INDEPENDENT AUDITORS REPORT
ON CONSOLIDATED FINANCIAL STATEMENTS TO THE SHAREHOLDERS OF DTC INDIA LIMITED, DEHRA
DUN
Report on the Financial Statements
We have audited the accompanying concolidated financial statements of DTC INDIA
LIMITED, Dehra Dun as at 31st. March 2014 which comprises of the Balance Sheet, Profit
& Loss Account and Cash Flow Statement of the Company for the year then ended in which
are incorporated the returns of the Companys Tea Estates at Arcadia and Hurbanswala
audited by us, and the significant accounting policies and other explanatory information.
Managements Responsibility for the Financial Statements
The Companys Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position, consolidated
financial performance and cash flows of the Company in accordance with the accounting
principles generally accepted in India. This responsibility includes the design,
implementation and maintenance of internal control relevant to the preparation and
presentation of the financial statement that give true and fair view and are free from
material misstatement whether due to fraud or error.
Auditors Responsibility
Our responsibility is to express an opinion on these financial statements based on our
audit. We conducted our audit in accordance with the standards on auditing issued by the
Institute of Chartered Accountants of India. Those standards require that we comply with
ethical requirements and plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free from material misstatement. An audit involves
performing procedures to obtain audit evidence about the amounts and the disclosures in
the financial statements. The procedures selected depend on the auditors judgement,
including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessment, the auditors
considers internal control relevant to the Companys preparation and presentation 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 the effectiveness of the Companys internal control. An audit also includes
evaluating the appropriateness of the accounting policies used and the reasonableness of
the accounting estimates made by the Management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid financial statements give a true and fair view in conformity
with the accounting principles generally accepted in India:
(a) in the case of Balance Sheet, of the State of Affairs of the Company as at 31st.
March, 2014 and
(b) in the case of the Statement of Profit & Loss Account, of the Profit of the
Company for the year ended on that date.
Report Other Legal and Regulatory requirements
1. As required by the Companies (Auditors Report) Order 2003 issued by the Central
Government of India in terms of sub-section (4A) of Sec. 227 of the Act, we give a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by Sec. 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 audit;
b. In our opinion proper books of accounts as required by law have been kept by the
Company so far as appears from our examination of the books.
c. The Balance Sheet and the Profit & Loss Account and Cash Flow Statement dealt
with by this report are in agreement with the books of accounts.
d. 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 as per NOTE 13
thereto, give the information required by the Companies Act, 1956, in the manner so
required and give a true and fair view in conformity with the accounting principles
generally accepted in India
e. On the basis of written representation received from the Directors as on 31st.
March, 2014, and taken on record by the Board of Directors, none of the Directors is
disqualified as on 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.
|
For M/s P. N. Bahri & Co., |
|
Chartered Accountants, |
|
Firm Registration No.001091C |
| 10- Convent Road, Dehra Dun. |
[DINESH GUPTA] |
| Dated: 30th. May, 2014 |
Partner |
|
Membership No. 14605 |
ANNEXURE TO THE INDEPENDENT AUDITORS REPORT
1. In respect of its fixed assets:
a. The Fixed Assets Record of the Company are to be updated. Except Land and area under
Cultivation, Tea and Orchards, the fixed assets of the Company have been physically
verified during the year by the Management and no serious discrepancies between the books,
records and physical inventory have been noticed.
b. The fixed assets of the Company have not been re-valued during the year under
report.
c. In our opinion, the Company has not disposed of substantial part of fixed assets
during the year and the going concern status of the Company is not affected.
2. In respect of its Inventories:
a. Physical Verification has been carried out by the Management during the Current Year
in respect of finished goods, stores, spare parts and raw materials at all its locations
and the discrepancies have been adjusted in the books of account.
b. The procedure of physical verification of stocks and consumable stores followed by
the Management is reasonable and adequate in relation to the size of the Company and the
nature of its business.
c. In our opinion valuation of stocks of finished goods, stores and spare parts have
been fair and proper in accordance with the normally accepted accounting principles and is
on the same basis as in earlier years.
3. In respect of Loans & Advances:
a. The Company has not taken any loans from Companies, Firms or other parties listed in
the register maintained under section 301 of the Companies Act, 1956.
b. The Company is regular in repaying the principal amounts as stipulated and has been
regular in the payment of interest. The parties have repaid the principal amounts as
stipulated and have been regular in the payment of interest.
4. In our opinion and according to the information and explanations given to us, there
are adequate internal control procedures commensurate with the size of the Company and
nature of its business for purchase of stores, raw materials including components, plant
and machinery, equipment and other assets and for the sale of goods.
5. a. According to the information and explanations given to us, we are of the opinion
that the transactions that need to be entered into the register maintained under section
301 of the Companies Act, 1956 have been so entered.
b. As far as we have been able to ascertain and according to the information and
explanations given to us, the Company has not purchased and sold goods and materials and
services during the year in pursuance of contracts or arrangements entered in the register
maintained under section 301 of the Companies Act, 1956 and aggregating during the year to
Rs.50,000/- or more in respect of each party subject to Note no. 14.
6. a. According to the information and explanations given to us, no undisputed amounts
payable in respect of Income Tax, Wealth Tax, Trade Tax, Customs Duty and Excise Duty were
out standing as at 31st. March, 2013 for a period of more than six months from date they
became payable.
b. According to the records of the Company, Provident Fund dues have been regularly
deposited during the year with the appropriate authorities.
7. In our opinion, the accumulated losses of the company are not more than fifty
percent of its net worth in view of the Capital Reserve amount received in cash.
8. a. In our opinion and according to the information and explanations given to us, the
company has not defaulted in repayment of dues to a financial institution, bank or
debenture holders.
b. The Company has not accepted deposits from the public and therefore, the provisions
of Section 58A of the Companies Act, 1956 and Rules thereunder are not applicable to the
Company.
9. We are of the opinion that the company has maintained adequate records where the
company has granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
10. a. As explained to us, the Company has regular procedure for the determination of
unserviceable or damaged stores and raw materials.
b. There is no production of scrap or realisable by-product.
11. As far as we are aware, the Government has not prescribed any Cost Records Rules
under section 209 (1 )(d) which are applicable to the Company.
12. In our opinion the Company is not a chit fund or a nidhi / mutual benefit fund /
society. Therefore clause 4(xii) of the Companies (Auditors Report) Order 2003 is not
applicable to the Company.
13. The Company has maintained proper records of transactions and contracts in respect
of the trading in securities, debentures and other investments and timely entries have
been made therein. All shares, debentures and other investments have been held by the
Company in its own name.
14. The Company has not raised any new term loans during the year. The term loans
outstanding at the beginning of the year were applied for the purposes for which they were
raised
15. According to the information and explanations given to us, no personal expenses of
employees or Directors have been charged to revenue account other than those payable under
contractual obligations or in accordance with generally accepted business practice.
16. According to the information and explanation given to us, no fraud on or by the
company has been noticed or reported during the course of our audit.
17. The Company is not a Sick Industrial Company within the meaning of Clause (O) of
Subsection (1) of Section 3 of the Sick Industrial Companies (Special Provisions) Act,
1985.
18. The Company has not provided for liability for Income Tax on Interest on Additional
Compensation received, mentioned in Note no. 13 point no. 2:2.
|
For M/s P. N. Bahri & Co., |
|
Chartered Accountants, |
|
Firm Registration No.001091C |
| 10-Convent Road, Dehra Dun |
[DINESH GUPTA] |
| Dated : 30th. May, 2014 |
Partner |
|
Membership No. 14605 |
+91-9892691696
