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0 | Auditor's Report (Warren Tea) | Year End : Mar '12 |
1) We have audited the attached Balance Sheet of Warren Tea Limited
(the Company), as at 31st March 2012, and the related Statement
of Profit and Loss and Cash Flow Statement for the year ended on that
date annexed thereto, which we have signed 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 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 from 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 (Auditor''s Report) Order, 2003, as
amended by the Companies (Auditor''s Report) (Amendment) Order, 2004,
(together the Order), 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 give in the
Annexure a statement on the matters specified in paragraphs 4 and 5 of
the said Order.
4) The Board of Directors have approved a scheme of Arrangement for
demerger of seven of its tea estates with effect from 1st April, 2011.
Pending necessary approval the working results of the seven gardens,
proposed to be demerged, are included in the attached financial
statement.
5) Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
5.1) 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;
5.2) 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;
5.3) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
5.4) In our opinion, the Balance Sheet, Statement of Profit and Loss
and Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of Section 211 of
the Act;
5.5) On the basis of written representations received from the
directors as on 31st March 2012 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March 2012 from being appointed as a director in terms of Section
274 (1) (g) of the Act;
5.6) In our opinion and to the best of our information and according to
the explanations given to us the said accounts read together with the
notes thereon and attached thereto give, the information required by
the Act in the manner except for the non- ascertainment and
non-disclosure of value of green leaf consumed as indicated in Note no.
25 of the financial statements and read with para 4 above 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 2012
(ii) in the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
ANNEXURE TO THE AUDITORS'' REPORT
[Referred to in paragraph 3 of the Auditors'' Report of even date to the
members of Warren Tea Limited on the financial statements for the year
ended 31st March 2012]
1. In respect of fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) The fixed assets were physically verified during the year by the
management which in our opinion provides for physical verification of
all the fixed assets at reasonable intervals. According to the
information and explanations given to us, no material discrepancies
were noticed on such verification.
(c) In our opinion and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
of by the Company during the year.
2. In respect of its inventories:
(a) As explained to us, the inventory of the Company (excluding stocks
with third parties) has been physically verified during the year by the
management. In respect of stock lying with third parties, those have
substantially been confirmed by them. In our opinion the frequency of
such verification is reasonable.
(b) In our opinion, and according to information and explanations given
to us, 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) In our opinion, and according to information and explanations given
to us, the Company has maintained proper records of its inventories and
no material discrepancies were noticed on physical verification.
3. (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 Act.
(b) The Company has not taken any loans, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under section 301 of the Act.
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 with regard
to the purchase of inventory, fixed assets and for the sale of the
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 have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control system.
5. In respect of contracts or arrangements entered in the Register
maintained in pursuance of Section 301 of the Act, to the best of our
knowledge and belief and according to the information and explanations
given to us:
(a) The particulars of contracts or arrangements referred to in Section
301 that needed to be entered in the Register maintained under the said
Section have been so entered.
(b) Where transaction exceeds the value of Rs. 5 Lacs in respect of
each party during the year, the transactions have been made at prices
which appear reasonable as per information available with the Company.
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.
7. In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the cost records maintained by the Company
relating to Tea pursuant to the Companies (Cost Accounting Records)
Rules, 2011 prescribed by the Central Government under Section 209(1)
(d) of the Act, and are of the opinion that prima facie the prescribed
cost records have been maintained. We have, however, not made a
detailed examination of the cost records with a view to determine
whether they are accurate or complete.
9. According to the information and explanations given to us and the
records of the Company examined by us:
(a) The Company has been generally regular in depositing the undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Employees'' State Insurance, Income-tax, Sales-tax,
Wealth tax, Service tax, Customs duty, Excise duty, Cess and other
material statutory dues as applicable, with the appropriate authorities
except for payment of provident fund liability on enhanced food
concession amounting to Rs. 41.07 lacs, which has since been paid.
[Refer note No.25(18)].
(b) There were no arrears in respect of the aforesaid dues for a period
of more than six months from the date they became payable except as
mentioned in above para, provident fund liability on enhanced food
concession amounting to Rs.39.75 lacs which is due for more than six
months.
(c) The particulars of dues of Income-tax, Sales-tax, Wealth tax,
Service tax, Customs duty, Excise duty and Cess as applicable as at
31st March 2012 which have not been deposited on account of a dispute
are as follows:
Name of the Nature of Dues Amount Involved
Statute (in Lacs)
Income Tax Income Tax 96.34
Act 1961
25.58
Income Tax 3.13
2.06
Assam Agricultural 623.63
Agricultural Income Tax
Income Tax Agricultural 4169.32
Act, 1939 Income Tax (Net of payment
(Including the under protest
impact of Rs.685)
Rs. 623.63 as above)
Sales Tax Act Assam General 108.57
1965 Sales Tax & (Net of payment
Central Sales Tax under protest
Rs. 10.57)
Assam General 149.17
Sales Tax & (Net of payment
Central Sales Tax under protest
Rs. 2.51)
46.79
(Net of payment
under protest
Rs.17.61)
Assam Land Land Revenue Tax 55.60
Revenue
Reassessment
Act, 1936
Name of the Period to Forum where
Statute which the Dispute is Pending
amount relates
Income Tax Act 1961 2002-03 Commissioner of
2007-08 IncomeTax (Appeals)
1987-88 Income Tax Appellate
1984-85 Tribunal
Assam Agricultural
Income Tax
Act, 1939 1990-91 Deputy Commissioner
to 1993-94 of Taxes (Appeals)
1986-87 to Gauhati High Court
1998-99,2000-01
Sales Tax Act 1965 1990-91 to Deputy Commissioner
1994-95, of Taxes-Assam
1996-97 to 1998-99
1997-98 to Commissioner of
1998-99, Taxes-Assam
2004-05 to 2006-07
1990-91, Gauhati High Court
1997-98 to 1998-99,
2004-05
Assam Land Revenue
Reassessment
Act,1936 2003-04 to Additional Deputy
2007-08 Commissioner
10. The Company does not have accumulated losses as at 31st March 2012
and it has not incurred any cash losses in the financial year ended on
that date or in the immediately preceding financial year.
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 banks at the Balance Sheet date. The
Company had neither any outstanding debenture nor loan from any
financial institution nor has it issued any debenture during the year.
12. 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.
13. In our opinion, the provisions of any special statute applicable to
chit fund/ nidhi / mutual benefit fund/societies are not applicable to
the Company.
14. In our opinion and according to the information and explanations
given to us, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
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. Accordingly, the
provisions of clause (xv) of Paragraph 4 of the Order are not
applicable to the Company.
16. The Company has not taken any term loan during the year.
17. 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.
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.
19. The Company has not issued any debentures and accordingly the
question of creation of securities in this regard does not arise.
20. The Company has not raised any money from public issue during the
year.
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 instances of
material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of such case by the management.
For Singhi & Co. For B.M. Chatrath & Co.
Firm Registration Firm Registration
Number: 302049E Number:301011E
Chartered Accountants Chartered Accountants
Pradeep Kumar Singhi A. Chatrath
Partner Partner
Kolkata,
30th January, 2013 Membership Number:
50773 Membership Number:
52975 |
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| Source : Dion Global Solutions Limited | |
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