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Orient Bell Ltd.

BSE: 530365 Sector: Consumer
NSE: ORIENTBELL ISIN Code: INE607D01018
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OPEN 320.75
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VOLUME 1514
52-Week high 361.00
52-Week low 72.35
P/E 84.84
Mkt Cap.(Rs cr) 467
Buy Price 324.70
Buy Qty 20.00
Sell Price 324.95
Sell Qty 20.00
OPEN 320.75
CLOSE 320.60
VOLUME 1514
52-Week high 361.00
52-Week low 72.35
P/E 84.84
Mkt Cap.(Rs cr) 467
Buy Price 324.70
Buy Qty 20.00
Sell Price 324.95
Sell Qty 20.00

Orient Bell Ltd. (ORIENTBELL) - Auditors Report

Company auditors report

To the Members of ORIENT BELL LIMITED

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements ofOrient Bell Limited ("the Company") which comprise the balance sheet as atMarch 31 2020 and the Statement of Profit and Loss (including Other ComprehensiveIncome) Statement of Changes in Equity and Statement of Cash Flows for the year thenended and notes to the standalone financial statements including a summary ofsignificant accounting policies and other explanatory information (hereinafter referred toas "the standalone financial statements").

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the Indian AccountingStandards prescribed under section 133 of the Act read with the Companies (IndianAccounting Standards) Rules 2015 as amended ("Ind AS") and accountingprinciples generally accepted in India of the state of affairs of the Company as at March31 2020 the Profit (financial performance including other comprehensive income) changesin equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements inaccordance with the Standards on Auditing (SAs) specified under section 143(10) of theAct. Our responsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India (ICAI) together with the ethicalrequirements that are relevant to our audit of the standalone financial statements underthe provisions of the Act and the Rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our opinion on the standalone financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report w.r.t the Company:

Key Audit Matters How our audit addressed the key audit matter
1 Accounting for Customer Schemes discounts and other trade promotional expenditure Our audit work in respect of accounting for customer schemes discounts and other trade promotional expenditure comprised
(Refer to the accompanying Note 23 forming integral part of the standalone financial statements) a combination of substantive testing control testing and an assessment of the Company's disclosures in this regard. The audit procedures include the following steps:
In line with normal industry practice and overall objective of increase in the revenue the Company has varied incentive programs and discount policies in place. These include volume based rebates and schemes and trade spend commitments which are driven by customers achieving sales volume targets agreed with the Company over a pre-determined period. a) Substantive testing:
These rebates and schemes on sales are accounted for as a deduction from revenue and recognized in the period to which it relates in accordance with the customer agreement. - Tested a sample of underlying agreements to obtain evidence in support of amount and timing of recognition of both customer rebates & other promotional expenditure. This involved evaluating whether the amount &timing of recognition was consistent with the contractual arrangements.
This area was significant to our audit because: - Critically assessed the judgements taken by the Company in estimating year end accruals for amounts owing to customers. This included retrospective analysis/tests to assess the accuracy of the accruals in previous years alongside the use of key assumptions of rebate/ discount terms and in the case of volume rebates the level of sales likely to occur in the period under audit with reference to historic events.
- those areas are subject to judgmental estimates and assessments that are material; and
- these expenses vary with regards to the nature and timing of the activity to which it relates - Held discussions with the sales teams to understand the complexities if any of these agreements and any unusual trends in the year.
Our focus was on assessing the accuracy of the expense charged whether the amount recognized were recorded in the appropriate period and the completeness of the expense. - Tested post-year end credit notes issued and debit notes received where applicable to determine whether specific promotions were appropriately provided for as at the reporting date at the appropriate amount.

 

b) Controls testing: Wherever appropriate our substantive work was supplemented by controls testing work which encompassed understanding evaluating and testing key controls in respect of the approval of customer rebates discounts and other trade promotional expenditure.
Our procedures as mentioned above did not identify any findings that are significant for the financial statements as whole in respect of accounting for customer schemes discounts and other trade promotional expenditure.
2 Accounting presentation and disclosure of Leases as per Ind AS 116: Leases Our procedure in relation to appropriateness of judgements
accounting presentation and disclosure of leases on adoption
of Ind AS 116 include:
(Refer to the accompanying Note 3(a)(vi) and Note 35 forming integral part of the standalone financial statements)
a) Substantive testing:
The Company has adopted the Ind AS 116-"Leases" effective from April 1 2019. The application and transition to this accounting standard is complex and is an area of focus in our audit since the Company has a large number of leases with different contractual terms. • Assessed the Company's evaluation on the identification of leases based on its contractual agreement with the lessor(s);
• Evaluated the reasonableness of the discount rates applied in determining the lease liabilities;
Ind AS 116 introduces a new lease accounting model wherein lessees are required to recognize in the balance sheet a right-of-use (ROU) asset and a lease liability arising from a lease. • Upon transition as at 1 April 2019:
- Evaluated the method of transition and related adjustments;
- Tested completeness of the lease data by reconciling the Company's operating lease commitments to data used in computing ROU asset and the lease liabilities.
The lease liabilities are initially measured by discounting future lease payments during the lease term as per the contract/ arrangement. Adoption of the standard involves significant judgements and estimates including determination of the discount rates and the lease term. • On a statistical sample we performed the following procedures:
Additionallythestandardmandatesdetaileddisclosures in respect of such transition.
- assessed the key terms and conditions of each lease with the underlying lease contracts; and
- evaluated computation of lease liabilities and challenged the key estimates such as discount rates and the lease term.
• Assessed and tested the presentation and disclosures relating to Ind AS 116 including disclosures relating to transition.
b) Controls testing: Wherever appropriate our substantive work was supplemented by controls testing work which encompassed understanding evaluating and testing key controls in respect of lease agreements including its terms and conditions.
Our procedures as mentioned above did not identify any findings that are significant for the financial statements as whole in respect of accounting presentation and disclosure of Leases on adoption of Ind AS 116.
3. Judgment in valuation of deferred income tax positions Our procedure in relation to the appropriateness of judgements in valuation and accounting of deferred income tax include:
(Refer to the accompanying Note 19 forming integral part of the standalone financial statements) a) Substantive testing:
The Company's deferred income tax assets are netted with deferred income tax liabilities as at March 31 2020. Under Ind AS the Company is required to annually determine the valuation of deferred tax positions. This area was significant to our audit because of the subjectivity of the components forming part of deferred income tax assets/liabilities including assumptions that are affected by expected future market or economic conditions and the estimates/actual position which effects the reversal of deferred taxes. • Evaluated computation of deferred income tax and challenged the key estimates such as tax rates;
• Evaluated the assumptions and methodologies used by the Company for the purpose of calculation of deferred taxes;
• Assessed the recoverability of deferred tax assets of the Company by reviewing their profitability management's forecasts and local fiscal developments;
• Projections were assessed using a number of scenarios to cover reasonable changes in the assumptions underlying the projections. These changes mainly relate to variations in revenue growth percentages and operating margin percentages. The deferred tax assets are only recognized to the extent that it is considered probable that future taxable profits will be available against which these deferred tax assets can be utilized;
• Assessed and tested the adequacy of the Company's disclosures on deferred income tax positions and assumptions used;
• Involved our tax professionals with specialized skills to evaluate the correctness and reasonableness of the calculations judgements and estimates applied in determining deferred income tax;
• Assessed Company's disclosures in respect of deferred income tax.
b) Controls testing: Wherever appropriate our substantive work was supplemented by controls testing work which encompassed understanding evaluating and testing key controls in respect of judgement estimates calculation and presentation of deferred income tax.
Our procedures as mentioned above did not identify any findings that are significant for the financial statements as whole in respect of judgement estimates calculation and presentation of deferred income tax as per Ind AS 12.

Information Other than the Standalone Financial Statements andAuditor's Report Thereon

The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the annualreport but does not include the standalone financial statements and our auditor'sreport thereon.

Our opinion on the standalone financial statements does not cover theother information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained in the audit or otherwise appears to be materially misstated. Ifbased on the work we have performed we conclude that there is a material misstatement ofthis other information we are required to report that fact. We have nothing to report inthis regard.

Responsibility of Management and Those Charge with Governance for theStandalone Financial Statements

The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Act with respect to the preparation of these standalonefinancial statements that give a true and fair view of the financial position financialperformance total comprehensive income changes in equity and cash flows of the Companyin accordance with the Ind AS and other accounting principles generally accepted in India.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding of the assets of the Company and forpreventing 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. In preparing the standalone financialstatements the Board of Directors is responsible for assessing the Company's abilityto continue as a going concern disclosing as applicable matters related to goingconcern and using the going concern basis of accounting unless Board of Directors eitherintends to liquidate the Company or to cease operations or has no realistic alternativebut to do so. Those Board of Directors are also responsible for overseeing theCompany's financial reporting process.

Auditor's Responsibilities for the Audit of the StandaloneFinancial Statements

Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue 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 auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

• Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3) (i) of the Act we are also responsible for expressing our opinion onwhether the Company has adequate internal financial controls with reference to financialstatements in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor'sreport to the related disclosures in the standalone financial statements or if suchdisclosures are inadequate to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor's report. However future events orconditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation. We communicate with those charged with governance regardingamong other matters the planned scope and timing of the audit and significant auditfindings including any significant deficiencies in internal control that we identifyduring our audit. We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Other Matter

Due to the outbreak of COVID-19 pandemic the consequent nationwidelockdown commencing from March 23 2020 onwards we could not visit and carry out theaudit processes physically at the Company's premises. Further the advisory on"Specific Considerations while conducting Distance Audit/ Remote Audit under currentCovid-19 situation" issued by the Auditing and Assurance Standards Board of ICAIgive guidelines for the statutory audit via making arrangements to provide requisitedocuments/information through electronic medium and minimal physical movement. The entireaudit has been carried considering these guidelines and alternative audit procedures asper SAs prescribed by the ICAI. Moreover our attendance at the physical verification ofinventory done by the management was impracticable under these lockdown restrictionsimposed by the government and we have therefore relied on the related alternate auditprocedures to obtain comfort over the existence and condition of inventory at year end.Our opinion is not modified in respect of this matter.

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 the Act we give in "Annexure A" a statement on thematters specified in paragraphs 3 and 4 of the Order to the extent applicable.

2. As required by Section 143(3) of the Act based on our audit wereport that: a) We have sought and obtained all the information and explanations which tothe best of our knowledge and belief were necessary for the purposes of our audit. b) Inour opinion proper books of account as required by law have been kept by the Company sofar as it appears from our examination of those books. c) The Balance Sheet the Statementof Profit and Loss (including Other Comprehensive Income) Statement of Change in Equityand the Statement of Cash Flows dealt with by this Report are in agreement with the booksof account. d) In our opinion the aforesaid standalone financial statements comply withthe Ind AS 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 ason March 31 2020 taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2020 from being appointed as a director in terms of Section164 (2) of the Act. f) With respect to the adequacy of the internal financial controlswith reference to standalone financial statements of the Company and the operatingeffectiveness of such controls refer to our separate 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 2014 in our opinionand to the best of our information and according to the explanations given to us: i. TheCompany has disclosed the impact of pending litigations on its financial position in itsstandalone financial statements- Refer Note No. 36 to the standalone financial statements.ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses. iii. There has been no delay intransferring amounts required to be transferred to the Investor Education and ProtectionFund by the Company.

3. With respect to the matter to be included in the Auditors'report under Section 197(16) : In our opinion and according to the information andexplanation given to us the Company has paid remuneration to its directors during theyear is in accordance with the provisions of and limit laid down under section 197 readwith Schedule V of the Act.

For B.R. Gupta & Co.

Chartered Accountants

Firm's Registration Number 008352N
(Deepak Agarwal)
Partner
Place of Signature: New Delhi Membership No. 073696
Dated: 17th June 2020 UDIN: 20073696AAAAAZ8641

Annexure ‘A' to the Independent Auditors' Report of evendate on the standalone financial statements of Orient Bell Limited

The Annexure referred to in paragraph 1 under ‘Report on OtherLegal and Regulatory Requirements' section of Independent Auditors' Report tothe members of the Company on the standalone financial statements for the year ended March31 2020 we report that:

i) In respect of fixed assets comprising property equipment:

a) The Company has maintained proper records showing full particularsincluding quantitative details and situation of fixed assets.

b) The Company has a program of verification to cover all the items offixed assets in a phased manner which in our opinion is reasonable having regard to thesize of the Company and the nature of its assets. Pursuant to the program certain fixedassets were physically verified by the Management during the year. According to theinformation and explanations given to us no material discrepancies were noticed on suchverification.

c) According to the information and explanations given to us and therecords examined by us the title deeds of immovable properties (which are included underthe head ‘property plant and equipment') held in the name of the Company aremortgaged with the Banks (except land located in Andhra Pradesh) for securing the longterm borrowings and credit limits raised by the Company. In case of immovable propertiesthat have been taken on lease and disclosed as property plant and equipment in thefinancial statements we report that the lease agreements are in name of the Company.

ii) On the basis of information and explanation provided by theManagement inventories except for goods-in-transit have been physically verified by theManagement during the year at reasonable intervals. However we were being informed thatphysical verification of clay was made on the basis of volume and density which isapproximately correct. According to the information and explanations given to us nomaterial discrepancies were noticed on the aforesaid verification between the physicalstocks and the book records.

iii) According to the information and explanations given to us theCompany has not granted any loan secured or unsecured to companies firms LimitedLiability Partnerships (LLPs) or other parties covered in the register maintained underSection 189 of the Act. Accordingly the provisions of clauses 3(iii)(a) to (c) of theOrder are not applicable. plant and

iv) In our opinion and according to the information and explanationsgiven to us the Company has not entered into any transaction covered under Sections 185and 186 of the Act. Accordingly the provisions of clause 3(iv) of the Order are notapplicable.

v) In our opinion and according to the information and explanationgiven to us since the Company has not accepted any deposits therefore the question of thecompliance of any directives issued by the Reserve Bank of India and the provisions ofsections 73 to 76 or any other relevant provisions of the Companies Act and the rulesframed there under does not arise.

vi) On the basis of available information and explanation provided tous the Central Government has not prescribed maintenance of cost records undersub-section (1) of section 148 of the Companies Act 2013 read with Companies (CostRecords and Audit) Amendment Rules 2014 dated December 31 2014 (as amended from time totime) to the current operations carried out by the Company. Accordingly the provisions ofparagraph 3(vi) of the Companies (Auditor's Report) Order 2016 are not applicable tothe Company.

vii) In respect to statutory dues:

a) The Company is generally regular in depositing undisputed statutorydues including Provident Fund Employees' State Insurance Income Tax Sales-TaxService Tax Duty of Customs Duty of Excise Value Added Tax Goods and Service Tax cessand any other material statutory dues applicable to it with the appropriate authorities.Further there were no undisputed outstanding statutory dues as on the last day of thefinancial year concerned for a period of more than six months from the date they becamepayable.

b) According to the records of the Company examined by us and theinformation and explanations given to us there were no dues of Income Tax or Sales Tax orGoods and Service Tax or Service Tax or Duty of Customs or Duty of Excise or Value AddedTax which have not been deposited on account of any dispute except the following whichhave not been deposited on account of dispute:

Name of the Statute Nature of Dispute Amount Involved Amount Deposited Period Forum where dispute is pending
(in ` in Lakh) (in ` in Lakh)
U.P. Vat Act Entry tax and other dues 11.91 - 2000-01 & 2003-04 Allahabad High Court
U.P. Vat Act Form 3B Misused By Indian Oil Corporation 25.96 25.96 2000-2001 Ghaziabad Tribunal
U.P. Vat Act Entry tax and other dues 5.48 2.27 2002-03 Ghaziabad Tribunal
U.P. Vat Act Sales Tax Demand 0.69 0.34 2003-04 Allahabad High Court
U.P. Vat Act Sales Tax Demand 10.99 - 2003-04 Allahabad High Court
U.P. Vat Act Sales Tax Demand 41.70 22.75 2003-04 Allahabad High Court
U.P. Vat Act Advance Agst Form C 10.02 1.02 2011-12 Tribunal Ghaziabad
U.P. Vat Act Vehicle Seizure Order Hearing Notice 2.80 2.80 2013-14 Tribunal Ghaziabad
U.P. Vat Act Vehicle Seizure Order Hearing Notice 1.56 1.56 2016-17 Deputy Commissioner Sikandrabad
U.P. Vat Act Vehicle Seizure Order Hearing Notice 1.98 1.98 2016-17 Deputy Commissioner Sikandrabad
U.P. Vat Act Vehicle Seizure Order Hearing Notice 2.03 2.03 2016-17 Deputy Commissioner Sikandrabad
U.P. Vat Act Vehicle Seizure Order Hearing Notice 1.25 1.25 2016-17 Deputy Commissioner Sikandrabad
U.P. Vat Act Vehicle Seizure Order Hearing Notice 1.25 1.25 2016-17 Deputy Commissioner Sikandrabad
U.P. Vat Act Vehicle Seizure Order Hearing Notice 2.29 2.29 2016-17 Deputy Commissioner Sikandrabad
U.P. Vat Act Vehicle Seizure Order Hearing Notice 0.70 0.70 2017-18 Deputy Commissioner Sikandrabad
U.P. Vat Act Vehicle Seizure Order Hearing Notice 0.56 0.56 2017-18 Deputy Commissioner Sikandrabad
U.P. Vat Act Vehicle Seizure Order Hearing Notice 10.52 10.52 2017-18 Deputy Commissioner Sikandrabad
Gujrat VAT Sales Tax Demand 2.80 - 2010-11 Astt. Commissioner of Commercial Tax
Gujrat VAT Sales Tax Demand 4.72 1.00 2006-07 Gujarat VAT Tribunal Ahmedabad
Gujrat CST VAT/CST Demand 5.08 2.52 2013-14 State Deputy Commissioner Ahmedabad
Gujrat CST/VST VAT/CST Demand - - 2014-15 State Deputy Commissioner Ahmedabad
Gujrat/ Mumbai Mumbai MCD Octroi 0.37 - 2013-14 Gujarat CST
Octroi
Gujrat CST/VAT VAT/CST Demand 26.52 3.50 2010-11 VAT Tribunal Ahmedabad
Karnataka VAT/CST VAT/CST Demand 6.44 3.41 2015-16 AC - Commercial Tax
A.P.VAT Act Sales Tax demand 4.90 - 2005-06 & 2006-07 High Court of A.P.
A.P.VAT Act Sales Tax Demand 21.37 10.68 2009-10 Commissioner (A)
Kerala Vat Act Sales Tax Demand 4.39 1.55 2005-06 Astt. commissioner Ernakulum
Kerala Vat Act Sales Tax Demand 26.39 - 2009-10 Astt. commissioner Ernakulum
Kerala Vat Act Sales Tax Demand 0.56 - 2008-09 Astt. commissioner Ernaku- lum
Kerala Vat Act BCL Kerala under Vat Act 1.15 - 2012-13 Commissioner (A) DC
Kerala Vat Act OBL Kerala 12-13 under VAT Act 116.22 - 2012-13 Astt. commissioner Ernaku- lum
Goa VAT Act Sales Tax Demand 0.04 - 2008-09 Astt commissioner Goa
Haryana Vat Act Sales Tax Demand 1.21 - 2015-16 Commissioner (A)-Excise & Taxation Officer
Haryana Vat/CST Act Sales Tax Demand 6.54 - 2014-15 ETO Sonepat
Haryana Vat/CST Act Sales Tax Demand 205.59 - 2015-16 ETO Sonepat
Haryana Vat/CST Act Sales Tax Demand 347.87 - 2016-17 ETO Sonepat
Mumbai VAT Depart- ment BCL-Mumbai : Tax demand on Vehicle Sale 0.27 - 2006-07 VAT Officer
Delhi VAT- OBL under CST Act' Self-Asst demand 0.10 - 2013-14 VAT Officer
Delhi VAT- OBL under CST Act' Self-Asst demand 0.61 - 2014-15 VAT Officer
Delhi VAT- BCL Sales Tax Demand 0.67 - 2006-07 VAT Officer
Delhi VAT- BCL Sales Tax Demand 0.98 - 2006-07 VAT Officer
Delhi VAT CST Act' Asst demand 1.12 1.12 2008-09 VAT Officer
Delhi VAT CST Act' Asst demand 2.89 2.89 2009-10 VAT Officer
Delhi VAT CST Act' Asst demand 2.47 - 2011-12 VAT Officer
Central Excise & Customs Act Excise & other dues 0.29 0.29 Sept - 06 to Apr - 11 Cestat Ahmedabad
Central Excise & Customs Act Excise & other dues 2.32 - Aug - 05 to Apr -10 Cestat Ahmedabad
Central Excise & Customs Act Excise & other dues 50.39 3.78 2015-16 Appellate tribunal
Central Excise & Customs Act Excise & other dues 21.54 - 2005-06 Cestat Ahmedabad
Central Excise & Customs Act Excise & other dues 0.63 - Jan'05-Dec'08 Deputy Commissioner of Central Excise & Customs Bharuch
Central Excise & Customs Act Excise & other dues 1.36 - May 2010 to March 2011 Superintendent Central Excise & Customs Bharuch
Central Excise & Customs Act Excise & other dues 0.39 - Oct'2010 to Mar'2011 Superintendent Central Excise & Customs Bharuch
Central Excise & Customs Act Excise & other dues 0.91 - Jun'2007 to Mar'2010 Assistant Central Excise & Customs Vadodara
Central Excise & Customs Act Excise & other dues 0.41 - April'2010 to Mar' 2011 Assistant Central Excise & Customs Vadodara
Central Excise & Customs Act Excise & other dues 17.42 1.74 June'13 to Oct'16 Commissioner AppealVadodara
Central Excise & Customs Act Excise & other dues 7.04 0.70 Nov'16 to Jun'17 Commissioner AppealVadodara
Income Tax Act 1961 Income Tax demand 5.22 - AY:2017-18 CIT(Appeals) N. Delhi

viii) On the basis of information and explanation provided to us theCompany has not defaulted in repayment of loans and borrowings to financial institutionand bank. The Company has not taken any loan from Government and also has not issued anydebentures.

ix) The Company did not raise any money by the way of initial public orfurther public offer (including debt instruments) during the year. The Company has nottaken any term loan during the year.

x) According to the information and explanations given to us no fraudby the Company or on the Company by its officers or employees has been noticed or reportedduring the year.

xi) In our opinion and according to the information and explanationsgiven to us managerial remuneration has been paid/ provided by the Company in accordancewith the requisite approvals mandated by the provisions of Section 197 of the Act readwith Schedule V to the Act.

xii) The Company is not a Nidhi Company. Accordingly provisions ofclause 3(xii) of the Order are not applicable.

xiii) In our opinion and according to the information and explanationsgiven to us all transactions with the related parties are in compliance with Sections 177and 188 of Act where applicable and the requisite details have been disclosed in thefinancial statements etc. as required by the applicable accounting standards.

xiv) During the year the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures.Accordingly provisions of clause 3

(xiv) of the order are not applicable. xv) In our opinion and accordingto the information and explanations given to us the Company has not entered into anynon-cash transactions with the directors or persons connected with them covered underSection 192 of the Act. Accordingly provisions of clause 3

(xv) of the order are not applicable. xvi) The Company is not requiredto be registered under Section 45-IA of the Reserve Bank of India Act 1934. Accordinglyprovisions of clause3

(xvi) of the order are not applicable

For B.R. Gupta & Co.

Chartered Accountants

Firm's Registration Number 008352N
(Deepak Agarwal)
Partner
Place of Signature: New Delhi Membership No. 073696
Dated: 17th June 2020 UDIN: 20073696AAAAAZ8641

Annexure ‘B' to the Independent Auditors' Report of evendate on the Standalone Financial Statement of Orient Bell Limited

Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls with reference tofinancial statements of Orient Bell Limited ("the Company") as of March 31 2020in conjunction with our audit of the standalone financial statements of the Company forthe year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control with reference tofinancial statements criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia (ICAI). These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to company'spolicies the safeguarding of its assets the prevention and detection of frauds anderrors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company'sinternal financial controls with reference to financial statements based on our audit. Weconducted our audit in accordance with the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting (the "Guidance Note") and the Standards onAuditing issued by ICAI and deemed to be prescribed under section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controlsboth applicable to an audit of Internal Financial Controls and both issued by theInstitute of Chartered Accountants of India. Those Standards and the Guidance note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls with reference tofinancial statements was established and maintained and if such controls operatedeffectively in all material respects. Our audit involves performing procedures to obtainaudit evidence about the adequacy of the internal financial controls system with referenceto financial statements and their operating effectiveness. Our audit of internal financialcontrols with reference to financial statements included obtaining an understanding ofinternal financial controls with reference to financial statements assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internalfinancial controls system with reference to financial statements.

Meaning of Internal Financial Controls with reference to financialstatements A company's internal financial control with reference to financialstatements is a process designed to provide reasonable assurance regarding the reliabilityof financial reporting and the preparation of financial statements for external purposesin accordance with generally accepted accounting principles. A company's internalfinancial control with reference to financial statements includes those policies andprocedures 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 authorisations of management and directors of the company; and (3)provide reasonable assurance regarding prevention or timely detection of unauthorisedacquisition use or disposition of the company's assets that could have a materialeffect on the standalone financial statements.

Inherent Limitations of Internal Financial Controls with reference tofinancial statements

Because of the inherent limitations of internal financial controls withreference to financial statements including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols with reference to financial statements to future periods are subject to the riskthat the internal financial control with reference to financial statements may becomeinadequate because of changes in conditions or that the degree of compliance with thepolicies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequateinternal financial controls system with reference to financial statements and suchinternal financial controls with reference to financial statements were operatingeffectively as at March 31 2020 based on the internal control with reference tofinancial statements criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

For B.R. Gupta & Co.

Chartered Accountants

Firm's Registration Number 008352N
(Deepak Agarwal)
Partner
Place of Signature: New Delhi Membership No. 073696
Dated: 17th June 2020 UDIN: 20073696AAAAAZ8641