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Arcuttipore Tea Co Ltd.

BSE: 530261 Sector: Agri and agri inputs
NSE: N.A. ISIN Code: INE674C01010
BSE 15:24 | 19 Jan 2.28 -0.12
(-5.00%)
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2.28

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2.28

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NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 2.28
PREVIOUS CLOSE 2.40
VOLUME 1
52-Week high 5.50
52-Week low 2.17
P/E
Mkt Cap.(Rs cr) 1
Buy Price 2.28
Buy Qty 250.00
Sell Price 0.00
Sell Qty 0.00
OPEN 2.28
CLOSE 2.40
VOLUME 1
52-Week high 5.50
52-Week low 2.17
P/E
Mkt Cap.(Rs cr) 1
Buy Price 2.28
Buy Qty 250.00
Sell Price 0.00
Sell Qty 0.00

Arcuttipore Tea Co Ltd. (ARCUTTIPORETEA) - Auditors Report

Company auditors report

TO THE MEMBERS OF ARCUTTIPORE TEA COMPANY LIMITED

Report on the Financial Statements

We have audited the accompanying Financial Statements of ARCUTTIPORE TEA COMPANYLIMITED ("the company") which comprise the Balance Sheet as at 31st March2017 the Statement of Profit and Loss and the Cash Flow Statement of the Company for theyear ended on that date and a summary of significant accounting policies and otherexplanatory information.

Management’s Responsibility For The Financial Statements

The Company ‘s Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation andpresentation of these financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the accompanyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that are operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation of thefinancial statements that give a true and fair view and are free of material misstatementwhether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit.

We have taken into accounts the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified undersection 143(10) of the Act. Those standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free of material misstatement.

An Audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on theAuditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by Company’s Directors as well as evaluating the overallpresentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.

Basis for Qualified Opinion: -

i. Note 12.4 regarding non-provision / non-ascertainment of diminution invalue of shares held as stock in trade the eventual shortfall that may arise there fromcannot be commented upon by us.

ii. Note 12.5 regarding non-availability of shares held as stock in trade for physicalverification.

iii. Note 22.1 regarding non-provision of interest on loan taken.

iv. Note 29 regarding non-provision and basis of ascertainment of gratuity liability onthe management's estimate which may be different if ascertained on the basis of actuarialvaluation and the impact of which is not ascertainable. This is not in consonance withAccounting Standard-15 on Accounting of Retirement benefits issued by the Institute ofChartered Accountants of India (ICAI).

Due to non provisions for interest and for gratuity liability the Loss for the year islower by Rs.1646534/- (Previous year Rs.720523/-) Reserve and Surplus (Debit Balance) are lower and current liabilities at the year end are lower by Rs.18556076/-(Previous year Rs.15214923/-) (to the extent ascertained).

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matters described in the Basis for QualifiedOpinion paragraph the Financial Statements give the information required by the Act inthe manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31stMarch 2017 and its loss and its Cash Flows for the year ended on that date.

Emphasis of Matters

We draw attention to the following matters in the Notes to the Financial Statements:

Note 12.4 regarding non-provision / non-ascertainment of diminution in value of sharesheld as stock in trade the eventual shortfall that may arise there from.

Our opinion is not modified in respect of these matters.

Note 22.1 regarding non-provision of interest on loan taken.

Our opinion is not modified in respect of these matters.

Note 29 regarding non-provision and basis of ascertainment of gratuity liability on themanagement's estimate which may be different if ascertained on the basis of actuarialvaluation and the impact of which is not ascertainable. This is not in consonance withAccounting Standard-15 on Accounting of Retirement benefits issued by the Institute ofChartered Accountants of India (ICAI) i.e. on Actuarial basis.

Our opinion is not modified in respect of these matters.

Report on Other Legal and Regulatory Requirements

1. 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 bestof our knowledge and belief were necessary for the purpose of our audit

b. In our opinion proper books of account as required by law have been kept by thecompany so far as it appears from our examination of those books.

c. The Balance Sheet the Statement of Profit & Loss and the Cash Flow statementdealt with by this report are in agreement with the books of account

d. In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014

e. On the basis of written representations received from the directors and taken onrecord by the Board of Directors none of the Directors is disqualified as on 31st March2017 from being appointed as a Director in terms of Section 164(2) of the Act.

f. With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure A".

g. With respect to the other matters to be included in the Auditor’s Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company does not have any pending litigations which would impact its financialposition except to Note No 8.2 & 8.3 (Refer) to the financial statements.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

iv. The Company has provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8th November2016 to 30 th December 2016 and the same are in accordance with the books ofaccounts maintained by the Company (refer Note No.14.1).

2. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub section 11 of Section 143 of theAct we give in the "Annexure B" a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

For GORA & COMPANY
Chartered Accountants
FRN 327183E
Gora Chand Mukherjee
Place: Kolkata (Partner)
Date: 30th May 2017 Membership No. 17630

"Annexure B" to the Independent Auditors' Report of even date

Statement under Companies (Auditor's Report) Order 2016

i. (a) Proper records showing full particulars including quantitative details andsituation of its fixed assetsare being updated from time to time by the company.

(b) As explained to us the fixed assets of the Company have been physically verifiedby the management during the year. No material discrepancies were noticed on such physicalverification. In our Opinion this periodicity of physical verification is reasonablehaving regard to the size of company and nature of its assets.

(c) According to information and explanations given to us and on the basis of ourexamination of the records of the company the title deeds of immovable properties areheld in the name of the company read with Note No.9.4.

ii. (a) The Inventories of the Company have been physically verified by the managementat regularintervals. There is inventory of finished stock of tea at the year end withthird parties and confirmations for the same have not been obtained from the concernedthird parties. In our opinion and according to the information and explanations given tous no discrepancies were noticed on physical verification.

(b) In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventory followed by the management are reasonableand adequate in relation to the size of the company and nature of its business.

iii. (a) The company has taken/granted certain unsecured loan and /or advances in thenature of loans from/to the companies firms parties covered under the registermaintained under Section 189 of the Companies Act 2013. In the absence of relevantinformation and related documents/records we are unable to quantify the number ofcompanies and amount involved in the transactions. There is however interest free loan ofRs.15800000/- taken by the company from a company other than the aforesaid companiesand parties . The maximum amount of such outstanding at any time during the year wasRs.15800000/- and at the year end the balance is Rs.15800000/-. The company hasalso taken and has at the year end the remaining outstanding of interest bearingunsecured loans amounting Rs 22419994/- in aggregate (previous year RsRs.25314698/-) from several companies other than the aforesaid such companies partiesand an individual . Moreover the company has an interest free advance in the nature ofunsecured loan amounting Rs. 587068/-(previous year Rs. 4900000/-) to bodies corporateat the year end and the same are receivable on demand. The Company has made relatedparties transactions which are stated in Note 27 of the Financial Statements.

(b) In our opinion and according to the information and explanations given to us therate of interest and other terms and conditions of the said unsecured loans taken andgiven by the company are not prima facie prejudicial to the interest of the company.

(c) In respect of the said loans and interest thereon there are no overdue amountsand the principal loan amounts are repayable on demand except for the interest free longterm loan Rs.15800000/- which has been renewed for re payment within a period of 3years.

(d) In case of other loans taken and or given there is no stipulation for payment ofprincipal and interest amount except as stated in Para iii(a) and iii(c). As such we areunable to ascertain whether such terms are prejudicial to the interest of the company andwhether the said loan is overdue for repayment.

iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of sections 185 and 186 of the Companies Act2013 in respect of loans excepting loan taken from the individual pursuant to the termsand conditions of the loan agreement dated 21.01.2017 made by the individual and thecompany and investment made.

v The Company has not accepted any deposit from the public during the year.

vi. To the best of our knowledge and as explained the Central Government has notprescribed the maintenance of cost records under clause 148 (1) of the Companies Act2013 for the year for the products of the Company. No Cost Audit has been conductedduring the year.

vii. As given in Note 7.2 & 7.3 and according to the information andexplanations given to us in respect of statutory dues:

(a) The Company has been regular in depositing with the appropriate authoritiesundisputed statutory dues including Provident Fund Income Tax Sales-Tax Value Addedtax Professional Tax. Cess on Green leaf and other statutory dues with the appropriateauthorities during the year. The old statutory dues on these accounts for the earlieryears as stipulated are being deposited with the concerned authorities.

(b) According to information and explanations given to us there are no dues ofProvident Fund excepting Rs.4957652.92/- (previous year Rs.3184627/-). income taxsales tax excepting Rs.626594./- (previous year Rs.305413/-) Value Added taxexcepting Rs.284778/- wealth tax service tax professional tax excepting Rs121322/-(Previous year Rs.121322/-). custom duty excise duty or cess on green leaf exceptingRs.3671077/- (Previous year Rs.4003752/-) land Revenue tax Rs.1405943/- (previousyear Rs.1405943/-) as at 31st March 2017(including the outstandings for aperiod of more than six months from the date they became payable) outstanding on accountof any dispute other than the following:

Name of Statute Nature of Dues Amount Rs. Period to which the amount relates Forum where dispute is pending
Income tax Act 1961 Income tax Assessment per CIT (A) - IV Order dated

17.12.2013 in appeal

Asst Year 2002-03 Appettate

Tribunal

Wealth Tax Act Demand raised in the Order of regular assessment u/s 17& 16(5) 5370 Asst Year 2002-03
'Wealth Tax Act Demand raised in the Order of regular assessment u/s 17& 16(5) 15303 Asst Year 2003-04
Wealth Tax Act Demand raised on the Order f regular assessment u/s 17& 16(5) 12921 Asst Year 2004-05

viii. In our opinion and according to the information and explanations given to us theCompany has not defaulted in the repayment of dues to banks and Financial institutionexcepting overdue installments in aggregate of Rs. 302750/-( including overdue interestRs.76759/-) at the year end .The Company has not taken any loan from the government andhas not issued any debentures.

ix. Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not raised moneys by way of initial public offeror further public offer including debt instruments and term Loans. Accordingly theprovisions of clause 3 (ix) of the Order are not applicable to the Company and hence notcommented upon.

x. Based upon the audit procedures performed and the information and explanations givenby the management we report that no fraud by the Company or on the company by itsofficers or employees has been noticed or reported during the year.

xi. Based upon the audit procedures performed and the information and explanationsgiven by the management no managerial remuneration has been paid or provided inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act as the same have been wavied by the Managing Directordue to persisting losses and or loss during the year .

xii In our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause 4 (xii) of the Order are not applicable to the Company.

xiii According to the information and explanations given to us and based on ourexamination of the record of the Company transactions with the related parties are incompliance with section 177 and 188 of Companies Act 2013 and the details have beendisclosed in the Financial Statements as required by the applicable accounting standards.

xiv Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview. Accordingly the provisions of clause 3 (xiv) of the Order are not applicable tothe Company and hence not commented upon.

xv Based upon the audit procedures performed and the information and explanations givenby the management the company has not entered into any non-cash transactions withdirectors or persons connected with him. Accordingly the provisions of clause 3 (xv) ofthe Order are not applicable to the Company and hence not commented upon.

xvi The company is not required to be registered under section 45 IA of the ReserveBank of India Act 1934 and accordingly the provisions of clause 3 (xvi) of the Order arenot applicable to the Company and hence not commented upon.

For GORA & COMPANY
Chartered Accountants
FRN 327183E
Gora Chand Mukherjee
Place: Kolkata (Partner)
Date: 30th May 2017 Membership No. 17630

"Annexure A" to the Independent Auditors' Report of even date

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of ArcuttiporeTea Company Limited ("the Company") as of March 31 2017 in conjunction with ouraudit of the financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India".] These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that

receipts and expenditures of the company are being made only in accordance withauthorizations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition use ordisposition of the company's assets that could have a material effect on the financialstatements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls over Financial Reporting issued by the Institute of CharteredAccountants of India.

For and on behalf of GORA & COMPANY

Chartered Accountants FRN: 327183E

(Gora Chand Mukherjee)

Partner

Membership number: 17630

Place: Kolkata Date: 30.05.2017