INDEPENDENT AUDITORS
TO THE MEMBERS OF NORTH TUKVAR TEA COMPANY LIMITED
Report on the financial statements
We have audited the accompanying financial statements of NORTH TUKVAR TEA COMPANY
LIMITED, ("the Company"), which comprise the balance sheet as at 31st March
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.
Managements responsibility for the financial statements
Management is responsible for the preparation of these financial statements that give a
true and fair view of the financial position, financial performance and cash flows of the
company in accordance with the accounting principles generally accepted in India,
including 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.
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
disclosures in the financial statements. The procedures selected depend on the auditors
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 companys 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 companys internal control. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the explanations
given to us, the 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 31
March 2014
b. In the case of the statement of profit and loss, of the Loss 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.
Emphasis of Matter
In view of continued financial support from the Holding Company the accounts has been
prepared on going concern basis despite negative net worth, refer Note No.22(2)(vi).
Report on other legal and regulatory requirements
1. As required by the Companies (Auditors Report) Order, 2003, ("the order")
issued by the Central Government of India in terms of sub-section (4A) of section 227 of
the Companies Act, 1956, we give in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the order.
2. As required by Sec 227(3) of the Companies Act, we report that :
i) 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.
ii) 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 subject to Note 22(2)(iii)
regarding non-provision of Gratuity Liability.
iii) The Balance Sheet, statement of Profit & Loss and Cash Flow Statement dealt
with by this report are in agreement with the books of account.
iv) In our opinion, the Balance Sheet, statement of Profit & 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 Companies Act, 1956 except in respect of Note
22(2)(iii) regarding non provision of Gratuity Liability upto 31.03.2009 amounting to
Rs.96,67,749/-. Had the observation been considered, the Accumulated Losses and Provisions
as on 31.03.2014 would have been higher by Rs. 96,67,749/-. (Non compliance of Accounting
Standard 15 & Accounting Standard 1).
v) On the basis of written representations received from the Directors, as on 31st
March 2014 and taken on record by the Board of Directors, we report that none of the
directors is disqualified as on 31st March 2014 from being appointed as a director in
terms of Clause (g) of Sub-section (1) of Section 274 of the Companies Act, 1956.
|
For SALARPURIA JAJODIA & CO. |
|
Chartered Accountants |
|
(ICAI Registration No.302111E) |
| 7, C.R. Avenue |
SIDDHARTH JHAJHARIA |
| Kolkata - 700072 |
Partner |
| Dated, the 21st day of May, 2014. |
(M. No.058419) |
ANNEXURE TO THE AUDITORS REPORT
(Referred to in Paragraph (1) under Report on other legal and regulatory requirements
section of our report of even date)
On basis of such checks we consider appropriate and in terms of the information and
explanations given to us, we state that :-
i) In respect of its fixed assets :
(a) The Company has maintained proper records showing full particulars, including
quantitative details and situation of Fixed Assets.
(b) The fixed assets were physically verified during the year by the management in
accordance with a programme of verification, which in our opinion is adequate with
relation to size of the company and the nature of assets. According to the information
& explanations given to us, no material discrepancies were noticed on such
verification.
(c) There was no substantial disposal of Fixed Assets during the year, which would
effect the going concern of the Company.
ii) In respect of its inventories :
(a) As explained to us, inventories were physically verified during the year by the
management at reasonable intervals.
(b) In our opinion and according to the information and explanations given to us, the
procedures of physical verification of inventories followed by the management were
reasonable and adequate in relation to the size of the Company and the nature of its
business.
(c) In our opinion and according to the information and explanations given to us, the
Company has maintained proper records of its inventories and no material discrepancies
were noticed on physical verification.
iii) (a) The Company has not granted any loan, secured or unsecured to companies, firms
or other parties listed
in register maintained under section 301 of the Companies Act, 1956. The comments on
clause iii (b) to iii (d) does not arise.
(b) The Company has taken unsecured loan from a company listed in the register
maintained under section 301 of the Companies Act, 1956 against whom the maximum amount
outstanding during the year was Rs.26.45 lacs and the year end balance of such loan
amounted to Rs.26.45 lacs.
(c) The terms and conditions of loan taken by the Company are prima facie, not
prejudicial to the interest of the company.
(d) As informed, this being current account so the question of payment of principal
amount does not arise.
iv) In our opinion and according to the information and explanations given to us, there
are adequate internal control procedures commensurate with the size of the Company and the
nature of its business for the purchase of inventory, fixed assets and for the sale of
goods and services. During the course of our audit, no major weakness has been noticed in
the internal control system.
v) In respect of particulars of contracts or arrangements that need to be entered in
the register maintained in pursuance of section 301 of the Companies Act, 1956;
(a) To the best of our knowledge and belief and according to the information and
explanations given to us, transactions that needed to be entered into the register have
been so entered.
(b) According to the information and explanations given to us, where each of such
transactions is in excess of Rs.5 lakhs in respect of any party, the transactions have
been made at prices which are prima facie reasonable having regard to the prevailing
market prices at the relevant time.
vi) According to the information and explanations given to us, the Company has not
accepted any deposits from public within the meaning of section 58A and 58AA of the
Companies Act, 1956 and rules framed thereunder.
vii) In our opinion, the internal audit system carried out during the year have been
commensurate with the size of the Company and the nature of its business.
viii) We have broadly reviewed the books of accounts and records maintained by the
Company relating to Plantation, pursuant to the order made by the Central Government for
the maintenance of cost records under section 209 (1)(d) of the Companies Act, 1956
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 records with a
view to determining whether they are accurate or complete.
ix) In respect of Statutory and other dues :
(a) According to information and explanation given to us and the records of the Company
examined by us, in our opinion, the Company is generally regular in depositing the
undisputed statutory dues including provident fund, service tax, excise duty, cess and
other material statutory dues as applicable with the appropriate authorities during the
year.
(b) According to the information and explanations given to us, no undisputed amounts
payable by the Company in respect of Provident Fund, Investor Education and Protection
Fund, Employees State Insurance, Sales Tax, Income Tax, Wealth Tax, Service Tax, Custom
Duty, Excise Duty, Cess and other material statutory dues were outstanding at the year end
for the period of more than six months from the date they become payable.
(c) The dues of Sales Tax, Income Tax, Custom Duty, Wealth Tax, Service Tax, Excise
Duty, Cess, etc. which has not been deposited on account of any disputes are as follows :
| Nature of Tax |
Amount involved |
Related Year |
Forum (where it is pending) |
| Sales Tax |
Rs. 0.43 lacs |
1999-00 |
Assistant Commissioner |
| Sales Tax |
Rs. 1.25 lacs |
2002-03 |
West Bengal Taxation Tribunal |
| Sales Tax |
Rs.12.73 lacs |
2005-06 |
Joint Commissioner |
| Sales Tax |
Rs.22.08 lacs |
2007-08 |
West Bengal Appellate Board |
| Sales Tax |
Rs. 6.49 lacs |
2008-09 |
West Bengal Appellate Board |
| Sales Tax |
Rs. 0.34 lacs |
2009-10 |
West Bengal Appellate Board |
x) The Companys accumulated losses as at the end of the year are more than 100% of its
networth and the Company has incurred cash loss during the current year but has cash
profits in the immediately preceding financial year.
xi) Based on our audit procedures and on the basis of information and explanation given
by the management we are of the opinion that the Company has not defaulted in repayment of
dues to financial institutions or banks.
xii) According to the information and explanations given to us, the Company has not
granted loans 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
benefits 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) 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.
xvi) There is no term loan taken by the Company. Accordingly clause (xvi) is not
applicable to the Company.
xvii) According to the records examined by us and the information and explanations
given to us, on an overall basis, funds raised on short term basis have, prima facie, not
been used during the year 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 Companies Act, 1956,
during the year. Accordingly clause (xviii) is not applicable to the Company.
xix) There were no debentures issued by the Company and hence question of creating
security does not arise.
xx) The Company has not raised any money by public issue during the year.
xxi) Based upon the audit procedures performed and information and explanations given
by the management, we report that no fraud on or by the company has been noticed or
reported during the course of our audit.
|
For SALARPURIA JAJODIA & CO. |
|
Chartered Accountants |
|
(ICAI Registration No.302111E) |
| 7, C.R. Avenue |
SIDDHARTH JHAJHARIA |
| Kolkata - 700072 |
Partner |
| Dated, the 21st day of May, 2014. |
(M. No.058419) |
+91-9892691696
