Moneycontrol
Get App
Close Ad
SENSEX NIFTY
Bombay Dyeing and Manufacturing Company | Auditor's Report > Textiles - Processing > Auditor's Report from Bombay Dyeing and Manufacturing Company - BSE: 500020, NSE: BOMDYEING
YOU ARE HERE > MONEYCONTROL > MARKETS > TEXTILES - PROCESSING > AUDITORS REPORT - Bombay Dyeing and Manufacturing Company

Bombay Dyeing and Manufacturing Company

BSE: 500020|NSE: BOMDYEING|ISIN: INE032A01023|SECTOR: Textiles - Processing
SET ALERT
|
ADD TO PORTFOLIO
|
WATCHLIST
LIVE
BSE
Jul 17, 16:00
98.95
0
VOLUME 114,089
LIVE
NSE
Jul 17, 15:59
99.00
0
VOLUME 585,148
Mar 16
Auditor's Report (Bombay Dyeing and Manufacturing Company) Year End : Mar '17

INDEPENDENT AUDITOR''S REPORT

TO THE MEMBERS OF

THE BOMBAY DYEING AND MANUFACTURING COMPANY LIMITED Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of THE BOMBAY DYEING AND MANUFACTURING COMPANY LIMITED

(the Company), which comprise the Balance Sheet as at March 31, 2017, Statement of Profit and Loss and the 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 the 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 the assets of the Company and 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 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 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 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 specified under Section 143(10) of the Act. fumes Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and the 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 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 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 financial statements.

Opinion

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, of the state of affairs of the Company as at March 31, 2017 and its profit and its cash flows for the year ended on that date.

Emphasis of Matter

We draw attention to:

1) Note 39 to the financial statements regarding agreements to sell certain apartments in the proposed residential towers being constructed at Island City Centre to SCAL Services Ltd., a Group Company, in terms of various MOUs entered between the companies till March 2017. the Company has during the year recognized net revenues of Rs, 156.07 crore (2015-16: Rs, 239.26 crore) and resultant profit before tax ofRs, 102.63 crore (2015-16: Rs, 158.63 crore) on sale ofsaid apartments to SCAL.

2) Note 43 to the financial statements regarding the remuneration paid to the Managing Director in excess of the limits prescribed under Section 197 read with Schedule V of the Act by Rs, 4.29 crore, due to inadequacy of profits, the Company has received an approval from the Central Government dated June 21, 2017, for payment of remuneration amounting to Rs, 2.12 crore only, “ftie Company is proposing to make a representation to the Central Government with a request to reconsider the amount approved. Pending such representation, no adjustments have been made in the accounts for the year ended March 31, 2017 and the excess amount is held by the Managing Director in trust for the Company.

Our opinion is not modified in respect of the above matters.

Report on Other Legal and Regulatory Requirements

1) As required by the Companies (Auditors Report) Order, 2016 (“the Order) issued by the Central Government of India in terms ofsub-section (11) ofsection 143 of the Act, we give in Annexure

''A'' a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

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 purposes 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 ofthose books.

(c) The Balance Sheet, the Statement of Profit and Loss and Cash Flow Statement dealt with by this report are in agreement with the books of account.

(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, 2017 and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2017 from being appointed as a director in terms of section 164(2) of the Act.

(f) With respect to the adequacy of the internal financial controls over financial reporting of the company and the operating effectiveness of such controls, refer to our separate report in Annexure ''B''; and,

(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) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us, we further report that:

i. The Company has disclosed the impact of pending litigations on its financial position in the financial statements- Refer Notes 32 and 42 to the standalone financial statements.

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

iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.

iv The company has provided requisite disclosures in its financial statements as to holdings as well as dealings in Specified Bank Notes, as defined in the Notification S. 0.3407 (E) dated 8th November, 2016 of the Ministry of Finance, during the period from 8th November, 2016 to 30th December, 2016. Based on audit procedures performed and the representations of management, we report that the disclosures are in accordance with books of account maintained by the Company - Refer Note 47 to the standalone financial statements.

Referred to in Para 1 ‘Report on Other Legal and Regulatory Requirements'' of our Report to the members of the Company on the standalone financial statements for the year ended March 31, 2017:

Statement on Matters Specified in paragraphs 3 and 4 of the Companies (Auditors Report) Order, 2016

1. (a) The Company has maintained records showing full particulars, including quantitative details and situation of fixed assets, the records of certain assets need to be assimilated to make identification possible.

(b) The Company has a program for physical verification of fixed assets in a phased manner, the Company did not carry out physical verification of fixed assets during the year, however, the dismantling and slare of its Ranjangaon plant is in progress. In the circumstances, we are unable to state whether any material discrepancies were noticed.

(c) According to the information and explanation given to us and based on the documents and records produced before us, the title deeds of immovable properties are held in the name of the company.

2. (a) The Management has conducted physical verification of inventory (excluding stocks lying with third parties) at reasonable intervals. In respect of inventory lying with third parties, these have substantially been confirmed by them.

(b) The discrepancies noticed on verification between physical stock and book records were not material in relation to the operations of the Company and the same have been properly dealt with in the books of account.

3. The Company has granted unsecured loans / deposits to two companies and an interest free shareholders'' deposit to a jointly controlled entity covered in the register maintained under section 189 of the Companies Act.

(a) The terms and conditions of the grant of such loans are not prima facie prejudicial to the Company''s interest;

(b) The principal amount and interest on the loans / deposits have been repaid regularly, as stipulated, the shareholder''s deposit is free of interest and repayment thereof was due on 31st December, 2015.

(c) The shareholder''s deposit is overdue for more than ninety days, the Company has made adequate provision against the same and has also made an application to Reserve Bank of India for further extension of five years which is pending.

No.

Name of the statute

Nature of dues

Amount (Rs, in crores)

Period to which the amount relates

Forum where dispute is pending

1

Sales Tax and Value Added Tax

Sales tax

0.09

1999-2000

Deputy Commissioner Appeal - II

MVAT

0.38

2008-09

Maharashtra Sales Tax Tribunal

CST

1.80

2008-09

Maharashtra Sales Tax Tribunal

CST

1.52

2009-10

Department of Trade and Taxes, New Delhi

CST

2.74

2011-12

Department of Trade and Taxes, New Delhi

CST

0.50

2012-13

Joint Commissioner of Sales Tax, Mumbai

4. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act in respect of grant of loans, making investments and providing guarantees and securities, as applicable.

5. In our opinion and according to the information and explanations given to us, the Company has complied with directives issued by Reserve Bank of India and the provision of sections 73 to 76 or any other applicable provisions of the Act and the Companies (Acceptance of Deposits) Rules, 2014 with regard to the deposits accepted from the public. According to the information and explanations given to us, no order has been passed by the Company Law Board or the National Company Law Tribunal or the Reserve Bank of India or any Court or any other Tribunal.

6. We have broadly reviewed the books of accounts and records maintained by the Company in respect of manufacture of products covered under the Rules made by the Central Government for maintenance of cost records, under section 148 (1) of the Companies Act, and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete.

7. (a) According to the information and explanation given

to us and the records examined by us, the Company is generally regular in depositing undisputed statutory dues, including dues pertaining to provident fund, employees'' state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues with the appropriate authorities. According to the information and explanations given to us, there are no undisputed dues which have remained outstanding as at the end of the financial year, for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us, there are no dues of sales tax, income tax, custom duty, service tax, excise duty or cess which have not been deposited on account of any dispute, except as stated below:

8. In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of loans or borrowing to financial institutions, banks or government, the Company has not issued any debentures.

No.

Name of the statute

Nature of dues

Amount (Rs, in crores)

Period to which the amount relates

Forum where dispute is pending

2

Income Tax Act, 1961

Income tax

0.09

2006-07

IncomeTax Appellate Tribunal

Income tax

0.03

2007-08

Deputy Commissioner oflncome Tax- TDS, Mumbai

Income tax

0.15

2007-08

IncomeTax Appellate Tribunal

Income tax

0.02

2008-09

Deputy Commissioner oflncome Tax- TDS, Mumbai

Income tax

0.43

2008-09

IncomeTax Appellate Tribunal

Income tax

1.86

2009-10

IncomeTax Appellate Tribunal

Income tax

0.36

2010-11

IncomeTax Appellate Tribunal

Income tax

0.13

2011-12

Commissioner oflncome Tax (Appeal)

Income tax

1.07

2012-13

Commissioner oflncome Tax (Appeal)

Income tax

0.96

2013-14

Commissioner oflncome Tax (Appeal)

3

the Customs Act, 1962

Interest on customs duty

0.95

1995-2012

Commissioners ofCustoms (Appeals), Mumbai

4

the Central Excise Act, 1944

Excise Duty

0.16

1989-90 to 1995-96

Commissioners of Central Excise (Appeals), Mumbai

Excise Duty

0.62

1995-96 to 1996-97

Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai

Excise Duty

0.03

1997-1998

Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai

Service Tax

0.76

2003-04 to 2005-06

Commissioner ofServiceTax, Mumbai Tribunal

Interest on excise duty

0.20

2002-2006

Bombay High Court

5

Municipal Corporation ofGreaterMumbai Octroi Rules, 1965

Octroi

2.16

2007-2008

Deputy Assessor & Collector (Octroi)

9. The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments), the monies raised by way of term loans were applied for the purposes for which those were raised.

10. Based upon the audit procedures performed by us, to the best of our knowledge and belief and according to the information and explanations given to us by the Management, no fraud by the Company or fraud on the Company by its officers or employee has been noticed or reported during the year.

11. According to the information and explanations given to us and based on our examination of the records of the Company, the managerial remuneration paid or provided to the Managing Director is in excess of the limits prescribed under Section 197 read with Schedule V of the Act by Rs, 4.29 crore, due to inadequacy of profits, the Company has received an approval from the Central Government dated June 21, 2017, for payment of remuneration amounting to Rs, 2.12 crore only, “the Company is proposing to make a representation to the Central Government with a request to reconsider the amount approved. Pending such representation, no adjustments have been made in the accounts for the year ended March 31, 2017 and the excess amount is held by the Managing Director in trust for the Company.

12. In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company.

13. According to the information and explanations given to us and based on the documents and records produced before us, the transactions with related parties are in compliance with section 177 and 188 of the Act and the details thereof have been disclosed in the Financial Statements as required by the applicable accounting standards.

14. According to the information and explanations given to us and based on the documents and records produced before us, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, the provisions of Clause (xiv) of the order are not applicable.

15. According to the information and explanations given to us and based on the documents and records produced before us, the Company has not has entered into any non-cash transactions with directors or persons connected with them.

16. According to the information and explanations given to us and based on the documents and records produced before us, the Company is not required to be registered under section 45- IA of the Reserve Bank of India Act, 1934.

the Annexure referred to in Para 2 (f) Report on Other Legal and Regulatory Requirements'' of our Independent Auditors'' Report to the members of the Company on the financial statements for the year ended March 31, 2017:

Report on the Internal Financial Controls under Clause (i) of Subsection 3 of Section 143 of the Companies Act, 2013 (the Act”)

We have audited the internal financial controls over financial reporting of THE BOMBAY DYEING AND MANUFACTURING COMPANY LIMITED (the Company) as at March 31, 2017 in conjunction with our audit of the financial statements of the Company for the year ended on that date.

Management''s Responsibility for Internal Financial Controls

the Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (‘ICAI''). friese responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.

Auditors'' Responsibility

Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the “Guidance Note) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Act, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India, ffiose Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, 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.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2017, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India.

For KALYANIWALLA & MISTRY LLP

Chartered Accountants

Firm Registration No. 104607W/W100166

DARAIUS Z. FRASER

Place: Mumbai Partner

Date: 28th June, 2017 Membership No.: 42454

Source : Dion Global Solutions Limited
Quick Links for bombaydyeingmanufacturingcompany
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.