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Bombay Dyeing and Manufacturing Company Ltd.

BSE: 500020 | NSE: BOMDYEING |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE032A01023 | SECTOR: Textiles - Processing

BSE Live

Apr 07, 16:00
50.25 3.60 (7.72%)
Volume
AVERAGE VOLUME
5-Day
165,460
10-Day
188,992
30-Day
239,548
209,233
  • Prev. Close

    46.65

  • Open Price

    47.85

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    0.00 (0)

NSE Live

Apr 07, 15:58
50.30 3.70 (7.94%)
Volume
AVERAGE VOLUME
5-Day
1,046,589
10-Day
1,116,826
30-Day
1,401,050
1,765,794
  • Prev. Close

    46.60

  • Open Price

    48.40

  • Bid Price (Qty.)

    50.30 (102)

  • Offer Price (Qty.)

    0.00 (0)

Annual Report

For Year :
2018 2017 2016 2015 2014 2013 2012 2011 2010

Auditor's Report

1) We have audited the attached Balance Sheet of The Bombay Dyeing and Manufacturing Company Limited as at March 31, 2009 and also the Profit and Loss Account and Cash Flow Statement of the Company for the year ended on that date, both annexed thereto. These financial statements are the responsibility of the Corripanys management. Our responsibility is to express an opinion on these financial statements based on our audit. 2) We conducted our audit in accordance with auditing standards generally accepted in India. These Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 3) As required by the Companies (Auditors Report) Order, 2003, issued by the Central Government of India in terms of section 227 (4A) of the Companies Act, 1956, we annex hereto a statement on the matters specified in paragraphs 4 and 5 of the said Order. 4) Without qualifying our report, we draw attention to the following: i) Note 9 of Schedule 19 Notes to Accounts, regarding the sale of a portion of the commercial building under construction to its wholly owned subsidiary and recognition of revenue there against of Rs. 235.02 crore (including revenue from the undivided interest in the underlying freehold land therein amounting to Rs. 193.34 crore) in the Profit and Loss Account. Attention is also drawn to the exclusion of the said subsidiary from consolidation, based on managements representation that control over it is temporary, i.e. being held exclusively with a view to its subsequent divestment in the near future. ii) Note 19 (iii) of Schedule 19 Notes to Accounts, regarding the adoption of the principles of hedge accounting enunciated in Accounting Standard (AS) 30 - Financial Instruments Recognition and Measurement with effect from April 1, 2008, in respect of derivative transactions entered into to hedge currency risk. Accordingly, the unrealized losses amounting to Rs. 37.69 crore on such derivative transactions which qualify as effective hedges have been recorded in the Hedging Reserve account. The loss for the year is lower to that extent. 5) Further to our comments in the Annexure referred to in paragraph (3) above, we report that: a) We have 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 appears from our examination of those books; c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account; d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956; e) In our opinion and to the best of our information and according to the explanations given to us, the said accounts read with the n^es thereon, give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: i) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2009; ii) in the case of the Profit and Loss Account, of the loss of the Company for the year ended on that date; and iii) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date. 6) On the basis of written representations received from the Directors of the Company as on March 31, 2009, and taken on record by the Board of Directors, we report that none of the Directors of the Company is disqualified as on March 31, 2009, 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 AUDITORS REPORT Annexure to the report of the Auditors to the members of The Bombay Dyeing and Manufacturing Company Limited on the accounts for the year ended March 31, 2009 (referred to in paragraph 3 of our report of even date) 1. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets up to the previous year. The particulars of additions during the year are in the process of being updated. (b) A major portion of the assets has been physically verified by the management during the year, which is in our opinion is reasonable, having regard to the size of the Company and the nature of its assets. The reconciliation between the book records and physical inventory of assets verified is still in progress, in view of which, we are unable to report on the discrepancies, if any. (c) The fixed assets disposed off during the year are not substantial and therefore do not affect the going concern assumption. 2. (a) The inventory has been physically verified by the management during the year. In our opinion, the frequency of verification is reasonable. (b) The procedures of physical verification of inventories followed by the management are generally reasonable and adequate in relation to the size of the Company and nature of its business. (c) The Company is generally maintaining proper records of inventory. 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. (a) The Company had given unsecured loans to two companies covered in the register maintained under section 301 of the Companies Act, 1956. The maximum principal amount involved during the year is Rs. 7.5 crore. Of the said loans, one loan amounting to Rs.3.5 crore which was provided for in earlier years, has been written off and the year-end balance of the other loan is Rs. 0.5 crore. The company has also placed an interest free shareholders deposit of Rs.15.22 crore with a joint venture company, as stated in Note 12 of Schedule 19. (b) In our opinion and according to the information and explanation given to us, the rate of interest and other terms and conditions on which the loans have been granted to companies listed in the register maintained under section 301 of the Companies Act, 1956 were not prima facie prejudicial to the interest of the company, at the time when loans were granted. (c) As explained to us, in respect of one of the companies, the amount of Rs 3.5 crore has not been recovered and has been written off during the year and the other company has been regular in payment of interest, where the principle amount of Rs 0.5 crore is repayable on call. (d) According to the information and explanation given to us, except for the loan of Rs. 3.5 crores referred in paragraph 3 (c) above, which has been written off during the year, there is no overdue amount for more than rupees one lakh. (e) According to the information and explanation given to us, the Company has not taken any loans, secured or unsecured, from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956. In view of the foregoing, the question of reporting on clauses 4 (iii) (f) and 4 (iii) (g) of the said Order does arise. 4. In our opinion and according to the information and explanations given to us, the Company has internal control procedures which are generally adequate, commensurate with the size of the Company and nature of its business, with regard to purchases of inventory, fixed assets, and for the sale of goods and services, however the Company is implementing steps for further strengthening of the same. Further, on the basis of our examination of the books and records and the information and explanations given to us, we have not come across any continuing failure to correct major weakness in the internal control system. 5. (a) According to the information and explanations given to us, we are of the opinion that the particulars of contracts or arrangements that need to be entered into the register maintained under section 301 of the Companies Act, 1956 have generally been so entered. (b) According to the information and explanation given to us, transactions in pursuance of such contracts or arrangements entered into the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of rupees five lakhs in respect of any party have been made at prices which are reasonable having regard to the prevailing market prices or at prices for which similar transactions have been made with other parties, except for the transactions where a comparison of prices could not be made since there was no similar transactions with other parties or transactions of a special nature where comparable alternative quotation were not available. 6. In our opinion and according to the information and explanations given to us, the Company has complied with the provision of sections 58A, 58AA or any other applicable provisions of the Companies Act,1956 and the Companies (Acceptance of Deposits) Rules, 1975 with regard to the deposits accepted from the public. No order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal. 7. In our opinion, the Company has an internal audit system, commensurate with the size and nature of its business. 8. We have broadly reviewed, without carrying out a detailed examination, the books of accounts maintained by the company pursuant to the Notification issued /order made by the Central Government for the maintenance of cost records under section 209(1) (d) of the Companies Act, 1956 in respect of Textile division of the Company and are of the opinion that prima facie the prescribed records have been maintained and the prescribed accounts are in the process of being made up. 9. (a) According to the records of the Company, undisputed statutory dues including Provident fund, Investor Education and Protection Fund, Employees State Insurance, Income tax, Sales tax, Wealth tax, Service tax, Excise duty, Customs duty, Cess, and other material statutory dues applicable to it have been regularly deposited with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts were in arrears, as on 31s1 March 2009 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, Wealth tax, Service tax, Excise duty or cess which have not been deposited on account of any dispute, except as stated below : No. Name of the statute Nature of Dues Amount (Rs. in crores) 1 The Income Tax Act, 1961 Tax deducted at 2.64 source 2 The Wealth Tax Act, 1957 Wealth Tax 023 3 The Customs Act, 1962 Customs Duty 0.64 Customs Duty 0.25 Customs Duty 0.13 4 The Central Excise Act, Excise Duty 0.31 1944 Excise Duty 0.16 Excise Duty 0.25 Excise Duty 0.68 Excise Duty 0.08 Excise duty 0.01 Period to which the Forum where dispute is pending amount relates A.Y. 1995-96 Income Tax Appellate Tribunal, Mumbai A.Y. 1993-94 to A.Y. Income Tax Appellate Tribunal, 1998-99 Mumbai 1989 Deputy Commissioner of Customs, Nhava Sheva 1997 Commissioner of Customs(Appeals), Mumbai 1992-93 Commissioner of Customs Bond Department, Mumbai 1985-86 to 2003-04 Customs, Excise and Service Tax Appellate Tribunal(CESTAT), Mumbai 1989-90 to 1995-96 Commissioners of Central Excise, Mumbai 1998-99 High Court, Mumbai 1997-98 to 2000-01 Customs, Excise and Service Tax Appellate Tribunal(CESTAT), Mumbai 1999-00 to 2000-01 Customs, Excise and Service Tax Appellate Tribunal(CESTAT), Mumbai 2005-06 Assistant Commissioner of Customs, Mumbai 10. The Company does not have any accumulated losses at the end of the financial year. The company has incurred a cash loss of Rs. 138.89 crore during the financial year covered by our audit but not in the immediately preceding financial year. 11. In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to banks, financial institution or debenture holders. 12. In our opinion and according to the information and explanations given to us, the Company has maintained adequate records where the company has granted loans and advances on the basis of security by way of pledge of shares. 13. The company is not a chit fund or a nidhi/ mutual benefit fund/ society. Therefore, the provision of clause 4 (xiii) of the said Order are not applicable to the Company. 14. According to the information and explanations given to us, proper records have been maintained of the transactions and contracts and timely entries have been made therein where the Company is dealing or trading in shares, securities, debentures and other investments and such securities are held by the Company in its own name except to the extent of the exemption granted under section 49 of the Companies Act, 1956. 15. In our opinion and according to the information and explanations given to us, the terms and conditions on which the Company has given any guarantees for loans taken by others from banks or financial institutions are not prima facie prejudicial to the interest of the Company. 16. In our opinion and according to the information and explanations given to us, the term loans have/are being applied for the purpose for which they were obtained. 17. In our opinion and according to the information and explanations given to us and on an overall examination of the balance sheet of the Company, in our opinion, no funds raised on short term basis have been used for long term investment. 18. The Company has not made any preferential allotment of shares to parties and companies covered in the Register maintained under section 301 of the Companies Act, 1956. 19. According to the information and explanation given to us, the Company had issued debentures aggregating Rs. 30 crore during the previous year, which have been repaid during the year; however no securities or charge was created in respect of the same. 20. The Company has not raised any money by public issues during the year. Accordingly, the question of disclosure of end use of such monies does not arise. 21. Based on the audit procedures performed and information and explanations given by the management, we report that the Company has based on certain acts of omission and commission detected, filed suits against an Executive Director of the Company in the High Court of Judicature at Mumbai and the matter is subjudice. Other than this no fraud on or by the Company has been noticed or reported during the year. For and on behalf of Kalyaniwalla & Mistry Chartered Accountants Viraf R. Mehta Partner Membership No: 32083 Place: Mumbai Date: June 30, 2009