We have audited the attached Balance Sheet of M/S. HANUMAN TEA COMPANY
LIMITED, as at 31st March, 2005 and the annexed profit & Loss Account
and cash flow statement for the Year ended on that date, annexed
thereto, and further report that:
1A. These financial statement are the responsibility of the Companys
management. Our responsibility is to express an opinion on these
financial statement based on our audit.
1B. We have conducted our audit in accordance with auditing standards
generally accepted in India. These standards require that we plan and
perform the audit to obtain reasonable assurance about whetherthe
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 estimated made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
2. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of Sub-section (4A) of
Section 227 of the Companies Act, 1956, we enclose in the annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
3. (i) The accounts of the Company have been prepared on the basis of
going concern assumption However, in view of the fact that the company
has incurred losses to the tune of Rs 499.57 Lacs, the company is not
in a position to honour its commitments towards various secured and
unsecured liabilities including its borrowings from its various
financial and banking insinuation. We are unable to express our opinion
on the ability of the company to continue as a going concern in this
(ii) Attention is invited to Clause X of CARO, 1998 regarding the
references made by Company before BlFR for the Annual Report for the
year ended 31/3/2003. BIFR has registered the second Reference vide
Case No. 382/2003. Further reference is made to BIFR for the Annual
Report for the year ended 31/3/04. BIFR registered the Third reference
Vide Case No. 358/2004.
4. Further to our comments in the annexure referred to above and given
in Point No. 3 aforesaid and subject to Note No. 4 of schedule -18
relating to notes on Accounts, 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
b) In our opinion, proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of
those books maintained.
c) The Balance Sheet and Profit & Loss Account dealt with by in this
report are in agreement with the books Of account.
d) In our opinion, the Balance Sheet and Profit & Loss Account dealt
with by this report comply with the accounting standards referred to In
Sub-section (3C) of section 211 of the Companies Act, 1956.
e) On the basis of written representations received from the Directors,
as on 31st March 2005, and taken on record by the Board of Directors,
we report that none of the Directors Is disqualified as on 31 st March,
2005 from appointed as a Director in terms of clause (g) of Sub-section
(1) of section 274 of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
explanation given to us, the said accounts give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with the accounting principle
generally accepted in India.
i) In the case of Balance Sheet, of the state of Affairs of the Company
as at 31st March, 2005, and ii) In the case of Profit & Loss Account of
the loss of the Company for the year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
Annexure referred to in paragraph 3 of the Auditors Report of even
date to the Member of HANUMAN TEA COMPANY LIMITED on the accounts for
the year ended 31st March, 2005;
(i) [a] The company has not maintained proper records showing full
particulars including quantitave details and sitations of Fixed Assets.
[b] As per information and explanations given to us, there is a phased
programme of physical verification or fixed assets adopted by the
Company and no material discrepancies were noticed on such
verification. In our opinion, the frequency of verifications
reasonable, having regard to the size of the Company and nature of its
(ii) [a] As per the information furnished the inventories have been
physically verified by the management during the year. In our opinion
the frequency of verification is reasonable.
[b] In our opinion, the procedure of physical verification of
inventories followed by the management are reasonable and adequate in
relation to the size of the Company and nature of the business.
[c] On the basis of our examination of inventory records, in our
opinion, the Company is maintaining proper record inventory. The
discrepanies noticed on physical verification of Inventory as compared
to book records were not material.
(iii) The Company has neither granted nor taken any loan, secured or
unsecured, to/from Company, firms or other parties covered in the
registermaintained under Section 301 of the Act. As the company has not
granted / taken any loans, secured or unsecured, to / from companies
firms etc., listed in the register maintained under section 301 of the
Act, paragraph 3(b), 3(c) and 3(d) of the Order, are not applicable.
(iv) In our opinion, and according to information and explanations to
us, there are adequate internal control procedure commensuate with the
size of the Company and the nature of its business with regard to
purchase of inventory and fixed assets and for the sale of goods .
During the course of our audit, no major weakness has been noticed in
the internal control,
(v) Based on the audit procedure applied by us. and according to the
information and explanation provide by the management, we are of the
opinion that during the year, there has been no transaction that needed
to be entered to the register maintained under section 301 of the
Companies Act, 1956. Accordingly, Clause 4 (v)(b) of the said Order is
(vi) The Company has not accepted any deposit from the public within
the meaning of the provisions of Section 58A and 58AA of the Companies
(vii) In our opinion, the Company has an Internal audit system
commensurate with the sue of the Company and the nature of its
(viii) The Central Government has prescribed maintenance of the cost
records under section 209(1)
[d] of the Companies Act, 1956 In recpect of one of the product of the
Company. We have broadly reviewed the accounts and records of the
Company In this connection and are of the opinion that prima facie, the
prescribed accounts and records have been made and maintained. We have
not, however, made a detailed examination of the records.
(ix) According to the information and explanations given to us and
records examined by us, the Company is regular in depositing, with the
appropriate authorities, undisputed statutory dues including income
tax, wealth tax, custom duty, cees, and other dues. However during the
year, there are delays in depositing, with the appropriate authories,
undisputed statutory dues in respect of Provident Fund, employees
state Insurance, excise duty dues. According to the information and
explanations given to us, no undisputed arrears of the statutory dues
were outstanding as at 31st March, 2005, for a period of more than six
months from the date they become payable.
(x) The accumulated losses has exceed the net worth of the Company as
on 31.03.2005 as such the Company has become a sick industrial Company
within the meaning of Section 3(1)(0) of the sick Industrial Companies
(special Provisions) Act, 1985. For the year ended 31/3/2003 the
Company had made applicable to BIFR, BIFR has registered vide case no.
382/2003. Further reference is made to BIFR for the Annual Report for
the year ended 31/3/2004. BIFR has registered the third vide Case No.
(xi) According to the records of the Company examined by us and
information and explanation given to us, the Company as defaulted In
repayment of the dues to financiel Instituations and bank as at the
Balance Sheet date.
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
(xiii) The provisions of any special statute applicable to chit fund /
Nidhi / mutual benefit fund / societies are not applicable to the
(xiv) In our opinion, the Company is not a dealer or trader in share,
securities, debentures and other investments.
(xv) In our opinion, and according to the explanations and information
given to us, the Company has not given any guarantee for loans taken by
others from Banks or financial instituations during the year.
(xvi) In our opinion, and according to the explanations and information
given to us, on an overall basis, the term loans have not been
(xvii) On the basis of an overall examination of the balance sheet of
the Company, in our opinion and according to the information and
explanation given to us, there are no funds rise on short term bais,
which have been used for long term investment.
(xviii) The company has not made any preferential allotment of shares
during the year,
(xix) There are no secured debentures outstanding as at the year end.
(xx) The Company has not raised any money by public issues during the
(xxi) To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
has been noticed or reported during the course of our audit.
For and on behalf of
R. K. BHATTER & COMPANY
Kolkata Chartered Accountants
11th August, 2005 (R. K. Shatter)