectorswitheffect fromJuly27,2018 in termsofSection161(1)of theCompaniesAct,2013andwhosetermsoftheofficeexpiresatthisAnnualGeneralMeetingandinrespectofwhomtheCompanyhasreceivedanoticeinwritingfromamemberproposinghercandidaturefortheofficeofdirectorbeandisherebyappointedasanIndependentDirectoroftheCompanyintermsofsection149,152andotherapplicableprovisions,ifany,oftheCompaniesAct,2013(Act)andtheRulesframedthereunder,readwithScheduleIVtotheAct,asamendedfromtimetotime,toholdofficefor5(Five)consecutiveyearsfromtheconclusionofthisAnnualGeneralMeeting.
4. Appointment of Mrs. Gita Devi Agarwal (DIN: 08126967) as a Non Executive Director Toconsiderand if thought fit, topass,withorwithoutmodification(s)asmaybedeemedfit, the following
resolutionasOrdinaryResolution:
“RESOLVED THATMrs.GitaDeviAgarwal(DIN:08126967),whowasappointedasanAdditionalDirectorof thecompanyby theBoardofDirectorswitheffect fromJuly27,2018 in termsofSection161(1)of theCompaniesAct,2013andwhosetermsoftheofficeexpiresatthisAnnualGeneralMeetingandinrespectofwhomtheCompanyhasreceivedanoticeinwritingfromamemberproposinghercandidaturefortheofficeofdirectorbeandisherebyappointedasanNonExecutiveDirectoroftheCompanyliabletoretirebyrotationintermsofsection149,152andotherapplicableprovisions,ifany,oftheCompaniesAct,2013(Act)andtheRulesframedthereunderasamendedfromtimetotime.
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
5. Appointment of Mr. Rahul Saraf (DIN: 01494992) as Whole-time Director of the Company Toconsiderand if thought fit, topass,withorwithoutmodification(s)asmaybedeemedfit, the following
resolutionasaSpecialResolution
“RESOLVED THAT Mr.RahulSaraf(DIN:01494992)whowasappointedasanAdditionalDirectorbytheBoardofDirectorsoftheCompanyonJuly27,2017andaspertheprovisionofSection161(1)oftheCompaniesAct,2013whosetermsoftheofficeexpiresatthisAnnualGeneralMeetingandinrespectofwhomtheCompanyhasreceivedanoticeinwritingfromamemberproposinghiscandidaturefortheofficeofDirectorbeandisherebyappointedasanExecutiveDirectoroftheCompany.
“RESOLVED FURTHER THAT inaccordancewith theprovisionsofSections196,197and203readwithScheduleVandallotherapplicableprovisionsoftheCompaniesAct,2013andtheCompanies(Appointmentand Remuneration of Managerial Personnel) Rules, 2014 (including any statutory modification(s) or re-enactment(s)thereofforthetimebeinginforce),approvaloftheCompanybeandisherebyaccordedfortheappointmentandtermsofremunerationpayableto,includingtheremunerationtobepaidintheeventoflossorinadequacyofprofitinanyfinancialyearduringthetenureofappointmentofMr.RahulSaraf(DIN:01494992)asWhole-timeDirectoroftheCompany,foraperiodofthreeyearscommencingfromJuly27,2018,toJuly26,2021,subjecttoretirementbyrotation,onthetermsandconditionsassetoutintheexplanatorystatementannexedtotheNoticeconveningthisMeeting,with libertytotheBoardofDirectors(hereinafterreferredtoas“theBoard”whichtermshallbedeemedtoincludetheNominationandRemunerationCommitteeoftheBoard)toalterandvarythetermsandconditionsofthesaidappointmentand/orremunerationasitmaydeemfitandasmaybeacceptabletoMr.RahulSaraf(DIN:01494992),subjecttothesamenotexceedingthelimitsspecifiedunderScheduleVtotheCompaniesAct,2013oranystatutorymodification(s)orre-enactment(s)thereof”
RESOLVED FURTHER THAT the Board be and is hereby authorized to do all such acts, deeds, things and to takeallsuchstepsasmaybenecessary,properorexpedienttogiveeffecttothisresolution.
6. Increase of Authorised Share Capital Toconsiderand if thoughtfit, topass,withorwithoutmodification(s), the following resolutionasaSpecial
Resolution:
“RESOLVED THAT pursuant to provision ofSection 61(1)(a) of theCompaniesAct, 2013, and any otherapplicable provisions and the relevant rules framed there under and in accordancewith the provisions oftheArticlesofAssociationoftheCompany,theAuthorisedShareCapitaloftheCompanybeandisherebyincreased from Rs. 12,50,50,000/-(Rupees Twelve Crores Fifty Lacs Fifty Thousand Only) divided into2,50,10,000EquitysharesofRs.5/-(RupeesFiveonly)eachtoRs.20,00,00,000/-(RupeesTwentyCroresonly)dividedinto4,00,00,000EquitySharesofRs.5/-(RupeesFiveonly)each.
RESOLVED FURTHER THATtheClauseNo.VofMemorandumofAssociationoftheCompanybealteredasbelow
Clause V:V. TheAuthorisedShareCapitaloftheCompanyisRs.20,00,00,000/-(RupeesTwentyCroresonly)divided
into4,00,00,000EquitySharesofRs.5/-(RupeesFiveonly)each,withpowerstoincreaseorreduceorvarythecapitaloftheCompanyand/orthenominalvalueofthesharesandpowertodividethesharesinthecapitalforthetimebeingintoseveralclassesandattachtheretorespectivelysuchpreferential,specialrights,privileges,conditionsorrestrictionsasmaybedeterminedbyorinaccordancewiththeArticlesofAssociationoftheCompanyandtovary,modifyorabrogateanysuchrights,privileges,conditionsorrestrictionsinsuchmannerasmay,forthetimebeing,beprovidedbytheArticlesofAssociationoftheCompanysubjecttotheprovisionsofthelawforthetimebeinginforce.”
RESOLVED FURTHER THAT the Board of Directors of the Company be and are hereby severallyauthorizedtotakenecessarystepsforthepurposeofmakinge–filingsforregistrationoftheamendmenttotheMemorandumofAssociationwithRegistrarofCompaniesandtodoallsuch,deedsasmayberequiredtogiveeffecttotheaforesaidresolution.”
7. Change in main object of the Memorandum of Association of the company To consider and, if thought fit to pass,with orwithoutmodification(s), the following resolutionsasSpecial
Resolution:
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
“RESOLVED THATpursuanttoprovisionofSection13ofCompaniesAct,2013andotherapplicableprovisionsoftheCompaniesAct,2013includinganystatutorymodification(s)orre-enactmentthereof,forthetimebeinginforceandtheRulesframedthereunder,asamendedfromtimetotime,andsubjecttotheapprovaloftheRegistrarofCompanies,Maharashtra,Mumbai(“ROC”) and/or of any other statutory or regulatory authority, asmaybenecessary,PartAofClauseIIIoftheObjectoftheMemorandumofAssociationoftheCompanybeand is hereby altered as follows
• replacingexistingclauses(1),(1A)and(1B)withNewclause(1)thereof:
(1)To carry on the business of manufacturing, buying, selling, importing, exporting, transporting, storing, developing,promoting,marketingorsupplying,trading,dealinginanymannerwhatsoeverinalltypeofgoodsincluding business of ironmasters, steel makers, steel converters, ferrous and non-ferrous metals, cokemanufacturers,miners,smelters,engineersandironfounderinalltheirrespectivebranches,preciousmetalsandrareearthmetalsonretailaswellasonwholesalebasisinIndiaorelsewhereandtodealinallkindsofagri-commodities,timber,oleo-chemicals,petro-chemicalsandfattyacids,cottoncastor&derivatives,edibleandnon-edibleoils, lubricatingoils,naturalgases,bitumen, coffeeetc.and toactasexhibitorsof variousgoods,servicesandmerchandiseandtodeal in textiles,cotton,silk,artsilk, rayon,nylon,syntheticfibers,staple fibers, polyester,worsted,wool, hempand other fibrematerials, yarn, cloth, linen, rayon and othergoods or merchandise whether textile felted, netted or looped in all kinds of plastic raw materials and products, polymersandpolymerproductsandadditives.Toinvestthecapitalandothermoneysofthecompanyinthepurchaseoruponthesecurityofshares,stocks,units,debentures,debentures-stocks,bondsetc.andtocarryonthebusinessofrealestatecontractorsandbuilders.
RESOLVED FURTHER THAT theexistingMemorandumofAssociationof theCompany,dulymodifiedasaforesaidandacceptedbythemembers,beadoptedastheMemorandumofAssociationoftheCompany;
RESOLVED FURTHER THAT theapprovalofthemembersoftheCompanybeandisherebyaccordedforcommencingandcarryingonnewbusinessandactivitiesasincludedintheMainobjectoftheCompanyasalteredaboveatsuchtimeortimesastheBoardmayinitsabsolutediscretiondeemfit;
RESOLVED FURTHER THATanyDirectoroftheCompanybeandisherebyseverallyauthorizedtodoallsuchacts,deedsandthingsandtosignallsuchdocuments,papersandwritingsasmaybenecessarytogiveeffecttotheresolution,takesuchfurtherstepsinthisregard,asmaybeconsidereddesirableorexpedientbytheBoardinthebestinterestoftheCompany.”
8. Amendments to clause III B and clause III C of the Memorandum of Association To consider and, if thought fit to pass,with orwithoutmodification(s), the following resolutionsasSpecial
Resolution:
“RESOLVED THAT pursuanttotheprovisionsofSection4(1)(c)and13andallotherapplicableprovisions,ifany,oftheCompaniesAct,2013(includinganyamendmenttheretoorre-enactmentthereof),andtheRulesframedthereunder,asamendedfromtimetotimeandsubjecttotheapprovaloftheRegistrarofCompanies,Maharashtra,Mumbai(“ROC”)and/orofanyotherstatutoryorregulatoryauthority,asmaybenecessary,theexistingClauseIIIBandClauseIIICoftheMemorandumofAssociation,inrelationtotheobjectsincidentalorancillarytotheattainmentofthemainobjectsandotherobjects,beandisherebyamendedasfollows:
• Bydeletingsubclause2 to5of theClauseIII (B)of theobjects thatare incidentalorancillary to theattainmentofthemainobjectsoftheMemorandumofAssociation
• ByreplacingtitleoftheClauseIII(B)oftheobjectsthatareincidentalorancillarytotheattainmentofthemainobjectsoftheMemorandumofAssociationwiththetitle“MATTERSWHICHARENECESSARYFORFURTHERANCEOFTHEOBJECTSSPECIFIEDINCLAUSEIII(A)ARE.”
• Re-numberingtheClausenumbersinexistingClauseIIIBpursuanttotheaboveamendments
• ByremovingandcompletelydeletingtheClauseIIICoftheobjectclausethatisOTHEROBJECTS.
RESOLVED FURTHER THAT all theDirectorsof theCompanybeandareherebyseverallyauthorized tofile,sign,verifyandexecuteallsuche-forms,papersordocuments,asmayberequiredanddoallsuchacts,deeds,mattersandthingsasmaybenecessaryandincidentalforgivingeffecttothisResolution,includingagreeingtoanychangeasmayberequiredbytheROCand/oranystatutory/regulatoryauthority.
9. Change of name of the company Toconsiderand if thought fit, topasswithorwithoutmodification(s), the following resolutionasaSpecial
Resolution:
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
“RESOLVED THATpursuanttoSections4,13andotherapplicableprovisions,ifany,oftheCompaniesAct,2013,relevantrulesmadethereunderandotherapplicableenactments,asamendedfromtimetotimeandsubjecttotheapprovaloftheCentralGovernment,theMembersoftheCompanyherebyaccordtheirapprovalfor changing thenameof theCompany from “InannaFashionandTrendsLimited”’ to “SevenResourcesLimitedorMaxgrowIndiaLimited”oranyothernameasmaybeapprovedbytheRegistrarofCompanies,MaharashtraMumbai.
RESOLVED FURTHER THATuponthechangeofnameoftheCompanybecomingeffective,thename“InannaFashionandTrendsLimited”whereveritoccursintheMemorandum,ArticlesofAssociationanddocuments,etcbesubstitutedbythename“SevenResourcesLimitedLimitedorMaxgrowIndiaLimited”or any other name asmaybeapprovedbytheRegistrarofCompanies,Maharashtra,Mumbai.
RESOLVED FURTHER THAT the Board of Directors of the Company be and are hereby authorized to make necessaryapplication(s)with theCentralGovernment /RegistrarofCompanies,Maharashtra,Mumbai forseekingtheirapprovaltochangethenameoftheCompanyandtodoallsuchacts,deedsandthingsasmaybedeemedexpedientandnecessaryintheirabsolutediscretiontogiveeffecttothisResolutioninthebestinterestsoftheCompany.”
10. Reclassification of Promoters and To Notify the Change in Promoters & Key Managerial Personnel of the Company
Toconsiderand if thought fit, topasswithorwithoutmodification(s), the following resolutionasaSpecialResolution:
“RESOLVED THAT pursuanttoRegulation31AandotherrelevantprovisionsoftheSEBI(ListingObligationsandDisclosuresRequirements)Regulations, 2015andapplicable provisions if anyof theCompaniesAct,2013 and in accordancewith theSharePurchaseAgreement dated January 30, 2018 executed betweenApogeeBusinessSolutionsPvtLtd,ManjuNatwarSureka,TusharN.Surekha,NatwarB.Sureka(hereinafterreferredtoas“ExistingPromoterandPromoterGroup”or“Seller”)andMr.RahulSaraf(“NewPromoter”or“Acquirer”)theapprovaloftheMembersbeandisherebyaccordedtodesignatetheAcquirerasPromoterofthe Company in place of the Existing Promoters of the Company
RESOLVED FURTHER THATuponreceiptofapprovalfromStockExchangeforthereclassificationMr.RahulSaraf shall bePromoter of theCompany in place of “ExistingPromoters”, theCompany shall effect suchreclassificationinthestatementofshareholdingpatternfromimmediatesucceedingquarterunderRegulation31ofSEBI(ListingObligation&DisclosureRequirements)Regulations,2015andalsoundertakecomplianceoftheSEBI(SubstantialAcquisitionofSharesandTakeovers)Regulations,2011,SEBI(ProhibitionofInsiderTrading)Regulations,2015,andotherapplicableprovisionsofSEBIRegulations.
RESOLVED FURTHER THAT theCompanywasinreceiptofrequestsforreclassificationfrom“Acquirer”toclassifythemas“Promoter&PromoterGroup” inplaceof“ExistingPromotersandPromoterGroup”oftheCompanyunderRegulation31AofSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015(‘ListingRegulations,2015’).
RESOLVED FURTHER THAT any of the Directors of the Company or the Company Secretary or Compliance OfficerorsuchotherpersonasauthorizedbytheBoard,beandisherebyauthorizedtosubmitapplicationforreclassificationtoStockExchange(s),whereinthesecuritiesoftheCompanyarelistedoranyotherregulatorybody,asmayberequired,andtotakesuchstepsexpedientordesirabletogiveeffecttothisresolution.”
11. Ratification and Approval of Utilisation of proceeds received from issue of equity shares of the Company on Preferential Basis
Toconsiderand if thought fit, topasswithorwithoutmodification(s), the following resolutionasaSpecialResolution:
“RESOLVED THAT theCompanyhavingallotted77,11,039equitysharesoffacevalueRs.10/-(RupeesTenOnly)pershareonMarch2,2011offeredatapriceofRs.12.32/-(RupeesTwelveandThirtyTwoPaisaOnly)pershare(includingpremiumofRs.2.32/-(RupeesTwoandThirtyTwoPaiseOnly)pershare)and9,50,000equitysharesoffacevalueRs.10/-(RupeesTenOnly)pershareonJune20,2011offeredatapriceofRs.20/-(RupeesTwentyOnly)pershare(includingpremiumofRs.10/-(RupeesTenOnly)pershare)and8,00,000equitysharesoffacevalueRs.10/-(RupeesTenOnly)pershareonOctober30,2012offeredatapriceofRs.20/-(RupeesTwentyOnly)pershareincludingpremiumofRs.10/-(RupeesTenOnlypershare);
ANDWHEREAS theCompany receiveda totalsumofRs.13,00,00,000.48/- (RupeesThirteenCroresandFortyEightPaiseOnly)againsttheabovestatedallotmentof94,61,039equitysharesoffacevalueRs.10/-pershare;
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
ANDWHEREAStheCompanyhasutilizedtheabovestatedfundsinthemannerstatedbelow:
Sr. No. Payment to Purpose Amount Utilized1 Teknopoint Mercantile
CompanyPvt.Ltd.Purchase of 41,50,000 equity shares at afacevalueofRs10/-pershareofTeknopointMercantileCompanyPvt.Ltd.
Rs.4,15,00,000.00
2 Sainath Herbal Care Marketing Pvt.Ltd.
Purchase of 32,00,000 equity shares at a face valueofRs10/-pershareofSainathHerbalCareMarketingPvt.Ltd.
Rs.3,20,00,000.00
3 Neil Information TechnologyLtd.
SoftwarePurchase -Company has acquiredCRM software from Neil InformationTechnologyLtd.
Rs.20,00,000.00
4 ShreeMangalJewelsPvt.Ltd ForpurchaseofJewelleryProducts Rs.1,45,00,000.005 PerfectOctavePrivateLimited Perfect Octave Private Limited will be
conducting advertising and designingcampaign for company’s foray in fashion and clothing sector. Based on Letter Of Intent aonetimeinterestfreesecuritydepositofRs.1croreisprovidedbythecompany.
Rs.86,00,000.00
6 SwastikLegalConsultantsPvt.Ltd.
Investment for 10,00,000 OptionallyConvertible Preference Shares of Rs.10/-each,convertibleafteraperiodof2yearsinto10,00,000equityshares.
Rs.50,00,000.00
7 Fastline Multitrade Pvt. Ltd.(FMPL)
Based on Letter of Intent a onetime interestfreesecuritydepositofRs1croreisgivenforusageofInfrastructureandNetworkofFMPLinSAARCforexportandtradingofnewrangeofproducts.
Rs.1,00,00,000.00
8 WorkingCapitalrequirement Placing of purchase orders, management fees, commissions, payment for salaries on behalfofHRfirm.
Rs.1,64,00,000.48
Total Rs.13,00,00,000.48
ANDWHEREASBSEvideletterdatedJuly27,2016allegedthattheCompanyhadmis-utilisedthefundsraisedandhadsuspendedthetradinginequitysharesoftheCompany;
ANDWHEREAStheCompanyhadprovidedappropriatelyrepliestoBSELtd.andhadalsoreceivedanorderfromHon’bleSecuritiesAppellateTribunalinfavouroftheCompanyforresumptionoftrading;
ANDWHEREASBSELtd.videitsnoticenumber20160613-29datedJune13,2018requiringthecompanieswhichundergonesurveillancemeasuresformis-utilisationoffundstoundertake“Mandatorydisclosurestobemadebythecompaniesw.r.t.mis-utilisationofpreferentialproceedsalongwithensuingquarterlyunaudited/auditedfinancialresultsandsametoberatifiedbytheshareholdersofthecompanywithin3monthsfromintimation”;
ANDWHEREASthemembersoftheCompany,pursuanttothesaidBSELtd.noticenumber20160613-29datedJune13,2018,theCompany,herebyratifyandapprovetheutilizationoffundsbytheCompanyinthemannerstatedinthetableearlier.”
On behalf of the Board of Directors
Place: Mumbai Rahul SarafDate: 21st August, 2018 Whole-time DirectorRegd. Office: 103,HubtownSolaris,NSPhadkeMarg,Andheri(East),Mumbai-400069,Maharashtra
DIN: 01494992
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
NOTES: 1. A member entitled to attend and vote at the meeting may appoint a proxy to attend and vote on a poll
on his behalf. A proxy need not be a member of the Company.ApersoncanactasproxyonbehalfofnotexceedingfiftyMembersandholdingintheaggregatenotmorethan10%ofthetotalEquityShareCapitaloftheCompany.AnyMemberholdingmorethan10%ofthetotalEquitysharecapitaloftheCompanymayappoint a single person as proxy and in such a case, the said person shall not act as proxy for any other person ormember.Theinstrumentappointingproxyshouldbedulycompletedandinordertobeeffectiveshouldbedulystamped,completedandsignedandmustbedepositedattheRegisteredOfficeoftheCompanynotlessthan48hoursbeforethecommencementoftheMeeting.(ProxyformMGT-11isannexedherewith).
2. TheCompany’sRegistrarandShareTransferAgentforitsShareRegistrywork(PhysicalandElectronic)isM/sUniversalCapitalSecuritiesPrivateLimited21,ShakilNiwas,Opp.SatyaSaibabaTemple,MahakaliCavesRoad,Andheri(East),Mumbai-400093.
3. PursuanttoSection91oftheCompaniesAct,2013,theRegisterofMembersandShareTransferBooksofEquity Shares of the Company will remain closed from September 22, 2018 to September 28, 2018 (Both days inclusive).
4. MembersarerequestedtobringtheirattendanceslipalongwiththeircopyofAnnualReporttotheMeeting.
5. CorporateMembersarerequestedtosendtotheRegisteredOfficeoftheCompany,adulycertifiedcopyoftheBoardResolution,pursuanttoSection113oftheCompaniesAct,2013,authorisingtheirrepresentativetoattendandvoteattheAnnualGeneralMeeting.
6. Membersarerequestedtonotify immediatelyaboutanychangeintheiraddress/e-mailaddress/dividendmandate / bank details to their Depository Participant (DP) in respect of their shareholding in Demat mode and inrespectoftheirphysicalshareholdingtotheCompany’sRegistrarandShareTransferAgent.
7. Memberswhoaredesirousofseekinganyfurtherinformationorclarification,ifany,particularlywithregardtotheaccountsarerequestedtowritetotheCompanyatleasttendaysinadvanceofthemeetingsothattheinformationcanbemadeavailableatthemeeting.
8. The informationregardingtheDirectorwho isproposedtobeappointedorre-appointed,asrequiredtobeprovidedunderSecuritiesandExchangeBoardof India (ListingObligationsandDisclosureRequirements)Regulations,2015,(“ListingRegulations”)andSecretarialStandardonGeneralMeetingsissued,isannexedhereto.
9. TheRegisterofDirectorsandKeyManagerialPersonnelandtheirshareholding,maintainedunderSection170oftheCompaniesAct,2013,willbeavailableforinspectionbythemembersattheAGM.
10. ThecopiesofAnnualReportarebeingdispatchedtoalltheshareholdersasareappearingintheregisterofmembersasonAugust24,2017.PursuanttoSection72oftheCompaniesAct,2013,membersholdingsharesinphysicalformareadvisedtofilenominationintheprescribedFormSH-13withtheCompany’ssharetransferagent.Inrespectofsharesheldinelectronic/dematform,themembersmaypleasecontacttheirrespectivedepositoryparticipant.
11. TheSecuritiesandExchangeBoardof India (SEBI)hasmandated the submissionofPermanentAccountNumber (PAN) by every participant in securities market. Members holding shares in electronic form are,therefore, requested to submit their PAN to their Depository Participants with whom they aremaintainingtheirdemataccounts.MembersholdingsharesinphysicalformcansubmittheirPANtotheCompanyortheCompany’sShareRegistrarsandTransferAgents.
12. MembersarerequestedtogivetheirvaluablesuggestionsforimprovementoftheservicesandarealsoadvisedtoquotetheirE-mailId’s,telephone/facsimileno.forpromptreplyoftheircommunications.
13. In compliance with the provisions of Section 108 of the CompaniesAct, 2013 read with Rule 20 of theCompanies (Management andAdministration) Rules, 2014 as amended by theCompanies (ManagementandAdministration)AmendmentRules, 2016and theprovisionsof theRegulation44of theSEBI (ListingObligationsandDisclosureRequirements)Regulations,2015 thecompany ispleased toprovidemembersfacilitytoexercisetheirvotingrightstocasttheirvoteelectronically,throughthee-votingservicesprovidedbyCDSL,onallresolutionssetforthinthisNotice.
14. Voting through electronic means:
ThefacilityforvotingthroughballotpapershallbemadeavailableatAGMandthemembersattendingthemeetingwhohavenotcasttheirvotebyremotee-votingshallbeabletoexercisetheirrightatthemeetingthroughballotpaper.
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
Thememberswhohavecasttheirvotebyremotee-votingpriortotheAGMmayalsoattendtheAGMbutshallnotbeentitletocasttheirvoteagain.
Theremotee-votingperiodcommencesonTuesday,September25,2018(9.00a.m.)andendsonThursday,September27,2017(5.00pm).Duringthisperiodmembers’oftheCompany,holdingshareseitherinphysicalformorindematerializedform,asonthecut-offdateofSeptember21,2018maycasttheirvotebyremotee-voting.Theremotee-votingmoduleshallbedisabledbyCDSL forvoting thereafter.Once thevoteonaresolutioniscastbythemember,themembershallnotbeallowedtochangeitsubsequently.
15. Theinstructionsandprocessfore-votingareasunder:
Openyourwebbrowserduringthevotingperiodandlogontothee-votingwebsitewww.evotingindia.com.
Nowclickon‘Shareholders’tabtocastyourvotes.
Now, select the ‘Electronic Voting Sequence Number (EVSN)’ along with ‘Frontline Business Solutions Limited’ fromthedropdownmenuandclickon‘SUBMIT’.
NowEnteryourUserID(ForCDSL:16digitsbeneficiaryID,ForNSDL:8CharacterDPIDfollowedby8DigitsClientID,MembersholdingsharesinPhysicalFormshouldenterFolioNumberregisteredwiththeCompanyandthenentertheCaptchaCodeasdisplayedandClickonLogin.
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ClickontherelevantEVSNonwhichyouchoosetovote.
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
ClickontheResolutionfilelinkifyouwishtoviewtheentireNotice.
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16. Thevotingrightsofmembersshallbeinproportiontotheirsharesofthepaid-upequitysharecapitalintheCompanyasonthecut-of-datei.e.September21,2018.
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
EXPLANATORY STATEMENTPursuant to Section 102 of the Companies Act, 2013
PursuanttoSection102oftheCompaniesAct,2013(‘theAct’),thefollowingExplanatoryStatementsetsoutallmaterialfactsrelatingtothebusinessmentionedunderItemNos.2to11oftheaccompanyingNoticedatedAugust21,2018.
Item No. 2Mr.RishabhSharma(DIN:08051566)wasappointedasanAdditionalDirectorsbytheBoardofDirectorw.e.f.July27,2018.HeisapersonofintegrityandpossessesrelevantexpertiseandexperienceandiseligibleforappointmentinthepositionofanIndependentDirectoroftheCompanyandfulfillstheconditionsspecifiedbytheCompaniesAct,2013andtheSEBI(ListingObligationandDisclosureRequirement)Regulations,2015.TheBoardconsidersthathisassociationwillbebeneficialand in thebest interestof theCompany.TheNomination&RemunerationCommittee has recommended the appointment of Mr.RishabhSharma(DIN:08051566)asIndependentDirectoroftheCompany.
HehasgivenadeclarationtotheBoardthathemeetsthecriteriaofIndependentDirectorasprovidedundersection149(6)oftheAct.NoticesasrequiredunderSection160oftheCompaniesAct,2013havebeenreceivedfromamemberproposingcandidatureof the said IndependentDirector.Upon theconfirmationof appointmentof saiddirectorasIndependentDirectorbythemembersoftheCompany,theappointmentshallbeformalizedbytheissueofaletterofappointmentbytheCompanytothesaidIndependentDirector.
Hisbrief resume, thenatureofhisexpertise inspecific functionalareas,namesofcompanies inwhichheholdDirectorship,CommitteeMemberships/Chairmanshipsetc.,areseparatelyannexedhereto.
AcopyofdraftletterofappointmentasNon-ExecutiveIndependentDirectorsettingoutthetermsandconditionsoftheirappointmentisavailableforinspectionbymembersattheRegisteredOfficeoftheCompany.TheBoardofDirectorsrecommendstheordinaryresolutionforyourapproval.
HeisnotrelatedtoanyoftheDirectorsorKeyManagerialPersonnel(includingrelativesoftheDirectorsandKeyManagerialPersonnel)oftheCompanyintermsofSection2(77)oftheCompaniesAct,2013.
NoneoftheDirectorsorKeyManagerialPersonneloftheCompany(includingrelativesoftheDirectorsandKeyManagerial Personnel) other than Mr. Rishabh Sharma (DIN: 08051566), himself, is concerned or interested, financiallyorotherwise,inthisresolution.
Item No. 3Ms.PurnimaParashar(DIN:07675850)wasappointedasanAdditionalDirectorbytheBoardofDirectorsw.e.f.July27,2018.She isapersonof integrityandpossesses relevantexpertiseandexperienceand iseligible forappointment in the position of an IndependentDirector of theCompany and fulfills the conditions specified bytheCompaniesAct,2013andtheSEBI(ListingObligationandDisclosureRequirement)Regulations,2015.TheBoardconsidersthatherassociationwillbebeneficialandinthebestinterestoftheCompany.TheNomination&RemunerationCommittee has recommended the appointment ofMs.PurnimaParashar(DIN: 07675850) as IndependentDirectoroftheCompany.
Shehasgivenadeclarationto theBoardthatshemeetsthecriteriaof IndependentDirectorasprovidedundersection149(6)oftheAct.NoticesasrequiredunderSection160oftheCompaniesAct,2013havebeenreceivedfromamemberproposingcandidatureofthesaidIndependentDirector.UpontheconfirmationofappointmentofsaiddirectorasIndependentDirectorbythemembersoftheCompany,theappointmentshallbeformalizedbytheissueofaletterofappointmentbytheCompanytothesaidIndependentDirector.
Herbriefresume,thenatureofherexpertiseinspecificfunctionalareas,namesofcompaniesinwhichsheholdDirectorship,CommitteeMemberships/Chairmanshipsetc.,areseparatelyannexedhereto.
AcopyofdraftletterofappointmentasNon-ExecutiveIndependentDirectorsettingoutthetermsandconditionsoftheirappointmentisavailableforinspectionbymembersattheRegisteredOfficeoftheCompany.TheBoardofDirectorsrecommendstheordinaryresolutionforyourapproval.
SheisnotrelatedtoanyoftheDirectorsorKeyManagerialPersonnel(includingrelativesoftheDirectorsandKeyManagerialPersonnel)oftheCompanyintermsofSection2(77)oftheCompaniesAct,2013.
NoneoftheDirectorsorKeyManagerialPersonneloftheCompany(includingrelativesoftheDirectorsandKeyManagerial Personnel) other than Ms.PurnimaParasharherself,isconcernedorinterested,financiallyorotherwise,inthisresolution.
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
Item No. 4 Mrs.GitaDeviAgarwal(DIN:08126967)wasappointedasAdditionalDirectoreffectivefromJuly27,2018andholdofficeasDirectoruptothedateoftheensuingAGM.TheBoardconsidersthatherassociationwillbebeneficialandinthebestinterestoftheCompany.TheCompanyhasreceivednoticeunderSection160oftheCompaniesAct,2013 from a member proposing the candidature of Mrs.GitaDeviAgarwal as a Director of the Company, liable to retirebyrotationalongwiththeprescribeddeposit.Herbriefresume,thenatureofherexpertiseinspecificfunctionalareas,namesofcompaniesinwhichtheyholdDirectorship,CommitteeMemberships/Chairmanshipsetc.,areseparatelyannexedhereto.SheisnotrelatedtoanyoftheDirectorsorKeyManagerialPersonnel(includingrelativesoftheDirectorsandKeyManagerialPersonnel)oftheCompanyintermsofSection2(77)oftheCompaniesAct,2013.NoneoftheDirectorsorKeyManagerialPersonneloftheCompany(includingrelativesoftheDirectorsandKeyManagerial Personnel) other than Mrs.GitaDeviAgarwalherself,isconcernedorinterested,financiallyorotherwise,inthisresolution.Item No. 5Mr.RahulSaraf(DIN:01494992),hasbeenappointedasanAdditionalDirectoroftheCompanywitheffectfromJuly27,2018,pursuant to theprovisionsofArticlesofAssociationof thecompany readwithSection161(1)oftheCompaniesAct,2013,Mr.RahulSarafholdsofficeasDirectorofthecompanyuptothedateoftheensuingAnnualGeneralMeetingbut is eligible for appointment as aDirector.Anotice underSection160(1) of theActhasbeenreceivedsignifyingintentiontoproposeMr.RahulSarafasacandidatefortheofficeofDirectoroftheCompany.FurtherBoardapprovedtheappointmentofMr.RahulSaraf(DIN:01494992)asWhole-timeDirectoroftheCompanyforaperiodofthreeyearswitheffectfromJuly27,2018ontherecommendationofthenominationandremunerationcommittee,subjecttotheapprovaloftheshareholdersintheGeneralMeetingForthepurpose,anagreementhasbeenenteredintobytheCompanywiththeWhole-timeDirectoronJuly27,2018.ThemaintermsandconditionsofhisappointmentasWhole-timeDirector,ascontainedinthesaidagreementare furnished below:1) TermofAppointment:Three(3)yearswitheffectfromJuly27,20182) Remuneration:SinceCompanyisyettocommenceprofitableoperations,Mr.RahulSarafhasvolunteerednot
to draw remuneration from the company TheBoardthereforerecommendsthepassingoftheSpecialResolutionatItemNo.5oftheaccompanying
Noticeformember’sapprovalforappointmentofMr.RahulSarafasaWhole-timeDirectoroftheCompany,w.e.f.July27,2018
Mr.RahulSarafisinterestedintheresolution.Saveandexcepttheabove,noneoftheotherDirectorsoftheCompany is, in any way, concerned or interested in the resolution.
Item No. 6The present authorised capital of the company is Rs. 12,50,50,000/- (Rupees Twelve Crores Fifty Lacs FiftyThousandOnly)dividedinto2,50,10,000EquitysharesofRs.5/-(RupeesFiveonly)each.Inviewoftheexpansionplans of the company which require additional funds, it is proposed to increase the authorised equity share capital fromtheexisting limitofRs.12,50,50,000/-(RupeesTwelveCroresFiftyLacsFiftyThousandOnly)dividedinto2,50,10,000EquitysharesofRs.5/-(RupeesFiveonly)eachtoRs.20,00,00,000/-(RupeesTwentyCroresonly)dividedinto4,00,00,000EquitySharesofRs.5/-(RupeesFiveonly)each.TheResolutioncontainedinItemNo.6seekstoincreasetheAuthorisedShareCapitaloftheCompanyasaforesaidandtoaltertheMemorandumofAssociationandArticlesofAssociationoftheCompanyconsequentialtoincreaseintheAuthorisedShareCapitalof theCompany. Theproposal requires theconsentof themembers.TheBoardofDirectors recommends thattheproposalbeapproved.Noneofthedirectors,keymanagerialpersonneloftheCompanyandtheirrespectiverelativesareinanywayconcernedorinterested,financiallyorotherwise,intheresolutionItem no. 7 and 8TheBoardofDirectorsoftheCompanyinitsmeetingheldonJuly27,2018decidedtochangetheMainobjectoftheCompanyandventureintovibrantbusinessofmanufacturing,buying,selling,importing,exporting,transporting,storing,developing,promoting,marketingorsupplying, trading,dealing inanymannerwhatsoever inall typeofgoods including business of ironmasters, steelmakers, steel converters, ferrous and non-ferrousmetals, cokemanufacturers,miners,smelters,engineersandironfounderinalltheirrespectivebranches,preciousmetalsandrareearthmetalson retailaswellasonwholesalebasis in Indiaorelsewhereand todeal inall kindsofagri-commodities,timber,oleo-chemicals,petro-chemicalsandfattyacids,cottoncastor&derivatives,edibleandnon-edibleoils,lubricatingoils,naturalgases,bitumen,coffeeetc.andtoactasexhibitorsofvariousgoods,servicesandmerchandiseandtodealintextiles,cotton,silk,artsilk,rayon,nylon,syntheticfibers,staplefibers,polyester,
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
worsted,wool,hempandotherfibrematerials,yarn,cloth,linen,rayonandothergoodsormerchandisewhethertextile felted, netted or looped in all kinds of plastic raw materials and products, polymers and polymer products and additives.Toinvestthecapitalandothermoneysofthecompanyinthepurchaseoruponthesecurityofshares,stocks,units,debentures,debentures-stocks,bondsetc.andtocarryonthebusinessofrealestatecontractorsandbuilders.With theenactmentofnewCompaniesAct,2013, it is consideredexpedient toamend the formof theexistingMemorandumofAssociationtobeinaccordancewiththerequirementsundertheCompaniesAct,2013.IntermsofSection4(1)(c)oftheCompaniesAct,2013,theMemorandumofAssociationofacompanyistostatetheobjectsforwhichtheCompanyisproposedtobeincorporatedandanymatterconsiderednecessaryinfurtherancethereof.Assuch,therequirementsofseparatelyindicatingthe“mainobjects”,“incidentalorancillaryobjects”and“otherobjects”undertheerstwhilelegislationhaschanged.Accordingly,itisproposedtoreplacetheexistingheadingofClauseIIIB,andcompletelydeletethe“OtherObjects”intheexistingMemorandumofAssociationinordertocomplywiththeprovisionoftheCompaniesAct,2013andaccordinglyMemorandumofAssociationwillnolongercarryotherobjects.TheconsentoftheshareholdersbypassingaSpecialResolutionisrequiredinthisregard.TheshareholdersoftheCompanycanalsoobtainacopyofthesameattheRegisteredOfficeoftheCompany.AspertheprovisionsofSections13oftheCompaniesAct,2013,approvaloftheshareholdersisrequiredtobeaccordedalteration forchangingthemainobjectof the in theMemorandumofAssociationbywayofpassingaSpecialResolution.Hence,theresolutionisputupforshareholdersapproval.No Director or Key Managerial Personnel of the company has any interest in the resolution except as a member, if any,oftheCompany.Item No.9TheBoardofDirectorsoftheCompanyinitsmeetingheldonJuly27,2018decidedtochangethenameoftheCompany from “InannaFashion andTrends Limited” to “SevenResources Limited orMaxgrow India Limited”Toreflect thediversifiedbusinessactivities in thenameof theCompany, itwasdecidedtochangenameof theCompany.TheDirectorsbelievethatthechangeinthenameoftheCompanywhichisbeingundertakenaspartofcorporaterebrandingwouldmakethenameoftheCompanysimple,sharpandfocused.TheCompanyhasalreadyappliedtotheRegistrarofCompaniesabouttheavailabilityofnewname“SevenResourcesLimited or Maxgrow IndiaLimited”oranyothernameasapprovedbytheRegistrarofCompaniesforregistrationunderSections4,13andotherapplicableprovisions, ifany,of theCompaniesAct,2013,andsubject to theresolutionbeingpassedanapplicationwillbemadetotheCentralGovernmentforapprovalofthechangeofnameunderSection4and13oftheAct.Ifthechangeofnameisapproved,sharecertificatesalreadyissuedwillnotbecalledinonlyforthepurposeofexchangeintocertificatesbearingthenewname,butwillbesoexchangedasandwhentheexistingcertificatescomeintothepossessionofthecompanyandinthemeantimetheexistingcertificateswillcontinuetobeacceptedforallpurposesasindicatingentitlementtosharesoftheCompany.AspertheprovisionsofSections13oftheCompaniesAct,2013,approvaloftheshareholdersisrequiredtobeaccordedforchangingthenameoftheCompany&consequentalterationintheMemorandumofAssociationandArticlesofAssociationbywayofpassingaSpecialResolution.Hence,theresolutionisputupforshareholdersapproval.No Director or Key Managerial Personnel of the company has any interest in the resolution except as a member, if any,oftheCompany.Item no. 10Mr. Rahul Saraf had entered into a Share PurchaseAgreement (SPA) dated January 30, 2018 with ApogeeBusinessSolutionsPvtLtd,ManjuNatwarSureka,TusharNSurekha,NatwarBSureka erstwhile Promoters of theCompany,toacquire34,37,798(ThirtyFourLakhsThirtySevenThousandsevenHundredandNinety-eight)EquitySharesatapriceofRs.2/-(RupeesTwoOnly)perEquityShareoftheCompany.PursuanttotheexecutionoftheSPA,theAcquirersmadeanOpenOffertoallPublicShareholdersinaccordancewithRegulation3(1)and4oftheSEBI(SAST)Regulations2011toacquireupto94,44,260(NinetyFourLakhsFortyFourThousandTwoHundredSixtyOnly)EquitySharesconstituting26%(TwentySix)oftheShareCapitaloftheCompanyatanofferpriceofRs.8/-(RupeesEightOnly)perEquityShare.InaccordancewiththeSPAandOpenOffer,theacquirersshallbeclassifiedas thepromotersof theCompanyreplacing theexistingpromoterssubject to theapprovalofShareholdersasperRegulation31AoftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015.Onconsummationof theOfferPeriod, theAcquirershaveacquired in total34,59,586, (ThirtyFourLakhsFiftyNinethousandFiveHundredandEightysix)equitysharesconstituting16.22%ofthetotalsharecapitaloftheCompany.AsperRegulation31AoftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015,andtheletterofofferissuedinconnectionwiththeopenoffer,approvalofshareholdersinthegeneralmeetingisrequiredforclassifyingMr.RahulSarafasthePromoteroftheCompanyinplaceoftheApogeeBusinessSolutionsPvtLtd,ManjuNatwarSureka,TusharNSurekha,NatwarBSureka. Hence,theresolutionisputupforshareholdersapproval.
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
Item No. 11Ratification and Approval of Utilisation of proceeds received from issue of equity shares of the Company on Preferential BasisYourCompanyneededfundsforlongtermworkingcapitalrequirementsandforapprovedcorporatepurposes.Assuch,yourCompanyonprivateplacementbasis,hadallotted77,11,039equitysharesoffacevalueRs.10/-(RupeesTenOnly)pershareonMarch2,2011offeredatapriceofRs.12.32/-(RupeesTwelveandThirtyTwoPaisaOnly)pershare(includingpremiumofRs.2.32/-(RupeesTwoandThirtyTwoPaiseOnly)pershare)and9,50,000equitysharesoffacevalueRs.10/-(RupeesTenOnly)pershareonJune20,2011offeredatapriceofRs.20/-(RupeesTwentyOnly)pershare(includingpremiumofRs.10/-(RupeesTenOnly)pershare)and8,00,000equitysharesoffacevalueRs.10/-(RupeesTenOnly)pershareonOctober30,2012offeredatapriceofRs.20/-(RupeesTwentyOnly)pershare(includingpremiumofRs.10/-(RupeesTenOnly)pershare);YourCompanyreceivedtotalsumofRs.13,00,00,000.48/-(RupeesThirteenCroresandFortyEightPaiseOnly)againsttheabovestatedallotmentof94,61,039equitysharesoffacevalueRs.10/-pershare;YourCompanyhasutilisedtheabovestatedfundsinthemannerstatedbelow:
Sr. No. Payment to Purpose Amount Utilized
1 Teknopoint Mercantile CompanyPvt.Ltd.
Purchase of 41,50,000 equity shares at afacevalueofRs10/-pershareofTeknopointMercantileCompanyPvt.Ltd.
Rs.4,15,00,000.00
2 Sainath Herbal Care Marketing Pvt.Ltd.
Purchase of 32,00,000 equity shares at a face valueofRs10/-pershareofSainathHerbalCareMarketingPvt.Ltd.
Rs.3,20,00,000.00
3 Neil Information TechnologyLtd.
SoftwarePurchase -CompanyhasacquiredCRM software from Neil InformationTechnologyLtd.
Rs.20,00,000.00
4 ShreeMangalJewelsPvt.Ltd ForpurchaseofJewelleryProducts Rs.1,45,00,000.00
5 PerfectOctavePrivateLimited Perfect Octave Private Limited will beconducting advertising and designingcampaign for company’s foray in fashion and clothing sector. Based on Letter Of Intent aonetimeinterestfreesecuritydepositofRs.1croreisprovidedbythecompany.
Rs.86,00,000.00
6 SwastikLegalConsultantsPvt.Ltd.
Investment for 10,00,000 OptionallyConvertible Preference Shares of Rs.10/-each,convertibleafteraperiodof2yearsinto10,00,000equityshares.
Rs.50,00,000.00
7 Fastline Multitrade Pvt. Ltd.(FMPL)
Based on Letter of Intent a onetime interestfreesecuritydepositofRs1croreisgivenforusageofInfrastructureandNetworkofFMPLinSAARCforexportandtradingofnewrangeofproducts.
Rs.1,00,00,000.00
8 WorkingCapitalrequirement Placing of purchase orders, management fees, commissions, payment for salaries on behalfofHRfirm.
Rs.1,64,00,000.48
Total Rs.13,00,00,000.48
BSEvideletterdatedJuly27,2016allegedthattheCompanyhadmis-utilisedthefundsraisedandhadsuspendedthetradinginequitysharesoftheCompany.
YourCompanyhadprovidedappropriaterepliestoBSELtd.andhadalsoreceivedanorderfromHon’bleSecuritiesAppellateTribunalinfavouroftheCompanyforresumptionoftrading.
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
BSELtd.nowvideitsnoticenumber20160613-29datedJune13,2018hasdirectedthecompanieswhichundergonesurveillancemeasuresformis-utilisationoffundstoundertake“Mandatorydisclosurestobemadebythecompaniesw.r.t.mis-utilisationofpreferentialproceedsalongwithensuingquarterlyunaudited/auditedfinancialresultsandsametoberatifiedbytheshareholdersofthecompanywithin3monthsfromintimation”;
ThemembersoftheCompanyarehencerequestedto;,pursuanttothesaidBSELtd.noticenumber20160613-29datedJune13,2018,theCompany;herebyratifyandapprovethesaidspecialresolutionfortheutilizationoffundsbytheCompanyinthemannerstatedinthetableearlier.
Noneofdirectorsofthecompanyareinterestedinthesaidspecialresolution.
On behalf of the Board of Directors
Place: Mumbai Rahul Saraf Date: 21st August, 2018 Whole-time Director
DIN: 01494992Regd. Office: 103, Hubtown Solaris, N S PhadkeMarg, Andheri (East), Mumbai-400069, Maharashtra
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
ANNEXURE TO THE NOTICENotesondirectorsseekingappointmentasrequiredunderRegulation36(3)SEBI(LODR)Regulation,2015andSecretarialStandardsonGeneralmeetingsaregivenbelow.
Name of the Director Mr. Rahul Saraf Ms. Purnima ParasharDirectorIdentificationNumber(DIN)
01494992 07675850
Date of Birth 07/08/1984 10/07/1987Nationality Indian IndianDateofAppointmentonBoard 27/07/2018 27/07/2018
Expertise in functional area
AsFounder ofMaxgrowGroup,hestartedhisjourneyattheageof16.HehasledMaxgrowfromamodest background to a 2000 Cr professionally managed empire inarelativelyshortperiodoftime.He has a risk taking appetite and riskabsorptioncapacity.
SheisAssociatememberoftheInstituteofCompanySecretariesof India (ICSI), Bachelor ofLaw (LL.B) and Bachelor ofCommerce with specialization in Computer Application. Sheis having more than 5 years ofexperience of Company Law and otherCorporate Laws.Sheis also associated with one of the leading group of media companiesinIndia.
Shareholding in the Company 34,59,586 NilList of Directorships held in other Companies
1.MaxgrowIndustriesLimited
2.MaxgrowAgriCommoditiesLimited
NA
Memberships / Chairmanships ofAuditandStakeholders’RelationshipCommitteesacrossPublicCompanies.
Nil Nil
Name of the Director Mr. Rishabh Sharma Mrs. Gita Devi AgarwalDirectorIdentificationNumber(DIN)
08051566 08126967
Date of Birth 15/04/1995 09/11/1953Nationality Indian IndianDateofAppointmentonBoard 27/07/2018 27/07/2018
Expertise in functional area
Bachelor of Commerce and is a diplomaholderinWebDesigningand possessesTechnical Skills-HTML,CSS,JavaScript,Jquery,PHP. He is having more than1 year of experience as WebDeveloper
She is a versatile personalityhaving Directorship in otherCompaniesaswell.
Shareholding in the Company Nil NilList of Directorships held in other Companies
NA 1.MaxgrowIndustriesLimited
2.MaxgrowAgriCommoditiesLimited
Memberships / Chairmanships ofAuditandStakeholders’RelationshipCommitteesacrossPublicCompanies.
Nil Nil
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
DIRECTORS’ REPORT
To,The Members,
YourDirectorshavepleasureinpresentingtheir25thAnnualReportonthebusinessandoperationsoftheCompanyandtheaccountsfortheFinancialYearendedMarch31,2018.
1. FINANCIAL RESULTS : Pursuant to thenotificationdatedFebruary16,2015 issuedbyMinistryofCorporateAffairs, theCompanyhasadoptedtheIndianAccountingStandards(“INDAS”)notifiedundertheIndianAccountingRules,2015witheffectfrom1stApril 2017.Financial statement provides further explanationon the transition to IndAS.Financial andOperationalResultsoftheCompanyfortheyearended31stMarch,2018ascomparedtothepreviousfinancialyear, is summarized below
Particulars (Standalone) (Amount in INR)2017-18 2016-17
TotalIncome 84,291,381 21,389,904Total Expenditure 85,387,544 34,425,186Profit /(loss)before exceptional items and Tax (1,096,163) (13,035,282)Less: Exceptional items - -Profit /(loss)before Tax (1,096,163) (13,035,282)Less:CurrentTax(NetofMATCredit) - -PreviousYearTax - - Deferred Tax 22,408 19,976Profit /(loss)For the Year (1,073,755) (13,015,306)EarningperEquityShare(FaceValue:Rs.5/-) Basic (0.05) (0.61) Diluted (0.05) (0.61)
REVIEW OF OPERATIONS,TheCompany during the financial year under review, has generated revenue of Rs.842.91lacs (previous yearRs.213.89lacs),resultinginlossofRs.10.74lacs(lossinpreviousyearRs.130.15lacs)andthetotalexpenditureduringtheyearisRs.853.87lacsagainstexpenditureofpreviousyearwasRs.344.25lacs.
2. DIVIDEND:Therewerenoprofitsearnedduringtheyearandthereforenotdeclaredanydividendforthecurrentfinancialyear.
3. TRANSFER TO RESERVES :TherearenoamountstransferredtoReservesduringtheyearunderreview.HowevercreditbalanceofProfitandLossAccountistransferredtoReservesandSurplusinBalanceSheet.
4. CHANGE IN PROMOTERSDuringtheyearunderreview,theexistingpromotersofyourcompanyhaveexitedandofferedtheirshareholdingtoMr.RahulSaraf,thenewpromotersofthecompany.TheexistingPromotersoftheCompanyhaveagreedtotakeanexitandthenewpromotershaveagreedtoacquireequitystakeof16.12%fromtheexistingPromotersthroughSharePurchaseAgreementonJanuary30,2018.
Further,TheBoardofDirectorsintheirmeetingheldonJanuary30,2018andtheshareholdersintheirmeetingheldonMarch01,2018approvedandresolvedtoallot1,50,00,000warrantswhichwillbeconvertibleintoequalnumberofEquitysharesonpreferentialbasistothenewpromoterintermsofSection62andotherapplicableprovisionsoftheCompaniesAct,2013andintermsofSEBI(ICDR)Regulations2009.PursuanttoSPAandsaidpreferentialallotmentthenewpromotershallhold34,37,798equitysharesand1,50,00,000warrantsrepresenting9.46%and41.29%respectivelyoftheVotingSharecapitaloftheCompanypostPreferentialAllotment.
CompanyhasreceivedInPrincipleApprovalfromBSEonAugust8,2018forthesaidpreferentialallotment.
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
Oncompletionoftheabovesaidobligations,Mr.RahulSarafistoberecognizedasPromotersinplaceofApogeeBusinessSolutionsPvtLtd,ManjuNatwarSureka,TusharN.Sureka,NatwarB.Sureka.SincethisrequirestheapprovaloftheMemberspursuanttoRegulation31AoftheSEBI(LODR)Regulations,2015bywayofaspecialresolutionthesameisproposedfortheapprovalofthemembersattheensuingAGM.
5. MATERIAL CHANGES AND COMMITMENTS BETWEEN END OF FINANCIAL YEAR AND DATE OF REPORT:1. PublicAnnouncementdatedJanuary30,2018wasfiledinrelationtoOpenOfferforacquiringupto94,44,260
(NinetyFourLakhsFortyFourThousandTwoHundredSixtyOnly)EquityShares.Pursuanttotheallotmentof1,50,00,000warrantswhichwillbeconvertedintoequalnumberofequityshares,representing26%oftheVotingShareCapital,fromthePublicbyMr.RahulSaraf.
2. TheBoard ofDirectors of theCompany at theirmeeting held on July 27, 2018, has approved to changetheRegisteredofficeoftheCompanywithincityfrom“A/9,TheParleColonyCo-OperativeHousingSocietyLimited,SahakarRoad,VileParle (East),Mumbai400057” to “103,HubtownSolaris,NSPhadkeMarg,Andheri(East),Mumbai-400069,Maharashtra”.
6. DIRECTORS’ RESPONSIBILITY STATEMENT:Aspertheclause(c)ofsub-section(3)ofSection134oftheCompaniesAct,2013,theDirectors’statethat:
a) in the preparation of the annual accounts, the applicable accounting standards had been followed along with properexplanationrelatingtomaterialdepartures;
b) thedirectorshadselectedsuchaccountingpoliciesandappliedthemconsistentlyandmadejudgmentsandestimates that are reasonableandprudent soas togivea trueand fair viewof the stateof affairsof thecompanyattheendofthefinancialyearandofthelossofthecompanyforthatperiod;
c) the directors had taken proper and sufficient care for themaintenance of adequate accounting records inaccordancewiththeprovisionsofthisActforsafeguardingtheassetsofthecompanyandforpreventinganddetectingfraudandotherirregularities;
d) thedirectorshadpreparedtheannualaccountsonagoingconcernbasis;
e) thedirectorshadlaiddowninternalfinancialcontrolstobefollowedbythecompanyandthatsuchinternalfinancialcontrolsareadequateandwereoperatingeffectively;and
f) thedirectorshaddevisedpropersystemstoensurecompliancewiththeprovisionsofallapplicablelawsandthatsuchsystemswereadequateandoperatingeffectively.
7. SUBSIDIARIES, JOINT VENTURES AND ASSOCIATE COMPANIES:TheCompanydoesnothaveanysubsidiary,jointventuresandassociatecompany.
8. DEPOSITS:Duringthefinancialyear2017-18,yourCompanyhasnotacceptedanydepositwithinthemeaningofSection73and74oftheCompaniesAct,2013readtogetherwiththeCompanies(AcceptanceofDeposits)Rules,2014.
9. CASH FLOW STATEMENT: Cashflowstatementinpursuanttoregulation34(2)(c)ofLODRRegulation,2015isattachedandformpartofthereport.
10. SHARE CAPITAL:ThePaid-upEquityShareCapital asonMarch31,2018wasRs.10,66,20,390/- comprising2,13,24,078EquitySharesofRs.5/-each.
11. RISK MANAGEMENT POLICY:TheCompanyhasadoptedaRiskManagementPolicydulyapprovedbytheBoardandisoverseenbytheAuditCommitteeof theCompanyonacontinuousbasis to identify,assess,monitorandmitigatevarious risks tokeybusinessobjectives.
12. ADEQUACY OF INTERNAL FINANCIAL CONTROLS:TheCompanyhasinplaceadequateinternalfinancialcontrolswithreferencetofinancialstatements.Duringtheyear,suchcontrolsweretestedandnoreportablematerialweaknessinthedesignoroperationwasobserved.
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
13. MANAGEMENT DISCUSSION AND ANALYSIS REPORT:AsrequiredbySEBI(ListingObligationAndDisclosureRequirement)Regulation,2015,theManagementdiscussionandAnalysisReportformspartofthisAnnualReport.
14. CORPORATE GOVERNANCE:TheCompanyiscommittedtogoodcorporategovernanceinlinewiththeListingRegulationsandInannaFashionandTrendsLimited(FormerlyknownasFrontlineBusinessSolutionLimited)ascorporategovernancenorms.TheCompanyisincompliancewiththeprovisionsoncorporategovernancespecifiedintheListingAgreementwithBSE.TheCompliancecertificatefromM/s.B.N.Kedia&Co.,CharteredAccountantregardingcomplianceofconditionsofcorporategovernanceasstipulatedinListingRegulationshasbeenannexedwiththereport.
15. PREVENTION OF SEXUAL HARASSMENT POLICY:TheCompanyhasinplaceaPreventionofSexualHarassmentpolicyinlinewiththerequirementsoftheSexualHarassmentofWomenattheWorkplace(Prevention,ProhibitionandRedressal)Act,2013.AnInternalComplaintsCommitteehasbeensetuptoredresscomplaintsreceivedregardingsexualharassment.Allemployees(permanent,contractual, temporary, trainees)arecoveredunder thispolicy.During theyear2017-2018,nocomplaintswerereceivedbytheCompanyrelatedtosexualharassment.
16. DIRECTORS AND KEY MANAGERIAL PERSONNEL:DuringtheyeartherewerenochangeinBoardstructureoftheCompany,Further;thefollowingchangeshavebeenmadeintheBoardstructureoftheCompanyaftertheendofthisfinancialyear:
Sr.No. Name Of Directors DIN Date OfAppointment
Date OfResignation
Designation
1. Natwar Balkrishna Sureka 01296522 06/04/2008 27/07/2018 Managing Director2. ManjuNatwarSureka 01362461 06/04/2008 27/07/2018 Director3. BrijkishoreK.Ruia 00309420 12/04/2011 27/07/2018 IndependentDirector4. Sandeep Mhaske 03000052 10/04/2017 27/07/2018 IndependentDirector5. RahulSaraf 01494992 27/07/2018 - WholetimeDirector6. Purnima Parashar 07675850 27/07/2018 - IndependentDirector7. RishabhSharma 08051566 27/07/2018 - IndependentDirector8. GitaDeviAgarwal 08126967 27/07/2018 - NonExecutive
Director
17. DECLARATION OF INDEPENDENT DIRECTOR:TheCompanyhasreceiveddeclarationfromIndependentDirectorsthattheymeetthecriteriaofindependenceaslaiddownunderSection149(6)oftheAct.
18. EVALUATION OF BOARD’S PERFORMANCE:PursuanttotheprovisionsoftheCompaniesAct,2013andListingRegulations,theBoardhascarriedoutanannualperformanceevaluationofitsownperformance,thedirectorsindividuallyaswellastheevaluationoftheworkingofitsAudit,Nomination&RemunerationandComplianceCommittees.ThemannerinwhichtheevaluationhasbeencarriedouthasbeenexplainedintheCorporateGovernanceReport.
19. BOARD AND BOARD COMMITTEES:The details of Board Meetings held during the year, attendance of the directors at the meetings and details of all the Committeesalongwiththeircharters,compositionandmeetingsheldduringtheyear,areprovidedinthe“ReportonCorporateGovernance”,apartofthisAnnualReport.
20. MANAGERIAL REMUNERATION:Disclosures of the ratio of the remuneration of each director to the median employee’s remuneration and other detailsasrequiredpursuanttoSection197(12)oftheCompaniesAct,2013readwithRule5(1)oftheCompanies(AppointmentandRemunerationofManagerialPersonnel)Rules,2014isprovidedas“Annexure A”.21. PARTICULARS OF EMPLOYEES:
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
ThereisnoemployeedrawingremunerationfallingwithinthelimitsspecifiedunderSection134(3)and197oftheCompaniesAct,2013 readwith theCompanies (ParticularsofEmployees)Rules,2011,hencenostatement isenclosed.
22. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION 186:TheCompanyhasnotgrantedanyloansorgivenguaranteesormadeanyinvestmentscoveredundertheprovisionsofSection186oftheCompaniesAct,2013
23. CORPORATE SOCIAL RESPONSIBILITY (CSR):TheCompanyisnotrequiredtodevelopandimplementanyCorporateSocialResponsibilityinitiativesasthesaidprovisionsarenotapplicable.
24. RELATED PARTY TRANSACTIONS:Duringthefinancialyear2017-18,yourCompanyhasnotexecutedanytransactionswithrelatedpartiesasdefinedunderSection2(76)oftheCompaniesAct,2013readwithCompanies(SpecificationofDefinitionsDetails)Rules,2014.Duringthefinancialyear2017-18,therewerenotransactionswithrelatedpartieswhichqualifyasmaterialtransactionsundertheListingRegulations.
25. SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS:TherearenosignificantmaterialorderspassedbytheRegulators/CourtswhichwouldimpactthegoingconcernstatusoftheCompanyanditsfutureoperations.
26. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS & OUTGO:The information on conservation of energy, technology absorption and foreign exchange earnings and outgostipulatedunderSection134(3)(m)oftheCompaniesAct,2013readwithRule,8ofTheCompanies(Accounts)Rules,2014,areasbelow:
• Energy Conservation: DuringtheperiodunderreviewtherewasnoEnergyconservation.• Technology Absorption:DuringtheperiodunderreviewtherewasnoTechnologyAbsorption.• Foreign Exchange Earnings and Outgo:During theperiodunder review therewasno foreignexchange
earningsoroutflow.
27. STATUTORY AUDITORS:M/s.B.N.Kedia&Co.,CharteredAccountantwereappointedastheStatutoryAuditoroftheCompanytoholdofficetill the conclusion of 29thAnnualGeneralMeetingatthe24thAnnualGeneralMeetingheldon29thSeptember,2017.IntermsoftheprovisionofSection139(1)oftheCompaniesAct,2013,theappointmentshallbeplacedforratificationateveryAnnualGeneralMeeting.
InaccordancewiththeCompaniesAmendmentAct,2017,enforcedon7thMay,2018bytheMinistryofCorporateAffairs,theappointmentofStatutoryAuditorsisnotrequiredtoberatifiedateveryAnnualGeneralMeeting.
M/s.B.N.Kedia&Co.hasprovidedtheirrespectiveconsent,certificatesanddeclarationasrequiredunderSection139and141oftheActandtheCompanies(AuditandAuditors)Rules,2014.TheReportoftheAuditorsonthefinancialstatementfortheyearended31stMarch2018doesnotcontainanyqualification.
28. AUDITORS’ OBSERVATION & REPORT:TheobservationmadeintheAuditors’ReportreadtogetherwithrelevantnotesthereonareselfexplanatoryandhencedonotcallforanyfurthercommentsunderSection134oftheCompaniesAct,2013.
29. SECRETARIAL AUDIT:Pursuant to the provisions of Section 204 of theAct and the Companies (Appointment and Remuneration ofManagerialPersonnel)Rules,2014,theBoardofDirectorshasM/s.SGParekh&Co.forconductingsecretarialauditoftheCompanyforthefinancialyear2017-2018.
TheSecretarialAuditReportisannexedherewithas“Annexure B”.TheQualificationofSecretarialAuditorinitsreportandtheCompany’responsetheretoissetforthbelow:
1. TheCompany has not appointed CompanySecretary andChief FinancialOfficer as theKeyManagerialPersonnel as required under the provisions of Sec 203(1)(ii) & (iii) read with Rule 8 of The Companies
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
(AppointmentandRemunerationofManagerialPersonnel)Rules,2014.
2. TheCompanyhasnotdesignateQualifiedCompanySecretaryasaComplianceofficerasrequiredundertheRegulation6ofSEBI(ListingObligationandDisclosureRequirements)Regulation,2015
Company’s Response to the above Qualifications: Duringtheyearunderreview,alleffortweremadebytheCompanytofillupthepositionofCompanySecretary
andCFObutcouldnotfindasuitablecandidateforthesaidposition.
3. Regulation47of theSEBI(ListingobligationsandDisclosureRequirements)Regulation,2015,Section108of theCompaniesAct2013readwithRule20of theCompanies(ManagementandAdministration),Rules,2014andSection91of theCompaniesAct 2013 readwithRule10of theCompanies (Management andAdministration)Rules,2014–NonPublicationofResultsAuditedandUnauditedinnewspaper.
Company’s Response to the above Qualifications: TheCompanyhasnotbeendoingthatsincethefinancialpositionoftheCompanydoesnotallowBoardto
incursuchexpenditurekeepinginmindthattheresultsaremadeavailableforinvestorsandmarketthroughStockExchange.TheCompany,ontimelybasissubmitstheresultstotheExchangetobringtheinformationinpublic domain
4.TheCompanyhasnotappointedinternalauditorasrequiredunderSec138oftheCompaniesAct,2013.
Company’s Response to the above Qualifications: Duringtheperiodunderreview,theCompanyhasnotenteredintosubstantialfinancialtransactionsandhence
theCompanyhasnotappointedInternalAuditor.HowevertheCompanyhasadequatemechanismforinternalfinancialcontrol.
30. EXTRACT OF THE ANNUAL RETURN:ThedetailsformingpartoftheextractoftheAnnualReturninFormMGT-9inaccordancewithSection92(3)oftheCompaniesAct,2013readwiththeCompanies(ManagementandAdministration)Rules,2014,aresetoutherewithas “Annexure C” tothisReport.31. ACKNOWLEDGEMENTS:Your Directors thank the Company’s bankers, financial institutions, Central Government, other governmentauthoritiesandshareholdersfortheirconsistentsupporttotheCompany.TheDirectorsalsosincerelyacknowledgetothesignificantcontributionsmadebyallstakeholdersfortheirdedicatedservicesandsupporttotheCompany.
On behalf of Board of Directors
Place: Mumbai Rahul Saraf Geeta Devi AgrawalDate: 21/08/2018 Whole-time Director Director DIN: 01494992 DIN: 08126967
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
Annexure AInformation required under Section 197 of the Companies Act, 2013 read with Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014i. Ratioof the remunerationofeachExecutiveDirector to themedian remunerationof theEmployeesof the
Companyforthefinancialyear2017-18,thepercentageincreaseinremunerationofChiefExecutiveOfficer,ChiefFinancialOfficerandotherExecutiveDirectorandCompanySecretaryduringthefinancialyear2017-18.
Sr. No. Name of Director / KMP Designation Ratio of remuneration ofeach Director to median
remuneration of Employees
Percentageincrease in
Remuneration1 Mr.NatwarSureka Managing
DirectorNil 0.00
2 Mrs.ManjuSureka Non-ExecutiveDirector
Nil 0.00
ii. ThepercentageincreaseinthemedianremunerationofEmployeesforthefinancialyearwasnil.
iii. Numberofpermanent Employees on rolls of the Company as on March 31, 2018 is 13
iv. AveragepercentageincreasemadeinthesalariesofEmployeesotherthanthemanagerialpersonnelinthefinancialyearwasnilandtheCompanyhasnotpaidanymanagerialremunerationduringthefinancialyear.
v. It is hereby affirmed that the remuneration paid during the year is as per theRemunerationPolicy of theCompany.
On behalf of Board of Directors
Place: Mumbai Rahul Saraf Geeta Devi AgrawalDate: 21/08/2018 Whole-time Director Director DIN: 01494992 DIN: 08126967
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
Annexure BForm No. MR-3
SECRETARIAL AUDIT REPORTFORTHEFINANCIALYEARENDED31st March, 2018
[Pursuant to section 204(1) of the Companies Act, 2013 andRule No.9 of the Companies Appointment and Remuneration Personnel)Rules, 2014]
To,The Members,Inanna Fashion and Trends Limited(Formerly known as Frontline Business Solutions Limited)
Ihaveconductedthesecretarialauditofthecomplianceofapplicablestatutoryprovisionsandtheadherencetogood corporate practices by Inanna Fashion and Trends Limited(Formerly known as Frontline Business Solutions Limited) (here in after called “the company”).SecretarialAuditwasconductedinamannerthatprovidedmeareasonablebasisforevaluatingthecorporateconducts/statutorycompliancesandexpressingmyopinionthereon.
BasedonmyverificationoftheCompany’sbooks,papers,minutebooks,formsandreturnsfiledandotherrecordsmaintainedbythecompanyandalsotheinformationprovidedbytheCompany,itsofficers,agentsandauthorizedrepresentativesduringtheconductofsecretarialaudit,Iherebyreportthatinmyopinion,thecompanyhas,duringtheauditperiodcoveringthefinancialyearended31stMarch,2018compliedwith thestatutoryprovisions listedhereunderandalso that theCompanyhasproperBoardprocessesandcompliance-mechanism inplace to theextent,inthemannerandsubjecttothereportingmadehereinafter:
1.Ihaveexaminedthebooks,papers,minutebooks,formsandreturnsfiledandotherrecordsmaintainedbytheCompanyforthefinancialyearended31stMarch,2018accordingtotheprovisionsof:
i. TheCompaniesAct,2013(theAct)andtherulesmadethereunder;ii. TheSecuritiesContracts(Regulation)Act,1956(‘SCRA’)andtherulesmadethereunder;iii. TheDepositoriesAct,1996andtheRegulationsandBye-lawsframedthereunder;
iv. ThefollowingRegulationsandGuidelinesprescribedundertheSecuritiesandExchangeBoardofIndiaAct,1992(‘SEBIAct’):
a. TheSecuritiesandExchangeBoardofIndia(SubstantialAcquisitionofSharesandTakeovers)Regulations,2011;
b. TheSecuritiesandExchangeBoardofIndia(ProhibitionofInsiderTrading)Regulations,2015;
c. TheSecuritiesandExchangeBoardofIndia(IssueofCapitalandDisclosureRequirements)Regulations,2009;
d.TheSecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirementsRegulations,2015
2. ProvisionsofthefollowingRegulationsandguidelinesprescribedundertheSecuritiesandExchangeBoardofIndiaAct,1992werenotapplicabletotheCompanyunderthefinancialyearunderreport:
a) TheSecuritiesandExchangeBoardofIndia(IssueandListingofDebtSecurities)Regulations,2008;
b) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents)Regulations,1993regardingtheCompaniesActanddealingwithclient;
c) TheSecuritiesandExchangeBoardofIndia(DelistingofEquityShares)Regulations,2009;and
d) TheSecuritiesandExchangeBoardofIndia(BuybackofSecurities)Regulations,1998;
e) SecuritiesandExchangeBoardofIndia(ShareBasedEmployeeBenefits)Regulations,2014;
3. ProvisionsoftheForeignManagementAct,1999andtherulesandRegulationsmadethereundertotheextentofExternalCommercialBorrowingswerenotattractedtothecompanyundertheAuditperiod.
4. Ihavealsoexaminedcompliancewiththeapplicableclausesofthefollowing:
(i) SecretarialStandardsissuedbyTheInstituteofCompanySecretariesofIndia.
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
Duringthefinancialyearunderreportandaspertheexplanationsandtheclarificationsgiventousandthe representation made by the Management of the Company, the Company has generally complied with theprovisionsoftheAct,Rules,Regulations,Guidelines,Standards,etc.mentionedabovetotheextendapplicableandsubjecttothefollowingobservation:
1. The Company has not appointed Company Secretary and Chief Financial Officer as the Key Managerial Personnel as required under the provisions of Sec 203(1)(ii) & (iii) read with Rule 8 of The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.
2. The Company has not designate Qualified Company Secretary as a Compliance officer as required under the Regulation 6 of SEBI (Listing Obligation and Disclosure Requirements) Regulation, 2015
3. Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015, the Company shall issue a public notice in at least in one English daily newspaper circulating in the whole or substantially the whole of India and in one daily newspaper published in the language of the region, where the registered office of the company is situated for following matters:
a) Board meeting wherein quarterly unaudited / audited results are to be considered where Prior 7 clears day’s intimation needs to be published.
b) Financial results within 48 hrs of the conclusion of Board or committee meeting at which they were approved. However, the Company has not complied with the requirements of the aforesaid clause of SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015.
4. The Company has not appointed internal auditor as required under Sec 138 of the Companies Act, 2013.
5. The Company has changed its name from Frontline Business Solutions Limited to Inanna Fashion and Trends Limited. The change of name of the Company in the records of BSE is pending.
I further report that;ThechangesinthecompositionoftheBoardofDirectorsthattookplaceduringtheperiodunderreviewwerecarriedoutincompliancewiththeprovisionsoftheAct.AdequatenoticefortheBoard/CommitteeMeetingswasgiventoall directors to schedule the Board/Committee Meetings, agenda and detailed notes on agenda were sent at least sevendaysinadvance,andasystemexistsforseekingandobtainingfurtherinformationandclarificationsontheagendaitemsbeforethemeetingandformeaningfulparticipationatthemeeting.ThedecisionattheBoardMeetingarecarriedoutthroughmajorityvotewhilethedissentingmembers’views,ifany,arecapturedandrecordedaspartoftheminutes.
I further report that as represented by the Company and relied upon by us there are adequate systems and processes in the Company commensurate with the size and operations of the Company to monitor and ensure compliancewithapplicablelaws,rules,regulationsandguidelines.
I further report thatthecompliancebytheCompanyofapplicablefinanciallaws,likedirectandindirecttaxlaws,AccountingStandardsetc.hasnotbeenreviewedinthisAudit,sincethesameissubjecttoreviewbydesignatedprofessional/sduringthecourseofstatutoryfinancialaudit.
Ifurtherstatethatmyreportofevendateistobereadalongwith“Annexure–A”appendedhereto.
For S G Parekh & Co.Company Secretaries
Shilpa Parekh Date: August 21, 2018 M. No. F9232Place: Mumbai CP No. 10746
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
‘ANNEXURE A’ to SECRETARIAL AUDIT REPORT
To,The Members,Inanna Fashion and Trends LimitedOur report of even date is to be read along with this letter.1. Maintenanceofsecretarialrecordistheresponsibilityofthemanagementofthecompany.Ourresponsibilityis
toexpressanopiniononthesesecretarialrecordsbasedonouraudit.
2. Wehave followed theaudit practicesandprocessesaswereappropriate to obtain reasonable assuranceaboutthecorrectnessof thecontentsof theSecretarialrecords.Theverificationwasdoneontestbasistoensurethatcorrectfactsarereflectedinsecretarialrecords.Webelievethattheprocessesandpractices,wefollowedprovideareasonablebasisforouropinion.
3. WehavenotverifiedthecorrectnessandappropriatenessoffinancialrecordsandBooksofAccountsofthecompany.
4. Whereeverrequired,wehaveobtainedtheManagementrepresentationaboutthecomplianceoflaws,rulesandregulationsandhappeningofeventsetc.
5. ThecomplianceoftheprovisionsofCorporateandotherapplicablelaws,rules,regulations,standardsistheresponsibilityofmanagement.Ourexaminationwaslimitedtotheverificationofproceduresontestbasis.
6. TheSecretarialAuditreportisneitheranassuranceastothefutureviabilityoftheCompanynoroftheefficacyoreffectivenesswithwhichthemanagementhasconductedtheaffairsofthecompany.
For S G Parekh & Co.Company Secretaries
Shilpa Parekh Date: August 21, 2018 M. No. F9232Place: Mumbai CP No. 10746
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
Annexure ‘C’
FORM NO. MGT 9EXTRACT OF ANNUAL RETURN
as on financial year ended on 31.03.2018 Pursuant to Section 92 (3) of the Companies Act, 2013 and rule 12(1) of the Company (Management &
Administration) Rules, 2014.I. REGISTRATION & OTHER DETAILS:
1 CIN L17200MH1994PLC0760182 RegistrationDate 12-01-943 Name of the Company InannaFashionandTrendsLimited
(Formerly known as Frontline Business Solutions Limited)
4 Category/Sub-categoryoftheCompany Public Company / Limited by Shares 5
AddressoftheRegisteredoffice&contactdetails A/9,TheParleColonyCo-OperativeHousingSociety,Limited,SahakarRoad,VileParle(East),Mumbai–400057Tel:(022)-66067200
6 Whetherlistedcompany BSE Limited7
Name,Address&contactdetailsoftheRegistrar&TransferAgent,ifany.
M/s.UniversalCapitalSecuritiesPvt.Ltd21, ShakilNiwas, OppSatyaSaibaba Temple, MahakaliCavesRoad,Andheri(E),Mumbai–400093Tel:(022)28207203-05/28257641 Fax: (022) 28207207
II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY (Allthebusinessactivitiescontributing10%ormoreofthetotalturnoverofthecompanyshallbestated)S.No.
Name and Description of main products / services
NICCodeofthe Product/service
%tototalturnoverofthecompany
1 Trading in textiles clothes 46411 100%
III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIESSN Name and address of the Company CIN/
GLNHolding/
Subsidiary/ Associate
%of shares held
Applicable Section
NOTAPPLICABLE
IV. SHARE HOLDING PATTERN
(Equity share capital breakup as percentage of total equity)
(i) Category-wise Share Holding
Category of Shareholder
Demat
No. of Shares held at the beginning of the year [As on 31-March-2017]
No. of Shares held at the end of the year [As on 31-March-2018]
% Change during
the year Physical Total % of Total
Shares
Demat Physical Total % of Total Shares
A. Promoters(1)Indian
a)Individual/HUF
1164420 - 1164420 5.46 1164420 - 1164420 5.46 -
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
b)CentralGovt - - - - - - - - -
c)StateGovt(s) - - - - - - - -
d)BodiesCorp. 2273378 2273378 10.66 2273378 2273378 10.66 -
e)Banks/FI - - - - - - - - -
f)Anyother - - - - - - - - -
Sub Total (A) (1)
3437798 - 3437798 16.12 3437798 - 3437798 16.12 -
(2) Foreign
a)NRIIndividuals
- - - - - - - - -
b) Other Individuals
- - - - - - - - -
c)BodiesCorp. - - - - - - - - -
d)Anyother - - - - - - - - -
Sub Total (A) (2)
- - - - - - - - -
TOTAL (A) 3437798 - 3437798 16.12 3437798 - 3437798 16.12 -
B. Public Shareholding1. Institutions
a) Mutual Funds
- 960 960 0.00% 960 960 0.00 -
b)Banks/FI - - - - - - - - -
c)CentralGovt - - - - - - - - -
d) State Govt(s)
- - - - - - - - -
e) Venture Capital Funds
- - - - - - - - -
f)InsuranceCompanies
- - - - - - -
g)FIIs - - - - - - - - -
h) Foreign Venture Capital Funds
- - - - - - - - -
i) Others (specify)
- - - - - - - - -
Sub-total (B)(1):-
0 960 960 0.00 0 960 960 0.00 -
2. Non-Institutions
a)BodiesCorp. 7705209 17380 7722589 36.22 1521044 17380 1538424 7.21 -29.01
i)Indian - - - - - -
ii)Overseas - - - - - -
b)Individuals
i)Individualshareholders holding nominal share capital uptoRs1lakh
4125658 396278 4521936 21.21 3455049 393398 3848447 18.05 -3.16
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
ii)Individualshareholders holding nominal share capital in excessofRs1 lakh
4224010 - 4224010 19.81 10423721 - 10423721 48.88 29.07
c) Others (specify)
647398 - 647398 3.04 1465594 - 1465594 6.87 3.83
NonResidentIndians/OverseasCorporate Bodies
34829 - 34829 0.16 25631 - 25631 0.12 -0.04
Foreign Nationals
- - - -- - - - -
Clearing Members
734558 - 734558 3.44 583503 - 583503 2.74 -0.7
Trusts - - - - - - - - -
Foreign Bodies -DR
- - - - - - - - -
Sub-total (B)(2):-
17471662 413658 17885320 83.87 17474542 410778 17885320 83.87 -
Total Public (B)
17471662 414618 17886280 83.88 17474542 411738 17886280 83.88 -
C.Sharesheldby Custodian forGDRs&ADRs
- - - - -
Grand Total (A+B+C)
20909460 414618 21324078 100% 20912340 21324078 100% -
(ii) Shareholding of Promoter
SN Shareholder’s Name
Shareholding at the beginning of the year As on 01-04-2017
Shareholding at the end of the year As on 31-03-2018
% change in shareholding
during the yearNo. of
Shares% of total
Shares of the
company
% of Shares Pledged/ encum-bered to
total shares
No. of Shares
% of total Shares of the
company
% of Shares Pledged / encum-
bered to total shares
1 ManjuSureka 1,60,000 0.75% 0 1,60,000 0.75% 0 0.00%2 NatwarSureka 6,47,020 3.03% 0 6,47,020 3.03% 0 0.00%3 TusharSureka 3,57,400 1.68% 0 3,57,400 1.68% 0 0.00%
4 ApogeeBusinessSolutionsPvtLtd
22,73,378 10.66% 0 22,73,378 10.66% 0.00%
TOTAL 34,37,798 16.12% 0 34,37,798 16.12% 0 0.00%
(iii) Change in Promoters’ Shareholding (please specify, if there is no change)
SN Particulars Shareholding at the beginning of the year
(As on 01-04-2017)
Cumulative Shareholding during the year (As on 01-04-2017 to
31-03-2018)% of total
sharesNo. of shares % of total
sharesNo. of shares
Atthebeginningoftheyear
NoChangeinPromoterShareholding.
DatewiseIncrease/DecreaseinPromoters Share holding during the year specifying the reasons for increase/decrease(e.g.allotment/transfer / bonus/ sweat equity etc) #
Attheendoftheyear
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
iv Shareholding Pattern of top ten Shareholders
Sr. No Name
No. of Shares at the
beginning / end of the
Year
% of the Shares of the
Company
DateIncrease / drcease in
shareholdingReason
Cumulative No. of shares
% of total shares of the
Company
1BhavinPankajDoshi
50000 0.23 10-11-2017 150000 buy 200000 0.9424-11-2017 100000 buy 300000 1.4108-12-2017 503125 buy 803215 3.7722-12-2017 100000 buy 903125 4.24
1003125 4.7 12-01-2018 100000 buy 1003125 4.7
2Darshan Kiritkumar Shah
0 0 01-09-2017 100000 buy 100000 0.4715-09-2017 100000 buy 200000 0.9422-09-2017 100000 buy 300000 1.4106-10-2017 20000 buy 500000 2.3413-10-2017 100000 buy 600000 2.8110-11-2017 20000 buy 800000 3.7524-11-2017 100000 buy 900000 4.22
1000000 4.69 15-12-2017 100000 buy 1000000 4.69
3Mittal Darshan Shah
0 0 01-09-2017 100000 buy 100000 0.4715-09-2017 100000 buy 200000 0.9422-09-2017 212000 buy 412000 1.9315-12-2017 100000 buy 512000 2.422-12-2017 100000 buy 612000 2.87
712000 3.34 09-02-2018 100000 buy 712000 3.34
4Taraben Chandulal Doshi
0 0 27-10-2017 100000 buy 100000 0.4710-11-2017 100000 buy 200000 0.9424-11-2017 54564 buy 254564 1.1908-12-2017 100000 buy 354564 1.6622-12-2017 50000 buy 404564 1.902-02-2018 50000 buy 454564 2.13
504564 2.37 09-02-2018 50000 buy 504564 2.37
5Kirtikumar Chunilal Shah
0 0 15-09-2017 100000 buy 100000 0.4703-11-2017 300000 buy 400000 1.88
500000 2.34 15-12-2017 100000 buy 500000 2.34
6 ShivajiraoSJondhale
456810 2.14 0 0 NA 456810 2.14
7 Sunil Kantilal Shah
405800 1.9 0 0 NA 405800 1.9
8Sunil Bansilal Raisoni
233749 1.1 08-12-2017 300000 buy 533749 2.5
433749 2.03 02-02-2018 -100000 sell 433749 2.03
9 AmrapaliBDoshi
0 0 01-09-2017 100000 buy 100000 0.4708-09-2017 200000 buy 300000 1.41
370000 1.74 15-09-2017 70000 buy 370000 1.74
10Mukesh Chandulal Doshi HUF
0 0 08-12-2017 75000 buy 75000 0.35
22-12-2017 75000 buy 150000 0.709-02-2018 75000 buy 225000 1.06
289000 1.36 31-03-2018 64000 buy 289000 1.36
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
(v) Shareholding of Directors and Key Managerial Personnel:SN Name Shareholding Date Increase /
Decrease in share-holding
Reason Cumulative Share-holding during the year (As on 01-04-2017to 31-03-2018)
No. of Shares at
the beginning (01-04-17)/ end of the
year (31-03-18)
% of total shares of
the Company
No. of shares
% of total
shares of
the Compa-
ny
A. DIRECTORS1 NatwarBalkrishnaSureka-
Managing Director647020 3.03% 01.04.2017 Nil
movementduring the
year 647020 3.03% 31.03.2018
2 ManjuNatwarSureka-WholeTimeDirector
160000 0.75 01.04.2017 Nil movementduring the
year 160000 0.75 31.03.2018
3 Brijkishorek.Ruia-IndependentDirector
0 0 01.04.2017 Nil movementduring the
year 0 0 31.03.2018
4 SandeepMhaske-IndependentDirector
0 0 01.04.2017 Nil movementduring the
year0 0 31.03.2018
B. Key Managerial Personnel-- -- -- -- -- -- -- --
V. INDEBTEDNESSIndebtednessoftheCompanyincludinginterestoutstanding/accruedbutnotdueforpayment.(Amt.Rs./Lacs)
Particulars Secured Loans excluding deposits
Unsecured Loans
Deposits Total Indebtedness
Indebtedness at the beginning of the financial yeari)PrincipalAmount 0.00 72.67 0.00 72.67ii)Interestduebutnotpaid 0.00 0.00 0.00 0.00iii)Interestaccruedbutnotdue 0.00 0.00 0.00 0.00
Total (i+ii+iii) 0.00 72.67 0.00 72.67Change in Indebtedness during the financial year*Addition 0.00 0.00 0.00 0.00*Reduction 0.00 9.50 0.00 9.50Net Change 0.00 -9.50 0.00 -9.50Indebtedness at the end of the financial yeari)PrincipalAmount 0.00 63.17 0.00 63.17ii)Interestduebutnotpaid 0.00 0.00 0.00 0.00iii)Interestaccruedbutnotdue 0.00 0.00 0.00 0.00
Total (i+ii+iii) 0.00 63.17 0.00 63.17
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNELA.RemunerationtoManagingDirector,Whole-timeDirectorsand/orManager:SNo.
Particulars of Remuneration Name of MD/WTD/ Manager
Total Amount
Name Mr. NatwarSurekaManaging Director
(Rs/Lac) Designation
1 Grosssalary (a)Salaryasperprovisionscontainedinsection17(1)oftheIncome-taxAct,1961
0.00 0.00
(b)Valueofperquisitesu/s17(2)Income-taxAct,1961
0.00 0.00
(c)Profitsinlieuofsalaryundersection17(3)Income-taxAct,1961
0.00 0.00
2 Stock Option 0.00 0.003 Sweat Equity 0.00 0.004 Commission
-as%ofprofit 0.00 0.00-others,specify 0.00 0.00
5 Others, please specify 0.00 0.00 ConveyanceAllowances 0.00 0.00 MedicalAllowances 0.00 0.00
House rent allowance 0.00 0.00LeaveTravellingAllowance 0.00 0.00
Total(A) 0.00 0.00
B. Remuneration to other DirectorsSNo.
Particulars of Remuneration
Brijkishore Ruia Sandeep Mhaske Total Amount(Rs/Lac)
1 IndependentDirectors 0.0 0.0 0.00Fee for attending board committee meetings
0.0 0.0 0.00
Commission 0.0 0.0 0.00Others, please specify 0.0 0.0 0.00Total (1) 0.0 0.0 0.00
2 OtherNon-ExecutiveDirectors ManjuSurekaFee for attending board committee meetings
0.00 0.00 0.00
Commission 0.00 0.00 0.00Others,pleasespecify–Remuneration* 0.00 0.00 0.00
Total (2) 0.00 0.00 0.00 Total (B)=(1+2) 0.00 0.00 0.00 TotalManagerialRemuneration 0.00 0.00 0.00 OverallCeilingaspertheAct 11%oftheNetprofit
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
C.RemunerationtoKeyManagerialPersonnelotherthanMD/Manager/WTDS.No
Particulars of Remuneration Name of Key Managerial Personnel
Total AmountName
Designation (Rs/Lac)1 Grosssalary 0.00 0.00
(a)Salaryasperprovisionscontainedinsection17(1)oftheIncome-taxAct,1961
0.00 0.00
(b)Valueofperquisitesu/s17(2)Income-taxAct,1961 0.00 0.00(c)Profitsinlieuofsalaryundersection17(3)Income-taxAct,1961 0.00 0.00
2 Stock Option 0.00 0.003 Sweat Equity 0.00 0.004 Commission 0.00 0.00
-as%ofprofit 0.00 0.00-others,specify 0.00 0.00
5 Others, please specify 0.00 0.00 SpecialAllowance 0.00 0.00 Total 0.00 0.00
VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES: Type Section
of the Companies
Act
Brief Description
Details of Penalty /
Punishment/ Compounding fees imposed
Authority [RD / NCLT/ COURT]
Appeal made, if any (give
Details)
A. COMPANY NILPenaltyPunishmentCompounding
B. DIRECTORS NILPenaltyPunishmentCompounding
C. OTHER OFFICERS IN DEFAULT NIL
PenaltyPunishmentCompounding
On behalf of Board of Directors
Place: Mumbai Rahul Saraf Geeta Devi AgrawalDate: 21/08/2018 Whole-time Director Director DIN: 01494992 DIN: 08126967
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
MANAGEMENT DISCUSSION AND ANALYSIS REPORTINDUSTRY STRUCTURE AND DEVELOPMENT:CurrentlyyourcompanyInannaFashionandTrendsLimitedisinthebusinessoffashion,However,duetochallengesfromtheindustryplayersandnonapprovalofnameofthecompanyatBombayStockExchange,yourcompanycouldnotcommencebusinessinthetargetedsegment.Hence,theexistingpromotershavedecidedtohandoverthecompanytoMr.RahulSarafandMr.RahulSarafacquiredthecompanythroughanopenoffer.Mr.RahulSarafisamultifacetedbusinesspersonalityandhewilltakethecompanytonewheights.TheCompanyisdiversifyingintodifferentbusinessactivitieswithaviewtooptimizetheutilizationoftheresources.
OUTLOOK:Wehavebeenputting insignificantefforts towardsestablishing thenewbusiness lines.However theoutlookofnewbusinessdimensionswilltotallydependonmarketcircumstancesandselectedsectorforbusiness.Thenewmanagementofyourcompanywillputineffortsinidentifyingnewagebusinessopportunitieswhichisanon-trivialtaskanddependsonanumberoffactors.Henceinformationisbeingcollectedfromanumberofsourcesandbasedonwhichyourmanagementwillembarkuponasuitablestrategy.Alsoexpertopinionisbeingsoughtinordertocovervarioussectorspecificattributessuchaslevelofcompetition,economicactivitiesetc.
OPPORTUNITIES AND THREATS:Economicgrowthofaround7½%which,makesIndiaoneofthefastest-growingG20economy.Theaccelerationofstructuralreforms,themovetowardsarule-basedpolicyframeworkandlowcommoditypriceshaveprovidedastronggrowthimpetustothecountryasawhole.Recentderegulationmeasuresandeffortstoimprovetheeaseofdoingbusinesshavealsoboostedforeigninvestment.Inlinewiththisimpetus,keyopportunitiesandthreatsarebeingidentifiedforthesectors/businesslinesbeingevaluated.
RISKS AND CONCERN:Whilesettingupandconductingbusinessoperations,theCompanyisexposedtoavarietyofrisksthatareinherenttothesectorsinwhichitoperates.However,wehaveanintenseriskmanagementframeworkencompassingriskorganizationstructure,proceduresandtheriskmanagementpoliciestoeffectivelyidentifyandtacklerisks.Someofthe risks that we are possibly exposed to include:
• Increasingemployeebenefitscosts
• Broadeconomicuncertainties
• Techanddata/cyberrisks
• Complyingwithlaws
• Attractingandretainingtalent
Hence, theGlobaland Indianeconomywill haveaverygreat impacton the futuregrowthconsidering that theorganizationisundergoingamajortransformation.
INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:Considering thepresent levelofoperationsofyourCompany, themanagementhasevolvedasystemofstronginternal controls to ensure that the assets are safeguarded and transactions are authorized, recorded and correctly reported.Theinternalcontrolsystemissupplementedbymanagementreviewsandindependentperiodicalreviewsby theexternalcharteredaccountancyfirms,whichevaluate the functioningandqualityof internalcontrolsandprovides assurance of its adequacy andeffectiveness.TheCompany has an audit committee,which overseestheinternalcontrolsystemsandproceduresoftheCompany’sfinancialoperatingprocessesandthedisclosureofitsfinancial informationtoensurethatthefinancialstatement iscorrect,sufficientandcredible.AuditCommitteereviewssuchauditfindingsandtheadequacyofinternalcontrolsystems.TheStatutoryAuditorsoftheCompanyalsointeractwiththeAuditCommitteetosharetheirfindingsandthestatusofcorrectiveactionsunderimplementation.
DISCUSSION AND FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:TheCompany during the financial year under review, has generated revenue of Rs.842.91lacs (previous yearRs.213.89lacs),resultinginlossofRs.10.74lacs(lossinpreviousyearRs.130.15lacs)andthetotalexpenditureduringtheyearisRs.853.87lacsagainstexpenditureofpreviousyearwasRs.344.25lacs.
DuringtheFinancialYear,theCompanywasoperatingunderonesegmentonly(HumanResources).
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
CAUTIONARY STATEMENT:ThestatementsintheManagementDiscussionandAnalysisReportdescribingtheCompany’sobjectives,activities,projections,estimates,expectationsorpredictionsmaybe“forward looking statements” within the meaning of applicablesecuritieslawsandregulations.Actualresultscoulddiffermateriallyfromthoseexpressedor implied.ImportantfactorsthatcouldinfluencetheCompany’soperationsincludeeconomicdevelopmentswithinthecountry,demandandsupplyconditionsintheindustry,changesinGovernmentregulations,taxlawsandotherfactors.
On behalf of Board of Directors
Place: Mumbai Rahul Saraf Geeta Devi AgrawalDate: 21/08/2018 Whole-time Director Director DIN: 01494992 DIN: 08126967
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
REPORT ON CORPORATE GOVERNANCE
TheDirectors’ReportonthecomplianceoftheCorporateGovernanceCodeisgivenbelow:
CORPORATE GOVERNANCE:• Company’s Philosophy on Corporate Governance:Asagoodcorporatecitizen,theCompanyiscommittedtosoundcorporatepracticesbasedonconscience,openness,fairness,professionalismandaccountabilityinbuildingconfidenceofitsvariousstakeholdersinittherebypavingthewayforitslongtermsuccess.
BOARD OF DIRECTORS: • Composition of Board:Ason31stMarch,2018,thetotalBoardstrengthcomprisesofthefollowing:
Name of Director CategoryMr.NatwarSureka Managing DirectorMrs.ManjuSureka Non-IndependentandNon-ExecutiveDirectorBrijKishanRuia IndependentandNon-ExecutiveDirectorSandeep Mhaske IndependentandNon-ExecutiveDirector
Directorsareappointedorre-appointedwiththeapprovaloftheshareholders.Apartfromthedirectorsappointedforaspecific termand the independentdirectorof theCompanyall thedirectorsare liable to retireby rotationunlessotherwisespecificallyapprovedbytheshareholders.
•Board Training and InductionAtthetimeofappointingaDirector,aformalletterofappointmentisgiventothedirectorappointed,whichinteraliaexplainstherole,function,dutiesandresponsibilitiesexpectedofhimasaDirectoroftheCompany.TheDirectorisalsoexplainedindetailthecompliancesrequiredfromhimundertheCompaniesAct,ListingRegulationsandotherrelevantregulationsandhisaffirmationtakenwithrespecttothesame.
•Familiarization program for Independent DirectorTheCompanyhasconductedtheFamiliarizationprogramfor IndependentDirectorsappointedduring theyear.TheProgramaimstoprovideinsightsintotheCompanytoenabletheIndependentDirectortounderstanditsbusinessindepth, to acclimatize them with the processes, businesses and functionaries of the Company and to assist them in performingtheirroleasIndependentDirectorsoftheCompany.
• Meetings, agenda and proceedings etc. of the Board Meeting:Meetings:FiveBoardMeetingswereheldduringtheyearandthegapbetweentwomeetingsdidnotexceedonehundredandtwentydays.Thedatedonwhichsaidmeetingswereheld:
30.5.2017, 14.8.2017, 14.11.2017, 30.01.2018 and 14.2.2018ThelastAnnualGeneralMeeting(AGM)washeldonSeptember29,2017.TheattendancerecordoftheDirectorsattheBoardMeetingsduringtheyearendedon31stMarch,2018,andatthelastAGMisasunder:-
Name of the Director Category No. of Board Meetings attended
AttendanceAt last AGM
Mr.NatwarSureka Promoter-ExecutiveDirector 5 of 5 YesMrs.ManjuSureka Promoter-NonExecutiveDirector 5 of 5 YesMr.BrijkishoreRuia Independent–NonExecutiveDirector 5 of 5 YesMr.SandeepMhaske Independent–NonExecutiveDirector 5 of 5 Yes
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
Separate Meeting of Independent Directors:AsstipulatedbytheCodeofIndependentDirectorsunderScheduleIVoftheCompaniesAct,2013andRegulation25oftheListingRegulations,aSeparatemeetingoftheIndependentDirectorsoftheCompanywasheldon22ndMarch,2018toreviewtheperformanceofNon-independentDirectors(IncludingChairman)andtheBoardasawhole.
Agenda:All themeetings are conducted as perwell designed and structured agenda.All the agenda items are backed bynecessarysupportinginformationanddocuments(exceptforthecriticalpricesensitiveinformation,whichiscirculatedatthemeeting)toenabletheBoardtotakeinformeddecisions.AgendaalsoincludesminutesofthemeetingsofalltheBoardCommittees.Additionalagendaitemsintheformof“OtherBusiness”areincludedwiththepermissionoftheChairman.AgendapapersaregenerallycirculatedsevendayspriortotheBoardMeeting.Inaddition,foranybusinessexigencies, theresolutionsarepassedbycirculationandlaterplacedintheensuingBoardMeetingforratification/approval.
• Other Directorships etc.:NoneoftheDirectorsisaDirectorinmorethan10PublicLimitedCompaniesoractsasanIndependentDirectorinmorethan7ListedCompanies.Further,noneoftheDirectoractsasamemberofmorethan10committeesoractsasachairmanofmorethan5committeesacrossallPublicLimitedCompaniesinwhichheisaDirector.
ThedetailsoftheDirectorships,ChairmanshipsandtheCommitteemembershipsinotherCompanies(excludingPrivateLimited Companies, Foreign Companies and Section 8 Companies) held by the Directors as on 31st March, 2018, are givenbelow:-
Sr. No.
Name of the Director Other Directorship # Committee Positions ##
Chairman Member
1 Mr.NatwarSureka 3 - -
2 Mrs.ManjuSureka 2 - -
3 Mr.BrijkishoreRuia - - -
4 Mr.SandeepMhaske - - -
#ExcludingPrivateLimitedCompanies,ForeignCompanies,Section8CompaniesandAlternateDirectorships
##IncludesonlyAuditCommitteeandShareholders/InvestorsGrievanceCommittee(listedandunlisted).
Evaluation of the Board’s Performance:TheBoardhascarriedoutanannualevaluationof itsownperformance,boardcommitteesandindividualdirectorspursuanttotheprovisionsoftheActandthecorporategovernancerequirementasprescribedbytheSEBI(ListingObligationsandDisclosureRequirements),Regulations2015
The exercise was carried out through a structured evaluation process covering various aspects of the BoardsfunctioningsuchascompositionoftheBoard&committees,experience&competencies,performanceofspecificduties&obligations, governance issuesetc.Separateexercisewas carriedout toevaluate theperformanceof individualDirectors includingtheBoardChairmanwhowereevaluatedonparameterssuchasattendance,contributionat themeetingsandotherwise,independentjudgment,safeguardingofminorityshareholdersinterestetc.
TheevaluationoftheIndependentDirectorswascarriedoutbytheentireBoardandthatoftheChairmanandtheNon-IndependentDirectorswerecarriedoutbytheIndependentDirectors.TheDirectorsweresatisfiedwiththeevaluationresults,whichreflectedtheoverallengagementoftheBoardanditsCommitteeswiththeCompany.
Code of Conduct:The Board of Directors has laid down a Code of Conduct for Business and Ethics (the Code) for all the Board members andalltheemployeesinthemanagementgradeoftheCompany.TheCodecoversamongstotherthingstheCompany’scommitment to honest & ethical personal conduct, fair competition, corporate social responsibility, sustainableenvironment,health&safety,transparencyandcomplianceoflaws®ulationsetc.
AlltheBoardmembersandseniormanagementpersonnelhaveconfirmedcompliancewiththecode.AdeclarationtothateffectsignedbytheManagingDirectorisattachedandformspartoftheAnnualReportoftheCompany.
Prevention of Insider Trading Code:TheCompanyhasadoptedaCodeofConduct forPreventionof InsiderTradingwitha view to regulate trading in
37
25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
securitiesbytheDirectorsanddesignatedemployeesoftheCompany.TheCoderequirespre-clearancefordealingin the Company’s shares and prohibits the purchase or sale of Company shares by the Directors and the designated employeeswhileinpossessionofunpublishedpricesensitiveinformationinrelationtotheCompanyandduringtheperiodwhentheTradingWindowisclosed.TheBoardisresponsibleforimplementationoftheCode.
COMMITTEES OF THE BOARD:Withaviewtohaveamore focusedattentiononbusinessandforbettergovernanceandaccountability, theBoardhasconstitutedthefollowingmandatorycommitteesviz.AuditCommittee,Stakeholders’RelationshipCommitteeandNomination&RemunerationCommittee.Thetermsof referenceof theseCommitteesaredeterminedby theBoardandtheirrelevancereviewedfromtimetotime.MeetingsofeachoftheseCommitteesareconvenedbytherespectiveChairman of the Committee, who also informs the Board about the summary of discussions held in the Committee Meetings.TheMinutesoftheCommitteeMeetingsaresenttoallDirectorsindividuallyandtabledattheBoardMeetings.
a) Audit Committees TheAuditCommitteeoftheCompanyisconstitutedinlinewiththeprovisionsofSection177oftheCompanies
Act,2013readwithRegulation18ofSecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015.TheAuditCommitteemetfivetimesduringtheyearon:
10.4.2017, 30.5.2017, 14.8.2017, 14.11.2017 and 14.2.2018 TheBoardhasconstitutedanAuditCommitteecomprisingofthreedirectors,twoindependentdirectorsandone
isNonIndependentdirectorwhoarewellversedwithfinancialmattersandcorporatelaws.
The composition of the Committee during year ended March 31, 2018 and the details of meetings held and attended by the Directors are as under:
Name Category Position Number of meetings during
year ended March 31, 2018Held Attended
Mr.BrijkishoreRuia IndependentandNon-ExecutiveDirector
Chairman 5 5
Mrs.ManjuSureka Non-IndependentandNon-ExecutiveDirector
Member 5 5
Mr.SandeepMhaske IndependentandNon-ExecutiveDirector
Member 5 5
Powers of the Audit Committee
1) Toinvestigateanyactivitywithinitstermsofreference.
2) Toseekinformationfromanyemployee.
3) Toobtainoutsidelegalorotherprofessionaladvice.
4) Tosecureattendanceofoutsiderswithrelevantexpertise,ifitconsidersnecessary.
Role of the Audit Committee
ThetermsofreferencefortheAuditCommitteearebroadlyasunder:
1) OversightoftheCompany’sfinancialreportingprocessandthedisclosureofitsfinancialinformationtoensurethatthefinancialstatementiscorrect,sufficientandcredible;
2) Recommendingtheappointment,remunerationandtermsofappointmentofauditorsofthecompany;
3) Approvalofpaymenttostatutoryauditorsforanyotherservicesrenderedbythestatutoryauditors;
4) Reviewing, with themanagement the annual financial statements and the auditor’s report thereon, beforesubmissiontotheboardforapproval,withparticularreferenceto:
a. MattersrequiredtobeincludedinDirector’sResponsibilityStatementincludedinBoard’sreport.
b. Changes,ifany,inaccountingpoliciesandpracticesandreasonsforthesame.
c. Majoraccountingentriesbasedonexerciseofjudgmentbymanagement.
d. Significantadjustmentsmadeinthefinancialstatementsarisingoutofauditfindings.
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
e. Compliancewithlistingandotherlegalrequirementsrelatingtofinancialstatements.
f. Disclosureofanyrelatedpartytransactions.
g. Qualificationsinthedraftauditreport.
5) Reviewing, with the management, the quarterly financial statements before submission to the Board forapproval;
6) Reviewing, with the management, statement of uses and application of funds raised through an issue,statementoffundsutilisedforotherpurposesandreportofmonitoringagency;
7) Reviewandmonitortheauditors’independenceandperformance,andeffectivenessofauditprocess;
8) Approvaloranysubsequentmodificationoftransactionsofthecompanywithrelatedparties;
9) Scrutinyofinter-corporateloansandinvestments;
10) Valuationofundertakingsorassetsofthecompany,whereveritisnecessary;
11) Evaluationofinternalfinancialcontrolsandriskmanagementsystems;
12) Reviewing,withthemanagement,performanceofstatutoryandinternalauditors,adequacyoftheinternalcontrolsystems;
13) Reviewing the adequacy of internal audit function, if any, including the structure of the internal auditdepartment,staffingandseniorityoftheofficialheadingthedepartment,reportingstructurecoverageandfrequencyofinternalaudit;
14) Discussionwithinternalauditorsofanysignificantfindingsandfollowupthereon;
15) Reviewing the findings of any internal investigations by the internal auditors intomatterswhere there issuspected fraud or irregularity or a failure of internal control systems of a material nature and reporting the mattertotheboard;
16) Discussionwithstatutoryauditorsbeforetheauditcommencesaboutnatureandscopeofauditaswellaspost-auditdiscussiontoascertainanyareaofconcern;
17) To look into the reasons for substantial defaults in the payment to the depositors, debenture holders, shareholders(incaseofnon-paymentofdeclareddividends)andcreditors;
18) ToreviewthefunctioningoftheWhistleBlowermechanism;
19) ApprovalofappointmentofCFO;
20) To review report submitted byMonitoringAgency informingmaterial deviations in the utilisation of issueproceedsandtomakenecessaryrecommendationstotheBoard,if,whenandwhereapplicable;
21) CarryingoutanyotherfunctionasismentionedinthetermsofreferenceoftheAuditcommittee.
22) Reviewingthefollowinginformation:
a) TheManagementDiscussionandAnalysisoffinancialconditionandresultsofoperations;
b) Statement of significant related party transactions (as defined by the Audit Committee), submitted bymanagement;
c) Managementletters/lettersofinternalcontrolweaknessesissuedbythestatutoryauditors;
d) Internalauditreportsrelatingtointernalcontrolweaknesses;and
e) Reviewing the appointment, removal and terms of remuneration of the Chief internal auditor / internalauditor(s).
b) Stakeholders’ Relationship Committee ThecommitteeisconstitutedinlinewiththeprovisionsoftheRegulation20ofSEBIListingRegulationsreadwith
section17oftheAct.TheCommitteeperiodicallyreviewsthestatusofshareholders’grievancesandredressalofthesame.TheCommitteemetfourtimesduringtheyearon:
30.5.2017, 14.8.2017, 14.11.2017 and 14.2.2018 Thenecessaryquorumwaspresentforallthemeetings.TheChairmanoftheCommitteewaspresentatthelast
AnnualGeneralMeetingoftheCompanyheldonSeptember29,2017.
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
The composition of the Committee during year ended March 31, 2018and the details of meetings held and attended by the Directors are as under:
Name Category Position Number of meetings duringyear ended March 31, 2018
Held AttendedMr.BrijkishoreRuia Independent–Non-Executive
DirectorChairman 4 4
Mr.NatwarBalkrishnaSureka
ExecutiveDirector Member 4 4
Mr.SandeepMhaske Independent–Non-ExecutiveDirector
Member 4 4
TheCompanyhasappointedUniversalCapitalSecuritiesPrivateLimitedasitsRegistrarsandTransferAgentstoconsider,approveorrejectthesharetransfer,transmission,consolidations,splitting,demat&rematofsharesandtocarryoutrelatedfunctionsandalldocumentationandproceduresinconnectionwiththesame.
Noneofthecomplaintsispendingforaperiodexceeding30days.Alltherequestsfortransferofshareshavebeenprocessedontimeandtherearenotransferspendingformorethan15days.
Overandabovetheaforesaidcomplaints,theCompanyanditsRegistrar&ShareTransferAgenthavereceivedletters / queries / requests on variousmatters such as change of address, change of bank particulars, ECSmandate,nominationrequestetc.andwearepleasedtoreportthatexceptforrequestsreceivedduringtheyearendwhichareunderprocess,allotherqueries/requestshavebeenrepliedontime.
c) Nomination and Remuneration Committee TheNominationandRemunerationCommitteemetonApril10,2017andMay30,2017.Thenecessaryquorum
waspresentforallthemeetings.ThecompositionoftheCommitteeduringyearendedMarch31,2018andthedetails of meetings held and attended by the Directors are as under:
Name Category Position Number of meetings duringthe year ended March 31, 2018
Held AttendedMr.BrijkishoreRuia Independent-Non-
ExecutiveDirectorChairman 2 2
Mrs.ManjuSureka ExecutiveDirector Member 2 2Mr.SandeepMhaske
Independent-Non-ExecutiveDirector
Member 2 2
ThebroadtermsofreferenceoftheNominationandRemunerationCommitteeare:
1) Toformulatethecriteriafordeterminingqualifications,competencies,positiveattributesandindependenceforappointmentofaDirector(ExecutiveandNon-Executive)andrecommendtotheBoard,policiesrelatingtotheremunerationoftheDirectors,keymanagerialpersonnelandotheremployees;
2) ToformulatethecriteriaforevaluationofalltheDirectorsontheBoard;
3) TodeviseapolicyonBoarddiversity;and
4) Tolayoutremunerationprinciplesforemployeeslinkedtotheireffort,performanceandachievementrelatingtotheCompany’sgoals.
Further, the details of remuneration paid to all the Directors and the other disclosures required to be made havebeenpublishedintheprevioussectionofthisReporttitled“BoardofDirectors”.
SittingfeesandcommissionpaidtoNon-ExecutiveDirectors:
Nosittingfeeshavebeenpaidtoanydirectorduringtheyear.
Reconstitution of Committee : TheBoardofDirectorsoftheCompanyattheirmeetingheldonJuly27,2018havereconstitutedtheaforesaid
CommitteesandthecompositionofeachoftheaboveCommitteesasondateisgivenbelow:
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
AuditCommittee Ms.PurnimaParashar-ChairmanMr.RishabhSharma-MemberMrs.GitaDeviAgarwal–Member
NominationandRemunerationCommittee
Ms.PurnimaParashar-ChairmanMr.RishabhSharma-MemberMrs.GitaDeviAgarwal–Member
StakeholdersRelationshipCommittee
Mr.RishabhSharma-ChairmanMs.PurnimaParashar-MemberMr.RahulSaraf–Member
d) Risk Management Policy - TheAuditCommitteeisempoweredtotakethenecessarystepsformitigatingriskforwhichRiskManagement
Policy was framed under Regulation 21 of Securities and Exchange Board of India (Listing Obligations andDisclosureRequirements)Regulations,2015
a. Its terms of reference of such Committee are stated as below:• Toapprovestructures,analyzerisksandbenefits,seekindependentopinionwithregardtostructureor
views.
• Reviewingandapprovingriskrelateddisclosures.
• Responsiblefordaytodayoversightofriskmanagementincludingidentification,impactassessment,monitoring,mitigationandreporting.
• ProvidingupdatestotheBoardonenterpriserisksandactiontaken.EnsurecompliancewithpoliciesandprocedureslaiddownbytheCompanyforspecificbusinessunits.
• Maintenanceanddevelopmentofasupportiveculture,inrelationtothemanagementofriskappropriatelyembedded through procedures, training and leadership actions so that all employees are alert to the widerimpactonthewholeorganisationoftheiractionsanddecisions.
• AdvisingBoardonallhighlevelriskmatters.
• Toreviewtheeffectivenessoftheinternalcontrolsystemandriskmanagementframeworkinrelationtotheachievementofbusinessobjectives.
• Reportingriskeventsandincidentsinatimelymanner.
VIGIL MECHANISM / WHISTLE BLOWER POLICYTheCompanyhasaWhistle-BlowerPolicyforestablishingavigilmechanismforDirectorsandemployeestoreportgenuineconcernsregardingunethicalbehavior,actualorsuspectedfraudorviolationoftheCompany‘sCodeofConductandEthicspolicy.ThesaidmechanismalsoprovidesforadequatesafeguardsagainstvictimizationofpersonswhousesuchmechanismandmakesprovisionfordirectaccesstothechairpersonoftheAuditCommitteeinappropriateorexceptionalcases.WeaffirmthatnoemployeeoftheCompanywasdeniedaccesstotheAuditCommittee.ThesaidpolicyisuploadedonthewebsiteoftheCompany:http://frontlinegroup.in/inanna-fashion/investor-relation.html.
GENERAL BODY MEETINGS:(i) Annual General Meeting (AGM): Thelocation,timeandvenueofthelastthreeAnnualGeneralMeetingswereasunder:
Meeting Date, Time and Venue Special resolutions passedTwenty – fourth
AnnualGeneralMeetings
Date-Friday,September29,2017Time–3.00P.M.Venue-A-9,ParleColonyChs,SahakarRoad,VileParle(E),Mumbai400057
NIL
Twenty – third
AnnualGeneralMeetings
Date-Friday,September30,2016Time–3.00P.M.Venue-A-9,ParleColonyChs,SahakarRoad,VileParle(E),Mumbai400057
Re-appointmentofMr.NatwarlalSureka as a Managing Director of the Company for a period of Three yearsw.e.f.June20,2016toJune19,2019
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
Twenty – second AnnualGeneralMeetings
Date-Monday,September29,2015Time–2.30P.M.Venue-A-9,ParleColonyChs,SahakarRoad,VileParle(E),Mumbai400057
AdoptionofnewsetofArticlesofAssociation.
(ii) Extra Ordinary General Meeting (EGM): InadditiontoAnnualGeneralMeeting,theCompanyholdsGeneralMeetingsoftheshareholdersasandwhen
need arises.During the year, oneExtraOrdinaryGeneralMeetingwas held on 1st March 2018 for issue of 1,50,00,000 warrants at a price of `8 each amounting to `12,00,00,000/-onpreferentialbasistoMr.RahulSaraf,whichwillbesubjecttotheregulatoryapprovalsandMr.RahulSaraffulfillingopenofferobligations.
(iii) Postal Ballot: TheCompanyhasnotpassedanyspecialresolutionthroughPostalBallotduringtheyearendedMarch31,2018.
RELATED PARTY TRANSACTIONSAll transactionsentered intowithRelatedPartiesasdefinedunder theCompaniesAct,2013andRegulation23ofListingRegulationsduringthefinancialyearwereintheordinarycourseofbusinessandonanarm’slengthpricingbasisanddonotattracttheprovisionsofSection188oftheCompaniesAct,2013.TherewerenomateriallysignificanttransactionswithrelatedpartiesduringthefinancialyearwhichwereinconflictwiththeinterestoftheCompany.SuitabledisclosureasrequiredbytheAccountingStandards(AS-18)hasbeenmadeinthenotestotheFinancialStatements.
DISCLOSURES:Strictures and PenaltiesNo strictures or penalties have been imposed on theCompany by theStockExchanges or by theSecurities andExchangeBoardofIndia(SEBI)orbyanystatutoryauthorityonanymattersrelatedtocapitalmarketsduringthelastthreeyears.
Internal ControlsThe Company has a formal system of internal control testing which examines both the design effectiveness andoperational effectiveness to ensure reliability of financial and operational information and all statutory/ regulatorycompliances.
Independent DirectorTheIndependentDirectorhasconfirmedthattheymeetthecriteriaof‘Independence’asstipulatedunderRegulation16oftheListingRegulations.
Details of compliance with mandatory requirements and adoption of non-mandatory requirements of the Listing Regulations:The Company has fully complied with themandatory requirements of the Listing Regulations. No non-mandatoryrequirementsofListingRegulationisadoptedbytheCompany.
Policy for determining material subsidiaries:SincetheCompanydonothaveanysubsidiarycompany,nopolicyhasbeenformulatedinthisconnection.
Commodity price risks and commodity hedging activities:TheCompanyisnotdealingwithanysuchactivity.
Noncompliance of requirement of Corporate Governance:TheCompanyisfullycompliantwithrespecttomandatoryrequirementofCorporateGovernanceReport.
Disclosures of the compliance of Corporate Governance Requirement:TheCompanyhasmadedisclosuresofthecomplianceofCorporateGovernanceRequirementsasspecifiedinregulation17to27andclauses(b)to(i)ofsubregulation(2)ofregulation46ismadeinthissectionofCorporateGovernanceReport.
Compliance certificate signed by a Statutory Auditors regarding compliance of conditions of corporate governance is annexed herewith.• Disclosure with respect to unclaimed suspense account: N.A.
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
CEO/CFO CERTIFICATION:TheManagingDirector has given aCertificate to theBoard as contemplated in Schedule-V of theSecurities andExchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and is separatelyannexed.
MEANS OF COMMUNICATION:Thequarterly,half-yearlyandyearlyfinancialresultsoftheCompanyaresenttotheStockExchangesimmediatelyaftertheseareapprovedbytheBoard.
TheseresultsaresimultaneouslyuploadedonthewebsiteofBombayStockExchangeofIndiaLtd.TheresultsarealsodisplayedontheCompany’swebsitehttp://frontlinegroup.in/inanna-fashion/investor-relation.html.
GENERAL INFORMATION TO SHAREHOLDERS1. Annual General Meeting (AGM)
Day: FridayDate: 28th September, 2018Time: 11.00AMVenue: FMBanquet,MiniHall, 8/B,UdyogNagar,KamathClubLane,OffS.V.Road,Goregaon
West,Mumbai4000622. Financial Year: FinancialYear-1stApril,2018to31stMarch,2019.
3. Financial Calendar: The Company follows the period of 1stApril,2018to31stMarch,2019,astheFinancialYear
First quarterly results OnorbeforeAugust14,2018Second quarterly / Half yearly results OnorbeforeNovember14,2018Third quarterly results On or before February14,2019AnnualresultsfortheyearendingonMarch31,2019 On or before May30,2019Websitewhere the financial results, shareholding pattern,annualreportetc.areuploaded
www.bseindia.com
4. Date of Book Closure: Saturday, September 22, 2018toFriday,September28,2018(bothdaysinclusive)
5. Listing on Stock Exchange: The Equity Shares of the Company are listed on:
Bombay Stock Exchange Limited (BSE)PhirozeJeejeebhoyTowers
DalalStreetMumbai–400001
Listingfeesasapplicablehavebeenpaid.
6. Stock Code:
Stock Exchange CodeBSE 521167DematISINNumbersinNSDLandCDSL INE485D01035CIN L17200MH1994PLC076018
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
7. Market Price Data: The high / low market price of the shares during the year ended March 31, 2018 at the Bombay Stock Exchange
areasunder:-
Month Bombay Stock Exchange (Face Value of Rs. 5/- Per Share)High Low
April2017 8.09 7.45May 2017 8.26 7.42June2017 8.38 7.22July2017 8.55 7.28August2017 8.3 6.49September 2017 7.86 6.55October 2017 8.45 6.15November2017 7.95 6December 2017 8.33 6January2018 8.65 7.45February 2018 11.38 9.03March 2018 10.79 8.21
8. Performance in comparison to Bombay Stock Exchange Limited SENSEX
9. Registrar and Share Transfer Agents:Universal Capital Securities Private Limited(FormerlyknownasMondkarComputersPrivateLimited)21, ShakilNiwas, OppSatyaSaibaba Temple,MahakaliCavesRoad,Andheri(E),Mumbai,Maharashtra,400093Tel.No:022-28207203-05/28257641Fax:022-28207207EmailID:[email protected]
10. Investor’s Complaints to be addressed to: RegistrarandShareTransferAgentsattheabovementionedaddresses.
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
11. Share Transfer System: SharetransfersinphysicalformareprocessedandthesharecertificatesaregenerallyreturnedtotheCompany
are complete in all respects.
12. Distribution of Shareholding as on March 31, 2018is as under: -
Shareholders Face Value of Rs. 5/- Per ShareNumbers % of
shareholdersNo. of Shares %
To total1 – 500 8469 89.016 584791 2.742501-1000 357 3.752 307165 1.4401001-2000 213 2.239 361983 1.6982001-3000 73 0.767 194024 0.9103001-4000 40 0.420 146310 0.6864001-5000 64 0.673 306224 1.4365001-10000 121 1.272 925663 4.34110001andabove 177 1.860 18497918 86.747Total 9514 100.00 106620390 100.00
13. Dematerialization of Shares and Liquidity: About98%of total equity share capital is held in dematerialised form with National Securities Depository Limited
(NSDL) and CentralDepositoryServices(India)Limited(CDSL) as onMarch31,2018.
Thebreak-upofEquitysharesheldinphysicalandDematformasonMarch31,2018isgivenbelow:
Particulars Shares %Physical Shares 411738 1.93Demat SharesNSDL 6698224 31.41CDSL 14214116 66.66Total 21324078 100.00
Foranyassistanceinconvertingphysicalsharesinelectronicform,investorsmayapproachRegistrarandShareTransferAgentsattheabovementionedaddresses.
14. Compliance Officer: Mr.RahulSaraf
Tel.No/Fax:022-66067200EmailID:[email protected]
15. Electronic Clearing Service (ECS): TheCompanyhasextendedtheECSfacilitytoshareholderstoenablethemtoreceivedividendthroughelectronic
modeintheirbankaccount.TheCompanyencouragesmemberstoavailofthisfacilityasECSprovidesadequateprotection against fraudulent interception and encashment of dividend warrants, apart from eliminating loss/damageofdividendwarrantsintransitandcorrespondencewiththeCompanyonrevalidation/issuanceofduplicatedividendwarrants.
16. Bank Details for electronic shareholding: MembersarerequestedtonotifytheirDepositoryParticipant(DP)aboutthechangesinthebankdetails.Members
arerequestedtofurnishcompletedetailsoftheirbankaccounts,includingMICRcodesoftheirbanks,totheirDPs.
17. Shareholding Pattern as on March 31, 2018: TheshareholdingofdifferentcategoriesoftheshareholdersasonMarch31,2018isgivenbelow:-
Sr. No
Category of Shareholders Total Holdings % of Sharehold-ings
1. Promoter&PromoterGroup 34,37,798 16.122. MutualFundsandUTI 960 0.003. Banks, Financial Institutions, InsuranceCompanies and
Venture Capital Fund- -
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
4. FIIs/ForeignBodies - -5. Bodies Corporate 1538424 7.216. IndianPublic 14272168 66.937. NRIs 25631 0.128. Clearing Member 583503 2.749. HUF 1465594 6.87
TOTAL 2,13,24,078 100.0018 Registered Office:
103, Hubtown Solaris,NSPhadkeMarg,Andheri(East),Mumbai-400069,Maharashtra.
19. Permanent Account Number (PAN): MemberswhoholdsharesinphysicalformareadvisedthatSEBIhasmadeitmandatorythatacopyofthePAN
cardofthetransferee/s,members,survivingjointholders/legalheirsbefurnishedtotheCompanywhileobtainingtheservicesoftransfer,transposition,transmissionandissueofduplicatesharecertificates.
20. Pending Investors’ Grievances: AnyMember/Investorwhosegrievancehasnotbeenresolvedsatisfactorily,maykindlywritetotheCompany
SecretaryandHeadComplianceattheRegisteredOfficewithacopyoftheearliercorrespondence.
21. Reconciliation of Share Capital Audit: AsstipulatedbySecuritiesandExchangeBoardofIndia(SEBI),aqualifiedpracticingCompanySecretarycarries
out theShareCapitalAudit to reconcile the total admitted capitalwithNational SecuritiesDepository Limited(NSDL)andCentralDepositoryServices(India)Limited(CDSL)andthetotalissuedandlistedcapital.
ThisauditiscarriedouteveryquarterandthereportthereonissubmittedtostockexchangesandisalsoplacedbeforetheBoardofDirectors.Nodiscrepancieswerenoticedduringtheseaudits.
22. Outstanding GDRs or Warrants or any Convertible Instrument, conversion Dates and likely impact on Equity:
TheCompanyhasnotissuedanyGDRs/ADRs/WarrantsoranyConvertibleInstruments.
23. Addresses for CorrespondenceInvestor’s Correspondence:
For transfer of shares in physical form, dematerialization and rematerialisation: UniversalCapitalSecuritiesPrivate.Limited 21, ShakilNiwas, OppSatyaSaibaba Temple, MahakaliCavesRoad,Andheri(E) Mumbai,Maharashtra,400093 Tel. No:022-28207203-05/28257641 Fax:022-28207207 Email ID: [email protected]
Any query on Annual Report:InannaFashionandTrendsLimited(Formerly known as Frontline Business solution Limited)103, Hubtown Solaris,NSPhadkeMarg,Andheri(East),Mumbai-400069,Maharashtra,India Email ID: [email protected]
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
Declaration Regarding Code of ConductAsprovidedunderSchedule-VoftheSecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015,theBoardofDirectorsandtheSeniorManagementPersonnelhaveconfirmedcompliancewiththeCodeofConductandEthicsforthefinancialyearendedMarch,31,2018.
Natwar SurekaDate: May 30, 2018 Managing Director Place: Mumbai DIN.01296522
M. D. / CFO Certification
The Board of Directors
Inanna Fashion and Trends Limited WehavereviewedthefinancialstatementsandthecashflowstatementofInanna Fashion and Trends Limited (Formerly known as Frontline Business Solutions Limited) for the year ended 31st March, 2018 and that to the bestofourknowledgeandbelief,westatethat;
(a) (i) these statements do not contain any materially untrue statement or omit any material fact or contain statementsthatmaybemisleading;
(ii)thesestatementspresentatrueandfairviewoftheCompany’saffairsandareincompliancewithcurrentaccountingstandards,applicablelawsandregulations.
(b) there are, to the best of our knowledge and belief, no transactions entered into by the Company during the year whicharefraudulent,illegalorinviolationoftheCompany’scodeofconduct.
(c) we accept responsibility for establishing andmaintaining internal controls for financial reporting.We haveevaluatedtheeffectivenessofinternalcontrolsystemsoftheCompanypertainingtofinancialreportingandhavedisclosedtotheAuditorsandtheAuditCommittee,deficienciesinthedesignoroperationofsuchinternalcontrols,ifany,ofwhichweareawareandstepstakenorproposedtobetakenforrectifyingthesedeficiencies.
(d) wehaveindicatedtotheAuditorsandtheAuditCommittee:
(i) significantchanges,ifany,intheinternalcontroloverfinancialreportingduringtheyear.
(ii) significantchanges, ifany, inaccountingpoliciesmadeduring theyearand that thesamehavebeendisclosedinthenotestothefinancialstatements;and
(iii) instancesofsignificant fraudofwhichwehavebecomeawareand the involvement therein, ifany,ofthemanagementoranemployeehavingasignificantroleintheCompany’sinternalcontrolsystemoverfinancialreporting.
Natwar SurekaDate: May 30, 2018 Managing Director Place: Mumbai DIN.01296522
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
Auditor’s CertificateAuditors’ certificate on compliance with the conditions of Corporate Governance under Chapter IV of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015
ToThe Members of M/s INANNA FASHION AND TRENDS LIMITED(Formerly known as M/s Frontline Solutions Limited)
WehaveexaminedthecomplianceofconditionsofcorporategovernancebyM/sINANNAFASHIONANDTRENDSLIMITED(FormerlyknownasM/sFrontlineBusinessSolutionsLimited) (‘TheCompany’) for theyearended31March,2018,asstipulatedunderregulation17to27andclauses(b)to(i)ofregulation46(2)andparaCandDofScheduleVoftheSecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Reg-ulations,2015.Wehaveobtainedalltheinformationandexplanationswhichtothebestofourknowledgeandbeliefwerenecessaryforthepurposesofcertification.
ThecomplianceofconditionsofcorporategovernanceistheresponsibilityoftheManagement.Ourexaminationwas limited to procedures and implementation thereof, adopted by the Company for ensuring the compliance of the conditionsofthecorporategovernance.ItisneitheranauditnoranexpressionofopiniononthefinancialstatementsoftheCompany.
Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,wecertifythattheCompanyhascompliedwiththeconditionsofcorporategovernanceasstipulatedintheabovementionedRegula-tions except for:
1. CompanyhasnotappointedaCompanySecretaryasitsComplianceOfficer;
2. CompanyhasnotappointedInternalAuditorasrequiredu/s138ofCompaniesAct,2013.
WefurtherstatethatsuchcomplianceisneitheranassuranceastofutureviabilityoftheCompanynortheefficiencyoreffectivenesswithwhichtheManagementhasconductedtheaffairsoftheCompany.
For B.N. Kedia & Co.Chartered Accountants
F.R.N. 001652N
(CA S.K. Kedia)Place: Mumbai PartnerDated: 21/08/2018 Membership No.: 052579
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
INDEPENDENT AUDITOR’S REPORT
To The MembersINANNA 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 IndAS financial statements of INANNA FASHION AND
TRENDS LIMITED (FormallyknownasM/s.FRONTLINEBUSINESSSOLUTIONSLIMITED)(“theCompany”),whichcomprisetheBalanceSheetasatMarch31,2018,theStatementofProfitandLoss(includingothercomprehensiveincome),theCashFlowStatementandStatementofChangeinEquityfortheyearthenended,andasummaryofsignificantaccountingpoliciesandotherexplanatoryinformation.
Management’s Responsibility for the Financial Statements 2. TheCompany’sBoardofDirectorsisresponsibleforthemattersstatedinSection134(5)oftheCompanies
Act,2013(“theAct”)withrespecttothepreparationofthesestandalonefinancialstatementsthatgiveatrueandfairviewofthefinancialposition,financialperformanceincludingothercomprehensiveincome,cashflowsandChangeinEquityoftheCompanyinaccordancewiththeaccountingprinciplesgenerallyacceptedinIndia,includingtheIndianAccountingStandards(IndAS)prescribedunderSection133oftheAct.
ThisresponsibilityalsoincludesmaintenanceofadequateaccountingrecordsinaccordancewiththeprovisionsoftheActforsafeguardingoftheassetsoftheCompanyandforpreventinganddetectingfraudsandotherirregularities;selectionandapplicationofappropriateaccountingpolicies;making judgmentsandestimatesthatarereasonableandprudent;anddesign,implementationandmaintenanceofadequateinternalfinancialcontrols,thatwereoperatingeffectivelyforensuringtheaccuracyandcompletenessoftheaccountingrecords,relevanttothepreparationandpresentationofthefinancialstatementsthatgiveatrueandfairviewandarefreefrommaterialmisstatement,whetherduetofraudorerror.
Auditor’s Responsibility 3. Ourresponsibilityistoexpressanopiniononthesestandalonefinancialstatementsbasedonouraudit.
4. Inconductingouraudit,wehave taken intoaccount theprovisionsof theAct, theaccountingandauditingstandardsandmatterswhicharerequiredtobeincludedintheauditreportundertheprovisionsoftheActandtheRulesmadethereunderandtheOrderissuedundersection143(11)oftheAct.
5. WeconductedourauditofthestandaloneIndASfinancialstatementsinaccordancewiththeStandardsonAuditing specified underSection 143(10) of theAct.ThoseStandards require thatwe complywith ethicalrequirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financialstatementsarefreefrommaterialmisstatements.
6. AnauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresinthestandaloneIndASfinancialstatements.Theproceduresselecteddependontheauditor’sjudgment,includingtheassessmentoftherisksofmaterialmisstatementofthestandaloneIndASfinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditorconsidersinternalfinancialcontrolrelevanttotheCompany’spreparationofthestandaloneIndASfinancialstatementsthatgiveatrueandfairviewinordertodesignauditproceduresthatareappropriateinthecircumstances.Anauditalsoincludesevaluatingthe appropriateness of accounting policies used and the reasonableness of the accounting estimates made bytheCompany’sdirectors,aswellasevaluatingtheoverallpresentationofthestandaloneIndASfinancialstatements.
7. WebelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopiniononthestandaloneIndASfinancialstatements.
Opinion 8. Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,theaforesaid
financialstatementsgivetheinformationrequiredbytheActinthemannersorequiredandgiveatrueandfairviewinconformitywiththeaccountingprinciplesgenerallyacceptedinIndia,ofthestateofaffairsoftheCompanyasatMarch31,2018,anditsprofit,totalcomprehensiveincome,itscashflowandthechangeinequityfortheyearendedonthatdate.
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
Key Audit Matters9. Keyauditmattersarethosemattersthat,inourprofessionaljudgment,wereofmostsignificanceinourauditof
thefinancialstatementsofthecurrentperiod.Thesematterswereaddressedinthecontextofourauditofthefinancialstatementsasawhole,andinformingouropinionthereon,andwedonotprovideaseparateopinionon these matters.
Report on Other Legal and Regulatory Requirements 10. AsrequiredbytheCompanies(Auditors’Report)Order2015(“theOrder”)issuedbytheCentralGovernment
in terms of Section 143(11) of theAct,we give in the ‘AnnexureA’ statement on thematters specified inparagraphs3and4oftheOrder.
11. AsrequiredbySection143(3)oftheAct,wereportthat:
a) Wehavesoughtandobtainedalltheinformationandexplanationswhichtothebestofourknowledgeandbeliefwerenecessaryforthepurposesofouraudit;
b) Inouropinion,properbooksofaccountasrequiredbylawhavebeenkeptbytheCompanysofarasitappearsfromourexaminationofthosebooks;
c) TheBalanceSheet,thestatementofProfitandLossincludingothercomprehensiveincome,thecashflowsandChangeinEquitydealtwithbythisReportareinagreementwiththebooksofaccount;
d) Inouropinion,theaforesaidstandaloneIndASfinancialstatementscomplywiththeAccountingStandardsprescribedunderSection133oftheAct,readwithRule7oftheCompanies(Accounts)Rules,2014;
e) OnthebasisofthewrittenrepresentationsreceivedfromthedirectorsasonMarch31,2018,takenonrecordbytheBoardofDirectors,noneofthedirectorsisdisqualifiedasonMarch31,2018frombeingappointedasadirectorintermsofSection164(2)oftheAct;
f) With respect to the internalfinancialcontrolswith reference to thefinancial reportingof theCompanyandtheoperatingeffectivenessofsuchcontrols,refertoourseparateReportin‘AnnexureB’.Ourreportexpressesanunmodifiedopinionontheinternalfinancialcontrolswithreferencetothefinancialreporting.
g) WithrespecttotheothermatterstobeincludedintheAuditor’sReport inaccordancewithRule11oftheCompanies(AuditandAuditors)Rules,2014,inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous:
i) TheCompany does not have any pending litigationswhichwould impact its standalone IndASfinancialstatements;
ii) TheCompanydidnothaveanylong-termcontractsincludingderivativecontractsforwhichtherewereanymaterialforeseeablelosses;
iii) AnamountofRs.80,873/-beingunpaiddividendaccountwhichisoutstandingsinceformorethan7yearsarerequiredtobetransferredtotheInvestorEducationandProtectionFundbytheCompany.
For B.N. Kedia & Co.Chartered Accountants
F.R.N. 001652N
(CA S.K. Kedia)Place: Mumbai PartnerDated: 21/08/2018 Membership No.: 052579
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
Annexure-A to Independent Auditor’s Report(Referred to in paragraph 9 under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date) i. Inrespectofitsfixedassets:
a) TheCompanyhasmaintainedproperrecordsshowingfullparticularsincludingquantitativedetailsandsituationoffixedassets.
b) TheCompanyhasaprogramofphysicalverificationofall itsfixedassets inaphasedmannerwhich,inouropinion,isreasonablehavingregardtothesizeoftheCompanyandthenatureofitsassets.Inaccordancewithsuchaprogram,certainfixedassetswerephysicallyverifiedbythemanagementduringtheyear.Accordingtotheinformationandexplanationgiventous,nomaterialdiscrepancieswerenoticedonsuchverification.
c) AccordingtoinformationandexplanationgiventousandonthebasisofourexaminationofrecordsoftheCompany,thetitledeedsoftheimmovablepropertiesareheldinthenameoftheCompany.
ii. Inrespectofitsinventories:
Asexplainedtous,theinventorieswerephysicallyverifiedduringtheyearbytheManagementatreasonableintervalsandnomaterialdiscrepancywasnoticedonphysicalverification.
iii. TheCompanyhasgrantedinterestfreeunsecuredloanstoapartycoveredintheregistermaintainedunderSection189oftheCompaniesAct,2013.Themaximumamountoutstandingduringtheyearandyear-endbalanceofsuchloanaggregatetoRs94,81,563/-andRs.91,23,713/-respectively.
a. Inrespectoftheaforesaidloans,thetermsandconditionsunderwhichsuchloansweregrantedarenotprejudicialtotheCompany’sinterest.
b. Thesaidloansarerepayableondemandandthereforethequestionofitsoverdueand/oramountofoverdueand/orstepstakenbytheCompanyforrecoveryofprincipalandinterestdoesnotarise.
iv. Inouropinionandaccordingtotheinformationgiventous,theCompanyhascompliedwiththeprovisionsofsection185and186of theAct,withrespect to the loansand investmentsmade.Thecompanyhasnotprovidedanyguaranteeorsecurityintermsofsection185and186oftheAct
v. Accordingtotheinformationandexplanationsgiventous,theCompanyhasnotacceptedanydepositfromthepublicduringtheyearintermsoftheprovisionofSection73to76oranyotherrelevantprovisionoftheActandtherulesframedtheirunder.Asinformedtous,noOrderhasbeenpassedbytheCompanyLawBoardorNationalCompanyLawTribunalorReserveBankofIndiaforthismatter.
vi. TheCentralGovernmenthasnotprescribedthemaintenanceofcostrecordsundersection148(1)oftheAct,inrespectoftheproductmanufacturedand/ortheservicesrenderedbytheCompany.
vii. Accordingtotheinformationandexplanationsgiventousinrespectofstatutorydues;
a. TheCompanyhasgenerallybeen regular indepositingundisputedstatutorydues includingprovidentfund,employees’state insurance, income-tax,sales tax,service tax,customsduty,exciseduty,valueaddedtax,cessandanyotherstatutorydueswiththeappropriateauthorities.TherewerenoundisputedamountpayableinrespectofProvidentfund,Employees’StateInsurance,Incometax,Salestax,Servicetax and any other material statutory dues in arrears as at March 31, 2018 for a period of more than six monthsfromthedatetheybecomepayable.
b. DetailsofSalestaxdueswhichhavenotbeendepositedasonMarch31,2018onaccountofdisputearegivenbelow:
Name of Statue Nature of dues Amount Period Forum where dispute is pending Appeal
JCCI Penalty 534523/- 1991-92 AppealSales tax Assessmentdue 647571/- 1996-97 Appeal
viii. AnamountofRs.80,873/-beingunpaiddividendaccountwhichisoutstandingsinceformorethan7yearsarerequiredtobetransferredtotheInvestorEducationandProtectionFundbytheCompany.
ix. Inouropinion,andaccordingtoinformationandexplanationgiventous,nomoneywasraisedbywayoftermloanorbywayofinitialpublicofferorfurtherpublicoffer(includingdebtinstruments)duringtheyear.
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
x. During thecourseofourexaminationof thebooksofaccountand recordsof theCompany,carriedout inaccordance with the generally accepted auditing practices in India, and according to the information andexplanationsgiventous,wehaveneithercomeacrossanyinstanceofmaterialfraudbytheCompanyorontheCompanybyitsofficersoremployees,noticedorreportedduringtheyear,norhavewebeeninformedofanysuchcasebytheManagement.
xi. Inouropinionandaccordingtotheinformationandexplanationsgivenbythemanagement,theCompanyhaspaid/providedmanagerialremunerationinaccordancewiththeprovisionsofsection197readwithScheduleVoftheAct
xii. Inouropinionandaccording to the informationandexplanationsgiven tous, theCompany isnotaNidhiCompany.Accordingly,paragraph3(xii)oftheorderisnotapplicabletotheCompany.
xiii. According to the information and explanation given to us, all the transactions with related parties are incompliancewiththeprovisionsofSections177and188oftheAct,whereapplicable.Thedetailsofrelatedparty transactionshavebeendisclosed in thefinancial statementsas requiredunderAccountingStandard(AS)18RelatedPartyDisclosuresspecifiedunderSection133oftheAct,readwithRule7oftheCompanies(Accounts)Rules,2014.
xiv. Accordingto the informationandexplanationsgiventousandbasedonourexaminationof therecordsofthe company, the companyhasnotmadeanypreferential allotment or privateplacementof fully or partlyconvertibledebenturesnorpreferentialallotmentofequitysharesandhencereportingunderclause(xiv)ofCARO2016isnotapplicabletotheCompany
xv. Inouropinionandaccordingtotheinformationandexplanationsgiventousandbasedonourexaminationof the records of the Company, the Company has not entered into any non cash transactions with directors or personsconnectedwithhimduringtheyear.Accordingly,paragraph3(xv)oftheorderisnotapplicabletotheCompany.
xvi. According to the information and explanations given to us, theCompany is not required to be registeredundersection45-IAoftheReserveBankofIndiaAct,1934.Accordingly,paragraph3(xvi)oftheorderisnotapplicabletotheCompany.
For B.N. Kedia & Co.Chartered Accountants
F.R.N. 001652N
(CA S.K. Kedia)Place: Mumbai PartnerDated: 21/08/2018 Membership No.: 052579
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
‘Annexure B’ to Independent Auditor’s Report(Referredtoinparagraph10(f)under‘ReportontheStandaloneFinancialStatementOtherLegalandRegulatoryRequirements’sectionofourreportofevendate)
Report on the internal financial controls with reference to the financial reporting under Clause (i) of Sub-section 3 of Section 143 of the Act.WehaveauditedtheinternalfinancialcontrolswithreferencetothefinancialreportingofM/sINANNAFASHIONANDTRENDSLIMITED(FormallyknownasM/s.FRONTLINEBUSINESSSOLUTIONSLIMITED)(‘theCompany”)asofMarch31,2018,inconjunctionwithourauditofthestandalonefinancialstatementsoftheCompanyfortheyearendedonthatdate.
Management’s Responsibility for Internal Financial Controls1. TheCompany’smanagementisresponsibleforestablishingandmaintaininginternalfinancialcontrolsbasedon
theinternalfinancialcontrolswithreferencetothefinancialreportingestablishedbytheCompanyconsideringtheessentialcomponentsofinternalcontrolstatedintheGuidanceNoteonAuditofInternalFinancialControlsOverFinancialReportingissuedbytheInstituteofCharteredAccountantsofIndia(ICAI).Theseresponsibilitiesincludethedesign,implementationandmaintenanceofadequateinternalfinancialcontrolsthatwereoperatingeffectively forensuring theorderlyandefficientconductof itsbusiness, includingadherence tocompany’spolicies,thesafeguardingofitsassets,thepreventionanddetectionoffraudsanderrors,theaccuracyandcompletenessoftheaccountingrecordsandthetimelypreparationofreliablefinancialinformation,asrequiredundertheAct.
Auditors’ Responsibility 2. OurresponsibilityistoexpressanopinionontheCompany’sinternalfinancialcontrolswithreferencetothe
financialreportingbasedonouraudit.WeconductedourauditinaccordancewiththeGuidanceNoteonAuditofInternalFinancialControlsOverFinancialReporting(the“GuidanceNote”)andtheStandardsonAuditingissuedbyICAIanddeemedtobeprescribedundersection143(10)oftheAct,totheextentapplicabletoanauditof internalfinancialcontrols,bothapplicable toanauditof internalfinancialcontrolsandboth issuedbytheICAI.ThoseStandardsandtheGuidanceNoterequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutinternalfinancialcontrolswithreferencetothefinancialreportingwasestablishedandmaintainedandifsuchcontrolsoperatedeffectivelyinallmaterialrespects.
3. Ourauditinvolvesperformingprocedurestoobtainauditevidenceabouttheadequacyoftheinternalfinancialcontrolswithreferencetothefinancialreportingandtheiroperatingeffectiveness.Ourauditofinternalfinancialcontrolswith reference to the financial reporting includedobtainingandunderstandingof internal financialcontrols with reference to the financial reporting, assessing the risk that amaterial weakness exists, andtestingandevaluatingthedesignandoperatingeffectivenessofinternalcontrolbasedontheassessedrisk.Theproceduresselecteddependontheauditor’sjudgement,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.
4. WebelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinionontheCompany’sinternalfinancialcontrolswithreferencetothefinancialreporting.
Meaning of internal financial controls with reference to the financial reporting5. Acompany’sinternalfinancialcontrolswithreferencetothefinancialreportingisaprocessdesignedtoprovide
reasonableassuranceregardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsfor external purposes in accordancewith generally accepted accounting principles. A company’s internalfinancial controls with reference to the financial reporting includes those policies and procedures that (1)pertaintothemaintenanceofrecordsthat,inreasonabledetail,accuratelyandfairlyreflectthetransactionsanddispositionoftheassetsofthecompany;(2)providereasonableassurancethattransactionsarerecordedasnecessarytopermitpreparationoffinancialstatementsinaccordancewithgenerallyacceptedaccountingprinciples, and that receipts and expenditures of the company are being made only in accordance with authorisationsofmanagementanddirectorsofthecompany;and(3)providereasonableassuranceregardingpreventionor timelydetectionofunauthorisedacquisition,use,ordispositionof thecompany’sassets thatcouldhaveamaterialeffectonthefinancialstatements.
Inherent Limitations of internal financial controls with reference to the financial reporting
6. Becauseoftheinherentlimitationsofinternalfinancialcontrolswithreferencetothefinancialreporting,includingthepossibilityofcollusionorimpropermanagementoverrideofcontrols,materialmisstatementsduetoerroror
53
25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
fraudmayoccurandnotbedetected.Also,projectionsofanyevaluationoftheinternalfinancialcontrolswithreferencetothefinancialreportingtofutureperiodsaresubjecttotheriskthattheinternalfinancialcontrolswithreferencetothefinancialreportingmaybecomeinadequatebecauseofchangesinconditions,orthatthedegreeofcompliancewiththepoliciesorproceduresmaydeteriorate.
Opinion7. Inouropinion,theCompanyhas,inallmaterialrespects,anadequateinternalfinancialcontrolswithreference
to the financial reportingand such internal financial controlswith reference to the financial reportingwereoperatingeffectivelyasatMarch31,2018,basedontheinternalfinancialcontrolswithreferencetothefinancialreporting criteria established by the Company considering the essential components of internal control stated intheGuidanceNoteonAuditofInternalFinancialControlsOverFinancialReportingissuedbytheInstituteofCharteredAccountantsofIndia.
For B.N. Kedia & Co.Chartered Accountants
F.R.N. 001652N
(CA S.K. Kedia)Place: Mumbai PartnerDated: 21/08/2018 Membership No.: 052579
54
25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
BALANCE SHEET AS AT 31st MARCH 2018Particulars Notes. No. As At
31st March 2018 As At
31st March 2017 As At
31st March 2016 ASSETSI. Non-current Assets(a) Property Plant and Equipment 3 554,223 732,200 929,560(b)CapitalWork-in-progress(c)InvestmentProperty 4 - - -(d)Goodwill 5 - - -(e)OtherIntangibleAssets 5 - - -(f)FinancialAssets 6(i)Investments 55,596,000 55,596,000 55,596,000(ii)TradeReceivable 4,042,756 3,984,864 3,984,864 (iii) Loans 51,333,016 51,618,578 59,398,818(iv)Otherstobespecified 63,514 63,514 63,514(g)DefferedTaxassets(net) 7 50,768 28,360 8,384(h)Othernon-currentassets 8 - 3,062,500 -Total non-current assets 111,640,277 115,086,016 119,981,140 II. Current Assets(a)Inventories 9 - - -(b)FinancialAssets(i)Investments 6a - - -(ii)TradeReceivable 6b 88,019,508 - 5,505,716(iii)Cashandcashequivalent 6d 405,397 1,282,718 14,771,901(iv)Bankbalanceotherthan(iii)above - - -(v)Loans 6c 21,941,978 27,858,978 17,060,424(iv)Otherstobespecified 11 - - -(c)CurrentTaxAssets(Net)(d) Other current assets 10 37,564 - 6,073Total current assets 110,404,447 29,141,696 37,344,114 Total Assets 222,044,724 144,227,713 157,325,253 EQUITY AND LIABILITIES Equity(a) Equity Share capital 12 106,620,390 106,620,390 106,620,390(b) Other Equity 10,951,530 12,025,285 25,040,588Total Equity 117,571,920 118,645,675 131,660,978 LIABILITIESI. Non-Current Liabilities(a) Financial Liabilities 13 (i) Borrowings 6,316,930 7,266,930 5,927,880 (ii) Trade payables 9,492,926 9,492,926 9,492,926(iii)OtherFinancialliabilities(otherthanthosespecifiedinitem(b)(b)Provisions 14 - - -(c)Employeebenefitobligations 15 - - -(d)DefferedTaxliabilities(Net) 16 - - -(e)Othernon-currentliabilitiesTotal non-current liabilities 133,381,776 135,405,531 147,081,784 II. Current Liabilities(a) Financial Liabilities (i) Borrowings 13a (ii) Trade payables 13c 88,509,816 845,361 2,441,459(iii)OtherFinancialliabilities(otherthanthosespecifiedinitem(c)(b) Other current liabilities 18 153,132 7,976,821 7,802,010 (c)Provisions 14 - - -(d)Employeebenefitobligations 15 - - -(e) Current Tax liabilities (Net) 17 - - -Total current liabilities 88,662,948 8,822,182 10,243,469 TOTAL EQUITY AND LIABILITIES 222,044,724 144,227,713 157,325,253 TheaccompanyingnotesareanintegralpartoffinancialstatementsAsperourReportofevendate
As per our Report of even dateFor B. N. Kedia & Co. For INANNA FASHIONS AND TRENDS LIMITEDChartered Accountants
(CA. S. K. Kedia) Natwar Surekha Manju Surekha Partner Managing Director Whole-time Director Membership No. : 052579 DIN: 1296522 DIN: 01362461 Place: MumbaiDated: 30/05/2018
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
PROFIT & LOSS STATEMENT FOR THE YEAR ENDED ON 31st MARCH, 2018Sr. No
Particulars Notes. No.
Figures as at 31st March 2018
Figures as at 31st March 2017
I Revenuefromoperations 19 84,113,806 19,044,201
II OtherIncome 20 177,575 2,345,703
III III. Total Revenue (I +II) 84,291,381 21,389,904
IV Expenses:CostofGoods/ServicesSold 21 83,875,550 -
EmployeeBenefitExpenses 22 - 25,318,884
Financial Costs 25 - -
DepreciationandAmortizationExpenses 23 177,978 197,360
Other Expenses 24 1,334,016 8,908,942
Total Expenses (IV) 85,387,544 34,425,186 V Profit/(loss)beforeexceptionalitemsandtax(III-IV) (1,096,163) (13,035,282)
VI ExceptionalItems - -
VII Profit/(loss)beforetax(V-VI) (1,096,163) (13,035,282)
VIII Tax expense: 26 (1) Current tax - -
(3) Deferred tax 22,408 19,976
IX Profit(Loss)fortheperiodfromcontinuingoperations(VII-VIII) (1,073,755) (13,015,306)
X Profit/(loss)fromdiscontinuedoperations -
XI Tax expense of discontinued operation - -
XII Profit/(loss)fromDiscontinuedoperations(aftertax)(X-XI) - -
XIII Profit/(loss)fortheperiod(IX+XII) (1,073,755) (13,015,306)
XIV Other Comprehensive Income A(i)Itemsthatwillnotbereclassifiedtoprofitorloss - -
(ii)Incometaxrelatingtoitemsthatwillnotbereclassifiedtoprofitorloss - -
B(i)Itemsthatwillbereclassifiedtoprofitorloss - -
(ii)Incometaxrelatingtoitemsthatwillbereclassifiedtoprofitorloss - -
XV TotalComprehensiveIncomefortheperiod(XIII+XIV)(Comprising (1,073,755) (13,015,306)
Profit(Loss)andOtherComprehensiveIncomefortheperiod)
XVI Earnings per equity share (for continuing operation): (1) Basic (0.05) (0.61)
(2) Diluted (0.05) (0.61)
XVII Earnings per equity share (for discontinued operation): (1) Basic - -
(2) Diluted - -
XVIII Earnings per equity share(for discontinued & continuing operations) (1) Basic (0.05) (0.61)
(2) Diluted (0.05) (0.61)
Theaccompanyingnotesareanintegralpartoffinancialstatements
As per our Report of even dateFor B. N. Kedia & Co. For INANNA FASHIONS AND TRENDS LIMITEDChartered Accountants
(CA. S. K. Kedia) Natwar Surekha Manju Surekha Partner Managing Director Whole-time Director Membership No. : 052579 DIN: 1296522 DIN: 01362461 Place: MumbaiDated: 30/05/2018
56
25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2018FOR THE YEAR
ENDED 31/03/2018FOR THE YEAR
ENDED 31/03/2017[1] Cash Flow From Operating Activities :NetProfit/(Loss)beforetax (1,096,163) (13,035,282)Adjustmentfor:Depreciation 177,978 197,360Finance Charges -LiabilityNoLongerRequiredInterest/Dividendreceived (177,575) (1,605,253)DeferredTaxAsset 22,408 19,976
22,811 (1,387,917)OperatingProfitbeforeWorkingCapitalChanges (1,073,352) (14,423,199)Adjustmentfor:Change in Sundry Debtors (88,077,400) 5,505,716ChangeinShorttermloanandAdvances 5,917,000 (10,798,554)ChangeinOtherCurrentAssets (37,564) 6,073ChangesinAdvances&Deposits 285,562 7,780,240Change in Trade Payables 87,664,455 (1,596,098)Changes in Other Current Liabilities (7,823,689) 174,811ChangeinDefferedTax (22,408) (19,976)
(2,094,044) 1,052,212 CashGeneratedfromOperations (3,167,396) (13,370,987)InterestPaid - -Direct Taxes paid -
- -NetCashFromOperatingActivities (3,167,396) (13,370,987)[2] Cash flow From Investing Activities:PurchaseofFixedAssets -PurchaseofInvestments 3,062,500 (3,062,500)SaleofInvestments/FixedAssetsInterest/DividendReceived 177,575 1,605,253NetCashusedinInvestingActivities 3,240,075 (1,457,247)[3] Cash Flow From Financing ActivitiesShareApplicationmoneypendingallotment -ProposedDividend(netoflastyearsexcessProv) - -Finance Charges -Loan Processing Fees -DividendTaxPaid - -Borrowings (Net of repayments) (950,000) 1,339,050NetCashFromFinancingActivities (950,000) 1,339,050NETINCREASE/(DECREASE)INCASHANDCASHEQUIVALENTS[A+B+C]
(877,321) (13,489,184)
CASHANDCASHEQUIVALENTSATTHEBEGINNINGOFTHEYEAR
1,282,717 14,771,901
CASHANDCASHEQUIVALENTSATTHE END OF THE YEAR 405,397 1,282,717
For and on behalf of the Board
Place :- Mumbai Natwar Sureka Manju Sureka Dated: 30/05/2018 Managing Director Whole-time Director
AUDITORS CERTIFICATEWehaveexamined theattachedCashFlowStatementof Inanna Fashion and Trends Limited (Formerly known as Frontline Business Solutions Limited)fortheyearended31stMarch,2018.ThestatementhasbeenpreparedbytheCompanyinaccordancewiththerequirementsoftheINDAS7issuedbyTheInstituteofCharteredAccountantsofIndiaandisbasedonandinagreementwithcorrespondingProfit&LossAccountandtheBalanceSheetoftheCompanycoveredbyourreportofevendatetothemembersoftheCompany.
As per our Report of even dateFor B. N. Kedia & Co. For INANNA FASHIONS AND TRENDS LIMITEDChartered Accountants
(CA. S. K. Kedia) Natwar Surekha Manju Surekha Partner Managing Director Whole-time Director Membership No. : 052579 DIN: 1296522 DIN: 01362461 Place: MumbaiDated: 30/05/2018
57
25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
STATEMENT OF CHANGE IN EQUITY FOR THE YEAR ENDED 31st MARCH, 2018A. Equity Share CapitalBalance as at 1st April 2017
Changes in the share capital during the year Balance as at 31st March 2018
106,620,390 - 106,620,390 Balanceasat1stApril2016 Changes in the share capital during the year Balance as at 31st March 2017106,620,390 - 106,620,390
B. Other EquityShare
application money
pend-ing allotment
Reserves and Surplus Debt instrument through other
comprehensive Income
Money received against share
warrants
TotalCapital
ReserveSecurity Premium Reserve
Retained Earnings
Balance as at 1st April 2017
- - 35,389,626 (23,364,342) - - 12,025,284
Changes in accounting policy or prior period errors
- - - - - - -
Restatedbalanceasat1stApril2017
- - 35,389,626 (23,364,342) - - 12,025,284
Total ComprehensiveIncomefortheyear
- - - - - - -
Dividends - - - - - - -Transfer to RetainedEarnings
- - - (1,073,755) - - (1,073,755)
Anyotherchange(tobespecified)
- - - - - - -
Balance as at 31 March 2018
- - 35,389,626 (24,438,097) - - 10,951,529
Share application
money pend-ing allotment
Reserves and Surplus Debt instrument through other
comprehensive Income
Money received against share
warrants
TotalCapital
ReserveSecurity Premium Reserve
Retained Earnings
Balance as at 1st April2016
- - 35,389,626 (10,349,038) - - 25,040,588
Changes in accounting policy or prior period errors
- - - - - - -
Restatedbalanceasat1stApril2016
- - 35,389,626 (10,349,038) - - 25,040,588
Total ComprehensiveIncomefortheyear
- - - - - - -
Dividends - - - - - - -Transfer to RetainedEarnings
- - - (13,015,305) - - (13,015,305)
Anyotherchange(tobespecified)
- - - - - - -
Balance as at 31 March 2017
- - 35,389,626 (23,364,342) - - 12,025,284
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
Notes Forming Part of the Financial Statements1. Company Information InannaFashionandTrendsLimited(FormerlyknownasFrontlineBusinessSolutionsLimited)(“theCompany)
is a public limited company incorporated in Indiawith its registered office inMumbai,Maharashtra, India.TheCompanyislistedontheBombayStockExchange(BSE).ThefinancialstatementasatMarch31,2018present thefinancialpositionof theCompany.Thefunctionalandpresentationcurrencyof theCompany isIndianRupeewhichisthecurrencyoftheprimaryeconomicenvironmentinwhichtheCompanyoperates.ThefinancialstatementfortheyearendedMarch31,2018wereapprovedbytheBoardofDirectorsandauthorizedforissueon29thMay2018.
2. Significant Accounting Policies: TheSignificantAccountingPoliciesappliedbytheCompanyinthepreparationofitsfinancialstatementare
listedbelow.Suchaccountingpolicieshavebeenappliedconsistently toall theperiodspresented in thesefinancialstatementsandinpreparingtheopeningIndASBalancesheetasatApril1,2016forthepurposeoftransitiontoIndAS,unlessotherwiseindicated.
a) Statement of compliance InaccordancewiththenotificationissuedbytheMinistryofCorporateAffairs,theCompanyhasadopted
IndASnotifiedundertheCompanies(IndianAccountingStandards“,witheffectfromApril1,2016.ThetransitionfromPreviousGAAPtoIndAS101”FirstTimeAdoptionofIndianAccountingStandards”,withApril 1,2016being the transitiondate. Inaccordancewith IndAS101 “FirstTimeadoptionof IndianAccountingStandard”, theCompanyhasmadepresentationoffinancialstatementsunderaccountingstandardsnotifiedundertheCompanies(AccountingStandards)Rules,2006(“PreviousGAAP)toIndASoftotalequityasatApril1,2016andMarch31,2017totalcomprehensiveIncomeandcashflowfortheyear ended March 31, 2017
b) Basis of Preperation TheseFinancialStatementshavebeenpreparedunderthehistoricalcostconventionwiththeexception
ofcertainassetsandliabilitiesthatarerequiredtobecarriedatfairvaluebyIndAS.Fairvalueisthepricethatwouldbereceivedtosellanassetorpaidtotransferaliabilityinanorderlytransactionbetweenmarketparticipantsatthemeasurementdate.
c) Use of Estimates Thepreparationoffinancialstatements,thecompanymakesmakejudgments,estimatesandassumptions
aboutthecarryingvaluesofassetsandliabilitiesthatarenotreadilyapparentfromothersources.Theestimates and the associated assumptions are based on historical experience and other factors that are consideredtoberelevant.Actualresultsmaydifferfromthisestimates.
Theestimatesandtheunderlinedassumptionsarereviewedonanongoingbasis.Revisionstoaccountingestimatesarerecognizedintheperiodinwhichtheestimateisrevisedandfutureperiodsaffected.
Significant judgements and estimates relating to the carrying values of assets and liabilities includeuseful livesofproperty,plantandequipmentand intangibleassets, impairmentofproperty,plantandequipmentandintangibleassetsandinvestments,provisionforemployeebenefitsandotherprovisions,recoverabilityofdeferredtaxassets,commitmentsandcontingencies.
d) Property, plant and equipment An item of property, plant and equipment is recognized as an asset, if it is probable that the future
economicbenefitsassociatedwiththeitemwillflowtothecompanyanditscostcanbemeasuredreliably.This recognition principle is applied to the costs incurred initially to acquire an item of property, plant and equipmentandalsotocostsincurredsubsequentlytoaddto,replacepartof,orserviceit.Allotherrepairandmaintenancecostsincludingregularservicingarerecognizedinthestatementofprofitandlossasincurred.
Property,plantandequipmentarestatedatcost,lessaccumulateddepreciationandimpairment.Costincludes all direct costs and expenditure incurred to bring to its working condition and location for its intendeduse.
Thegainorlossarisingondisposalofanassetisdeterminedasthedifferencebetweenthesaleproceedsandthecarryingvalueofassetandisrecognizedinthestatementofprofitandloss.
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
e) Intangible Assets Intangibleassetsarestatedattheircostofacquisition, lessaccumulatedamortizationandimpairment
losses.Anintangibleassetisrecognized,whereitisprobablethatfutureeconomicbenefitsattributabletotheassetwillflowtotheenterpriseandwhereitscostcanbereliablymeasured.ThedepreciableamountofIntangibleAssetsisallocatedoverthebestestimateofitsuse-fulllifeonstraightlinebasis.
f) Depreciation Depreciationonfixedassets isprovidedproratabaseonstraight linemethodat theratesand in the
mannerprescribedinScheduleIItotheCompaniesAct,2013.Intangibleassetsareamortizedovertheirestimatedusefullifeof5years.
g) Impairment of Assets The management assesses for any impairment of assets or cash generating units, in indicators, external
orinternal,suggestspossibilitiesforreductioninnetrealizablevalueofassetsorvalueinuseofcashgeneratingunitsbelowitscarryingcosts.Impairments,ifany,willberecognizedintheProfitandLossAccounts.
h) Cash and cash equivalents Cashandcashequivalent in thebalancesheetcomprisecashatbanksandonhandandshort-term
depositswithanoriginalmaturityof threemonthsor less,whicharesubject toan insignificant riskofchangesinvalue.
Forthepurposeofthestatementofcashflows,cashandcashequivalentsconsistofcashandshort-termdeposits,asdefinedabove.
i) Financial Instruments Financial assets and financial liabilities are recognized when the company becomes a party to the
contractualprovisionsoftheinstrument.Financialassetsandliabilitiesareinitiallymeasuredatfairvalue.Thetransactioncostsdirectlyattributabletofinancialassetandfinancial liabilitiesatfairvaluethroughprofitandlossareimmediatelyrecognizedinthestatementofprofitandloss.
j) Revenue Recognition Therevenueisrecognizedtotheextentitisprobablethattheeconomicbenefitswillflowtothecompanyand
therevenuereliablymeasured,regardlessofwhenthepaymentisbeingmade.Revenueismeasuredatthefairvalueoftheconsiderationreceivedorreceivablenetofdiscounts,takingintoaccountcontractuallydefinedtermsandexcludingtaxesordutiescollectedonbehalfofthegovernment.
Sale of Goods Revenuefromsaleofgoodsisrecognizedwhenthesignificantrisksandrewardsofownershiphavebeen
transferredtothebuyer.Norevenueisrecognizediftherearesignificantuncertaintyregardingrecoveryoftheamountdue,associatedcostorthepossiblereturnofthegoods.
Interest Income Interestincomeisrecognizedonatimeproportionbasis,byreferencetotheprincipaloutstandingandthe
effectiveinterestrateapplicable.
k) Provisions, Contingent Liabilities and Contingent Assets Aprovisionismadebasedonareliableestimatewhenitisprobablethatanoutflowofresourcesembodying
economicbenefitwillberequiredtosettleanobligation.
Contingent Liabilities in respect of showcause notice received are considered only when they areconvertedintodemands.ContingentLiabilitiesundervariousfiscallawsincludethoseinrespectofwhichtheCompany/Departmentisinappeal.ContingentLiabilitiesaredisclosedbywayofnotestoaccounts.
Contingentassetsarenotrecognizedordisclosedinthefinancialstatement.
Notes Forming Part of the Financial Statements
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
l) Taxation: Current income tax Currentincometaxassetsandliabilitiesaremeasuredattheamountexpectedtoberecoveredfromor
paidtothetaxationauthorities.Thetaxratesandtaxlawsusedtocomputetheamountarethosethatareenactedorsubstantivelyenacted,atthereportingdate.
CurrenttaxitemsarerecognisedincorrelationtotheunderlyingtransactioneitherinOCIordirectlyinequity.Managementperiodicallyevaluatespositionstakeninthetaxreturnswithrespecttosituationsinwhichapplicabletaxregulationsaresubjecttointerpretationandestablishesprovisionswhereappropriate.
Deferred tax Deferred tax isprovidedusing the liabilitymethodontemporarydifferencesbetweenthe taxbasesof
assetsand liabilitiesand theircarryingamounts forfinancial reportingpurposesat the reportingdate.Deferredtaxliabilitiesarerecognisedforalltaxabletemporarydifferences,exceptwhenitisprobablethatthetemporarydifferenceswillnotreverseintheforeseeablefuture.
Deferredtaxassetsarerecognisedforalldeductibletemporarydifferences,thecarryforwardofunusedtaxcreditsandanyunusedtaxlosses.Deferredtaxassetsarerecognisedtotheextentthatitisprobablethat taxable profitwill beavailable againstwhich thedeductible temporary differences, and the carryforwardofunusedtaxcreditsandunusedtaxlossescanbeutilized.
MinimumAlternateTax(MAT)paidinaccordancewiththetaxlaws,whichgivesfutureeconomicbenefitsintheformofadjustmenttofuture incometaxliability, isconsideredasanasset if there isconvincingevidencethattheCompanywillpaynormalincometax.Accordingly,MATisrecognisedasanassetintheBalanceSheetwhenitisprobablethatfutureeconomicbenefitassociatedwithitwillflowtotheCompany.
m) Earnings Per Share: TheCompanypresentsbasicanddilutedearningspershare(“EPS”)data for itsequityshares.Basic
EPSiscalculatedbydividingtheprofitandlossattributabletoequityshareholdersoftheCompanybytheweightedaveragenumberofequitysharesoutstandingduringtheperiod.DilutedEPSisdeterminedbyadjustingtheprofitandlossattributabletoequityshareholdersandtheweightedaveragenumberofequitysharesoutstandingfortheeffectsofalldilutivepotentialequityshares.
Note : 3 Property, Plant and Equipment
Computer Furniture & Fixture
Office Equipment Total
Cost/Deemed cost at 1st April 2016 404,263 973,806 1,109,224 2,487,293Additions - - - -Disposals - - - -Closing gross carrying amount as at 31st March 2017 404,263 973,806 1,109,224 2,487,293Acuumulated Depreciations as at 1st April 2016 220,352 343,514 993,868 1,557,733 Depreciation charged during the year 57,967 109,493 29,901 197,360Disposal - - - -Closing Accumulated depreciation as at 31st March 2017 278,318 453,006 1,023,768 1,755,093Openinggrosscarryingamountasat1stApril2017 404,263 973,806 1,109,224 2,487,293Additions - - - -Disposals - - - -Transfers - - - -Closing gross carrying amount as at 31st March 2018 404,263 973,806 1,109,224 2,487,293Openingaccumulateddepreciationasat1stApril2018 278,318 453,006 1,023,768 1,755,093Depreciation during the year 53,488 109,493 14,997 177,978Disposals - - - -Closing accumulated depreciation as at 31st March 2018 331,806 562,499 1,038,765 1,933,070Net carrying amount as at 1st April 2016 183,911 630,292 115,356 929,560Net carrying amount as at 31st March 2017 125,945 520,800 85,456 732,200 Net carrying amount as at 31st March 2018 72,457 411,307 70,459 554,223
Notes Forming Part of the Financial Statements
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
Particulars As at 31st March, 2018
As at 31st March, 2017
Note : 4 Investment PropertiesGrossscarryingamountOpening gross carrying amount / Deemed cost
- -
Additions - -Disposals - -Closing gross carrying amount - -AccumulateddepeciationOpening accumulated depreciation - -Depreciation charge - -Disposals - -Closing accumulated depreciation - -Net carrying amount - -
Note : 5 Intangible assetsParticulars Goodwill Other Intangible
assets Total
Cost/Deemedcostasat1stApril2016 - - -Additions - - -Disposals - - -Closing gross carrying amount as at 31st March,2017
- - -
Accumulatedamortisationasat1stApril2016
- - -
Amortisationchargefortheyear - - -Disposals - - -Closing accumulated depreciation as at 31st March 2017
- - -
Grosscarryingamountasat1stApril2017Opening gross carrying amount - - -Additions-Internaldevelopment - - -Disposals - - -Closing gross carrying amount as at 31st March 2018
- - -
Accumulatedamortisationasat1stApril2017Opening accumulated depreciation - - -Amortisationchargefortheyear - - -Disposal - - -Closing accumulated amortisation as at 31st March 2018
- - -
Closingnetcarryingamountasat1stApril2016
- - -
Closing net carrying amount as at 31st March 2017
- - -
Closing net carrying amount as at 31st March 2018
- - -
Notes Forming Part of the Financial Statements
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
Particulars As at 31st March,2018
As at 31st March,2017
As at 1st April,2016
Note : 6 Financial assetsEquityInvestmentsatFVOCIUnquoted-TechnoPointMerchantileCo.PvtLtd 4,15,00,000 4,15,00,000 4,15,00,000-440500RadhaMadhavResearch&TradePvtLtd
1,40,96,000 1,40,96,000 1,40,96,000
Total (equity instruments) 5,55,96,000 5,55,96,000 5,55,96,000Total Non-current Investments 5,55,96,000 5,55,96,000 5,55,96,000
Note : 6(a) Current investmentsInvestmentinequityInstrumentQuoted - - -EquityInvestmntsatFVOCIUnquoted - - -Total (equity instruments) - - - Total current Investments - - -
Note : 6(b) Trade receivablesTradereceivables 9,20,62,264 39,84,864 94,90,580Receivablefromrelatedparties - - -Less:Allowancefordoubtfuldebts - - -Totalreceivables 9,20,62,264 39,84,864 94,90,580Current position 8,80,19,508 - 55,05,716Non-CurerentPosition 40,42,756 39,84,864 39,84,864Break-upofsecuritydetailsSecured, considered good - - -Unsecured, considered good 9,20,62,264 39,84,864 94,90,580Doubtful - - -Total 9,20,62,264 39,84,864 94,90,580 Allowancefordoubtfuldebts - - -Total trade receivables 9,20,62,264 39,84,864 94,90,580
Note: 6 (c ) LoansNon-currentMATCreditentitlement 4,47,743 4,47,743 4,47,743Security Deposit 1,32,200 1,41,200 3,56,200LoantoInterCo. 91,23,713 79,47,063 54,36,659Other Loans 4,16,29,360 4,17,29,360 4,17,29,360Taxdeductedatsource(netofprovisions) - 13,53,212 1,14,28,856Totalnon-currentloansandadvances 5,13,33,016 5,16,18,578 5,93,98,818CurrentAdvancestosuppliers 2,19,41,978 2,78,58,978 1,70,10,424Advancestostaff - - 50,000 Totalcurrentloansandadvances 2,19,41,978 2,78,58,978 1,70,60,424Total in ` 7,32,74,994 7,94,77,556 7,64,59,242
Notes Forming Part of the Financial Statements
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
Particulars As at 31st March,2018
As at 31st March,2017
As at 1st April,2016
OtherLoanincludesshareapplicationmoneypendingallotmentinthefollowingcompanies:-SainathHerbalCareMarketingPrivateLimited
3,20,00,000 3,20,00,000 3,20,00,000
SwastikLegalConsultantsPrivateLimited 39,00,000 40,00,000 40,00,000
LoantoIntercompanyincludesasumofRs.91,23,713/-(F.Y.2016-17-79,47,063/-&F.Y.2015-16-54,36,659/-)o/sfromacompanyinwhichthedirectorisinterested.
Note: 6 (d) Cash and cash equivalentsBalance with banks-incurrentaccounts 2,16,662.19 7,68,983 86,35,171(OfwhichRs.80,873/-(P.Y.80873/-)areearmarkedforpaymentofunpaiddividend)-inEEFCaccounts - - -Deposits with maturity of less than three months
- 3,70,000 3,50,000
Cash on Hand 1,88,735.00 1,43,735 57,86,730Total cash and cash equivalents 4,05,397 12,82,718 1,47,71,901
Note : 6 (e) Other financial assetsNationalSavingCertificate 63,514 63,514 63,514Total other financial assets 63,514 63,514 63,514
Note : 7 Deferred tax assets (net)Property, plant and equipment and investmentproperty
50,768 28,360 8,384
Others - - -Totaldefferedtaxassets 50,768 28,360 8,384Set-offofdefferedtaxassetspursuanttoset-offprovisions
- - -
Net deferred tax assets 50,768 28,360 8,384
Note : 8 Other non- current assetsBank FD with maturity more than 12 months
- 30,62,500 -
Total other non-current assets - 30,62,500 -
Note : 9 InventoriesRawMaterials - - -Finished goods - - -Traded goods - - -Total inventories - - -
Notes Forming Part of the Financial Statements
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
Particulars As at 31st March,2018
As at 31st March,2017
As at 1st April,2016
Note : 10 Other current assetsIncomeReceivable - - 6,073IGSTreceivable 36,764.00 - -Professional Tax refund 800.00 - -Total other current assets 37,564 - 6,073
Note : 11 Assets classified as held for sale- - -
Total assets classified as held for sale - - -
Note : 12 Equity share capital and other equityNote : 12 (a) Equity share capitalAuthorisedcapital Number of shares AmountEquitysharesofRs.5/-eachAsat1April2016 2,50,10,000 12,50,50,000 Increaseduringtheyear - -Asat31March2017 2,50,10,000 12,50,50,000 Increaseduringtheyear - -Asat31March2018 2,50,10,000 12,50,50,000
Movementinequitysharecapital Number of shares AmountEquitysharesofRs.5/-eachAsat1April2016 2,13,24,078 10,66,20,390Exerciseofoptions-proceedsreceived - -Asat31March2017 2,13,24,078 10,66,20,390Exerciseofoptions-proceedsreceived - -Rightissue - -Asat31March2018 2,13,24,078 10,66,20,390
Thecompanyhasalloted6005000equitysharesasbonusintheratioof1:1intheyear2009bycapitalisationofsecuritypremiumandthereafterinpursuancetotheorderofBombayHighCourtdated25/06/2010hasreducedthesharecapitalfromRs12.01Croredividedinto120100000equitysharesofRs10eachtoRs1.201Croredividedinto1201000equitysharesofRs10eachwithoutpaymentofcanceledvalueofthesaidsharestotheshareholdersofthecompany.Thecompanyhasalloted800000equitysharesofRs10eachatapremiumofRs10inexerciseofrightofthewarrantholderintheyear2013andthereafterspilttedthesharestofacevalueofRs5eachbyissuing10662039equity shares to the existing shareholders
Terms/ rights attached to equity shares1.ThecompanyhasonlyoneclassofequityshareshavingparvalueofRs.5(P.Y.Rs.5/-)persharewhichrank
pari-passuinallrespectsincludingvotingrightsandentitlementtodividend2.Intheeventofliquidation,eachsharecarryequalrightsandwillbeentitledtoreceiveequalamountpershare
outoftheremaingamountavailablewiththeCompanyaftermakingpreferntialpayments.
Notes Forming Part of the Financial Statements
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Particulars As at 31st March,2018
As at 31st March,2017
As at 1st April,2016
Shares of the company held by holding/ultimate holding companyNotApplicable - - -
Note : 12 (b) Reserve and SurplusSecuritiespremiumreserve 3,53,89,626 3,53,89,626 3,53,89,626Retainedearnings (2,44,38,097) (2,33,64,342) (1,03,49,038)Total in ` 1,09,51,530 1,20,25,285 2,50,40,588
Note : 12 (b) (i) Securities premium reserveParticulars As at 31st
March,2018 As at 31st March,2017
Opening Balance 3,53,89,626 3,53,89,626Rightsissue - -Transaction cost arising on share issue, net of taxes
- -
Closing balance 3,53,89,626 3,53,89,626
Note : 12 (b) (ii) Retained EarningsOpening balance (2,33,64,342) (1,03,49,038)Netprofitfortheperiod (10,73,755) (1,30,15,306)ItemsofotherComprehensiveincomerecognized directly in retained earningsDividends - -Closing balance (2,44,38,097) (2,33,64,342)
Particulars As at 31st March,2018
As at 31st March,2017
As at 1st April,2016
Note 13: Financial LiabilitiesNote : 13 (a) Non-current borrowingsSecured - - -Un-secured 63,16,930 72,66,930 59,27,880Total non-current borrowings 63,16,930 72,66,930 59,27,880
Note : 13 (a) Current borrowingsLoan repayable on demandSecured - - --FromBanks - - --BankoverdraftUn-secured-FromRelatedParties - - --Loanfromassociates - - -Total current borrowings - - -
Notes Forming Part of the Financial Statements
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
Particulars As at 31st March,2018
As at 31st March,2017
As at 1st April,2016
Note : 13 (b) Other financial LiabilitiesNon-current - - -DerivativesnotdesignatedashedgesPrincipal swap - - -Others - - -Contingent consideration - - -Total other non-current financial liabilities
- - -
CurrentCurrent maturities of long term debt - - -Currentmaturitiesoffinanceleaseobligations
- - -
Interestaccrued - - -Capital creditors - - -DerivativesdesignatedashedgesForeign exchange forward contracts - - -DerivativesnotdesignatedashedgesPrincipal swap - - -Total other current financial liabilities - - -
Note : 13 (c ) Trade payableTrade payable 9,80,02,742 1,03,38,287 1,19,34,385Trade payable to related parties - - -Total Trade payable 9,80,02,742 1,03,38,287 1,19,34,385 Non-current 94,92,926 94,92,926 94,92,926Current 8,85,09,816 8,45,361 24,41,459
Note : 14 ProvisionsCurrent - - -Non-current - - -Total - - -
Note : 15 Employee benefit obligationsCurrent - - -Non-current - - -Total employee benefit obligation - - -
Note : 16 Deferred tax liabilities Property, plant and equipment and investmentproperty
- - -
Others - - -Total deffered tax liabilitiesSet-offofdefferedtaxliabilitiespursuanttoset-offprovisions
- - -
Netdefferedtaxliabilities - - -
Notes Forming Part of the Financial Statements
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
Particulars As at 31st March,2018
As at 31st March,2017
As at 1st April,2016
Note : 17 Current tax liabilitiesOpening balance - - -Add:currenttaxpayablefortheyear - - -Less:Taxes paid - - -Closing balance - - -
Note 18: Other current liabilitiesCreditor against capital asset - - 7,00,000 Statutory tax payables 1,53,132 79,76,821 71,02,010 Total other current liabilities 1,53,132 79,76,821 78,02,010
As at 31st March,2018
As at 31st March,2017
Note 19: Revenue From operationsSale of products 8,41,13,806 -saleofservices - 1,90,44,201otheroperatingrevenue - -Total revenue from continuing operations 8,41,13,806 1,90,44,201
Note 20: Other income and other gains/(loses)(a) other incomeInterestincome 24,895 16,05,253OtherIncome 1,52,680 7,40,450Total other income 1,77,575 23,45,703(b) other gains/(loses)Net gain on disposal of property,plant and equipment(excluding property, plant and equipment sold as part of the discontinued operation)
- -
Netgainonsaleofinvestments - -Changesinfairvalueofcontingentconsideration - -Total other gain losses - -
Note 21: Cost of Goods/Services SoldStock at the begning of the year - -Add:PurchasesofGoods/Services 8,38,75,550 -Stock at the closing of the year - -CostofGoods/ServicesSold 8,38,75,550 -
Note 22: Emplyee benefit expenseSalaries, wages and bonus - 2,25,97,219Contributiontoprovidentfund - 27,21,665Total employee benefit expense - 2,53,18,884
Notes Forming Part of the Financial Statements
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
Note 23: Depreciation and amortization expense Depreciation of property, plant and equipment 1,77,978 1,97,360Depreciationoninvestmentproperties - -Amortisationofintangibleassets - -Total depreciation and amortisation expense 1,77,978 1,97,360
Note 24: Other expensesAuditor'sRemuneration 3,02,500 75,000 Electricity Charges - 1,45,770InternetCharges - 2,480Legal&ProfessionalFee 2,55,260 10,08,315 Listing&ROCFees 5,49,795 3,81,149OfficeExpenses 2,496 8,910RentExpenses - 3,85,000 Telephone&MobileExpenses 30,490 1,25,074TravellingExpenses 2,700 52,700 AdvertisementExpenses 11,500 11,000 Bank Charges 1,133 32,500 WebsiteCharges 3,560 17,250 Registrar&TransferFees 85,663 94,133Misc.Expenses 30,190 13,947Profession Tax 3,500 2,500 SundryBalancesWrittenOff - 30,377 Servicetax/GST 55,229 64,92,104Sales Tax Paid - 30,733 Total 13,34,016 89,08,942
Note : 25 Finance costsInterestandfinancechargesTotal - -
Note 26: Income tax expenses(a)IncometaxexpensesCurrent Tax - -Currenttaxonprofitsfortheyear - -Adjustmentforcurrenttaxofpriorperiod - -Total - -DefferedtaxDecrease(increase)indefferedtaxassets 22,408 19,976(Decrease)increaseindefferedtaxliabilities - -Totaldefferedtaxexpenses/(benefit) 22,408 19,976Incometaxexpensesisattributableto:Profitfromcontinuingoperations - -Profitfromdiscontinuedoperations - -
Notes Forming Part of the Financial Statements As at 31st March,2018
As at 31st March,2017
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
27. CONTINGENT LIABILITIES TheCompanyhasContingentLiabilitiesinrespectofJCCIPenaltyofRs.5,34,523/-andDisputedSalesTax
Liability(Bangalore)ofRs.6,47,571/-.
28. Balance Appearing in various accounts under the head Unsecured Loans, Sundry Debtors, Loans andAdvances, Deposits and Sundry Creditors are subject to confirmation and reconciliation’s. Consequentialadjustmentthereofarisingifany,willbemadeintheyear,theconfirmationandreconciliationsarereceived.
29. Intheopinionofthemanagement,theCurrentAssets,LoansandAdvances,depositareexpectedtorealizeatthevaluesstatedintheBalanceSheetandadequateprovisionshavebeenmadeintheaccountsforallknownliabilities.
30. Noamountsareoutstanding toMicro,SmallandMediumEnterprisesDevelopmentAct,2006 for theyearended on 31stMarch2018.
31. SEGMENT REPORTING Till thefinancialyear2016-17theCompanywasengaged inonlyonebusinesssegmentofHRSolutions,
However,duringtheyear2017-18ithaschangeditslineofoperationandisnowengagedinanothersegmenti.e.ofTradingingoods.Sinceincurrentyearaswellinpreviousyear,itoperatesinonlyonesegment,thereisnothingtoreportunder“SegmentReporting”intermofIndAS108.
32. RELATED PARTY DISCLOSUREa. List of Related Parties HoldingCompany - None
SubsidiaryCompany - None
b. Key Management Personnel (KMP) NatwarSureka - ManagingDirector
ManjuSureka - Director
c. Enterprise over which KMP is having significant control ApogeeBusinessSolutionsPvt.Ltd.
(FormerlyKnownasFrontlineBhoomiVistarPrivateLimited)
Transactions with related party during the year
Particulars Name Received Repaid
Short Term Loan Natwar Sureka - 9,50,000
Note : 1. RelatedpartyrelationshipisasidentifiedbytheCompanyandrelieduponbytheAuditors.
2. No amounts in respect of related parties have beenwritten off/written back during the year, nor has anyprovisionbeenmadefordoubtfuldebts/receivables.
33. EARNING PER SHARE
Particulars 2017-18 2016-17 2015-16
NetProfit/(Loss)afterTax (10,73,755) (1,30,15,305) (29,67,090)
WeightedNo.ofordinarysharesforbasicEPS 21324078 21324078 21324078
Nominal Value of Ordinary Shares 5 5 5
EarningspershareinRs.(Basic&Diluted) (0.05) (0.61) (0.14)
Notes Forming Part of the Financial Statements
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
34. AUDITOR’S REMUNERATION
Particulars 2017-18 2016-17 2015-16P.C. BARADIYA & CO.-AuditFees - 75,000 75,000-ForCertificationMatters 52,500 - -
TOTAL 52,500 75,000 75,000B.N. KEDIA & CO.-AuditFees 1,50,000 - --ForCertificationMatters 30,000 - --ForGST/ServiceTaxAudit 70,000 - -
TOTAL 2,50,000 - -
35. INCOME TAX EXPENSES ThemajorcomponentsofIncomeTaxexpensesfortheyearended31st March 2018 are as below:
StatementofProfit&LossAccountfortheyearended 31st March 2018 31st March 2017CurrentTaxonProfitfortheyear - -Charge/(Credit) in respect of current tax for earlier years - -Total Current Tax - -Deferred TaxOriginationandreversaloftemporarydifferences 22,408 19,976Charge/(Credit) in respect of deferred tax for earlier years 28,360 8,384Total Deferred Tax 50,768 28,360
36. ADOPTION OF INDIAN ACCOUNTING STANDARD (Ind AS)A. Mandatory exceptions to retrospective application TheCompanyhasappliedthefollowingexceptionstotheretrospectiveapplicationofIndASasmandatorily
requiredunderIndAS101“FirstTimeAdoptionofIndianAccountingStandards”(i) Estimates OnassessmentofestimatesmadeunderthePreviousGAAPfinancialstatements,theCompany
has concluded that there is nonecessity to revise suchestimatesunder IndAS, as there is noobjectiveevidenceofanerrorinthoseestimates
(ii) Classification and measurement of financial assets Theclassificationoffinancialassetstobemeasuredatamortisedcostorfairvaluethroughother
comprehensiveincomeismadeonthebasisoffactsandcircumstancesthatexistedonthedateoftransitiontoIndAS.
B. Optional exemptions from retrospective application IndAS101 “First timeAdoptionof IndianAccountingStandards”permitsCompaniesadopting IndAS
for thefirst timetotakecertainexemptionsfromthefull retrospectiveapplicationof IndASduringthetransition.TheCompanyhasaccordinglyontransitiontoIndASavailedthefollowingkeyexemptions:(i) Fair value as deemed cost for items of property, plant and equipment TheCompanyhaselectedtotreatfairvalueasdeemedcostforcertainitemsofitsproperty,plant
andequipment.(ii) Fair value as deemed cost for investments in subsidiaries, associates and joint ventures TheCompanydoesnothaveanysubsidiaries,associatesandjointventurescompany.
Notes Forming Part of the Financial Statements
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25th ANNUAL REPORT 2017-18INANNA FASHION AND TRENDS LIMITED
(iii) Designation of previously recognized financial instruments UnderIndAS109“FinancialInstruments”,at initialrecognitionofafinancialasset,anentitymay
makeanirrevocableelectiontopresentsubsequentchangesinfairvalueofaninvestmentinequityinstrumentinothercomprehensiveincome.
IndAS101“FirsttimeAdoptionofIndianAccountingStandards”allowssuchdesignationofpreviouslyrecognizedfinancialassetsas“fairvaluethroughothercomprehensiveincome”onthebasisoffactsandcircumstancesthatexistedatthedateoftransitiontoIndAS.
Accordingly,theCompanyhasdesignateditsinvestmentsinequityinstrumentsatfairvaluethroughothercomprehensive incomeon thebasisof factsandcircumstances thatexistedat thedateoftransitiontoIndAS.
37. PreviousYear’sfigureshavebeenregroupedandrearrangewherevernecessary.
For B. N. Kedia & Co.Chartered Accountants For Inanna Fashion and Trends LimitedFRN: 001652N
(CA S.K.Kedia) Natwar Sureka Manju SurekaPartner Managing Director Whole Time DirectorMembership No.: 052579
Place: MumbaiDate: 30/05/2018
Notes Forming Part of the Financial Statements
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Form No. MGT-11PROXY FORM
[Pursuant to section 105(6) of the Companies Act, 2013 and Rule 19(3) of the Companies (Management and Administration) Rules, 2014]
25th Annual General MeetingName of the Member(s)RegisteredAddressE-mailId FolioNo/ClientID DPID
I/we,beingthemember(s)ofsharesoftheabovenamedcompany,herebyappoint:Name: E-mailIdAddress:Signature , or failing him
Name: E-mailIdAddress:Signature , or failing himName: E-mailIdAddress:Signature , or failing him
Asmy/ourProxytoattendandvote(onapoll)forme/usandonmy/ourbehalfatthe25thAnnualGeneralMeetingoftheCompanytobeheldonFriday,28thSeptember,2018at11.00amatFMBanquet,MiniHall,8/B,UdyogNagar,KamathClubLane,OffS.V.Road,GoregaonWest,Mumbai400062andatanyadjournmentthereofinrespectofsuchresolutionsasareindicated below:
ResolutionNo. Resolutions VoteOrdinary Business For Against Abstain1. ConsiderandadopttheAuditedFinancialStatementsfortheyear
ended31stMarch,2018togetherwiththeReportsoftheBoardofDirectorsandAuditorsthereon
Special Business2. AppointmentofMr.RishabhSharma(DIN:08051566)asaNon
ExecutiveIndependentDirector3. AppointmentofMs.PurnimaParashar(DIN:07675850)asaNon
ExecutiveIndependentDirector4. AppointmentofMrs.GitaDeviAgarwal.(DIN:08126967)asaNon
ExecutiveIndependentDirector5. AppointmentofMr.RahulSaraf(DIN:01494992)asWhole-time
DirectoroftheCompany.6. IncreaseofAuthorisedShareCapital7. ChangeinmainobjectoftheMemorandumofAssociationofthe
company.8. AmendmentstoclauseIIIBandclauseIIICoftheMemorandumof
Association9. Change of name of the company10. ReclassificationofPromotersandToNotifytheChangeinPromotors&
Key Managerial Persons of the Company11. RatificationandApprovalofUtilisationofproceedsreceivedfromissue
of equity shares of the Company on Preferential Basis
Signed this ___________day of ________2018
SignatureofProxyHolder:………………SignatureofMember(s):……….…SignatureofShareholderacrosstherevenuestamp
Note:
1. ThisformofproxyinordertobeeffectiveshouldbedulycompletedanddepositedatRegisteredOffice,notlessthan48hoursbeforethecommencementoftheAnnualGeneralMeeting.
2. Theproxyneednotbeamemberofthecompany
AffixRs.1/-
RevenueStamp
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Inanna Fashion and Trends Limited (Formerly known as Frontline Business Solutions Limited)
CIN:L17200MH1994PLC076018RegisteredOffice:103,HubtownSolaris,NSPhadkeMargAndheri(East),Mumbai400069
ATTENDANCE SLIP
(To be presented at the entrance)
FolioNo.:________________DPIDNo.:_______________ClientI.D.No.:_________________
No.ofsharesheld:____________________
I/Wehereby recordmy/ourpresenceat theTwenty-FifthAnnualGeneralMeetingof theCompany onFriday,September28,2018at11.00amatFMBanquet,MiniHall,8/B,UdyogNagar,KamathClubLane,OffS.V.Road,GoregaonWest,Mumbai400062
Name of the Member: ____________________________________ Signature _____________
Name of the Proxy holder: _________________________________ Signature _____________
NOTE:Member/jointmember/proxiesarerequestedtobringthisslipwiththemandhanditoverattheentrance.Duplicateslipswillnotbeissuedattheentranceofthevenue.
-------------------------------------------------------------------------------------------------------------------------------------------
EVSN (Electronic Voting Event Number
USER ID PASSWORD/PIN
180906024
Note: E-votingperiod:25thSeptember,2018at9.00a.m.ISTandendson27thSeptember,2018at05.00p.m.IST. Ifyouhaveanyqueryregardinge-votingPassword/PIN,[email protected]
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Route Map for the Annual General Meeting Venue
Venue : FMBanquet,MiniHall,8/B,UdyogNagar,KamathClubLane,OffS.V.Road,GoregaonWest,Mumbai400062
Day and Date : Friday, 28th September, 2018
Time: 11.00AM
FM Banquet
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Al Falah Education Trust
Goregaon Mulund link Rd
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The Empire Banquet
If undelivered, please return to :
Inanna Fashion and Trends Limited 103, Hubtown Solaris, N S PhadkeMarg Andheri(East),Mumbai400069
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