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
Sep 30, 16:00
148.00
3.95 (2.74%)
VOLUME 6,165
LIVE
NSE
Sep 30, 15:40
149.55
5.1 (3.53%)
VOLUME 27,240
« Mar 12
Auditor's Report (Bombay Rayon Fashions) Year End : Mar '13
Report on the Financial Statements
 
 We have audited the accompanying financial statements of Bombay Rayon
 Fashions Limited, which comprise the Balance Sheet as at March 31,
 2013, and the Statement of Profit and Loss and Cash Flow Statement for
 the year then ended, and summary of significant accounting policies and
 other explanatory information.
 
 Management 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 principles generally accepted in India including
 Accounting Standards referred to in sub-section (3C) of section 211 of
 the Companies Act, 1956 the Act). 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.
 
 Auditor''s 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 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 control relevant to the Company''s preparation and fair
 presentation of the financial statements in order to design audit
 procedures that are appropriate in the circumstances. 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, 2013;
 
 (b) In the case of the Profit and Loss Account, of the Profit 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
 
 (a) As required by the Companies (Auditor''s Report) Order, 2003
 (the Order) 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.
 
 (b) As required by section 227(3) of the Act, we report that:
 
 i.  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;
 
 ii.  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;
 
 iii. The Balance Sheet, Statement of Profit and Loss, and Cash Flow
 Statement dealt with by this Report are in agreement with the books of
 account;
 
 iv.  In our opinion, the Balance Sheet, Statement of Profit and Loss,
 and Cash Flow Statement comply with the Accounting Standards referred
 to in subsection (3C) of section 211 of the Companies Act, 1956;
 
 v.  On the basis of written representations received from the directors
 as on March 31, 2013, and taken on record by the Board of Directors,
 none of the directors is disqualified as on March 31, 2013, from being
 appointed as a director in terms of clause (g) of sub-section (1) of
 section 274 of the Companies Act, 1956.
 
 Annexure to the Auditor''s Report of Even Date
 
 (Referred to in paragraph 1 thereof)
 
 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) Based on our scrutiny of the records of the company and the
 information & explanation received by us, we report that there were
 sale of fixed assets during the year but the fixed assets disposed off
 did not constitute a substantial part of the fixed assets of the
 company.
 
 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
 verification.
 
 3.  In respect of loans, unsecured, granted and taken.
 
 a) The company has granted interest free advances to five companies
 including four subsidiaries covered in the register maintained under
 section 301 of the companies Act, 1956, the maximum amount outstanding
 at any time during the year is Rs. 587.52 Crores and the year balance
 is Rs. 545.40 Crores .
 
 b) In our opinion and according to the information and explanations
 given to us, other terms and conditions are not prima facie prejudicial
 to the interest of the Company.
 
 c) In respect of the said advances amounting to Rs. 210 Crores is
 repayable within the period of one year and remaining over a period of
 5 to 7 years.
 
 d) In respect of the said loans, there are no overdue amounts
 
 e) During the year the company has not taken any loans from parties
 covered in the registered maintained under section 301 of the Companies
 Act, 1956.
 
 f) In view of our comments above, clause (iii) (f) and (g) of the said
 order is not applicable to the company.
 
 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 for the sale of goods and
 fixed assets. 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.  In respect of the contracts or arrangements referred to in Section
 301 of the Companies Act, 1956:
 
 a) In our opinion and according to the information and explanations
 given to us the particulars of contracts or arrangements referred to in
 section 301 of the Act have been entered in to the register required to
 be maintained under that section.
 
 b) In our opinion and according to the information and explanations
 given to us, transactions made in pursuance of contracts or
 arrangements entered in the register maintained under section 301 of
 the Act and exceeding the value of Rupees five lakhs in respect of any
 party during the year, have been made at prices, which are prima facie
 reasonable having regard to the prevailing market prices at the
 relevant time.
 
 6.  According to the information and explanations given to us, the
 Company has not accepted any deposits from public.
 
 7.  In our opinion the Company has an internal audit system
 commensurate with its size and nature of its business.
 
 8.  As per the information and explanations provided to us, we are of
 the opinion that in pursuant to prescribed rules by the central
 government, the company has maintained cost records u/s. 209(1) (d) of
 the Companies Act, 1956 however we have not done a detailed examination
 of the same.
 
 9.  In respect of statutory dues:
 
 a) According to the records of the company produced before us, the
 Company has been regular in depositing with appropriate authorities
 undisputed statutory dues in respect of , Investor Education Protection
 Fund, Sales Tax, Wealth Tax, Custom Duty and Excise Duty, however the
 Company has been irregular in depositing with appropriate authorities
 undisputed statutory dues in respect of Provident Fund, Employees State
 Insurance, Income Tax.
 
 b) Accordingly to the information and explanation given undisputed
 amounts payable in respect of TDS, TCS, Provident Fund, Employees State
 Insurance, Service Tax and other statutory dues applicable to it which
 were outstanding as at the last day of the financial year for a period
 of more than six months from the date they became payable is as under:-
 
 S.
 No. Name of Head                                       Amount (Rs.)
 
 1   Tax Deducted at Source                            5,68,05,312
 
 2   Tax Collected at Source                                66,718
 
 3   Employee State Insurance Corporation                89,39,810
 
 4   Service Tax                                          8,75,200
 
 5   Professional Tax                                    23,05,488
 
 6   Provident Fund                                    3,35,98,929
 
 7   Property tax                                        70,23,956
 
     TOTAL                                            10,96,15,413
 
 c) According to the records of the company, there are no disputed dues
 of Income Tax, sales tax, customs duty, wealth tax, service tax and
 excise duty / cess except as under:
 
 Name of the 
 Statute        Amount (Rs. 
                In Crores)    Period for which it  Forum where dispute is 
                              relates              pending 
 
 Income Tax 
 Act, 1961            0.02    AY 2004-05           Commissioner of
                                                   Income Tax (Appeals 
                                                   41), Mumbai
 
 Income Tax
 Act, 1961            0.02    A Y 2006-07          Income Tax Appellate 
                                                   Tribunal, Mumbai
 
 Income Tax 
 Act, 1961            0.72    AY 2006-07           Commissioner of 
                                                   Income Tax (Appeals 
                                                   14), Mumbai
 
 Income Tax 
 Act, 1961            0.28    AY 2007-08           Commissioner of 
                                                   Income Tax (Appeals
                                                   41), Mumbai
 
 Income Tax 
 Act, 1961           35.98    AY 2008-09           Commissioner of
                                                   Income Tax (Appeals
                                                   41), Mumbai
 
 Income Tax 
 Act, 1961            0.14    AY 2008-09           Commissioner of 
                                                   Income Tax (Appeals 
                                                   14), Mumbai
 
 Income Tax 
 Act, 1961            0.12    AY 2009-10           Commissioner of
                                                   Income Tax (Appeals 
                                                   14), Mumbai
 
 Income Tax 
 Act, 1961            1.30    AY 2009-10           Commissioner of 
                                                   Income Tax (Appeals 
                                                   41), Mumbai
 
 Income Tax 
 Act, 1961           21.44    AY 2010-11           Commissioner of
                                                   Income Tax (Appeals
                                                   41), Mumbai
 
 10.  The company has no accumulated losses at the end of the financial
 year. The company has not incurred any cash loss during the financial
 year covered by our audit and in the immediately preceding financial
 year.
 
 11.  Based on our audit procedures and as per the information and
 explanations given by the management, the company was not regular in
 repayment of the dues to the banks. As at 31st March 2013 the unpaid
 overdue installments and interest to the banks were Rs. 95.85 Crores,
 out of which since unpaid Rs. 64.43 crores.
 
 12.  The Company has not borrowed from any financial institutions and
 issued debentures.
 
 13.  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 or other securities.
 
 14.  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 neither a Chit Fund nor a nidhi/mutual benefit
 society. Hence, in our opinion, the requirements of para 4 (xiii) of
 the Order do not apply to the company.
 
 15.  As per records of the company and information and explanations
 given to us by the management, company is not dealing or trading in
 shares, securities, debentures and other investments.
 
 16.  According to the information and explanations given to us the
 company has not given any guarantee for loans taken by others from
 banks or financial institutions.
 
 17.  According to the records of the Company, the Company has applied
 the term loans for the purposes of which it was taken during the year.
 
 18.  According to the information and explanations given to us and, on
 an overall examination of the balance sheet of the company, we report
 that no funds raised on short-term basis has been used for long-term
 investment by the company.
 
 19.  According to the records of the company and the information
 provided by the management, the company has not made any preferential
 allotment of shares to parties and companies covered in the register
 maintained under section 301 of the Act.
 
 20.  During the period covered by audit report the company has not
 issued any debentures.
 
 21.  During the year the company has not raised any money by way of
 public issue.
 
 22.  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.
 
                                         For V.K. BESWAL & ASSOCIATES
 
                                                CHARTERED ACCOUNTANTS
 
                                                     C.A. R.P. LADDHA
 
                                                              PARTNER
 
                                            Membership Number - 48195
 
                                              Firm Regn. No.: 101083W
 
 Place - Mumbai
 
 Dated: June 7th, 2013
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.