The Members of Orbit Exports Limited Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Orbit ExportsLimited ("the Company") which comprise the Balance sheet as at March 31 2017Statement of Profit and Loss the Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparationand presentation of these standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under section 133 of the Act read with relevant rulesissued thereunder. This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.
We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified undersection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at March 31 2017 and its profit and its cash flows for the period ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")as amended issued by the Central Government of India in terms of section 143(11) of theAct we give in the "Annexure A" a statement on the matters specified in theparagraph 3 and 4 of the 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 bestof our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion proper books of accounts as required by law have been kept by theCompany so far as it appears from our examination of those books.
(c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of accounts.
(d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under section 133 of the Act read with relevant rulesissued thereunder.
(e) On the basis of the written representations received from the directors as on March31 2017 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2017 from being appointed as a director in terms of section 164(2) of theAct.
(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B".
(g) With respect to the other matters to be included in the Auditor's Report inaccordance with rule 11 of the Companies (Audit and Auditors) Rules 2014in our opinionand to the best of our information and according to the explanations given to us:
i. The Company does not have any pending litigations which would impact its financialposition;
ii. The Company does not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses;
iii. There has been a delay of 2 days in transferring amounts of unpaid dividend whichwas required to be transferred to the Investor Education and Protection Fund as explainedin note 43 to the standalone financial statements; and
iv. The Company has provided requisite disclosures in its standalone financialstatements as to holdings as well as dealings in Specified Bank Notes during the periodfrom November 08 2016 to December 30 2016 and these are in accordance with the books ofaccounts maintained by the Company. Refer Note 16 to the standalone financial statements.
| ||For G. M. Kapadia & Co. |
| ||Chartered Accountants |
| ||Firm's Registration No: 104767W |
| ||Atul Shah |
| ||Partner |
| ||Membership No: 039569 |
|Place : Mumbai. || |
|Dated : May 22 2017 || |
Annexure A to the Independent Auditor's Report
Referred to in paragraph 1 under the heading "Report on Other Legal and RegulatoryRequirements" of our report on even date to the financial statements of the Companyfor the year ended March 31 2017:
(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of its property plant and equipment.
(b) As explained to us all the property plant and equipment are physically verifiedby the management in a phased periodical manner which in our opinion is reasonablehaving regard to the size of the Company and nature of its assets. No materialdiscrepancies were noticed on such physical verification carried out during the year.
(c) According to the information and explanation given to us and on the basis of ourexamination of records of the Company the title deeds of immovable properties classifiedas property plant and equipment are held in the name of the Company.
(ii) (a) The inventory (excluding stocks with third parties) has been physicallyverified by the management during the year. Confirmation from third parties have beenreceived in substantial cases in respect of inventory lying with them. In our opinionthe frequency of verification is reasonable.
(b) The discrepancies noticed on physical verification of inventory as compared to bookrecords were not material and have been appropriately dealt with in the books of accounts.
(iii) The Company has not granted any loans secured or unsecured to companies firmslimited liability partnerships or other parties covered in the register maintained undersection 189 of the Act. Accordingly para 3 (iii)(a) to (c) of the Order regarding termsand conditions of such loans and repayment of such loans etc. are not applicable to theCompany.
(iv) The Company has not granted any loans or provided any guarantees or security tothe parties covered under section 185 of the Act. The Company has complied with theprovisions of section 186 of the Act in respect of investments made or loans or guaranteeor security provided to the parties covered under section 186.
(v) The Company has complied with the directives issued by the Reserve Bank of Indiaand the provisions of sections 73 to 76 or any other relevant provisions of the Act andthe rules framed there under to the extent applicable. We are informed by the managementthat no order has been passed by the Company Law Board or National Company Law Tribunal orReserve Bank of India or any court or any other tribunal in this regard.
(vi) The Central Government has prescribed maintenance of cost records under section148(1) of the Act for the products manufactured by the Company. We have broadly reviewedthe books of account maintained and in our opinion prima facie the prescribed accountsand records have been made and maintained by the Company. We have not however made adetailed examination of the records with a view to determine whether they are accurate orcomplete.
(vii) (a) The Company is generally regular in depositing undisputed statutory duesincluding provident fund employees' state insurance income tax sales tax service taxduty of customs duty of excise value added tax cess and other applicable statutory dueswith the appropriate authorities. No undisputed statutory dues payable were in arrears asat March 31 2017 for a period of more than six months from the date they became payable.
(b) The details of dues of income tax sales tax service tax duty of customs duty ofexcise or value added tax or cess to the extent applicable which have not been depositedwith the concerned authorities on account of dispute are given below:
|Nature of dues ||Period to which the amount relates ||Forum where dispute is pending ||Amount involved (Rs. in Lakhs) |
|Income Tax ||A. Y. 2013-14 ||Commissioner Appeal ||13.43 |
|Income Tax ||A. Y. 2014-15 ||Commissioner Appeal ||94.27 |
|Duty drawback ||A. Y. 2014-15 ||Dy. Commissioner of Customs ||1.83 |
(viii) The Company has not defaulted in repayment of dues to any financialinstitutions banks or debenture holders.
(ix) The Company has raised term loans during the year which have been applied for thepurpose for which they were raised.
(x) To the best of our knowledge and belief and according to the information andexplanations given to us we report that no fraud by or on the Company by its officers oremployees has been noticed or reported during the year.
(xi) The managerial remuneration has been paid in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the Act.
(xii) In our opinion the Company is not a Nidhi Company. Therefore para 3(xii) of theOrder are not applicable to the Company.
(xiii) In our opinion all transactions with related parties are in compliance withsection 177 and 188 of the Act and the details have been disclosed in the financialstatements as required by the applicable accounting standards.
(xiv) Based on our audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to information and explanations givenby the management the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year.Accordingly para 3(xiv) of the Order is not applicable to the Company.
(xv) Based on our audit procedures performed for the purpose of reporting the true andfair view of the financial statements the Company has not entered into non-cashtransactions with directors. We have been informed that no such transaction have beenentered into with person connected with directors. Accordingly para 3 (xv) of the Orderis not applicable to the Company.
(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.
For G. M. Kapadia & Co.
Firm's Registration No: 104767W
Membership No: 039569
Place : Mumbai.
Dated : May 22 2017
Annexure B to the Independent Auditors' Report
Referred to in paragraph 2(f) under the heading "Report on Other Legal andRegulatory Requirements" of our report on even date to the financial statements ofthe Company for the year ended March 31 2017:
Report on the Internal Financial Controls under section 143(3)(i) of the Act
We have audited the internal financial controls over financial reporting of OrbitExports Limited ("the Company") as of March 31 2017 in conjunction with ouraudit of the standalone financial statements of the Company for the period ended on thatdate.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India ("ICAI"). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Act.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting("the Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the Institute of Chartered Accountants of India. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A Company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.
| ||For G. M. Kapadia & Co. |
| ||Chartered Accountants |
| ||Firm's Registration No: 104767W |
| ||AtulShah |
| ||Partner |
| ||Membership No: 039569 |
|Place : Mumbai || |
|Dated : May 22 2017 || |