1. We have audited the attached Balance Sheet of Assam Company India
Limited as at 31st December, 2011 and the related Profit & Loss Account
and also the Cash Flow Statement of the Company for the year ended on
that date annexed thereto. The said Balance Sheet, Profit & Loss
Account and the Cash Flow Statement have been signed by us under
reference to this report. These financial statements are the
responsibility of the Company’s Management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with Auditing Standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by Management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
3. As required by the Companies (Auditor’s Report) Order, 2003 (as
amended by the Companies Auditor’ Report) Amendment Order, 2004 (the
Order), issued by the Central Government of India in terms of
sub-section 4(A) of Section 227 of ‘The Companies Act, 1956’ (the Act)
and on the basis of such checks and records as we considered
appropriate and according to the information and explanations given to
us, we give in the Annexure hereto, a statement on the matters
specified in paragraphs 4 and 5 of the said Order.
4. Attention is drawn to Note No. 31 relating to overdue Export
Debtors balance of Rs.15.26 crores from certain customers who has
assured the Company of payment of such balance. However, the Management
could not provide sufficient and appropriate evidences to confirm the
realisability of the aforesaid overdue outstanding payment for our
examination and we are unable to express any opinion on the
Management’s assertion in this respect that adequate consideration has
been given to the concept of prudence set out in Accounting Standard 1–
Disclosure of Accounting Policies. The amount of overdue debts that may
require suitable provision, impact thereof on the reported Profit
Before Tax for the year, Sundry Debtors Balance and Reserves and
Surplus Balance at the year end, could not be ascertained.
5. Without qualifying our opinion, we draw your attention to Note
No.17(l) of Schedule No.13 in relation to rate of depreciation on
certain oil and gas producing assets of the Company whose net book
value at the year end aggregate to Rs. 5,175.76 lakhs that are being
depreciated on consistent basis in accordance with the “Unit of
Production” method as per guidance note on “Accounting for Oil & Gas
Producing Activities” issued by The Institute of Chartered Accountants
of India in February 2003 because no rates have been specified for the
aforesaid class of fixed assets under Schedule XIV to the Act. The
depreciation on the balance oil and gas producing assets, whose net
book value aggregating to Rs.277.00 lakhs has been provided as per
Schedule XIV to the Act. The Company is still awaiting the response to
application to Central Government pursuant to Section 205 of the Act
seeking approval to depreciate the aforesaid assets in accordance with
the “Unit of Production” method. This financial statement does not
include any adjustments on consequential impact should the Central
Government direct the Company to adopt any other method on rate of
depreciation other than “Unit of Production” method.
6. Further to our comments in the Annexure referred to above, 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 purposes of our
(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 and proper returns adequate for the purpose of our audit
have been received from the places not visited by us;
(c) The Balance Sheet, the Profit & Loss Account and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
(d) In our opinion, the Balance Sheet, the Profit & Loss Account and
the Cash Flow Statement read with Notes on Accounts in Schedule No.13
including Significant Accounting Policies respectively comply with the
Accounting Standards referred to in sub- section (3C) of Section 211 of
(e) On the basis of written representations from the Directors as on
31st December, 2011 and taken on record by the Board of Directors, none
of the Director is disqualified on 31st December, 2011 from being
appointed as a Director in terms of sub-section (1) (g) of Section 274
of the Act.
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements together
with the notes thereon and attached thereto and including Significant
Accounting Policies give, in the prescribed manner, the information
required by the Act, and, except for the effects of the matter referred
to in paragraph 4 above, give a true and fair view in conformity with
the accounting principles generally accepted in India:
(a) in the case of Balance Sheet, of the state of affairs of the
Company as at 31st December, 2011;
(b) in the case the Profit & Loss Account, of the profit for the year
ended on that date; and
(c) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE TO THE AUDITORS’ REPORT (Referred to in paragraph 3 of our
Report of even date to the Member of Assam Company India Limited on the
financial statements ended on 31st December, 2011 )
i. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of Fixed
Assets other than Oil and Gas Division. However, a list of fixed assets
acquired for Oil & Gas Operation is maintained.
(b) The Fixed Assets of the Company, has been physically verified by
the Management periodically in phased manner, which, in our opinion, is
reasonable having regard to the size of the Company and the nature of
its assets. In respect of assets physically verified, the details have
been compared with the book records and discrepancies noticed were not
material and have been properly dealt with in the books of account.
(c) In our opinion and according to information and explanations given
to us , no substantial part of fixed assets have been disposed of
during the year.
ii. (a) Physical verification of inventory has been conducted at
reasonable intervals during the year by the Management except for Oil
and Gas Division.
(b) In our opinion, the procedures of physical verification of
inventory followed by the Management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) The Company has maintained proper records of inventory. No material
discrepancies were noticed on physical verification.
iii. (a) The Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under Section 301 of The Companies Act, 1956.
(b) The Company has not taken any loans, secured or unsecured, from
companies, firms or other parties covered in the register maintained
under Section 301 of The Companies Act, 1956.
iv. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system 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. Further, on the basis of our examination of the books and
records of the Company, and according to the information and
explanations given to us, we have neither come across nor we have been
informed of any continuing or habitual failure to correct major
weaknesses in the aforesaid internal control system.
v. On the basis of our examination of the books of account, the Company
has not entered into any contracts or arrangements with any party
during the financial year that need to be entered in the register
pursuant to the Section 301 of the Companies Act, 1956.
vi. The Company has not accepted any deposits from the public within
the meaning of Section 58A and 58AA of the Act and the rules framed
vii. The Company has an internal audit system commensurate with the
size and nature of its business. However, there is scope of improving
the effectiveness of Internal Audit system.
viii. We have broadly reviewed the accounts maintained by the Company
in respect of tea products where, pursuant to the Rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under clause (d) of sub-section (1) of Section 209 of the
Act and are of the opinion prima facie, the prescribed accounts and
records have been made and maintained. We have not, however, made a
detailed examination of the records with a view to determine whether
they are accurate or complete. No cost record has been maintained with
respect to its oil and gas products.
ix. (a) According to the information and explanations given to us and
the records of the Company examined by us, in our opinion, the Company
is regular in depositing provident fund, made tea cess and other
material statutory dues as applicable with the appropriate authorities
except that the Company is not regular in depositing income tax, value
added tax, central sales tax, land revenue, corporate dividend tax and
family pension fund contribution. However, according to the information
and explanations given to us and the records of the Company examined by
us, there are no undisputed amounts payable in respect of statutory
dues which were in arrears, as at 31st December, 2011 for a period of
more than six months from the date they became payable.
(b) According to the information and explanations given to us and the
records of the Company examined by us, there are no dues of service
tax, customs duty, wealth tax, excise duty and cess which have not been
deposited on account of any dispute. The particulars of dues of
income-tax and sales-tax as at 31st December, 2011 which have not been
deposited on account of disputes, are as follows:
Particulars of Income Tax Sales Tax which have not been deposited on
account of dispute :-
Sl Name of the Statute Nature of the Dues (in Rs.)
1 Income Tax Act,1961 Income Tax Nil
2 The West Bengal Sales
tax Act,1994 West Bengal Sales 19,370,205
Do Do 1,536,066
Do Do 8,724,464
Do Do 19,072,936
3 Central Sales Tax,1956 Central Sales Tax 2,37,701
Do Do 13,456,558
4 Assam General Sales Tax
Act,1993 Assam Sales Tax 87,127
Name of the Statue Period to which Forum where the
the amount relates dispute is pending
Income Tax Act,1961 N.A. N.A.
The West Bengal Sales
tax Act,1994 2002-03 Sr. Jt. Comm. of
Do 2003-04 Appellate & Revis
-ional Board of
Do 2004-05 Do
Do 2006-07 Do
Central Sales Tax,1956 2004-05 Appellate Authority
Do 2006-07 Sr.Jt.Comm.,South Circle
Assam General Sales Tax
Act,1993 2006-07 Commissioner of Taxes
x . The Company has no accumulated losses as at 31st December, 2011 and
it has not incurred any cash losses in the financial year ended on that
date or in the immediately preceding financial year.
xi. According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank at the
Balance Sheet date.
xii. The Company has not granted any loans and advances on the basis of
security by way pledge of shares, debentures and other securities.
xiii. The provisions of any special statute applicable to chit fund/
nidhi/ mutual benefit fund/ society 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. In our opinion and according to information and explanations given
to us, the terms and conditions of the guarantees given by the Company,
for loans taken by others from banks or financial institutions during
the year are not prejudicial to the interest of the Company
xvi. In our opinion and according to the information and explanations
given to us, on an overall basis, the term loans have been applied for
the purposes for which they were obtained.
xvii. On the basis of an overall examination of the Balance Sheet of
the Company, in our opinion and according to the information and
explanations, given to us, there are no funds raised on a short-term
basis which have been used for long-term investment.
xviii. The Company has not made any preferential allotment to parties
and Companies covered in the register maintained under Section 301 of
xix. The Company has not issued any debentures during the year.
xx. The Company has not raised any money by public issues during the
xxi. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the Management.
Membership Number 051845
For De Chakraborty & Sen
Firm Registration Number – 303029E
Kolkata, 31st August, 2012 Chartered Accountants