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Ovobel Foods Ltd.

BSE: 530741 Sector: Agri and agri inputs
NSE: N.A. ISIN Code: INE812S01012
BSE 00:00 | 16 Jul 15.50 -0.40
(-2.52%)
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NSE 05:30 | 01 Jan Ovobel Foods Ltd
OPEN 15.50
PREVIOUS CLOSE 15.90
VOLUME 200
52-Week high 32.75
52-Week low 13.13
P/E 3.60
Mkt Cap.(Rs cr) 16
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 15.50
CLOSE 15.90
VOLUME 200
52-Week high 32.75
52-Week low 13.13
P/E 3.60
Mkt Cap.(Rs cr) 16
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Ovobel Foods Ltd. (OVOBELFOODS) - Auditors Report

Company auditors report

To the Members of Ovobel Foods Limited

Report on the Financial Statements

1. We have audited the accompanying financial statements of Ovobel Foods Limited("the Company") which comprise the Balance Sheet as at 31 March 2017 theStatement of Profit and Loss and the Cash Flow Statement for the year then ended and asummary of the significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

2. 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 ofthese financial statements that give a true and fairview of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility aLso includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation ofthe financial statements thatgivea d'ue and fairview and are free from material misstatement whether due to fraud orerror.

Auditors Responsibility

3. Our responsibility is to express an opinion on these financial statements based onour audit. We have taken into account the provisions of the Act; the accounting andauditing standards and matters which are required to be included in the audit report underthe provisions 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 orderto design audit proceduresthatare appropriate in the circumstances.

An audit also includes evaluating the appropriateness ofthe accounting policies usedand the reasonableness of the accounting estimates made by the Company's Directors aswell as evaluating the overall presentation ofthe financial statements.

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

Opinion

4. 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 of the state of affairs of the Company as at 31stMarch

2017 and its loss and its cash flows for the year ended on that date.

Emphasis of Matters

5. We draw attention to the following matters in the Notes to the Financial Statements:

a. Note 4 to the financial statements pertaining to the long outstanding dues to PublicFinancial Institutions.

b. Note 11 to the financial statements pertaining to inter corporate advance of Rs. 200Lakhs given in April'14 & it was outstanding as on the balance sheet date.

Our opinion is not modified in respect of these matters.

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 sub-section(11) of section 143 ofthe Companies Act 2013 we give in the "Annexure A" astatement on the matters specified in paragraphs 3 and 4 ofthe Order. :

2. As required by Section 143 (3) ofthe Act; we report that 1

a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purpose of ouraudit. '

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 and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.

d) The company had provided the requisite disclosure in Note 36 forming part offinancial statements as to holdings as well as dealings in Specified Bank Notes during theperiod from 811' November 2016 to 30h December 2016 and are inaccordance with the books of accounts maintained by the company.

e) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act; read with Rule 7 ofthe Companies(Accounts) Rules 2014.

f) On the basis of the written representations received from the directors as on 31stMarch 2017takenon record by the Board of Directors none of the directors is disqualifiedas on 31sl March 2017 from being appointed as a director in terms of Section164(2) of the Act.

g) 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" and

h) 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. The Company has no pending litigation:

ii. The Company did not have any long-term contracts including derivative contracts.Hence there is no requirement for any provision.

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

For Nara Hari & Raghvendra
Chartered Accountants
Firm Registration No: 014509S
Nara Hari Navakanth
Partner
Membership No: 229212
Place: Bangalore
Date: 30th May 2017

"Annexure A" to the Independent Auditors Report

(Referred to in paragraph 1 under the heading 'Report on Other Legal and RegulatoryRequirement' of our Report of even date to the financial statements for the year ended on31st March 2017 of Ovobel Foods Limited) ;

Based on the audit procedures performed for the purpose of reporting a true and fairview on the financial statements of the Company and taking into consideration theinformation and explanation given to us and the books of account and other recordsexamined by us in the normal course of audit we report that

i) (a) The Company has maintained proper records showing full particulars

including quantitative details and situation of fixed assets; :

(b) Physical verification of fixed Asset is being done in a phased manner. However nophysical verification of the fixed asset been carried out by the management during theyear and hence we are unable to comment on the material discrepancies arising between thebooks records and the physical fixed assets.

(c) The title deeds of immovable properties are held in the name of the company.

ii) (a) The management has conducted the physical verification of inventory during theyear.

(b) The discrepancies noticed on physical verification of the inventory as compared tobooks has been properly dealt with in the books of account and were not material. :

iii) In our opinion and according to the information and explanations given to us theCompany has not granted any loans secured or unsecured to companies firms or otherparties covered in the register maintained under Section 189 of the Companies Act 2013.Accordingly the provisions of clauses 3 (iii) (a) (b) and (c) of the Order are notapplicable.

iv) In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of Section 185 and 186 of the Companies Act 2013In respect of loans investments guarantees and security.

v) The Company has not accepted any deposits from the public and hence the directivesissued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any otherrelevant provisions of the Act and the Companies (Acceptance of Deposit) Rules 2013 andthe rules flamed thereunder with regard to the deposits accepted from the public are notapplicable.

vi) As informed to us the maintenance of Cost Records has not been specified by theCentral Government under sub-section (1) of Section 148 of the Act in respect of theactivities carried on by the company.

vii) (a) According to information and explanations given to us and on the

basis of our examination of the hooks of account and records the Company has beengenerally regular in depositing undisputed statutory dues including Provident FundEmployees State Insurance Income-Tax Sales tax Service Tax Duty of Customs Duty ofExcise Value added Tax Cess and any other statutory dues with the appropriateauthorities. According to the information and explanations given to us no undisputedamounts payable in respect of the above were in arrears as at March 31 2017 for a periodof more than six months from the date on when they become payable.

b) According to the information and explanation given to us there are no dues ofincome tax sales tax service tax duty of customs duty of excise value added taxoutstanding on account of any d ispute.

viii) The Company had not defaulted in repayment of dues to the financial institutionsduring the current year. Further the company has paid the amount as per One TimeSettlement as demanded by KSI1DC for loan obtained earlier. The amount paid till date isnot yet adjusted due to pending final NOC from KSIIDC.

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) Based upon the audit procedures performed and the information and explanations givenby the management we report that no material fraud by the Company or on the company by itsofficers or employees has been noticed or reported during the course of our audit.

xi) Based upon the audit procedures performed and the information and explanationsgiven by the management the managerial remuneration has been paid or provided inaccordance with the requisite approvals mandated by the provisions of Section 197 readwith Schedule V to the Companies Act

xii) In our opinion the Company 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 in compliance with Sections 17 7 and 188 of the Act whereapplicable and details of such transactions have been disclosed in the financialstatements as required by the appl icable accounting standards.

xiv) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview. Accordingly paragraph 3 (xiv) of the Order is not applicable to the Company.

xv) Based upon the audit procedures performed and the information and explanationsgiven by the management; the company has not entered into any non-cash transactions withDirectors or persons connected with him. Accordingly paragraph 3 (xv) of the Order is notapplicable to the Company.

xvi) The company is not required to be registered under section 45 1A of the ReserveBank of India Act; 1934 and accordingly paragraph 3 (xvi) of the Order is not applicableto the Company.

For Nara Hari & Raghvendra
Chartered Accountants
Firm Registration No: 014509S
Nara Hari Navakanth
Partner
Membership No: 229212
Place: Bangalore
Date: 30th May 2017

"ANNEXURE B" TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THEFINANCIAL STATEMENTS OF OVOBEL FOODS LIMITED

Report on the Internal Financial Controls under Clause (i) of Sub- section

3 of Section 143 of the Companies Act 2013 ("the Act")

1. We have audited the internal financial controls over financial reporting of OvobelFoods Limited as of March 31 2017 in conjunction with our audit of the financialstatements of the Company for the year ended on that date.

Management's Responsibility for internal Financial Condo Is

2. 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to the Company's policies the safeguarding of its assets theprevention 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.

Auditor's Responsibility

3. 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 as specified under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls both applicable to an auditof Internal Financial Controls and bothissued by the Institute of Chartered Accountants of India. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and ifsuch controls operatedeffectively 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 internal financial controls system overfinancial reporting.

Meaning of Internal Financial Controls over Financial Reporting

4. A company's internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial controloverfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions 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 authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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

5. 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 controloverfinancial reporting may become inadequate because of changes in conditions or

that the degree of compliance with the policies or procedures may deteriorate.

Opinion

6. 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.

Explanatory paragraph

7. We also have audited in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India as specified under Section 143(10] of theAct the financial statements of the Company which comprise the Balance Sheet as at March31 2017 and the related Statement of Profit and Loss and Cash Flow Statement for theyear then ended and a summary of significant accounting policies and other explanatoryinformation and our report even dated expressed an "unqualified opinionthereon"

For Nara Hari & Raghvendra
Chartered Accountants
Firm Registration No: 014509S
Nara Hari Navakanth
Partner
Membership No: 229212