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R&B Denims Ltd.

BSE: 538119 Sector: Industrials
NSE: N.A. ISIN Code: INE012Q01013
BSE 00:00 | 20 Oct 168.20 3.40
(2.06%)
OPEN

171.00

HIGH

171.00

LOW

164.00

NSE 05:30 | 01 Jan R&B Denims Ltd
OPEN 171.00
PREVIOUS CLOSE 164.80
VOLUME 15270
52-Week high 171.00
52-Week low 25.20
P/E 17.30
Mkt Cap.(Rs cr) 235
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 171.00
CLOSE 164.80
VOLUME 15270
52-Week high 171.00
52-Week low 25.20
P/E 17.30
Mkt Cap.(Rs cr) 235
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

R&B Denims Ltd. (RBDENIMS) - Auditors Report

Company auditors report

TO THE MEMBERS OF R & B DENIMS LIMITED

REPORT ON THE STANDALONE FINANCIAL STATEMENTS

Opinion

I have audited the financial statements of R & B Denims Limited(the Company) which comprise the balance sheet as at March 31 2020 and the Profit andLoss Account (and the cash flow statement) for the year then ended and notes to thefinancial statements including a summary of significant accounting policies.

In my opinion and to the best of my information and according to theexplanation given to me the aforesaid standalone financial statements of the Company givethe information required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under section 133 of the Act read with Companies(Indian AccountingStandards)Rules 2015 as amended and other accounting principles generally accepted inIndia of the state of affairs of the Company as at March 31 2020 and the profit andloss comprehensive income changes in equity and its cash flows for the year ended onthat date.

Basis for Opinion

I conducted audit of the standalone financial statements in accordancewith the Standards on Auditing specified under section 143(10) of the Act (SAs). Myresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Financial Statements section of myreport. I am independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India (ICAI) together with the independencerequirements that are relevant to my audit of the standalone financial statements underthe provisions of the Act and the Rules made thereunder and I have fulfilled my otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. I believe that the audit evidence I have obtained is sufficient and appropriate toprovide a basis for my audit opinion on the standalone financial statements.

Management's Responsibility for the Standalone Ind AS FinancialStatements

The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Act with respect to the preparation of these standalonefinancial statements that give a true and fair view of the financial position financialperformance total comprehensive income changes in equity and cash flows of the Companyin accordance with the Ind AS and other accounting principles generally accepted in India.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the standalone financial statements management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

The Board of Directors are responsible for overseeing theCompany's financial reporting process.

Auditor's Responsibility

My objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes my opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs I exercise professionaljudgment and maintain professional skepticism throughout the audit. I also:

Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for my opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

Obtain an understanding of internal financial controls relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Companies Act 2013 I am also responsible for expressing ouropinion on whether the Company has adequate internal financial controls system in placeand the operating effectiveness of such controls.

Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.

Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If I conclude that a materialuncertainty exists I am required to draw attention in my auditor's report to therelated disclosures in the standalone financial statements or if such disclosures areinadequate to modify my opinion. My conclusions are based on the audit evidence obtainedup to the date of my auditor's report. However future events or conditions may causethe Company to cease to continue as a going concern.

Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

I communicate with those charged with governance regarding among othermatters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

I also provide those charged with governance with a statement that Ihave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on my independence and where applicable related safeguards.

I have determined that there are no key audit matters to communicate inour report.

Report On Other Legal and Regulatory Requirements

1. As required by the Companies(Auditor's Report) Order2016 ("the Order") issued by the Central Government of India in terms ofsub-section (11) of Section 143 of Companies Act 2013 I give in the Annexure A astatement on the matters specified in paragraphs 3 and 4 of the Order to the extentapplicable.

2. As required by Section 143(3) of the Act I report that:

a. I have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit;

b. In my opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books;

c. The Balance Sheet the Statement of Profit and Loss including OtherComprehensive Income Statement of Changes in Equity and the Statement of Cash Flow dealtwith by this Report are in agreement with the relevant books of account.

d. In my opinion the aforesaid standalone financial statements complywith the Accounting Standards specified under Section 133 of the Act read with Rule 7 ofthe Companies (Accounts) Rules 2014.

e. On the basis of the written representations received from thedirectors as on 31st March 2020 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2020 from being appointed as a director interms of Section 164(2) of the Act.

f. With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto my separate Report in "Annexure B".

g. With respect to the other matters to be included in theAuditor's Report in accordance with the requirements of section 197(16) of the Actas amended:

In our opinion and to the best of our information and according to theexplanations given to us the remuneration paid by the Company to its directors during theyear is in accordance with the provisions of section 197 of the Act.

h. With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 as amended in my opinion and to the best of my information and according tothe explanations given to me:

1. The Company has disclosed the impact of pending litigationson its financial position in its standalone Ind AS financial statements. Refer note 26– Contingent liabilities to the standalone Ind AS financial statements.

2. The Company has made provision as required under theapplicable law or accounting standards for material foreseeable losses if any onlong-term contracts including derivative contracts.

For PRADEEP K. SINGHI & ASSOCIATES
Place: SURAT Chartered Accountants
Date: 12/08/2020 FRN: 126027W
Sd/-
(PRADEEP KUMAR SINGHI)
Partner
Membership No. 200/24612
UDIN: 20024612AAAACC7682

Annexure ‘A' to the Independent Auditor's Report

In respect of the Annexure referred to in paragraph 1 of our report tothe Members of R & B Denims Ltd ("the company") for the year ended March 312020 we report on following matters:

SR. NO. PARTICULARS AUDITOR'S REMARK
(i) (a) Whether the company is maintaining proper records showing full particulars including quantitative details and situation of fixed assets; Yes. Company is maintaining proper records of fixed assets. Yes fixed assets have been physically verified at regular intervals. No material discrepancies have been noticed on such verification.
(b) Whether these fixed assets have been physically verified by the management at reasonable intervals; whether any material discrepancies were noticed on such verification and if so whether the same have been properly dealt with in the books of account; Yes But Factory Land is in possession under long term lease deed. Yes physical verification of inventory has been conducted at reasonable intervals by the management. No material discrepancies were noticed. No loans have been granted to the companies firms or other parties covered by clause (76) of Section 2 of the Companies Act 2013 during the period under audit.
(c) Whether title deeds of immovable properties are held in the name of the company. If not provide details thereof.
(ii) (a) Whether physical verification of inventory has been conducted at reasonable intervals by the management and whether any material discrepancies were noticed and if so how they have been dealt with in the books of account.
(iii) Whether the company has granted any loans secured or unsecured to companies firms or other parties covered by clause (76) of Section 2 of the Companies Act 2013. If so
(a) Whether the terms and conditions of the grant of such loans are not prejudicial to the company's interest Not Applicable
(b) Whether receipt of the principal amount and interest are regular. If not provide details thereof; and Not Applicable
(c) If amount is overdue state total amount overdue state total amount overdue for more than 90 days and whether reasonable steps have been taken by the company for recovery of the principal and interest; Not Applicable
(iv) In respect of loans investments and guarantees whether provisions of Section 185 and 186 of the Companies Act 2013 have been complied with. If not provide details thereof Yes all the compliances have been followed by the company.
(v) In case the company has accepted deposits whether the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act 2013 and the rules framed thereunder where applicable have been complied with? If not the nature of such contraventions be stated; If an order has been passed by Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other tribunal whether the same has been complied with or not? No the company has not accepted any deposits. Directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act and the rules framed there under have been complied.
(vi) Where maintenance of cost records has been specified by the Central Government under sub-section (1) of section 148 of the Companies Act 2013 and whether such accounts and records have been made and maintained; Yes maintained.
(vii) (a) Whether the company is regular in depositing undisputed statutory dues including provident fund employees' state insurance income-tax sales-Lax service tax duty of customs duty of excise value added tax and any other statutory dues with the appropriate authorities and if not the extent of the arrears of outstanding statutory dues as at the last day of the financial year concerned for a period of more than six months from the date they became payable shall be indicated by the auditor. Yes the company is regular.
(b) Where dues of income tax or sales tax or service tax or duty of customs or duty of excise or value added tax have not been deposited on account of any dispute then the amounts involved and the forum where dispute is pending shall be mentioned. (A mere representation to the concerned Department shall not be treated as a dispute). Appeal is pending before Commissioner of Appeals for F.Y. 2012-13 for tax demand of Rs. 6030620/-for F.Y. 2013-14 for tax demand of Rs. 15975700/- and for
F.Y. 2015-16 for tax demand of Rs. 42143442/-. However for all these three cases assesse has applied in Vivaad se Vishwas Scheme.
Appeal with CESTAT is pending for levy of Custom Duty for Rs. 193179/- for import of Coal.
(viii) Whether the company has defaulted in repayment of dues to a financial institution or bank or debenture holders? If yes the period and amount of default to be reported (in case of banks and financial institutions lender wise details to be provided). No default has been made in repayment of dues.
(ix) Whether moneys raised by way of public issue/ follow-on offer (including debt instruments) and term loans were applied for the purposes for which those are raised. If not the details together with delays / default and subsequent rectification if any as may be applicable be reported; No Money has been raised by way of Public issue/ follow-on offer during the period.
Term Loan has been made by the Bank directly to the vendors. And there is no delay or default.
(x) Whether any fraud by the company or any fraud on the Company by its officers/ employees has been noticed or reported during the year; if yes the nature and the amount involved be indicated No.
Not Applicable
(xi) Whether managerial remuneration has been paid / provided in accordance with the requisite approvals mandated by the provisions of section 197 read with schedule V to the Companies Act? If not state the amount involved and steps taken by the company for securing refund of the same. Yes. Managerial Remuneration has been paid / provided in accordance with provisions of section 197 and under other rules.
(xii) Whether the Nidhi Company has complied with the Net Owned Fund in the ratio of 1: 20 to meet out the liability and whether the Nidhi Company is maintaining 10% liquid assets to meet out the unencumbered liability. Not Applicable
(xiii) Whether all transactions with the related parties are in compliance with Section 188 and 177 of Companies Act 2013 where applicable and the details have been disclosed in the Financial Statements etc. as required by the accounting standards and Companies Act 2013. Yes.
(xiv) Whether the company has made any preferential allotment / private placement of shares or fully or partly convertible debentures during the year under review and if so as to whether the requirement of Section 42 of the Companies Act 2013 have been complied and the amount raised have been used for the purposes for which the funds were raised. If not provide details thereof. During the period under consideration no such allotment / placement has been made.
(xv) Whether the company has entered into any non-cash transactions with directors or persons connected with him and if so whether provisions of Section 192 of Companies Act 2013 have been complied with. No.
(xvi) Whether the company is required to be registered under Section 45 IA of Reserve Bank of India Act 1934 and if so whether the registration has been obtained. Not Applicable

 

For PRADEEP K. SINGHI & ASSOCIATES
Place: SURAT Chartered Accountants
Date: 12/08/2020 FRN: 126027W
Sd/-
(PRADEEP KUMAR SINGHI)
Partner
Membership No. 200/24612
UDIN: 20024612AAAACC7682

Annexure ‘B' to the Independent Auditor's Report

Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

I have audited the internal financial controls over financial reportingof R & B Denims Limited ("the Company") as of 31 March 2020 in conjunctionwith my audit of the standalone Ind AS financial statements of the Company for the yearended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") issued by the Institute of CharteredAccountants of India. These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its 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 Companies Act 2013.

Auditors' Responsibility

My responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting based on my audit. I conducted myaudit in accordance with the Guidance Note and the Standards on Auditing prescribed underSection 143(10) of the Companies Act 2013 to the extent applicable to an audit ofinternal financial controls. Those Standards and the Guidance Note require that I complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

My audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. My audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the standalone Ind AS financial statements whether dueto fraud or error.

I believe that the audit evidence I have obtained is sufficient andappropriate to provide a basis for my audit opinion on the Company's internalfinancial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

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

Inherent Limitations of Internal Financial Controls over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In my opinion to the best of my information and according to theexplanations given to me the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2020based on the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note.

For PRADEEP K. SINGHI & ASSOCIATES
Place: SURAT Chartered Accountants
Date: 12/08/2020 FRN: 126027W
Sd/-
(PRADEEP KUMAR SINGHI)
Partner
Membership No. 200/24612
UDIN: 20024612AAAACC7682

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