Financial Review of Bombay Rayon Fashion Limited

BOMBAY RAYON FASHION LIMITED

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(BOMBAY RAYON FASHION LTD.)

1. INTRODUCTION

BRFL (Bombay rayon fashion ltd.) is a  textile company, engaged in the manufacture of a wide range of fabrics and garments from art production facilities. Apart from being the largest Shirt manufacturer in India, they have successfully evolved into a multi-fiber manufacturing company producing fabrics such as Cotton, Polyester, Tencel, Modal, Lycra, Wool and various blends.  They are making every piece of fabric perfect with dyed fabric, printing techniques, finishing, processing, weaving, stitching.

One of the human desires is clothing. A desire to be different. A desire to look beautiful. A desire to be comfortable. A desire to make a statement. That desire is fulfilled by BRFL. The reason of success for BRFL is their customers. The fabric manufacturing facilities of BRFL is about 100 million pieces per annum and garment manufacturing facilities of 60 million pieces per annum, being expanded to 90 million pieces per annum and their employees are approximately 36000.BRFL is today one of the most reputed after brands in the Indian as well as International fashion markets.

Bombay Rayon Fashions Ltd., incorporated in the year 1992, is a Mid Cap company (having a market cap of Rs 1885.75 Cr.) operating in Textiles sector.

Bombay Rayon Fashions Ltd. key Products/Revenue Segments include Fabrics which contributed Rs 3043.32 Cr to Sales Value (86.13% of Total Sales), Garments which contributed Rs 373.62 Cr to Sales Value (10.57% of Total Sales), Others which contributed Rs 98.94 Cr to Sales Value (2.80% of Total Sales), Yarn which contributed Rs 17.16 Cr to Sales Value (0.48% of Total Sales), for the year ending 31-Mar-2015.

For the quarter ended 31-Dec-2015, the company has reported a Standalone sales of Rs. 1093.75 Cr., up 10.10% from last quarter Sales of Rs. 993.43 Cr. and up 24.28% from last year same quarter Sales of Rs. 880.07 Cr. Company has reported net profit after tax of Rs. 4.86 Cr. in latest quarter.

The company’s management includes Mrs.Prachi Deshpande, Mrs.Prachi Deshpande, Mr.A Arumugham, Mr.A R Mundra, Mr.Aman Agrawal, Mr.Janardan Agrawal, Mr.John Mathew, Mr.M M Agrawal, Mr.Narayanan Raja, Mr.Naseer Ahmed, Mr.Prashant Agrawal, Mr.Suresh Vishwasrao, Ms.Prachi Deshpande.

.BRFL is one of India’s most dynamic and professionally managed textile groups. They have renowned the fabric industry worldwide

Mission

At BRFL, they want their fabric to be more exclusive and efficient with newest designs and tremendous fabric quality. Their goal is to provide the shortest turn-around time in production and supply. We build towards better employee work culture, 100% customer satisfaction and stronger supplier and stakeholder relations.

 Vision

Our vision is to become an all-inclusive Global Fashion Apparel Brand, catering to the ever- changing fashion industry of direct retail customers and create long term associations with transparent business offerings.

BUSINESS OVERVIEW:                                                      

After restructuring the debt, the operations of the company has started improving and as a result the Company has earned profit of v 7.14 crores for the quarter ended on 31st March, 2015 after a loss for consequent 7 quarters since 30th June, 2013. The necessary terms of restructuring package has been complied with including security creation for securing the loans availed from the Banks/ financial institutions. Recently, the company has launched its new product range in Linen fabric and also succeeded in getting back the major overseas market The order book for both garments and fabrics has come at comfortable level.

Fabric Every thread woven at Bombay Rayon Fashions Limitedis a part of an incredible range of fabrics that BRFL has to offer. Each fabric has one inherent quality – Comfort their promise to manufacture the finest fabrics inspires us to put in that extra effort to create magic. They  have in-house multi fiber capabilities to produce pure fabrics and their blends. Their  motto is "Contemporary clothing for the new gen!" .

Retail Guru, a renowned apparel brand in Italy has been a subsidiary of BRFL since 2008. Guru has stores in 18 countries around the World, including Italy, Spain, France, Germany, Holland, Belgium, Luxemburg, Greece, England, Portugal, the Middle East, Turkey, Russia, Ukraine, Austria, Switzerland, the Canary Islands, Scandinavia, China and India.

Apparel  Comfortable, durable and stylish are the inherent qualities of the range of apparels available. Admiration is guaranteed with BRFL apparels.  Apparels from Bombay Rayon Fashions Limited are a creative exploration of the same comfort brought in by our fabrics.

Yarn In 2010 Bombay Rayon Fashions Ltd. completed its vertical integration in the textile industry with the acquisition of a yarn manufacturing company of great repute, STI India Ltd, thus making BRFL one of the privileged few to have the capability of producing everything from yarn to garment.

Their Yarn division is well known for Production of world class cotton yarn and knitted grey fabric, quality consciousness, fair business practices, modernization, environmental consciousness, social awareness, ultra-modern plant equipped with sophisticated high-tech machinery and high calibre personnel & a great work culture

Revenue Recognition

a. Domestic sales are accounted for on dispatch of goods to customers. Gross Sales are net of sales returns and Excise Duty.

b. Export sales are accounted for on the basis of dates of Bill of Lading. Gross Sales are inclusive of incentives/benefits, and net of sales returns.

c. Revenue from Job work is recognized when services are rendered..

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1. LIST OF COMPETITORS AND THEIR ANALYSIS:

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Interpretation : From the above chart, we came to conclude that our company BRFL as  compare to the competitors are in a sound position in terms of their value of the firm as well as the market capitalization and as we see the value of their total assets(current+fixed) are 7 times more than their competitors. But as far as their net profit is concerned that is pretty much low as compared to their rivals are performing. So their market turnover is more than rivals but their operating profits are not sound. This company has good market capital but to achieve this market capital this company is using debt which means company financial condition is not good as it is unable to earn maximum profit and unable to maintain its customer needs.