Mar 31, 2018
REPORT ON THE STANDALONE IND AS FINACIAL STATEMENTS
We have audited the accompanying standalone IND AS financial statements of Terai Tea Company Limited ( â the Companyâ) which comprise the Balance Sheet as at March 31, 2018, the statement of Profit & Loss including other comprehensive income, Cash Flow Statement and the Statement of changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information.
MANAGEMENTâS RESPONSIBILITY FOR THE STANDALONE IND AS FINANCIAL STATEMENTS
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (â the Actâ) with respect to the preparation of these standalone IND AS financial Statements that give a true and fair view of the financial position, financial performance including other comprehensive income , cash flows and changes in equity of the Company in accordance with accounting principles generally accepted in India, including the Indian Accounting Standards (IND AS) specified under section 133 of the Act, read with the Companies ( Indian Accounting Standards ) Rules, 2015, as amended. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of 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 the design , implementation and maintenance of adequate internal financial control that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone IND AS 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 standalone IND AS 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 of the standalone AS financial statements in accordance with the standards on Auditing issued by the Institute of Chartered Accountants of India, as 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 standalone IND AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the standalone IND AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone IND AS 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 standalone IND AS financial statements 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 standalone IND AS 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 IND AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the standalone IND AS 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 March 31, 2018, its profit including other comprehensive income, its cash flows and the changes in equity for the year ended on that date.
OTHER MATTER
The comparative IND AS financial information of the company for the year ended March 31, 2017 and the transition date opening balance sheet as at April 01, 2016 included in these standalone IND AS financial statements, are based on the previously issued statutory financial statements prepared in accordance with accounting principles generally accepted in India, including the companies (Accounting Standard) Rules, 2006 (as amended) specified under section 133 of the Act, read with the companies (Accounts) Rules 2014, audited by the predecessor Auditor whose report for the year ended March 31, 2017 and March 31, 2016 dated May 30, 2017 and May 30, 2016 respectively expressed an unmodified opinion on those standalone financial statements, as adjusted for the differences in the accounting principles adopted by the company on transition to IND As, which have been audited by us.
REPORT ON THE LEGAL AND REGULATORY REQUIRMENTS
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 âAnnexure 1â a statement on the matters specified in paragraphs 3 and 4 of the order.
1. As required by section 143 (3) of the Act, we report that:
(a) We have sought and obtained allthe 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 it is appears from our examination of those books;
(c) The Balance sheet, Statement of Profit and Loss including other comprehensive income, the Cash Flow Statement and Statement of changes in Equity dealt with by this report are in agreement with the books of account;
(d) In our opinion, the aforesaid standalone IND AS financial statements comply with the Indian Accounting Standards specified under section 133 of the Act, read with the companies (Indian Accounting Standards) Rules, 2015, as amended;
(e) On the basis of written representations received from the directors as on March 31, 2018 from and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018, from being appointed as a director in terms of section 164 (2) of the Act;
(f) With respect t to the adequacy of the internal financial controls over financial reporting of the company with reference to these standalone IND AS financial statements and the operating effectiveness of such controls, refer to our separate Report in â Annexure 2 â to this report;
(g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the companies ( Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us:
i. There is no likelihood of any material impact of pending litigations on its financial position which requires disclosure in its financial statements
ii. The company did not have any long- term contacts including derivative contracts for which there were any material foreseeable losses;
iii. There has been no delay in transferring amounts, required to be transferred, to the investor Education and protection Fund by the company.
Annexure - â1â to the Independent Auditorsâ Report
The Annexure referred to in our report to the members of Terai Tea Company Limited for the year ended 31 March 2018.
We report that :
i. In respect of its Fixed Assets-
a. The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
b. Some of the fixed assets have been physically verified by the management in accordance with a program of verification, which in our opinion provides for physical verification of all the fixed assets at reasonable intervals having regard to the size of the Company and the nature of its assets. According to the information and explanations given to us no material discrepancies have been 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
ii. In respect of its inventories as explained to us, the stock of finished products and stores materials of the company have been physically verified by the management during the year except for stock of tea lying at warehouse or consignment agents which has been verified by subsequent sales. The discrepancies between the physical stocks and the book stocks have been dealt with properly and were not material.
iii. According to the information and explanations given to us, the company has not granted any loans to companies, firms or other parties covered in the Register maintained under Section 189 of the Companies Act, 2013 and therefore paragraph 3(iii) of the order is not applicable.
iv. In our opinion and according to the information and explanations given to us, provisions of Section 185 of the companies Act, 2013 in respect of loans to directors including entities in which they are interested are not applicable to the company and hence not commented upon. In our opinion and according to the information and explanations given to us, provision of Section 186 of the companies Act, 2013 in respect of loans and advances given, investments made and guarantees and securities given have been complied with by the company.
v. In our opinion and according to the explanations given to us, the company has not accepted Deposits from the public during the year. Therefore, paragraph 3(v) of the Order is not applicable to the company.
vi. We have broadly reviewed the cost records maintained by the Company pursuant to the order made by the Central Government for the maintenance of cost records under section 148(1) of the Companies Act related to manufacture of goods and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of the same.
vii. According to the information and explanations given to us in respect of statutory dues:
a. The Company has generally been regular in depositing undisputed statutory dues including Provident fund, Income Tax, Sales Tax, Service Tax, Excise Duty, Cess and other material statutory dues applicable to it with the appropriate authorities during the year.
b. According to the information and explanations given to us, no undisputed amounts payable in respect of Income Tax, Wealth Tax, Service Tax, Sales Tax, Custom Duty, Excise Duty, Cess and other material statutory dues applicable to it were in arrears as at 31st March, 2018 for a period of more than six months from the date they became payable except sum of Rs. 6,96,092/- outstanding against Agricultural Income Tax.
c. According to the information and explanations given to us and in our opinion, there are no material dues of customs duty, Service Tax, Excise Duty, Cess, Wealth Tax and Income Tax which have not been deposited as on 31st March 2018 on account of any dispute. However according to information and explanations given to us the following dues of income tax, agricultural income tax, sales tax and Vat have not been deposited by the Company on account of disputes-
Name of statute |
Nature of dues |
Amount (Rs.) |
Period for which it relates |
Forum where dispute pending |
Income Tax Act 1961 |
Income Tax |
2,27,730/- |
Assessment year 2013-14 |
Commissioner (Appeals) |
2,30,169/- |
Assessment Year2014-15 |
Commissioner (Appeals) |
||
West Bengal Sales Tax Act, 1994 |
Vat & Sales Tax Disputes |
27,24,449/-* |
Accounting year 2004-05 |
Appellate and Revisional Board (High Court) |
55,34,200/-* |
Accounting year 2006-07, 2009-10 and 2011-12 |
Appellate and Revisional Board |
||
12,61,694/-* |
Accounting year 2007-08 & 2008-09 |
Commissioner (Appeals) |
||
Central Sales Tax Act, 1956 |
Vat & Sales Tax Disputes |
13,10,610/-* |
Accounting year 2004-05 |
Appellate and Revisional Board (High Court) |
35,38,934/-* |
Accounting year 2005-06 2006-07 and 2011-12 |
Appellate and Revisional Board |
||
10,95,010/-* |
Accounting year 2007-08 & 2008-09 |
Commissioner (Appeals) |
*Demand stayed by High Court
d. The Company has a pending case under section 629A, 2117(7), 211(8) and 209(5) or 209(7) of the companies Act 1956 filed in 1995 and the matter is subjudice . There is no progress in the matter since 1995, when the case was filed.
viii. In our opinion and according to the information and explanations given to us, the Co. has not defaulted in repayment of loans or borrowings to Banks. Based on our audit procedure and as per the information and explanations given by the management, the Co. did not have any outstanding dues to a Financial Institution or debenture holders.
ix. The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, paragraph 3 (ix) of the Order is not applicable.
x. Based upon the audit procedure performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given to us, we report that no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
xi. According to the information and explanations give 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 Act.
xii. In our opinion and according to the information and explanations given to us, the Company is not a Nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
xiii. 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 financial statements as required by the applicable accounting standards.
xiv. According to the information and explanations give 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.
xv. 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. Accordingly, paragraph 3(xv) of the Order is not applicable.
xvi. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.
Annexure - â2â to the Independent Auditorsâ Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of theCompanies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Terai Tea Company Limited (âthe Companyâ) as of 31 March 2018 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 authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised 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 2018, 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 SAHA & MAJUMDER
Chartered Accountants
Place : Kolkata FRN : 303087E
Date : May 31, 2018* Sd/-
S.N. Bhattacharjee
Partner
Membership No. 010767
Mar 31, 2016
To
The Members of
Terai Tea Company Limited
10, Govt. Place (East)
Kolkata - 700 069
Report on the Standalone Financial Statements
We have audited the accompanying Standalone financial statements of Terai Tea Company Limited (âThe Companyâ) which comprise the Balance Sheet as at 31st March 2016, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the 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 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 Standards 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 standalone 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 control relevant to the Companyâs 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 entityâs 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 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 Standalone 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 31 March 2016 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-A, a statement on the matters specified in the paragraph 3 and 4 of the Order, to the extent applicable.
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 the written representations received from the directors as on 31st March 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2016 from being appointed as a director in terms of Section 164 (2) of the Act; and
f) with respect to the adequacy of the 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 the 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. there is no likelihood of any material impact of pending litigations on its financial position which requires disclosure in its financial statements
ii. the Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts; and
iii. There has been no requirement of transfer of any amount to the Investor Education and Protection Fund by the Company.
Annexure - âAâ to the Independent Auditorsâ Report
The Annexure referred to in our report to the members of Terai Tea Company Limited for the year ended 31st March 2016.
We report that:
i. In respect of its Fixed Assets-
a. The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
b. Some of the fixed assets have been physically verified by the management in accordance with a program of verification, which in our opinion provides for physical verification of all the fixed assets at reasonable intervals having regard to the size of the Company and the nature of its assets. According to the information and explanations given to us no material discrepancies have been 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 except a plot of land at Bangalore acquired by the Company for which registration in the name of the company has not been done. All expenses of litigation in respect of the said land are considered as deemed cost of land.
ii. In respect of its Inventories:
a. As explained to us, the stock of finished products and stores materials of the company have been physically verified by the management during the year except for stock of tea lying at warehouse or consignment agents which has been verified by subsequent sales. The discrepancies between the physical stocks and the book stocks have been dealt with properly and were not material.
iii. According to the information and explanations given to us, the company has not granted any loans to companies, firms or other parties covered in the Register maintained under Section 189 of the Companies Act, 2013 and therefore paragraph 3(iii) of the order is not applicable.
iv. 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 the loans and investments made.
v. In our opinion and according to the explanations given to us, the company has not accepted Deposits from the public during the year. Therefore, paragraph 3(v) of the Order is not applicable to the company.
vi. We have broadly reviewed the cost records maintained by the Company pursuant to the order made by the Central Government for the maintenance of cost records under section 148(1) of the Companies Act and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of the records with a view to determine whether they are accurate or complete.
vii. According to the information and explanations given to us in respect of statutory dues:
a. The Company has generally been regular in depositing undisputed statutory dues including Provident fund, Income Tax, Sales Tax, Service Tax, Excise Duty, Cess and other Material Statutory dues applicable to it with the appropriate authorities during the year.
b. According to the information and explanations given to us, no undisputed amounts payable in respect of Income Tax, Wealth Tax, Service Tax, Sales Tax, Custom Duty, Excise Duty, Cess and other Material Statutory dues applicable to it were in arrears as at 31st March, 2016 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 in our opinion, there are no material dues of Customs Duty, Service Tax, Excise Duty, Cess, Wealth Tax and Income Tax which have not been deposited as on 31st March 2016 on account of any dispute. However according to information and explanations given to us the following dues of Income Tax, Agricultural Income Tax, Sales Tax and VAT have not been deposited by the Company on account of disputes-
Name of statute |
Nature of dues |
Amount (Rs.) |
Period for which it relates |
Forum where dispute pending |
Income Tax Act, 1961 |
Income Tax |
1,57,762/- |
Assessment Year 2012-13 |
Commissioner (Appeals) |
Bengal Agriculture Tax 1944 |
Agriculture Income Tax |
8,70,114/- |
Accounting Year 1995-96 and 1996-97 |
West Bengal Taxation Tribunal |
West Bengal Sales Tax Act, 1994 |
VAT & Sales Tax disputes |
27,24,449/- ## 55,34,200/12,61,694/- |
Accounting Year 2004-05 Accounting Year 2006-07, 2009-10 and 2011-12 Accounting Year 2007-08 and 2008-09 |
Appellate and Revisional Board Appealate and Revisional Board Commissioner (Appeals) |
Central Sales Tax Act, 1956 |
Vat & Sales Tax disputes |
13,10,610/- ## 35,38,934/10,95,010/- |
Accounting Year 2004-05 Accounting Year 2005-06, 2006-07 and 2011-12 Accounting Year 2007-08 and 2008-09 |
Appealate and Revisional Board Appealate and Revisional Board Commissioner (Appeals) |
vii. In our opinion and according to the explanations given to us, the company has not defaulted in repayment of dues to financial institution, bank or debenture holders.
viii. The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, paragraph 3 (ix) of the Order is not applicable.
ix. According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
x. According to the information and explanations give 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 Act.
xi. In our opinion and according to the information and explanations given to us, the Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
xii. 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 financial statements as required by the applicable accounting standards.
xiii. According to the information and explanations give 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.
xiv. 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. Accordingly, paragraph 3(xv) of the Order is not applicable.
xv. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934
Annexure - B to the Auditorsâ Report
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 Terai Tea Company Limited (âthe Companyâ) as of 31st 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 P.K. Shah & Co.
Chartered Accountants
FRN: 308150E
Sd/-P K Shah
Place : Kolkata Partner
Dated : May 30, 2016 Membership No. 014740
Mar 31, 2015
We have audited the accompanying financial statements of Terai Tea
Company Limited (The Company') which comprise the Balance Sheet as at
31 st March 2015, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
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 and presentation 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 Standards 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 standalone
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 auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company's preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances,, but not for the
purpose of expressing an opinion on the effectiveness of the entity's
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31 st 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 the paragraph 3 and 4 of the
Order, to the extent applicable.
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 the written representations received from the
directors as on 31 st March 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31 st March 2015
from being appointed as a director in terms of Section 164 (2) of the
Act; and
f) With respect to the 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. There is no likelihood of any material impact of pending
litigations on its financial position which
requires disclosure in its financial statements
ii. The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
on long-term contracts and
iii. There has been no requirement of transfer of any amount to the
Investor Education and Protection Fund by the Company.
Annexure to the Auditors' Report
The Annexure referred to in our report to the members of Terai Tea
Company Limited for the year ended 31 st March 2015. We report that:
i. In respect of its Fixed Assets-
a. The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b. Some of the fixed assets have been physically verified by the
management in accordance with a program of verification, which in our
opinion provides for physical verification of all the fixed assets at
reasonable intervals having regard to the size of the Company and the
nature of its assets. According to the information and explanations
given to us no material discrepancies have been noticed on such
verification.
ii. In respect of its Inventories:
a. As explained to us, the stock of finished products and stores
materials of the company have been physically verified by the
management during the year except for stock of tea lying at warehouse
or consignment agents which has been verified by subsequent sales.
b. In our opinion, the procedure of physical verification of stocks
followed by the management is reasonable and adequate in relation to
the size of the company and the nature of its business.
c. On the basis of our examination of the inventory records, in our
opinion the Company is maintaining proper records of inventory. The
discrepancies between the physical stocks and the book stocks have been
dealt with properly and were not material.
iii. According to the information and explanations given to us, the
Company has not granted any loans to companies, firms or other parties
covered in the Register maintained under Section 189 of the Companies
Act, 2013 and therefore paragraph 3(iii) of the Order is not
applicable.
iv. In our opinion and in accordance with the information and
explanation given to us, the internal control procedures for the
purchase of inventory, raw materials, stores and fixed assets and for
the sale of goods & services are adequate and commensurate with the
size of the company and the nature of its business. During the course
of our audit, we have not observed any continuing failure to correct
major weakness in the internal control system.
v. In our opinion and according to the explanations given to us, the
company has not accepted Deposits from the public during the year.
Therefore, paragraph 3(v) of the Order is not applicable to the
company.
vi. We have broadly reviewed the books of account and records
maintained by the Company relating to Plantation, pursuant to the order
made by the Central Government for maintenance of cost record u/s
148(1) of The Companies Act, 2013 and are of the opinion that
prima-facie the prescribed accounts and records have been made and
maintained. We have however not made a detail examination of the
records with a view to determining whether they are accurate or
complete.
vii. According to the information and explanations given to us in
respect of statutory dues:
a. The Company has generally been regular in depositing undisputed
statutory dues including Provident fund, Income tax, Sales tax, Service
tax, Excise duty, Cess and other material statutory dues applicable to
it with the appropriate authorities during the year.
b. According to the information and explanations given to us, no
undisputed amounts payable in respect of Income tax, Wealth tax,
Service tax, Sales tax, Custom duty, Excise duty, Cess and other
material statutory dues applicable to it were in arrears as on 31 st
March, 2015 for a period of more than six months from the date they
became payable except a sum of Rs, 79,465/- outstanding on account of
Service Tax.
c. According to the information and explanations given to us and in
our opinion, there are no material dues of Customs Duty, Service Tax,
Excise Duty, Cess, Wealth Tax and Income Tax which have not been
deposited as on 31st March 2015 on account of any dispute. However
according to information and explanations given to us the following
dues of Income Tax, Agricultural Income Tax, Sales Tax and Vat have not
been deposited by the Company on account of disputes are pending are as
under.
Statute Nature of Dues Amount (Rs,)
Income Tax Act, 1961 Income Tax 2,60,686/-
Bengal Agriculture Agriculture 8,70,114/-
Tax, 1944 Income Tax
West Bengal Sales Vat & Sales Tax ##27,24,449/-
Tax Act, 1994 Disputes
West Bengal Sales Vat & Sales 55,34,200/-
Tax Act, 1994 Tax Disputes
West Bengal Sales Vat & Sales 12,61,694/-
Tax Act, 1994 Tax Disputes
Central Sales Vat & Sales Tax ##13,10,610/-
Tax Act,1956 DisputeS
Central Sales Vat & Sales 35,38,934/-
Tax Act, 1956 Tax Disputes
Central Sales Vat & Sales 10,95,010/-
Tax Act, 1956 Tax Disputes
statute Period for which Forum where
it Relates Dispute is Pending
Income Tax
Act, 1961 Assessment Year Commissioner of
2012-13 Income Tax (Appeals)
Bengal
Agriculture Accounting Years West Bengal
Tax,1944 1994-95 and 1995-96 Taxation Tribunal
West Bengal
Sales Tax
Act, 1994 Accounting Year Appealate and
2004-05 Revisional Board
West Bengal
Sales Tax
Act, 1994 Accounting Years Appealate and
2006-07,2009-10 Revisional Board
and 2011-12
West Bengal
Sales Tax
Act, 1994 Accounting Years Commissioner
2007-08 and 2008-09 (Appeals)
Central Sales
Tax Act,1956 Accounting Year Appealate and
2004-05 Revisional Board
Central Sales
Tax Act,1956 Accounting Years Appealate and
2005-06, 2006-07 Revisional Board and
2011-12
Central Sales
Tax Act,1956 Accounting Years Commissioner
2007-08 and 2008-09 (Appeals)
## Demand stayed by High Court
d. According to the information and explanation given to us no amount
was 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 there-under.
viii. The Company does not have any accumulated losses and has not
incurred cash losses during the financial year covered by our audit and
the immediately preceding financial year.
ix. In our opinion and according to the explanations given to us, the
company has not defaulted in repayment of dues to financial
institutions, banks or debenture holders.
x. In our opinion and according to the information and explanation
given to us, the company has not given any guarantees for loans taken
by others from banks or financial institutions.
xi. To the best of our knowledge and belief and according to the
information and explanations given to us, in our opinion, term loans
availed by the Company were, prima facie, applied by the Company during
the year for the purposes for which the loans were obtained.
xii. 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
has been noticed or reported during the year.
For PK. Shah & Co.
Chartered Accountants
FRN:308150E
Sd/-
Hill Cart Road PK Shah
Siliguri - 734001 Partner
Dated : May 30, 2015 Membership No. 014740
Mar 31, 2014
1. We have audited the accompanying financial statements of "Terai
Tea Company Limited'' ("The Company") which comprise the Balance
Sheet as at 31 March 2014, the Statement of Profit and Loss and the
Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
2. The Company''s 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, 19S6 ("the Act") read
with the 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.
Auditor''s Responsibility
3. 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.
4. 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 entity''s 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.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Opinion
6. 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:
i. In the case of the Balance Sheet, of the state of affairs of the
Company as at 31 March 2014;
ii. In the case of the Statement of Profit and Loss, of the Profit for
the year ended on that date; and
iii. 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
7. As required by the Companies (Auditor''s Report) Order, 2003
("the Order"), as amended, 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 S of the Order.
8. 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 and with the returns received from branches not visited by us;
d. In our opinion, the Balance Sheet, the Statement of Profit and Loss,
and the Cash Flow Statement comply with Accounting Standards referred
to in sub-section (3C) of section 211 of the Companies Act, 19S6 read
with the General Circular 15/2013 dated 13th September, 2013 of the
Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013.
e. On the basis of written representations received from the Directors
as on 31st March 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 Auditors'' Report
The Annexure referred to in our report to the members of Terai Tea
Company Limited for the year ended 31 March 2014.
We report that:
i. In respect of its Fixed Assets :
a. The company has maintained proper records showing full particulars
including quantitative details and situation of Fixed Assets.
b. Some of the Fixed Assets have been physically verified by the
management in accordance with a program of verification, which in our
opinion provides for physical verification of all the Fixed Assets at
reasonable intervals having regard to the size of the Company and the
nature of its assets. According to the information and explanations
given to us no material discrepancies have been noticed on such
verification.
c. No Fixed Assets were disposed off during the year.
ii. In respect of its Inventories :
a. As explained to us, the stock of finished products and stores
materials of the Company have been physically verified by the
management during the year except for stock of tea lying at warehouse
or consignment agents which has been verified by subsequent sales
and/or confirmations from Consignment Agents.
b. In our opinion, the procedure of physical verification of stocks
followed by the management is reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. On the basis of our examination of the inventory records, in our
opinion the Company is maintaining proper records of inventory. The
discrepancies between the physical stocks and the book stocks have been
dealt with properly and were not material.
iii. In respect of unsecured loans granted by the Company to the
parties covered in Register under Section 301 of the Companies Act,19S6
and according to the information and explanations given to us :
a. The Company has granted interest free unsecured loans / advances
against contracts to eight parties. The maximum amount involved during
the year and the year-end outstanding balance of such loans/ advances
aggregates to - 273.1S Lakhs and - 0.9S Lakh respectively.
b. The Company has taken interest free unsecured loans / advances
against contracts from eight parties. The maximum amount involved
during the year and the year-end outstanding balance of such loans/
advances aggregates to - 299.67 Lakhs and - 19.67 Lakhs respectively.
c. In our opinion, considering the nature of transactions, the terms
and conditions on which such loans/ advances have been granted to and
taken from such parties are not, prima facie, prejudicial to the
interest of the Company.
d. In respect of the loans/advances granted and taken as aforesaid
there is no stipulation for repayment on fixed intervals.
iv. In our opinion and in accordance with the information and
explanation given to us, the internal control procedures for the
purchase of inventory, raw materials, stores and fixed assets and for
the sale of goods & services are adequate and commensurate with the
size of the Company and the nature of its business. During the course
of our audit, we have not observed any continuing failure to correct
major weakness in the internal control system.
v. In respect of contracts or arrangements entered in the Register
maintained in pursuance of Section 301 of the Companies Act 19S6 and to
the best of our knowledge & belief and according to information and
explanations given to us :
a. The particulars of the contracts/ transactions that need to be
entered into the register maintained under section 301 of the Companies
Act, 19S6, have been so entered.
b. In our opinion and having regards to our comments in paragraph (iv)
above, the transactions (excluding loans/ advances reported in
paragraph (iii above) exceeding the value of - S lakhs in respect of
any party during the period, have been made at prices which are prima
facie reasonable having regard to the prevailing market prices at the
relevant time.
vi. In our opinion and according to the explanations given to us, the
company has not accepted Deposits from the public during the year.
Therefore, the provisions of clause 4(vi) of CARO are not applicable to
the Company.
vii. In our opinion the company has internal audit system commensurate
with the size and nature of its business.
viii. We have broadly reviewed the Cost Records maintained by the
Company pursuant to the Companies (Cost Accounting records) Rules, 2011
prescribed by the Central Government under section 209(1)(d) of the Act
and are of the opinion that prima facie, the prescribed accounts and
records have been made and maintained. However, we have not made a
detailed examination of the records with a view to determine whether
they are accurate or complete.
ix. According to the information and explanations given to us in
respect of statutory dues:
a. The Company has generally been regular in depositing undisputed
statutory dues including Provident Fund, Income Tax, Sales Tax, Service
Tax, Excise Duty, Cess and Other Material Statutory dues applicable to
it with the appropriate authorities during the year.
b. According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Wealth Tax,
Service Tax, Sales Tax, Custom Duty, Excise Duty, Cess and Other
Material statutory dues applicable to it were in arrears as at 31st
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 in our
opinion, there are no dues of Customs Duty, Wealth Tax, Service Tax,
Excise Duty, Cess and Income Tax which have not been deposited as on
31st March 2014 on account of any dispute, excepting the following-
i. Agricultural Income Tax liability of - 30.S2 lakhs for accounting
year199S-96 and 1996-97 which is pending at West Bengal Tax Tribunal.
(Refer Note No. 31)
x. The Company does not have any accumulated losses and has not
incurred cash losses during the financial year covered by our audit and
the immediately preceding financial year.
xi. In our opinion and according to the explanations given to us, the
Company has not defaulted in repayment of dues to Financial
Institution, Bank or Debenture Holders.
xii. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii. The Company is not a chit fund or a nidhi/ mutual benefit
fund/society.
xiv. The Company has not entered into transactions of dealing or
trading in shares, securities, debentures and other investments, other
than in the ordinary Course of Investments.
xv. The Company has not given any guarantees for loans taken by others
from Banks or Financial Institutions.
xvi. To the best of our knowledge and belief and according to the
information and explanations given to us, in our
opinion, term loans availed by the Company were, prima facie, applied
by the Company during the year for the purposes for which the loans
were obtained.
xvii. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the company, we are of
the opinion that there are no funds raised on short-term basis that
have been used for long-term investment.
xviii. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Act.
xix. The Company has not issued any Debentures.
xx. The Company has not raised any money by way of public issue during
the year.
xxi. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
has been noticed or reported during the year.
Place : Hill Cart Road, Siliguri For P.K. Shah & Co.
Dated : 30th May, 2014 Chartered Accountants
Firm Registration No. : 308150E
Sd/-
P K Shah Partner
Membership No. 14740
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of TERAI TEA
COMPANY LIMITED which comprise the Balance Sheet as at 31st March 2013,
the Statement of Profit and Loss and the Cash Flow Statement for the
year ended, and a summary of significant accounting policies and other
explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). 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 disclosures 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:
i. in the case of the Balance Sheet, of the state of affairs of the
Company as on 31 st March 2013;
ii. in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
iii. 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"), as amended, 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 and proper returns adequate for the purposes of our audit have
been received from branches not visited by us];
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 [and with the returns received from branches not visited by
us];
d. in our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of Section 211 of the Companies Act, 1956; and
e. on the basis of written representations received from the directors
as on 31 st March 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31 st 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
The Annexure referred to in our report to the members of Terai Tea
Company Limited for the year ended 31 st March 2013. We report that:
i. In respect of its Fixed Assets-
a. The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b. Some of the fixed assets have been physically verified by the
management in accordance with a program of verification, which in our
opinion provides for physical verification of all the fixed assets at
reasonable intervals having regard to the size of the Company and the
nature of its assets. According to the information and explanations
given to us no material discrepancies have been noticed on such
verification.
c. No fixed assets were disposed off during the year. ii. In respect
of its inventories:
a. As explained to us, the stock of finished products and stores
materials of the Company have been physically verified by the
management during the year except for stock of tea lying at warehouse
or consignment agents which has been verified by subsequent sales.
b. In our opinion, the procedure of physical verification of stocks
followed by the management is reasonable and adequate in relation to
the size of the company and the nature of its business.
c. On the basis of our examination of the inventory records, in our
opinion the Company is maintaining proper records of inventory. The
discrepancies between the physical stocks and the book stocks have been
dealt with properly and were not material.
iii. In respect of unsecured loans granted by the Company to the
parties covered in Register under Section 301 of the Companies Act,1956
and according to the information and explanations given to us:
a. The company has granted interest free unsecured loans / advances
against contracts to 11 parties. The maximum amount involved during the
year and the year-end outstanding balance of such loans/ advances
aggregates to Rs. 31.35 Crores and Rs. Nil respectively.
b. The company has taken interest free unsecured loans / advances
against contracts from seven parties. The maximum amount involved
during the year and the year-end outstanding balance of such loans/
advances aggregates to Rs. 11 Crores and Rs. 0.18 Crores respectively.
c. In our opinion, considering the nature of transactions, the terms
and conditions on which such loans/ advances have been granted to and
taken from such parties are not, prima facie, prejudicial to the
interest of the company.
d. In respect of the loans/advances granted and taken as aforesaid
there is no stipulation for repayment on fixed intervals.
iv. In our opinion and in accordance with the information and
explanation given to us, the internal control procedures for the
purchase of inventory, raw materials, stores and fixed assets and for
the sale of goods & services are adequate and commensurate with the
size of the company and the nature of its business. During the course
of our audit, we have not observed any continuing failure to correct
major weakness in the internal control system.
v. In respect of contracts or arrangements entered in the Register
maintained in pursuance of Section 301 of the Companies Act 1956 and to
the best of our knowledge & belief and according to information and
explanations given to us:
a. The particulars of the contracts/ transactions that need to be
entered into the register maintained under section 301 of the Companies
Act, 1956, have been so entered.
b. In our opinion and having regards to our comments in paragraph (iv)
above, the transactions (excluding loans/ advances reported in
paragraph (iii above) exceeding the value of Rs. 5 lakhs in respect of
any party during the period, have been made at prices which are prima
facie reasonable having regard to the prevailing market prices at the
relevant time.
vi. In our opinion and according to the explanations given to us, the
company has not accepted Deposits from the public during the year.
Therefore, the provisions of clause 4(vi) of CARO are not applicable to
the Company.
vii. In our opinion the company has internal audit system commensurate
with the size and nature of its business.
viii. We have broadly reviewed the cost records maintained by the
Company pursuant to the Companies (Cost Accounting records) Rules,2011
prescribed by the Central Government under section 209(1 )(d) of the
Act and are of the opinion that, prima facie, the prescribed accounts
and records have been made and maintained. However, we have not made a
detailed examination of the records with a view to determine whether
they are accurate or complete.
ix. According to the information and explanations given to us in
respect of statutory dues:
a. The Company has generally been regular in depositing undisputed
statutory dues including Provident Fund, Income Tax, Sales Tax, Service
Tax, Excise Duty, Cess and other material statutory dues applicable to
it with the appropriate authorities during the year.
b. According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Wealth Tax,
Service Tax, Sales Tax, Custom Duty, Excise Duty, Cess and other
material statutory dues applicable to it were in arrears as at 31 st
March, 2013 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 in
our opinion, there are no dues of customs duty, Wealth Tax, Service
Tax, Excise Duty, Cess and Income Tax which have not been deposited as
on 31 st March 2013 on account of any dispute, excepting the following-
Agricultural Income Tax liability of Rs. 30.52 lakhs for accounting yeaM
995-96 and 1996-97 which is pending at West Bengal Tax Tribunal. (Refer
Note No. 35)"
x. The Company does not have any accumulated losses and has not
incurred cash losses during the financial year covered by our audit and
the immediately preceding financial year.
xi. In our opinion and according to the explanations given to us, the
company has not defaulted in repayment of dues to Financial
Institution, Bank or Debenture Holders.
xii. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii. The Company is not a chit fund or a nidhi/ mutual benefit
fund/society
xiv. The Company has not entered in to transactions of trading in
shares, securities, debentures and other investments.
xv. The Company has not given any guarantees for loans taken by others
from banks or financial institutions.
xvi. To the best of our knowledge and belief and according to the
information and explanations given to us, in our opinion, term loans
availed by the Company were, prima facie, applied by the Company during
the year for the purposes for which the loans were obtained.
xvii. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the company, we are of
the opinion that there are no funds raised on short-term basis that
have been used for long-term investment.
xviii. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Act.
xix. The Company has not issued any debentures.
xx. The Company has not raised any money by way of public issue during
the year.
xxi. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the company
has been noticed or reported during the year.
Place : Hill Cart Road, Siliguri For P.K. Shah & Co.
Dated : 29th May, 2013 Chartered Accountants
Firm Registration No. : 308150E
Sd/-
PKShah
Partner
Membership No. 14740
Mar 31, 2011
1. We have audited the attached Balance Sheet of TERAI TEA COMPANY
LIMITED as at 31st March 2011, the Profit and Loss Account for the year
ended on that date and the Cash Flow Statement for the year ended on
that date both annexed thereto, both of which we have signed under
reference to this report. 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.
2. 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 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 the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditors' Report) Order, 2003, as
amended by the Companies (Auditor's Report) (Amendment) Order, 2004,
issued by the Central Government of India in terms of sub-section 4A of
Section 227 of the Companies Act, 1956, of India (the Act) and on the
basis of such checks of the books and records of the company as we
consider appropriate and according to the information and explanations
given to us we enclose in the Annexure a statement on the matters
specified in Paragraphs 4 & 5 of the said Order to the extent
applicable.
4. Further to our comments in the Annexure referred to in Paragraph
(3) 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 purpose of our
audit.
b) In our opinion, the company has kept proper books of account as
required by Law so far it appears from our examination of those books.
c) The Balance Sheet, Profit and Loss account and Cash Flow Statement
dealt with by the report are in agreement with the books of account.
d) In our opinion, Balance sheet, Profit and Loss account and Cash Flow
Statement dealt with by this Report comply with accounting standards
referred to in sub-section 3C of Section 211of the Companies Act, 1956
excepting those reported in Schedule XVII - "Significant Accounting
Policies".
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, we
report that none of the Directors is disqualified as on March 31, 2011
from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts, subject to the Note 7
regarding non-provision of Agricultural Income Tax liability, the
impact of which on the company's profit / reserves has been indicated
in the said Note, and read together with the Notes appearing thereon,
give the information required by the Companies Act, 1956, in the manner
so required and give a true and fair view-
a. In the case of the Balance Sheet of the State of Affairs of the
company as at 31st March 2011
b. In the case of Profit and Loss account of the Profit for the year
ended 31st March 2011
c. In the case of the Cash Flow Statement of the cash flows for the
year ended on that date.
Annexure to the Auditors' Report
(Referred to in paragraph (3) of our Report of even date)
i. In respect of its fixed assets-
a. The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b. Some of the fixed assets have been physically verified by the
management in accordance with a program of verification, which in our
opinion provides for physical verification of all the fixed assets at
reasonable intervals having regard to the size of the Company and the
nature of its assets. According to the information and explanations
given to us no material discrepancies have been noticed on such
verification.
c. No fixed assets were disposed off during the year.
ii. In respect of its inventories:
a. As explained to us, the stock of finished products and stores
materials of the company have been physically verified by the
management during the year except for stock of tea lying at warehouse
or consignment agents which has been verified by subsequent sales.
b. In our opinion, the procedure of physical verification of stocks
followed by the management is reasonable and adequate in relation to
the size of the company and the nature of its business.
c. On the basis of our examination of the inventory records, in our
opinion the Company is maintaining proper records of inventory. The
discrepancies between the physical stocks and the book stocks have been
dealt with properly and were not material.
iii. In respect of unsecured loans granted by the Company to the
parties covered in Register under Section 301 of the Companies Act,1956
and according to the information and explanations given to us:
a. The company has granted interest free unsecured loans / advances
against contracts to 13 parties. The maximum amount involved during the
year and the year-end outstanding balance of such loans/ advances
aggregates to Rs.23.89 Crores and Rs.17.17 Crores respectively.
b. The company has taken interest free unsecured loans / advances
against contracts from four parties. The maximum amount involved during
the year and the year-end outstanding balance of such loans/ advances
aggregates to Rs.10.3 Crores and Rs.9.58 Crores respectively.
c. In our opinion, considering the nature of transactions, the terms
and conditions on which such loans/advances have been granted to and
taken from such parties are not, prima facie, prejudicial to the
interest of the company.
d. In respect of the loans/advances granted and taken as aforesaid
there is no stipulation for repayment on fixed intervals.
iv. In our opinion and in accordance with the information and
explanation given to us, the internal control procedures for the
purchase of inventory, raw materials, stores and fixed assets and for
the sale of goods & services are adequate and commensurate with the
size of the company and the nature of its business. During the course
of our audit we have not observed any continuing failure to correct
major weakness in the internal control system.
v. In respect of contracts or arrangements entered in the Register
maintained in pursuance of Section 301 of the Companies Act 1956 and to
the best of our knowledge & belief and according to information and
explanations given to us:
a. The particulars of the contracts/ transactions that need to be
entered into the register maintained under section 301 of the Companies
Act, 1956, have been so entered.
b. In our opinion and having regards to our comments in paragraph (iv)
above, the transactions (excluding loans/ advances reported in
paragraph iii above) exceeding the value of Rs 5 lakhs in respect of
any party during the period, have been made at prices which are prima
facie reasonable having regard to the prevailing market prices at the
relevant time.
vi. In our opinion and according to the explanations given to us, the
company has not accepted Deposits from the public during the year.
Therefore, the provisions of clause 4(vi) of CARO are not applicable to
the Company.
vii. In our opinion the company has internal audit system commensurate
with the size and nature of its business.
viii. The Central Government has not prescribed maintenance of the
cost records under Section 209(1)(d) of the Companies Act, 1956 for the
product of the company.
ix. According to the information and explanations given to us in
respect of statutory dues:
a. The Company has generally been regular in depositing undisputed
statutory dues including provident fund, income tax, sales tax, service
tax, excise duty, cess and other material statutory dues applicable to
it with the appropriate authorities during the year.
b. According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Wealth Tax,
Service Tax, Sales Tax, Custom Duty, Excise Duty, Cess and other
material statutory dues applicable to it were in arrears as at 31st
March, 2011 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 in
our opinion, there are no dues of customs duty, Wealth Tax, Service
Tax, Excise Duty, Cess and Income Tax which have not been deposited as
on 31st March 2011 on account of any dispute, excepting Agricultural
Income Tax liability of Rs. 54.39 lakhs for accounting year 1994-95,
1995-96 and 1996-97 which is pending at West Bengal Tax Tribunal.
(Refer Note No. 7 of Notes to Accounts
x. The Company does not have any accumulated losses and has not
incurred cash losses during the financial year covered by our audit and
the immediately preceding financial year.
xi. In our opinion and according to the explanations given to us, the
company has not defaulted in repayment of dues to financial
institution, bank or debenture holders.
xii. The company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
xiii. The company is not a chit fund or a nidhi/ mutual benefit
fund/society.
xiv. The company has not entered in to transactions of dealing or
trading in shares, securities, debentures and other investments.
xv. The company has given guarantees of Rs.634.76 Lakhs for loans taken
by others from banks or financial institutions. According to the
information and explanations given to us, we are of the opinion that
the terms and conditions thereof are not prima facie prejudicial to the
interests of the company.
xvi. To the best of our knowledge and belief and according to the
information and explanations given to us, in our opinion, term loans
availed by the Company were, prima facie, applied by the Company during
the year for the purposes for which the loans were obtained.
xvii. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the company, we are of
the opinion that there are no funds raised on short-term basis that
have been used for long-term investment.
xviii. The company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Act.
xix. The company has not issued any debentures.
xx. The Company has not raised any money by way of public issue during
the year.
xxi. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the company
has been noticed or reported during the year.
For P. K. SHAH & CO.
Chartered Accountants
Firm Registration No. : 308150E
P. K. Shah
Partner
(Membership No. 014740)
Place Kolkata
Dated 31st May, 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of TERAI TEA COMPANY
LIMITED as at 31st March 2010, the Profit and Loss Account for the year
ended on that date and the Cash Flow Statement for the year ended on
that date both annexed thereto, both of which we have signed under
reference to this report. These financial statements are the
responsibility of the companyÃs management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. 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 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 the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditorsà Report) Order, 2003, as
amended by the Companies (Auditors Report) (Amendment) Order, 2004,
issued by the Central Government of India in terms of sub-section 4A of
Section 227 of the Companies Act, 1956, of India (the Act) and on the
basis of such checks of the books and records of the company as we
consider appropriate and according to the information and explanations
given to us we enclose in the Annexure a statement on the matters
specified in Paragraphs 4 & 5 of the said Order to the extent
applicable.
4. Further to our comments in the Annexure referred to in Paragraph
(3) 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 purpose of our audit.
b) In our opinion, the company has kept proper books of account as
required by Law so far it appears from our examination of those books.
c) The Balance Sheet and Profit and Loss account and Cash Flow
Statement dealt with by the report are in agreement with the books of
account.
d) In our opinion, Balance sheet and Profit and Loss account and Cash
Flow Statement dealt with by this Report comply with accounting
standards referred to in sub-section 3C of Section 211of the Companies
Act, 1956 excepting those reported in Schedule XVII - ÃÃSignificant
Accounting PoliciesÃ.
e) On the basis of written representations received from the directors,
as on 31st March 2010 and taken on, record by the Board of Directors,
we report that none of the Directors is disqualified as on March 31,
2010 from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts, subject to the Note 7
regarding non-provision of Agricultural Income Tax liability, the
impact of which on the companyÃs profit / reserves has been indicated
in the said Note and read together with the Notes appearing thereon,
give the information required by the Companies Act. 1956, in the manner
SO required and give true and fair view- a. In the case of the Balance
Sheet of the State of affairs of the company as at 31st March, 2010
b. In the case of Profit and Loss account of the Profit for the year
ended 31st March, 2010
c. In the case of the Cash Flow Statement of the cash flows for the
year ended on that date.
Annexure to the Auditors Report (Referred to in paragraph (3) of our
Report of even date)
i. In respect of its fixed assets-
a. The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b. Some of the fixed assets have been physically verified by the
management in accordance with a program of verification, which in our
opinion provides for physical verification of all the fixed assets at
reasonable intervals having regard to the size of the Company and the
nature of its assets. According to the information and explanations
given to us no material discrepancies have been noticed on such
verification.
c. No fixed assets were disposed off during the year. ii. In respect
of its inventories:
a. As explained to us, the stock of finished products and stores
materials of the company have been physically verified by the
management during the year except for stock of tea lying at warehouse
or consignment agents which has been verified by subsequent sales.
b. In our opinion, the procedure of physical verification of stocks
followed by the management is reasonable and adequate in relation to
the size of the company and the nature of its business.
c. On the basis of our examination of the inventory records, in our
opinion the Company is maintaining proper records of inventory. The
discrepancies between the physical stocks and the book stocks have been
dealt with properly and were not material.
iii. In respect of unsecured loans granted by the Company to the
parties covered in Register under Section 301 of the Companies Act,
1956 and according to the information and explanations given to us:
a. The company has granted interest free unsecured loans / advances
against contracts to 13 parties. The maximum amount involved during the
year and the year-end outstanding balance of such loans/ advances
aggregates to Rs.25.02 Crores and Rs.21.27 Crores respectively.
b. The company has taken interest free unsecured loans / advances
against contracts from two parties. The maximum amount involved during
the year and the year-end outstanding balance of such loans/ advances
aggregates to Rs.2.31 Crores and Rs.2.11 Crores respectively.
c. In our opinion, considering the nature of transactions, the terms
and conditions on which such loans/advances have been granted to and
taken from such parties are not, prima facie, prejudicial to the
interest of the company.
d. In respect of the loans/advances granted and taken as aforesaid
there is no stipulation for repayment on fixed intervals.
iv. In our opinion and in accordance with the information and
explanation given to us, the internal control procedures for the
purchase of inventory, raw materials, stores and fixed assets and for
the sale of goods & services are adequate and commensurate with the
size of the company and the nature of its business. During the course
of our audit, we have not observed any continuing failure to correct
major weakness in the internal control system.
v. In respect of contracts or arrangements entered in the Register
maintained in pursuance of Section 301 of the Companies Act, 1956 and
to the best of our knowledge & belief and according to information and
explanations given to us:
a. The particulars of the contracts/ transactions that need to be
entered into the register maintained under section 301 of the Companies
Act, 1956, have been so entered.
b. In our opinion and having regards to our comments in paragraph (iv)
above, the transactions (excluding loans/ advances reported in
paragraph (iii above) exceeding the value of Rs. 5 lakhs in respect of
any party during the period, have been made at prices which are prima
facie reasonable having regard to the prevailing market prices at the
relevant time.
vi. In our opinion and according to the explanations given to us, the
company has not accepted Deposits from the public during the year.
Therefore, the provisions of clause 4(vi) of CARO are not applicable to
the Company.
vii. In our opinion the company has internal audit system commensurate
with the size and nature of its business.
viii. The Central Government has not prescribed maintenance of the cost
records under Section 209(1)(d) of the Companies Act, 1956 for the
product of the company.
ix. According to the information and explanations given to us in
respect of statutory dues:
a. The Company has generally been regular in depositing undisputed
statutory dues including provident fund, income tax, sales tax, service
tax, excise duty, cess and other material statutory dues applicable to
it with the appropriate authorities during the year.
b. According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax,
service tax, sales tax, custom duty, excise duty, cess and other
material statutory dues applicable to it were in arrears as at 31st
March, 2010 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 in
our opinion, there are no dues of customs duty, Wealth Tax, Service
Tax, Excise Duty, Cess and Income Tax which have not been deposited as
on 31st March, 2010 on account of any dispute, excepting Agricultural
Income Tax liability of Rs. 54.39 lakhs for the accounting year
1994-95, 1995-96 and 1996-97 which is pending at West Bengal Tax
Tribunal. (Refer Note No. 7 of Notes on Accounts)
x. The Company does not have any accumulated losses and has not
incurred cash losses during the financial year covered by our audit and
the immediately preceding financial year.
xi. In our opinion and according to the explanations given to us, the
company has not defaulted in repayment of dues to financial
institution, bank or debenture holders.
xii. The company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii. The company is not a chit fund or a nidhi/ mutual benefit
fund/society.
xiv. The company has not entered into transactions of dealing or
trading in shares, securities, debentures and other investments.
xv. The company has given guarantees of Rs.581.51Lakhs for loans taken
by others from banks or financial institutions. According to the
information and explanations given to us, we are of the opinion that
the terms and conditions thereof are not prima facie prejudicial to the
interests of the company.
xvi. To the best of our knowledge and belief and according to the
information and explanations given to us, in our opinion, term loans
availed by the Company were, prima facie, applied by the Company during
the year for the purposes for which the loans were obtained.
xvii. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the company, we are of
the opinion that there are no funds raised on short-term basis that
have been used for long-term investment.
xviii. The company has not made any prefential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Act.
xix. The company has not issued any debentures.
xx. The Company has not raised any money by way of public issue during
the year.
xxi. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the company
has been noticed or reported during the year.
For P. K. SHAH & CO.
Chartered Accountants
Firm Registration No. : 308150E
P. K. Shah
Partner
Place : Kolkata
(Membership No. 014740)
Dated, the 31st day of May, 2010
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