Auditor Report of Kanco Tea & Industries Ltd.
Mar 31, 2017
TO THE MEMBERS OF KANCO TEA & INDUSTRIES LIMITED
REPORT ON THE STANDALONE FINANCIAL STATEMENTS
We have audited the accompanying standalone financial statements of KANCO TEA & INDUSTRIES LIMITED, (âthe Companyâ) which comprise the Balance Sheet as at 31st March, 2017, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility For The Standalone Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation and presentation of these standalone 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 principles generally accepted in India, including the Accounting Standard specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, 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.
Auditorâs Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those 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. The procedures selected depend on the auditorâs 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 financial control relevant to the Companyâs preparation of the financial statement that give a true and fair view 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 the Companyâs Directors, 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 on the standalone financial statements.
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, of the state of affairs of the Company as at 31st March, 2017 and its profit and its cash flows for the year ended on that date.
Report On Other Legal And Regulatory Requirements
1) As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub section (11) of Section 143 of the Act, we give in the Annexure âAâ, a statement on the matters specified in paragraphs 3 and 4 of the Order.
2) As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;
b) In our opinion, proper books of account as required by law have been kept by the Company 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 Statement dealt with by this Report are in agreement with the books of account;
d) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of written representations received from the directors as on 31st March, 2017 and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2017 from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ and
g) With respect to other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
(i) The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note No. 28 to the financial statements;
(ii) The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses;
(iii) There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
(iv) The Company has duly provided requisite disclosures in its financial statements as to holdings as well as dealing in Specified Bank Notes during the period from 8th November, 2016 to 30th December, 2016 and these are in accordance with the books of accounts maintained by the Company and as produced to us by the Management -Refer Note 43.
ANNEXURE âAââ TO THE INDEPENDENT AUDITORSâ REPORT
REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING âREPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTâ OF OUR REPORT OF EVEN DATE.
On the basis of such checks as we considered appropriate and according to the information and explanation given to us during the course of our audit, we report that:
1. a) The Company has maintained proper records showing full particulars including, quantitative details and situation of fixed assets.
b) As explained to us some of the fixed assets have been physically verified by the management at reasonable intervals. We have been informed that no material discrepancies were noticed on such verification.
c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
2. a) As explained to us, inventory has been 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 inventory followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.
c) No material discrepancy was noticed on physical verification of stocks by the management as compared to book records.
3. The Company has granted loan to a body corporate covered in the register maintained under Section 189 of the Companies Act, 2013:
a) In our opinion, the rate on interest and other terms and conditions on which loans had been granted to the body corporate listed in the register maintained under Section 189 of the Act were not, prima facie, prejudicial to the interest of the Company;
b) The loan so granted to the body corporate is repayable on demand;
c) The amount of outstanding loan as on 31st March, 2017 is r 2,17,17,383/- and the Company has written letters and in active dialogue for realization of the same.
4. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Section 185 and 186 of the Act, with respect to loans and investments made.
5. The Company has not accepted deposits from the public covered within the meaning of directives issued by the Reserve Bank of India and provisions of Sections 73 to Section 76 or any other relevant provisions of the Act and rules framed there under are not applicable.
6. As per information & explanation given by the management, maintenance of cost records has been specified by the Central Government under sub section (1) of Section 148 of the Act and we are of the opinion that prima facie the prescribed accounts and records have been made and maintained. We have not however, made a detailed examination of the records with a view to determine whether they are accurate or complete.
7. a) According to the records of the Company, undisputed statutory dues including Provident Fund, Employees
State Insurance, Income-tax, Sales-tax, Service Tax, Custom Duty, Excise Duty, Value Added Tax, and Cess to the extent applicable and any other statutory dues have generally been regularly deposited with the appropriate authorities. According to the information and explanations given to us there were no outstanding statutory dues as on 31st of March, 2017 for a period of more than six months from the date they became payable.
b) According to the information and explanations given to us and on the basis of the documents and records, the disputed statutory dues which have not been deposited with the appropriate authorities are as under:
|
Serial No |
Name of Statute |
Nature of Dues |
Financial Year to which the matter pertains |
Amount in |
Forum where dispute is pending |
|
1. |
West Bengal Value Added Tax Act,2013 |
Sales Tax |
2009-10 |
7,94,960/- |
West Bengal Commercial Taxes Appellate & Revision Board, West Bengal |
|
2. |
Income Tax Act,1961 |
Income Tax Demand |
2009-10 |
1,24,257/- |
CIT (Appeals), Kolkata |
|
3. |
Income Tax Act,1961 |
Income Tax Demand |
2011-12 |
35,684/- |
CIT (Appeals), Kolkata |
|
4. |
Income Tax Act,1961 |
Income Tax Demand |
2012-13 |
100/- |
CIT (Appeals), Kolkata |
8. Based on our audit procedures and on the information and explanations given by the management, we are of the opinion that, the Company has not defaulted in repayment of loans or borrowings to any bank during the year. Further, the Company does not have any debentures and loan from financial institution or government.
9. In our opinion and according to the information and explanations given to us, term loans have been applied for the purposes for which they were obtained.
10. Based on the audit procedures performed and the information and explanations given to us, we report that no fraud on or by the Company has been noticed or reported during the year, nor have we been informed of such case by the management.
11. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the said Act.
12. In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company.
13. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with Sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the notes to financial statements as required by the applicable accounting standards.
14. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
15. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him.
16. The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
17.
ANNEXURE âBââ TO THE INDEPENDENT AUDITORSâ REPORT
REFERRED TO IN PARAGRAPH 2(F) UNDER THE HEADING âREPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTââ OF OUR REPORT OF EVEN DATE.
Report on the internal financial controls under clause (i) of sub section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of KANCO TEA AND INDUSTRIES LIMITED (âthe Companyâ) as of 31 March 2017 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March, 2017, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For JAIN & CO.
Chartered Accountants
(Registration No. 302023E)
P-21/22, Radhabazar Street, (CA M.K. JAIN)
Kolkata - 700 001. Partner
Dated the 30th day of May, 2017 (Membership No. 055048)
Mar 31, 2016
INDEPENDENT AUDITORSâ REPORT TO THE MEMBERS OF KANCO TEA & INDUSTRIES LIMITED REPORT ON THE STANDALONE FINANCIAL STATEMENTS
We have audited the accompanying standalone financial statements of KANCO TEA & INDUSTRIES LIMITED,(âthe Companyâ) which comprise the Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
MANAGEMENTâS RESPONSIBILTY FOR THE STANDALONE FINANCIAL STATEMENTS
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013(âthe Actâ) with respect to the preparation and presentation of these standalone 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 principles generally accepted in India, including the Accounting Standard specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, 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.
AUDITORâS RESPONSIBILITY
Our responsibility is to express an opinion on these financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those 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. The procedures selected depend on the auditorâs 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 financial control relevant to the Companyâs preparation of the financial statement that give a true and fair view 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 the Companyâs Directors, 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 on the standalone financial statements.
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, of the state of affairs of the Company as at 31st March, 2016 and its profit and its cash flows for the year ended on that date.
1) As required by the Companies (Auditorâs Report) Order ,2015 (âthe Orderâ) issued by the Central Government of India in terms of sub section (11) of Section 143 of the Act, we give in the Annexure âAâ, a statement on the matters specified in paragraphs 3 and 4 of the Order.
2) As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;
b) In our opinion, proper books of account as required by law have been kept by the Company 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 Statement dealt with by this Report are in agreement with the books of account;
d) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of written representations received from the directors as on 31st March, 2016 and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2016 from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ and
g) With respect to other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
(i) The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note no. 28 to the financial statements;
(ii) The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses;
(iii) There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
On the basis of such checks as we considered appropriate and according to the information and explanation given to us during the course of our audit, we report that:
1. a) The company has maintained proper records showing full particulars including, quantitative details and situation of fixed assets.
b) As explained to us some of the fixed assets have been physically verified by the management at reasonable intervals. We have been informed that no material discrepancies were noticed on such verification.
c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
2. a) As explained to us, inventory has been 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 inventory followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business.
c) No material discrepancy was noticed on physical verification of stocks by the management as compared to book records.
3. The Company has granted loan to a body corporate covered in the register maintained under section 189 of the Companies Act,2013:
a) In our opinion ,the rate on interest and other terms and conditions on which loans had been granted to the body corporate listed in the register maintained under Section 189 of the Act were not, prima facie , prejudicial to the interest of the Company.
b) The loan so granted to the body corporate is repayable on demand;
c) The amount of outstanding loans as on 31st March, 2016 is Rs, 4,34,34,766/- and a sum of Rs, 35,18,216/- is overdue on account of interest and the Company has written letters and in active dialogue for realization of the same.
4. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Section 185 and 186 of the Act, with respect to loans and investments made.
5. The Company has not accepted deposits from the public covered within the meaning of directives issued by the Reserve Bank of India and provisions of Sections 73 to Section 76 or any other relevant provisions of the Act and rules framed there under are not applicable.
6. As per information & explanation given by the management, maintenance of cost records has been specified by the Central Government under sub section (1) of Section 148 of the Act and we are of the opinion that prima facie the prescribed accounts and records have been made and maintained. We have not however, made a detailed examination of the records with a view to determine whether they are accurate or complete.
7. a) According to the records of the company, undisputed statutory dues including Provident Fund,
Employees State Insurance, Income-tax, Sales-tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Value Added Tax, and Cess to the extent applicable and any other statutory dues have generally been regularly deposited with the appropriate authorities. According to the information and explanations given to us there were no outstanding statutory dues as on 31st of March, 2016 for a period of more than six months from the date they became payable.
b) According to the information and explanations given to us and on the basis of the documents and records the disputed statutory dues which have not been deposited with the appropriate authorities are as under:
|
Serial No. |
Name of Statute |
Nature of Dues |
Financial Year to which the matter pertains |
Amount in (Rs,) |
Forum where dispute is pending |
|
1 |
West Bengal Value Added Tax Act, 2013 |
Sales Tax |
2009-10 |
7,94,960/- |
West Bengal Commercial Taxes Appellate & Revision Board, W.B. |
|
2 |
Income Tax Act, 1961 |
Income Tax Demand |
2009-10 |
1,24,257/- |
CIT (Appeals) Kolkata |
|
3 |
Income Tax Act, 1961 |
Income Tax Demand |
2011-12 |
35,684/- |
CIT (Appeals) Kolkata |
|
4 |
Income Tax Act, 1961 |
Income Tax Demand |
2012-13 |
100/- |
CIT (Appeals) Kolkata |
8. Based on our audit procedures and on the information and explanations given by the management, we are of the opinion that, the Company has not defaulted in repayment of loans or borrowings to any bank during the year. Further, the Company does not have any debentures and loan from financial institution or government.
9. The Company has not raised any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year.
10. Based on the audit procedures performed and the information and explanations given to us, we report that no fraud on or by the Company has been noticed or reported during the year, nor have we been informed of such case by the management.
11. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the said Act.
12. In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company.
13. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the notes to financial statements as required by the applicable accounting standards.
14. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
15. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him.
16. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
REFERRED TO IN PARAGRAPH 2(f) UNDER THE HEADING âREPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTSâ^ OUR REPORT OF EVEN DATE.
REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER CLAUSE (i) OF SUB SECTION 3 OF SECTION 143 OF THE COMPANIES ACT, 2013 (âTHE ACTâ)
We have audited the internal financial controls over financial reporting of KANCO TEA AND INDUSTRIES LIMITED (âthe Companyâ) as of 31 March 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For Jain & Co.
Chartered Accountants
(Registration No- 302023E)
P-21/22, Radhabazar Street, (M.K. Jain)
Kolkata - 700 001 Partner
Kolkata, 14th May, 2016 (Membership No. 055048)
Mar 31, 2015
We have audited the accompanying financial statements of KANCO TEA &
INDUSTRIES LIMITED, which comprise the Balance Sheet as at 31st March,
2015, the Statement of Profit and Loss, the Cash Flow Statement for the
year then ended, and a summary of significant accounting policies and
other explanatory information.
MANAGEMENT''S RESPONSIBILTY FOR THE STANDALONE FINANCIAL STATEMENTS
The Company''s Board of Directors is responsible for the matters
stated in Section 134(5) of the Companies Act, 2013("the Act") with
respect to 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 principles
generally accepted in India, including the Accounting Standard
specified under section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, 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 have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those 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. The 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 financial control relevant to the
Company''s preparation of the financial statement that give a true and
fair view in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose for expressing an opinion on
whether the Company has in place an adequate internal financial control
system over financial reporting and the operating effectiveness of such
controls. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by the Company''s Directors, 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 on the financial
statements.
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, of the state of affairs of the Company as
at 31st March, 2015 and its profit and its cash flows for the year
ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1) As required by the Companies (Auditor''s Report) Order ,2015
("the Order") issued by the Central Government of India in terms of
sub section (11) of Section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order.
2) As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit;
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books;
c) The Balance Sheet, the Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read Rule
7 of the Companies (Accounts) Rules, 2014.
e) On the basis of written representations received from the directors
as on 31s1 March, 2015 and taken on record by the Board of Directors,
none of the directors is disqualified as on 31s1 March, 2015 from being
appointed as a director in terms of Section 164(2) of the Act.
f) With respect to other matters to be included in the Auditor''s
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
(i) The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer note no. 28 to
the financial statements
(ii) The Company did not have any long term contracts including
derivative contracts for which there were any material foreseeable
losses.
(iii) There were no amounts which were required to be transferred to
the Investor Education and Protection Fund by the Company.
ANNEXURE TO THE INDEPENDENT AUDITORS'' REPORT REFEERRED TO IN
PARAGRAPH 1 UNDER THE HEADING "REPORT ON OTHER LEGAL AND REGULATORY
REQUIREMENTS" OF OUR REPORT OF EVEN DATE
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
1. a) The company has maintained proper records showing full
particulars including, quantitative details and situation of fixed
assets.
b) As explained to us some of the fixed assets have been physically
verified by the management at reasonable intervals. We have been
informed that no material discrepancies were noticed on such
verification.
2. a) As explained to us, inventory has been 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 inventory
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
c) In our opinion and on the basis of our examination of the records,
the Company is generally maintaining proper records of its inventory.
No material discrepancy was noticed on physical verification of stocks
by the management as compared to book records.
3. According to the information and explanations given to us and on the
basis of our examination of the books of account, We are of the opinion
that the Company has granted unsecured loans to companies listed in the
register maintained under Section 189 of the Act. The amount of
outstanding loans as on 31st March, 2015 is Rs 4,37,24,766/-. We are
also of the opinion that the company is regular in receipt of both
principal and interest amount.
4. In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control procedure
commensurate with the size of the company and the nature of its
business, for the purchase of inventories, fixed assets and with
regards to sale of goods and services. During the course of our audit,
no major instance of continuing failure to correct any weaknesses in
the internal controls has been noticed.
5. The Company has not accepted deposits from the public covered within
the meaning of directives issued by the Reserve Bank of India and
provisions of Sections 73 to Section 76 or any other relevant
provisions of the Act and rules framed there under;
6. As per information & explanation given by the management,
maintenance of cost records has been specified by the Central
Government under sub section (1) of Section 148 of the Act and we are
of the opinion that prima facie the prescribed accounts and records
have been made and maintained. We have not however, made a detailed
examination of the records with a view to determine whether they are
accurate or complete;
7. a) According to the records of the company, undisputed statutory
dues including Provident Fund, Employees State Insurance, Income-tax,
Sales-tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Value
Added Tax, and Cess to the extent applicable and any other statutory
dues have generally been regularly deposited with the appropriate
authorities. According to the information and explanations given to us
there were no outstanding statutory dues as on 31st of March, 2015 for
a period of more than six months from the date they became payable.
b) According to the information and explanations given to us and on the
basis of the documents and records the disputed statutory dues which
have not been deposited with the appropriate authorities are as under:
Serial Name of Nature of Financial Year
No. Statute Dues to which the
matter pertains
1 West Bengal West Bengal 2009-10
Value Added VAT
Tax Rules, 2005
2 Agricultural Assam 2008-09
Income Tax Act, Agricultural
1939 Income Tax
3 Agricultural Assam 2009-10
Income Tax Act, Agricultural
1939 Income Tax
4 Income Tax Act, Income Tax 2009-10
1961
5 CST, West West Bengal 2011-12
Bengal Rule, CST
1958
6. West Bengal West Bengal 2011-12
Value Added VAT
Tax Rules,2005
Name of
Statute Amount in Forum where
(Rs.) dispute is pending
West Bengal
Value Added
Tax Rules, 2005 7,94,960/- West Bengal
Commercial Taxes
Appellate &
Revision Board.
Agricultural
Income Tax Act,
1939 4,58,943/- Deputy
Commissioner of
Taxes (Appeals)
Guwahati
Agricultural
Income Tax Act,
1939 5,39,698/-
Income Tax Act,
1961 2,48,520/- CIT (Appeals)
-IV, Kolkata
CST, West
Bengal Rule,
1958 5,62,917/- JCCT, West Bengal
Kolkata
West Bengal
Value Added
Tax Rules,2005 2,99,714/- JCCT, West Bengal
Kolkata
c) According to the information and explanations given to us and on the
basis of the documents no amount is required to be transferred to
Investor Education and Protection Fund in accordance with the relevant
provisions of the Companies Act,1956 (1 of 1956) and rules made there
under for the year ending 31st March, 2015.
8. The Company does not have any accumulated losses as at 31st March,
2015 and has not incurred cash losses in the financial year and in the
immediately preceding financial year.
9. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that, the
Company has not defaulted in repayment of dues to financial
institutions and banks;
10. According to the information and explanations given to us, the
Company has not given any guarantees for loan taken by others from bank
or financial institutions;
11. Based on our audit procedures and on the information given by the
management, we report that the company has applied the money received
as term loans during the year for the purposes for which they were
obtained;
12. Based on the audit procedures performed and the information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the year, nor have we been informed
of such case by the management.
For Jain & Co.
Chartered Accountants
Registration No 302023E
P-21/22, Radhabazar Street, M.K. Jain
Kolkata-700 001 Partner
Dated : the 14th day of May, 2015 Membership No. 055048
Mar 31, 2014
We have audited the accompanying financial statements of KANCO TEA &
INDUSTRIES LIMITED ("the Company"), which comprise the Balance Sheet as
at 31st March, 2014, and 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.
MANAGEMENTS RESPONSIBILTY 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 notified under the Companies Act, 1956 ("the
Act") read with General Circular 15/2013 dated 13th September, 2013 of
the Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013. This 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.
AUDITORS 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. Those 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. The 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 Company''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 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 and 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.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") 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:
a) 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;
b) 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;
c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards notified under
the Companies Act,1956,read with the General Circular 15/2013 dated
13th September,2013 of the Ministry of Company Affairs in respect of
Section 133 of the Companies Act,2013;
e) on the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is 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 AUDITORSÂ REPORT
REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING ÂREPORT ON OTHER LEGAL AND
REGULATORY REQUIREMENTSÂ OF OUR REPORT OF EVEN DATE
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
1. a) The company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
b) As explained to us, fixed assets have been physically verified by
the management at reasonable intervals; no material discrepancies were
noticed on such verification.
c) In our opinion and according to the information and explanations
given to us, substantial part of fixed assets has not been disposed off
during the year and therefore does not affect the going concern
assumption.
2. a) As explained to us, inventories have been 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 are reasonable and adequate in relation to
the size of the company and the nature of its business.
c) In our opinion and on the basis of our examination of the records,
the Company is generally maintaining proper records of its inventories.
No material discrepancy was noticed on physical verification of stocks
by the management as compared to book records.
3. a) i) According to the information and explanations given to us and
on the basis of our examination of the books of account, the Company
has granted interest free unsecured loan to a company listed in the
register maintained under Section 301 of the Companies Act, 1956. The
maximum amount involved during the year and year end balances amounts
to " 4,56,62,990/- and " 4,34,34,766/- respectively.
ii) The other terms and conditions of such loans are not prejudicial to
the interests of the Company;
iii) The Company is regular in repaying the principal amounts as
stipulated wherever applicable;
b) According to the information and explanations given to us and on the
basis of our examination of the books of account, the Company has not
taken loans from companies, firms or other parties listed in the
register maintained under Section 301 of the Companies Act, 1956. Thus
sub clauses iii (f) & iii (g) are not applicable to the company.
3. In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control procedure
commensurate with the size of the company and the nature of its
business, for the purchase of inventories, fixed assets and with
regards to sale of goods and services. During the course of our audit,
no major instance of continuing failure to correct any weaknesses in
the internal controls has been noticed.
4. Based on the audit procedures applied by us and according to the
information and explanations provided by the management we are of the
opinion that there were no contracts or arrangements that need to be
entered in the register maintained under section 301 of the Companies
Act 1956. Thus clauses v (a) and v (b) are not applicable to the
Company;
5. The Company has accepted deposits from the public covered within
the meaning of Sections 58A and Section 58AA and have complied with the
rules framed therein;
6. As per information & explanations given by the management, the
Company has an internal audit system commensurate with its size and the
nature of its business.
Annexure to the Independent Auditors Report (Contd.)
7. As per information & explanation given by the management,
maintenance of cost records has been prescribed by the Central
Government under clause (d) of sub-section (1) of section 209 of the
Act and we are of the opinion that prima facie the prescribed accounts
and records have been made and maintained. We have not, however, made a
detailed examination of the records with a view to determine whether
they are accurate or complete;
8. a) According to the records of the company, undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income-tax, Sales-tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, cess to the extent applicable and any
other statutory dues have generally been regularly deposited with the
appropriate authorities.
b) According to the information and explanations given to us there were
no outstanding statutory dues as on 31st of March, 2014 for a period of
more than six months from the date they became payable.
c) According to the information and explanations given to us and on the
basis of the documents and records the disputed statutory dues which
have not been deposited with the appropriate authorities are as under:
Serial Name of Nature of Financial Year
No. Statute Dues to which the
matter pertains
1 West Bengal West Bengal 2009-10
Value Added VAT
Tax Rules,2005
2 Central Sales CST 2010-11
Tax Act,1956
3 Agricultural Agricultural 2008-09
Income Tax Act, Income Tax
1939
4 Agricultural Agricultural 2009-10
Income Tax Income Tax
Act,1939
5 Income Tax Income Tax 2009-10
Act,1961
6 Income Tax Short deduction 2013-14
Act,1961 of TDS
alongwith
Interest
7 Income Tax Short deduction 2011-12
Act,1961 of TDS
alongwith
Interest
8 Income Tax Short deduction 2011-12
Act,1961 of TDS
alongwith
Interest
Name of Amount in Forum where
Statute (") dispute is pending
West Bengal Value Added
Tax Rules,2005 7,94,960/- West Bengal Commercial Taxes
Appellate & Revision Board.
Central Sales Tax Act,1956 16,243/- Joint Commissioner
of Commercial taxes, South
Circle, Kolkata
Agricultural Income
Tax Act, 1939 4,58,943/- Deputy Commissioner of Taxes
Agricultural Income
Tax Act, 1939 5,39,698/- (Appeals), Guwahati
Income Tax Act,1961 2,48,520/- Commissioner of Income Tax
Appeals - IV
Income Tax Act,1961 2,570/- Deputy. Commissioner of
Income Tax, CPC-TDS
Income Tax Act,1961 930/- ITO TDS Ward 58(2), Kolkata
Income Tax Act,1961 2,610/- ITO TDS WD 58(2), Kolkata
9. The Company does not have any accumulated losses as at 31st March,
2014 and has not incurred cash losses in the financial year and in the
immediately preceding financial year.
10. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that, the
Company has not defaulted in repayment of dues to financial
institutions and banks;
11. According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
12. The Company is not a chit fund or a nidhi /mutual benefit
fund/society. Therefore, the provision of this clause of the Companies
(Auditor''s Report) Order, 2003 (as amended) is not applicable to the
Company.
13. According to information and explanations given to us, the Company
has maintained proper records of the transactions for dealing in
shares, securities and other investments and timely entries have been
made therin. The shares, securities, debentures and other investments
have been held by the company in its own name.
14. According to the information and explanations given to us, the
Company has not given any guarantees for loan taken by others from a
bank or financial institution.
15. Based on our audit procedures and on the information given by the
management, we report that the company has applied the money received
as term loans during the year for the purposes for which they were
obtained, other than temporary deployment pending application;
16. Based on the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company as at 31st
March, 2014, we report that no funds raised on short-term basis have
been used for long-term investment by the Company.
17. Based on the audit procedures performed and the information and
explanations given to us by the management, we report that the Company
has not made any preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the
Act during the year.
18. The Company has not issued any debenture and hence no securities
have been created;
19. The Company has not raised any money by public issue during the
year.
20. Based on the audit procedures performed and the information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the year, nor have we been informed
of such case by the management.
For Jain & Co.
Chartered Accountants
Registration No 302023E
P-21/22, Radhabazar Street, M.K. Jain
Kolkata-700 001 Partner
Dated : the 9th day of May, 2014 Membership No. 055048
Mar 31, 2013
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of KANCO TEA &
INDUSTRIES LIMITED ("the Company"), which comprise the Balance Sheet as
at 31st March, 2013, and 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 RESPONSIBILTY 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"). This 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. Those 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 discolsures in the financial statements. The procedures
selected depend on the auditor''s judgement, 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. 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 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, 2013;
b) in the case of the Statement of Profit and 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.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditors'' Report) Order, 2003 ("the
Order") 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 :
a) 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;
b) 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;
c) the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) in our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e) on the basis of written representations received from the directors
as on March 31, 2013 and taken on record by the Board of Directors,
none of the directors is disqualified 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.
ANNEXURE TO THE AUDITORS'' REPORT
REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING "REPORT ON OTHER LEGAL AND
REGULATORY REQUIREMENTS" OF OUR REPORT OF EVEN DATE
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that :
1) a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of its fixed
assets.
b) As explained to us, fixed assets have been physically verified by
the management at reasonable intervals; no material discrepancies were
noticed on such verification.
c) In our opinion and according to the information and explanations
given to us, substantial part of fixed assets has not been disposed off
during the year and therefore does not affect the going concern
assumption.
2) a) As explained to us, inventories have been 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 physicalverification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
c) In our opinion and on the basis of our examination of the records,
the company is generally maintaining proper records of its inventories.
No material discrepancy was noticed on physical verification of stocks
by the management as compared to book records.
3) a) i) According to the information and explanations given to us and
on the basis of our examination of the books of account, the Company
has granted interest free unsecured loan to a company listed in the
register maintained under Section 301 of the Companies Act, 1956. The
maximum amount involved during the year and year end balances amounts
to " 4,80,99,994 and " 4,56,62,991 respectively.
ii) The other terms and conditions of such loans are not prejudicial to
the interests of the Company;
iii) The company is regular in repaying the principal amounts as
stipulated wherever applicable;
b) According to the information and explanations given to us and on the
basis of our examination of the books of account, the Company has not
taken loans from companies, firms or other parties listed in the
register mainatined under Section 301 of the Companies Act, 1956. Thus
sub clauses iii(f) & iii(g) are not applicable to the company.
4) In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control procedure
commensurate with the size of the company and the nature of its
business, for the purchase of inventories, fixed assets and with
regards to sale of goods and services. During the course of our audit,
no major instance of continuing failure to correct any weaknesses in
the internal controls has been noticed.
5) Based on the audit procedures applied by us and according to the
information and explanations provided by the management we are of the
opinion that there were no contracts or arrangements that need to be
entered in the register maintained under section 301 of the Companies
Act 1956. Thus clauses v (a) and v (b) are not applicable to the
Company;
6) The Company has accepted deposits from the public within the meaning
of Sections 58A and Section 58AA of the Act and have complied with the
rules framed therein.
7) As per information & explanations given by the management, the
Company has an internal audit system commensurate with its size and the
nature of its business.
8) As per information & explanation given by the management,
maintenance of cost records has been prescribed by the Central
Government under clause (d) of sub-section (1) of section 209 of the
Act and we are of the opinion that prima facie the prescribed accounts
and records have been made and maintained. We have not, however, made a
detailed examination of the records with a view to determine whether
they are accurate or complete;
9) a) According to the records of the company, undisputed statutory
dues including Provident Fund, Investor
Education and Protection Fund, Employees'' State Insurance, Income-tax,
Sales-tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess to
the extent applicable and any other statutory dues have generally been
regularly deposited with the appropriate authorities.
b) According to the information and explanations given to us there were
no outstanding statutory dues as on 31st of March, 2013 for a period of
more than six months from the date they became payable.
10) The Company does not have any accumulated losses as at 31st March,
2013 and has not incurred cash losses in the current and immediate
preceeding financial year.
11) Based on our audit procedure and on the information and
explanations given by the management, we are of the opinion that, the
Company has not defaulted in repayment of dues to financial
institutions and banks;
12) According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
13) The Company is not a chit fund or a nidhi / mutual benefit fund /
society. Therefore, the provision of this clause of the Companies
(Auditors'' Report) Order, 2003 (as amended) is not applicable to the
Company.
4) According to information and explanations given to us, the Company
has maintained proper records of the transactions for dealing in
shares, securities and other investments and timely entries have been
made therein. The shares, securities and other investments have been
held by the company in its own name.
15) According to the information and explanations given to us, the
Company has not given any guarantees for loan taken by others from a
bank or financial institution.
16) Based on our audit procedures and on the information given by the
management, we report that the company has applied the money received
as term loans during the year for the purposes for which they were
obtained;
17) Based on the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company as at 31st
March, 2013, we report that no funds raised on short-term basis have
been used for long-term investment by the Company.
18) Based on the audit procedures performed and the information and
explanations given to us by the management, we report that the Company
has not made any preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the
Act during the year.
19) The Company has not issued any debenture and hence no securities
have been created.
20) The Company has not raised any money by public issue during the
year.
21) Based on the audit procedures performed and the information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the year, nor have we been informed
of such case by the management.
For Jain & Co.,
Chartered Accountants
Registration No 302023E
P-21/22, Radhabazar Street, M.K. Jain
Kolkata-700 001 Partner
Dated : The 13th day of May, 2013 Membership No. 055048
Mar 31, 2012
We have audited the attached Balance Sheet of KANCO TEA & INDUSTRIES
LIMITED as at 31st March, 2012, as well as the annexed Profit & Loss
statement and the Cash Flow Statement for the year ended 31st March,
2012.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. Those 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 check 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 (Auditor's Report) Order, 2003 as amended
by the Companies (Auditor's Report) (Amendment) Order, 2004, issued by
the Central Government in terms of Section 227(4A) of the Companies
Act, 1956, (the ''Act") and on the basis of such checks of the books
and records of the Company as we considered appropriate and according
to the information and explanations given to us ,we give in the
Annexure, a statement on the matters specified in paragraphs 4 and 5 of
the said Order to the extent applicable to the Company.
Further to our comments in the Annexure referred to above, we report
that :
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
b) In our opinion, proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of
those books;
c) The Balance Sheet, Profit & Loss statement and Cash Flow statement
dealt with by this report are in agreement with the books of account.
d) In our opinion, the Balance Sheet, Profit & Loss statement and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in Sub-section (3C) of Section 211 of the Act.
e) On the basis of written representations received from the Directors,
as on 31st March 2012, and taken on record by the Board of Directors,
none of the Directors is disqualified as on 31st March, 2012 from being
appointed as a Director under Clause (g) of Sub-section (1) of section
274 of the Act;
f) In our opinion and to the best of our information and according to
the explanations given to us, the said Financial Statements together
with notes thereon and attached thereto give in the prescribed manner
the information required by the Act and give a true and fair view in
conformity with the accounting principles generally accepted in India:
i) In the case of Balance Sheet, of the state of affairs of the Company
as at 31st March, 2012.
ii) In the case of Profit & Loss statement, of the profit of the
Company for the year ended on that date.
iii) 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 :
1) In respect of Fixed Assets.
a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of its fixed assets.
b) The fixed assets have been physically verified during the year by
the management in accordance with a program of verification, the
frequency whereof is reasonable. According to the information and
explanations given to us no material discrepancies were noticed on such
verification.
c) The company has not disposed off any substantial part of its fixed
assets so as to effect its going concern.
2) In respect of 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 procedure 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
verifications.
3) a) According to the information and explanations given to us, the
Company has not granted any laons, secured and unsecured to companies,
firms or other parties covered in the register maintained under Section
301 of the Companies Act, 1956.
b) According to information and explanations given to us, the Company
has not taken any loans, secured and unsecured from companies, firms or
other parties covered in the register maintained under Section 301 of
the Companies Act, 1956.
4) In our opinion and according to the information and explanations
given to us during the course of audit, there are adequate internal
control systems commensurate with the size of the Company and nature of
its business with regard to purchase of inventory, fixed assets and
with regard to sale of goods and services. During the course of our
previous assessment, no major weakness in internal control had come to
our notice.
5) To the best of our knowledge and belief and according to information
and explanations given to us, there were no particulars of contracts or
arrangements referred to in Section 301 of the Companies Act,1956,that
were required to be entered in the register maintained in pursuance of
Section 301 of the Companies Act,1956.
6) The Company has accepted deposits from the public within the meaning
of Sections 58A and Section 58AA of the Act and have complied with the
rules framed thereunder.
7) The company has an adequate internal audit system commensurate with
the size of the company and nature of its business.
8) We have broadly reviewed the Books of Account maintained by the
Company pursuant to the rules 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 not,
however, made a detailed examination of the records with a view to
determine whether they are accurate or complete.
9) According to the information and explanations given to us, in
respect of statutory dues and other dues the Company is regular in
depositing undisputed Statutory dues including Provident Fund, Investor
Education and Protection Fund, Employees State Insurance, Income Tax,
Wealth Tax, Service tax ,Sales Tax, Custom Duty, Excise Duty, Cess and
any other statutory dues with the appropriate authorities where
applicable. There are no arrears of aforesaid statutory dues as at the
last day of the financial year outstanding for a period of six months
from the date they became payable.
10) The Company does not have any accumulated losses at the financial
year ended 31st March, 2012 and it has not incurred cash losses in the
current and immediate preceding financial year.
11) Based on our audit procedure and on the information and
explanations given by the management, the Company has not defaulted in
repayment of principal and interest, due to the Banks.
12) As informed to us the Company has not granted any loans or advances
on the basis of security by way of pledge of shares, debentures and
other investments.
13) In our opinion the Company is not a chit fund or nidhi/mutual
benefit fund/societies. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditors' Report) Order, 2003, are not applicable to the
Company.
14) To the best of our knowledge and belief and according to the
information and explanations given to us the Company has maintained
proper records of the transactions for dealing in shares, securities
and other investments and timely entries have made therein. The shares,
securities and other investments have been held by the company in its
own name.
15) The Company has not given any guarantee for loans taken by others
from bank or financial institutions.
16) The Company has applied the money received as term loans during the
year for the purposes for which the loans were obtained.
17) The Funds raised by the Company on short term basis have not been
used during the year for long term investment.
18) The Company has not made any preferential allotment of shares to
parties or Companies covered in the register maintained under Section
301 of the Companies Act, 1956, during the year.
19) The Company has not issued any debentures during the year and hence
no securities have been created.
20) The Company has not raised any money through public issues during
the year.
21) 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 Jain & Co.,
Chartered Accountants
Registration No 302023E
P-21/22, Radhabazar
Street, M.K. Jain
Kolkata-700 001 Partner
Dated : The 18th day of May, 2012 Membership No 55048
Mar 31, 2011
We have audited the attached Balance Sheet of KANCO TEA & INDUSTRIES
LIMITED as at 31st March, 2011, as well as the annexed Profit & Loss
Account and the Cash Flow Statement for the year ended 31st March,
2011.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. Those 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 check 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 (Auditor's Report) Order, 2003 as amended
by the Companies (Auditor's Report) (Amendment ) Order, 2004, issued by
the Central Government in terms of Section 227(4A) of the Companies
Act, 1956, (the ''Act") and on the basis of such checks of the books
and records of the Company as we considered appropriate and according
to the information and explanations given to us ,we give in the
Annexure, a statement on the matters specified in paragraphs 4 and 5 of
the said Order to the extent applicable to the Company.
Further to our comments in the Annexure referred to above, we report
that :
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
b) In our opinion, proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of
those books;
c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
d) In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in Sub-section (3C) of Section 211 of the Act.
e) On the basis of written representations received from the Directors,
as on 31st March 2011, and taken on record by the Board of Directors,
none of the Directors is disqualified as on 31st March, 2011 from being
appointed as a Director under Clause (g) of Sub-section (1) of section
274 of the Act;
f) In our opinion and to the best of our information and according to
the explanations given to us, the said Financial Statements together
with notes thereon and attached thereto give in the prescribed manner
the information required by the Act and give a true and fair view in
conformity with the accounting principles generally accepted in India:
i) In the case of Balance Sheet, of the state of affairs of the Company
as at 31st March, 2011.
ii) In the case of Profit & Loss Account, of the profit of the Company
for the year ended on that date.
iii) 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 1 of our Report of even date :
1) In respect of Fixed Assets.
a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of its fixed assets.
b) The fixed assets have been physically verified during the year by
the management in accordance with a program of verification, the
frequency whereof is reasonable. According to the information and
explanations given to us no material discrepancies were noticed on such
verification.
c) The company has not disposed off any substantial part of its fixed
assets so as to effect its going concern.
2) In respect of 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 procedure 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
verifications.
3) In respect of loans, secured or unsecured, granted or taken by the
company to or from other companies, firms or other parties covered in
the Register maintained under section 301 of the Companies Act, 1956,
according to the information and explanations given to us :
a) The Company has not granted any loans to any party during the year ;
b) During the year the Company has taken interest free unsecured loan
of Rs 14.50 lacs from one party and the amount outstanding at the close
is Rs. Nil. The maximum amount involved during the year was Rs. 14.50
lacs.
c) The rate of interest and other terms and conditions of such loan
are, in our opinion, not prejudicial to the interest of the company;
d) The Company is regular in payment of principal amount and interest.
4) In our opinion and according to the information and explanations
given to us during the course of audit, there are adequate internal
control systems commensurate with the size of the Company and nature of
its business with regard to purchase of stores and spare parts, raw
materials, plant and machinery, equipment and other assets and with
regard to sale of goods and services. During the course of our previous
assessment, no major weakness in internal control had come to our
notice.
5) To the best of our knowledge and belief and according to information
and explanations given to us ,there were no particulars of contracts or
arrangements referred to in Section 301 of the Companies Act,1956,that
were required to be entered in the register maintained in pursuance of
Section 301 of the Companies Act,1956.
6) The Company has accepted deposits from the public within the meaning
of Sections 58A and Section 58AA of the Act and have complied with the
rules framed thereunder.
7) The company has an adequate internal audit system commensurate with
the size of the company and nature of its business.
8) We have broadly reviewed the Books of Account maintained by the
Company pursuant to the rules 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 not,
however, made a detailed examination of the records with a view to
determine whether they are accurate or complete.
9) According to the information and explanations given to us, in
respect of statutory dues and other dues the Company is regular in
depositing undisputed Statutory dues including Provident Fund, Investor
Education and Protection Fund, Employees State Insurance, Income Tax,
Wealth Tax, Service tax ,Sales Tax, Custom Duty, Excise Duty, Cess and
any other statutory dues with the appropriate authorities where
applicable. There are no arrears of aforesaid statutory dues as at the
last day of the financial year outstanding for a period of six months
from the date they became payable.
10) The Company does not have any accumulated losses at the financial
year ended 31st March, 2011 and it has not incurred cash losses in the
current and immediate preceding financial year.
11) Based on our audit procedure and on the information and
explanations given by the management, the Company has not defaulted in
repayment of principal and interest, due to the Banks.
12) As informed to us the Company has not granted any loans or advances
on the basis of security by way of pledge of shares, debentures and
other investments.
13) In our opinion the Company is not a chit fund or nidhi/mutual
benefit fund/societies. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditors' Report) Order,2003, are not applicable to the
Company.
14) To the best of our knowledge and belief and according to the
information and explanations given to us the Company has maintained
proper records of the transactions for dealing in shares, securities
and other investments and timely entries have made therein. The shares,
securities and other investments have been held by the company in its
own name.
15) The Company has not given any guarantee for loans taken by others
from bank or financial institutions.
16) The Company has applied the money received as term loans during the
year for the purposes for which the loans were obtained.
17) The Funds raised by the Company on short term basis have not been
used during the year for long term investment.
18) The Company has not made any preferential allotment of shares to
parties or Companies covered in the register maintained under Section
301 of the Companies Act, 1956, during the year and hence the question
of the price at which shares have been issued is prejudicial to the
interest of the Company does not arise.
19) The Company has not issued any debentures during the year and it
has created proper security in respect of outstanding debentures.
20) The Company has not raised any money through public issues during
the year.
21) 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 Jain & Co.,
Chartered Accountants
Registration No 302023E
P-21/22, Radhabazar
Street, M.K. Jain
Kolkata-700 001 Partner
Dated the 13th day of May, 2011 Membership No 55048
Mar 31, 2010
We have audited the attached Balance Sheet of KANCO TEA & INDUSTRIES
LIMITED as at 31st March, 2010 these financial statements based on our
audit.
We conduced dur audi, in accordance wild s.andards gangly audit
provides a reasonable basis for our opinion.
As required by the Compar.es (Auditor's Report) Order, 2003 as, amended
specified in paragraphs 4 and 5 of the said Order to the extent
applicable to the Company. Further to our comments in the Annexure
referred to above, we report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
b) In our opinion, proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of
those books;
c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
a Director under Clause (g) of Sub-section (1) of section 274 of the
Act;
In the case of Balance Sheet, of the state of affairs of the Company as
at 31st March, 2010.
ii) in the case of Profit & Loss Account, of the profit of the Company
for the year ended on that date.
iii) 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 1 of our Report of even date:
1) In respect of Fixed Assets.
a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of its fixed assets.
b) The fixed assets have been physically verified during the year by
the management in accordance with a program of verification, the
frequency whereof is reasonable. According to the information and
explanations given to us no material discrepancies were noticed on such
verification.
c) The company has not disposed off any substantial part of its fixed
assets so as to effect its going concern.
2) In respect of 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 procedure 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
verifications.
3) In respect of loans, secured or unsecured, granted or taken by the
company to or from other companies, firms or other parties covered in
the Register maintained under section 301 of the Companies Act, 1956,
according to the information and explanations given to us :
a) The Company has not granted any loans to any party during the year;
b) During the year the Company has taken interest free unsecured loan
of Rs 15.00 lacs from one party and the amount outstanding at the close
is Rs. Nil. The maximum amount involved during the year was Rs. 18.50
lacs.
c) The rate of interest and other terms and conditions of such loan
are, in our opinion, not prejudicial to the interest of the company;
d) The Company is regular in payment of principal amount and interest.
4) In our opinion and according to the information and explanations
given to us during the course of audit, there are adequate internal
control systems commensurate with the size of the Company and nature of
its business with regard to purchase of stores and spare parts, raw
materials, plant and machinery, equipment and other assets and with
regard to sale of goods and services. During the course of our previous
assessment, no major weakness in internal control had come to our
notice.
5} To the best of our knowledge and belief and according to information
and explanations given to us .there were no particulars of contracts or
arrangements referred to in Section 301 of the Companies Act,1956.that
were required to be entered in the register maintained in pursuance of
Section 301 of the Companies Act, 1956.
6) The Company has accepted deposits from the public within the meaning
of Sections 58A and Section 58AA of the Act and have complied with the
rules framed thereunder.
7) The company has an adequate internal audit system commensurate with
the size of the company and nature of its business.
8) We have broadly reviewed the Books of Account maintained by the
Company pursuant to the rules 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 not,
however made a detailed examination of the records with a view to
determine whether they are accurate or complete.
9) According to the information and explanations given to us. in
respect of statutory dues and other dues the Company is regular in
depositing undisputed Statutory dues including Provident Fund, Investor
Education and Protection Fund, Employees State Insurance. Income Tax,
Wealth Tax. Service tax .Sales Tax, Custom Duty, Excise Duty, Cess and
any other statutory dues with the appropriate authorities where
applicable. There are no arrears of aforesaid statutory dues as at the
last day of the financial year outstanding for a period of six months
from the date they became payable.
10) The Company does not have any accumulated losses at the financial
year ended 31 st March, 2010 and it has not incurred cash losses in the
current and immediate preceding financial year.
11) Based on our audit procedure and on the information and
explanations given by the management, the Company has not defaulted in
repayment of principal and interest, due to the Banks.
12) As informed to us the Company has not granted any loans or advances
on the basis of security by way of pledge of shares, debentures and
other investments.
13) In our opinion the Company is not a chit fund or nidhi/mutual
benefit fund/societies. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditors' Report) order,2003, are not applicable to the
Company.
14) To the best of our knowledge and belief and according to the
information and explanations given to us the Company has maintained
proper records of the transactions for dealing in shares, securities
and other investments and timely entries have made therein. The shares,
securities and other investments have been held by the company in its
own name.
15) The Company has not given any guarantee for loans taken by others
from bank or financial institutions.
16) The Company has applied the money received as term loans during the
year for the purposes for which the loans were obtained.
17) The Funds raised by the Company on short term basis have not been
used during the year for long term investment.
18) The Company has not made any preferential allotment of shares to
parties or Companies covered in the register maintained under Section
301 of the Companies Act, 1956. during the year and hence the question
of the price at which shares have been issued is prejudicial to the
interest of the Company does not arise.
19) The company has not issued any debentures during the year and it
has created proper security in respect of outstanding debentures.
20) The company has not raised any money through public issues during
the year.
21) 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 Jain & Co.
Chartered Accountants
Registration No 302023E
P-21/22, Radhabazar Street M.K. Jain
Kolkata-700 001 Partner
Dated the 21 st day of June,2010 Membership No 55048
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