1. Report on the Financial Statements
We have audited the accompanying financial statements of Tyroon Tea
Company Limited (the Company) which comprise the Balance Sheet as at
31st March, 2013 and the Statement of Profit and Loss and Cash Flow
Statement for the year ended, and a summary of significant accounting
policies and other explanatory information.
2. Management''s 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 or error.
3. Auditor''s 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 about 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 auditor''s judgement, 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 Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluatiing 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
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
4. Basis for Qualified Opinion
a ) Computation of income tax based on certain opinion / interpretation
and their impact, if any, are currently not ascertainable (Note 10
b) Investments in respect of which eventual shortfall in value thereof
and recoverability of advances and their impact, if any are currently
not ascertainable (Note no. 12 (b) and 12(c) and;
c ) Certain loans which have become overdue for re-payment in respect
of which eventual shortfall in values thereof and their impact, if any,
are currently not ascertainable (Note 13(a)).
In our opinion and to the best of our information and according to the
explanations given to us, except for the effects of the matter
described in the Basis for Qualified Opinion paragraph, 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 :
a) In the case of the Balance Sheet, of the state of affairs of the
company as at 31st March, 2013;
b) In the case of the Statement of Profit and Loss , of the profit for
the year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
6. Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor''s Report) Order, 2003 (the
Order) issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
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 purposes of our
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
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
d. In our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in sub-section (3C) of section 211 of the Companies Act, 1956, and
e. On the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE REFERRED TO IN PARAGRAPH 6 OF OUR REPORT OF EVEN DATE
i) (a) The company has maintained proper records showing full
particulars including quantitative details and situations of fixed
(b) The Fixed assets of the company were physically verified by the
management according to phased program of verification, which in our
opinion is reasonable having regard to the size of the Company and the
nature of its business. Discrepancies noticed on such verifications
were not material.
(c) The company has not disposed off a substantial part of its fixed
assets during the year, which affect its going concern status.
ii) (a) As explained to us, the inventories of the Company except
materials lying with the third parties have been physically verified by
the Management at reasonable intervals during the year/at the year end.
In our opinion and according to information and explanations given to
us, the frequency of the verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedure of physical verification of inventories
except in respect of materials lying with third parties followed by the
Management is reasonable and adequate in relation to the size of the
Company and nature of its business.
(c) On the basis of examination of the records of Inventory and
according to the information and explanations given to us, we are of
the opinion that the Company is maintaining proper records of
Inventory. Discrepancies noticed on the physical verification of stocks
were not material.
iii) On the basis of examination of the records and according to the
information and explanations given to us, the company has not
taken/granted any loans, secured or unsecured to Companies, firms, or
other parties covered in the register maintained under section 301 of
the Act during the year. Accordingly, the provisions of clause 4(iii)
(b) to (g) of the order are not applicable to the company.
iv) 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 nature of its business with regard to
the purchase of Inventory, Fixed Assets and sale of goods. During the
course of our audit we have not observed any continuing failure to
correct major weakness in internal control system.
v) According to the information and explanations given to us, there are
no transactions that need to entered into the register in pursuance of
section 301 of the Act. Accordingly, the provisions of clause 4(v) (b)
of the order are not applicable to the company.
vi) The company has not accepted any deposits from the public during
the year within the meaning of the provisions of section 58A, 58AA or
any other relevant provision of the Act and rules made thereunder.
vii) The Company has an internal audit system which covers certain
specific areas of operations/ process and therefore the scope thereof
needs to be enlarged and the system followed needs to be further
viii) As explained to us, the Central Government has prescribed the
maintenance of cost records under section 209(1)(d) of the Act for
manufacture of tea. The Company is in the process of compiling such
records. However in the absence of these records we have not been able
to carry out the review of the same.
ix) According to the information and explanations given to us and as
per the records of the Company, the Company is regular in depositing
with appropriate authorities undisputed statutory dues including
Provident Fund, Investor Education and Protection Fund, Employees State
Insurance, Income Tax, Professional Tax, Sales Tax, Wealth tax, Service
Tax, Excise Duty, Cess and any other statutory dues applicable to it.
However, according to the information and explanation given to us,
there is no undisputed amounts payable in respect of these which were
in arrears as on 31st March, 2013 for a period of more than six months
from the date they became payable.
x) There are no accumulated losses as at the close of the financial
year. The Company has not incurred cash losses during the year and in
the immediately preceding previous financial year.
ix) Based on our examination of documents and records and according to
information and explanations given to us, the company has not defaulted
in repayment of dues to Financial Institutions and banks. There are no
xii) Based on our examination of documents and records and according to
the information and explanations given to us, the company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
xiii) The company is not a Chit fund or a Nidhi/Mutual benefit
fund/society. Accordingly, the provisions of the clause 4(xiii) of the
Order are not applicable to the Company.
xiv) The Company is not dealing and trading in shares, securities,
debentures and other investments. Accordingly, the provisions of
clause 4(xiv) of the Order are not applicable to the company.
xv) 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.
xvi) As per the information and explanation given to us, the Company
has not availed fresh term loan during the year.
xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the company, we report
that the Company has not utilized short term funds for long term
xviii) 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.
xix) On the basis of the examination of the records, the company has
not issued any debentures.
xx) The Company has not raised any money by public issue during the
xxi) During the course of our examination of the books of accounts
carried out in accordance with generally accepted auditing practices in
India, we have neither come across any incidence of fraud on or by the
company nor have we been informed of any such case by the Management.
For Lodha & Co.
Firm ICAI Registration No. : 301051E
Place: Kolkata (H. S. Jha)
Dated: the 14th day
of May, 2013 Partner
Membership No. 55854