TO THE MEMBERS OF LEDO TEA COMPANY LIMITED
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the accompanying standalone financial statements of Ledo Tea Company
Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2021,
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 ended on that date, and a
summary of the significant accounting policies and other explanatory information.
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 Companies Act, 2013 ("the Act") in the manner so required and give a true
and fair view in conformity with the Indian Accounting Standards prescribed under section
133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as
amended, ("Ind AS") and other accounting principles generally accepted in India,
of the state of affairs of the Company as at March 31, 2021, the profit and total
comprehensive income, changes in equity and its cash flows for the year ended on that
date.
Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with the
Standards on Auditing (SAs) specified under section 143(10) of the Act. Our
responsibilities under those Standards are further described in the Auditors
Responsibilities for the Audit of the Standalone Financial Statements section of our
report. We are independent of the Company in accordance with the Code of Ethics issued by
the Institute of Chartered Accountants of India (ICAI) together with the independence
requirements that are relevant to our audit of the standalone financial statements under
the provisions of the Act and the Rules made thereunder, and we have fulfilled our other
ethical responsibilities in accordance with these requirements and the ICAIs Code of
Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our audit opinion on the standalone financial statements.
Emphasis of Matter
We draw attention to following:
a) The company has not made provision for part of gratuity liability as per actuarial
valuation as per Ind AS 19 - Employee Benefits.
b) Note 36 of the financial statements, indicates the fact that the net-worth of the
Company is fully eroded. This condition indicate the existence of a uncertainty that may
cast significant doubt the Companys ability to continue as a going concern. However, the
financial results of the Company have been prepared on a going concern basis for the
reason stated in said note. The appropriateness of the said basis is dependent on the
Companys ability to infuse requisite funds for meeting its obligations, repayment of
advances and short term borrowings along with interest and restoring its operational
profitability.
Our opinion is not modified in respect of above matter
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most
significance in our audit of the standalone financial statements of the current period.
These matters were addressed in the context of our audit of the standalone financial
statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters. We have determined the matters described below to be
the key audit matters to be communicated in our report.
| Sr. No. Key Audit Matter (KAM) |
Auditors Response |
| • Estimation of Useful Life of Bearer Plants |
• Assessed the managements estimates of the useful life of Bearer Plants with
reference to: (1) the consistency with the Companys pattern of economic benefits embodied
in such assets and future operating plans including acquisitions and requirements of the
Bearer Plants; (2) the comparison to the useful life estimates adopted by the comparable
tea producers; and (3) consideration of the Companys historical experience. |
| • Useful life of Bearer Plants requires the management to exercise significant
judgement in relation to the estimate thereof. Nature, timing and likelihood of changes to
the natural factors may affect the useful life expectancy of the assets and therefore
could have a material impact on the depreciation expense for the year. As per the Ind AS
16 - "Property, Plant and Equipment", the management reviews the estimated
useful life and the residual value of Bearer Plants annually and adjust for changes, where
appropriate. Accordingly, the matter has been identified as key audit matter |
|
|
• Evaluated the assumptions and critical judgements used by the management
through testing of underlying documents / details. |
|
• Assessed the related disclosures included in the standalone Ind AS financial
statements in this regard. |
Information other than the Standalone Financial Statements and Auditors Report Thereon
The Companys Board of Directors is responsible for the preparation of the other
information. The other information comprises the information included in the Analysis,
Boards Report including Annexures to Boards Report, and Shareholders Information, but
does not include the standalone financial statements and our auditors report thereon.
Our opinion on the standalone 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 standalone financial statements, our responsibility
is to read the other information and, in doing so, consider whether the other information
is materially inconsistent with the standalone financial statements or our knowledge
obtained during the course of our 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 and Those Charged With Governance for the Standalone
Financial Statement
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 standalone financial statements
that give a true and fair view of the financial position, financial performance, total
comprehensive income, changes in equity and cash flows of the Company in accordance with
the Ind AS and other accounting principles generally accepted in India. 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 judgements 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 standalone financial
statements that give a true and fair view and are free from material misstatement, whether
due to fraud or error.
In preparing the standalone financial statements, the Board of Directors 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 Directors is responsible for overseeing the Companys financial reporting
process.
Auditors Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone
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 SAs 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 standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgement and
maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the standalone
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 standalone 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 events or conditions may cause the Company to cease to
continue as a going concern.
• Evaluate the overall presentation, structure and content of the standalone
financial statements, including the disclosures, and whether the standalone financial
statements represent the underlying transactions and events in a manner that achieves fair
presentation.
Materiality is the magnitude of misstatements in the standalone financial statements
that, individually or in aggregate, makes it probable that the economic decisions of a
reasonably knowledgeable user of the financial statements may be influenced. We consider
quantitative materiality and qualitative factors in (i) planning the scope of our audit
work and in evaluating the results of our work; and (ii) to evaluate the effect of any
identified misstatements in the financial statements. We communicate with those charged
with governance regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in internal control
that we 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.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, based on our audit 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
loss, Statement of Changes in Equity and the Statement of Cash Flow dealt with by this
Report are in agreement with the relevant books of account.
d) In our opinion, the aforesaid standalone financial statements comply with the Ind AS
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, 2021 taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 2021 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 "Annexure A". Our report expresses an unmodified opinion on
the adequacy and operating effectiveness of the Companys internal financial controls over
financial reporting.
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, as amended in
our opinion and to the best of our information and according to the explanations given to
us:
i. The Company does not have any pending litigations which would impact its financial
position.
ii. The Company did not have any long-term contracts including derivative contracts 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.
2. As required by the Companies (Auditors Report) Order, 2016 ("the Order")
issued by the Central Government in terms of Section 143(11) of the Act, we give in
"Annexure B" a statement on the matters specified in paragraphs 3 and 4 of the
Order.
|
For B Nath & Co |
|
Chartered Accountants |
|
(Firms Registration No. 307057E) |
|
Gaurav More |
|
Partner |
|
(Membership No.306466) |
|
UDIN -21306466AAAACB1332 |
| Place: Kolkata |
|
| Date: June 30, 2021 |
|
Annexure - A to the Auditors Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Ledo Tea
Compay Limited ("the Company") as of March 31, 2021 in conjunction with our
audit of the Ind AS financial statements of the Company for the year ended on 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 Reporting
issued by the Institute of Chartered Accountants of India (ICAI). 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 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 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 "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed
to be prescribed under section 143(10) of the Companies Act, 2013, to the extent
applicable to an audit of internal financial controls, both applicable to an audit of
Internal Financial Controls and, both issued by the Institute of Chartered Accountants of
India. 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 and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditors judgement, including the assessment of the risks of
material misstatement of the Ind AS 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 Companys internal financial controls system
over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A Companys 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 Companys 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 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 authorisations of
management and directors of the Company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorised acquisition, use, or disposition of the
Companys assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial
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, 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, 2021, 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 by the Institute of Chartered
Accountants of India.
|
For B Nath & Co |
|
Chartered Accountants |
|
(Firms Registration No.307057E) |
|
Gaurav More |
|
(Partner) |
|
(Membership No. 306466) |
|
UDIN -21306466AAAACB1332 |
| Place: Kolkata |
|
| Date: June 30, 2021 |
|
Annexure - B to the Auditors Report
The Annexure referred to in Independent Auditors Report to the members of the Company
on the standalone Ind AS financial statements for the period ended March 31, 2021, we
report that:
(i) (a) The Company has maintained proper records showing full particulars, including
quantitative details and situation of the fixed assets;
(b) The fixed assets were physically verified during the year under audit by the
Management in accordance with a regular programme of verification which, in our opinion,
provides for physical verification of all the fixed assets at reasonable intervals.
According to the information and explanation given to us, no material discrepancies were
noticed on the such verification;
(c) As per information and explanations given to us by the management, and the records
verified by us and based on the examination of the registered sale deed provided to us, we
report that all the immovable properties are held in the name of the Company.
(ii) In our opinion the inventories were physically verified during the year by the
Management at reasonable intervals and as explained to us, no material discrepancies were
noticed on physical verification.
(iii) According to the information and explanations given to us and on the basis of our
examination of the books of account, 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. Consequently, the
provisions of paragraph iii(a), iii(b) and iii(c) of the Order are not applicable to the
Company and hence, not commented upon;
(iv) In our opinion and according to informations and explanations given to us, the
Company has not given any loans, or made investments, guarantees and security, hence the
provision of this paragraph is not applicable to the Company;
(v) The Company has not accepted any deposit from the public covered under Section 73
to 76 of the Companies Act, 2013. Therefore, the provisions of paragraph 3(v) of the Order
is not applicable to the Company;
(vi) According to information and explanations given to us, the company is not required
to maintain prescribed cost record pursuant to Companies (Cost Records & Audit) Rules
2014. Therefore, we are also not required to examine cost records.
(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 Provident Fund, Income Tax, GST,
Cess or other material statutory dues have been generally regularly deposited during the
period by the Company with appropriate authorities.
According to the information and explanations given to us no undisputed statutory dues
including Provident Fund, Income Tax, GST, cess or other material statutory dues were in
arrears as at 31st March 2021 for a period of more than six months from the date they
become payable except in following cases:
| Nature of Dues |
Nature of Dues |
Nature of Dues |
Amount in Rs. In Lakhs |
Date of Payment |
| Employees Provident Fund & Miscellaneous Provisions Act, 1952 |
February 2020 till September 2020 |
Provident Fund |
39.89 |
Not Yet Paid |
b) According to the information and explanations given to us, there were no disputed
dues which have not been deposited by the company on account of dispute as at 31st March
2021:
(viii) In our opinion and according to the information given to us, the Company has not
defaulted in repayment of dues to banks. There were no debentures outstanding during the
year.
(ix) According to information and explanations given to us, the Company has not raised
moneys by way of initial public offer or further public offer (including debt
instruments). However the Company has taken term loan from bank during the year and has
applied for the purpose for which those were raised.
(x) Based on the audit procedures performed and the information and explanations given
to us, we report that no material fraud on or by the Company has been noticed or reported
during the period, nor have we been informed of such case by the management;
(xi) According to information and explanations given to us, the Company has paid or
provided managerial remuneration in accordance with the provisions of section 197 read
with Schedule V to the Act.
(xii) In our opinion and according to the information and explanations given to us, the
Company is not a Nidhi Company and hence the paragraph 3(xii) is not applicable;
(xiii) According to the information and explanations given to us and based on our
examination of the records of the Company, transactions with the related parties are in
compliance with section 177 and 188 of the Act where applicable and details of such
transactions have been disclosed in the financial statements as required by the applicable
Indian accounting standards
(xiv) According to information and explanations given to us the Company has not made
any preferential allotment or private placement of shares or fully or partly convertible
debentures during the period under review;
(xv) According to information and explanations given to us, the Company has not entered
into any non-cash transactions with directors or persons connected with him. Accordingly
the paragraph 3(xv) is not applicable the Company;
(xvi) In our opinion and on the basis of information and explanations given to us by
the management, the Company is not required to be registered under section 45-IA of the
Reserve Bank of India Act, 1934.
|
For B Nath & Co |
|
Chartered Accountants |
|
(Firms Registration No.307057E) |
|
Gaurav More |
|
(Partner) |
|
(Membership No. 306466) |
| Place: Kolkata |
UDIN -21306466AAAACB1332 |
| Date: June 30, 2021 |
|
+91-9892691696
