AUDITORS
INDEPENDENT AUDITORS REPORT
TO THE MEMBERS OF MALANKARA PLANTATIONS LIMITED
1. Report on the Financial Statements.
We have audited the accompanying financial statements of Malankara Plantations
Limited (the Company), which comprise the Balance Sheet as at March 31, 2014, and
the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a
summary of significant accounting poNcies and other explanatory information.
2. 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 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 01 error.
3. 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 aoout
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.
4. 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:
i) in the case of the Balance Sheet, of the state of affairs of the Company as at March
31, 2014;
ii) in the case of the Statement of Profit and Loss, of the profit for the year ended
on that date; and
iii) in the case of the Cash Flow Statement, of the cash flows for the year ended on
that date.
5. Report on Other Legal and Regulatory Requirements
(i) As required by the Companies (Auditors Report) Order, 2003 ("theOrder")
issued by the Central Government of India in terms of sub-section (4A)of section 227 of
the Act, we enclose in the Annexure a statement on the matters specified in paragraphs 4
and 5 of the Order.
(ii) Further to our comments in the Annexure referred to in Paragraph 5(i) above, as
required by section 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 our audit;
b. 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;
c. The Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with
by this Report are in agreement with the books of account;
d. In our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement comply with the Accounting Standards referred to in subsection (3C)of section
211 of the Companies Act,1956;
On the basis of written representations received from the directors as on March 31,
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 O. THOMAS & CO
Chartered Accountants
FRN:004412S
Sd/-
(ABRAHAM K THOMAS)
Partner
Membership No. :F 09705
Place:Kottayam
Date: 01.08.2014
ANNEXURE
Re: Malankara Plantations Limited
Referred to in our report of even date.
1 (a) The company has maintained proper records showing full particulars including
quantitative details and situation of fixed assets.
(b) All the assets have not been physically verified by the management during the year
but there is a regular programme of verification which, in our opinion, is reasonable
having regard to the size of the company and the nature of its assets. No material
discrepancies were noticed on such verification.
(c) During the year, the company has not disposed of any substantial part of fixed
assets.
2. (a) The inventory has been physically verified during the year by the management. In
our opinion, the frequency of verification is reasonable.
(b) The procedures of physical verification of inventories followed by the management
are reasonable and adequate in relation to the size of the company and the nature of its
business.
(c) On the basis of our examination of the records of inventory, we are of the opinion
that the company is maintaining proper records of inventory. On verification between the
physical stocks and the book records no material discrepancies were noticed.
3. (a) The Company has granted loan to parties covered in the register maintained under
section 301 of the Companies Act 1956
(b) The Company has not taken any loan from parties covered in the register maintained
under section 301 of the Companies Act 1956.
(c) The Company has granted interest free loan of Rs. 3,50,00,0007- to its subsidiary
Malankara Wood Ltd and Rs.4,50,0007- to its another subsidiary Malankara Enterprises Ltd
during the year ended 31st March 2014. Total loan granted to Malankara Wood Ltd is
Rs.11,46,95,0587- and to Malankara Enterprises Ltd is Rs.30,23,6677- as on 31st .March
2014.
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 the
nature of its business with regard to purchases of inventory, fixed assets and with regard
to the sale of goods. During the course of our audit, no major weakness has been noticed
in the internal controls.
5. a) Based on the audit procedures applied by us and according to the information and
explanations provided by the management, we are of the opinion that the transactions that
need to be entered into the register maintained under section 301 have been so entered.
b) In our opinion and according to the information and explanations given to us, the
transactions made in pursuance of contracts or arrangements entered in the registers
maintained under section 301 and exceeding the value of five lakhs rupees in respect of
any party during the year have been made at prices which are reasonable having regard to
prevailing market prices at the relevant time.
6. The Company has not accepted any Public deposit as per the provisions of the
Companies Act 1956 and the Companies (Acceptance of Deposit) Rules 1975.
7. In our opinion, the company has an internal audit system commensurate with the size
and nature of its business.
8. As per information & explanation given by the management, maintenance of cost
records has been prescribed by the Central Government under clause (d) of sub-section (1)
of section 209 of the Act and we are of the opinion that prima facie the prescribed
accounts and records have been made and maintained.
9. (a) According to the records of the Company, the Company is generally regular in
depositing with appropriate authorities undisputed statutory dues including Provident
Fund, Investor Education Protection Fund, Employees State Insurance, income Tax, Sales Tax
and other statutory dues applicable to it.
(b) According to the information and explanation given to us the details of statutory
dues of sales tax and income tax which have not been deposited on account of dispute are
given below:
|
Financial year to.which the Matters pertains |
Forum where dispute is pending |
Amount (in Rupees) |
| Agricultural Income Tax |
2001-02 |
Kerala Agri & Sales Tax Appellate Tribunal |
56,848 |
| Agricultural Income Tax |
2007-08 |
DC Appeals, Kottayam |
1,80,245 |
| Agricultural Income Tax |
2008-09 |
DC Appeals, Kottayam |
70,074 |
| Agricultural Income Tax |
2009-10 |
DC Appeals, Kottayam |
949224 |
| Agricultural Income Tax* |
2010-11 |
DC Appeals, Kottayam |
75,50,770 |
| KVAT** |
2009-10 |
DC Appeals, Kottayam |
7,21,160 |
| INCOME TAX |
2009-10 |
CIT (Appeal) IV, Kochi |
25,92,960 |
| INCOME TAX |
2010-11 |
CIT (Appeal) IV, Kochi |
30,11,820 |
* A sum of Rs.2,23,347 and a sum of rs.17,76,653/- towards Agricultural Income Tax have
been deposited for the year 2009-10 and 2010-11 respectively as per the direction of the
Honourable High Court of Kerala.
** A sum of Rs.1,00,0007- has been deposited towards KVAT as per direction of Deputy
Commissioner (Appeals), Ernakuiam.
10. The Company has no accumulated Losses.
11. Based on our audit procedures and on the information and explanations given by the
management, we are of the opinion that the company has not defaulted in repayment of dues
to any financial institution, bank or debenture holder.
12. Based on our examination of the records and evaluation of the related internal
controls, we are of the opinion that proper records have been maintained of transactions
and contracts and timely entries have been made in those records. We also report that the
company has held the shares, securities, debentures and other securities in its own name.
13. The company has not given any guarantee for loans taken by others from banks or
financial institutions.
14. The Company has taken term loan from the Tea Board amounting Rs.18,01,569/- which
has been applied for the purpose for which they were raised.
15. According to the information and explanations given to us and on an overall
examination of the balance sheet of the company, we report that no funds raised on
short-term basis have been used for long-term investment. No long-term funds have been
used to finance short-term assets except core (permanent) working capital.
16. Based on our examination of records and the information provided to us by
management we report that the company has not made preferential allotment of shares to
parties and companies covered in the register maintained under section 301 of the Act.
17. During the period covered by our audit report, the company has not issued any
debentures.
18. Based upon the audit procedures performed and information and explanations given by
the management, we report that no fraud by the Company has been noticed or reported during
the course of our audit.
19. Based on our examination of the records of the Company, specific clauses (xii),
(xiii), (xiv) and (xx) of Companies (Auditors Report) Order, 2003 are seen not applicable
to the Company.
|
for O THOMAS & CO |
|
Chartered Accountants |
|
(FRN 004412S) |
|
Sd/- |
|
(ABRAHAM K THOMAS) |
|
Partner |
|
(Membership No: F 09705) |
| Place: Kottayam |
|
| Date: 01.08.2014 |
|
+91-9892691696
