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Orbit Exports Ltd.

BSE: 512626 Sector: Industrials
NSE: ORBTEXP ISIN Code: INE231G01010
BSE 00:00 | 21 Feb 86.30 0
(0.00%)
OPEN

92.40

HIGH

92.60

LOW

85.10

NSE 00:00 | 22 Feb 87.40 0.25
(0.29%)
OPEN

89.00

HIGH

90.00

LOW

87.05

OPEN 92.40
PREVIOUS CLOSE 86.30
VOLUME 313
52-Week high 163.90
52-Week low 85.10
P/E 9.00
Mkt Cap.(Rs cr) 244
Buy Price 85.20
Buy Qty 9.00
Sell Price 91.00
Sell Qty 1.00
OPEN 92.40
CLOSE 86.30
VOLUME 313
52-Week high 163.90
52-Week low 85.10
P/E 9.00
Mkt Cap.(Rs cr) 244
Buy Price 85.20
Buy Qty 9.00
Sell Price 91.00
Sell Qty 1.00

Orbit Exports Ltd. (ORBTEXP) - Auditors Report

Company auditors report

To 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 2018the Statement of Profit and Loss (including Other Comprehensive Income) the Statement ofCash Flows and the Statement of Changes in Equity for the year then ended and a summaryof the significant accounting policies and other explanatory information (hereinafterreferred to as "standalone financial statements").

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in sub-section 5of section 134 of the Companies Act 2013 ("the Act") with respect to thepreparation of these standalone financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards ("IndAS") specified under section 133 of the Act read with rules made thereunder and therelevant provisions of the Act.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

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 undersub-section 10 of section 143 of the Act and other applicable pronouncements issued by theInstitute of Chartered Accountants of India ("ICAI"). Those Standards andpronouncements require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the standalone financial statements arefree from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone financial statements. The procedures selected depend onthe auditor's judgment including the assessment of the risks of material misstatement ofthe standalone financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the company'spreparation of the standalone financial statements that give a true and fair view in orderto design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the company's directors as well asevaluating the overall presentation of the standalone 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.

Opinion

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 including the Ind AS of the state ofaffairs of the Company as at March 31 2018 and its profits including other comprehensiveincome its cash flows and the changes in equity for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section 11 of section 143 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 sub-section 3 of section 143 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 account 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 (including Other ComprehensiveIncome) the Statement of Cash Flows and the Statement of Changes in Equity dealt with bythis Report are in agreement with the books of account;

d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under section 133 of the Act read with rules madethereunder and relevant provisions of the Act.

e) On the basis of the written representations received from the directors as on March31 2018 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2018 from being appointed as a director in terms of Sub-section 2 ofsection 164 of the Act;

f) With respect to the adequacy of the internal financial controls with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure B"; and

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 2014 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone financial statements - Refer Note 4.03 to the standalonefinancial statements;

ii. The Company did not have any material foreseeable losses on long term contractsincluding derivative contracts; and

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company;

For G. M. Kapadia & Co.
Chartered Accountants
Firm's Registration No: 104767W
Mumbai Atul Shah
Dated: May 30 2018 Partner
Membership No: 39569

ANNEXURE A TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1 under "Report on Other Legal and RegulatoryRequirements" of our report on even date to the members of the Company on thestandalone financial statements for the year ended March 31 2018)

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of its property plant and equipment;

(b) The Company has a regular programme of physical verification of property plant andequipment by which all property plant and equipment of the Company are being verified ina phased manner over a period of three years which in our opinion is reasonable havingregard to the size of the Company and nature of its business. Pursuant to the program aportion of property plant and equipment has been physically verified by the managementduring the year and no material discrepancies were noticed on verification conductedduring the year as compared with the book records; and

(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 fixed assets 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. In respect of inventory lying with thirdparties these have substantially been confirmed by them. In our opinion the frequency ofverification is reasonable: and

(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 that section.

(v) The Company has complied with the directives issued by the Reserve Bank of Indiaand the provisions of section 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 undersub-section 1 of section 148 of the Act for the products manufactured by the Company. Wehave broadly reviewed the books of account maintained and are of the opinion that primafacie the prescribed accounts and records have been made and maintained by the Company.We have not however made a detailed examination of the records with a view to determinewhether they are accurate or complete.

(vii) (a) The Company has generally been regular in depositing undisputed statutorydues including provident fund employees' state insurance income tax sales tax servicetax duty of customs duty of excise value added tax goods and services tax cess andother applicable statutory dues with the appropriate authorities. No undisputed statutorydues payable were in arrears as at March 31 2018 for a period of more than six monthsfrom the date they became payable except income tax of Rs 2.07 lakhs as the company is onthe process of approaching the Assessing Officer with a request to adjust the demandagainst refund of tax receivable in other years; and

(b) The details of dues of income tax sales tax service tax duty of customs duty ofexcise or value added tax or cess which have not been deposited with the concernedauthorities on account of dispute are given below:

Nature of dues Period to which the amount relates Forum where dispute is pending Amount involved (' in Lakhs)
Income Tax A.Y. 2010-11 Commissioner (Appeals) 6.13
Income Tax A.Y. 2013-14 Commissioner (Appeals) 13.43
Income Tax A.Y. 2014-15 Commissioner (Appeals) 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 government 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 no fraud by the Company or on the Company by its officers oremployees has been noticed or reported during the year.

(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 information and explanation given to us theCompany is not a Nidhi Company. Accordingly paragraph 3(xii) of the Order is notapplicable to the Company.

(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 standalone financial statements as required by theapplicable 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 paragraph 3(xvi) 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 any non-cashtransactions with directors. We have been informed that no such transactions have beenentered into with person connected with directors. Accordingly paragraph 3(xv) of theOrder is 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.
Chartered Accountants
Firm's Registration No: 104767W
Atul Shah
Mumbai Partner
Dated: May 30 2018 Membership No: 39569

ANNEXURE B TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 2(f) under "Report on Other Legal and RegulatoryRequirements" of our Independent Auditor's report of even date to the members ofOrbit Exports Limited (Formerly Orbit Exports Limited) on the Standalone FinancialStatements for the year ended March 31 2018)

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 with reference to financial statementsof Orbit Exports Limited ("the Company") as of March 31 2018 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat 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 with reference to financial statementscriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting ("Guidance Note") issued by the Institute of Chartered Accountants ofIndia ("ICAI"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence toCompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to financial statements based on our audit. We conducted our auditin accordance with the Guidance Note and the Standards on Auditing issued by the ICAI anddeemed to be prescribed under sub-section 10 of section 143 of the Act to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the ICAI. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls withreference to financial statements were 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 with reference to financial statements and theiroperating effectiveness. Our audit of internal financial controls with reference tofinancial statements included obtaining an understanding of internal financial controlswith reference to financial statements assessing the risk that a material weaknessexists and testing and evaluating the design and operating effectiveness of internalcontrol based on the assessed risk. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the standalonefinancial 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 systemwith reference to financial statements.

Meaning of Internal Financial Controls with reference to financial statements

A company's internal financial control with reference to financial statements is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control withreference to financial statements includes those policies and procedures that (1) pertainto the maintenance of records that in reasonable detail accurately and fairly reflectthe transactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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 with reference to FinancialStatements

Because of the inherent limitations of internal financial controls with reference tofinancial statements including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls withreference to financial statements to future periods are subject to the risk that theinternal financial control with reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system with reference to financial statements and such internalfinancial controls with reference to financial statements were operating effectively as atMarch 31 2018 based on the internal control with reference to financial statementscriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note.

For G. M. Kapadia & Co.
Chartered Accountants
Firm's Registration No: 104767W
Atul Shah
Partner
Mumbai

Dated: May 30 2018

Membership No: 39569