Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of
Bombay Rayon Fashions Limited (the Company), which comprises the
Balance Sheet as at March 31, 2015, the Statement of Profit and Loss
and Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated
in Section 134 (5) of the Companies Act, 2013 ( the Act) with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with accounting principles
generally accepted in India, including the Accounting Standards
specified under section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the act for safeguarding of the assets of the company for
preventing and detecting frauds and other irregularities; selection and
application of appropriate accounting policies; Making judgments and
estimates that are reasonable and prudent; and the design,
implementation and maintenance of adequate internal financial controls
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatements, whether due to fraud or
Our responsibility is to express an opinion on these standalone
financial statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the rules made there under. We conducted our
audit in accordance with the Standards on Auditing issued by the
Institute of Chartered Accountants of India, as specified under section
143(10) of the Act. Those Standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from material
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company''s
preparation of the standalone financial statements that give a true and
fair view in order to design audit procedures that are appropriate in
the circumstances but not for the purpose of expressing an opinion on
whether the company has in place an adequate internal financial system
over financial reporting and the operating effectiveness of such
controls. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by the company''s Directors, as well as evaluating the
overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone 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, 2015;
(b) In the case of statement of Profit and Loss, of the Loss for the
year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2015 (the
Order) issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure 1 a
statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
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 it appears from our examination of those
c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
d) In our opinion, the aforesaid standalone financial statements comply
with the Accounting Standards specified under section 133 of the Act,
read with rule 7 of the Companies (Accounts) rules,2014;
e) On the basis of written representations received from the directors
as on March 31, 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2015, from being
appointed as a director in terms of section 164(2) of the Act;
f) With respect to the other matters to be included in the Auditor''s
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules,2014, in our opinion and to the best of our information and
according to the explanations given to us;
i) The company has disclosed the impact of pending litigations on its
financial position in its financial statements.
– Refer note 35 to the financial statements;
ii) The company does not have any long term contracts including
derivative contracts for which there were any material foreseeable
iii) There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the company.
Annexure to the Auditor''s Report even date
(Referred to in paragraph 1 thereof)
1. In respect of Fixed Assets:
a) The Company has maintained proper records showing full particulars,
quantitative details and situation of its fixed assets.
b) The fixed assets have been physically verified by the management at
reasonable intervals during the year. We are informed that no material
discrepancies were noticed by the management on such verification.
2. In respect of Inventories:
a) As explained to us physical verification of inventories has been
conducted during the year by the management at reasonable intervals.
b) In our opinion, the procedures of physical verification of
inventories followed by the management are 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 explanation
given to us, the Company is maintaining proper records of its
inventories and no material discrepancies were noticed on physical
3. In respect of loans, secured or unsecured granted by the Company to
the companies, firms or other parties covered in the register
maintained under Section 189 of the companies Act, 2013:
a) During the year Company has granted interest free advances to 4
subsidiary companies covered in the register maintained u/s 189 of the
Companies Act, 2013.
b) In respect of the said loan, the principal amount is repayable over
a period of 5 to 7 years.
c) In respect of the said loan, there are no overdue amounts.
4. In our opinion and according to the information and explanations
given to us, there is 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 sale of goods and services.
Further, on the basis of our examination of the books and records of
the company, carried out in accordance with the auditing standards
generally accepted in India and according to the information and
explanations given to us, we have neither come across nor have we been
informed of any continuing failure to correct weaknesses in the
aforesaid internal control system.
5. According to the information and explanations given to us, the
Company has not accepted any deposits from public.
6. As per the information and explanations provided to us, we are of
the opinion that in pursuant to the prescribed rules by Central
Government, the company had maintained cost records u/s. 148(1) (d) of
the Companies Act, 2013; however we have not done a detailed
examination of the same.
7. In respect of Statutory Dues:
(a) Undisputed statutory dues including provident fund, employees state
insurance, income tax, sales tax, custom duty, excise duty, cess and
other material statutory dues have not been regularly deposited with
the appropriate authorities,
(b) According to the information and explanations given, undisputed
amounts payable in respect of TDS, TCS, Provident fund, Employee state
insurance, service tax, customs duty, excise duty, cess and other
statutory dues applicable to it which were outstanding as at 31.03.2015
for a period of more than six months from the date they became payable
are as under :- Statement of Arrears of statutory dues outstanding for
more than six months as at 31st March 2015:
No. Nature of the Dues Amount (Rs. In crores)
1 Tax Deducted at Source 4.49
2 Provident Fund 7.89
3 Professional Tax 0.79
4 Employee State insurance Corporation 0.46
5 Service Tax 1.26
6 Property Tax 2.05
(c) According to the records of the company there are no dues of
Income-Tax, sales tax, wealth tax, service tax, customs duty, excise
duty / cess which have not been deposited on account of any dispute
except as given below.
Nature of the Act Amount (Rs.
In Crores) Period to which
the Forum where
amount relates pending
Income Tax Act, 1961 0.02 2004-05 CIT (A) - 54,
Income Tax Act, 1961 0.82 2009-10 ITAT Mumbai
Income Tax Act, 1961 1.22 2010-11 ITAT Mumbai
Income Tax Act, 1961 0.21 2011-12 CIT (A) - 54,
(d) According to the records of the company there are no amounts that
are to be transferred to Investor Education & Protection Fund.
8. The company has no accumulated losses at the end of the year. The
company has not incurred any cash loss during the current year.
However, it has incurred cash losses ofRs. 344.02 Crores (After
considering extra ordinary items ofRs. 349.28 Crores) in the
immediately preceding financial year covered by our audit.
9. In our opinion and according to the information and explanations
given to us, there have been delay in repayment of dues to financial of
dues to financial institutes and banks during the year, As on date the
amount due and remaining unpaid on account of principal and interest to
lenders was Rs. 31.98 crore.
10. The company has not given any corporate guarantees for loans taken
by others from banks and financial Institutions.
11. According to the records of the company, the company has applied
the term loans for the purpose of which it was taken during the year.
12. Based upon the audit procedure performed and information and
explanations given by the management, we report that no fraud on or by
the company has been noticed or reported during the course of our
For V. K. BESWAL & ASSOCIATES
FIRM REGN NO 101083W
CA K. V. BESWAL
Place : Mumbai Membership Number: 131054
Dated : 22/05/2015 Firm Regn. No.: 101083W