To the Members of JAMES WARREN TEA LIMITED
Report on the Audit of the Financial Statements Opinion
We have audited the accompanying financial statements of JAMES WARREN TEA LIMITED (‘the
Company), which comprise the Balance Sheet as at 31st March 2023, the
Statement of Profit Comprehensive Income), the Cash Flow Statement and the Statement of
Changes in Equity for the year then ended and a summary of the significant accounting
policies and other In our opinion and to the best of our information and according to the
explanations financial statements give the information required and give a true and fair
view in conformity with the accounting principles generally accepted in India including
Indian Accounting Standards (‘Ind AS) prescribed under section (Indian Accounting
Standards) Rules, 2015, as amended, ("Ind AS"), of the state of affairs of the
Company as at 31st March 2023, its profit including other comprehensive income,
its cash flows and the statement of changes in equity for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing specified
Our responsibilities under those standards are further described in the Auditors
Responsibilities the Financial Statements section of our report. We are of Ethics issued
by the Institute of Chartered Accountants of India (‘ICAI) together with the ethical
requirements that are relevant to our audit of the financial statements under the
provisions of the Act and the rules thereunder, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and the Code of sufficie nt and
appropriate to provide a basis for Ethics.Webelievethattheauditevidencewehaveobtainedis
our audit opinion on the financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the financial statements of the current period. These
financial statements as a whole, and in forming our opinion on these matters.
Key Audit Matters |
Auditors Response |
| 1 Valuation of biological assets and agricultural produce |
Principal audit procedures performed: |
Biological assets of the Company include unharvested green
tea leaves which are measured at fair value less costs to sell. |
Our audit approach was a combination and substantive procedures
including: |
| 1. Obtaining an understanding of the fair value measurement
methodologies used and assessing the reasonableness and consistency of the significant
assumptions used in the |
The Companys agricultural produce comprises of harvested
green leaves and is valued at fair value less cost to sell at the point of harvest.
Finished goods produced from agricultural produce are valued at lower of cost arrived at
by adding the cost of conversion to the fair value of agricultural produce and the net
realisable value. |
2. Evaluating the procedures and implementation of Companys controls
around the valuation of biological assets and harvested produce. |
| 3. Assessing the plucking yields to analyse the fair valuation of
biological assets. |
For harvested or unharvested green leaves, 4. since there
is no active market for own leaves, significant estimates are used by management in
determining the valuation of biological assets and agricultural produce consumed in
manufacture 5. of black tea and therefore has been considered as a key audit matter. |
Assessing the basis, reasonableness and accuracy of adjustments made to
market prices of green leaves considering the quality differential of the Companys
production. |
Verifying the consistency of application value approaches
and models over the years. |
The principal assumptions and estimates in the determination of the
fair value include assumptions of green leaf and the stage of transformation. |
| The determination of these assumptions and estimates require careful
evaluation by management and could lead to material impact on the financial position and
the results of the Company. |
Information other than the Financial Statements and
The Companys Board of Directors is responsible for the other information. The other
information information included in the Annual Report, but does not include the financial
statements and our auditors report thereon.
Our opinion on the financial statements does not cover the other information and we do
not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read
the other information and, in doing so, consider whether the other information is
materially inconsistent with the financial statements or our knowledge obtained in the
audit or otherwise appears to be materially misstated. If, based on the work we have
performed, we conclude that there is a material misstatement of this other information, we
are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management for the Financial Statements
The accompanying financial statements have been approved by the Companys Board of
Directors. The Companys Board of Directors is responsible for the matters stated in
section 134(5) of the Act with respect to the preparation of these financial statements
that give a true and fair view of the state of affairs, profit including other
comprehensive income, changes in equity and cash flows of the Company in accordance with
the accounting principles generally accepted in India, including the Ind AS specified
under section 133 of the Act. This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the Act for safeguarding of 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.
In preparing the financial statements, management is responsible for assessing the
Companys ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless management
either intends to liquidate the Company or to cease operations, or has no realistic
alternative but to do so.
The Board of DirectorsisalsoresponsibleforoverseeingtheCompanysfinancialreporting
process.
Auditors Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditors report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with
Standards on Auditing will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of these financial statements. As part of an audit in
accordance with Standards on Auditing, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those
risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for
our opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal financial controls relevant to the audit in order
to design audit procedures that are appropriate in the circumstances. Under section
143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the
Company has adequate internal financial controls system in place and the operating
effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
Conclude on the appropriateness of managements use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors report to the related disclosures in
the financial statements or, if such disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence obtained up to the date of our auditors
report. However, future y cause the Companytoceasetocontinueasagoing concern. ma
eventsorconditions
Evaluate the overall presentation, structure and content of the financial statements,
including the disclosures, and whether the financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the
planned scope and deficiencies in internal control that we timing identify during our
audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards. From the matters communicated with
those charged with governance, we determine those matters that were of most significance
in the audit of the financial statements of the current period and are therefore the key
audit matters. We describe these matters in our auditors report unless law or regulation
precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditors Report) Order, 2020 (‘the Order) issued
by the Central Government of India in terms of section 143(11) of the Act, we give in the Annexure
A, a statement on the matters specified in paragraphs 3 and 4 of the Order.
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 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 it appears from our examination of those books;
c. the financial statements dealt with by this report are in agreement with the books
of account;
d. in our opinion, the aforesaid financial statements comply with the Indian Accounting
Standards specified under Section 133 of the Act read with relevant rule issued
thereunder;
e. on the basis of the written representations received from the directors as on 31st
March, 2023 and taken on record by the Board of Directors,
noneofthedirectorsaredisqualified as on 31st March, 2023 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 (IFCoFR) of the Company and the operating effectiveness of such controls refer
to our separate reportin Annexure ‘B.
g. With respect to the other matters to be included in the Auditors Report in
accordance with the requirements of section 197
(16) of the Act, as amended; In our opinion and to the best of our information and
according to the explanations given to us, the remuneration paid by the Company to its
directors during the year is in accordance with the provisions of section 197 of the Act.
h. with respect to the other matters to be included in the Auditors 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 totheexplanations
i. the Company does not have any pending litigations, other than those disclosed in the
financial statements; which would materially impact its financial position. Refer note no.
34 to the financial statement; i
i. the Company has made provision, as required under the applicable laws or Ind AS, for
material foreseeable losses, if any, on long-term contracts including derivative
contracts; ii
i. there is no amount, required to be transferred, to the Investor Education and
Protection Fund by Company.
iv.
(a) The management has represented that, to the best of its knowledge and belief, no
funds have been advanced or loaned or invested (either from borrowed funds or securities
premium or any other sources or kind of funds) by the Company to or in any person
(s) or entity(ies), including foreign entities (‘the intermediaries), with the
understanding, whether recorded in writing or otherwise, that the intermediary shall,
whether, directly or indirectly lend or invest in other persons or entities identified in
any manner whatsoever by or on behalf of the Company (‘the Ultimate Beneficiaries)
or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(b) The management has represented that, to the best of its knowledge and
belief, no funds have been received by the Company from any person
(s) or entity(ies), including foreign entities (‘the Funding
Parties), with the understanding, whether recorded in writing or otherwise, that the
Company shall, whether directly or indirectly, lend or invest in other persons or entities
identified in any manner whatsoever by or on behalf of the Funding
Party(‘UltimateBeneficiaries)or provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries; and
(c) Based on such audit procedures performed as considered reasonable and
appropriate in the circumstances, nothing has come to our attention that causes us to
believe that the management representations under sub-clauses
(a) and
(b) above
v. The Company has not declared or paid any dividend during the year ended
31st March, 2023.
|
B Chhawchharia & Co |
|
Firm Registration No.: 305123E |
|
Chartered Accountants |
|
Gaurav Kumar Jaiswal |
| Place: Kolkata |
Partner |
| Dated, the 29th day of May, 2023 |
Membership No. 310588 |
|
UDIN:23310588BGXYQV9468 |
Annexure A to the Auditors Report
The Annexure referred to in Independent Auditors Report of even date to the members of
JAMES WARREN TEA
LIMITED, on the financial statements for the year ended 31st March, 2023.
In terms of the information and explanations sought by us and given by the Company and
the books of account and records examined by us in the normal course of audit, and to the
best of our knowledge and belief, we report that: (i) (a) (A) The Company has maintained
proper records showing full particulars, including quantitative details and situation of
property, plant and equipment.
(B) The Company has maintained proper records showing full particulars of intangible
assets. (b) The property, plant and equipment have been physically verified by the
management during the year and no material discrepancies were noticed on such
verification. In our opinion, the frequency of physical verification program adopted by
the Company Company and the nature of its assets.
(c) The title deeds of all the immovable properties held by the Company are held in the
name of the Company.
(d) The Company has not revalued its Property, Plant and Equipment or intangible assets
during the year.
(e) No proceedings have been initiated or are pending property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder. Accordingly,
reporting under clause 3(i)(e) of the Order is not applicable to the Company. (ii) (a) The
management has conducted physical verification of inventory at reasonable intervals during
the year. In our opinion, the coverage and procedure of such verification by the
management is appropriate and no discrepancies of 10% or more in the aggregate for each
class of inventory were noticed. In respect of inventory lying with third parties, these
have substantially been confirmed by the third parties.
(b) The Company has not been sanctioned working capital limits above Rs. 5 Crore by
banks or financial institutions on the basis of security of current assets during any
point of time of the year. Accordingly, reporting under clause 3(ii)(b) of the Order is
not (iii) (a) During the year, the Company has not provided / granted any loans or
advances in the nature of loans or guarantee, or security to any other entity.
Accordingly, reporting under clauses 3(iii)(a) and 3(iii)(e) of the Order is not
applicable to the Company.
(b) The investments made, guarantees provided, security given and terms and conditions
of the grant of all loans and advances in the nature of loans and guarantees provided are
not, prima facie, prejudicial to the Companys interest.
(c) The Company does not have any outstanding loans and advances in the nature of loans
at the beginning of the year nor has granted any loans or advances in the nature of loans
during the year. Accordingly, reporting under clauses 3(iii)(c), 3(iii)(d), 3(iii)(e) and
3(iii)(f) of the Order is not applicable to the Company.
(iv) In our opinion, and according to the information and explanations given to us, the
Company has complied with the provisions of sections 185 and 186 of the Act in respect of
loans, investments, guarantees and security, as applicable.
(v) The Company has not accepted any deposits within the meaning of Sections 73 to 76
of the Act and the Companies (Acceptance of Deposits) Rules, 2014 (as amended).
Accordingly, the provisions of clause 3(v) of the Order are not applicable.
(vi) The Central Government has specified maintenance of cost records under sub-section
(1) of section 148 of the Act in respect of the products of the Company. 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 and are of the opinion that, prima
facie, the prescribed accounts and records have been made and maintained. However, we have
not made a detailed examination of the cost records with a view to determine whether they
are accurate or complete.
(vii) (a) According to the information and explanations given to us and on the basis of
our examination of the records of the Company, amounts deducted accrued in the books of
account in respect of undisputed statutory dues including goods and services tax,
provident fund, employees state insurance, income-tax, sales-tax, service tax, duty of
customs, duty of excise, value added tax, cess and other material statutory dues, as
applicable, have generally been regularly deposited to the appropriate authorities.
Further, no undisputed amounts payable in respect thereof were outstanding on the year-end
for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there are no statutory
dues referred in subclause (a) which have not been deposited with the appropriate
authorities on account of any dispute except;
Name of the statute |
Nature of dues |
Gross Amount ( in Lakhs) |
Amount paid under Protest ( in Lakhs) |
Period to which the amount relates |
Forum where the dispute is pending |
Income Tax Act, 1961 |
Income Tax |
1.21 |
- |
Assessment Year 2016-17 |
DCIT |
(viii) According to the information and explanations given to us, no transactionswere
surrendered or disclosed as income during the year in the tax assessments under the Income
Tax Act, 1961 (43 of 1961) which have not been recorded in the books of accounts.
(ix) According to the information and explanations given to us, the Company does not
have any loans or other borrowings from any lender. Accordingly, reporting under clause
3(ix) of the Order is not applicable to the Company.
(x) (a) The Company did not raise any money by way of initial public offer or further
public offer (including debt instrument) during the year. Accordingly, reporting under
clause 3(x)(a) of the Order is not applicable to the Company.
(b) According to the information and explanations given to us, the Company has not made
any preferential allotment or private placement of shares or (fully, partially or
optionally) convertible debentures during the year. Accordingly, reporting under clause
3(x)(b) of the Order is not applicable to the Company. (xi) (a) To the best of our
knowledge and according to the information and explanations given to us, no fraud by the
Company or on the Company has been noticed or reported during the period covered by our
audit.
(b) No report under section 143(12) of the Act has been filed with the covered by our
audit.
(c) According to the information and explanations given to us including the
representation made to us by the management of the Company, there are no whistle-blower
complaints received by the Company during the year.
(xii) The Company is not a Nidhi Company and the Nidhi Rules, 2014 are not applicable
to it. Accordingly, reporting under clause 3(xii) of the Order is not applicable to the
Company.
(xiii) In our opinion and according to the information and explanations given to us,
all transactions entered into by the Company with the related parties are in compliance
with sections 177 and 188 of the Act, where applicable. Further, the details of such
related party transactions have been disclosed in the standalone financial statements, as
required under Indian Accounting Standard (Ind AS) 24, Related Party Disclosures specified
in Companies (Indian Accounting Standards) Rules 2015 as prescribed under section 133 of
the Act. (xiv) (a) In our opinion and according to the information and explanations given
to us, the Company maintains an internal audit system as required under section 138 of the
Act which is commensurate with the size and nature of its business.
(b) The reports of the Internal Auditor for the period under audit have been considered
by us. (xv) According to the information and explanation given to us, the Company has not
entered into any non-cash transactions with its directors or persons connected with them
and accordingly, provisions of section 192 of the Act are not applicable to the Company.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve
Bank of India Act, 1934. Accordingly, reporting under clause 3(xvi) of the Order is not
applicable to the Company.
(xvii) The Company has not incurred any cash loss in the current as well as the
immediately preceding financial year.
(xviii)There has been no resignation of the statutory auditors during the year and
accordingly the reporting under clause 3(xviii) of the Order is not applicable to the
Company.
(xix) According to the information and explanations given to us and on the basis of the
financial ratios, ageing and expected dates of realisation of financial assets and payment
of financial liabilities, accompanying the standalone financial statements, our knowledge
of the plans of the Board of Directors and management, we are of the opinion that no
material uncertainty exists as on the date of the audit report that Company is capable
ofmeetingitsliabilitiesexisting at the date of balance sheet as and when they fall due
within a period of one year from the balance sheet date. We, however, state that this is
not an assurance as to the future viability of the company. We further state that our
reporting is based on the facts up to the date of the audit report and we neither give any
guarantee nor any assurancethat liabilitiesfalling due within a period of one year
from the balance sheet date, will get discharged by the company as and when they fall due.
(xx) According to the information and explanations given to us, the Company does in
respect of any ongoing or other than ongoing project as at the expiry of the financial
reporting under clause 3(xx) of the Order is not applicable to the Company.
(xxi) The reporting under clause 3(xxi) is not applicable in respect of audit of
standalone financial statements of the Company. Accordingly, no comment has been included
in respect of said clause under this report.
|
B Chhawchharia & Co |
|
Firm Registration No.:305123E |
|
Chartered Accountants |
|
Gaurav Kumar Jaiswal |
| Place: Kolkata |
Partner |
| Dated, the 29th day of May, 2023 |
Membership No. 310588 |
|
UDIN:23310588BGXYQV9468 |
Annexure B to the Auditors Report
Report on the Internal Financial Controls underClause(i) section3 of Section 143 of the
Companies Act, Sub-2013 ("the Act")
In conjunction with our audit of the financial statements of JAMES WARREN TEA
LIMITED ("the Company") as of and for the year ended 31st March 2023, we
have audited the internal financial controls over financial reporting (IFCoFR) of the
company as of that date.
Managements Responsibility for Internal Financial Controls
The Companys 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 include the
design, implementation and maintenance of adequate
reportingissuedbyICAI.Theseresponsibilities internal financial controls that were
operating effectively for ensuring the orderly and efficient conduct of its business,
including adherence to companys 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.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys IFCoFR based on our audit.
We conducted our audit in accordance with the Guidance note on Audit of Internal Financial
Controls over Financial Reporting (the "Guidance Note") and Standards on
Auditing, issued by the Institute of Chartered Accountants of India (ICAI) and deemed to
be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable
to an audit of IFCoFR, and the Guidance Note on Audit of Internal Financial Controls Over
Financial Reporting (the "Guidance Note") issued by the ICAI. 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 IFCoFR 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 IFCoFR and their operating effectiveness. Our audit of IFCoFR included obtaining an
understanding of IFCoFR, assessing the risk that a material weakness exists, and testing
and evaluating the design and operating effectiveness of internal control based on the
assessed risk. 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. We believe that the audit evidences we have obtained are sufficient and
appropriate to provide a basis for our audit opinion on the Companys IFCoFR.
Meaning of Internal Financial Controls over Financial Reporting
A companys IFCoFR 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 companys
IFCoFR includes those policies and procedures that (1) pertain to the maintenance of
records that, in reasonable detail, accurately and fairly reflect the 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
management and directors of the company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition,use,ordispositionof the
companys assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting including
Becauseoftheinherentlimitations 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 IFCoFR to future periods are subject
to the risk that IFCoFR 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, the Company has, in all material respects, adequate internal financial
controls over financial reporting and such internal financial controls over financial
reporting were operatingeffectively as at 31 st March 2023, based 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 by ICAI.
|
B Chhawchharia & Co |
|
Firm Registration No.: |
|
Chartered Accountants |
|
Gaurav Kumar Jaiswal |
| Place: Kolkata |
Partner |
| Dated, the 29th day of May, 2023 |
Membership No. 310588 |
|
UDIN:23310588BGXYQV9468 |
+91-9892691696
