Mar 31, 2015
Report on the Financial Statements
We have audited the accompanying financial statements of Rainbow Denim
Ltd which comprise the Balance Sheet as at 31st March 2015, the
Statement of Profit & Loss, 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 Financial Statements
The Management is responsible for the maters in Section 134(5) of the
Companies Act, 2013 ("the Act") with respect to the preparation of
these 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 the maintenance of adequate
accounting records in accordance with the provision of the Act for
safeguarding of the assets of the Company and for preventing and
detecting the 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 internal financial control, that were operating
effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the
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 financial
statements based on our audit.
We have taken into account the provision of the Act, the accounting and
auditing standards and matters which are required to be included in the
audit report under the provision of the Act and the Rules made
thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and 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 true and fair view in
order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by Company's Directors, as well as evaluating the
overall presentation of the 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
statement.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid 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,
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
(b) in the case of the Statement of Profit & Loss, of the loss for the
year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Emphasis of matter
We draw attention to Note 33 of the accompanying financial statements
in respect of Company's ability to continue as a going concern. Our
opinion is not qualified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 issued
by the Central Government of India in terms of section 143 (11) of the
Companies Act, 2013, we give in the Annexure a statement on the matters
specified in the said 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 best of 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 the Company so far as appears from our examination of those
books.
c. the Balance Sheet, Statement of Profit & Loss and the 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 31st March, 2015 taken on record by the Board of Directors, we
report that none of the directors is disqualified as on 31st March,
2015 from being appointed as a director in terms of Section 164 (2) of
the Act.
f. To our best of information and according to the explanations given
to us:
i) The Company did not have any long term contracts including
derivatives contract for which there were any material foreseeable
losses.
ii) The Company did not have any pending litigations which would have
impact its financial position in its financial statements.
iii) There were no amounts which were required to be transferred to
Investor Education & Protection Fund by the Company.
ANNEXURE TO THE INDEPENDENT AUDITORS REPORT
The annexure referred to our Report of even date to the members of
Rainbow Denim Ltd on the financial statements for the year ended 31st
March 2015. We report that:
1. In respect of its Fixed assets:
a) The Company has maintained proper records showing full particulars
including quantitative details and situations of fixed assets on the
basis of available information;
b) Management has certified that they have carried out physical
verification of fixed assets and no material discrepancy was noticed on
such verification.
2. In respect of its inventories:
a) The inventories have been physically verified by the management
during the year. In our opinion, the frequency of verification is
reasonable.
b) In our opinion, the procedures of physical verification of stocks
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) The company is maintaining proper records of inventory. No material
discrepancies have been noticed on physical verification of stocks as
compared to book records in so far as it appears from our examination
of the books.
3. According to the information and explanations given to us, the
company has not granted any loans, secured or unsecured to any
companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act, 2013. Accordingly sub clause
(a) and (b) are not applicable.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and nature of its business with regard to
purchase of inventory, fixed assets and for sale of goods and services.
During the course of our audit, no major weakness has been noticed in
the internal controls.
5. According to the information and explanation given to us, the
company has not accepted any deposits u/s 73 to 76 or any other
relevant provisions of the Companies Act, 2013 during the year.
6. We have broadly reviewed the books of accounts maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under section 148 (1) of the Companies Act,
2013 in respect of the Company's Products to which the said rules are
made applicable, and are of the opinion that prima facie, the
prescribed accounts have been made and maintained. We have, however not
made a detailed examination of the records with a view to determine
whether they are accurate.
7. a) According to the records of the Company, there were no
undisputed amounts payable in respect of Provident Fund, Investor
Education and Protection Fund, Employee's State Insurance, Income Tax,
Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, value
added tax, Cess and any other statutory dues with appropriate
authorities outstanding as on 31st March, 2015, for a period of more
than six months from the date they became payable.
b) According to the records of the Company and information and
explanations given to us there are no dues of sales tax, income tax,
wealth tax, service tax, custom duty, excise duty, value added tax,
cess on account of any disputes.
c) There was no amount required to be transferred to investor education
and protection fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules made thereunder.
8. In our opinion, the accumulated losses of the company are more than
fifty percent of its net worth. During the year company has incurred
cash loss of Rs. 84,016,930/- and in the immediately preceding
financial year it has incurred cash loss of Rs. 192,223,318/-.
9. On the basis of our examination of the books and according to the
information and explanation given to us, we are of the opinion that the
company has defaulted in repayment of dues including interest &LC
devolvement, amounting to Rs. 24,47,86,116/- (P.Y. Rs.22,39,29,953/-),
to financial institutions and banks as below:
Name of lender Principal Interest
Amount Due Since Amount Due Since
IDBI Bank Limited 7,59,62,178 October,
2012 7,83,22,234 January,
2013
Dena Bank 2,10,20,472 April,
2013 2,98,56,741 February,
2013
Dena Bank -
Devolved LCs 3,96,24,491 January,
2013
Total 13,66,07,141 10,81,78,975
10. According to the information and explanations given to us, and the
representations made by the management, the Company has not given any
guarantee for loans taken by others from any bank or financial
institution.
11. In our opinion and on the basis of information and explanations
given to us, term loans availed by the Company were, prima facie,
applied by the Company for the purpose for which the loans were
obtained.
12. According to the information and explanations given to us, and to
the best of our knowledge and belief no fraud on or by the Company has
been noticed or reported during the year.
For Dayal and Lohia
Chartered Accountants
(Firm Registration No.102200W)
(S.V. Thomas)
Place : Mumbai. Partner
Date : 29th May, 2015 Membership No.125944
Mar 31, 2014
We have audited the accompanying financial statements of Rainbow Denim
Limited ("the Company"), which comprise the Balance Sheet as at March
31, 2014, and the Statement of Profit and Loss and Cash Flow Statement
for the year then ended, and a summary of signifi cant accounting
policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these fi nancial
statements that give a true and fair view of the fi nancial position,
fi nancial performance and cash fl ows of the Company in accordance
with the Accounting Standards referred to in sub-section (3C) of
section 211 of the Companies Act, 1956 ("the Act"). This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the fi nancial
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 fi nancial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the fi nancial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the fi nancial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the fi nancial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the fi nancial
statements in order to design audit procedures that are appropriate in
the circumstances. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by management, as well as evaluating the
overall presentation of the fi nancial statements. We believe that the
audit evidence we have obtained is suffi cient and appropriate to
provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the fi nancial 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, subject to :
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
(b) in the case of the Statement of Profit and Loss, of the loss for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash fl ows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specifi ed in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, 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 purpose 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, 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 Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e. on the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualifi ed as on March 31, 2014, 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 AUDITOR''S REPORT
(Referred to in our Report of even date to the members of Rainbow Denim
Limited on the fi nancial statements for the year ended 31st March
2014.)
1. In respect of its Fixed assets:
a) The Company has maintained proper records showing full particulars
including quantitative details and situations of fi xed assets on the
basis of available information;
b) Management has certifi ed that they have carried out physical verifi
cation of fi xed assets and no material discrepancy noticed on such
verifi cation.
c) The Company has not disposed off any substantial part of fi xed
assets so as to affect its going concern.
2. In respect of its inventories:
a) The inventories have been physically verifi ed by the management
during the year. In our opinion, the frequency of verifi cation is
reasonable.
b) In our opinion, the procedures of physical verifi cation of stocks
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) No material discrepancies have been noticed on physical verifi
cation of stocks as compared to book records in so far as it appears
from our examination of the books.
3. a) According to the information and explanations given to us, the
company has not granted any loans, secured or unsecured to the
companies, fi rms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956.
Accordingly sub clause (b), (c) and (d) are not applicable.
e) According to the information and explanations given to us, during
the year, the company has not taken any loans from the companies, fi
rms or other parties covered in the register maintained under section
301 of the Companies Act, 1956 during the year. During the year, it has
repaid previous interest free loan of Rs. 3,81,00,000/- to one party.
f) In our opinion and according to the information and explanation
given to us, the rate of interest and other terms and conditions are
prima facie not prejudicial to the interest of the Company.
g) Terms of re-payments of Principal amount are not stipulated.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and nature of its business with regard to
purchase of inventory, fi xed assets and for sale of goods and
services. During the course of our audit, no major weakness has been
noticed in the internal controls.
5. In respect of transactions covered under section 301 of the
Companies Act, 1956, according to information and explanation given to
us, we are of the opinion that there are no contracts or arrangements
that need to be entered into the register maintained under section 301
of the Companies Act, 1956. Therefore, the provision of sub-clause (b)
of clause 4 (v) of the order is not applicable to the Company.
6. According to the information and explanation given to us, the
company has not accepted any deposits u/s 58A, 58AA or any other
relevant provisions of the Companies Act, 1956, during the year.
7. In our opinion, the Company has an internal audit system
commensurate with the size and the nature of the business.
8. We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under section 209(1)(d) of the Companies
Act, 1956 in respect of the Company''s Products to which the said rules
are made applicable, and are of the opinion that prima facie, the
prescribed accounts have been made and maintained. We have, however not
made a detailed examination of the records with a view to determine
whether they are accurate.
9. a) According to the records of the Company, there were no undisputed
amounts payable in respect of Provident Fund, Investor Education and
Protection Fund, Employee''s State Insurance, Income Tax, Sales Tax,
Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and any other
statutory dues outstanding as on 31st March, 2014, for a period of more
than six months from the date they became payable.
b) According to the records of the Company and information and
explanations given to us there are no dues of sales tax, income tax,
wealth tax, service tax, custom duty, excise duty on account of any
disputes.
10. In our opinion, the accumulated losses of the company are more than
fi fty percent of its net worth. During the year company has incurred
cash loss of Rs. 19,22,23,318/- and in the immediately preceding fi
nancial year it has incurred cash loss of Rs. 1,38,95,602/-.
11. On the basis of our examination of the books and according to the
information and explanation given to us, we are of the opinion that the
company has defaulted in repayment of dues including interest,
amounting to Rs. 22,39,29,953/-, to fi nancial institutions and banks.
12. According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures or any other securities.
13. In our opinion, the Company is not a Chit Fund, Nidhi or Mutual
Fund/Society and therefore the provisions of clause 4 (xiii) of the
order are not applicable.
14. The Company is not dealing or trading in shares, securities,
debentures and other investments. Accordingly, the provisions of clause
4(xiv) of the order are not applicable. All the investments are held by
the company in its own name.
15. According to the information and explanations given to us, and the
representations made by the management, the Company has not given any
guarantee for loans taken by others from any bank or fi nancial
institution.
16. In our opinion and on the basis of information and explanations
given to us, term loans availed by the Company were, prima facie,
applied by the Company for the purpose for which the loans were
obtained.
17. According to the information and explanations given to us and on an
overall examination of the balance sheet of the Company, we report that
as on the date of Balance Sheet short term funds to the extent of Rs.
47,71,47,154/- have gone into funding the accumulated losses of the
Company.
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. The Company has not issued debentures during the year.
20. The Company has not raised any money by public issue during the
year.
21. According to the information and explanations given to us, and to
the best of our knowledge and belief no fraud on or by the Company, has
been noticed or reported during the year.
For Dayal and Lohia
Chartered Accountants
(Firm Registration No.102200W)
(S.L. Khandelwal)
Place : Mumbai Partner
Date : May 28, 2014. M.No.: 101388
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Rainbow Denim
Limited ("the Company"), which comprise the Balance Sheet as at March
31, 2013, and the Statement of Profit and Loss and Cash Flow Statement
for the year then ended, and a summary of significant accounting
policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these 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 Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the 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 financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and 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 control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
In our opinion and to the best of our information and according to the
explanations given to us, the 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:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
(b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order
2. As required by section 227(3) of the Act, 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 purpose 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, 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 Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e) On the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company
ANNEXURE TO THE INDEPENDENT AUDITOR''S REPORT
(Referred to in paragraph 2 of our Report of even date on the accounts
of Rainbow Denim Limited for the year ended 31st March 2013.)
1. In respect of its Fixed assets:
a) The Company has maintained proper records showing full particulars
including quantitative details and situations of fixed assets on the
basis of available information;
b) Management has certified that they have carried out physical
verification of fixed assets and no material discrepancy noticed on
such verification.
c) The Company has not disposed off any substantial part of fixed
assets so as to affect its going concern.
2. In respect if its inventories:
a) The inventories have been physically verified by the management
during the year. In our opinion,the frequency of verification is
reasonable.
b) In our opinion, the procedures of physical verification of stocks
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) No material discrepancies have been noticed on physical verification
of stocks as compared to book records in so far as it appears from our
examination of the books.
3. a) According to the information and explanations given to us, the
company has not granted any loans, secured or unsecured to the
companies, firms or other parties covered in the register maintained
under section 301 of the
Companies Act, 1956.
Accordingly sub clause (b), (c) and (d) are not applicable. e)
According to the information and explanations given to us, during the
year, the company has taken an interest free advance from one party
covered under the register maintained under section 301 of the
Companies Act, 1956, amounting to Rs. 3,81,00,000/- f) In our opinion
and according to the information and explanation given to us, the rate
of interest and other terms and conditions are prima facie not
prejudicial to the interest of the Company. g) Terms of re-payments of
Principal amount are not stipulated.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and nature of its business with regard to
purchase of inventory, fixed assets and for sale of goods and services.
During the course of our audit, no major weakness has been noticed in
the internal controls.
5. In respect of transactions covered under section 301 of the
Companies Act, 1956, according to information and explanation given to
us, we are of the opinion that there are no contracts or arrangements
that need to be entered into the register maintained under section 301
of the Companies Act, 1956. Therefore, the provision of sub-clause (b)
of clause 4 (v) of the order is not applicable to the Company.
6. According to the information and explanation given to us, the
company has not accepted any deposits u/s 58A, 58AA or any other
relevant provisions of the Companies Act, 1956, during the year.
7. In our opinion, the Company has an internal audit system
commensurate with the size and the nature of the business.
8. We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under section 209(1)(d) of the Companies
Act, 1956 in respect of the Company''s Products to which the said rules
are made applicable, and are of the opinion that prima facie, the
prescribed accounts have been made and maintained. We have, however not
made a detailed examination of the records with a view to determine
whether they are accurate.
9. a) According to the records of the Company, there were no
undisputed amounts payable in respect of Provident Fund, Investor
Education and Protection Fund, Employee''s State Insurance, Income Tax,
Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and
any other statutory dues outstanding as on 31st March, 2013, for a
period of more than six months from the date they became payable. b)
According to the records of the Company and information and
explanations given to us there are no dues of sales tax, income tax,
wealth tax, service tax, custom duty, excise duty on account of any
disputes.
10. In our opinion, the accumulated losses of the company are more
than fifty percent of its net worth. During the year company has
incurred cash loss of Rs. 1,38,95,602/- and in the immediately
preceding financial year it has incurred cash loss of Rs.
10,14,19,727/-.
11. On the basis of our examination of the books and according to the
information and explanation given to us, the company has defaulted in
repayment of dues including interest, amounting to Rs. 14,28,96,778/-,
to financial institution and banks.
12. According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures or any other securities.
13. In our opinion, the Company is not a Chit Fund, Nidhi or Mutual
Fund/Society and therefore the provisions of clause 4 (xiii) of the
order are not applicable.
14. In Company is not dealing or trading in shares, securities,
debentures and other investments. Accordingly, the provisions of clause
4(xiv) of the order are not applicable. All the investments are held by
the company in its own name.
15. According to the information and explanations given to us, and the
representations made by the management, the Company has not given any
guarantee for loans taken by others from any bank or financial
institution.
16. In our opinion and on the basis of information and explanations
given to us, term loans availed by the Company were, prima facie,
applied by the Company for the purpose for which the loans were
obtained.
17. According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, as on the
date of Balance sheet Rs. 23,45,05,770/- raised on short term basis
have been used for long term investment by the company.
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. The Company has not issued debentures during the year.
20. The Company has not raised any money by public issue during the
year.
21. According to the information and explanations given to us, and to
the best of our knowledge and belief no fraud on or by the Company, has
been noticed or reported during the year.
for DAYAL & LOHIA
Chartered Accountants
Firm Regn. No. 102200W
(S. L. Khandelwal )
Place : Mumbai Partner
Date : 30th May, 2013. M No: 101388
Mar 31, 2012
We have audited the attached Balance Sheet of Rainbow Denim Limited as
at 31st March, 2012 and the statement of Profit and Loss for the year
ended on that date, and also the cash flow statement for the year ended
on that date. These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
1. We conducted our audit in accordance with auditing standards
generally accepted in India. Those 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 check 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.
2. As required by the Companies (Auditor's Report) Order, 2003
issued by the Central Government in terms of section 227(4A) of the
Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
3. Further to our comments in the Annexure referred to 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 purpose of our
audit;
b) In bur opinion, proper books of accounts as required by law have
been kept by the Company so far as it appears from our examination of
the books.
c) The Balance Sheet, the statement of Profit and Loss and the Cash
Flow statement dealt with by this report are in agreement with the
books of account;
d) In our opinion, the statement of Profit and Loss, Balance Sheet and
Cash Flow statement comply with the Accounting Standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956;
e) In our opinion, and based on the information and explanation given
to us, none of the directors are disqualified as on 31 st March, 2012
from being appointed as directors in terms of clause (g) of sub-section
(1) of section 274 of the Companies Act, 1956;
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
notes thereon give the information required by the Companies Act, 1956,
in the manner so required and subject to note 4.2 in Current
Liabilities - regarding non-disclosure of amounts overdue to micro,
small and medium enterprise, give a true and fair view
i. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2012; and
ii. in the case of the statement of Profit and Loss, 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.
(Referred to in paragraph 2 of our Report of even date on the accounts
of Rainbow Denim Limited for the year ended
31st March 2012.)
1. In respect of its Fixed assets:
a) The Company has maintained proper records showing particulars,
including quantitative details and situations of fixed assets;
b) The fixed assets have been physically verified by the management
during the year and no material discrepancies have been noticed on such
verification.
c) The Company has not disposed off any substantial part of fixed
assets so as to affect its going concern status.
2. In respect if its inventories:
a) The inventories have been physical ly verified by the management
during the year. In our opinion, the frequency of verification is
reasonable.
b) In our opinion, the procedures of physical verification of stocks
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) No material discrepancies have been noticed on physical verification
of stocks as compared to book records in so far as it appears from our
examination of the books.
3. In respect of loans, secured or unsecured, granted or taken by the
Company to/from companies, firm or other parties covered in the
register maintained under section 301 of the Companies Act, 1956:
a) According to the information and explanation given to us, the
Company has not granted any loan, secured or unsecured to companies,
firms or other parties listed in the register maintained under section
301 of the Companies Act, 1956. Accordingly sub clause (b), (c) and (d)
Are not applicable;
b) According to the information and explanation given to us, the
Company has not taken any loan, secured or unsecured, from companies,
firms or other parties listed in the register maintained under section
301 of the Companies Act, 1956. Accordingly sub clause (f) and (g) are
not applicable;
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and nature of its business
with regard to purchase of inventory, fixed assets and for sale of
goods. During the course of our audit, no major weakness has been
noticed in the internal control. .
5. In respect of transactions covered under Section 301 of the
Companies Act, 1956, according to the information and explanations
given to us, we are of the opinion that there are no contracts or
arrangements that need to be entered into the register maintained under
section 301 of the Companies Act, 1956. Therefore, the provision of
sub-clause (b) of clause 4 (v) of the Order is not applicable to the
Company.
6. According to the information and explanations given to us, the
company has not accepted the deposit uls. 58A,
58AA or any other relevant provisions of the Companies Act, 1956 during
the year. -
7. In our opinion, the Company has an internal audit system
commensurate with the size and the nature of the business.
8. We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the central Government for the
maintenance of cost records under section 209(l)(d) of the Companies
Act, 1956 in respect of the Company's products to which the said rules
are made applicable, and are of the opinion that prima facie, the
prescribed accounts have been maintained. We have, however not made a
detailed examination of the records with a view to determine whether
they are accurate.
9. a) According to the records of the Company, there were no
undisputed amounts payable in respect of Provident Fund, Investor
Education and Protection Fund, Employee's State Insurance, Income Tax,
Sales Tax, Wealth Tax, Service Tax, Custom Duly. Excise Duty, Cess and
any other statutory dues outstanding as on 31st March, 2012, for a period
of more than six months from the date they became payable.
b) According to the records of the Company and information and
explanations given to us there are no dues of sales tax, income tax,
wealth tax, service tax, custom duty, excise duty on account of any
disputes.
10. In our opinion, the accumulated losses of the Company are more
than fifty percent of its net worth. During the year company has
incurred cash loss of Rs. 10.14 Crores and in the immediately preceding
financial year it has not incurred any cash loss.
11. On the basis of our examination of the books and according to the
information and explanations given to us, we are of the opinion that
the company has not defaulted in repayment of dues including interest,
to financial institution and banks.
12. According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures or any other securities.
13. In our opinion, the Company is not a Chit Fund, Nidhi or Mutual
Fund/Society.
14. In our opinion, the Company is maintaining proper record of the
transactions and contracts of dealing in shares and securities and
timely entries have been made in the records. Ail the investments are
held by the Company in its own name.
15. According to the information and explanations given to us, and the
representations made by the management, the Company has not given any
guarantee for loans taken by others from any bank or financial
institution.
16. In our opinion and on the basis of information and explanations
given to us, term loans availed by the Company were, prima facie,
applied by the Company during the year for the purpose for which the
loans were obtained.
17. According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, during the
year Rs. 1,582.76 Lacs raised on short term basis have been used for
long-term investment by the Company.
18. The Company has not made preferential allotment of shares to
Company covered in the register maintained under section 301 of the
Companies Act, 1956.
19. The Company has not issued debentures during the year.
20. The Company has not raised any money by public issue during the
year.
21. According to the information and explanations given to us, and to
the best of our knowledge and belief no fraud on or by the Company, has
been noticed or reported during the year.
for DAYAL & LOHIA
Chartered Accountants
Firm Regn. No. 102200W
(S. L. Khandelwal)
Place : Mumbai Partner
Date : 30th May, 2012 M No: 101388
Mar 31, 2010
We have audited the attached Balance Sheet of Rainbow Denim Limited as
at 31st March, 2010 and the Profit and Loss Account for the year ended
on that date, and also the cash flow statement for the year ended on
that date. These financial statements are the responsibility of the
Companys management. Our responsibility is to express an opinion on
these financial statements based on our audit.
1. We conducted our audit in accordance with auditing standards
generally accepted in India. Those 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 check 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.
2. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government in terms of section 227(4 A) of the Companies
Act, 1956, we enclose in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said Order.
3. Further to our comments in the Annexure referred to 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 purpose of our
audit;
b) In our opinion, proper books of accounts as required by the law have
been kept by the Company so far as it appears from our examination of
the books.
c) The Balance Sheet, the Profit and Loss Account and the Cash Flow
statement dealt with by this report are in agreement with the books of
account;
d) In our opinion, the Profit and Loss Account and Balance Sheet comply
with the Accounting Standards referred to in sub-section (3C) of
section 211 of the Companies Act, 1956;
e) In our opinion and based on the information and explanations given
to us, none of the directors are disqualified as on 31st March, 2010
from being appointed as directors in terms of clause (g) of sub-section
(1) of section 274 of the Companies Act, 1956;
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
notes thereon give the information required by the Companies Act, 1956,
in the manner so required and subject to i) note B-6 in Schedule 16
regarding recoverability of certain advance and ii) the balances of
Secured Loans and Contingent Liabilities in respect of Letters of
credit not being confirmed by the banks and financial institutions,
give a true a,nd fair view
i. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31 * March 2010; and
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.
ANNEXURE TO THE AUDITORS REPORT
(Referred to in paragraph 2 of our Report of even date on the accounts
of Rainbow Denim Limited for the year ended 31sMarch 2010.)
1. In respect of its Fixed assets:
a) The Company has maintained proper records showing particulars,
including quantitative details and situations of fixed assets;
b) The fixed assets have been physically verified by the management
during the year and no material discrepancies have been noticed on such
verification.
c) The Company has not disposed off any substantial part of fixed
assets so as to affect its going concern.
2. In respect if its inventories:
a) The inventories have been physically verified by the management
during the year. In our opinion, the frequency of verification is
reasonable.
"b) In our opinion, the procedures of physical verification of stocks
followed by the management are reasonable and adequate in relation to
the size of thcCompany and the nature of its business.
c) No material discrepancies have been noticed on physical verification
of stocks as compared to book records in so far as it appears from our
examination of the books.
3. In respect of loans, secured or unsecured, granted or taken by the
Company to/from companies, firm or other parties covered in the
register maintained under section 301 of the Companies Act, 1956:
a) According to the information and explanation given to us, the
Company has not granted any loan, secured or unsecured to companies,
firms or other parties listed in the register maintained under section
301 of the Companies Act, 1956;
b) According to the information and explanation given to us,
the.Company has not taken any loan, secured or unsecured, from
companies, firms or other parties listed in the register maintained
under section 301 of the Companies Act, 1956;
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and nature of its business
with regard to purchase of inventory, fixed assets and for sale of
goods. During the course of our audit, no major weakness has been
noticed in the internal control.
5. In respect of transactions covered under Section 301 of the
Companies Act, 1956:
a) According to the information and explanations given to us, we are of
the opinion that there are no contracts or arrangements that need to be
entered into the register maintained under section 301 of the Companies
Act, 1956. Therefore, the provision of sub-clause (b) of clause 4 (v)
of the Order is not applicable to the Company.
6. According to the information and explanations given to us, the
company has not accepted the deposit u/s. 58A, 58AA or any other
relevant provisions of the Companies Act, 1956 during the year.
7. In our opinion, the Company has an internal audit system
commensurate with the size and the nature of the business,
8. We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the central Government for the
maintenance of cost records under section 209(1 )(d) of the Companies
Act, 1956 in respect of the Companys products to which the said rules
are made applicable, and are of the opinion that prima facie, the
prescribed accounts have been maintained. We have, however not made a
detailed examination of the records with a view to determine whether
they are accurate.
9. a) According to the records of the Company, there were no
undisputed amounts payable in respect of Provident Fund, Investor
Education and Protection Fund, Employees State Insurance, Income Tax,
Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and
any other statutory dues outstanding as on 31 * March, 2010, for a
period of more than six months from the date they became payable.
b) According to the records of the Company and information and
explanations given to us there are no dues of sales tax, income tax,
wealth tax, service tax, custom duty, excise duty on account of any
disputes.
10. In our opinion, the accumulated losses of the Company are more
than fifty percent of its net worth. During the year company has
incurred cash loss of Rs. 751.18 lacs and in the immediately preceding
financial year, it has incurred cash loss of Rs. 726.71 lacs.
11. On the basis of our examination of the books and according to the
information and explanations given to us, the Company has defaulted in
repayment of dues, including interest, to financial institution or
banksaggregating to Rs 5,632.84 Lacs for the repayments as on 31st
March 2010 subject to adjustment of rate of interest/waivers/ funding
of interest, if any, as per the Corporate Debt Restructuring package
sanctioned to the company by the Corporate Debt Restructuring Group
constituted by the Reserve Bank of India.
12. According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures or any other securities.
13. In our opinion, the Company is not a Cnit Fund, Nidhi or Mutual
Fund/Society.
14. In.our opinion, the Company is maintaining proper record of the
transactions and contracts of dealing in shares and securities and
timely entries have been made in the records. All the investments are
held by the Company in its own name.
15. According to the information and explanations given to us, and the
representations made by the management, the Company has not given any
guarantee for loans taken by others from any bank or financial
institution.
16. In our opinion and on the basis of information and explanations
given to us, term loans availed by the Company were, prima facie,
applied by the Company during the year for the purpose for which the
loans were obtained.
17. According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, during the
year Rs. 573.01 lacs raised on short-term basis have been used for
long-term investment by the Company.
18. The Company has not made preferential allotment of shares to
Company covered in the register maintained under section 301 of the
Companies Act, 1956.
19. The Company has not issued debentures during the year.
20. The Company has not raised any money by public issue during the
year.
21. According to the information and explanations given to us, and to
the best of our knowledge and belief no fraud on or by the Company, has
been noticed or reported during the year.
for DAYAL & LOHIA
Chartered Accountants
FirmRegn. No. 102200W
(ANIL LOHIA)
Place : Mumbai Partner
Date : 28,h May 2010 M No: 31626
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article