Mar 31, 2014
We have audited the accompanying financial statements of Longview Tea
Company Limited ("the Company"), which comprise the Balance Sheet as at
March 31st 2014, and 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 notes for the year ended on that date.
2) Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act") read with 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 are free from
material misstatement, whether due to fraud or error.
3) 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 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.
4) Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India :
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31st 2014;
(b) In the case of the Statement of profit and loss, of the profit for
the year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
5) Report on Other Legal and Regulatory Requirements
i. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act and according to the
information and explanations given to us and also on the basis of such
checks as we considered appropriate, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
ii. As required by section 227(3) of the Act, we report that :
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. In our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting standards referred
to in sub section (3C) of Section 211 of 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;
e. On the basis of written representations received from the directors
as on March 31st 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31st 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 AUDITOR''S REPORT
(Referred to in paragraph 5 of our Audit Report of even date)
1) As required by the Companies (Auditor''s Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956, and on the basis of such
verification of the books and records as considered appropriate and
available and according to the information and explanations given to
us, we report that :
i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The fixed assets are physically verified by the management which in
our opinion is reasonable having regard to the size of the company and
the nature of its fixed assets. As informed, no material discrepancies
were noted on such verification.
(c) The Company has not disposed off substantial part of its fixed
assets during the year.
ii) The Company is engaged in trading of tea and ferrous metals. Stock
of tea or ferrous metals is physically verified at the time of sale.
The company does not have any inventory at the year end. Keeping in
view, the nature of operations, in our opinion, the procedures for
physical verification of inventory followed by the management are
reasonable and adequate in relation to the size of the Company and
nature of its business.
iii) a) The Company has not granted any loans, secured or unsecured to
any companies, firms or other parties covered in the register
maintained under Section 301 of the Companies Act, 1956. Accordingly,
clauses 4(iii) (a) to (d) of the Companies (Auditors'' Report) Order,
2003 are not applicable.
b) The Company has not taken any loans, secured or unsecured from
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956. Accordingly clauses
4(iii) (e) to (g) of the Companies (Auditors'' Report) Order, 2003 are
not applicable.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventory, plant and machinery, equipment
and other assets.
v) According to the information and explanation provided by the
management, we are of the opinion that during the year there are no
transactions that need to be entered in the register in pursuance of
Section 301 of the Companies Act, 1956. Having regard to the same,
clause 4(v) (b) of the order as aforesaid is not applicable.
vi) The Company has not accepted any public deposits during the year.
Therefore, the provisions of the clause 4(vi) of the Companies
(Auditor''s Report) Order, 2003 are not applicable to the Company.
vii) The Company''s Internal Audit has been carried out by a firm of
Chartered Accountants. The internal audit system in respect of areas
covered is commensurate with the size and nature of the business of
Company.
viii) There is no requirement for maintenance of cost records under
section 209(1)(d) of the Companies Act, 1956.
ix) (a) According to the records of the Company, the Company is
generally regular in depositing with the appropriate authorities
undisputed statutory dues including Provident Fund, Investor Education
& Protection Fund, Employees'' State Insurance, Income Tax, Sales Tax,
Wealth Tax, Customs Duty, Excise Duty, Cess and other statutory dues
applicable to it. There is no such dues outstanding as on 31st March
2014 for a period of more than six months from the date these became
payable.
(b) According to the records of the Company, there are no undisputed
dues of Wealth tax, Custom Duty and Cess except Income Tax, Sales tax,
Excise Duty that have not been deposited on account of dispute as per
the statement on disputed dues given as under. No details were made
available for our verification in respect of demand of Rs. 2,43,748 on
account of Agricultural Income Tax.
Particulars Assessment Year Amount (Rs.) Forum where appeal is pending
Excise Duty 1999-2000 7,92,688 High Court, Calcutta
Sales Tax 1977-78; ''78-79; 1,65,658 No details were made available
''79-''80 & ''80-''81 as to the forum where appeal
is pending
1995-''96 3,08,095.51 Assistant Commissioner
1998-''99 19,34,613.28 Assistant Commissioner
2000-''01 1,46,090 Tribunal
x) Based on the financial statements covered pursuant to this report,
the accumulated losses of the Company has not exceeded 50% of its net
worth at the end of the financial year and the Company has not incurred
cash losses during the financial year or in the immediately preceding
financial year.
xi) The Company has not borrowed any money from banks, financial
institution and against debentures and as such the provisions of the
clause 4(xi) of the Companies (Auditor''s Report) Order, 2003 are not
applicable to the Company.
xii) The Company has not granted any loans and advances on the basis of
security provided by way of pledge of shares. Accordingly, the
provisions of clause 4(xii) of the Companies (Auditor''s Report) Order,
2003 are not applicable to the Company.
xiii) According to the information and explanations given to us, the
Company is not a chit fund or a nidhi mutual benefit fund/society.
Accordingly, the provisions of clause 4(xiii) of the Companies
(Auditor''s Report) Order, 2003 are not applicable to the Company.
xiv) In respect of investments made by the Company in Shares,
Securities, Debentures, etc. proper records have been maintained. These
investments are held in the name of the Company.
xv) According to the information and explanations given to us, the
Company has not given any guarantees for loans taken by others from
banks or financial institutions and as such the provisions of clause
4(xv) of the Companies (Auditor''s Report) Order, 2003 are not
applicable to the Company.
xvi) In our opinion and according to the information and explanations
given to us, the Company has not obtained any term loans during the
year. Accordingly, the provisions of clause 4(xvi) of the Companies
(Auditor''s Report) Order, 2003 are not applicable to the Company.
xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, no
short-term funds have been used for long term investments during the
year.
xviii) The Company has not made any preferential allotment of shares
during the year. Therefore, the provisions of the clause 4(xviii) of
the Companies (Auditor''s Report) Order, 2003 are not applicable to the
Company.
xix) The Company has not issued any debentures during the year.
Accordingly, the provisions of clause 4(xix) of the Companies
(Auditor''s Report) Order, 2003 are not applicable to the Company.
xx) The Company has not raised money by public issue during the year.
Therefore, the provisions of the clause 4(xx) of the Companies
(Auditor''s Report) Order, 2003 are not applicable to the Company.
xxi) During the course of our examination of the books of accounts
carried out in accordance with the generally accepted auditing
practices in India, we have neither come across any incidence on or by
the Company nor have we been informed of any of such case by the
management.
For LODHA & CO.
Chartered Accountants
Firm ICAI Registration No.: 301051E
H.K. Verma
Place : Kolkata Partner
Date : 30th May 2014 Membership No. 055104
Mar 31, 2013
1) Report on the Financial Statements
We have audited the accompanying financial statements of Longview Tea
Company Limited ("the Company"), which comprise the Balance Sheet as at
March 31st 2013, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
2) 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 fair presentation of the financial statements
that are free from material misstatement, whether due to fraud or
error.
3) 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 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. 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.
4) Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
#
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31st 2013;
(b) In the case of the Statement of profit and loss, of the profit for
the year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
5) Report on Other Legal and Regulatory Requirements
i. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
ii. As required by section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. In our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting standards referred
to in sub section (3C) of Section 211 of the Companies Act 1956;
e. On the basis of written representations received from the directors
as on March 31st 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31 st 2013, from
being appointed as a director in terms of clause (g) of sub- section
(1) of Section 274 of the Companies Act, 1956.
f. Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under Section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
ANNEXURE TO THE AUDITORS'' REPORT
(Referred to in paragraph 5 of our Audit Report of even date)
1) As required by the Companies (Auditor''s Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956, and on the basis of such
verification of the books and records as considered appropriate and
available and according to the information and explanations given to
us, we report that:
i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The fixed assets are physically verified by the management which in
our opinion is reasonable having regard to the size of the company and
the nature of its fixed assets. As informed, no material discrepancies
were noted on such verification.
(c) The Company has not disposed off substantial part of its fixed
assets during the year.
ii) The Company is engaged in trading of tea and ferrous metals. Stock
of tea or ferrous metals is physically verified at the time of sale.
The company does not have any inventory at the year end. Keeping in
view, the nature of operations, in our opinion, the procedures for
physical verification of inventory followed by the management are
reasonable and adequate in relation to the size of the Company and
nature of its business.
iii) a) The Company has granted unsecured loan to one company covered
in the register maintained under section 301 of the Companies Act,
1956. The maximum amount outstanding at any time during the year and
year-end balance of such loan given aggregating to Rs. 9,48,89,000 and
Rs. 7,69,58,574 respectively.
b) According to the information and explanations given to us, the rate
of interest and other terms and conditions on which such loan granted
were prima facie not prejudicial to the interest of the company.
c) According to the information and explanations given to us,
stipulation and repayment terms on which this loan is given on demand
basis. The company was regular in receipt of interest.
d) In respect of the loan granted there was no amount overdue at the
year-end.
e) The company has not taken any loans, secured or unsecured from
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956. Accordingly clauses
4(iii) (e) to (g) of the Companies (Auditors'' Report) Order, 2003 are
not applicable.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventory, plant and machinery, equipment
and other assets.
v) According to the information and explanation given to us, we are of
the opinion that the company has entered all the transactions required
to be entered in the register maintained under section 301 of the
Companies Act, 1956.
vi) The Company has not accepted any public deposits during the year.
Therefore, the provisions of the clause 4(vi) of the Companies
(Auditor''s Report) Order, 2003 are not applicable to the Company.
vii) The Company''s internal audit has been carried out by a firm of
Chartered Accountants. The internal audit system in respect of areas
covered is commensurate with the size and nature of the business of
Company.
viii) There is no requirement for maintenance of cost records under
section 209(1 )(d) of the Companies Act, 1956.
ix) (a) According to the records of the Company, the Company is
generally regular in depositing with the appropriate authorities
undisputed statutory dues including Provident Fund, Investor Education
& Protection Fund, Employees'' State Insurance, Income Tax, Sales Tax,
Wealth Tax, Customs Duty, Excise Duty, Cess and other statutory dues
applicable to it. There is no such dues outstanding as on 31sl March
2013 for a period of more than six months from the date these became
payable.
(b) According to the records of the Company, there are no undisputed
dues of Wealth tax, Custom Duty and Cess except Income Tax, Sales tax,
Excise Duty that have not been deposited on account of dispute as per
the statement on disputed dues given as under. No details were made
available for our verification in respect of demand of Rs. 2,43,748 on
account of Agricultural Income Tax.
Particulars Assessment
Year Amount (Rs.) Forum where appeal is
pending
Excise Duty 1999-2000 7,92,688 High Court, Calcutta
Sales Tax 1977-78;
78-79; 1,65,658 No details were made
available as to
79-''80 & 80-''81 the forum where appeal
is pending
1995-''96 095.51 Assistant Commissioner
1998-''99 19,34,613.28 Assistant Commissioner
2000-''01 1,46,090 Tribunal
x) Based on the financial statements covered pursuant to this report,
the accumulated losses of the Company has not exceeded 50% of its net
worth at the end of the financial year and the Company has not incurred
cash losses during the financial year or in the immediately preceding
financial year.
xi) The Company has not borrowed any money from banks, financial
institution and against debentures and as such the provisions of the
clause 4(xi) of the Companies (Auditor''s Report) Order, 2003 are not
applicable to the Company.
xii) The Company has not granted any loans and advances on the basis of
security provided by way of pledge of shares. Accordingly, the
provisions of clause 4(xii) of the Companies (Auditor''s Report) Order,
2003 are not applicable to the Company.
xiii) According to the information and explanations given to us, the
Company is not a chit fund or a nidhi mutual benefit fund/society.
Accordingly, the provisions of clause 4(xiii) of the Companies
(Auditor''s Report) Order, 2003 are not applicable to the Company.
xiv) In respect of investments made by the Company in Shares,
Securities, Debentures, etc. proper records have been maintained. These
investments are held in the name of the Company.
xv) According to the information and explanations given to us, the
Company has not given any guarantees for loans taken by others from
banks or financial institutions and as such the provisions of clause
4(xv) of the Companies (Auditor''s Report) Order, 2003 are not
applicable to the Company.
xvi) In our opinion and according to the information and explanations
given to us, the Company has not obtained any term loans during the
year. Accordingly, the provisions of clause 4(xvi) of the Companies
(Auditor''s Report) Order, 2003 are not applicable to the Company.
xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, no
short-term funds have been used for long term investments during the
year.
xviii) The Company has not made any preferential allotment of shares
during the year. Therefore, the provisions of the clause 4(xviii) of
the Companies (Auditor''s Report) Order, 2003 are not applicable to the
Company.
xix) The Company has not issued any debentures during the year.
Accordingly, the provisions of clause 4(xix) of the Companies
(Auditor''s Report) Order, 2003 are not applicable to the Company.
xx) The Company has not raised money by public issue during the year.
Therefore, the provisions of the clause 4(xx) of the Companies
(Auditor''s Report) Order, 2003 are not applicable to the Company.
xxi) During the course of our examination of the books of accounts
carried out in accordance with the generally accepted auditing
practices in India, we have neither come across any incidence on or by
the Company nor have we been informed of any of such case by the
management.
For LODHA & CO.
Chartered Accountants
Firm ICAI Registration
No.: 301051E
H.K. Verma
Place : Kolkata Partner
Date : 30 th May 2013 Membership No. 055104
Mar 31, 2012
We have audited the attached Balance Sheet of Longview Tea Company
Limited as at 31st March, 2012 and the Statement of Profit and Loss
along with the Cash Flow Statement for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the Company's management. Our responsibility is to express an opinion
on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. 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.
1) As required by the Companies (Auditor's Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956, and on the basis of such
verification of the books and records as considered appropriate and
available and according to the information and explanations given to
us, we report that:
i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The fixed assets are physically verified by the management which in
our opinion is reasonable having regard to the size of the company and
the nature of its fixed assets. As informed, no material discrepancies
were noted on such verification.
(c) The Company has not disposed off substantial part of its fixed
assets during the year.
ii) The Company is engaged in trading of tea. Stock of tea is
physically verified at the time of sale. The company does not have any
inventory at the year end. Keeping in view, the nature of operations,
in our opinion, the procedures for physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and nature of its business.
iii) The company has not granted/taken any loans, secured or unsecured
to/from companies, firms or other parties covered in the register
maintained under Section 301 of the Companies Act, 1956. Accordingly
clause 4(iii) (b) to (g) of the Companies (Auditors' Report) Order,
2003 are not applicable.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventory, plant and machinery, equipment
and other assets.
v) In our opinion and according to the information and explanations
given to us, there were no transactions that need to be entered into
the register in pursuance of section 301 of the Companies Act 1956.
Therefore the provisions of clause 4(v) (b) of the Companies (Auditor's
Report) Order, 2003 are not applicable to the Company.
vi) The Company has not accepted any public deposits during the year.
Therefore, the provisions of the clause 4(vi) of the Companies
(Auditor's Report) Order, 2003 are not applicable to the Company.
vii) No internal audit has been conducted during the year.
viii) There is no requirement for maintenance of cost records under
section 209(1 )(d) of the Companies Act, 1956.
ix) (a) According to the records of the Company, the Company is
generally regular in depositing with the appropriate authorities
undisputed statutory dues including Provident Fund, Investor Education
& Protection Fund, Employees' State Insurance, Income Tax, Sales Tax,
Wealth Tax, Customs Duty, Excise Duty, Cess and other statutory dues
applicable to it. There is no such dues outstanding as on 31st March
2012 for a period of more than six months from the date these became
payable.
(b) According to the records of the Company, there are no undisputed
dues of Wealth tax, Custom Duty and Cess except Income Tax, Sales tax,
Excise Duty that have not been deposited on account of dispute as per
the statement on disputed dues given as under. No details were made on
available for our verification in respect of demand of Rs. 2,43,748 on
account of Agricultural Income Tax.
Particulars Assessment
Year Amount (Rs.) Forum where appeal is pending
Excise Duty 1999-2000 7,92,688 High Court, Calcutta
Sales Tax 1977-78;
78-79; 1,65,658 No details were made
available as to
79-'80 &
'80-'81 the forum where appeal is
pending
1995-'96 3,08,095.51 Assistant Commissioner
1998-'99 19,34,613.28 Assistant Commissioner
2000-'01 1,46,090 Tribunal
x) Based on the financial statements covered pursuant to this report,
the accumulated losses of the Company has not exceeded 50% of its net
worth at the end of the financial year and the Company has not incurred
cash losses during the financial year or in the immediately preceding
financial year.
xi) The Company has not borrowed any money from banks, financial
institution and against debentures and as such the provisions of the
clause 4(xi) of the Companies (Auditor's Report) Order, 2003 are not
applicable to the Company.
xii) The Company has not granted any loans and advances on the basis of
security provided by way of pledge of shares. Accordingly, the
provisions of clause 4(xii) of the Companies (Auditor's Report) Order,
2003 are not applicable to the Company.
xiii) According to the information and explanations given to us, the
Company is not a chit fund or a nidhi mutual benefit fund/society.
Accordingly, the provisions of clause 4(xiii) of the Companies
(Auditor's Report) Order, 2003 are not applicable to the Company.
xiv) In respect of investments made by the Company in Shares,
Securities, Debentures, etc. proper records have been maintained. These
investments are held in the name of the Company except for 600 shares
of Deepak Spinners Ltd.
xv) According to the information and explanations given to us, the
Company has not given any guarantees for loans taken by others from
banks or financial institutions and as such the provisions of clause
4(xv) of the Companies (Auditor's Report) Order, 2003 are not
applicable to the Company.
xvi) In our opinion and according to the information and explanations
given to us, the Company has not obtained any term loans during the
year. Accordingly, the provisions of clause 4(xvi) of the Companies
(Auditor's Report) Order, 2003 are not applicable to the Company.
xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, no
short-term funds have been used for long term investments during the
year.
xviii)The Company has not made any preferential allotment of shares
during the year. Therefore, the provisions of the clause 4(xviii) of
the Companies (Auditor's Report) Order, 2003 are not applicable to the
Company.
xix) The Company has not issued any debentures during the year.
Accordingly, the provisions of clause 4(xix) of the Companies
(Auditor's Report) Order, 2003 are not applicable to the Company.
xx) The Company has not raised money by public issue during the year.
Therefore, the provisions of the clause 4(xx) of the Companies
(Auditor's Report) Order, 2003 are not applicable to the Company.
xxi) During the course of our examination of the books of accounts
carried out in accordance with the generally accepted auditing
practices in India, we have neither come across any incidence of fraud
on or by the Company nor have we been informed of any of such case by
the management.
2) Attention is invited to following Notes
i) Note No. 12.1 regarding non-provision of overdue debtors amounting
to Rs. 3,500,000 resulting in higher balance of debtors by Rs.
3,500,000 and loss being lower to that extent.
ii) Note No. 14.1 regarding accrual of income on certain loans and
advances considering these as good and recoverable. Consequently, the
loans & advances and interest receivable are higher by Rs. 41,40,829
and Rs. 1,65,89,203 respectively and profit for the year higher by Rs.
2,07,30,032.
3) Further to the above we report that, had the impact of the items
mentioned in Para 2(i) and 2(ii) above have been given in the accounts,
the loss for the year would have been Rs. 1,76,82,203. (as against
reported figures of profit of Rs. 65,47,600), Profit and Loss balance
in the balance sheet would have been Rs. 3,71,60,573 (as against
reported figure of Rs. 1,29,30,541), Interest Receivable would have
been nil (as against reported figure of Rs. 1,65,89,203), Loans and
advances would be Rs. 8,17,84,112 (as against reported figure of Rs.
8,59,24,941.) and debtors would have been nil (as against reported
figure of Rs. 35,00,000).
4) Further to the above, we report that:
(a) We have obtained all the information and explanations, which to the
best of our knowledge and belief, were necessary for the purposes of
our audit;
(b) In our opinion, proper books of account as required by law have
been kept by the Company, so far as it appears from our examination of
books of account.
(c) The Balance Sheet, 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 Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in Sub-Section 3(C) of Section 211 of
the Companies Act, 1956;
(e) On the basis of written representations received from the directors
and taken on record the Board of Directors, we report that none of the
directors of the Company is disqualified as on 31st March, 2012 from
being appointed as a director in terms of Clause (g) of sub- section
(1) of Section 274 of the Act;
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts, subject to our remarks
with the resultant impact as given in para 2 above and together with
the overall impact (to the extent ascertainable) as given in para 3
above and read together with other Notes, give the information required
by the Companies Act, 1956 in the manner so required give a true and
fair view in conformity with Accounting Principles generally accepted
in India.:
(i) in case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012;
(ii) in case of the Statement of Profit and Loss, of the profit of the
Company for the year ended on that date; and
(iii) in case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
For Lodha & Co.
Chartered Accountants
Firm's ICAI Registration No. 301051E
H.K VERMA
Place : Kolkata Partner
Date : 29th May, 2012 Membership No. 55104
Mar 31, 2010
We have audited the attached Balance Sheet of Longview Tea Company
Limited as at 31st March, 2010 and the Profit and Loss Account along
with the Cash Flow Statement for the year ended on that date annexed
thereto.
These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. 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.
1) As required by the Companies (Auditor's Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956, and on the basis of such
verification of the books and records as considered appropriate and
available and according to the information and explanations given to
us, we report that :
i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The fixed assets are physically verified by the management which in
our opinion is reasonable having regard to the size of the company and
the nature of its fixed assets. As informed, no material discrepancies
were noted on such verification.
(c) The Company has not disposed off substantial part of its fixed
assets during the year.
ii) The company does not have any inventory. Accordingly, the provision
of Clause (ii) of the Companies
(Auditor's Report) Order, 2003 is not applicable to the Company.
iii) The company has not granted/taken any loans, secured or unsecured
to/from companies, firms or other parties covered in the register
maintained under Section 301 of the Companies Act, 1956. Accordingly
clause 4(iii) (b) to (g) of the Companies (Auditors' Report) Order,
2003 are not applicable.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of stores, raw materials, plant and
machinery, equipment and other assets.
v) In our opinion and according to the information and explanations
given to us, there were no transactions that need to be entered into
the register in pursuance of section 301 of the Companies Act 1956.
Therefore the provisions of clause 4(v)(b) of the Companies (Auditor's
Report) Order, 2003 are not applicable to the Company.
vi) The Company has not accepted any public deposits during the year.
Therefore, the provisions of the clause 4(vi) of the Companies
(Auditor's Report) Order, 2003 are not applicable to the Company.
vii) No internal audit has been conducted during the year. viii) There
is no requirement for maintenance of cost records under section 209(1
)(d) of the Companies Act, 1956.
ix) (a) According to the records of the Company, the Company is
generally regular in depositing with the appropriate authorities
undisputed statutory dues including Provident Fund, Investor Education
& Protection Fund, Employees' State Insurance, Income Tax, Sales Tax,
Wealth Tax, Customs Duty, Excise Duty, Cess and other statutory dues
applicable to it. There is no such dues outstanding as on 31 st March
2010 for a period of more than six months from the date these became
payable.
(b) According to the records of the Company, there are no undisputed
dues of Wealth tax, Custom Duty and Cess except Income Tax, Sales tax,
Excise Duty that have not been deposited on account of dispute as per
the statement on disputed dues given as under.
Particulars Assessment Year Amount (Rs.) Forum where appeal
is pending
Excise Duty 1999-2000 7,92,688 High Court, Calcutta
Sales Tax 1995-96 3,08,095.51 Assistant Commissioner
1998-99 19,34,613.28 Assistant Commissioner
2000-01 1,46,090 Tribunal
x) Based on the financial statements covered pursuant to this report,
the accumulated losses of the Company has not exceeded 50% of its net
worth at the end of the financial year and the Company has incurred
cash losses during the financial year and the immediately preceding
financial year.
xi) The Company has not borrowed any money from banks, financial
institution and against debentures and as such the provisions of the
clause 4(xi) of the Companies (Auditor's Report) Order, 2003 are not
applicable to the Company.
xii) The Company has not granted any loans and advances on the basis of
security provided by way of pledge of shares. Accordingly, the
provisions of clause 4(xii) of the Companies (Auditor's Report) Order,
2003 are not applicable to the Company.
xiii) According to the information and explanations given to us, the
Company is not a chit fund or a nidhi mutual benefit fund/society.
Accordingly, the provisions of clause 4(xiii) of the Companies
(Auditor's Report) Order, 2003 are not applicable to the Company.
xiv) In respect of investments made by the Company in Shares,
Securities, Debentures, etc. proper records have been maintained. All
the investments have been held by the company in its own name.
xv) According to the information and explanations given to us, the
Company has not given any guarantees for loans taken by others from
banks or financial institutions and as such the provisions of clause
4(xv) of the Companies (Auditor's Report) Order, 2003 are not
applicable to the Company.
xvi) In our opinion and according to the information and explanations
given to us, the Company has not obtained any term loans during the
year. Accordingly, the provisions of clause 4(xvi) of the Companies
(Auditor's Report) Order, 2003 are not applicable to the Company.
xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, no
short-term funds have been used for long term investments during the
year.
xviii) The Company has not made any preferential allotment of shares
during the year. Therefore, the provisions of the clause 4(xviii) of
the Companies (Auditor's Report) Order, 2003 are not applicable to the
Company.
xix) The Company has not issued any debentures during the year.
Accordingly, the provisions of clause 4(xix) of the Companies
(Auditor's Report) Order, 2003 are not applicable to the Company.
xx) The Company has not raised money by public issue during the year.
Therefore, the provisions of the clause 4(xx) of the Companies
(Auditor's Report) Order, 2003 are not applicable to the Company.
xxi) During the course of our examination of the books of accounts
carried out in accordance with the generally accepted auditing
practices in India, we have neither come across any incidence of fraud
on or by the Company nor have we been informed of any of such case by
the management.
2) According to the information and explanations given to us and on the
basis of test checks carried out by us during the course of the audit
of the Company, our report on the matters specified under para 3A and
3C of Non Banking Financial Companies Auditor's Report (Reserve Bank)
Directions, 1998 is as follows :
i) The company is engaged in the business of Non-banking financial
institution and it has not obtained a Certificate of Registration with
the Reserve Bank of India as Non Banking Financial Company carrying on
the business without accepting public deposits.
ii) The company is not an Asset Finance Company (AFC) as defined in Non
Banking Financial Company Acceptance of public Deposits (Reserve Bank)
Directions 1998 with reference to the business carried on by it during
the financial year and therefore provisions of Para 3(A)(III) are not
applicable to the company.
iii) The Board of Directors have passed the resolution for
non-acceptance of the public deposits.
iv) The Company has not accepted any public deposits during the year.
v) Except as stated in para 3 below, the company has complied with
prudential norms on income recognition, accounting standard, asset
classification and provisioning for bad and doubtful debts as specified
in directions issued by the Reserve Bank of India in terms of the Non
Banking Financial Companies Prudential Norms (Reserve Bank) Directions,
1998.
vi) The company is not a Systematically Important Non Deposit taking
NBFCs as defined in paragraph 2(1)(xix) of the Non - Banking Financial
(Non Deposit Accepting or holding ) Companies Prudential Norms (Reserve
Bank) Directions ,2007 and therefore provisions of Para3(C)(iv)are not
applicable to the company.
3) Attention is invited to following notes of Schedule 14
i) Note No.3 regarding non-provision of overdue debtors amounting to
Rs. 3,575,371 resulting in higher balance of debtors by Rs. 3,575,371
and loss being lower to that extent.
ii) Note No.4 regarding non-confirmation of certain balances and
pending reconciliation and adjustments arising there from, impact
whereof is presently not ascertainable.
iii) Note No.6 regarding accrual of income on certain loans and
advances considering and provisioning against same considering these as
good and recoverable instead of treating the advances as non-
performing asset (NPA) as defined in the prudential norms for Non
Banking Financial Companies issued by the Reserve Bank of India.
Consequently, the loans & advances and interest receivable are higher
by Rs. 4,140,829 and Rs1,22,09,377 respectively and loss for the year
lower by Rs. 1,63,50,206
4) Further to the above we report that without considering the items
mentioned in Para 3(H), had the impact of the items mentioned in Para
3(i) and 3(iii) above have been given in the accounts, the loss for the
year would have been Rs. 2,19,01,967 (as against reported figures of Rs
19,76,390), Profit and Loss balance in the balance sheet would have
been Rs. 4,57,37,212 (as against reported figure of Rs. 2,58,11,635)
Interest Receivable would have been 73,48,421 (as against reported
figure of Rs. 1.62,57,798), Loans and advances would be Rs. 6,77,82,373
(as against reported figure of Rs. 7,19,23,202) and debtors would have
been nil (as against reported figure of Rs. 3,575,371).
5) Further to the above, we report that :
(a) We have obtained all the information and explanations, which to the
best of our knowledge and belief, were necessary for the purposes of
our audit;
(b) In our opinion, proper books of account as required by law have
been kept by the Company, so far as it appears from our examination of
books of accounts.
(c) The Balance Sheet, Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in Sub-Section 3(C) of Section 211 of the
Companies Act,1956;
(e) On the basis of written representations received from the directors
and taken on record the Board of Directors, we report that none of the
directors of the Company is disqualified as on 31st March, 2010 from
being appointed as a director in terms of Clause (g) of sub- section
(1) of Section 274 of the Act;
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts, subject to our remarks
with the resultant impact as given in para 2 and 3 above and together
with the overall impact (to the extent ascertainable) as given in para
2 and 3 above and together with the overall impact (to the extent
ascertainable) as given in para 4 above and read together with Notes of
Schedule 14, give the information required by the Companies Act, 1956
in the manner so required give a true and fair view in conformity with
Accounting Principles generally accepted in India.:
(i) in case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010; (ii) in case of the Profit and Loss
Account, of the loss of the Company for the year ended on that date;
and
(iii) in case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
For Lodha & Co
Chartered Accountants
Firm's ICAI Registration No. 301051E
H. K. VERMA
Partner
Membership No. 55104
Place: Kolkata
Date : 31st May, 2010