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Auditor Report of Jay Shree Tea & Industries Ltd.

Mar 31, 2014

We have audited the accompanying financial statements of JAY SHREE TEA & INDUSTRIES LTD ("the Company"), which comprise the Balance Sheet as at 31st March, 2014, the Statement of Profit and Loss and Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information.

MANAGEMENT''S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ("the Act") read with general circular 15/2013 dated 13th September 2013 by Ministry of Company Affairs in respect of section 133 of the Companies Act 2013. Tis responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

AUDITOR''S RESPONSIBILITY

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Tose Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. Te procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the entity''s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

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

OPINION

In our opinion and to the best of our information and according to the explanations given to us the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India :

a) In the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2014;

b) In the case of the Statement of Profit & Loss, of the profit for the year ended on that date; and

c) In the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

EMPHASIS OF MATTER

A. Refer note no. 2.28.E.iii regarding carry forward of minimum alternate tax (MAT) credit entitlement of Rs. 418.43 Lacs based on the future taxable income projected by the Company.

B. Refer note no. 2.28.I.ii regarding non-provision for diminution in value of investment of a Subsidiary Company amounting to Rs. 356.20 Lacs and non-provision for advances and security deposits given to such subsidiary amounting to Rs. 277.45 Lacs.

Our opinion is not qualified in respect of above matters.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. As required by the Companies (Auditor''s Report) Order, 2003 ("the Order") as amended by the Companies (Auditor''s Report) (Amendment) Order, 2004, issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

2. As required by section 227(3) of the Act, we report that :

I. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit;

II. In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;

III. Te Balance Sheet, the Statement of Profit & Loss and the Cash Flow Statement dealt with by this report are in agreement with the books of account;

IV. In our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956 read with general circular 15/2013 dated 13th September 2013 by Ministry of Company Affairs in respect of section 133 of the Companies Act 2013;

V. On the basis of written representations received from the directors as on 31st March 2014, and taken on record by the board of directors, we report that none of the directors are disqualified as on 31st March 2014, from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956.

Annexure to the Independent Auditors'' Report

The Annexure referred to in paragraph 1 with the heading "Report on other legal and regulatory requirement" of the Our Report of even date to the members of Jay Shree Tea & Industries Limited on the accounts of the Company for the year ended 31st March, 2014.

(i) In respect of its fixed assets :

(a) Te Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

(b) The fixed assets were physically verified during the year by the management which in our opinion provides for physical verification of all the fixed assets at reasonable intervals. According to the information and explanations given to us, no material discrepancies were noticed on such verification.

(c) The Company has not disposed off substantial part of fixed assets during the year. (ii) In respect of its inventories :

(a) As explained to us, inventories were physically verified during the year by the management at reasonable intervals.

(b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories followed by the management were reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) In our opinion and according to the information and explanations given to us, the Company has maintained proper records of its inventories and no material discrepancies were noticed on physical verification.

(iii) (a) According to the information and explanations given to us, the Company has granted unsecured loans /advances to 2 (two) Subsidiary Companies and 1 (one) step down subsidiary Company amounting to Rs. 80.93 Lacs (balance at the year-end) (maximum amount outstanding during the year was Rs. 324.27 Lacs) which is repayable on demand. Te terms and conditions of the loans/advances are prima-facie not prejudicial to the interest of the Company.

(b) Since there is no overdue amount of principal and interest, hence clause 4 (iii) (d) of this Order is not applicable.

(c) The company has taken unsecured loans/advances from two subsidiaries company amounting to Rs. 131.96 Lacs (balance at the year end) (maximum amount outstanding during the year was Rs. 229.83 Lacs) which is repayable on demand. Te terms and conditions of the loans are prima-facie not prejudicial to the interest of the Company.

(iv) In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business for the purchase of inventory and fixed assets and for the sale of goods and services. During the course of our audit, no major weakness has been noticed in the internal control system.

(v) In respect of transactions entered in the register maintained in pursuance of Section 301 of the Companies Act, 1956 :

(a) To the best of our knowledge and belief and according to the information and explanations given to us, transactions that needed to be entered into the register have been so entered.

(b) According to the information and explanations given to us, certain transactions for purchase and sale of goods and materials with the subsidiary Companies for which alternate quotations were not available, have been made at prices which are prima facie reasonable having regard to the prevailing market prices at the relevant time.

(vi) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Section 58A, 58AA or any other relevant provisions of the Act, and the rules framed there under and the directives issued by the Company Law Board, National Company Law Tribunal or the Reserve Bank of India, or any Court or any other Tribunal where applicable, with regard to the deposits accepted from the public.

(vii) In our opinion, the internal audit functions carried out during the year by firms of Chartered Accountants appointed by the management have been commensurate with the size of the Company and the nature of its business.

(viii) We have broadly reviewed the books of account and records maintained by the Company relating to plantation and the manufacture of Sulphuric Acid & Sugar pursuant to the order made by the Central Government for the maintenance of cost records under Section 209 (1) (d) of the Companies Act, 1956 and are of the opinion that prima facie the prescribed accounts and records have been made and maintained. We have, however, not made a detailed examination of the records with a view to determining whether they are accurate or complete. To the best of our knowledge and according to the information and explanations given to us, the Central Government has not prescribed the maintenance of cost records for any other product of the Company.

(ix) According to the information and explanations given to us in respect of statutory and other dues :

(a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted/accrued in the books of account in respect of undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Income Tax, Sales Tax, Wealth Tax, Service Tax and other material statutory dues have generally regularly been deposited during the year by the Company with the appropriate authorities.

According to the information and explanations given to us, no undisputed amounts payable in respect of Provident Fund, Investor Education and Protection Fund, Income Tax, Sales Tax, Wealth Tax and other material statutory dues for a period of more than six months from the date they become payable.

(b) Te following disputed statutory liabilities have not been deposited in view of pending Appeals :

Statute Nature of Forum where dispute is dues pending

The Income Tax Income Tax Commissioner of Income Tax Act 1961 (Appeals)

The W.B Value Sales Tax/ First Appellate Authorities / Added Tax Act C.S.T. Revisional Board.

2003/ The Central Sales Tax Act 1956

Statue Amount involved Period to which relates (Rs. in Lacs)

Te Income Tax Act 1961 610.99 Assessment Year 2007-08 to 2011-12

Te W.B Value Added Tax Act 2003/ The Central Sales Tax Act 1956 188.56 1996-97, 1997-98,

1999-00, 2001-02,

2005-06, 2006-07,

2007-08, 2008-09,

2009-10 & 2010-11

Statute Nature of Forum where dispute is dues pending

The W.B Value Sales Tax W.B. Taxation Tribunal Added Tax Act 2003

Statute Amount involved Period to which relates (Rs. in Lacs)

The W.B Value Added Tax Act 2003 28.73 1996-97,2003-04 & 2006-07

(x) The Company does not have accumulated losses as at the end of the year and the Company has not incurred cash losses during the current and the immediately preceding financial year.

(xi) Based on our audit procedures and on the basis of information and explanations given by the management, we are of the opinion that the Company has not defaulted in the repayment of dues to financial institutions and banks.

(xii) According to the information and explanations given to us, the Company has not granted loans or advances on the basis of security by way of pledge of shares, debentures and other securities.

(xiii) In our opinion, the nature of activities of the company is such that the provisions of any special statute including chit fund/ nidhi/mutual benefit fund/societies are not applicable to it.

(xiv) In our opinion and according to the information and explanations given to us, the Company is not a dealer or trader in securities. Te Company has invested surplus funds in marketable securities and mutual funds. According to the information and explanations given to us, proper records have been maintained of the transactions and contracts relating to purchase of investments and timely entries have been made therein. All the investments have been held by the Company in its own name.

(xv) According to the information and explanations given to us, the Company has given corporate guarantee to banks amounting to Rs. 5470.70 Lacs and pledged its own investment amounting to Rs. 3930.50 Lacs for banking facilities taken by a wholly owned subsidiary Company and a step-down subsidiary Company from the banks and the terms & conditions whereof are prima facie not prejudicial to the interest of the Company.

(xvi) To the best of our knowledge and belief and according to the information and explanations given to us, term loans availed by the Company were, prima facie, applied by the Company during the year for the purposes for which the loans were obtained.

(xvii) According to the information and explanations given to us, on an overall basis, no funds raised on short-term basis been used during the year for long-term investment.

(xviii) The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the Companies Act, 1956, during the year and hence the question of whether the price at which shares have been issued is prejudicial to the interest of the Company does not arise.

(xix) The Company did not have any outstanding debenture during the year.

(xx) The Company has not raised monies by public issue during the year and hence the question of disclosure and verification of end use of such monies does not arise.

(xxi) To the best of our knowledge and belief and according to the information and explanations given to us, no fraud on or by the Company was noticed or reported during the year.

For SINGHI & Co.

Chartered Accountants

(Firm Registration No.302049E)

Aditya Singhi

Partner Kolkata : the 26th day of May, 2014 (Membership No. 305161)


Mar 31, 2013

Report on the Financial Statements

We have audited the accompanying fnancial statements of JAY SHREE TEA & INDUSTRIES LTD (''the Company''), which comprise the Balance Sheet as at 31st March, 2013, the Statement of Proft and Loss and Cash Flow Statement for the year then ended and a summary of signifcant accounting policies and other explanatory information.

Management''s responsibility for the Financial Statements

Management is responsible for the preparation of these fnancial statements that give a true and fair view of the fnancial position, fnancial performance and cash fows of the Company in accordance with the accounting principles generally accepted in India including Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 (''the Act''). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the fnancial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor''s responsibility

Our responsibility is to express an opinion on these fnancial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the fnancial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the fnancial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the fnancial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the fnancial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the fnancial statements.

We believe that the audit evidence we have obtained is suffcient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion and to the best of our information and according to the explanations given to us the aforesaid fnancial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

a) In the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2013

b) In the case of the Statement of Proft and Loss, of the proft for the year ended on that date, and

c) In the case of the Cash Flow Statement, of the cash fows for the year ended on that date.

Emphasis of Matter

1. Refer note no. 2.28.E.iii & 2.28.E.iv regarding recognition and carry forward of minimum alternate tax (MAT) credit entitlement of Rs. 418.43 lacs (including Rs. 45.65 lacs (net) further recognised during the year) and deferred tax assets (DTA) of Rs. 340.11 Lacs (including Rs. 112.78 lacs (net) further recognised during the year) on carry forward capital loss up to 31st March 2013 based on the future taxable income projected by the Company.

2. Refer note no. 2.28.I.ii regarding non-provision for diminution in value of investment of a Subsidiary Company amounting to Rs. 356.20 lacs and non-provision for advances and security deposits given to such subsidiary amounting to Rs. 266.44 lacs.

Our opinion is not qualifed in respect of above matters.

Report on other Legal and Regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order, 2003 ("the Order") as amended by the Companies (Auditor''s Report) (Amendment) Order, 2004, issued by the Central Government of India in terms of sub- section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specifed in paragraphs 4 and 5 of the Order.

2. As required by section 227(3) of the Act, we report that:

I. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit;

II. In our opinion, proper books of account as required by law have been kept by the company so far as appears from our examination of those books;

III. The Balance Sheet, the Statement of Proft and Loss and the Cash Flow Statement dealt with by this report are in agreement with the books of account;

IV.In our opinion, the Balance sheet, the Statement of Proft and Loss, and the Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956;

V. On the basis of written representations received from the directors as on 31st March 2013, and taken on record by the board of directors, we report that none of the directors are disqualifed as on 31st March 2013, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

Other Matter

We have incorporated the fnancial position as at 31st March 2013 and fnancial performance for the year then ended of Sungma Tea Estate, North Tukvar Tea Estate, Singbulli Tea Estate, Balasun Tea Estate and Marionbarie Tea Estate as audited by the branch auditor as required by clause (c) of sub-section (3) of section 228 of the Companies Act, 1956 and our opinion is based solely on the reports of the other auditors.

Our opinion is not qualifed in respect of other matter.

The Annexure referred to in paragraph 1 of the Our Report of even date to the members of Jay Shree Tea & Industries Limited on the fnancial statements of the company for the year ended 31st March, 2013.

(i) In respect of its fxed assets:

(a) The Company has maintained proper records showing full particulars including quantitative details and situation of fxed assets.

(b) The fxed assets were physically verifed during the year by the management which in our opinion provides for physical verifcation of all the fxed assets at reasonable intervals. According to the information and explanations given to us, no material discrepancies were noticed on such verifcation.

(c) The Company has not disposed off substantial part of fxed assets during the year. (ii) In respect of its inventories:

(a) As explained to us, inventories were physically verifed during the year by the management at reasonable intervals.

(b) In our opinion and according to the information and explanations given to us, the procedures of physical verifcation of inventories followed by the management were reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) In our opinion and according to the information and explanations given to us, the Company has maintained proper records of its inventories and no material discrepancies were noticed on physical verifcation.

(iii) (a) According to the information and explanations given to us, the Company has granted unsecured loans /advances to 2 (two) Subsidiary Companies and 1 (one) step down subsidiary Company amounting to Rs. 278.47 lacs (balance at the year-end)(maximum amount outstanding during the year was Rs. 2527.76 lacs) which is repayable on demand. The terms and conditions of the loans/advances are prima-facie not prejudicial to the interest of the Company.

(b) Since there is no overdue amount of principal and interest, hence clause 4 (iii) (d) of this Order is not applicable.

(c) The company has taken unsecured loans from one subsidiary company amounting to Rs. 83.43 lacs (balance at the year end) (maximum amount outstanding during the year was Rs. 83.43 lacs) which is repayable on demand. The terms and conditions of the loans are prima-facie not prejudicial to the interest of the company.

(iv) In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business for the purchase of inventory and fxed assets and for the sale of goods and services. During the course of our audit, no major weakness has been noticed in the internal control system.

(v) In respect of transactions entered in the register maintained in pursuance of section 301 of the Companies Act, 1956:

(a) To the best of our knowledge and belief and according to the information and explanations given to us, transactions that needed to be entered into the register have been so entered.

(b) According to the information and explanations given to us, certain transactions for purchase and sale of goods and materials with the subsidiary Companies for which alternate quotations were not available, have been made at prices which are prima facie reasonable having regard to the prevailing market prices at the relevant time.

(vi) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Section 58A, 58AA or any other relevant provisions of the Act, and the rules framed there under and the directives issued by the Company Law Board, National Company Law Tribunal or the Reserve Bank of India, or any Court or any other Tribunal where applicable, with regard to the deposits accepted from the public.

(vii) In our opinion, the internal audit functions carried out during the year by frms of Chartered Accountants appointed by the management have been commensurate with the size of the Company and the nature of its business.

(viii) We have broadly reviewed the books of account and records maintained by the Company relating to plantation and the manufacture of Sulphuric Acid & Sugar pursuant to the order made by the Central Government for the maintenance of cost records under Section 209 (1) (d) of the Companies Act, 1956 and are of the opinion that prima facie the prescribed accounts and records have been made and maintained. We have, however, not made a detailed examination of the records with a view to determining whether they are accurate or complete. To the best of our knowledge and according to the information and explanations given to us, the Central Government has not prescribed the maintenance of cost records for any other product of the Company.

(ix) According to the information and explanations given to us in respect of statutory and other dues:

(a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted/accrued in the books of account in respect of undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Income tax, Sales tax, Wealth tax, Service tax and other material statutory dues have generally regularly been deposited during the year by the Company with the appropriate authorities.

According to the information and explanations given to us, no undisputed amounts payable in respect of Provident Fund, Investor Education and Protection Fund, Income tax, Sales tax, Wealth tax and other material statutory dues for a period of more than six months from the date they become payable.

(b) The following disputed statutory liabilities have not been deposited in view of pending Appeals:

Statute Amount involved Nature of dues Forum where dispute is pending Period to which relates (in lacs)

Income Tax Act Assessment Year 2007-08 to Income Tax Commissioner of Income Tax (Appeals) 569.43 2010-11

1996-97, 1997-98, 1999-00, First Appellate Authorities / Revisional W.B. Sales Tax Act Sales Tax 135.72 2001-02, 2005-06, 2006-07, Board.

2007-08, 2008-09 & 2009-10. W. B. Sales Tax Act Sales Tax W.B. Taxation Tribunal 20.30 2003-04

(x) The Company does not have accumulated losses as at the end of the year and the Company has not incurred cash losses during the current and the immediately preceding fnancial year.

(xi) Based on our audit procedures and on the basis of information and explanations given by the management, we are of the opinion that the Company has not defaulted in the repayment of dues to fnancial institutions and banks.

(xii) According to the information and explanations given to us, the Company has not granted loans or advances on the basis of security by way of pledge of shares, debentures and other securities.

(xiii) In our opinion, the nature of activities of the company is such that the provisions of any special statute including chit fund/nidhi/mutual beneft fund/societies are not applicable to it.

(xiv) In our opinion and according to the information and explanations given to us, the Company is not a dealer or trader in securities. The Company has invested surplus funds in marketable securities and mutual funds. According to the information and explanations given to us, proper records have been maintained of the transactions and contracts relating to purchase of investments and timely entries have been made therein. All the investments have been held by the Company in its own name.

(xv) According to the information and explanations given to us, the Company has given corporate guarantee to banks amounting to Rs. 6301.12 lacs and pledged its own investment amounting to Rs. 2700.00 lacs for banking facilities taken by a wholly owned subsidiary Company and a step-down subsidiary Company from the banks and being subsidiaries the terms & conditions whereof are prima facie not prejudicial to the interest of the Company.

(xvi) To the best of our knowledge and belief and according to the information and explanations given to us, term loans availed by the Company were, prima facie, applied by the Company during the year for the purposes for which the loans were obtained.

(xvii) According to the information and explanations given to us, on an overall basis, no funds raised on short-term basis been used during the year for long-term investment.

(xviii) The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the Companies Act, 1956, during the year and hence the question of whether the price at which shares have been issued is prejudicial to the interest of the Company does not arise.

(xix) The Company did not have any outstanding debenture during the year.

(xx) The Company has not raised monies by public issue during the year and hence the question of disclosure and verifcation of end use of such monies does not arise.

(xxi) To the best of our knowledge and belief and according to the information and explanations given to us, no fraud on or by the Company was noticed or reported during the year.

For SINGHI & CO.

Chartered Accountants Firm Registration No.302049E

PRADEEP KUMAR SINGHI

1-B, Old Post Offce Street Partner

Kolkata, the 6th day of May, 2013 (Membership No.50773)


Mar 31, 2012

We have audited the attached Balance Sheet of JAY SHREE TEA & INDUSTRIES LIMITED as at 31st March, 2012, the statement of Profit & Loss and the Cash Flow Statement of the said Company for the year ended on that date, annexed thereto. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in India. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

As required by the Companies (Auditors' Report) Order, 2003 as amended by Companies (Auditor's Report) (Amendment) Order, 2004 issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 & 5 of the said order.

Further to our comments in the Annexure referred to above, we report that:

i) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit.

ii) In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books.

iii) We have incorporated the statement of garden expenditure of Sungma Tea Estate, North Tukvar Tea Estate, Singbulli Tea Estate, Balasun Tea Estate and Marionbarie Tea Estate audited by branch auditor as required by clause (c) of sub-section (3) of section 228 of the Companies Act, 1956.

iv) The Balance Sheet, the statement of Profit & Loss and the Cash Flow Statement dealt with by this report are in agreement with the books of account.

v) In our opinion, the Balance Sheet, the statement of Profit & Loss and the Cash Flow Statement dealt with by this report, comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956.

vi) On the basis of written representations received from the directors as on 31st March, 2012 and taken on record by the Board of Directors, we report that none of the directors are disqualified as on 31st March, 2012 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

vii) Without qualifying our opinion, attention is invited to the following:

a. Note no 2.28.E.iii and 2.28.E.iv regarding carry forward of Minimum Alternate Tax (MAT) Credit Entitlement of Rs 372.78 lacs and recognition of deferred tax assets of Rs 227.33 lacs on capital loss up to 31st March 2012, based on the future taxable income projected by the company. However, we are unable to express our opinion on the convincing evidence of future taxable income and the corresponding recognition thereof;

b. Note no 2.28.I regarding non-provision for diminution in value of investment of a Subsidiary Company amounting to Rs 356.20 lacs and non-provision for advances and security deposits given to such subsidiary amounting to Rs 292.63 lacs in view of the reason stated in the said note.

viii) In our opinion and to the best of our information and according to the explanations given to us, the said account together with notes thereon and attached thereto, give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

a) In the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2012;

b) In the case of the statement of Profit & Loss, of the profit for the year ended on that date and

c) In the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

ANNEXURE TO THE AUDITORS' REPORT

(Referred to in paragraph 3 of our report of even date)

As required by the Companies (Auditors' Report) (Amendment) Order 2004, we report that:

(i) In respect of its fixed assets:

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

(b) The fixed assets were physically verified during the year by the management which in our opinion provides for physical verification of all the fixed assets at reasonable intervals. According to the information and explanations given to us, no material discrepancies were noticed on such verification.

(c) The Company has not disposed off substantial part of fixed assets during the year.

(ii) In respect of its inventories:

(a) As explained to us, inventories were physically verified during the year by the management at reasonable intervals.

(b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories followed by the management were reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) In our opinion and according to the information and explanations given to us, the Company has maintained proper records of its inventories and no material discrepancies were noticed on physical verification.

(iii) (a) According to the information and explanations given to us, the company has granted unsecured loans /

advances to three (three) Subsidiaries Companies and 1 (one) step down subsidiary company amounting to Rs1994.53 lacs (balance at the year end)(maximum amount outstanding during the year was Rs 4241.33 lacs) which is repayable on demand. The terms and conditions of the loans/advances are prima-facie not prejudicial to the interest of the Company.

(b) Since there is no overdue amount of principal and interest, hence clause 4 (iii) (d) of this Order is not applicable.

(c) The company has taken unsecured advances from one subsidiary company amounting to Rs 79.12 lacs (balance at the year end) (maximum amount outstanding during the year was Rs 79.12 lacs) which is repayable on demand. The terms and conditions of the loans are prima-facie not prejudicial to the interest of the company.

(iv) In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business for the purchase of inventory and fixed assets and for the sale of goods and services. During the course of our audit, no major weakness has been noticed in the internal control system.

(v) In respect of transactions entered in the register maintained in pursuance of section 301 of the Companies Act, 1956:

(a) To the best of our knowledge and belief and according to the information and explanations given to us, transactions that needed to be entered into the register have been so entered.

(b) According to the information and explanations given to us, certain transactions for purchase and sale of goods and materials with the subsidiary Companies for which alternate quotations were not available, have been made at prices which are prima facie reasonable having regard to the prevailing market prices at the relevant time.

(vi) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Section 58A, 58AA or any other relevant provisions of the Act, and the rules framed there under and the directives issued by the Company Law Board, National Company Law Tribunal or the Reserve Bank of India, or any Court or any other Tribunal where applicable, with regard to the deposits accepted from the public.

(vii) In our opinion, the internal audit functions carried out during the year by firms of Chartered Accountants appointed by the management have been commensurate with the size of the Company and the nature of its business.

(viii)We have broadly reviewed the books of account and records maintained by the Company relating to plantation and the manufacture of Sulphuric Acid & Sugar pursuant to the order made by the Central Government for the maintenance of cost records under Section 209 (1) (d) of the Companies Act, 1956 and are of the opinion that prima facie the prescribed accounts and records have been made and maintained. We have, however, not made a detailed examination of the records with a view to determining whether they are accurate or complete. To the best of our knowledge and according to the information and explanations given to us, the Central Government has not prescribed the maintenance of cost records for any other product of the Company.

(ix) According to the information and explanations given to us in respect of statutory and other dues:

(a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted/accrued in the books of account in respect of undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Income tax, Sales tax, Wealth tax, Service tax and other material statutory dues have been regularly deposited during the year by the Company with the appropriate authorities.

According to the information and explanations given to us, no undisputed amounts payable in respect of Provident Fund, Investor Education and Protection Fund, Income tax, Sales tax, Wealth tax, Service tax and other material statutory dues were in arrears as at 31st March, 2012, for a period of more than six months from the date they become payable.

(b) The following disputed statutory liabilities have not been deposited in view of pending Appeals:

Amount involved

Statute Nature Forum ( in lacs) Related year

Income Tax Act Income Tax CIT (A) 86.51 2006-07 & 2007-08

Income Tax Act Income Tax CIT(A) 94.96 2008-09

W B Sales Tax Act Sales Tax First appellate 164.29 1999-00, 1996-97 , 1997-98,

Authorities/ 2001-02, 2002-03, 2003-04,

revisional board 2005-06, 2006-07, 2007-08

& 2008-09

W B Sales Tax Act Sales Tax Taxation Tribunal 20.30 2003-04

(x) The Company does not have accumulated losses as at the end of the year and the Company has not incurred cash losses during the current and the immediately preceding financial year.

(xi) Based on our audit procedures and on the basis of information and explanations given by the management, we are of the opinion that the Company has not defaulted in the repayment of dues to financial institutions and banks.

(xii) According to the information and explanations given to us, the Company has not granted loans or advances on the basis of security by way of pledge of shares, debentures and other securities.

(xiii)In our opinion, the nature of activities of the company is such that the provisions of any special statute including chit fund/nidhi/mutual benefit fund/societies are not applicable to it.

(xiv)In our opinion and according to the information and explanations given to us, the Company is not a dealer or trader in securities. The Company has invested surplus funds in marketable securities and mutual funds. According to the information and explanations given to us, proper records have been maintained of the transactions and contracts relating to purchase of investments and timely entries have been made therein. All the investments have been held by the Company in its own name except beneficial interest in shares amounting to Rs 9969.70 lacs have been held by two separate trusts.

(xv) According to the information and explanations given to us, the Company has given a guarantee to a bank amounting to Rs 4070.40 lacs and pledged its own investment amounting to Rs1400 lacs for banking facility taken by a subsidiary company from a bank during the year and the terms & conditions whereof are not prejudicial to the interest of the Company.

(xvi)To the best of our knowledge and belief and according to the information and explanations given to us, term loans availed by the Company were, prima facie, applied by the Company during the year for the purposes for which the loans were obtained.

(xvii)According to the information and explanations given to us, on an overall basis, no funds raised on short-term basis been used during the year for long-term investment.

(xviii)The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the Companies Act, 1956, during the year and hence the question of whether the price at which shares have been issued is prejudicial to the interest of the Company does not arise.

(xix) The Company did not have any outstanding debenture during the year.

(xx) The Company has not raised monies by public issue during the year and hence the question of disclosure and verification of end use of such monies does not arise.

(xxi)To the best of our knowledge and belief and according to the information and explanations given to us, no fraud on or by the Company was noticed or reported during the year.

For SINGHI & CO.

Chartered Accountants

Firm Registration No.302049E

PRADEEP Kumar SINGHI

1-B, Old Post Office Street Partner

Kolkata, the 30th day of May, 2012 (Membership Mo.50773)


Mar 31, 2011

We have audited the attached Balance Sheet of JAY SHREE TEA & INDUSTRIES LIMITED as at 31st March, 2011, the Profit & Loss Account and the Cash Flow Statement of the said Company for the year ended on that date, annexed thereto. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in India. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material mis-statement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

As required by the Companies (Auditors' Report) Order, 2003 as amended by Companies (Auditor's Report) (Amendment) Order, 2004 issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 & 5 of the said order.

Further to our comments in the Annexure referred to above, we report that:

i) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit.

ii) In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books.

iii) We have incorporated the statement of garden expenditure of Sungma Tea Estate, North TukvarTea Estate, Singbulli Tea Estate, Balasun Tea Estate, Marionbarie Tea Estate and accounts of Jay Shree Sugar Mill audited by branch auditor as required by clause (c) of sub-section (3) of section 228 of the Companies Act, 1956.

iv) The Balance Sheet and the Profit & Loss Account and the Cash Flow Statement dealt with by this report are in agreement with the books of account.

v) In our opinion, the Balance Sheet and the Profit & Loss Account and the Cash Flow Statement dealt with by this report, subject to clause (vii) (a) below, comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956.

vi) On the basis of written representations received from the directors as on 31st March, 2011 and taken on record by the Board of Directors, we report that none of the directors are disqualified as on 31st March, 2011 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

vii) Attention is invited to the following:

a. Note no. H in schedule 23 regarding giving impact to the scheme of amalgamation and arrangement based on approval of Hon'ble High Court at Calcutta pending completion of formalities relating to filing the scheme with appropriate authorities to make the scheme effective;

b. Note no. D (iii) and (iv) in schedule 23 regarding carry forward of Minimum Alternate Tax (MAT) Credit Entitlement of Rs.407.01 lacs and recognition of deferred tax assets of Rs.197.69 lacs on capital loss upto 31st March 2011, based on the future taxable income projected by the company. However, we are unable to express our opinion on the convincing evidence of future taxable income and the corresponding recognition thereof;

c. Note No. Fin schedule 23 regarding non-provision for diminution in value of investment of a Subsidiary Company amounting to Rs. 356.20 lacs and non-provision for advances and security deposits given to such subsidiary amounting to Rs.258.63 lacs in view of the reason stated in the said note.

viii) In our opinion and to the best of our information and according to the explanations given to us, the said account together with notes thereon and attached thereto, subject to point no (vii) (a) above and read with para (vii) (b) & (c) above, give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

a) In the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2011;

b) In the case of the Profit & Loss Account, of the profit for the year ended on that date and

c) In the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

(iv) In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business for the purchase of inventory and fixed assets and for the sale of goods and services;

(v) In respect of transactions entered in the register maintained in pursuance of section 301 of the Companies Act, 1956:

(a) To the best of our knowledge and belief and according to the information and explanations given to us, transactions that needed to be entered into the register, have been so entered.

(b) According to the information and explanations given to us, certain transactions for purchase and sale of goods and materials with the subsidiary Companies for which alternate quotations were not available, have been made at prices which are prima facie reasonable having regard to the prevailing market prices at the relevant time.

(vi) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Section 58A, 58AA or any other relevant provisions of the Act, and the rules framed there under and the directives issued by the Company Law Board, National Company Law Tribunal or the Reserve Bank of India, or any Court or any other Tribunal where applicable, with regard to the deposits accepted from the public.

(vii) In our opinion, the internal audit functions carried out during the year by firms of Chartered Accountants appointed by the management have been commensurate with the size of the Company and the nature of its business.

(viii) We have broadly reviewed the books of account and records maintained by the Company relating to plantation and the manufacture of Sulphuric Acid pursuant to the order made by the Central Government for the maintenance of cost records under Section 209 (1)(d) of the Companies Act, 1956 and are of the opinion that prima facie the prescribed accounts and records have been made and maintained. We have, however, not made a detailed examination of the records with a view to determining whether they are accurate or complete. To the best of our knowledge and according to the information and explanations given to us, the Central Government has not prescribed the maintenance of cost records for any other product of the Company.

(ix) According to the information and explanations given to us in respect of statutory and other dues:

(a) The Company has generally been regular in depositing undisputed statutory dues, including provident fund, employees' state insurance, investor education and protection fund, income tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess and any other statutory dues with the appropriate authorities during the year except Professional Tax of Rs.91,835/-, House Tax of Rs.57,052/- and Panchayat Tax of Rs.2,20,000/- which are outstanding for more than six months.

(b) The following disputed statutory liabilities have not been deposited in view of pending Appeals:

Statute Nature Forum Amount involved Related year (in lacs)

Income Tax Act Income Tax CIT (A) 107.82 2006-07 & 2007-08

WB Sales Tax Act Sales Tax W.B Appellate & 243.64 1996-97 to 1997-98, revisional Board 2000-01 & 2003-04 2005-06 & 2006-07 WB Sales Tax Act Sales Tax Joint Commissioner 17.33 1999-00, 2001-02 of Commercial Taxes & 2006-07

Provident Fund Act Provident Fund Hon'ble Calcutta 24.39 1999 to 2005 High Court

(x) The Company does not have accumulated losses as at the end of the year and the Company has not incurred cash losses during the current and the immediately preceding financial year.

(xi) Based on our audit procedures and on the basis of information and explanations given by the management, we are of the opinion that the Company has not defaulted in the repayment of dues to financial institutions and banks.

(xii) According to the information and explanations given to us, the Company has not granted loans or advances on the basis of security by way of pledge of shares, debentures and other securities.

(xiii) In our opinion, the nature of activities of the company is such that the provisions of any special statute including chit fund/nidhi/mutual benefit fund/societies are not applicable to it.

(xiv) In our opinion and according to the information and explanations given to us, the Company is not a dealer or trader in securities. The Company has invested surplus funds in marketable securities and mutual funds. According to the information and explanations given to us, proper records have been maintained of the transactions and contracts relating to purchase of investments and timely entries have been made therein. All the investments have been held by the Company in its own name.

(xv) According to the information and explanations given to us, the Company has given a guarantee to a bank amounting to Rs. 3568.40 lacs for loan taken by a subsidiary company from the bank during the year and the terms & conditions whereof are not prejudicial to the interest of the Company.

(xvi) To the best of our knowledge and belief and according to the information and explanations given to us, term loans availed by the Company were, prima facie, applied by the Company during the year for the purposes for which the loans were obtained.

(xvii) According to the information and explanations given to us, on an overall basis, funds raised on short-term basis, prima facie to the tune of Rs. 2568.68 lacs been used during the year for long-term investment.

(xviii) The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the Companies Act, 1956, during the year and hence the question of whether the price at which shares have been issued is prejudicial to the interest of the Company does notarise.

(xix) No debentures is outstanding at the year end. Hence, this clause is not applicable.

(xx) The Company has not raised monies by public issue during the year and hence the question of disclosure and verification of end use of such monies does not arise.

(xxi) To the best of our knowledge and belief and according to the information and explanations given to us, no fraud on or by the Company was noticed or reported during the year.

For SINGHI & CO.

Chartered Accountants

Firm Registration No. 302049E

PRADEEP KUMAR SINGHI

1-B, Old Post Office Street, Partner

Kolkata, the 24th day of August, 2011 (Membership No. 50773)


Mar 31, 2010

We have audited the attached Balance Sheet of JAY SHREE TEA & INDUSTRIES LIMITED as at 31st March, 2010, the Profit & Loss Account and the Cash Flow Statement of the said Company for the year ended on that date, annexed thereto. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in India. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material mis-statement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

As required by the Companies (Auditors Report) Order, 2003 as amended by Companies (Auditors Report) (Amendment) Order, 2004 issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4& 5 of the said order.

Further to our comments in the Annexure referred to above, we report that:

i) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit.

ii) In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books.

iii) We have incorporated the statement of garden expenditure of Sungma Tea Estate, Singbulli Tea Estate, Balasun Tea Estate and Marionbarie Tea Estate audited by the Branch Auditor as required by clause (c) of sub-section (3) of section 228 of the Companies Act, 1956.

iv) The Balance Sheet, the Profit & Loss Account and the Cash Flow Statement dealt with by this report are in agreement with the books of account.

v) In our opinion, the Balance Sheet, the Profit & Loss Account and the Cash Flow Statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956.

vi) On the basis of written representations received from the directors as on 31st March, 2010 and taken on record by the Board of Directors, we report that none of the directors are disqualified as on 31st March, 2010 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

vii) Attention is invited to the following notes in Schedule 23:

A. Note No. D (iii) regarding recognition of Minimum Alternate Tax (MAT) Credit Entitlement of Rs.354.11 lacs upto 31st March 2010, based on the future normal taxable income projected by the company. However, we are unable to express our opinion on the convincing evidence of future normal taxable income, and the corresponding recognition of MAT Credit Entitlement;

B. Note No. F regarding non-provision for diminution in value of investment of a subsidiary Company amounting to Rs. 356.20 lacs and non-provision for advances given to such subsidiary amounting to Rs. 139.62 lacs in view of the reason stated in the said note.

viii) In our opinion and to the best of our information and according to the explanations given to us, the said accounts, read with Para (vii) above, give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

a) In the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2010;

b) In the case of the Profit & Loss Account, of the profit for the year ended on that date and

c) In the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

ANNEXURE TO THE AUDITORS REPORT (Referred to in paragraph 3 of our report of even date) As required by the Companies (Auditors Report) (Amendment) Order 2004, we report that:

(i) In respect of its fixed assets:

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

(b) The fixed assets were physically verified during the year by the management which in our opinion provides for physical verification of all the fixed assets at reasonable intervals. According to the information and explanations given to us, no material discrepancies were noticed on such verification.

(c) The Company has not disposed off substantial part of fixed assets during the year.

(ii) In respect of its inventories:

(a) As explained to us, inventories were physically verified during the year by the management at reasonable intervals.

(b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories followed by the management were reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) In our opinion and according to the information and explanations given to us, the Company has maintained proper records of its inventories and no material discrepancies were noticed on physical verification.

(iii) (a) According to the information and explanations given to us, the company has granted unsecured loan to 2 (two) Subsidiary Companies amounting to Rs. 231.61 lacs (balance at the year end)(maximum amount outstanding during the year was Rs. 337.45 lacs) which is repayable on demand. The other terms and conditions of the loan are prima-facie not prejudicial to the interest of the Company.

(b) Since there is no overdue amount of principal and interest, hence clause 4 (iii) (d) of this Order is not applicable.

(c) The company has not taken any loans secured or unsecured from companies , firms or other parties covered in the register maintained under section 301 of the act, hence clause (f) & (g) of the Order are not applicable.

(iv) In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business for the purchase of inventory and fixed assets and for the sale of goods and services;

(v) In respect of transactions entered in the register maintained in pursuance of section 301 of the Companies Act, 1956:

(a) To the best of our knowledge and belief and according to the information and explanations given to us, transactions that needed to be entered into the register, have been so entered.

(b) According to the information and explanations given to us, certain transactions for purchase and sale of goods and materials with the subsidiary Company for which alternate quotations were not available, have been made at prices which are prima facie reasonable having regard to the prevailing market prices at the relevant time.

(vi) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Section 58A, 58AA or any other relevant provisions of the Act, and the rules framed there under and the directives issued by the Company Law Board, National Company Law Tribunal or the Reserve Bank of India, or any Court or any other Tribunal where applicable, with regard to the deposits accepted from the public.

(vii) In our opinion, the internal audit functions carried out during the year by firms of Chartered Accountants appointed by the management have been commensurate with the size of the Company and the nature of its business.

(viii) We have broadly reviewed the books of account and records maintained by the Company relating to plantation and the manufacture of Sulphuric Acid pursuant to the order made by the Central Government for the maintenance of cost records under Section 209 (1)(d) of the Companies Act, 1956 and are of the opinion that prima facie the prescribed accounts and records have been made and maintained. We have, however, not made a detailed examination of the records with a view to determining whether they are accurate or complete. To the best of our knowledge and according to the information and explanations given to us, the Central Government has not prescribed the maintenance of cost records for any other product of the Company.

(ix) According to the information and explanations given to us in respect of statutory and other dues:

(a) The Company has generally been regular in depositing undisputed statutory dues including provident fund, employees state insurance, investor education and protection fund, income tax, sales tax, wealth tax, service tax ,custom duty, excise duty, cess and any other statutory dues with the appropriate authorities during the year except professional tax of Rs. 1,28,297/-, house tax of Rs.65,814/- and panchayat tax of Rs.3,20,000/-, which are outstanding for more than six months.

(b) The following disputed statutory liabilities have not been deposited in view of pending Appeals:

Statute Nature Forum

Income Tax Act Income Tax CIT (A)

WB Sales Tax Act Sales Tax WB Appellate & Revisional Board

WB Sales Tax Act Sales Tax Sr.Joint Commissioner of Comm. Taxes

WB Sales Tax Act Sales Tax Joint Commissioner of Comm. Taxes

Provident Fund Act Provident Fund Calcutta High Court

Central Excise Act Excise Duty Guwahati High Court



Statue Amount involved Related year (Rs. in lac)

Income Tax Act 34.33 2006-07

WB Sales Tax Act 204.93 1996-97 to 1997-98, 2000-01 & 2003-04

WB Sales Tax Act 300.75 2005-06 & 2006-07

WB Sales Tax Act 113.01 1999-00,2001-02, 2005-06 & 2006-07

Provident Fund Act 24.39 1999 to 2005

Central Excise Act 16.10 1998-99 to 2002-03

(x) The Company does not have accumulated losses as at the end of the year and the Company has not incurred cash losses during the current and the immediately preceding financial year.

(xi) Based on our audit procedures and on the basis of information and explanations given by the management, we are of the opinion that the Company has not defaulted in the repayment of dues to financial institutions and banks.

(xii) According to the information and explanations given to us, the Company has not granted loans or advances on the basis of security by way of pledge of shares, debentures and other securities.

(xiii) In our opinion, the nature of activities of the company is such that the provisions of any special statute including chit fund/nidhi/mutual benefit fund/societies are not applicable to it.

(xiv) In our opinion and according to the information and explanations given to us, the Company is not a dealer or trader in securities. The Company has invested surplus funds in marketable securities and mutual funds. According to information and explanations given to us, proper records have been maintained of the transactions and contracts and timely entries have been made therein. All the investments have been held by the Company in its own name.

(xv) According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions.

(xvi) To the best of our knowledge and belief and according to the information and explanations given to us, term loans availed by the Company were, prima facie, applied by the Company during the year for the purposes for which the loans were obtained, other than temporary deployment pending application.

(xvii) According to the information and explanations given to us, on an overall basis, funds raised on short-term basis have, prima facie, not been used during the year for long-term investment.

(xviii) The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the Companies Act, 1956, during the year and hence the question of whether the price at which shares have been issued is prejudicial to the interest of the Company does notarise.

(xix) No debentures have been issued during the year or exist on the Balance Sheet date. Hence, this clause is not applicable.

(xx) The Company has not raised monies by public issue during the year and hence the question of disclosure and verification of end use of such monies does not arise.

(xxi) To the best of our knowledge and belief and according to the information and explanations given to us, no fraud on or by the Company was noticed or reported during the year.

For SINGHI & CO. Chartered Accountants

Firm Registration No. 302049E

PRADEEP KUMAR SINGHI

1-B, Old Post Office Street, Partner

Kolkata, the 28th day of April, 2010 (Membership No. 50773)

 
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