REPORT OF THE NOMINATION & REMUNERATION COMMITTEE

REPORT OF THE AUDIT COMMITTEE: Generation Next Fashions Limited established an audit committee as a subcommittee of the Board of Directors and they assist the Board of Directors in fulfilling its oversight responsibilities and ensuring that the Financial Statements reflect true and fair view. There are four members in the Audit Committee including three Independent Director. The Independent Director is the chairman of the committee. The members of the audit committee possess adequate knowledge on business management and all of them are financially literate as per regulatory requirements and also able to analyze and interpret, corporate laws, financial issues and financial statements. During the year ended on 30th June, 2021 the Committee held 4 (four) meetings in which the committee reviewed issues relating to business operation, administrative control, Finance and Accounts, review the financial reporting among other things. The committee has been empowered to examine the matters related to financial and internal control management and other affairs of the company. Relevant departmental heads and other members of the management also attend the meetings as required. The proceeding of the Committee meetings is regularly reported to the Board of Directors. The Attendance record of the members in the meetings is mentioned below:

OBJECTIVE OF AUDIT COMMITTEE:

The principal function of the Audit Committee is to exercise and have an oversight over the Company’s risk management, financial reporting and regulatory compliance functions etc.

The role and responsibilities of the Audit Committee:

The audit committee has been playing a vital role among the board, Members and Other stakeholders of the company. The role of the audit committee is clearly set-forth in the ToR. Audit Committee making a bridge between the Board and the Management to strengthen internal control and compliances.

Activities of NRC during the year:

1. Review and recommend to the Board to approve the quarterly, annual financial statements as well as over-all financial reporting process prepared for statutory purpose.

2. Reviewed and recommended various pertaining the quarterly and annual financial statements.

3. Monitor and watch over selection of accounting policies and principles, adequacy of internal audit, internal audit & compliance plan & report, risk management process, auditing matter, hiring, remuneration and performance of external auditors.

4. Appraise significance of related party transactions submitted by the management.

5. Carry on supervisory role to safe guard the systems of governance and independence of statutory auditor’s.

6. Evaluate and consider the report of internal and statutory auditor’s observations on internal control.

7. Conduct audit concerning material violation by the management in carrying out operation of the company.

8. Review Management’s Discussion and Analysis report before disclosing in the annual report.

9. Review reports of litigation and regulatory compliance matters

Activities carried out during the year:

1. The financial statements were reviewed by the committee after the closing of each and every quarter before submission to Board and subsequently recommended to the Board for consideration an approval.

2. The Committee had overseen reviewed and approved the procedure and task of the internal audit, financial report preparation and external audit reports and made suggestions for improvement.

3. Holding meeting to review the financial statements with Statutory Auditor’s & Management before submission to the Board.

4. Reviewed and recommended Board to consider few expenses from financial mode to operating mode.

5. The committee found adequate arrangement to present true and fair view of the activities and the financial status of the company and didn’t find any material deviation, discrepancies or any adverse findings/ observation in the areas of reporting.

6. Reviewed the appointment of external and compliance auditors and determination of audit fees and others.

7. Reviewed Management’s Discussion and Analysis report before disclosing in the annual report.

8. Review all related party transaction, its nature etc. submitted by the management.