Mar 31, 2023
R & B Denims Limited Report on the audit of the Standalone Financial Results
We have audited the accompanying statement of quarterly and year to date standalone financial results of R & B Denims Limited (the "Company") for the quarter ended March 31, 2023 and for the year ended March 31, 2023 ("Statement"), attached herewith, being submitted by the Company pursuant to the requirement of Regulation 33 and 52 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the "Listing Regulations").
In our opinion and to the best of our information and according to the explanations given to us, the statement:
a. is presented in accordance with the requirements of Regulation 33 of the Listing Regulations; and
b. gives a true and fair view in conformity with the applicable accounting standards and other accounting principles generally accepted in India, of the net profit and other comprehensive income and other financial information of the Company for the quarter ended March 31, 2023 and for the year ended March 31,2023.
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013, as amended ("the Act"). Our responsibilities under those Standards are further described in the "Auditor''s Responsibilities for the Audit of the Standalone financial Results" section of our report. We are independent of the Company in accordance with the Code of Ethics Issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our opinion.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have no key audit matters to communicate in our report.
Management''s Responsibility for the Standalone Financial Statements
The Statement has been prepared on the basis of the standalone annual financial statements. The Board of Directors of the Company are responsible for the preparation and presentation of the Statement that gives a true and fair view of the net profit and other comprehensive income of the Company and other financial Information in accordance with the applicable accounting standards prescribed under Section 133 of the Act read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 of the listing Regulations. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and accounting policies; making judgments and estimates that are reasonable and prudent; and the design, Implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Statement that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors are responsible for overseeing the Company''s financial reporting process.
Auditor''s Responsibilities for the Audit of the Standalone Financial Results
Our objectives are to obtain reasonable assurance about whether the Statement as a whole is free from material misstatement, whether due to fraud or error, and to Issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material If, individually or in the aggregate, they could reasonably be expected to Influence the economic decisions of users taken on the basis of the Statement.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the Statement, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors.
⢠Conclude on the appropriateness of the Board of Directors'' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s
ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the standalone financial results or, If such disclosures are inadequate, to modify our opinion.
⢠Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the Statement, including the disclosures, and whether the Statement represents the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in Internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguard.
The Statement includes the results for the quarter ended March 31, 2023 being the balancing figure between the audited figures in respect of the full financial year ended March 31, 2023 and the published unaudited year-to-date figures up to the third quarter of the current financial year, which were subjected to a limited review by us, as required under the listing Regulations.
For, Pradeep K. Singhi & Associates Chartered Accountants ICAI FRN: 126027W
Date: 10th May, 2023
(Pradeep Kumar Singhi) Partner M. No. 024612 UDIN:23024612BGQQIG7789
Mar 31, 2018
REPORT ON THE STANDALONE FINANCIAL STATEMENTS
I have audited the accompanying standalone financial statements of R & B Denims Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the Year ended, and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as âstandalone Ind AS financial statementsâ).
Managementâs Responsibility for the Standalone IND AS Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone Ind AS financial statements to give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act read with relevant rules issued thereunder.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting 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 adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorsâ Responsibility
My responsibility is to express an opinion on these standalone Ind AS financial statements based on my audit.
I have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
I conducted my audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Board of Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion on the standalone Ind AS financial statements.
Opinion
In my opinion and to the best of my information and according to the explanations given to me, the aforesaid standalone Ind AS 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, of the state of affairs of the Company as at March 31, 2018, and its financial performance including other comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Our opinion is not modified in respect of above said matters.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of section 143(11) of the Act, we give in the Annexure A, a statement on the matters specified in paragraph 3 and 4 of the order, to the extent applicable.
As required by Section 143 (3) of the Act, I report that:
a. I have sought and obtained all the information and explanations which to the best of my knowledge and belief were necessary for the purposes of my audit;
b. In my opinion, proper books of account as required by law have been kept by the Company so far as it appears from my examination of those books;
c. The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the Cash Flow Statement and the Statement of Changes in Equity dealt with by this Report are in agreement with the relevant books of account;
d. In my opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed under Section 133 of the Act read with relevant rules issued thereunder;
e. On the basis of the written representations received from the directors as on March 31, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on March
31, 2018 from being appointed as a director in terms of Section 164(2) of the Act;
f. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to my separate Report in âAnnexure Bâ and
g. With respect to the other matters to be included in the Auditorâs 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 to the explanations given to me:
1. The Company has disclosed the impact of pending litigations on 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 the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
I have audited the internal financial controls over financial reporting of R & B Denims Limited (âthe Companyâ) as of 31 March, 2018 in conjunction with my audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls:
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility:
My responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on my audit. I conducted my audit in accordance with the Guidance Note and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
My audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. My audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgement, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error.
I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting:
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that
(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting:
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or 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 the explanations given to me, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note.
FOR, PRADEEP SINGHI & ASSOCIATES
Chartered Accountants
FRN: 108029W
Place: Surat
Date: 28/05/2018 Sd/-
PRADEEP KUMAR SINGHI
Proprietor
M. NO. 024612
Mar 31, 2017
INDEPENDENT AUDITORSâ REPORT
Independent Auditor''s Report On Standalone Half yearly Financial Results and Standalone Year to Date Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
TO THE MEMBERS OF THE R & B DENIMS LIMITED REPORT ON THE STANDALONE FINANCIAL STATEMENTS
1. I have audited the accompanying standalone financial statements of The R & B Denims Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2017, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Financial Statements
2. The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone financial statements to 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 maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting 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 adequate internal financial controls, 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.
Auditorsâ Responsibility
3. My responsibility is to express an opinion on these standalone financial statements based on my audit.
4. I have taken into account the provisions of the Act and the Rules made there under including the accounting standards and matters which are required to be included in the audit report.
5. I conducted my audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those Standards and pronouncements 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.
6. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditors'' 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 a true and fair view, in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
7. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion on the standalone financial statements.
8. Opinion
a. The balances for Sundry Debtors, Sundry creditors, loans & advances, bank balances, statutory and other liabilities as on 31st March'' 2017 are subject to confirmation. The figures reported in the financial statement are as per the ledger account.
b. I have relied on the information & documents submitted to me by management for physical verification of stores & spares, Fixed assets.
Subject to above paragraph (a) and (b) and paragraph mentioned under Report on Other Legal and Regulatory Requirements under paragraph 10(d) relating to non-compliance of Accounting Standard, in my opinion and to the best of my information and according to the explanations given to me, the aforesaid standalone 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 for the year ended on 31st March, 2017;
b. in the case of the Profit and Loss Account, of the profit/ loss for the year ended on 31st March, 2017; and
c. in the case of the Cash Flow Statement, of the cash flows for the period from 1st April, 2016 to 31st March, 2017 on that date
Report on Other Legal and Regulatory Requirements
9. As required by ''the Companies (Auditor''s Report) Order, 2016'', issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act (hereinafter referred to as the âOrderâ), and on the basis of such checks of the books and records of the Company as I considered appropriate and according to the information and explanations given to me, I give in the âAnnexure-A" a statement on the matters specified in paragraphs 3 and 4 of the Order.
10. As required by Section 143 (3) of the Act, I report that:
a. I have sought and obtained all the information and explanations which to the best of my knowledge and belief were necessary for the purposes of my audit.
b. In my opinion, proper books of account as required by law have been kept by the Company so far as it appears from my examination of those 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 my 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 the written representations received from the directors as on March 31, 2017 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2017 from being appointed as a director in terms of Section 164 (2) of the Act.
f. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to my separate Report in âAnnexure Bâ.
g. With respect to the other matters to be included in the Auditors'' Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in my opinion and to the best of my knowledge and belief and according to the information and explanations given to me:
1. As per the information provided to me, the Company did not have any provision as at March 31, 2017, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long term contracts.
2. There has not been an occasion in case of the Company during the year under report to transfer any sums to the Investor Education and Protection Fund by the Company.
ANNEXURE A TO THE AUDITORâS REPORT
As required by the Companies (Auditor''s Report) Order, 2016 and according to the information and explanations given to us during the course of audit and on the basis of such checks as were considered appropriate, I report that:
Sr. No. |
Particulars |
Auditors 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. |
(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 |
|
(c). Whether title deeds of immovable properties are held in the name of the company. If not, provide details thereof |
Yes |
|
(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. |
Yes physical verification of inventory has been conducted at reasonable intervals by the management. No material discrepancies were noticed. |
(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 |
No such loans granted by the Company during the year under audit. |
(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 overdue amount is more than rupees five lakhs, 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 |
Not Applicable |
(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 there under, 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. 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 subsection (1) of section 148 of the Companies Act, 2013 and whether such accounts and records have been made and maintained; |
Yes maintained |
(vii) |
1. 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 |
2. 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). |
1) Appeal is pending before Commissioner of Appeals for F.Y. 2012-13 for tax demand of Rs. 7,335,180/- and for F.Y. 2013-14 for tax demand of Rs. 18,825,700/2) Appeal with CESTAT is pending for levy of Custom Duty for Rs. 193,179/- for import of Coal. 3) The case of the Company stands pending before Appellate Tribunal for the Sales Tax Penalty levied for F.Y. 2012-13. The amount of Penalty is Rs. 57,074/- which is contingent in nature. |
|
(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. Not Applicable |
(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. However, disbursement of 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 |
The Company has not made any preferential allotment / private placement of shares or fully / partly convertible debentures during the year. Hence compliance for utilization of funds are not applicable. |
(xv) |
Whether the company has entered into any non- |
No. |
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. |
Not Applicable |
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Actâ)
I have audited the internal financial controls over financial reporting of R & B Denims Limited (âthe Companyâ) as of 31 March 2017 in conjunction with my audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls:
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (''ICAI''). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility:
My responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on my audit. I conducted my audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
My audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. My audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. 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.
I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting:
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that
(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting:
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion:
Subject to our qualification & other comments of my main report, in my opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2017, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
FOR, PRADEEP SINGHI & ASSOCIATES
Chartered Accountants FRN: 108029W
Place: Surat
Date: 27/05/2017 Sd/-
PRADEEP KUMAR SINGHI
Proprietor M. NO. 024612
Mar 31, 2016
INDEPENDENT AUDITORSâ REPORT
Independent Auditor''s Report On Standalone Half yearly Financial Results and Standalone Year to Date Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
To The Members Of R & B DENIMS LIMITED
I have audited the standalone half yearly financial results of R & B Denims Limited (âthe companyâ) for the half year ended 31st March, 2016 and the standalone financial results for the year ended 31st March, 2016, attached herewith, being submitted by the company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Attention is drawn to the fact that the figures for the Standalone half year ended March 31, 2016 and the corresponding Standalone half year ended in the previous year as reported in these Standalone financial results are the balancing figures between audited figures in respect of the full Standalone financial year and the published year to date figures up to the end of the Standalone half year of the relevant Standalone financial year. These Standalone half yearly financial results as well as the Standalone year to date financial results have been prepared on the basis of the interim Standalone financial statements, which are the responsibility of the company''s management.
My responsibility is to express an opinion on these Standalone financial results based on my audit of such interim financial statements, which have been prepared in accordance with the recognition and measurement principles laid down in Accounting Standard for Interim Financial Reporting (AS 25 / Ind AS 34), prescribed, under Section 133 of the Companies Act, 2013 read with relevant rules issued there under; or by the Institute of Chartered Accountants of India, as applicable and other accounting principles generally accepted in India.
I conducted my audit in accordance with the auditing standards generally accepted in India. Those standards require that I have plan and perform the audit to obtain reasonable assurance about whether the Standalone financial results are free of material misstatement(s). An audit includes examining, on a test basis, evidence supporting the amounts disclosed as Standalone financial results. An audit also includes assessing the accounting principles used and significant estimates made by management. I believe that my audit provides a reasonable basis for my opinion.
In my opinion and to the best of my information and according to the explanations given to me these Standalone half yearly financial results as well as the Standalone year to date results:
i. are presented in accordance with the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 in this regard; and
ii. give a true and fair view of the net profit/ loss and other financial information for the Standalone half year ended 31st March, 2016 as well as the standalone financial results for the year ended 31stMarch, 2016.
ANNEXURE A TO THE AUDITORâS REPORT
As required by the Companies (Auditor''s Report) Order, 2016 and according to the information and explanations given to us during the course of audit and on the basis of such checks as were considered appropriate, I report that:
Sr. No. |
Particulars |
Auditors 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. |
(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 |
|
(c). Whether title deeds of immovable properties are held in the name of the company. If not, provide details thereof |
Yes |
|
(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. |
Yes physical verification of inventory has been conducted at reasonable intervals by the management. No material discrepancies were noticed. |
(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 |
No such loans granted by the Company during the year under audit. |
(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 overdue amount is more than rupees five lakhs, 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 |
Not Applicable |
(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 |
No. Company has not accepted any deposits. Directives issued by the Reserve Bank of India and |
relevant provisions of the Companies Act, 2013 and the rules framed there under, 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? |
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 subsection (1) of section 148 of the Companies Act, 2013 and whether such accounts and records have been made and maintained; |
Yes maintained |
(vii) |
1. 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 |
2. 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). |
1) Appeal is pending with Income Tax Appellate Tribunal for tax demand of Rs. 7,335,180/- for Assessment Year 2013-14. 2) Appeal with CESTAT is pending for levy of Custom Duty for Rs. 193,179/- 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. Not Applicable |
(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. However, disbursement of 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 |
The Company has not made any preferential allotment / private placement of shares or fully / partly convertible debentures during the year. Hence compliance for utilization of funds are not applicable. |
(xv) |
Whether the company has entered into any noncash 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. Not Applicable |
FOR, PRADEEP SINGHI & ASSOCIATES
Chartered Accountants
FRN: 108029W
Place: Surat
Date: 20/05/2016 Sd/-
PRADEEP KUMAR SINGHI
Proprietor
M. NO. 024612
Mar 31, 2015
Report on the Financial Statements
I have audited the accompanying financial statements of R & B DENIMS
LIMITED, ("the company"). which comprise the Balance Sheet as at 31
March 2015, the Statement of Profit and Loss, the Cash Flow Statement
for the year ended, and a summary of significant accounting policies
and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Board of Directors is responsible for the matters 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.
Auditors'' Responsibility
My responsibility is to express an opinion on these financial
statements based on my audit. I have taken into account the provisions
of the Act, the accounting and auditing standards and Matters which are
required to be included in the audit report under the provisions of the
Act and the Rules made there under.
I conducted my audit in accordance with the Standards on Auditing
specified under section 143(10] of the Act. Those Standards require
that I comply with ethical requirements and plan and perform the audit
to obtain reasonable
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.
I believe that the audit evidence I have obtained is sufficient and
appropriate to provide a basis for my audit opinion on the financial
statements.
Auditor''s Opinion:
In my opinion and to the best of my information and according to the
explanations given to me, 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 31,2015;
b] in the case of the Profit and Loss Account, of the profit/ loss for
the year ended on 31st March, 2015; and
c] in the case of the Cash Flow Statement, of the cash flows for the
period from 1st April, 2014 to 31st March, 2015 on that date
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report] Order, 2004 issued
by the Company Law Board in terms of Section 143(11] of the Companies
Act, 2013,1 enclose in the "Annexure A" a statement on the matters
specified there in.
2. As required by section 143(3] of the Act, I report that:
a] I have obtained all the information and explanations, which to the
best of my knowledge and belief were necessary for the purpose of my
audit.
b] In my opinion proper books of accounts as required by Law have been
kept by the company, so far as it appears from my examination of the
books.
c] The Balance Sheet, Profit & Loss Account and cash flow referred to
in the report are in agreement with the books of accounts.
d] In my opinion, the Balance Sheet, Statement of Profit & Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
sub section (3C] of section 211 of the Companies Act, 1956 read with
General Circular 15/2013 dated 13.09.2013 of the Ministry of Corporate
Affairs in respect of Section 133 of the Companies Act, 2013.
e] There is nothing to disclose which is having adverse effect on the
functioning of the company.
f] According to the information and explanations given to me and on the
basis of written representations received from the directors as on
March 31, 2015, and taken on record by the Board of Directors, none of
the directors is disqualified as on 31st March, 2015, from being
appointed as a director in terms of sub-section (2] of section 164 of
the Act.
g] With respect to the other matters included in the Auditor''s Report
and to my best of my information and according to the explanations
given to me:
I. The Company does not have any pending litigations which would
impact its financial position
II. The Company did not have any long-term contracts including
derivatives contracts for which there were any material foreseeable
losses
III. There were no amounts which required to be transferred, to the
Investor Education and Protection Fund by the Company.
As required by the Companies (Auditor''s Report] Order, 2004 and
according to the information and explanations given to us during the
course of audit and on the basis of such checks as were considered
appropriate, I report that:
ANNEXURE "A" TO THE AUDITORS REPORT
Sr. Particulars Auditors Remark
No.
(i) (a) whether the company is maintaining Yes the company is
proper records showing full particulars, maintaining Prpoer
including quantitative details and records
situation of fixed assets;
(b) whether these fixed assets have been Yes
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;
(ii) (a) whether physical verification of Yes
inventory has been conducted at
reasonable intervals by the management;
(b) are the procedures of physical Yes procedure of
verification of inventory Yes procedures physical
of physical verification of followed by verification of
the management reasonable and adequate in inventory followed
inventory followed by the management is by the management
reasonable relation to the size of the is responsible
company and the nature of its and and adequate
adequate business. If not, the
inadequacies in such procedures
should be reported;
(c) whether the company is maintaining Yes Company is
proper records of inventory and whether maintaining
any material discrepancies were noticed proper records
on physical verification and if so, and no material
whether the same have been properly discrepancy was
dealt with in the books of account; noticed.
(iii) (iii) whether the company has granted No.
any loans, secured or unsecured to
companies, firms or other parties covered
in the register maintained under section
189 of the Companies Act.
If so,
(a) whether receipt of the principal N.A.
amount and interest are also regular; and
(b) if overdue amount is more than rupees N.A.
one lakh, whether reasonable steps have
been taken by the company for recovery of
the principal and interest;
(iv) is there an adequate internal control Yes internal
system commensurate internal control system control system
is adequate, with the size of the company inadequate
and the nature of its business, for the
purchase of inventory and fixed
assets and for the sale of goods and
services. Whether there is a continuing
failure to correct major weaknesses in
internal control system.
(v) in case the company has accepted No. Company has not
deposits, whether the accepted any
directives issued by the Reserve deposits, by the
Bank of India and the Directives issued Reserve Bank of
provisions of sections 73 to 76 India and
or any other relevant provisions the provisions of
there under, where relevant provisions sections 73 to 76
of the Companies Act and the applicable, or any
have been complied with If not, other of the
the nature of rules framed contraventions Companies
should be stated; If an order has been Act and
passed by Company Law Board or National the rules framed
Company Law Tribunal or Reserve there under have
Bank of India or any court or any other been complied.
tribunal, whether the same has been
complied with or not?
(vi) where maintenance of cost records has been Yes maintained.
specified by the Central Government under
sub-section (1) of section 148 of the
Companies Act, whether such accounts and
records have been made and maintained;
(vii) (a) is the company regular in depositing Yes.
undisputed statutory dues including
provident fund, employees'' state insurance,
income-tax, sales-tax, wealth tax, service
tax, duty of customs, duty of excise, value
added tax, cess 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.
(b) in case dues of income tax or sales N.A.
tax or wealth tax or service tax or duty
of customs or duty of excise or value added
tax or cess 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 constitute a dispute).
(c) whether the amount required to be N.A
transferred to investor education and
protection fund in accordance with the
relevant provisions of the Companies Act,
1956 (1 of 1956) and rules made there under
has been transferred to such fund within
time.
(viii) whether in case of a company which has been N.A. as company
registered for a period not less than five have no accumulated
years, its accumulated losses at the end of losses.
the financial year are not less than fifty
per cent of its net worth and whether it
has incurred cash losses in such financial
year and in the immediately preceding
financial year;
(ix) whether the company has defaulted in No.
repayment of dues to a financial
institution or bank or debenture holders
If yes, the period and amount of default to
be reported;
(x) whether the company has given any guarantee No.
for loans taken by others from bank or
financial institutions, the terms and
conditions whereof are prejudicial to the
interest of the company;
(xi) whether term loans were applied for the Yes.
purpose for which the loans were obtained;
(xii) whether any fraud on or by the company has No.
been noticed or reported during the year;
If yes, the nature and the amount involved
is to be indicated.
NOTE 1
R&B Denims is a Limited Company incorporated in November 2010 by the
RawatKhedia and the Borana group, two amongst the most influential
textile houses in the polyester hub at Surat. Both of these companies
have a long lineage of more than 30 years each, in the textile
industry, and are very well known in their areas of expertise. The
commercial production of the Company had been started in financial year
2012-13
The Company is engaged in to the business of manufacturing and sale of
quality Denim Textile Products. Today the Company is manufacturing
various types of Denim ranging from 9 to 14 Oz/Sq. yd. with Open End
Spun Yarns, Multi Count, Cottons and Polyester Spandex with Indigo
Bottom Sulphur Toppings and Sulphar Bottom and Indigo Toppings with
both Foam and Wet Finishes.
Since inception, growth of the company has been remarkable and company
created itself a prime position among others. The brand has achieved
nationwide recognision and image of its own. To enhance corporate image
and brand name. Company has got listed on SME platform of Bombay Stock
Exchange on 22nd April 2014.
NOTE 2
1. Basis of Accounting (AS 1)
I. The financial statements of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
("Indian GAAP") to comply with the Accounting Standards notified under
Section 211(3C] of the Companies Act, 1956 ("the 1956 Act") (which
continue to be applicable in respect of Section 133 of the Companies
Act, 2013 ("the 2013 Act") in terms of General Circular 15/2013 dated
13 September, 2013 of the Ministry of Corporate Affairs] and the
relevant provisions of the 1956 Act / 2013 Act, as applicable, and
guidelines issued by the Securities Exchange Board of India.
II. These accounts are prepared on the historical cost basis and the
accounting principles of a going concern.
III. Accounting policies not specifically referred to otherwise are
consistent and in consonance with generally accepted accounting
principles.
2. Use of Estimates (AS 1]
The preparation of financial statement require estimates and
assumptions to be made that affect the reported amounts of assets and
liabilities and disclosure of contingent liabilities on the date of
financial statements and the reported amounts of revenue and expenses
during the reporting period. Actual results could differ from these
estimates and differences between actual results and estimates are
recognized in the periods in which the results are known / materialize.
3. Inventories (AS 2]
Stock of Raw Material and WIP is valued at cost. Finished goods are
valued at cost or market value whichever is less. Cost of Raw Material
and Finished Goods includes the purchase cost (Net of any taxes on
which credits are received or receivable] and other incidental cost, to
bring such material to its present location and condition.
4. Cash Flows (AS 3)
Cash flows are reported using the indirect method, whereby profit
before tax is adjusted for the effects of transactions of non-cash
nature, any deferrals or accruals of past or future operating cash
receipts or payments and item of income or expenses associated with
investing or financing cash flows. Cash flows from operating, investing
and financing activities of the Company are segregated, accordingly.
5. Depreciation (AS 6)
Depreciation is provided on Written Down Value Method in the manners
prescribed in Schedule II of Companies Act 2013 (In previous years as
per Schedules XIV to the Companies Act, 1956], on the basis of shifts /
manners of utilization of the assets. Depreciation on additions/
disposals during the year has been provided on pro-rata basis with
reference to the nos. of days utilized.
The useful life of assets has been changed in Companies Act 2013 and
accordingly depreciation rates are taken as per life of assets provided
in Part C of Schedule II of Companies Act 2013. For the opening
balances of fixed assets as on 1st April 2014, the rates for
depreciation have been applied as mentioned in Note 7 of Part C of
Schedule II of the Companies Act 2013. Accordingly the opening balances
of Fixed Assets as on 1st April 2014 have been written off in the
remaining life of respective assets as per New Companies Act.
6. Revenue Recognition (AS 9)
Revenue is recognised when it is earned and no significant uncertainty
exists as to its realisation or collection. Revenue from sale of goods
is recognised on delivery of the products, when all significant
contractual obligations have been satisfied, the property in goods is
transferred for a price, significant risks and rewards of ownership are
transferred to the customers and no effective ownership is retained.
Sales are net off taxes and accounted on mercantile basis.
7. Fixed Assets (AS 10)
(i] Fixed assets shown under gross block are valued at cost of
acquisition inclusive of inward freight, duties and taxes and
incidental expenses related to acquisition and also include cost of
installation wherever incurred. All pre-operative costs, including
specific financing cost till commencement of commercial production, net
charges on foreign exchange contracts and adjustment arising from
foreign exchange rate variations attributable to the fixed assets are
capitalised.
(ii] (ii] Depreciation on fixed assets has been charged on written down
value basis, pro-rata for the period of use, by adopting the revised
rates of depreciation specified in Schedule II of the Companies
Act,2013.
8. Foreign Currency Transactions fAS 11)
(i) The reporting currency of the company is Indian rupees.
(ii) Transactions in foreign currencies are recognized at the
prevailing exchange rates on the transaction dates. Realize gain and
losses on settlement of foreign currency transactions are recognized in
the profit and loss account under the natural revenue heads of
accounts. Exchange differences relating to fixed assets are capitalised
to respective Fixed Asset.
(iii] Foreign Currency assets and liabilities at the year end are
translated at the year end exchange rates, and the resultant exchange
difference is recognized in the profit and loss account.
(iv) In case of forward contract, foreign currency derivatives or other
financial instruments that are in substance forward exchange contracts,
the premium or discount arising at the inception of the contract
transactions are included in determining the net profit for the year.
9. Investments (AS 13)
Long term Investments are valued at cost. Provision for diminution is
made to recognise a decline, other than temporary, in the value of
investments. Current investments are stated at lower of cost or market
value.
10. Employee benefits (AS 15)
Defined- contrihution plans:
i) Provident fund and pension scheme are Defined Contribution Plans in
the Company. The Company is a member of recognized Provident Fund
scheme established under The Provident Fund & Miscellaneous Act, 1952
by the Government of India. The Company is contributing 12% of Salary &
Wages of eligible employees under the scheme every month. The amount of
contribution is being deposited each and every month. The contribution
paid or payable under the scheme is recognized during the period under
which the employee renders the related services.
(ii) Employee Gratuity Fund Scheme is the Defined Benefit Plan.
Provision for gratuity has been made in the accounts, in case of those
employees who are eligible for the retirement benefits. Gratuity is
paid at the time of retirement of employees. Provision for gratuity
liability is provided based on Actuarial Valuation made.
11. Foreign exchange transactions
i) Foreign currency transactions are accounted for at the exchange
rates prevailing at the date of the transaction. Gains and losses
resulting from the settlement of such transactions are recognised in
the profit and loss account. Exchange differences relating to fixed
assets are adjusted in the cost of the asset.
(ii] Amount payable and receivable in the foreign currency as at the
year end are translated at the year end exchange rate. Gains and losses
thereon are recognised in the profit and loss account.
12. Borrowing costs (AS 16)
Borrowing costs that are directly attributable to the acquisition or
construction of a qualifying asset are capitalised as part of the cost
of that asset till such time the asset is ready for its intended use. A
qualifying asset is an asset that necessarily takes a substantial
period of time to get ready for its intended use.
13. Earnings per share (AS 20)
Basic and Diluted earnings/(loss) per share are calculated by dividing
the net profit / (loss) for the period attributable to equity
shareholders (after deducting preference dividends and attributable
taxes] by the weighted average number of equity shares outstanding
during the period. The weighted average number of equity shares
outstanding during the period are adjusted for any bonus shares issued
during the year and also after the balance sheet date but before the
date the financial statements are approved by the board of directors.
14. Taxes on income (AS 22]
Current tax - Provision for current tax is made based on tax liability
computed after considering tax allowances and exemptions.
Deferred tax - Deferred tax is recognised on timing differences between
the accounting income and the taxable income for the year and
quantified using the tax rates and laws enacted or substantively
enacted as on the Balance Sheet date. Deferred tax assets are
recognised and carried forward to the extent that there is a reasonable
or virtual certainty, as may be applicable, that sufficient future
taxable income will be available against which such deferred tax asset
can be realised.
15. Impairment of assets (AS 28)
An impairment loss is charged to the Statement of profit and loss in
the year in which an asset is identified as impaired. The impairment
loss recognised in prior accounting period is reversed if there has
been a change in the estimate of recoverable amount.
16. Provisions and contingent liabilities (AS 29)
A provision is recognised when the company has a present obligation as
a result of past events and it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made.
A contingent liability is a possible obligation that arises from past
events whose existence will be confirmed by the occurrence or
non-occurrence of one or more uncertain future events beyond the
control of the company or a present obligation that is not recognized
because it is not probable that an outflow of resources will be
required to settle the obligation. A contingent liability also arises
in extremely rare cases where there is a liability that cannot be
recognized because it cannot be measured reliably.
17. Preliminary Expenses (AS 26)
Preliminary Expenditure is written off fully during the year under its
occurance as per As 26.
FOR, PRADEEP SINGHI & ASSOCIATES
Chartered Accountants
FRN. 108029W
SD/-
PRADEEP KUMAR SINGHI
Proprietor
Date: 20/05/2015 M. NO. 024612
Place: Surat
Mar 31, 2014
I have audited the accompanying financial statements of R & B DENIMS
LIMITED, which comprise the Balance Sheet for the year ended on 31st
March, 2014, and the Statement of Profit and Loss and Cash Flow
Statement for the same period, 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") read with General Circular
15/2013 dated 13.09.2013 of the Ministry of Corporate Affairs in
respect of Section 133 of the Companies Act, 2013. 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
My responsibility is to express an opinion on these financial
statements based on my audit. I conducted my audit in accordance with
the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that I 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.
I believe that the audit evidence I have obtained is sufficient and
appropriate to provide a basis for my audit opinion.
Auditor''s Opinion:
In my opinion and to the best of my information and according to the
explanations given to me, 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, 2014;
b) in the case of the Profit and Loss Account, of the profit/ loss for
the year ended on 31st March, 2014; and
c) in the case of the Cash Flow Statement, of the cash flows for the
period from 1st April, 2013 to 31st March, 2014 on that date
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2004 issued
by the Company Law Board in terms of Section 227(4A) of the Companies
Act, 1956, I enclose in the "Annexure A" a statement on the matters
specified in paragraphs 4 and 5 of the said order.
2. As required by section 227(3) of the Act, we report that:
a) I have obtained all the information and explanations, which to the
best of my knowledge and belief were necessary for the purpose of my
audit.
b) In my opinion proper books of accounts as required by Law have been
kept by the company, so far as it appears from my examination of the
books.
c) The Balance Sheet, Profit & Loss Account and cash flow referred to
in the report are in agreement with the books of accounts.
d) In my opinion, the Balance Sheet, Statement of Profit & Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
sub section (3C) of section 211 of the Companies Act, 1956 read with
General Circular 15/2013 dated 13.09.2013 of the Ministry of Corporate
Affairs in respect of Section 133 of the Companies Act, 2013.
e) According to the information and explanations given to me and 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 disqualified as on 31st March, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
As required by the Companies (Auditor''s Report) Order, 2004 and
according to the information and explanations given to us during the
course of audit and on the basis of such checks as were considered
appropriate, I report that:
ANNEXURE "A" TO THE AUDITORS REPORT
1 Fixed Assets :
a) The company is maintaining proper records showing full particulars
including quantitative details and situation of fixed assets.
b) As explained to me, the assets have been physically verified by the
management in accordance with a phased program of verification, which
in my opinion is reasonable, considering, the size and nature of its
business. The frequency of verification is reasonable and no material
discrepancies have been noticed on such physical verification.
c) The Company has not disposed of the substantial part of fixed assets
during the period covered under Audit, which affect the going concern
assumption.
2 Inventory:
a) As informed to me, the stock of finished goods, work-in-progress,
stores, spare-parts & raw materials have been physically verified by
the management at reasonable intervals during the period covered under
Audit, except material lying with third parties, where confirmations
are obtained. In my opinion the frequency of verification is
reasonable.
b) In my 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 nature of its business.
c) The Company has maintained proper records of inventories. The
discrepancies noticed on the verification of stocks as compared to book
records were not material and these have been properly dealt with in
the books of accounts.
3 Loans & Advances:
a) The company has taken unsecured loans from companies, Firms or other
parties mentioned under the register maintained u/s. 301 of the
companies Act, 1956. There are four such parties and amount of loan
accepted during the period under audit is Rs. 240 lacs. The amount of
loan repaid to eight such parties during the period under audit is Rs.
385 lacs.
b) As per information and explanations given to me, the rate of
interest wherever applicable and other terms and conditions, if
applicable on loan taken are not prima facie prejudicial to the
interest of the Company.
c) The company has not granted loans to companies, Firms or other
parties mentioned under the register maintained u/s. 301 of the
companies Act, 1956.
d) As per information and explanation given to me, no interest is
charged on any loan granted by the company wherever applicable. Other
terms and conditions, if applicable on loan given are not prima facie
prejudicial to the interest of the company.
e) The parties to whom advances in the nature of loans have been given
are repaying the principles amounts as stipulated wherever applicable.
f) There are no overdue amounts of loans taken or granted by the
company.
4 Internal control procedure :
In my opinion and according to the information and explanations given
to me, internal control procedure for the purchase of stores, raw
materials including components, plant and machinery, equipment and
other assets and for the sale of goods are adequate with the size of
the company and nature of its business. During the course of my audit,
no major weakness has been noticed in the internal controls.
5 Transaction with Parties u/s. 301:
a) The Transaction made in pursuance of contracts or arrangements that
need to be entered into the register maintained u/s. 301 of the
companies act, 1956 have been recorded in register.
b) In my opinion and according to the information and explanation given
to me, the transaction exceeding Rs.5 Lacs each have been made at
price, which are reasonable having regards to prevailing market price
at the relevant time.
6 Public Deposits:
The company has not accepted deposits from public; hence the clause is
not applicable.
7 Internal Audit System:
In my opinion, the company has an adequate internal audit system
commensurate with its size and nature of its business.
8 Cost Records :
I have reviewed the books of accounts maintained by the Company as
prescribed by the Central Government for maintenance of cost records
u/s. 209(1)(d) of the Companies Act, 1956 and I am of the opinion that
prima facia the prescribed accounts and records have been made and
maintained. However, I have not carried out a detail examination of the
accounts and records.
9 Statutory Dues:
i) According to the information and explanation given to me and the
records examined by me, the company is generally regular in depositing
undisputed statutory dues including Income tax, Service Tax, Wealth
tax, Sales tax, Custom duty, Excise Duty, Provident Fund, Cess and any
other statutory dues with appropriate authorities. According to the
information and explanations given to me, there are no undisputed
amounts payable in respect of Statutory dues which has remained
outstanding as at 31st March, 2014 for a period more than six months
from the date they became payable.
ii) According to the information and explanation given to me, there is
no undisputed amount payable in respect of such statutory dues.
10 Accumulated/Cash Losses :
The company has accumulated losses at the end of the period covered
under Audit and it has not incurred any cash losses in the current and
immediate preceding financial year.
11 Default in Repayment of Dues to Banks/Financial Institution etc :
The company has not defaulted in repayment of dues to the Financial
Institution or Banks.
12 Granting of Loan & Advances :-
According to the information and explanations given to me, the Company
has not granted any unsecured or secured Loan & Advances on the basis
of securities by way of pledge of shares, debentures and other
securities.
13 Chit Fund/Nidhi/Mutual Fund:
The provisions of any Special Statute applicable to Chit Fund, Nidhi,
Mutual Benefit Fund/ Societies are not applicable to the company.
14 Dealing or Trading in Shares etc :
As explained to me by the management, the company has not purchased
securities / shares of the Govt. and other companies for investment
purpose.
15 Guarantee Given by Company :
As explained to me, the company has not given any guarantee.
16 Utilization of Term Loans:
In my opinion and according to the information and explanations given
to me, the term loans are applied for the purpose for which the loans
were obtained.
17 Application of Short Term Fund for Long Term Investment and vice
versa :
According to the information and explanations given to me and on an
overall examination of the balance sheet of the company, I report that
short term funds have not been used to finance long term investments
and vice versa.
18 Preferential Allotment of Shares :
During the period covered under Audit, the company has issued 5,00,000
equity shares at Rs. 10 each with securities Premium Rs. 20 each on
29-04-2013 and 15,00,000 equity shares at Rs. 10 each with securities
Premium Rs. 20 each on 28-06-2013.
19 Creation of Securities for Debenture Issued:
The Company has not issued any Debenture during the period covered
under Audit.
20 End Use of Money:
The Company has not raised any money by way of public issues during the
period covered under Audit.
21 Fraud noticed or Reported :
As per information & explanation given to me, no fraud on or by the
company has been noticed or reported during the course of my audit.
FOR, PRADEEP SINGHI & ASSOCIATES
Chartered Accountants
FRN. 108029W
PRADEEP KUMAR SINGHI
Proprietor
Date: 25/08/2014 M. NO. 024612
Place: Surat