To the Members of Tea Time Limited
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the standalone financial statements of Tea Time Limited ("the
Company"),
which comprise the balance sheet as at 31st March 2021, the statement of
Profit and Loss, statement of changes in equity and statement of cash flows for the year
then ended, and notes to the financial statements, including a summary of 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 Act in the manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India, of the state of affairs of the Company
as at March 31, 2021, and profit/loss, changes in equity and its cash flows for the year
ended on that date.
Basis for Opinion
We conducted our audit in accordance with the standards on Auditing (SAs) specified
under section 143(10) of the Companies Act, 2013. Our responsibilities under those
Standards are further described in the Auditors Responsibilities for the Audit of the
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 together with the ethical requirements that are relevant to our audit of the
financial statements under the provisions of the Companies Act, 2013 and the Rules
thereunder, and we have fulfilled our other ethical responsibilities in accordance with
these requirements and the Code of Ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
There are no serious Audit observations and no Key Audit Matters to communicate in our
report.
Managements Responsibility for the Standalone Financial Statements
The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Companies Act, 2013 ("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, changes in equity and cash flows of the Company in
accordance with the accounting principles generally accepted in India, including the
Accounting Standards
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 statement 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.
Those Board of Directors are also responsible for overseeing the Companys financial
reporting 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 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 financial statements.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditors Report) Order, 2016 ("the Order"),
issued by the Central Government of India in terms of sub-section (11) of section 143 of
the Companies Act, 2013, we give in the Annexure a statement on the matters specified in
paragraphs 3 and 4 of the Order, to the extent applicable.
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 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, and the Cash Flow Statement
dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid standalone financial statements comply with the
Accounting Standards 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 31st
March, 2021 taken on record by the Board of Directors, none of the directors is
disqualified as on
31st March, 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".
(g) 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 to the explanations given to us:
i. The Company has disclosed the impact of Rs. 12,36,646/- on its financial position in
respect of its pending litigation - Refer Note 17 to the financial statements.
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.
Annexure - A to the Independent 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 Tea Time
Limited as of 31 March 2021 in conjunction vith our audit of the standalone 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 judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud oi 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 31 March 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.
Annexure- B, to the Independent Auditors Report (Referred to in our report of even
date attached)
Referred to in paragraph 1 under the heading ‘Report on Other Legal &
Regulatory Requirement of our report of even date:
1) (a) The Company has maintained proper records showing Ml particulars, including
quantitative details and situation of fixed assets;
(b) The Fixed Assets have been physically verified by the management at reasonable
intervals and no material discrepancies between the books records and the physical fixed
assets have been noticed.
(c) The Company did not have any immovable property.
2) The company did not have any inventory during the year under review.
3) As per information and explanations given to us, the Company has not granted any
loans secured or unsecured to company, firms, Hmited liability partnership or other
parties covered in the Register maintained under section 189 of the Companies Act, 2013.
4) According to the information and explanations given to us, the company has not given
loans, guarantees, made investments and / or purchased securities in respect of which
provisions of section 185 and 186 of the Companies Act, 2013 are applicable.
5) According to the information and explanations given to us, the Company has not
accepted any deposits from the public and hence the directives issued by the Reserve Bank
of India and the provisions of Sections 73 to 76 or any other relevant provisions of the
Act and the Companies (Acceptance of Deposit) Rules, 2015 with regard to the deposits
accepted from the public are not applicable.
6) As informed to us, the maintenance of Cost Records has not been specified by the
Central Government under sub-section (1) of Section 148 of the Act, in respect of the
activities carried on by the company.
7) (a) According to information and explanations given to us and on the basis of our
examination of the books of account, and records, the Company has been generally regular
in depositing undisputed statutory dues including Income-Tax, GST and any other statutory
dues with the appropriate authorities. According to information and explanations given to
us, no undisputed amount payable which were outstanding, at the year end, for a period of
more than six months from the date they became payable.
b) According to the information and explanation given to us, there are no dues of
service tax. Sales Tax, duty of customs, and duty of excire on account of any dispute.
8) According to the information and explanations given to us, the Company has not
defaulted in the repayment of dues to banks. The Company has not taken any loan cither
from financial institutions or from the government and has not issued any debentures.
9) Based upon the information and explanations given by the management, the company has
not raised moneys by way of initial public offer or further public offer include-ig debt
instruments and term Loans. Accordingly, the provisions of clause 3 (ix) of CARO are not
applicable to the Company.
10) Based upon the audit procedures performed and according to the information and
explanations given by the management, no fraud by the Company or on the company by its
officers or employees has been noticed or reported during the year.
11) Based upon the information and explanations given by the management, the company
has not paid any managerial remuneration except sitting fees of Directors.
12) As per information and explanations given to us, the Company is not a Nidhi
Company. Therefore, the provisions of clause 4 (xii) of the Order are not applicable to
the Company.
13) As per information and explanations given to us, transactions with the related
parties are in compliance with section 177 and 188 of Companies Act, 2013 and the details
have been disclosed in the Note No 19 of Financial Statements as required by the
applicable accounting standards.
14) Based upon the audit procedures performed and according to the information and
explanations given by the management, the company has not made any preferential allotment
or private placement of shares or fully or partly convertible debentures during the year
under review. Accordingly, the provisions of clause 3 (xiv) of the Order are not
applicable to the Company and hence not commented upon.
15) According to the information and explanations given by the management, the company
has paid Service Charges of Rs. 9,60,000/- to Mr. V. N. Agarwal, Director during the year.
16) In our opinion and according to the information and explanations given to us, the
company is not required to be registered under section 45 IA of the Reserve Bank of India
Act, 1934 and accordingly, the provisions of clause 3 (xvi) of the Order are not
applicable to the Company and hence not commented upon.
Place: Kolkata Date: 28.06.2021
Tea Time 2020-21
Audit Report.doc-sg6
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