| We have audited the accompanying standalone financial statements of
LEDO TEA COMPANY LIMITED ("the Company"), which comprise the Balance
Sheet as at 31st March, 2015 and the Statement of Profit and Loss, the
Cash Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone 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 principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, 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.
Auditor's Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. 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 the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, 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 financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone 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, of the state of affairs of the Company as
at 31st March, 2015, and its profit and its cash flows for the year
ended on that date.
Emphasis of Matter
We draw attention to the Note no. 25 of the financial statement
regarding non provision in respect of part of gratuity as per
Accounting Standard 15 (Revised 2005) amounting to Rs. 40.06 lacs upto
31st March 2015(PY Rs. 29.10 lacs). Our report is not modified in
respect of this matter.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor's Report) Order, 2015 ("the
Order"), issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Companies Act, 2015, we give in
the Annexure a statement on the matters specified in paragraphs 3 and 4
of the Order, to the extent applicable.
As required by Section 143 (3) of the Act, we report that:
a We have sought and 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 it appears from our examination of those
books
c The Balance Sheet, the Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d Except for the effects of the matter described in the Emphasis of
Matter in the paragraph above, in our opinion, the aforesaid standalone
financial statements comply with the Accounting Standards specified
under Section 133 of the Act, read with Rule 7 of the Companies
(Accounts) Rules, 2014.
e On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
f The matters describes in the 'Emphasis of Matter' paragraph above, in
our opinion, may not have an adverse effect on the functioning of the
company.
g With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i) The Company has disclosed the impact of pending litigations on its
financial position in its financial statements as stated in Note No. 29
to the financial statements.
ii) The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses
iii) There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT
The Annexure referred to in paragraph 1 with the heading "Report on
other legal and regulatory requirements" of Our Report of even date to
the members of Ledo Tea Company Limited on the Financial Statements of
the Company for the year ended 31st March, 2015. i) 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 of the Company have been physically verified by the
management and no material discrepancies have been noticed on such
physical verification. In our opinion, the frequency of verification is
reasonable.
ii) In respect of Inventory:
a) As explained to us inventories were physically verified during the
year by the management at reasonable intervals.
b) In our opinion and based on management representation, the
procedures of physical verification of inventories followed by the
management were reasonable and adequate in relation to the size of the
Company and the nature of its business.
c) In our opinion and according to the information and explanation
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
iii) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
not granted any loans, secured or unsecured, to companies, firms or
other parties covered in the register maintained under section 189 of
the Companies Act, 2013. Consequently, the provisions of clauses iii
(a) and iii (b) of the order are not applicable to the Company and
hence, not commented upon.
iv In our opinion and according to the information and explanations
given to us there is generally an adequate internal control procedure
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventories, Fixed assets and sale
of goods. During the course of our audit, no major instance of
continuing failure to correct any weakness in the internal controls has
been noticed.
v The Company has not accepted any deposit from the public covered
under Section 73 to 76 of the Companies Act, 2013.
Therefore, the provisions of the clause 4 (v) of the Order are not
applicable to the Company.
vi We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209(1)(d) of the
Companies Act, 1956 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
determining whether they are accurate or complete.
vii (a) According to the information and explanation given to us and on
the basis of our examination of the records of the company, amounts
deducted/accrued in the books of account in respect of undisputed
statutory dues including Provident Fund, Income Tax, Sales Tax, Service
Tax, Value Added Tax, cess or other material statutory dues have been
generally regularly deposited during the year by the Company with
appropriate authorities.
According to the information and explanation given to us no undisputed
statutory dues including Provident Fund, Income Tax, Service Tax, Value
Added Tax, cess or other material statutory dues were in arrears as at
31st March 2015 for a period of more than six months from the date they
become payable except in following cases:
Nature Assessment
Year Forum Amount
Agricultural
Income Tax 1989-90 Agricultural Income Tax Officer,
Assam 6,492.00
Agricultural
Income Tax 1998-99 Agricultural Income Tax Officer,
Assam 14,660.00
Agricultural
Income Tax 1999-00 Agricultural Income Tax Officer,
Assam 420.00
Agricultural
Income Tax 2000-01 Agricultural Income Tax Officer,
Assam 1,11,581.00
b). According to the information and explanation given to us, the
following dues of Sales-Tax have not been deposited by the company on
account of dispute as at 31st March 2015.
Nature Assessment
Year Forum Amount
involved
Sales Tax 2007-08 Joint Commissioner of Taxes, Assam 4,27,165.00
Sales Tax 2008-09 -do- 4,66,173.00
Sales Tax 2010-11 -do- 3,51,155.00
c). According to the information and explanation given to us there
were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company.
viii The company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year.
However, the company has incurred cash losses in the immediate
preceding financial year.
ix The Company has not defaulted in repayment of dues to financial
institutions or banks. There were no debentures outstanding during the
year.
x According to the information and explanations given to us, the
Company has not given any guarantees for loan taken by others from a
bank or financial institutions.
xi According to the information and explanations given to us by the
management, term loans were applied for the purpose for which the loans
were obtained.
xii Based on the audit procedures performed and the information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the year, nor have we been informed
of such case by the management.
For DAS & PRASAD
Chartered Accountants
(Firm's Registration No. 303054E)
P. K. AGARWAL
Place : Kolkata Partner
Date : 30th May 2015 Membership No.056921 |