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Bombay Rayon Fashions Ltd.

BSE: 532678 Sector: Industrials
NSE: BRFL ISIN Code: INE589G01011
BSE LIVE 15:40 | 02 Dec 141.90 2.90
(2.09%)
OPEN

134.05

HIGH

144.45

LOW

134.05

NSE LIVE 15:31 | 02 Dec 140.50 2.40
(1.74%)
OPEN

139.00

HIGH

144.00

LOW

135.20

OPEN 134.05
PREVIOUS CLOSE 139.00
VOLUME 1440
52-Week high 198.00
52-Week low 129.00
P/E 60.38
Mkt Cap.(Rs cr) 2596.77
Buy Price 0.00
Buy Qty 0.00
Sell Price 141.50
Sell Qty 95.00
OPEN 134.05
CLOSE 139.00
VOLUME 1440
52-Week high 198.00
52-Week low 129.00
P/E 60.38
Mkt Cap.(Rs cr) 2596.77
Buy Price 0.00
Buy Qty 0.00
Sell Price 141.50
Sell Qty 95.00

Bombay Rayon Fashions Ltd. (BRFL) - Auditors Report

Company auditors report

To

The Members of

Bombay Rayon Fashions Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Bombay RayonFashions Limited ("the Company") which comprises the Balance Sheet as atMarch 31 2016 the Statement of Profit and Loss and Cash Flow Statement for the year thenended 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 Section134 (5) of the Companies Act 2013 (" the Act") with respect to the preparationof these standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance withaccounting principles generally accepted in India including the Accounting Standardsspecified under section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the act for safeguarding of the assets of the companyfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; Making judgments and estimates that are reasonable andprudent; and the design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatementswhether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the rules made there under. We conducted our audit inaccordance with the Standards on Auditing issued by the Institute of Chartered Accountantsof India as specified under section 143(10) of the Act. Those Standards require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the standalone financial statements that give a true and fair view in orderto design audit procedures that are appropriate in the circumstances but not for thepurpose of expressing an opinion on whether the company has in place an adequate internalfinancial system over financial reporting and the operating effectiveness of suchcontrols. An audit also includes evaluating the appropriateness of accounting policiesused and the reasonableness of the accounting estimates made by the company’sDirectors as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India:

(a) In the case of the Balance Sheet of the state of affairs of the Company as atMarch 31 2016;

(b) In the case of statement of Profit and Loss of the Profit for the yearended on that date; and

(c) In the case of the Cash Flow Statement of the cash flows for the year ended onthat date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the Annexure 1 a statement on the matters specified inparagraphs 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 bestof 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 theCompany so far as it appears from our examination of those books;

c) The Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account;

d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under section 133 of the Act read with rule 7 of theCompanies (Accounts) rules2014;

e) On the basis of written representations received from the directors as on March 312016 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2016 from being appointed as a director in terms of section 164(2) of theAct;

f) With respect to the other matters to be included in the Auditor’s Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules2014 in our opinionand 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 financialposition in its financial statements. – Refer note 35 to the financial statements;

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

iii) The amount that were required to be transferred to the Investor Education andProtection Fund by the company have been accordingly transferred.

FOR V.K. BESWAL & ASSOCIATES
CHARTERED ACCOUNTANTS
FIRM REGISTRATION NO.101083W
CA K.V. BESWAL
Place: Mumbai PARTNER
Date: 20/05/2016 MEMBERSHIP NO.131054

1. In respect of Fixed Assets:

a. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b. The fixed assets have been physically verified by the management at reasonableintervals during the year. We are informed that no material discrepancies were noticed bythe management on such verification.

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

2. In respect of Inventories:

As explained to us physical verification of inventory has been conducted during theyear at reasonable intervals by the management and in our opinion and according to theinformation and explanation given to us the Company is maintaining proper records of itsinventories and no material discrepancies were noticed on physical verification.

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

a. During the year Company has granted interest free advances to a Subsidiary companycovered 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 of5 to 7 years.

c. In respect of the said Loan there are no overdue amounts.

4. The Company has complied with the provisions of section 185 and 186 of the CompaniesAct 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 anymeans 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 thatin pursuant to the prescribed rules by Central Government the Company had maintained costrecords u/s. 148(1) (d) of the Companies Act 2013 however we have not done a detailedexamination of the same.

7. In respect of Statutory Dues:

(a) According to record of the Company produced before us the Company has not beenregular in depositing the undisputed statutory dues and there have been delays indepositing undisputed statutory dues with the appropriate authorities. According to theinformation and explanations given no undisputed amounts payable in respect of sales taxcustoms duty excise duty/cess were outstanding as at 31.03.2016 for a period of more thansix 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 31stMarch 2016:

Sr. No Nature of Dues Amount
1. Provident Fund 14.03
2. Employee State Insurance Contribution 0.96
3. Profession Tax 0.86
4. Tax Collected at Source 0.001
5. Property Tax 2.42
6. Service Tax 0.39
7. Tax Deducted at Source 2.48
Total 21.14

Outstanding Interest amount on the above dues (S. No 6 and 7) as on 31st March 2016 isRs. 0.15Crore.

(b) According to the records of the company there are no dues of Income-Tax sales taxwealth tax service tax customs duty excise duty/cess which have not been deposited onaccount of any dispute except as given below.

Nature of the Act Amount Period to which the amount relates Forum where disputeis pending
Employees Provident Funds and Miscellaneous Provision Act 1952 6.54 2000-01 to 2015-16 Employees Provident Funds Appellate.Tribunal.New Delhi
Employee State Insurance Contribution 2.44 2011-12 to 2015-16 ESI.Court.Banglore
Income Tax Act1961 0.82 AY 2009-10 ITAT Mumbai
Income Tax Act1961 1.22 AY 2010-11 ITAT Mumbai
Income Tax Act1961 0.02 AY 2011-12 CIT (A)-54 Mumbai
Income Tax Act1961 0.38 AY 2012-13 CIT (A)-54 Mumbai
Income Tax Act1961 46.11 AY 2013-14 CIT(A)-54Mumbai
Total 57.03

8. In our opinion and according to the information and explanations given to us therehave been delay in repayment of dues to financial institutes and banks during the year Ason date the amount due and remaining unpaid on account of principal and interest tolenders is given below:

Particulars Overdue in Principal Overdue in Interest Total Overdue
Upto 30 days 32.84 25.48 58.32
From 31 days To 60 days 3.42 21.28 24.70
From 61 days To 90 days 2.81 10.97 13.78
Above 91 days 1.84 2.58 4.42
Total 40.91 60.31 101.22

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

10. Based upon the audit procedures performed and information and explanations given bythe management we report that no fraud on or by the Company has been noticed or reportedduring the course of our audit.

11. According to the provisions of section 197 read with Schedule V to the CompaniesAct 2013 the Company has paid Managerial remuneration during the year.

12. In our opinion and to the best of our information and according to the explanationsprovided 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 theFinancial Statements during the year and the transactions are in compliance with sections177 and 188 of Companies Act 2013.

14. During the year under consideration the company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures hencecomments under this clause are not called for.

15. According to the provisions of section 192 of Companies Act 2013 the company hasnot entered into any non-cash transactions with directors or persons connected with himduring 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 ReserveBank of India Act 1934 hence this clause is not applicable and no comments under thisclause are called for.

FOR V.K. BESWAL & ASSOCIATES
CHARTERED ACCOUNTANTS
FIRM REGISTRATION NO.101083W
CA K.V. BESWAL
Place: Mumbai PARTNER
Date: 20/05/2016 MEMBERSHIP NO.131054

Annexure II

Independent Auditor’s report on the Internal Financial Controls under Clause (i)of Sub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

1. In conjunction with our audit of the standalone financial statements of BombayRayon Fashions Limited ("the Company") as of and for the year ended 31 March2016 we have audited the internal financial controls over financial reporting (IFCoFR) ofthe company of as of that date.

Management’s Responsibility for Internal Financial Controls

2. The Company’s Board of Directors is responsible for establishing andmaintaining internal financial controls based on the criteria being specified bymanagement. These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of the company’s business including adherence tocompany’s policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.

Auditors’ Responsibility

3. Our responsibility is to express an opinion on the Company’s IFCoFR based onour audit. We conducted our audit in accordance with the Standards on Auditing issued bythe Institute of Chartered Accountants of India (ICAI) and deemed to be prescribed undersection 143(10) of the Act to the extent applicable to an audit of IFCoFR and theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting (the"Guidance Note") issued by the ICAI. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate IFCoFR were established and maintained and ifsuch controls operated effectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the IFCoFR and their operating effectiveness. Our audit of IFCoFR included obtaining anunderstanding of IFCoFR assessing the risk that a material weakness exists and testingand evaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor’s judgement includingthe assessment of the risks of material misstatement of the financial statements whetherdue to fraud or error.

5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company’s IFCoFR.

Meaning of Internal Financial Controls over Financial Reporting

6. A company’s IFCoFR is a process designed to provide reasonable assuranceregarding the reliability of financial reporting and the preparation of financialstatements for external purposes in accordance with generally accepted accountingprinciples. A company’s IFCoFR includes those policies and procedures that (1)pertain to the maintenance of records that in reasonable detail accurately and fairlyreflect the transactions and dispositions of the assets of the company; (2)providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company’s assets that could have a material effect on thefinancial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

7. Because of the inherent limitations of IFCoFR including the possibility ofcollusion or improper management override of controls material misstatements due to erroror fraud may occur and not be detected. Also projections of any evaluation of the IFCoFRto future periods are subject to the risk that IFCoFR may become inadequate because ofchanges in conditions or that the degree of compliance with the policies or proceduresmay deteriorate.

Opinion

8. In our opinion the Company has in all material respects adequate internalfinancial controls over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at 31 March 2016 based on the criteriabeing specified by management.

FOR V.K. BESWAL & ASSOCIATES
CHARTERED ACCOUNTANTS
FIRM REGISTRATION NO.101083W
CA K.V. BESWAL
Place: Mumbai PARTNER
Date: 20/05/2016 MEMBERSHIP NO.131054

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