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Notes to Accounts of Bombay Swadeshi Stores Ltd.

Mar 31, 2015

1 Company Background

The Company was incorporated in 1905. The Company is in business of retailing of variety of household, gifts, artefacts & other consumable products through its stores.

2. In the absence of any intimation from vendors regarding the status of their registration under the "Micro, small and Medium Enterprises Development Act, 2006", the Company is unable to comply with the disclosures required to be made under the said Act.

3. Balance of Sundry Creditors are subject to confirmations. Adjustments, if any, will be made on receipts of the confirmations.

4. Pursuant to the enactment of companies Act 2013, the company has applied the estimated useful lives as specified in Schedule II,except in respect of certain assets as disclosed in Accounting Policy on Depreciation. The Realighnment of the useful lives have resulted in adjustment of Rs.40.33 lacs against the opening balance of retained earnings.

5. Advance towards premises includes payment made to Grishma Constructions & Trading Co. Pvt. Ltd.

6. Balance of Trade Receivables are subject to confirmations. Adjustments, if any, will be made on receipts of the confirmations.

7. Trade Receivable includes Rs. 5,376,992/- (Previous year Rs. 5,487,988/-) due from the customers for which no provision is considered necessary as the Company is of the view that the same are recoverable.

8. Above advance includes due from subsidiary company Bombay Store Retail Co. Ltd for purchase of merchandise Rs. 24,257,372/- (Previous year Rs. 7,767,312/-)

9. Balance of Loans & Advances are subject to confirmations. Adjustments, if any, will be made on receipt of the confirmations.

10. Contingent Liabilities:

i. Service Tax liability of Rs. 145,899/- (Previous year Rs. 145,899/-).

11. The Company has adopted useful lives of the fixed assets as those specified in Schedule II to the Companies Act, 2013 (the Act) effective 1.4.2014. Accordingly the carrying amount of assets for which the useful lives as per the revised estimate are exhausted as of 1.4.2014 have been recognized in the retained earnings /opening balance of profit and loss account as on that date after retaining the residual value of the assets. The carrying amount as on 1.4.2014 is depreciated over the revised remaining useful life. As the result of these changes the depreciation charge for the year is higher by Rs. 427,946/-

12. The Company considers its entire operations under single segment 'Retailing'. The Company's operations are only in India.

13. Earning per share has been computed with reference to profit after tax of Rs. 910,476/- (Previous year Rs.1,599,433 /-) and weighted average number of equity shares 4,940,000 shares (Previous year 4,940,000) There is no diluted earning per share as there are no dilutive potential equity shares.

14. The Company has, on prudence not recognised Deferred Tax Assets Rs. 7,438,700/- (Previous year Rs. 4,183,007/-) mainly representing expenses allowable for tax purposes when paid and difference between tax and book written down value of fixed assets, due to uncertainty of future profits in terms of Accounting Standard 22 (AS-22) for Taxes on Income issued by The Institute of Chartered Accountants of India.

15. Related Party Disclosures

A. Relationship

I) Subsidiary Company

Bombay Store Retail Company Limited

II) Key Management Personnel & Relatives:

Mr. Milan Dalai - Chairman Mr. Asim Dalai - Manging Director

Mr. Satyen Dalai - Relative Mr. Bhupen C. Dalai - Relative

Mrs. Rekha Dalai - Relative Mrs. Aditi Dalai - Relative

Mrs. Veena Dalai - Relative

III) Other Parties / Enterprises where control / significant influence exists.

Gateway International Pvt. Ltd. Grishma Constructions & Trading Co. Pvt. Ltd. First Overseas Capital Limited Asda Trading Company Pvt. Ltd.

Western Press Pvt. Ltd. Milan Investments PvL Ltd.

Elephant Company Retail Pvt Ltd. Out Of India Retail PvL Ltd.

Amalgamated Business Solutions Ltd Stanford Securities Pvt. Ltd

Related party relationship is as identified by the Company and relied on by the Auditors.

16. Earning in Foreign Exchange:

i. FOB value of exports of goods NIL /- (Previous year NIL/-).

ii. Receipts on account of sale of merchandise Rs. 27,114,436/- (Previous year Rs. 23,851,961-).

17. CIF Value of Imports : Goods Rs. NIL/- (Previous year Rs. NIL/-).

18. Expenditure in Foreign Currency:

Other Expenses Rs. 381,591/ - (Previous year Rs. 461,143/-).

19. Previous year's figures have been regrouped / re-arranged / reclassified wherever necessary.


Mar 31, 2014

1 Company Background

The Company was incorporated in 1905. The Company is in business of retailing of variety of household, gifts, artefacts & other consumable products through its stores.

2.1 Loans repayable on demand viz Cash Credit facilities are Secured by current assets including credit card receivables, fixed assets of the company, pledge of Equity Shares of the company held by the Director and Associate of the company, key man insurance policy and unconditional and irrevocable personal Guarantee of Managing Director of the company.

2.2 Other secured loans are secured by hypothecation of vehicles.

3.1 In the absence of any intimation from vendors regarding the status of their registration under the "Micro, Small and Medium Enterprises Development Act, 2006", the Company is unable to comply with the disclosures required to be made under the said Act.

3.2 Balance of Sundry Creditors are subject to confirmations. Adjustments, if any, will be made on receipts of the confirmations.

4.1 Advance towards premises includes payment made to Grishma Constructions & Trading Co. Pvt. Ltd.

4.20ther Long Term Advances includes Rs. 1,091,186/- (Previous year T 10,91,186/-) dues from various parties, for which recoveries are not forthcoming, which are considered good as the company is of the view that these are recoverable.

5.1 Balance of Trade Receivables are subject to confirmations. Adjustments, if any, will be made on receipts of the confirmations.

5.2Trade Receivables includes f 5,487,988/- (Previous year Rs. 5,487,988/-) due from the customers for which no provision is considered necessary as the Company is of the view that the same are recoverable.

6.1 Above advance includes due from subsidiary company Bombay Store Retail Co. Ltd for purchase of merchandise Rs.77,67,312/- (Previous year Rs. 57,82,114/-)

6.2 Balance of Loans & Advances are subject to confirmations. Adjustments, if any, will be made on receipts of the confirmations.

6.3 Security & Other deposit includes Rs. 358,816/-(Previous year Rs. 358,816/-) dues from a party for which revoveries are not forthcoming, which are considered good as the company is of the view that these are recoverable.

7. Contingent Liabilities:

i. Service Tax liability of Rs. 145,899/- (Previous year Rs.145,899/-).

8. The Company considers its entire operations under single segment ''Retailing''. The Company''s operations are only in India.

9. Earning per share has been computed with reference to profit after tax of Rs. 1,599,433 (Previous year Rs.1,518,951/-) and weighted average number of equity shares 49,40,000 shares (Previous year 4,940,000) There is no diluted earning per share as there are no dilutive potential equity shares.

10. The Company has, on prudence not recognised Deferred Tax Assets Rs. 4,183,007/- (Previous year t 5,618,578/-) mainly representing expenses allowable for tax purposes when paid and difference between tax and book written down value of fixed assets, due to uncertainty of future profits in terms of Accounting Standard 22 (AS-22) for Taxes on Income issued by The Institute of Chartered Accountants of India.

11. Related Party Disclosures A. Relationship

I) Subsidiary Company

Bombay Store Retail Company Limited

II) Key Management Personnel & Relatives:

Mr. Milan Dalai - Chairman Mr. Asim Dalai - Manging Director

Mr. Satyen Dalai - Relative Mr. Bhupen C. Dalai - Relative

Mrs. Rekha Dalai - Relative Mrs. Aditi Dalai - Relative

Mrs. Veena Dalai - Relative

III) Other Parties / Enterprises where control / significant influence exists.

Gateway International Pvt. Ltd. Grishma Constructions & Trading Co. Pvt. Ltd. First Overseas Capital Limited Asda Trading Company Pvt. Ltd. Western Press Pvt. Ltd. Milan Investments Pvt. Ltd.

M/s S. Ramdas FOCL (Maldives) Pvt. Ltd.

Elephant Company Retail Pvt Ltd. Out Of India Retail Pvt. Ltd.

Amalgamated Business Solutions Ltd

Related party relationship is as identified by the Company and relied on by the Auditors.

12. Earning in Foreign Exchange:

i. FOB value of exports of goods NIL /- (Previous year NIL/-).

ii. Receipts on account of sale of merchandise Rs. 23,851,961/- (Previous year Rs. 31,404,496/-).

13. CIF Value of Imports : Goods Rs. NIL/- (Previous year Rs. NIL/-).

14. Expenditure in Foreign Currency:

Other Expenses Rs. 464,163/ - (Previous year Rs. 161,344/-).

15. Previous year''s figures have been regrouped / re-arranged / reclassified wherever necessary.


Mar 31, 2013

1 Company Background

The Company was incorporated in 1905. The Company is in business of retailing of variety of household, gifts, artefacts & other consumable products through its stores.

2. Contingent Liabilities:

i. Service Tax liability of Rs 145,899/- (Previous year Rs 145,899/-).

3. The Company considers its entire operations under single segment ''Retailing''. The Company''s operations are only in India.

4. Earning per share has been computed with reference to profit after tax of Rs 1,518,951 (Previous year Rs 668,114/-) and weighted average number of equity shares 49,40,000 shares (Previous year 49,40,000) There is no diluted earning per share as there are no dilutive potential equity shares.

5. The Company has, on prudence not recognised Deferred Tax Assets Rs 5,618,578/- (Previous year X 5,830,052/-) mainly representing expenses allowable for tax purposes when paid and difference between tax and book written down value of fixed assets, due to uncertainty of future profits in terms of Accounting Standard 22 (AS-22) for Taxes on Income issued by The Institute of Chartered Accountants of India.

6. Related Party Disclosures A. Relationship

I) Subsidiary Company

Bombay Store Retail Company Limited

II) Key Management Personnel & Relatives:

Mr. Milan Dalai - Chairman Mr. Asim Dalai - Manging Director

Mr. Satyen Dalai - Relative Mr. Bhupen C. Dalai - Relative

Mrs. Rekha Dalai - Relative Mrs. Aditi Dalai - Relative

Mrs. Veena Dalai - Relative

III) Other Parties / Enterprises where control / significant influence exists.

Gateway International Pvt. Ltd. Grishma Constructions & Trading Co. Pvt. Ltd. Cifco Limited ASDA Trading Company Pvt. Ltd.

Western Press Pvt. Ltd. Milan Investments Pvt. Ltd.

M/s S. Ramdas FOCL (MALDIVES) PVT LTD

Elephant Company Retail Pvt, Ltd.

Related party relationship is as identified by the Company and relied on by the Auditors.

7. Earning in Foreign Exchange:

i. FOB value of exports of goods NIL I- (Previous year NIL/-).

ii. Receipts on account of sale of merchandise Rs 31,404,496/- (Previous year Rs 38,553,870/-).

8. CIF Value of Imports : Goods Rs NIL/- (Previous year Rs NIL/-).

9. Expenditure in Foreign Currency:

Other Expenses Rs 161,344/- (Previous year Rs 268,248/-).

10. Previous year''s figures have been regrouped / re-arranged / reclassified wherever necessary.


Mar 31, 2012

1 Company Background

The Company was incorporated in 1905. The Company is in the business of retailing of variety of household, gifts, artefacts & other consumable products through its stores.

2.1 Loans repayable on demand viz Cash Credit facilities are Secured by current assets including credit card receivables and fixed assets of the firm and unconditional and irrevocable personal Gurantee of Managing Director of the company.

2.2 Other loans are secured by hypothecation of vehicles.

3.1 In the absence of any intimation from vendors regarding the status of their registration under the "Micro, small and Medium Enterprises Development Act, 2006", the Company is unable to comply with the disclosures required to be made under the said Act.

3.2 Balance of Trade Payables are subject to confirmations. Adjustments, if any, will be made on receipts of the confirmations.

3.3 Includes Rs. NIL/ - (Previous year Rs 15,911,868/-) due to subsidiary Bombay Store Retail Company Limited

4.1 Advance towards premises includes payment made to Grishroa Constructions & Trading Co. Pvt. Ltd. [Refer note 27]

5.1 Balance of Trade Receivables are subject to confirmations. Adjustments, if any, will be made on receipts of the confirmations.

5.2Trade Receivables includes Rs. 6,450,645/ - (Previous year Rs. 5,508,240/-) due from the customers for which no provision is considered necessary as the Company is of the view that the same are recoverable.

6.1 Above advance includes due from subsidiary company Bombay Store Retail Co. Ltd for purchase of merchandise Rs. 8,601,268/ - (Previous year Rs. NIL/-)

6.2Balance of Loans & Advances are subject to confirmations. Adjustments, if any, will be made on receipts of the confirmations.

6.3Advances recoverable in kind includes Rs. 2,439,576/ - (Previous year Rs. 2,207,325/-) dues from various parties, for which recoveries are not forthcoming, which are considered good as the company is of the view that these are recoverable.

7. Contingent Liabilities:

i. Counter guarantees to Banks Rs. NIL/ - (Previous year Rs. 6,156,048/-). ii. Service Tax liability of Rs. 145,899/ - (Previous year Rs. NIL/-).

8. The Company considers its entire operations under single segment 'Retailing'. The Company's operations are only in India.

9. Earning per share has been computed with reference to profit after tax of Rs. 668,114 (Previous year Rs. 2,615,951/-) and weighted average number of equity shares 49,40,000 shares (Previous year 49,40,000) There is no diluted earning per share as there are no dilutive potential equity shares.

7. The Company has, on prudence not recognised Deferred Tax Assets Rs. 5,830,052/ - (Previous year Rs. 20,248,520/-) mainly representing expenses allowable for tax purposes when paid and difference between tax and book written down value of fixed assets, due to uncertainty of future profits in terms of Accounting Standard 22 (AS-22) for Taxes on Income issued by The Institute of Chartered Accountants of India.

8. Related Party Disclosures

A. Relationship

I) Subsidiary Company

Bombay Store Retail Company Limited

II) Key Management Personnel & Relatives: Mr. Milan Dalai - Chairman

Mr. Asim Dalai - Manging Director Mr. Satyen Dalai - Relative Mr. B. C. Dalai - Relative Mrs. Aditi Dalai - Relative

III) Other Parties / Enterprises where control / significant influence exists.

Gateway International Pvt. Ltd. Grishma Constructions & Trading Co. Pvt. Ltd. Cifco Limited ASDA Trading Company Pvt. Ltd.

Western Press Pvt. Ltd. M/s. Lemon Tree

Related party relationship is as identified by the Company and relied on by the Auditors.

9. In respect of previous years, the Company had applied to the Central Government seeking exemption from furnishing quantitative information which was rejected on 15th April, 2005. The Company had also received a show cause notice for violation under section 211. The Company is pursuing the matters with the authorities and is hopeful of resolving the issue in view of the circular no 2/2011 dt 8.2.2011 issued by Ministry of Corporate Affairs granting exemption from furnishing quantitative information

10. Earning in Foreign Exchange:

i. FOB value of exports of goods NIL / - (Previous year NIL/-).

ii. Receipts on account of sale of merchandise Rs. 38,553,870/ - (Previous year Rs. 42,967,410/-).

11. CIF Value of Imports : Goods Rs. NIL/ - (Previous year Rs. NIL/-).

12. Expenditure in Foreign Currency:

Other Expenses Rs. 268,248/- (Previous yearRs. 1,444,501/-).

13. The Revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped / re-arranged / reclassified wherever necessary.


Mar 31, 2010

1. Contingent Liabilities:

Counter guarantees to Banks Rs.61,56,048/- (Previous year Rs.61,56,048/-).

2. In the absence of any intimation from vendors regarding the status of their registration under the "Micro, Small and Medi Enterprises Development Act, 2006", the Company is unable to comply with the disclosures required to be made under said Act.

3. Balance of Sundry Debtors, Sundry Creditors and Loans & Advances are subject to confirmations. Adjustments, if any, be made on receipts of the confirmations.

4. A) Advances recoverable in kind includes Rs.46,23,298/- (Previous year Rs.44,65,793/-) dues from various parties for which recoveries are not forthcoming, which are considered good as the Company is of the view that these ar recoverable.

B) Sundry Debtors includes Rs.9,55,501/- (Previous year Rs.9,55,501/-) due from the customers for which no provisio is considered necessary as the Company is of the view that the same are recoverable.

B. The Company has been advised that computation of net profits for the purpose of Directors remuneration under section 349 of the Companies Act, 1956 need not be enumerated since no commission has been paid to Directors / Managing Director. Fixed monthly remuneration has been paid to the Managing Director as per Schedule XIII of the Companies Act, 1956.

5. The Company considers its entire operations under single segment Retailing. The Companys operations are only in India.

6. Earning per share has been computed with reference to profit after tax of Rs.4,04,941/- (Previous year Rs.2,88,450/-) and weighted average number of equity shares 49,40,000 shares (Previous year 49,40,000). There is no diluted earning per share as there are no dilutive potential equity shares.

7. Related Party Disclosures A. Relationship

i) Subsidiary Company

Bombay Store Retail Company Limited ii) Key Management Personnel & Relatives:

Mr. Milan Dalai - Chairman Mr. Asim Dalai - Managing Director

Mr. Satyen Dalai - Relative Mr. B. C. Dalai - Relative

Mrs. Aditi Dalai - Relative

iii) Other Parties / Enterprises where control / significant influence exists.

Gateway International Pvt. Ltd. Grishma Constructions & Trading Co. Pvt. Ltd.

Cifco Limited Pongal Trading Company Ltd.

Western Press Pvt. Ltd. ASDA Trading Company Pvt. Ltd.

M/s. Lemon Tree

Related party relationship is as identified by the Company and relied on by the Auditors

8. In view of heterogeneous nature of numerous items traded in by the Company and non uniform units of measurements for items purchased and sold, it is not practicable to provide the quantitative details described in Sub Clause (b) of Clause (ii) of Para 3 of Par II of the Schedule VI to the Companies Act, 1956. The Companys application to the Central Government seeking exemption from furnishing quantitative information was rejected on 15th April, 2005. The Company has also received show cause notice for violation under section 211. The Company is pursuing the matters with the authorities and is hopeful of resolving the issue.

9. Insurance expenses includes a sum of Rs.0.60 lacs (Previous year Rs.0.60 Lacs) being premium paid under taken on Keyman Insurance on the life of its Managing Director

10. During the year the Company had closed its Bangalore Store due to termination of the lease of its leasehold premises. As a result the Company had to dispose off substantial part of its assets. The loss on this account of Rs. 63,46,602/- has been considered in the accounts for the year.

11. Earning in Foreign Currency:

A. FOB value of exports of goods NIL /- (Previous year Rs.NIL/-).

B. Receipts of Foreign Currency Rs. 4,61,43,509/- (Previous year Rs.5,54,61,265/-).

12. CIF Value of Imports : Goods Rs. NIL/- (Previous year Rs. NIL/-).

13. Expenditure in Foreign Currency:

Traveling & Other Expenses Rs.5,500/ (Previous year Rs.4,11,496).

14. Previous years figures have been regrouped / re-arranged / reclassified wherever necessary.

 
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