ANNUAL REPORT 2005-2006
The Members of
GREENLINE TEA & EXPORTS LTD.
We have audited the attached Balance Sheet of GREEN TEA & EXPORTS LTD., as
at 31st March, 2006 and also the annexed Profit & Loss Account of the
Company for the year ended on that date annex thereto. This 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.
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 the management, as well as evaluating the
overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion. And we report that:
1. The Balance Sheet and Profit and Loss Account referred to in this report
are in agreement with the Books of Account.
2. (a) In our opinion and to the best of our information and according to
the explanations given to us, the Balance Sheet and Profit and Loss Account
subject to and read together with the Notes appearing thereon in schedule
8' of significant accounting policies and notes on accounts attached
thereto, given in the prescribed manner the information required by the
Companies Act. 1956 and subject to below mentioned Notes on para 2(b) give
true and fair view.
(i) in so far as it relates to Balance Sheet, of the state of affairs of
the company as at 31st March, 2006 and
(ii) In so far as it relates to Profit & Loss Account, of the loss of the
company for the year ended on that date.
(b) (i) Note B-1 (ii) on schedule 'B' regarding adequacy or otherwise of
estimated liability for future payment of gratuity of Rs. 15,00,000.00
which is being accounted for on cash Basis.
(ii) The company has not provided interest on certain advances. The effect
of the same on current year's accounts has no been ascertained by the
3. We have obtained all the information and explanations which to the best
of our knowledge and belief were necessary for the purpose of our audit.
4. In our opinion, proper books of accounts as required by Law have been
kept by the company so as far as appears from our examinations of such
books subject to notes 2 (b) above.
5. The company has complied with the accounting standards as referred in
See 211 (3C) of the Company Act, 1956.
6. On the basis of written representations received from the Directors and
taken on record by Board of Directors, we report that none of the Directors
is disqualified as on 31st March, 2006 from being appointed as director in
terms of clause (g) of sub-section (1) of section 274 of the Companies Act,
7. As required by the Companies (Auditor's Report) order 2003, issued by
the Company law Board in terms of Section 227(4A) of the Companies Act,
1956 and on the basis of such checks as we considered appropriate and
according to information and explanation given to us during the course of
our audit we further state that :
(i) The Company has maintained proper records showing full particulars
Including quantitative details and situation of Fixed assets. The Company
has a phased programme of physical verification of its fixed assets which,
in our opinion, is reasonable having regard to the size of the Company and
the nature of its assets. Accordance with such programme, the management
has physically verified fixed assets during the year and no material
discrepancies were noticed on such verification.
(ii) The stock of inventory has been physically verified during the year by
the Management at reasonable intervals, except stock lying with the
parties. Confirmation of such stocks with third parties have been obtained
by the company in most of the cases. In our opinion, the procedures of
physical verification of Inventory followed by the management reasonable
and adequate in relation to the size of the company and the nature of its
business. The company is maintaining the proper records of inventory. The
discrepancies noticed on physical verification of stocks as compared to
books record were not material, however the same have been properly dealt
with the books of account.
(iii) As informed by the company has neither granted nor taken any loans,
secured or unsecured to or from companies, firms or other parties covered
in the register maintained under section 301 of the Companies Act, 1956
during the year. Other Loans and advances in nature of loans has been given
by the Company which are repayable on demand and without any specific
stipulation so we are unable to comment on repayment of the same.
(iv) In our opinion and according to the information and explanations given
to us, there are adequate internal control Procedure commensurate with the
size of the company and the nature of Its business with regard to purchase
of inventory' and fixed assets and with regard to the sale of goods. We
have not noted any continuing failure in correct major weakness during the
course of the audit in this regard.
(v) The Company has not purchased or entered into any transaction or
contract for purchase of goods and materials with parties as listed under
section 301 of the Companies Act, 1956 during ,the year.
(vi) The Company has not accepted any deposits from the public and
consequently, the directives issued by the Reserve Bank of India, the
provisions of Sections 58A and 58AA or any other relevant provisions of the
Companies Act, 1956 and the rules framed there under are not applicable.
(vii) In our opinion, the Company has an internal audit system commensurate
with its size and the nature of its business.
(viii) According to the information and explanations given to us, the
Central Government has not prescribed the maintenance of cost records under
clause (d) of sub-section (1) of Section 209 of the Companies Act, 1957 in
respect of service carried out by the Company.
(ix) According to the information and explanations given to us, and on the
basis of our examination of the books of account, the Company had not been
regular in depositing with appropriate authorities undisputed statutory
dues of provident fund, sales-tax, Excise duty and cess, cess on green leaf
and other statutory dues.
According to the information and explanation given to us, there were
undisputed amount outstanding as at 31.03.2006 in respect of Provident fund
amount to Rs. 26,46,515.19 Sales Tax amount to, Rs. 40,040.56 Cess on
Greenleaf amounting to Rs. 14,73,182.01 and excise duty amounting to
Rs. 2,28,443.00 for a period of more than six months from the date they
According to the information and explanation given to us, there are no dues
in respect of sales tax, customs duty, excise duty, and cess that have not
been deposited with the appropriate authorities on account of any dispute.
(x) The Company's accumulated loss at the end of the year are less than the
fifty percent of its networth. The company has incurred cash losses in the
financial year and in the immediately preceding financial year.
(xi) During the year the Company has neither taken any fresh loan from a
financial institution and a bank nor issued any debentures during the year.
Accordingly, clause 4(xi) of the order is not applicable.
(xii) The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities;
Accordingly, clause 4(xii) of the order is not applicable.
(xiii) The Company is not a chit fund, nidhi, mutual benefit fund or a
society. Accordingly, clause 4(xiii) of the order is not applicable.
(xiv) According to the information and explanations given to us, the
Company is not dealing or trading in shares securities, debentures and
other investments. Accordingly, clause 4(xiv) of the order is not
(xv) According, to the information and explanations, the company has not
given any guarantee for loans taken by others from banks or other financial
institutions. Accordingly, clause 4(xv) of the order is not applicable.
(xvi) During the year, the Company has not obtained any fresh loans.
Accordingly, clause 4(xvi) of the order is not applicable.
(xvii) According to the information and explanations given to us, the fund
raised on short term basis has not been used for long term investments.
(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. Accordingly, clause 4(xviii) of the order is not applicable.
(xix) The Company has not issued any debentures. Accordingly, clause 4(xix)
of the order is not applicable.
(xx) The Company has not raised any money by public issues during the year.
Accordingly, clause 4(xx) of the order is not applicable.
(xxi) According to the information and explanations given to us, no fraud
or by the Company has been noticed or reported during the year.
For R. K. JAGNANI & CO.
R. K. JAGNANI
Place : Kolkata
Dated : The 19th day of August, 2006