Mar 31, 2018
Report on the Standalone Financial Statements
We have audited the accompanying standalone Ind AS financial statements of Warren Tea Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss (including other comprehensive income), the Statement of Changes in Equity and the Statement of Cash Flows 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, 201 3 (âthe 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 the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act read with Companies (Indian Accounting Standards) Rules, 2015, as amended, and other accounting principles generally accepted in India.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Actfor 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 effectivelyfor ensuring the accuracy and completeness of the accounting records, relevantto 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 underthe provisions of the Act and the Rules made there under and the order issued under Section 143(11) of the Act.
We conducted our audit of the standalone Ind AS financial statements 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 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 ofthe 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 aforesaid 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, and its loss, total comprehensive income, the changes in equity and its cash flows for the year ended on that date.
Other Matter
The financial information of the Company for the year ended March 31, 2017 and the transition date opening balance sheet as at April 1, 2016 included in these standalone Ind AS financial statements, are based on the previously issued statutory financial statements for the years ended March 31, 2017 and March 31, 2016 prepared in accordance with the Companies (Accounting Standards) Rules, 2006 (as amended) which were audited by us, on which we expressed an unmodified opinion dated May 30, 2017 and May 26, 2016 respectively. The adjustments to those financial statements for the differences in accounting principles adopted by the Company on transition to the Ind AS have been audited by us.
Our opinion is not qualified in respect of this matter.
Report on Other Legal And Regulatory Requirements
i) As required bythe 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 Aâ statement on the matters specified in the paragraph 3 and 4 of the Order, to the extent applicable.
ii) 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 including other comprehensive income, the Statement of Changes in Equity and the Statement of Cash Flows 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.
e) On the basis of the written representations received from the directors as on March 31, 2018, taken on record bythe 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 respectto 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.
g) With respectto 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. The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements as referred to in Note No. 30 (11) to the financial statements.
ii. The Companydid not have any long-term contracts including derivative contracts as at March 31, 2018 for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company during the year.
ANNEXURE - A TO THE AUDITORSâ REPORT
The Annexure referred to in our Independent Auditorsâ Report to the members of the Company on the standalone Ind AS financial statements for the year ended March 31, 2018 we report that:
1. In respect of fixed assets:
(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The fixed assets were physically verified during the year by the Management in a phased programme which in our opinion provides for physical verification of all the fixed assets at reasonable intervals. And as per the information and explanations given to us, no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the company, the title deed of immovable properties are held in the name of the Company as at the Balance Sheet date.
2. As explained to us, the inventory of the Company has been physically verified during the year by the Management. In our opinion, the frequency of such verification is reasonable and no material discrepancies were noticed on such verification.
3. The Company has not granted any loans, secured or unsecured to companies, firms, limited liability partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013 Hence, clause 3(iii)(a), (iii)(b) & (iii)(c) of the order is not applicable to the company
4. In our opinion and according tothe information and explanations given tous, in respect of loans, guarantees, investments and security the company has complied with the provisions of section 185 and 1 86 of the CompaniesAct, 2013.
5. The Company has not accepted any deposits from the public, hence the clause 3 (v) of the order is not applicable to the company
6. We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148 of the Act, and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained.
7. (a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company has been regular in depositing the undisputed statutory dues including Provident Fund, Employees State Insurance, Income tax, Sales-tax, Service tax, Goods & Service Tax, Customs duty, Excise duty, Value added tax, Cess and other statutory dues as applicable, with the appropriate authorities.
According to the information and explanations given to us, no undisputed amounts payable in respectof the above items were in arrears as at March 31, 2018 for a period exceeding six months from the date they became payable.
(b) According to the information and explanation given to us and the records of the Company examined by us, the particulars of dues of Income-Tax, Sales Tax, Service Tax, Goods & Service Tax, Customs Duty, Excise duty Value added tax as at March 31, 2018, which have not been deposited on account of Dispute are as follows:
Name of the Statute |
Nature of the dues |
Amount (Rs. in Lacs) |
Period to which the amount relates |
Forum where dispute is pending |
Income Tax Act, 1961 |
Income Tax |
33.53 |
2014 - 2015 |
Deputy Commissioner of Income Tax |
0.09 |
2012-2013 |
Commissioner of Income Tax - Appeals |
||
24.98 |
2013 - 2014 |
Commissioner of Income Tax - Appeals |
||
Central Sales Tax Act, 1956 |
Assam General Sales Tax & Central Sales Tax |
1.56 |
2008 - 2009 |
Deputy Commissioner of Taxes |
66.60 |
1998 - 1999 |
|||
Assam General Sales Tax & Central Sales Tax |
1.71 |
1997 - 1998 |
Commissioner of Taxes |
|
4.15 |
1998 - 1999 |
|||
Assam General Sal es Tax Act, 1993 |
Assam General Sales Tax & Central Sales Tax |
9.71 |
2004- 2005 |
Gauhati High Court |
0.94 |
1997 - 1998 |
|||
6.95 |
2004- 2005 |
|||
Assam Land Revenue Reassessment Act, 1936 |
Land Revenue Tax |
28.33 |
2003-2004 to 2007-2008 |
Additional Deputy Commissioner |
8. According to the records of the Company examined by us and the information and explanations given to us, the Company has not defaulted in repayment of dues to any banks at the Balance Sheet date. The Company had neither any outstanding debenture nor has it issued any debenture during the year.
9. The Company has not raised money by way of initial public offer or further public offer (including debt instruments). Further, money raised by way of term loans, on an overall basis, have been applied for the purposes for which they were obtained.
10. During the course of our examination of the books and records of the company and according to the information and explanations given to us, we have neither come across any instances of material fraud on or bythe Company by its officers or employees being noticed or reported during the year, nor have we been informed of such case by the Management.
11. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid/provided for Managerial Remuneration in accordance with the requisite approvals of Shareholders/Central Government as mandated by the provisions of Section 197 read with Schedule V to the Companies Act, 2013.
12. The company is not a Nidhi Company as per the provisions of section 406 (1) of the Companies Act, 2013. Hence, clause 3 (xii) of the order is not applicable to the company.
13. According to the records of the Company examined by us and the information and explanations given to us, all transactions with the related parties are in compliance with sections 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the Financial Statements as required by the applicable Indian Accounting Standards.
14. The company has not made any preferential allotment or private placement of shares or fully or partly paid debentures during the year under review. Hence, clause 3 (xiv) of the order is not applicable to the company.
15. The company has not entered into any non-cash transactions with directors or persons connected to its directors, and hence provisions of Section 192 of the Companies Act, 2013 are not applicable to the Company.
16. The company is not required to register itself under section 45-IA of the Reserve Bankof IndiaAct, 1934.
ANNEXURE - Bâ TO THE INDEPENDENT AUDITORâS REPORT
Report on the Internal Financial Controls under Clause () of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We haveaudited the internal financial controls over financial reporting of Warren Tea Limited (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the standalone Ind AS 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 bythe Institute of Chartered Accountants of India (CAI). 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, tothe extent applicable to an auditof internal financial controls. 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 an d evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgement, 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 reflectthe 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 the 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
Becauseof the inherent limitations of internal financial controls overfinancial 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, and to the best of our information and according to the explanations given to us 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 March 31, 201 8, 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 bythe Institute of Chartered Accountants of India.
For B M Chatrath& Co LLP
Chartered Accountants
Firm Registration Number: 301011E/E300025
Sukhpreet S. Sidhu
Place: Kolkata Partner
Date: 26 May, 2018 Membership N umber 052187
Mar 31, 2016
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Warren Tea Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2016, the Profit and Loss Statement, 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 (âthe Actâ) with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India including the Accounting 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 misstatements.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Company''s directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid 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 March 31, 2016, and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
i) As required by the Companies (Auditor''s 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 Aâ statement on the matters specified in the paragraph 3 and 4 of the Order, to the extent applicable.
ii) 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 Profit and Loss Statement, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone 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 March 31, 2016, taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2016, from being appointed as a director in terms of Section 164 (2) of the Act.
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.
g) 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. The Company has disclosed the impact of pending litigations on its financial position in its financial statements as referred to in Note No. 27 (5) (a) , (c) to the financial statements.
i i. The Company did not have any long-term contracts including derivative contracts as at March 31, 2016 for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company during the year.
The Annexure referred to in our Independent Auditors'' Report to the members of the Company on the standalone financial statements for the year ended March 31, 2016, we report that:
1. In respect of fixed assets:
(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The fixed assets were physically verified during the year by the Management in a phased programme which in our opinion provides for physical verification of all the fixed assets at reasonable intervals. And as per the information and explanations given to us, no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the company, the title deed of immovable properties are held in the name of the Company.
2. As explained to us, the inventory of the Company has been physically verified during the year by the Management. In our opinion the frequency of such verification is reasonable and no material discrepancies were noticed on such verification.
3. The Company has not granted any loans, secured or unsecured to companies, firms, limited liability partnerships or other parties covered in the register maintained under section 189 of the Companies Act. Hence, clause 3(iii)(a), (iii)(b) & (iii)(c) of the order is not applicable to the company.
4. In our opinion and according to the information and explanations given to us, in respect of loans, guarantees, investments and security, the company has complied with the provisions of section 185 and 186 of the Companies Act, 2013.
5. The Company has not accepted any deposits from the public, hence the clause 3 (v) of the order is not applicable to the company.
6. We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148 of the Act, and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained.
7. (a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company has been regular in depositing the undisputed statutory dues including Provident Fund, Employees State Insurance, Income tax, Sales-tax, Wealth tax, Service tax, Customs duty, Excise duty, Value added tax, Cess and other statutory dues as applicable, with the appropriate authorities.
According to the information and explanations given to us, no undisputed amounts payable in respect of the above items were in arrears as at March 31, 2016 for a period exceeding six months from the date they became payable.
(b) According to the information and explanation given to us and the records of the Company examined by us, the particulars of dues of Income-Tax, Sales Tax, Service Tax, Customs Duty, Excise duty, Value added tax as at March 31, 2016, which have not been deposited on account of Dispute are as follows:
Name of the Statute |
Nature of the dues |
Amount (Rs. in Lacs) |
Period to which the amount relates |
Forum where dispute is pending |
Income Tax Act, 1961 |
Income Tax |
22.61 |
2007 - 2008 |
Deputy Commissioner of Income Tax |
|
33.52 |
2014 - 2015 |
||
|
|
0.09 |
2012 - 2013 |
Commissioner of Income Tax - Appeals |
Central Sales Tax Act, 1956 |
Assam General Sales Tax & Central Sales Tax |
1.56 |
2008 - 2009 |
Deputy Commissioner Taxes |
66.6 |
1998 - 1999 |
|||
|
Assam General Sales Tax & Central Sales Tax |
1.71 |
1997 - 1998 |
Commissioner of Taxes |
|
4.15 |
1998 - 1999 |
||
Assam General Sales Tax Act, 1993 |
Assam General Sales Tax & Central Sales Tax |
9.71 |
2004 - 2005 |
Gauhati High Court |
0.94 |
1997 - 1998 |
|
||
|
|
6.95 |
2004 - 2005 |
|
Assam Land Revenue Reassessment Act, 1936 |
Land Revenue Tax |
28.33 |
2003-2004 to 2007-2008 |
Additional Deputy Commissioner |
8. According to the records of the Company examined by us and the information and explanations given to us, the Company has not defaulted in repayment of dues to any banks at the Balance Sheet date. The Company had neither any outstanding debenture nor has it issued any debenture during the year.
9. The Company has not raised money by way of initial public offer or further public offer (including debt instruments). Further, money raised by way of term loans, on an overall basis, have been applied for the purposes for which they were obtained.
10. During the course of our examination of the books and records of the company and according to the information and explanations given to us, we have neither come across any instances of material fraud on or by the Company by its officers or employees being noticed or reported during the year, nor have we been informed of such case by the Management.
11. Due to inadequacy of profit, the amounts paid to or provided for two directors of the Company exceeded the limits prescribed by section 197 read with Schedule-V of Companies Act, 2013 by Rs42.31 Lacs for which applications have been filed with the Central Government under section 197 & 198 of the Act and the approval is still awaited. [Refer note 27(15)]
12. The company is not a Nidhi Company as per the provisions of section 406 (1) of the Companies Act, 2013. Hence, clause 3 (xii) of the order is not applicable to the company.
13. According to the records of the Company examined by us and the information and explanations given to us, all transactions with the related parties are in compliance with sections 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the Financial Statements as required by the applicable accounting standards.
14. The company has not made private placement of shares during the year under review. Hence, clause 3 (xiv) of the order is not applicable to the company.
15. The company has not entered into any non-cash transactions with directors or persons connected with him, hence the clause 3 (xv) of the order is not applicable to the company.
16. The company is not required to register itself under section 45-IA of the Reserve Bank of India Act, 1934.
For B.M.Chatrath & Co.
Chartered Accountants
Firm Registration Number: 301011E
A. Chatrath
Place: Kolkata Partner
Date: 26th May, 2016 Membership Number 052975
Mar 31, 2015
We have audited the accompanying financial statements of Warren Tea
Limited ("the Company"), which comprise the Balance Sheet as at
March 31,2015, the Profit and Loss Statement, 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 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.
AUDITORS' RESPONSIBILITY
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under. We conducted our
audit in accordance with the Standards on Auditing specified under
Section 143(10) of the Act. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatements. An audit involves performing procedures to
obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor's
judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal
financial control relevant to the Company's preparation of the
financial statements that give a true and fair view in order to design
audit procedures that are appropriate in the circumstances, but not for
the purpose of expressing an opinion on whether the Company has in
place an adequate internal financial controls system over financial
reporting and the operating effectiveness of such controls. An audit
also includes evaluating the appropriateness of accounting policies
used and the reasonableness of the accounting estimates made by the
Company's directors, as well as evaluating the overall presentation of
the financial statements .We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our audit
opinion on the financial statements.
OPINION
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid 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 March 31, 2015, and its profit and its cash flows for the year ended
on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
i) 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.
ii) 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 Profit and Loss Statement, and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the aforesaid standalone 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 March 31, 2015, taken on record by the Board of
Directors, none of the directors is disqualified as on March 31,2015,
from being appointed as a director in terms of Section 164 (2) of the
Act.
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. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements as referred to in Note
no. 27(6) to the financial statements.
ii. The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
and as required on long-term contracts including derivative contracts.
iii. No amounts were required to be transferred to the Investor
Education and Protection Fund by the Company during the year.
ANNEXURE TO THE AUDITORS' REPORT
The Annexure referred to in our Independent Auditors' Report to the
members of the Company on the standalone financial statements for the
year ended March 31, 2015, we report that:
1. In respect of fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) The fixed assets were physically verified during the year by the
Management in a phased programme which in our opinion provides for
physical verification of all the fixed assets at reasonable intervals.
According to the information and explanations given to us, no material
discrepancies were noticed on such verification.
2. In respect of its inventories:
(a) As explained to us, the inventory of the Company (excluding stocks
with third parties) has been physically verified during the year by the
management. In respect of stock lying with third parties, those have
substantially been confirmed by them. In our opinion the frequency of
such verification is reasonable.
(b) In our opinion, and according to information and explanations given
to us, the procedures of physical verification of inventory followed by
the Management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) In our opinion, and according to information and explanations given
to us, the Company has maintained proper records of its inventories and
no material discrepancies were noticed on physical verification.
3. The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under section 189 of the Act. In view of the above the clauses (a) and
(b) of the Paragraph 3 (iii) of the said order are not applicable to
the Company.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of fixed assets and for the sale of the goods and services.
Further, on the basis of our examination of the books and records of
the Company, and according to the information and explanations given to
us, we have neither come across nor have been informed of any
countinuing failure to correct major weaknesses in the aforesaid
internal control system.
5. The Company has not accepted any deposits from the public.
6. The Central Government has not prescribed the maintenance of cost
records under section 148(1) of the Act, for any of the services
rendered by the Company.
7. (a) According to the information and explanations given to us and
the records of the Company examined by us, in our opinion, the Company
has been regular in depositing the undisputed statutory dues including
Provident Fund, Investor Education and Protection Fund, Income tax,
Sales-tax, Wealth tax, Service tax, Customs duty, Excise duty, Cess and
other material statutory dues as applicable, with the appropriate
authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of the above items were in
arrears as at 31 March, 2015 for a period exceeding six months from the
date they became payable.
(b) According to the information and explanation given to us and the
records of the Company examined by us, the particulars of dues of
Income-Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise
duty/Cess as at March 31,2015, which have not been deposited on account
of Dispute are as follows:
Name of the Nature of Dues Amount Period to
Statute Involved which the
(Rs. in Lacs) amount relates
Income Tax Income Tax 22.61 2007-08
Act 1961
Central Sales Assam General 66.59 1998-99
Tax Act ,1956 Sales Tax &
Central Sales Tax 1.56 2008-09
Assam General 1.71 1997-98
Sales Tax &
Central Sales Tax 4.15 1998-99
Assam General Assam General 9.71 2004-05
Sales Tax Act, Sales Tax &
1993 Central Sales Tax 0.94 1997-98
6.96 2004-05
W.B VAT Sales Tax 40.55 2008-09
Act ,2003
Assam Land Land Revenue Tax 28.33 2003 -04
Revenue to 2007-08
Reassessment Act,
1936
Name of the Statute Forum where Dispute is Pending
Income Tax Act 1961 Deputy Commissioner of Income Tax
Central Sales Tax Act ,1956 Deputy Commissioner of Taxes-Assam
Commissioner of Taxes-Assam
Assam General Sales Tax Act Gauhati High Court
1993
W.B VAT Act ,2003 Appellate and Revisionary Board, West
Bengal
Assam Land Revenue Reasse Additional Deputy Commissioner
ssment Act 1936
(c) According to the information and explanations given to us, no
amounts were required to be transferred to the investor education and
protection fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules thereunder.
8. The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year
and in the immediately preceding financial year.
9. According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of dues to any banks at the Balance Sheet date. The Company
had neither any outstanding debenture nor loan from any financial
institution nor has it issued any debenture during the year.
10. In our opinion and according to the information and the
explanations given to us, the Company has not given any guarantee for
loans taken by others from banks or financial institutions.
11. In our opinion and according to the information and explanations
given to us, on an overall basis, the term loans have been applied for
the purposes for which they were obtained .
12. During the course of our examination of the books and records of
the Company, carried out in accordance with the Generally Accepted
Auditing Practices in India, and according to the information and
explanations given to us, we have neither come across any instances of
material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of such case by the Management.
For B.M.Chatrath & Co.
Chartered Accountants
Firm Registration Number: 301011E
Sukhpreet S. Sidhu
Place: Kolkata Partner
Date: 29th May, 2015 Membership Number: 52187
Mar 31, 2014
1. We have audited the accompanying financial statements of Warren Tea
Limited ("the Company"), which comprise the Balance Sheet as at March
31, 2014 and the Statement of Profit and Loss and Cash Flow Statement
for the year then ended, and a summary of significant accounting
policies and other explanatory information, which we have signed under
reference to this report.
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, 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:
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 and other applicable authoritative
pronouncements 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 entities 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
Auditors'' Report (Continued)
us, the accompanying 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 31, 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. Report on Other Legal and Regulatory
Requirements:
7. As required by ''the Companies (Auditor''s Report) Order, 2003, as
amended by the Companies (Auditor''s Report) (Amendment) Order, 2004,
issued by the Central Government of India in terms of sub-section (4A)
of section 227 of the Companies Act,1956 (hereinafter referred to as
the "Order"), and on the basis of such checks of the books and records
of the Company as we considered appropriate and according to the
information and explanations given to us, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the 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.
d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e) On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 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
[Referred to in paragraph 7 of the Auditors'' Report of even date to the
members of Warren Tea Limited on the financial statements for the year
ended 31st March 2014]
1. In respect of fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) The fixed assets were physically verified during the year by the
Management in a phased programme which in our opinion provides for
physical verification of all the fixed assets at reasonable intervals.
According to the information and explanations given to us, no material
discrepancies were noticed on such verification.
(c) In our opinion and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
of by the Company during the year.
2. In respect of its inventories:
(a) As explained to us, the inventory of the Company (excluding stocks
with third parties) has been physically verified during the year by the
management. In respect of stock lying with third parties, those have
substantially been confirmed by them. In our opinion the frequency of
such verification is reasonable.
(b) In our opinion, and according to information and explanations given
to us, the procedures of physical verification of inventory followed by
the Management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) In our opinion, and according to information and explanations given
to us, the Company has maintained proper records of its inventories and
no material discrepancies were noticed on physical verification.
3. (a) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under section 301 of the Act. In view of the above the clauses (b),
(c), (d) of the Paragraph 4(iii) of the said order are not applicable
to the Company.
(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 Act. In view of the above the clauses (f) &
(g) of paragraph 4(iii) of the Order are not applicable.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to the purchase of inventory, fixed assets and for the sale of the
goods and services. Further, on the basis of our examination of the
books and records of the Company, and according to the information and
explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control system.
5. (a) According to the information and explanations given to us, we
are of the opinion that the particulars of all contracts or
arrangements referred to in Section 301 that need to be entered in the
register maintained under the said section have been so entered.
(b) None of the transactions made in pursuance of such contracts or
arrangements exceeded the value Rs.5 Lakhs in respect of any one such
party in the financial year.
6. The Company has not accepted any deposits from the public within
the meaning of Sections 58A and 58AA of the Act and the rules framed
there under.
7. In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the cost records maintained by the Company
relating to Tea 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. We have, however,
not made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
9. (a) According to the information and explanations given to us and
the records of the Company examined by us, in our opinion, the Company
has been regular in depositing the undisputed statutory dues including
Provident Fund, Investor Education and Protection Fund, Income-tax,
Sales-tax, Wealth tax, Service tax, Customs duty, Excise duty, Cess and
other material statutory dues as applicable, with the appropriate
authorities.
(b) According to the information and explanation given to us and the
records of the Company examined by us, the particulars of dues of
Income-Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise
duty/Cess as at 31st March,2014, which have not been deposited on
account of Dispute are as follows:
Name of the Nature of Dues Amount Peroid to Forum Where dispute
Statute Involved which the is pending
(Rs.inLacs) amounts
relates
Income Tax Income Tax 5.33 1997-98 Commissioner of
Act 1961 10.57 2007-08 Income Tax (Appeals
253.03 2009-10
105.98 2010-11
Income Tax 3.13 1987-88 Income Tax Appelate
2.06 1984-85 Tribunal
Assam Agricultural 4169.32 1986-87 Gauhati High Court
Agricultural Income Tax to
Income Tax 2000-01
Act, 1939
Name of the Nature of Dues Amount Peroid to Forum where
Statute Involved Which the Dispute is Pending
Rs.in Lacs Amount
Relates
Sales Tax Act Assam General 66.60 1998-99 Deputy Commissionre
1965 Sales Tax & of Taxes- Assam
Central Sales
Tax
Assam General 1.71 1997-98 Commissioner of
Sales Tax & Taxes - Assam
Central Sales Tax 4.15 1998-99
Assam General 9.71 2004-05 Gauhati High Court
Sales Tax &
Central Sales Tax 0.94 1997-98
9.27 2004-05
Sales tax 15.62 2008-09 Appelate and
Revisionary Board,
West Bengal
Assam Land Land Revenue 28.33 2003-04 Additional Deputy
Revenue to Commissioner
Reassessment 2007-08
Act, 1936
10. The Company does not have accumulated losses as at 31st March 2014
and it has not incurred any cash losses in the financial year ended on
that date or in the immediately preceding financial year.
11. According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of dues to any banks at the Balance Sheet date. The
Company had neither any outstanding debenture nor loan from any
financial institution nor has it issued any debenture during the year.
12. According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities. Therefore the
provisions of clause 4(xii) of the Order are not applicable to the
company.
13. In our opinion, the provisions of any special statute applicable
to chit fund/ nidhi / mutual benefit fund/societies are not applicable
to the Company. Therefore the provisions of clause 4(xiii) of the Order
are not applicable to the company.
14. In our opinion and according to the information and explanations
given to us, the Company is not a dealer or trader in shares,
securities, debentures and other investments. Therefore
the provisions of clause 4(xiv) of the Order are not applicable to the
company.
15. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions. Accordingly, the
provisions of clause (xv) of Paragraph 4 of the Order are not
applicable to the Company.
16. The Company has not taken any term loan during the year. Therefore
the provisions of clause 4(xvi) of the Order are not applicable to the
company.
17. On the basis of an overall examination of the Balance Sheet of the
Company, in our opinion and according to the information and
explanations given to us, there are no funds raised on a short-term
basis which have been used for long-term investment. Therefore the
provisions of clause 4(xvii) of the Order are not applicable to the
company.
18. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act during the year. Therefore the provisions of clause
4(xviii) of the Order are not applicable to the company.
19. The Company has not issued any debentures and accordingly the
question of creation of securities in this regard does not arise.
Therefore the provisions of clause 4(xix) of the Order are not
applicable to the company.
20. The Company has not raised any money from public issue during the
year. Therefore the provisions of clause 4(xx) of the Order are not
applicable to the company.
21. During the course of our examination of the books and records of
the Company, carried out in accordance with the Generally Accepted
Auditing Practices in India, and according to the information and
explanations given to us, we have neither come across any instances of
material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of such case by the Management.
For B.M.Chatrath & Co.
Chartered Accountants
Firm Registration Number: 301011E
A. Chatrath
Partner
Membership Number 52975
Kolkata
Date: 29 May, 2014
Mar 31, 2013
1. We have audited the accompanying financial statements of Warren Tea
Limited ("the Company"), which comprise the Balance Sheet as at March
31, 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, which we have signed under
reference to this report.
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, 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:
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 and other applicable authoritative
pronouncements 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 entities 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 accompanying 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 31, 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. Report on Other Legal and Regulatory
Requirements:
7. As required by ''the Companies (Auditor''s Report) Order, 2003, as
amended by the Companies (Auditor''s Report) (Amendment) Order, 2004,
issued by the Central Government of India in terms of sub-section (4A)
of section 227 of the Companies Act,1956 (hereinafter referred to as
the "Order"), and on the basis of such checks of the books and records
of the Company as we considered appropriate and according to the
information and explanations given to us, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the 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.
d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e) On the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub- section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO THE AUDITORS'' REPORT
[Referred to in paragraph 7 of the Auditors'' Report of even date to the
members of Warren Tea Limited on the financial statements for the year
ended 31st March 2013]
1. In respect of fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) The fixed assets were physically verified during the year by the
Management in a phased programme which in our opinion provides for
physical verification of all the fixed assets at reasonable intervals.
According to the information and explanations given to us, no material
discrepancies were noticed on such verification.
(c) In our opinion and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
of by the Company during the year.
2. In respect of its inventories:
(a) As explained to us, the inventory of the Company (excluding stocks
with third parties) has been physically verified during the year by the
management. In respect of stock lying with third parties, those have
substantially been confirmed by them. In our opinion the frequency of
such verification is reasonable.
(b) In our opinion, and according to information and explanations given
to us, the procedures of physical verification of inventory followed by
the Management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) In our opinion, and according to information and explanations given
to us, the Company has maintained proper records of its inventories and
no material discrepancies were noticed on physical verification.
3. (a) The Company has not granted any loans, secured or unsecured, to
companies, firms or
other parties covered in the register maintained under section 301 of
the Act.
In view of the above the clauses (b), (c), (d) of the Paragraph 4(iii)
of the said order are not applicable to the Company.
(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 Act.
In view of the above the clauses (f) & (g) of paragraph 4(iii) of the
Order are not applicable.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to the purchase of inventory, fixed assets and for the sale of the
goods and services. Further, on the basis of our examination of the
books and records of the Company, and according to the information and
explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control system.
5. (a) According to the information and explanations given to us, we
are of the opinion that the particulars of all contracts or
arrangements referred to in Section 301 that need to be entered in the
register maintained under the said section have been so entered.
(b) None of the transactions made in pursuance of such contracts or
arrangements exceeded the value Rs.5 Lakhs in respect of any one such
party in the financial year.
6. The Company has not accepted any deposits from the public within
the meaning of Sections 58A and 58AA of the Act and the rules framed
there under.
7. In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the cost records maintained by the Company
relating to Tea 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. We have, however,
not made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
9. (a) According to the information and explanations given to us and
the records of the Company examined by us, in our opinion, the Company
has been regular in depositing the undisputed statutory dues including
Provident Fund, Investor Education and Protection Fund, Income-tax,
Sales-tax, Wealth tax, Service tax, Customs duty, Excise duty, Cess and
other material statutory dues as applicable, with the appropriate
authorities.
(b) According to the information and explanation given to us and the
records of the Company examined by us, the particulars of dues of
Income-Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise
duty/Cess as at 31st March,2013 which have not been deposited on
account of Dispute are as follows:
Name of the Nature of Dues Amount
Involved Period to Forum where
Statute (Rs.inLacs) which the Dispute is
Pending
amount
relates
Income Tax Income Tax 5.33 1997-98 Commissioner of
Act 1961 97.48 2002-03 Income Tax
(Appeals)
22.89 2008-09
261.35 2009-10
105.98 2010-11
Income Tax 3.13 1987-88 Income Tax
Appellate
2.06 1984-85 Tribunal
Assam Agricultural 4169.32 1986-87 to
Agricultural Income Tax 1998-99, Gauhati High
Court
Income Tax 2000-01
Act, 1939
Sales
Tax Act Assam General 67.48 1993-94, Deputy
Commissioner
1965 Sales Tax& 1997-98 of Taxes-Assam
Central Sales
Tax
Assam General 5.86 1996-97 to Commissioner of
Sales Tax & 1997-98, Taxes-Assam
Central
Sales Tax 2004-05 &
2007-08
Assam General 19.92 2003-04, Gauhati High
Court
Sales Tax & 1996-97
Central Sales
Tax
Sales Tax 15.62 2007-08 Appellate and
Revisionary
Board, West
Bengal
Assam Land Land Revenue
Tax 28.33 2003-04 to Additional
Deputy
Revenue 2007-08 Commissioner
Reassessment
Act, 1936
10. The Company does not have accumulated losses as at 31st March 2013
and it has not incurred any cash losses in the financial year ended on
that date or in the immediately preceding financial year.
11. According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of dues to any banks at the Balance Sheet date. The
Company had neither any outstanding debenture nor loan from any
financial institution nor has it issued any debenture during the year.
12. According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities. Therefore
the provisions of clause 4(xii) of the Order are not applicable to the
company.
13. In our opinion, the provisions of any special statute applicable
to chit fund/ nidhi / mutual benefit fund/societies are not applicable
to the Company. Therefore the provisions of clause 4(xiii) of the Order
are not applicable to the company.
14. In our opinion and according to the information and explanations
given to us, the Company is not a dealer or trader in shares,
securities, debentures and other investments. Therefore the provisions
of clause 4(xiv) of the Order are not applicable to the company.
15. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions. Accordingly, the
provisions of clause (xv) of Paragraph 4 of the Order are not
applicable to the Company.
16. The Company has not taken any term loan during the year. Therefore
the provisions of clause 4(xvi) of the Order are not applicable to the
company.
17. On the basis of an overall examination of the Balance Sheet of the
Company, in our opinion and according to the information and
explanations given to us, there are no funds raised on a short-term
basis which have been used for long-term investment. Therefore the
provisions of clause 4(xvii) of the Order are not applicable to the
company.
18. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act during the year. Therefore the provisions of clause
4(xviii) of the Order are not applicable to the company.
19. The Company has not issued any debentures and accordingly the
question of creation of securities in this regard does not arise.
Therefore the provisions of clause 4(xix) of the Order are not
applicable to the company.
20. The Company has not raised any money from public issue during the
year. Therefore the provisions of clause 4(xx) of the Order are not
applicable to the company.
21. During the course of our examination of the books and records of
the Company, carried out in accordance with the Generally Accepted
Auditing Practices in India, and according to the information and
explanations given to us, we have neither come across any instances of
material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of such case by the management.
For B.M.Chatrath & Co.
Chartered Accountants
Firm Registration Number: 301011E
A.Chatrath
Partner
Kolkata, 14th March, 2014 Membership Number 52975
Mar 31, 2012
1) We have audited the attached Balance Sheet of Warren Tea Limited
("the Company"), as at 31st March 2012, and the related Statement
of Profit and Loss and Cash Flow Statement for the year ended on that
date annexed thereto, 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 the 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 from material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3) As required by the Companies (Auditor''s Report) Order, 2003, as
amended by the Companies (Auditor''s Report) (Amendment) Order, 2004,
(together the "Order"), 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 considered appropriate and according
to the information and explanations given to us, we give in the
Annexure a statement on the matters specified in paragraphs 4 and 5 of
the said Order.
4) The Board of Directors have approved a scheme of Arrangement for
demerger of seven of its tea estates with effect from 1st April, 2011.
Pending necessary approval the working results of the seven gardens,
proposed to be demerged, are included in the attached financial
statement.
5) Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
5.1) 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;
5.2) 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;
5.3) 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;
5.4) 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 (3C) of Section 211 of
the Act;
5.5) On the basis of written representations received from the
directors as on 31st March 2012 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March 2012 from being appointed as a director in terms of Section
274 (1) (g) of the Act;
5.6) In our opinion and to the best of our information and according to
the explanations given to us the said accounts read together with the
notes thereon and attached thereto give, the information required by
the Act in the manner except for the non- ascertainment and
non-disclosure of value of green leaf consumed as indicated in Note no.
25 of the financial statements and read with para 4 above and also 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 31st March 2012
(ii) in the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
ANNEXURE TO THE AUDITORS'' REPORT
[Referred to in paragraph 3 of the Auditors'' Report of even date to the
members of Warren Tea Limited on the financial statements for the year
ended 31st March 2012]
1. In respect of fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) The fixed assets were physically verified during the year by the
management which in our opinion provides for physical verification of
all the fixed assets at reasonable intervals. According to the
information and explanations given to us, no material discrepancies
were noticed on such verification.
(c) In our opinion and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
of by the Company during the year.
2. In respect of its inventories:
(a) As explained to us, the inventory of the Company (excluding stocks
with third parties) has been physically verified during the year by the
management. In respect of stock lying with third parties, those have
substantially been confirmed by them. In our opinion the frequency of
such verification is reasonable.
(b) In our opinion, and according to information and explanations given
to us, the procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) In our opinion, and according to information and explanations given
to us, the Company has maintained proper records of its inventories and
no material discrepancies were noticed on physical verification.
3. (a) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under section 301 of the Act.
(b) The Company has not taken any loans, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under section 301 of the Act.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to the purchase of inventory, fixed assets and for the sale of the
goods and services. Further, on the basis of our examination of the
books and records of the Company, and according to the information and
explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control system.
5. In respect of contracts or arrangements entered in the Register
maintained in pursuance of Section 301 of the Act, to the best of our
knowledge and belief and according to the information and explanations
given to us:
(a) The particulars of contracts or arrangements referred to in Section
301 that needed to be entered in the Register maintained under the said
Section have been so entered.
(b) Where transaction exceeds the value of Rs. 5 Lacs in respect of
each party during the year, the transactions have been made at prices
which appear reasonable as per information available with the Company.
6. The Company has not accepted any deposits from the public within the
meaning of Sections 58A and 58AA of the Act and the rules framed there
under.
7. In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the cost records maintained by the Company
relating to Tea 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
cost records have been maintained. We have, however, not made a
detailed examination of the cost records with a view to determine
whether they are accurate or complete.
9. According to the information and explanations given to us and the
records of the Company examined by us:
(a) The Company has been generally regular in depositing the undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Employees'' State Insurance, Income-tax, Sales-tax,
Wealth tax, Service tax, Customs duty, Excise duty, Cess and other
material statutory dues as applicable, with the appropriate authorities
except for payment of provident fund liability on enhanced food
concession amounting to Rs. 41.07 lacs, which has since been paid.
[Refer note No.25(18)].
(b) There were no arrears in respect of the aforesaid dues for a period
of more than six months from the date they became payable except as
mentioned in above para, provident fund liability on enhanced food
concession amounting to Rs.39.75 lacs which is due for more than six
months.
(c) The particulars of dues of Income-tax, Sales-tax, Wealth tax,
Service tax, Customs duty, Excise duty and Cess as applicable as at
31st March 2012 which have not been deposited on account of a dispute
are as follows:
Name of the Nature of Dues Amount Involved
Statute (in Lacs)
Income Tax Income Tax 96.34
Act 1961
25.58
Income Tax 3.13
2.06
Assam Agricultural 623.63
Agricultural Income Tax
Income Tax Agricultural 4169.32
Act, 1939 Income Tax (Net of payment
(Including the under protest
impact of Rs.685)
Rs. 623.63 as above)
Sales Tax Act Assam General 108.57
1965 Sales Tax & (Net of payment
Central Sales Tax under protest
Rs. 10.57)
Assam General 149.17
Sales Tax & (Net of payment
Central Sales Tax under protest
Rs. 2.51)
46.79
(Net of payment
under protest
Rs.17.61)
Assam Land Land Revenue Tax 55.60
Revenue
Reassessment
Act, 1936
Name of the Period to Forum where
Statute which the Dispute is Pending
amount relates
Income Tax Act 1961 2002-03 Commissioner of
2007-08 IncomeTax (Appeals)
1987-88 Income Tax Appellate
1984-85 Tribunal
Assam Agricultural
Income Tax
Act, 1939 1990-91 Deputy Commissioner
to 1993-94 of Taxes (Appeals)
1986-87 to Gauhati High Court
1998-99,2000-01
Sales Tax Act 1965 1990-91 to Deputy Commissioner
1994-95, of Taxes-Assam
1996-97 to 1998-99
1997-98 to Commissioner of
1998-99, Taxes-Assam
2004-05 to 2006-07
1990-91, Gauhati High Court
1997-98 to 1998-99,
2004-05
Assam Land Revenue
Reassessment
Act,1936 2003-04 to Additional Deputy
2007-08 Commissioner
10. The Company does not have accumulated losses as at 31st March 2012
and it has not incurred any cash losses in the financial year ended on
that date or in the immediately preceding financial year.
11. According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of dues to any banks at the Balance Sheet date. The
Company had neither any outstanding debenture nor loan from any
financial institution nor has it issued any debenture during the year.
12. According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
13. In our opinion, the provisions of any special statute applicable to
chit fund/ nidhi / mutual benefit fund/societies are not applicable to
the Company.
14. In our opinion and according to the information and explanations
given to us, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
15. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions. Accordingly, the
provisions of clause (xv) of Paragraph 4 of the Order are not
applicable to the Company.
16. The Company has not taken any term loan during the year.
17. On the basis of an overall examination of the Balance Sheet of the
Company, in our opinion and according to the information and
explanations given to us, there are no funds raised on a short-term
basis which have been used for long-term investment.
18. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act during the year.
19. The Company has not issued any debentures and accordingly the
question of creation of securities in this regard does not arise.
20. The Company has not raised any money from public issue during the
year.
21. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instances of
material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of such case by the management.
For Singhi & Co. For B.M. Chatrath & Co.
Firm Registration Firm Registration
Number: 302049E Number:301011E
Chartered Accountants Chartered Accountants
Pradeep Kumar Singhi A. Chatrath
Partner Partner
Kolkata,
30th January, 2013 Membership Number:
50773 Membership Number:
52975
Mar 31, 2011
1. We have audited the attached Balance Sheet of Warren Tea Limited
(the "Company") as at 31st March, 2011 and the related Profit and Loss
Account and Cash Flow Statement for the year ended on that date annexed
thereto, 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. The report on the audit of Travels Division of the Company by
Messrs. B. M. Chatrath & Co. under Section 228 of the Companies Act,
1956 of India, (the 'Act') has been forwarded to us as required by
clause (c) of sub-section (3) of that Section which has been considered
in preparing our report.
3. We conducted our audit in accordance with the 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 management, as well as, evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
4. As required by the Companies (Auditor's Report) Order, 2003 as
amended by the Companies (Auditor's Report) (Amendment) Order, 2004
(together 'the Order') issued by the Central Government of India in
terms of sub-section (4A) of Section 227 of the Act and on the basis of
such checks of the books and records of the Company as we considered
appropriate and according to the information and explanations given to
us, we further report that :
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation, of its fixed
assets.
(b) The fixed assets of the Company have been physically verified by
the Management during the year and no material discrepancies between
the book records and the physical inventory have been noticed. In our
opinion the frequency of verification is reasonable.
(c) In our opinion and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
of by the Company during the year.
(ii) (a) The inventory (excluding stocks with third parties), has been
physically verified by the Management during the year. In respect of
inventory lying with third parties, these have been confirmed by them.
In our opinion, the frequency of verification is reasonable.
(b) In our opinion, the procedures of physical verification of
inventory followed by the Management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) On the basis of our examination of the inventory records, in our
opinion, the Company has maintained proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
(iii) (a) The Company has not granted any loans, secured or unsecured,
to companies, firms or other parties covered in the register maintained
under Section 301 of the Act.
(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 Act.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory, fixed assets and for the sale of goods and
services. Further, on the basis of our examination of the books and
records of the Company and according to the information and
explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control system.
(v) (a) In our opinion and according to the information and
explanations given to us, the particulars of contracts or arrangements
referred to in Section 301 of the Act have been entered in the register
required to be maintained under that Section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contract or
arrangements and exceeding the value of Rupees Five Lakhs in respect of
any party during the year have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
(vi) The Company has not accepted any deposits from the public within
the meaning of Sections 58A and 58AA of the Act and the rules framed
thereunder.
(vii) In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
Company in respect of Tea, where, pursuant to the Rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under Clause (d) of sub-section (1) of Section 209 of the
Act and are of the opinion that prima facie, the prescribed accounts
and records have been made and maintained. We have not, however, made a
detailed examination of the records with a view to determine whether
they are accurate or complete.
(ix) (a) According to the information and explanations given to us and
the records of the Company examined by us, in our opinion, the Company
has generally been regular in depositing during the year the undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Income Tax, Sales Tax, Wealth Tax, Service Tax,
Customs Duty, Excise Duty, Cess and other material statutory dues as
applicable with the appropriate authorities.
As explained by the Management, the Employees' State Insurance Scheme
is not applicable to the Company.
(b) According to the information and explanations given to us and the
records of the Company examined by us, as at 31st March, 2011, there
have been no dues in respect of Customs Duty, Wealth Tax, Service Tax,
Excise Duty and Cess which have not been deposited on account of
dispute other than certain disputed Income Tax and Sales Tax dues, in
respect of which amounts involved and forums at which dispute is
pending have been indicated in Note 10 on Schedule 18 to the Accounts.
(x) The Company has no accumulated losses as at 31st March, 2011, and
it has not incurred any cash losses in the financial year ended on that
date or in the immediately preceding financial year.
(xi) According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of dues to any bank as at the Balance Sheet date. The
Company has neither issued any debenture nor has outstanding loan from
any financial institution.
(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 provisions of any special statute applicable to chit
fund/nidhi/mutual benefit fund/societies are not applicable to the
Company.
(xiv) In our opinion, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
(xv) In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions during the year.
(xvi) In our opinion and according to the information and explanations
given to us, on an overall basis, the term loans have been applied for
the purposes for which they were obtained.
(xvii) On the basis of an overall examination of the Balance Sheet of
the Company, in our opinion and according to the information and
explanations given to us, there are no funds raised on a short-term
basis which 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 during the year.
(xix) The Company has not issued any debenture and accordingly the
question of creation of securities in respect of debentures does not
arise.
(xx) The Company has not raised any money by public issue during the
year.
(xxi) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the management.
5. Further to our comments in paragraph 4 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 appears from our examination of
those books;
(c) The Balance Sheet, the 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, the Profit and Loss Account and
the Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of Section 211 of
the Act;
(e) On the basis of written representations received from the
directors, as on 31st March, 2011 and taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2011
from being appointed as a director 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 financial statements together
with the notes thereon and attached thereto give in the prescribed
manner except for the non-ascertainment and non disclosure of the value
of Green Leaf consumed as indicated in the Note 14(a)(viii) on Schedule
18 to the financial statements, the information required by the Act,
and give a true and fair view in conformity with the accounting
principles generally accepted in India :
(i) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2011;
(ii) In the case of the Profit and Loss Account, 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.
For Price Waterhouse
Firm Registration Number à 301112E
Chartered Accountants
(P. Law)
Kolkata Partner
30th May, 2011 Membership Number 51790
Mar 31, 2010
1. We have audited the attached Balance Sheet of Warren Tea Limited
(the "Company") as at 31st March, 2010 and the related Profit and Loss
Account and Cash Flow Statement for the year ended on that date annexed
thereto, which we have signed under reference to this report. These
financial statements are the responsibility of the Companys
Management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. The report on the audit of Travels Division of the Company by
Messrs. B.M.Chatrath & Co. under Section 228 of the Companies Act,1956
of India,(the Act) has been forwarded to us as required by clause(c)
of sub-section (3) of that Section which has been considered in
preparing our report.
3. We conducted our audit in accordance with the 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 management, as well as, evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
4. As required by the Companies (Auditors Report) Order, 2003 as
amended by the Companies (Auditors Report)(Amendment) Order, 2004
(together the Order), issued by the Central Government of India in
terms of sub-section (4A) of Section 227 of the Act and on the basis of
such checks of the books and records of the Company as we considered
appropriate and according to the information and explanations given to
us, we further 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 of the Company have been physically verified by
the Management during the year and no material discrepancies between
the book records and the physical inventory have been noticed. In our
opinion the frequency of verification is reasonable.
(c) In our opinion and according to the information and explanations
given to us, a substantial part of fixed asseis has not been disposed
of by the Company during the year.
ii) (a) The inventory (excluding stocks with third parties),has been
physically verified by the Management during the year. In respect of
inventory lying with third parties, these have been confirmed by them.
In our opinion, the frequency of verification is reasorobe.
(b) In our opinion, the procedures of physical verification of
inventory followed by the Management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
4. (ii) (c) On the basis of our examination of the inventory records,
in our opinion, the Company has maintained proper records of inventory.
The discrepancies noticed on physical verification of inventory as
compared to book records were not material.
(iii) (a) The Company has not granted any loans, secured or unsecured,
to companies, firms or other parties covered in the register maintained
under Section 301 of the Act.
(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 Act.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory , fixed assets and for the sale of goods and
services. Further, on the basis of our examination of the books and
records of the Company and according to the information and
explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control system.
(v) (a) In our opinion and according to the information and
explanations given to us, the particulars of contracts or arrangements
referred to in Section 301 of the Act have been entered in the register
required to be maintained under that Section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements and exceeding the value of Rupees Five Lakhs in respect of
any party during the year have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
(vi) The Company has not accepted any deposits from the public within
the meaning of Sections 58A and 58AA of the Act and the rules framed
thereunder.
(vii) In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
Company in respect of Tea, where, pursuant to the Rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under Clause (d) of sub-section (1) of Section 209 of the
Act and are of the opinion that prima facie, the prescribed accounts
and records have been made and maintained. We have not, however, made a
detailed examination of the records with a view to determine whether
they are accurate or complete.
(ix) (a) According to the information and explanations given to us and
the records of the Company examined by us, in our opinion, the Company
has generally been regular in depositing during the year the undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Income Tax, Sales Tax, Wealth Tax, Service Tax,
Customs Duty, Excise Duty, Cess and other material statutory dues as
applicable with the appropriate authorities.
As explained by the Management,the Employees State Insurance Scheme is
not applicable to the Company.
4. (ix) (b) According to the information and explanations given to us
and the records of the Company examined by us, as at 31st March, 2010,
there have been no dues in respect of Customs Duty, Wealth Tax, Service
Tax .Excise Duty and Cess which have not been deposited on account of
dispute other than certain disputed Income Tax and Sales Tax dues, in
respect of which amounts involved and forums at which dispute is
pending have been indicated in Note 10 on Schedule 18 to the Accounts.
(x) The Company has no accumulated losses as at 31st March, 2010, and
it has not incurred any cash losses in the financial year ended on that
date or in the immediately preceding financial year.
(xi) According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of dues to any bank as at the Balance Sheet date. The
Company has neither issued any debenture nor has outstanding loan from
any financial institution.
(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 provisions of any special statute applicable to chit
fund/nidhi/mutual benefit fund societies are not applicable to the
Company.
(xiv) In our opinion, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
(xv) In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions during the year.
(xvi) In our opinion and according to the information and explanations
given to us, on an overall basis, the term loans have been applied for
the purposes for which they were obtained.
(xvii) On the basis of an overall examination of the balance sheet of
the Company, in our opinion and according to the information and
explanations given to us, there are no funds raised on a short-term
basis which 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 during the year.
(xix) The Company has not issued any debenture and accordingly the
question of creation of securities in respect of debentures does not
arise.
(xx) The Company has not raised any money by public issue during the
year.
(xxi) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the Management.
5.. Further to our comments in paragraph 4 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 appears from our examination of
those books;
(c) The Balance Sheet, the 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, the Profit and Loss Account and
the Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of Section 211 of
the Act;
(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, none of the directors 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 financial statements together
with the notes thereon and attached thereto give,in the prescribed
manner, subject to Note 14(a)(viii) on Schedule 18 to Accounts
regarding non-ascertainment of value of Green Leaf consumed ,the
information required by the Act and give a true and fair view in
conformity with the accounting principles generally accepted in India:
(i) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010;
(ii) In the case of the Profit and Loss Account, 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.
For Price Waterhouse
Firm Registration Number-301112E
Chartered Accountants
(P.LAW)
Partner
Kolkata, 27th May, 2010 Membership Number-51790.