Mcleod Russel (India)
BSE: 532654 | NSE: MCLEODRUSS | ISIN: INE942G01012 | Plantations - Tea & Coffee
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| Auditor's Report | Year End : Mar '09 |
1. We have audited the attached Balance Sheet of McLeod Russel India
Limited, as at 31st March, 2009, and the related Profit and Loss
Account and Cash Flow Statement for the year ended on that date annexed
thereto, which we have signed under reference to this report. The
aforesaid financial statements incorporate the transactions relating to
the Companys Marketing and Representative Office, United Kingdom. We
have audited these transactions on the basis of returns, records,
information and explanations received from this office which we have
not visited. These financial statements are the responsibility of the
Companys management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with the 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
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003, as
amended by the Companies (Auditors Report) (Amendment) Order, 2004
issued by the Central Government of India in terms of sub-section (4A)
of Section 227 of The Companies Act, 1956 of India (the Act) and on
the basis of such checks of the books and records of the Company as we
considered appropriate and according to the information and
explanations given to us, we further report that :-
3.1 (a) The Company has maintained proper records to show full
particulars including quantitative details and
situation of its fixed assets.
(b) The fixed assets of the Company are physically verified by the
management according to a phased programme designed to cover all the
items over a period of three years, which in our opinion, is reasonable
having regard to the size of the Company and the nature of its assets.
Pursuant to the programme, a portion of the fixed assets has been
physically verified by the management during the year and no material
discrepancies between the book records and the physical inventory have
been noticed.
(c) In our opinion and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
off by the Company during the year.
3.2 (a) The inventory (excluding stocks with third parties) has been
physically verified by the management during the year. In respect of
inventory lying with third parties, these have substantially been
confirmed by third parties and/or were verified with reference to
subsequent sale. In our opinion, the frequency of verification is
reasonable.
(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) On the basis of our examination of the inventory records, in our
opinion, the Company has maintained proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
3.3 (a) The Company has granted unsecured demand loan to a company
covered in the register maintained under Section 301 of the Act. Both
the maximum amount involved during the year and the year- end balance
of such loan amounts to Rs. 460.00 lakhs.
(b) In our opinion, the rate of interest and other terms and conditions
of such loans are not prima facie prejudicial to the interest of the
Company.
(c) In respect of the aforesaid loan, repayment of the principal amount
and the payment of interest were not due at the year end.
(d) 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 Act.
3.4 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. There is
no sale of services during the year. 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 have been informed of any continuing failure to correct
major weaknesses in the aforesaid internal control system.
3.5 (a) In our opinion and according to the information and
explanations given to us, the particulars of contracts
or arrangements referred to in Section 301 of the Act have been entered
in the register required to be maintained under that section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements and exceeding the value of Rupees Five Lakhs in respect of
any party during the year have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
3.6 The Company has not accepted any deposits from the public within
the meaning of Sections 58A and 58AA of the Act and the rules framed
there under.
3.7 In our opinion, the Companys has an internal audit system
commensurate with its size and nature of its business.
3.8 We have broadly reviewed the books of account maintained by the
Company in respect of product 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 that 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.
3.9 (a) According to the information and explanations given to us and
the records of the Company examined by us, in our opinion, the Company
has generally been regular in depositing during the year the undisputed
statutory dues including provident fund, investor education and
protection fund, income tax, sales tax, wealth tax, service tax,
customs duty, excise duty, cess and other material statutory dues as
applicable with the appropriate authorities. As explained by the
management, Employees State Insurance Scheme is not applicable to the
Company.
(b) According to the information and explanations given to us and the records
of the Company examined byus, the particulars of dues of income tax,
sales tax, wealth tax, service tax, customs duty, excise dutyand
cess as at 31st March, 2009 which have not been deposited on
account of a dispute, are asfollows :-
Name of Nature of Amount
the statute dues (Rs. lakhs)
Central Sales Sales Tax 0.82
Tax Act
Sales Tax 2.23
Assam General Sales Tax 23.32
Sales Tax Act
West Bengal Sales Tax 1.16
Sales Tax Act
Finance Act Service Tax 0.52
Income Tax Act Income Tax 6.63
Income Tax 18.11
Fringe Benefit Tax 121.94
Period to which Forum where
the amount relates the dispute is pending
2001-02 Deputy Commissioner
of Taxes (Appeals)
2005-06 Deputy Commissioner
of Taxes
1999-00 Gauhati High Court
1994-95 Sales Tax Appellate
Tribunal
2004-05 and Superintendent of
2005-06 Central Excise
2004-05, and Deputy Commissioner
2005-06. of Taxes
2006-07 CIT Appeals
2006-07 CIT Appeals
3.10 The Company has no accumulated losses as at 31st March, 2009 and
it has not incurred any cash losses in the financial year ended on that
date or in the immediately preceding financial year.
3.11 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 bank at the Balance Sheet date. The Company
has neither any outstanding dues to any debenture holders or financial
institutions at the beginning of the year nor it obtained any such
loans during the year.
3.12 The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
3.13 The provisions of any special statute applicable to chit fund /
nidhi / mutual benefit fund/societies are not applicable to the
Company.
3.14 In our opinion, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
3.15 In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions during the year.
3.16 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.
3.1,7 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, funds raised on a short term basis have, to
the extent of Rs.12054.16 lakhs, been utilised for long term
investments (mainly fixed assets).
3.18 The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act during the year.
3.19 The Company has not issued any debentures and accordingly the
question of creation of securities in this regard does not arise.
3.20 The Company has not raised any money by public issues during the
year.
3.21 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.
4. Further to our comments in paragraph 3 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
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, the Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(d) In our opinion, the Balance Sheet, the Profit and Loss Account and
the Cash Flow Statement dealt with by this report comply with the
applicable accounting standards referred to in sub-section (3C) of
Section 211 of the Act;
(e) On the basis of written representations received from the directors
and taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 2009 from being appointed as a director
in terms of clause (g) of sub-section (1) 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 give,
subject to Note 20(b) on Schedule 17 to the Accounts regarding non
ascertainment of value of green leaf consumed, in the prescribed manner
the information required by the Act and also 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 31st March, 2009;
(ii) in the case of the Profit and Loss Account, 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.
(P.Law)
Partner
Membership No. 51790
For and on behalf of
PRICE WATERHOUSE
Place: Kolkata Chartered Accountants
Date : 3rd June, 2009 |
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