INDEPENDENT AUDITORS REPORT
To
The Members of
Future Retail Limited
(Formerly known as Pantaloons Retail (India) Limited )
Report on the Financial Statements
We have audited the accompanying financial statements of FUTURE RETAIL LIMITED
(Formerly known as Pantaloons Retail (India) Limited) ("the Company"), which
comprise the Balance Sheet as at March 31, 2014, the Statement of Profit and Loss and the
Cash Flow Statement for the period then ended, and a summary of significant accounting
policies and other explanatory information.
Managements Responsibility for the Financial Statements
Management is responsible for the preparation of these financial statements that give a
true and fair view of the financial position, financial performance and cash flows of the
Company in accordance with the Accounting Standards referred to in sub-section (3C) of
section 211 of the Companies Act, 1956 ("the Act") read with the General
Circular 15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs in respect
of Section 133 of the Companies Act, 2013. This responsibility includes the design,
implementation and maintenance of internal control relevant to the preparation and
presentation of the financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditors Responsibility
Our responsibility is to express an opinion on these financial statements based on our
audit. We conducted our audit in accordance with the Standards on Auditing issued by the
institute of Chartered Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditors
judgement, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. in making those risk assessments, the auditor
considers internal control relevant to the Companys preparation and fair presentation of
the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the Companys internal control. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the explanations
given to us, the financial statements give the information required by the Act in the
manner so required and give a true and fair view in conformity with the accounting
principles generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the Company as at March
31, 2014;
b) in the case of the Statement of Profit and Loss, of the profit for the period ended
on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the period ended on
that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order,2003 ("the Order"),
as amended, issued by the Central Government of India in terms of sub-section (4A) of
Section 227 of the Act, we give in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purpose of our audit;
b) in our opinion, proper books of account as required by law have been kept by the
Company so far as appears from our examination of those books;
c) The Balance Sheet, Statement of Profit and Loss, and the Cash Flow Statement dealt
with by this Report are in agreement with the books of account ;
d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and the Cash Flow
Statement comply with the Accounting Standards referred to in sub-section (3C) of Section
211 of the Companies Act, 1956 read with the General Circular 15/2013 dated September 13,
2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act,
2013;
e) On the basis of written representations received from the Directors as on March 31,
2014, and taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 2014, from being appointed as a director in terms of clause (g) of
sub-section(1) of Section 274 of the Companies Act, 1956.
|
For NGS & Co. LLP |
|
Chartered Accountants |
|
Firm Registration No. 119850W |
|
Ganesh Toshniwal |
| Mumbai |
Partner |
| May 30, 2014 |
Membership No. 046669 |
Annexure to the Independent Auditors Report
(Referred to in Paragraph 1 under Report on Other Legal and Regulatory Requirements
section in our report of even date)
i. (a) The Company has maintained proper records showing full particulars, including
quantitative details and situation of fixed assets.
(b) Some of the fixed assets were physically verified during the period by the
Management in accordance with a regular programme of verification, which, in our opinion,
provides for physical verification of all the fixed assets at reasonable intervals.
According to the information and explanations given to us, no material discrepancies were
noticed on such verification.
(c) The fixed assets disposed off during the period, in our opinion, do not constitute
a substantial part of the fixed assets of the Company.
ii. (a) As explained to us, management has conducted physical verification of inventory
at regular intervals during the period.
(b) In our opinion and according to the information and explanations given to us, the
procedures of physical verification of inventory followed by the Management were
reasonable and adequate in relation to the size of the Company and nature of its business.
(c) In our opinion and according to the information and explanations given to us, the
Company has maintained proper records of its inventories and no material discrepancies
were noticed on physical verification.
iii. The Company has not granted/taken any loan, secured or unsecured to companies,
firms or other parties covered in the register maintained under section 301 of the Act.
Therefore, the provisions of clause 4(iii) of the Order are not applicable to the Company.
iv. In our opinion, and according to the information and explanations given to us,
there is an adequate internal control system commensurate with the size of the Company and
the nature of its business, for the purchase of inventory and fixed assets and for sale of
goods and services. During the course of our audit, we have not observed any major
weakness or continuing failure to correct any major weakness in the internal control
system of the Company in respect of these areas.
v. (a) In our opinion, the particulars of all contracts or arrangements that need to be
entered into the register maintained under section 301 of the Act have been so entered.
(b) In our opinion, the transactions made in pursuance of such contracts or
arrangements and exceeding the value of rupees five lakhs in respect of any party during
the period have been made at prices which are reasonable having regard to prevailing
market prices at the relevant time.
vi. The Company has not accepted any deposits from the public.
vii. In our opinion, the internal audit functions carried out during the period by
firms of Chartered Accountants appointed by the management have been commensurate with the
size of the Company and the nature of its business.
viii. We have broadly reviewed the books of accounts maintained by the Company pursuant
to the rules prescribed by the Central Government for the maintenance of cost records
under clause (d) of sub section (1) of Section 209 of the Companies Act, 1956 and are of
the opinion that prima facie, the prescribed accounts and records have been made and
maintained. However, we have not made a detailed examination of the records.
ix. (a) Undisputed statutory dues including Provident Fund, Investor Education and
Protection Fund, Employees State Insurance, Income-Tax, Sales-Tax, Wealth-Tax,
Service-Tax, Custom Duty, Excise Duty, Cess and other material statutory dues, as
applicable, have generally been regularly deposited with the appropriate authorities,
though there has been a slight delay in a few cases.
(b) No undisputed amounts payable in respect of Provident Fund, Investor Education and
Protection Fund, Employees State Insurance, Income-Tax, Sales-Tax, Service Tax, Wealth
Tax, Customs Duty, Excise Duty, Cess and other material statutory dues applicable to the
Company were in arrears as at March 31, 2014 for a period of more than six months from the
date they became payable.
(c) Details of statutory dues which have not been deposited as at March 31, 2014 on
account of dispute are given below.
| Name of the Statute |
Nature of the dues |
Amount (Rs. In Crores) |
Period to which the amount relates |
Forum where dispute is pending |
| The Indian Stamp Act, 1899 |
Stamp Duty |
8.92 |
FY : 2008-09 |
Chief Controlling Revenue Authority, Ghaziabad, U.P |
| The Income Tax Act, 1965 |
Income Tax |
0.05 |
AY : 2004-05 |
Commissioner of Income Tax (Appeal) |
| The Income Tax Act, 1965 |
Income Tax |
3.37 |
AY : 2007-08 |
Commissioner of Income Tax (Appeal) |
| The Income Tax Act, 1965 |
Income Tax |
0.42 |
AY : 2008-09 |
Income Tax Appellate Tribunal |
| Name of the Statute |
Nature of the dues |
Amount In Crores) |
Period to which the amount relates |
Forum where dispute is pending |
| The income Tax Act, 1965 |
income Tax |
1.66 |
AY : 2009-10 |
income Tax Appellate Tribunal |
| The income Tax Act, 1965 |
income Tax |
4.78 |
AY : 2010-11 |
income Tax Appellate Tribunal |
| The income Tax Act, 1965 |
income Tax |
28.54 |
AY : 2011-12 |
income Tax Appellate Tribunal |
| The income Tax Act, 1965 |
income Tax |
0.21 |
AY : 2011-12 |
Commissioner of income Tax (Appeal) |
| UP - Trade Tax Act |
VAT |
0.07 |
FY: 200708 |
Additional Commissioner Grade 2, Kanpur |
| UP - VAT Act |
VAT |
0.09 |
FY: 200708 |
Additional Commissioner Grade 2, Kanpur |
| UP - VAT Act |
VAT |
0.10 |
FY: 200809 |
Additional Commissioner Grade 2, Kanpur |
| UP - VAT Act |
VAT |
0.30 |
FY: 201213 |
Additional Commissioner Grade 2, Kanpur |
| UP - VAT Act |
VAT |
0.09 |
FY: 200910 |
Additional Commissioner Grade 2, Kanpur |
| CST AcRs. 1956 |
CST |
1.06 |
FY: 200607 |
Appellate Authority-DC |
| CST AcRs. 1956 |
CST |
0.55 |
FY: 200708 |
Appellate Authority-DC |
| VAT Act |
VAT |
0.19 |
FY: 200910 |
Directorate of Commercial Taxes |
| CST AcRs. 1956 |
CST |
0.15 |
FY: 200910 |
Dy. Commissioner of Sales Tax |
x. The Company does not have accumulated losses at the end of the financial period. The
company has not incurred any cash losses in the current period and in the immediately
preceding financial period.
xi. Based on our audit procedures and as per the information and explanations given by
management, we are of the opinion that the Company has not defaulted in repayment of dues
to bank, financial institutions and debenture holders.
xii. According to the information and explanations given to us, the Company has not
granted any loans and advances on the basis of security by way of pledge of shares,
debentures and other securities.
xiii. in our opinion, and according to the information and explanations given to us,
the Company is not a Chit fund or Nidhi or Mutual Benefit Fund or Society.
xiv. According to the information and explanations given to us, the Company is not
dealing or trading in shares, securities, debentures and other investments.
xv. The Company has given guarantee for loans taken by others from banks. According to
the information and explanations given to us, we are of the opinion that the terms and
conditions thereof are not prima facie prejudicial to the interest of the company.
xvi. in our opinion and according to the explanations given to us, term loans obtained
have been applied for the purpose for which they were obtained. in case of term loans
taken over under the scheme of arrangement described under Note 37 to the financial
statements and outstanding during the period, as explained to us, the merged Company had
utilised the said loans in the earlier periods.
xvii. in our opinion and according to the information and explanations given to us and
on overall examination of the Balance Sheet and Cash Flow Statement of the Company, we
report that funds raised on short-term basis have, prima facie, not been used during the
period for long term investment.
xviii. The Company has not made any preferential allotments of shares to parties
covered in the register maintained under section 301 of the Companies Act, 1956.
xix. According to the information and explanations given to us the Company has created
security in respect of debentures issued during the financial period covered by our audit
report.
xx. The Company has not raised any money from public issues during the period.
xxi. To the best of our knowledge and belief and according to the information and
explanations given to us, no fraud by the Company was noticed or reported during the
period, although there were some instances of fraud on the Company noticed by the
Management, the amounts whereof were not material in the context of the size of the
Company and the nature of its business and the amounts were adequately provided for.
|
For NGS & Co. LLP |
|
Chartered Accountants |
|
Firm Registration No. 119850W |
|
Ganesh Toshniwal |
| Mumbai |
Partner |
| May 30, 2014 |
Membership No. 046669 |
+91-9892691696
