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Orient Beverages Ltd.

BSE: 507690 Sector: Others
NSE: N.A. ISIN Code: INE247F01018
BSE LIVE 14:54 | 18 Oct 121.00 -1.80
(-1.47%)
OPEN

124.95

HIGH

124.95

LOW

118.00

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 124.95
PREVIOUS CLOSE 122.80
VOLUME 265
52-Week high 186.10
52-Week low 104.00
P/E 87.05
Mkt Cap.(Rs cr) 26
Buy Price 118.00
Buy Qty 128.00
Sell Price 121.00
Sell Qty 53.00
OPEN 124.95
CLOSE 122.80
VOLUME 265
52-Week high 186.10
52-Week low 104.00
P/E 87.05
Mkt Cap.(Rs cr) 26
Buy Price 118.00
Buy Qty 128.00
Sell Price 121.00
Sell Qty 53.00

Orient Beverages Ltd. (ORIENTBEVERAGES) - Auditors Report

Company auditors report

To the Members of

ORIENT BEVERAGES LIMITED Report on the Financial Statements

We have audited the accompanying financial statements of Orient Beverages Limited (theCompany) which comprise the Balance Sheet as at March 31 2017 the Statement of Profitand Loss and Cash Flow Statement for the year then ended and a summary of significantaccounting policies and other explanatory information.

Management's Responsibility for the 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 preparation andpresentation of these financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand 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.

Auditors' Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. We have taken in to account the provisions of the Act and the Rules made thereunder including the Accounting Standards and matters which are required to be included inthe Audit Report. We conducted our audit in accordance with the Standards on Auditingspecified under section 143(10) of the Act. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatements.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the entity's preparation and fairpresentation of the financial statements in order to design audit procedures that areappropriate in the circumstances but not for the purpose of expressing an opinion on theeffectiveness of the entity's internal control. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by management as well as evaluating the overall presentation of thefinancial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India: (a) In the case of the Balance Sheet of the stateof affairs of the Company as at March 31 2017; (b) In the case of the statement of Profitand Loss of the profit for the year ended on that date; and (c) In the case of the CashFlow Statement of the cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirement

1. As required by the Companies (Auditor's Report) Order 2016 (the Order) issued bythe Central Government of India in terms of sub-section (11) of section 143 of the Act wegive in the Annexure A a statement on the matters specified in paragraphs 3 and 4 of theOrder.

2. As required by section 143(3) of the Act we report that: a. We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purpose of our audit; b. In our opinion proper books ofaccount as required by law have been kept by the Company so far as appears from ourexamination of those books and proper returns adequate for the purpose of our audit havebeen received from branches not visited by us. c. The Balance Sheet Statement of Profitand Loss and Cash Flow Statement dealt with by this Report are in agreement with thebooks of account and returns. d. In our opinion the aforesaid Balance Sheet theStatement of Profit and Loss and Cash Flow Statement comply with the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. e. The Company has not entered into any such financial transactions ormatters which have any adverse effect on the functioning of the company. f. On the basisof written representations received from the directors as on March 31 2017 and taken onrecord by the Board of Directors none of the directors is disqualified as on March 312017 from being appointed as a director in terms of sub-section (2) of section 164 of theCompanies Act 2013. g. With respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate report in 'Annexure B'; and h. With respect to the other matters tobe included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit andAuditor's) Rules 2014 in our opinion and to the best of our information and according tothe explanations given to us: i. The company has disclosed the impact of pendinglitigations on its financial position in its financial statements- Refer note 2.28 (a) and(b) of the notes to Financial Statements. ii. There were no material foreseeable losses onthe long term contracts including derivative contracts and as such the Company was notrequired to make any provision for the same under the applicable law or accountingstandards. iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company. iv. The Companyhas provided requisite disclosures as to the holdings as well as dealings in SpecifiedBank Notes during the period from 8th November 2016 to 30th December 2016 and these arein accordance with the books of accounts maintained by the company - Refer note 2.46 ofthe Notes to Financial Statements.

For TIWARI & COMPANY

Chartered Accountants

Firm Regn. No. 309112E

P. Tiwari

Partner Membership No. 16590

107/1 Park Street Kolkata - 700016 Dated: 30th May 2017

Annexure A to Independent Auditor's Report

Referred to in paragraph 1 under the heading of Report on Other Legal and RegulatoryRequirement of our report of even date

(i) In respect of its Fixed assets: a. The Company has maintained proper recordsshowing full particulars including quantitative details and situation of its fixed assets.b. As explained to us all the fixed assets of the Company have been physically verifiedby the management in phased periodical manner which in our opinion is reasonable havingregard to the size of the Company and nature of its assets. No material discrepancies havebeen noticed on such physical verification. c. According to the information andexplanations given to us and on the basis of our examination of the records of theCompany the title deeds of immovable properties are held in the name of the Company.

(ii) The inventories of the Company have been physically verified during the year bythe management. In our opinion the frequency of verification is reasonable and asexplained to us there was no material discrepancies noticed on physical verification ofinventories.

(iii) The company has not granted loans secured or unsecured to Companies firmslimited liability partnerships or other parties covered in the register maintained u/s 189of the Companies Act 2013 hence sub-clause (a)(b)(c) of clause (iii) of paragraph 3 ofthe order are not applicable.

(iv) The company has complied with the provisions of section 185 and section 186 of theCompanies Act 2013 in respect of loans and investments made and guarantees and securityprovided by it as applicable.

(v) According to the information and explanations given to us the Company has notaccepted any deposit in terms of directions issued by the Reserve Bank of India and theprovisions of section 73 to 76 or any other relevant provisions of the Companies Act andthe rules framed there under.

(vi) The Central Government has not prescribed maintenance of cost records underSection 148(1) of the Companies Act 2013 for any of the products of the Company.

(vii) In respect of statutory dues: a. According to the records of the Companyundisputed statutory dues including Provident Fund Employees' State InsuranceIncome-Tax Sales Tax Service Tax Duty of Customs Duty of Excise Value Added TaxCess and other statutory dues have been generally regularly deposited with theappropriate authorities and no undisputed amounts payable in respect of statutory dueswere in arrears as at 31st March 2017 for a period of more than six months from the datethey became payable. b. According to the information and explanations given to us thereare no material dues of income tax sales tax service tax duty of customs duty ofexcise or value added tax which have not been deposited with the appropriate authoritieson account of any dispute. However according to information and explanations given to usthe following dues of income tax sales tax duty of excise service tax and value addedtax have not been deposited by the Company on account of disputes as at 31st March 2017:

Nature of dues Amount due Forum where pending For the period
()
1. Municipal Tax 15035973/- Kolkata Municipal Corporation
[Refer Note No. 2.29] 01.07.2006 to 30.09.2015
2. Interest and penalty on municipal tax 16399302/- Kolkata Municipal Corporation 01.07.2006 to 31.03.2017
[Refer Note No. 2.29]
3. Excise Duty 652293/- Central Excise Tribunal 1977-78 to 1982-83
4. Service Tax on Rent 6479531/- Hon'ble High Court at Calcutta 01.06.2007 to 30.06.2016
[Refer Note No. 2.28(b)]
5. Service Tax on Electricity Charges 7480838/- Disputed with the tenants 01.07.2012 to 31.03.2017
(Refer Note No. 2.40)

(viii) The company has not defaulted in repayment of loans or borrowings to financialinstitutions banks government or dues to debenture holders.

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3(ix) of the Order is not applicable.

(x) According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

(xi) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid / provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V to the Act.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a nidhi company.

Accordingly paragraph 3(xii) of the Order is not applicable.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with Sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

(xiv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him.

Accordingly paragraph 3(xv) of the Order is not applicable.

(xvi) The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934.

For TIWARI & COMPANY

Chartered Accountants

Firm Regn. No. 309112E

P. Tiwari

Partner Membership No. 16590

107/1 Park Street Kolkata - 700016 Dated: 30th May 2017

Annexure B to Independent Auditor's Report

Report on the Internal Financial Controls under Clause (i) of sub-section 3 of Section143 of the Companies Act 2013 ('the Act')

We have audited the internal financial controls over financial reporting of OrientBeverages Limited ('the Company') as of 31 March 2017 in conjunction with our audit ofthe standalone financial statements of the Company for the year ended on that date.

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'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to the Company's policies the safeguarding of its assetsthe prevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Annexure B to Independent Auditor's Report

Auditors' Responsibility

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 deemed to beprescribed under Section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting were established and maintained and if suchcontrols operated 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 auditors' judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the Company's internal financial controls system overfinancial 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 financial reporting includes those policiesand procedures that (1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of theCompany; (2) provide reasonable assurance that transactions are recorded as necessary topermit preparation of financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the Company are being madeonly in accordance with authorizations of the Management and directors of the Company; and(3) provide reasonable assurance regarding prevention or timely detection of unauthorizedacquisition use or disposition of the Company's assets that could have a material effecton 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.

Opinion

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 31st March 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 TIWARI & COMPANY

Chartered Accountants

Firm Regn. No. 309112E

P. Tiwari

Partner Membership No. 16590

107/1 Park Street Kolkata - 700016 Dated: 30th May 2017