Moneycontrol
Close Ad
SENSEX NIFTY
Bombay Rayon Fashions | Auditor's Report > Textiles - General > Auditor's Report from Bombay Rayon Fashions - BSE: 532678, NSE: BRFL
YOU ARE HERE > MONEYCONTROL > MARKETS > TEXTILES - GENERAL > AUDITORS REPORT - Bombay Rayon Fashions

Bombay Rayon Fashions

BSE: 532678|NSE: BRFL|ISIN: INE589G01011|SECTOR: Textiles - General
SET ALERT
|
ADD TO PORTFOLIO
|
WATCHLIST
LIVE
BSE
Apr 20, 16:00
31.50
-1 (-3.08%)
VOLUME 13,945
LIVE
NSE
Apr 20, 15:48
31.45
-1.05 (-3.23%)
VOLUME 202,531
Mar 16
Auditor's Report (Bombay Rayon Fashions) Year End : Mar '17

Report on the Standalone Ind AS Financial Statements

1. We have audited the accompanying standalone Ind AS financial statements of Bombay Rayon Fashions Limited (“the Company”), which comprise the Balance Sheet as at 31 March 2017, the Statement of Profit and Loss (including other comprehensive income), the Cash Flow Statement and the statement of changes in equity for the year then ended, and a summary of the significant accounting policies and other explanatory information (herein after referred to as “standalone Ind AS financial statements”)

Management’s Responsibility for the Standalone Ind AS Financial Statements

2. 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 Ind AS financial statements, that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind As) specified under Section 133 of the Act, read with relevant rules issued thereunder. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act; safeguarding the assets of the Company; preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

3. Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.

4. 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.

5. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.

6. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial controls relevant to the Company’s preparation of the Standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the 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 standalone Ind AS financial statements.

7. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.

Opinion

8. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS 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 including the Ind AS, of the state of affairs of the Company as at 31 March 2017, and its financial performance including other comprehensive income, its cash flows and the changes in equity for the year ended on that date.

Report on Other Legal and Regulatory Requirements

9. As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”) issued by the Central Government of India in terms of Section 143(11) of the Act, we give in the Annexure I a statement on the matters specified in paragraphs 3 and 4 of the Order.

10. As required by Section143(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 books.

c. The Balance sheet, the statement of profit and loss, the statement of cash flow and the statement of changes in equity dealt with by this report are in agreement with the books of account.

d. In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards (Ind As) specified under Section 133 of the Act, read with relevant rule issued thereunder.

e. On the basis of the written representations received from the directors as on 31 March, 2017 and taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2017 from being appointed as a director in terms of Section164(2) of the Act;

f. We have also audited the internal financial controls over financial reporting (IFCoFR) of the Company as of 31 March 2017 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date and our report dated 30.05.2017 as per Annexure II expressed.

g. 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) Amendment Rules, 2017, in our opinion and to the best of our information and according to the explanations given to us:

i. As detailed in Note 42 to the standalone Ind AS financial statements, the Company has disclosed the impact of pending litigations on its standalone Ind AS financial statements;

ii. The company does not have any long term contracts including derivative contracts for which there were any material foreseeable losses.

iii. The Company has not transferred the requisite amount which was required to be transferred to the Investor Education and Protection Fund by the company. The details of which is as under:-

Sr. No.

Financial Year

Amount (Rs.)

1.

2008-09

2,00,658/-

iv. The company has provided requisite disclosures in its standalone Ind AS financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8th November, 2016 to 30th December, 2016 and these are in accordance with of books of accounts maintained by the company. Refer Note 45 to the standalone Ind AS financial statements.

Annexure I to the Auditor’s Report even date CARO 2016:

1. In respect of Fixed Assets:

a. The Company has maintained proper records showing full particulars, including quantitative details and situation of 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.

c. The title deeds in respect of all immovable properties are held in the name of the company.

2. In respect of Inventories:

As explained to us physical verification of inventory has been conducted during the year at reasonable intervals by the management and 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 verification.

3. In respect of loans, secured or unsecured granted by the Company to other Companies, firms, LLP or other parties covered in the register maintained under section 189 of the Companies Act, 2013.

a. The Company has granted interest free advances to a Subsidiary company covered in the register maintained u/s 189 of the Companies Act, 2013.

b. In respect of the Long term 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. (in consideration with Note No 46 to the Notes to accounts of the Ind As Standalone Financial Statements).

4. The Company has complied with the provisions of section 185 and 186 of the Companies Act, 2013 in respect of Loans granted during the year. There are no Investments & Securities made or any guarantees given during the year.

5. During the year the company has not accepted any deposits from public or by any means hence the said clause 3(v) of the said order is not applicable to the Company.

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) According to record of the Company produced before us, the Company has not been regular in depositing the undisputed statutory dues and there have been delays in depositing undisputed statutory dues with the appropriate authorities. According to the information and explanations given, no undisputed amounts payable in respect of sales tax, customs duty, excise duty/cess were outstanding as at 31.03.2017 for a period of more than six months from the date they became payable except as given below:

Statement of Arrears of statutory dues outstanding for more than six months as at 31st March 2017:

(Rs.in Crores)

Sr. No

Nature of Dues

Amount

1.

Provident Fund

15.25

2.

Employee State Insurance Contribution

2.70

3.

Profession Tax

1.00

4.

Tax Collected at Source

0.15

5.

Property Tax

2.99

6.

Service Tax

0.67

7.

Tax Deducted at Source

4.82

8.

Excise Duty

0.15

9

Income Tax

11.70

Total

39.43

(b) 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.

(Rs.in Crores)

Nature of the Act

Amount

Period to which the amount relates

Forum where dispute is pending

Employees Provident Funds and Miscellaneous Provision Act, 1952

6.27

2000-01 to 2015-16

Employees Provident Funds Appellate Tribunal. New Delhi

Employee State

Insurance

Contribution

2.70

2011-12 to 2015-16

ESI. Court, Bangalore

CIT (A)-54, Mumbai

Income Tax Act,1961

0.38

AY 2012-13

CIT(A)-54,

Mumbai

Income Tax Act,1961

33.39

AY 2013-14

Total

42.74

8. In our opinion and according to the information and explanations given to us, there have been delays in repayment of dues to financial institutes and banks during the year, as on 31.03.2017 the amount due and remaining unpaid on account of principal and interest to lenders is given below:

(Rs.in Crores)

Particulars

Overdue in

Overdue in

Total Overdue

Principal

Interest

Upto 30 days

21.88

25.67

47.55

From 31 days To 60 days

5.40

21.78

27.18

From 61 days To 90 days

5.40

22.37

27.77

Above 91 days

46.07

86.05

132.12

Total

78.75

155.87

234.62

Total outstanding amount on account of repayment of term loans of Rs. 78.75 Crores and interest of Rs. 155.87 Crores due and unpaid as on 31.03.2017 was considered as part of unsustainable debt and accordingly was cleared in full on 24.05.2017 upon conversion into equity shares under Scheme of Structuring of Stressed Assets. (in consideration with Note No 34 to the Notes to accounts of the Ind As Standalone Financial Statements)

9. During the year the Company has raised fund by way of term loans and utilized for the purpose for which they were obtained. Company has not raised any fund by way of initial public offer or further public offer (including debt instruments).

10. Based upon the audit procedures 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 audit.

11. The Company has paid Managerial remuneration during the year according to the provisions of section 197 read with Schedule V to the Companies Act, 2013.

12. In our opinion and to the best of our information and according to the explanations provided by the management, we are of the opinion that the company is not a Nidhi Company. Hence, in our opinion the clause does not apply to the company.

13. The Company has disclosed all the transactions with the related parties in the Financial Statements during the year and the transactions are in compliance with sections 177 and 188 of Companies Act, 2013.

14. During the year under consideration, pursuant to the CDR Scheme, Funded Interest Term Loan and Working Capital Term Loan amounting to Rs.851.09 crores has been allotted to lenders on account of conversion into equity shares as a preferential allotment of equity shares and term thereof are not prejudicial to the interest of the Company.

15. According to the provisions of section 192 of Companies Act, 2013 the company has not entered into any noncash transactions with directors or persons connected with him during the year hence no comments under this clause are called for.

16. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934, hence this clause is not applicable and no comments under this clause are called for.

For V.K BESWAL & ASSOCIATES

Chartered Accountants

CA VK BESWAL

Partner

Membership Number- 30426

Firm Registration No:101083W

Place: Mumbai

Date: 30.05.2017

Source : Dion Global Solutions Limited
Quick Links for bombayrayonfashions
Explore Moneycontrol
Stocks     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z | Others
Mutual Funds     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.