hanuman tea co ltd Auditors report

HANUMAN TEA COMPANY LIMITED ANNUAL REPORT 2004-2005 AUDITORS REPORT TO THE SHAREHOLDERS OF HANUMAN TEA COMPANY LIMITED We have audited the attached Balance Sheet of M/S. HANUMAN TEA COMPANY LIMITED as at 31st March, 2005 and the annexed profit & Loss Account and cash flow statement for the Year ended on that date, annexed thereto, and further report that : 1A. These financial statement are the responsibility of the Companys management Our responsibility is to express an opinion on these financial statement based on our audit 1B. We have conducted our audit in accordance with auditing standards generally accepted in India. These 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 estimated made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 2. As required by the Companies (Auditors Report) Order, 2003 issued by the Central Government of India in terms of Sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose in the annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order. 3. (i) The accounts of the Company have been prepared on the basis of going concern assumption. However, in view of the fact that the company has incurred losses to the tune of Rs. 499.57 Lacs, the company is not in a position to honour its commitments towards various secured and unsecured liabilities including its borrowings from its various financial and banking institution. We are unable to express our opinion on the ability of the company to continue as a going concern in this regard. (ii) Attention is invited to Clause X of CARO, 1998 regarding the references made by Company before BIFR for the Annual Report for the year ended 31/3/2003. BIFR has registered the second Reference vide Case No. 382/2003. Further reference is made to BIFR for the Annual Report for the year ended 31/3/04. BIFR registered the Third reference Vide Case No. 358/2004. 4. Further to our comments in the annexure referred to above and given in Point No. 3 aforesaid and subject to Note No. 4 of schedule - 18 relating to notes on Accounts, 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 accounts as required by law have been kept by the Company so far as appears from our examination of those books maintained. c) The Balance Sheet and Profit & Loss Account dealt with by in this report are in agreement with the books of account. d) In our opinion, the Balance Sheet and Profit & Loss Account dealt with by this report comply with the accounting standards referred to in Sub- section (3C) of section 211 of the Companies Act, 1956. e) On the basis of written representations received from the Directors, as on 31st March 2005, and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on 31st March, 2005 from appointed as a Director in terms of clause (g) of Sub-section (1) of section 274 of the Companies Act, 1956. f) In our opinion and to the best of our information and according to explanation given to us, the said accounts 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 acting principle generally accepted in India - i) In the case of Balance Sheet, of the state of Affairs of the Company as at 31st March, 2005, and ii) In the case of Profit & Loss Account of the loss of the Company for the year ended on that date. FOR R.K. BHATTER & COMPANY Place : Kolkata Chartered Accountants ANNEXURE TO THE AUDITORS REPORT Annexure referred to in paragraph 3 of the Auditors Report of even date to the Member of HANUMAN TEA COMPANY LIMITED on the accounts for the year ended 31st March, 2005; (i) [a] The company has not maintained proper records showing full particulars including quantitative details and situations of Fixed Assets. [b] As per information and explanations given to us, there is a phased programme of physical verification or fixed assets adopted by the Company and no material discrepancies were noticed on such verification. In our opinion, the frequency of verifications reasonable, having regard to the size of the Company and nature of its business. (ii) [a] As per the information furnished the inventories have been physically verified by the management during the year. In our opinion the frequency of verification is reasonable. [b] In our opinion, the procedure of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and nature of the business. [c] On the basis of our examination of inventory records, in our opinion, the Company is maintaining proper record inventory. The discrepanies noticed on physical verification of Inventory as compared to book records were not material. (iii) The Company has neither granted nor taken any loan, secured or unsecured, to/from Company, firms or other parties covered in the register maintained under Section 301 of the Act. As the company has not granted / taken any loans, secured or unsecured, to / from companies firms etc., listed in the register maintained under section 301 of the Act, paragraph 3(b), 3(c) and 3(d) of the Order, are not applicable. (iv) In our opinion, and according to information and explanations to us, there are adequate internal control procedure commensurate with the size of the Company and the nature of its business with regard to purchase of inventory and fixed assets and for the sale of goods. During the course of our audit, no major weakness has been noticed in the internal control. (v) Based on the audit procedure applied by us. and according to the information and explanation provide by the management, we are of the opinion that during the year, there has been no transaction that needed to be entered to the register maintained under section 301 of the Companies Act, 1956. Accordingly, Clause 4 (v)(b) of the said Order is not applicable. (vi) The Company has not accepted any deposit from the public within the meaning of the provisions of Section 58A and 58AA of the Companies Act, 1956. (vii) In our opinion, the Company has an internal audit system commensurate with the size of the Company and the nature of its business. (viii) The Central Government has prescribed maintenance of the cost records under section 209(1) (d) of the Companies Act, 1956. In respect of one of the product of the Company. We have broadly reviewed the accounts and records of the Company in this connection 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. (ix) According to the information and explanations given to us and records examined by us, the Company is regular in depositing, with the appropriate authorities, undisputed statutory dues including income tax, wealth tax, custom duty, cess, and other dues. However during the year, there are delays in depositing, with the appropriate authorities, undisputed statutory dues in respect of Provident Fund employees state Insurance, excise duty dues. According to the information and explanations given to us, no undisputed arrears of the statutory dues were outstanding as at 31st March, 2005, for a period of more than six months from the date they become payable. (x) The accumulated losses has exceed the net worth of the Company as on 31.03.2005 as such the Company has become a sick industrial Company within the meaning of Section 3(1)(O) of the sick Industrial Companies (special Provisions) Act, 1985. For the year ended 31/3/2003 the Company had made applicable to BIFR, BIFR has registered vide case no. 382/2003. Further reference is made to BIFR for the Annual Report for the year ended 31/3/2004. BIFR has registered the third vide Case No. 358/2004. (xi) According to the records of the Company examined by us and information and explanation given to us, the Company as defaulted In repayment of the dues to financial Institutions and bank as at the Balance Sheet date. (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 share, securities, debentures and other investments. (xv) In our opinion, and according to the explanations and information 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 explanations and information given to us, on an overall basis, the term loans have not been applied. (xvii) On the basis of an overall examination of the balance sheet of the Company, in our opinion and according to the information and explanation given to us, there are no funds rise on short term basis, which have been used for long term investment. (xviii) The company has not made any preferential allotment of shares during the year. (xix) There are no secured debentures outstanding as at the year end. (xx) The Company has not raised any money by public issues during the year. (xxi) To the best of our knowledge and belief and according to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the course of our audit. For and on behalf of R.K. SHATTER & COMPANY Kolkata Chartered Accountants 11th August, 2005 (R.K. Bhatter) Proprietor