You are here » Home » Companies » Company Overview » Arcuttipore Tea Co Ltd

Arcuttipore Tea Co Ltd.

BSE: 530261 Sector: Agri and agri inputs
NSE: N.A. ISIN Code: INE674C01010
BSE LIVE 15:22 | 06 Dec 2.88 -0.15
(-4.95%)
OPEN

2.90

HIGH

2.90

LOW

2.88

NSE LIVE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 2.90
PREVIOUS CLOSE 3.03
VOLUME 227
52-Week high 7.10
52-Week low 2.86
P/E
Mkt Cap.(Rs cr) 1.45
Buy Price 2.88
Buy Qty 1027.00
Sell Price 0.00
Sell Qty 0.00
OPEN 2.90
CLOSE 3.03
VOLUME 227
52-Week high 7.10
52-Week low 2.86
P/E
Mkt Cap.(Rs cr) 1.45
Buy Price 2.88
Buy Qty 1027.00
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 March2015 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 preparationand presentation of these financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies (Accounts ) Rules 2014 . This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the accompany and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies ; making judgments andestimates that are reasonable and prudent ; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free ofmaterial misstatement whether due to fraud or error.

Auditor’s 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 statement 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 but not for the purpose ofexpressing an opinion on whether the company has in place an adequate internal financialcontrols over financial reporting and the operating effectiveness of such controls. Anaudit also includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by Company’s Directors as well asevaluating the overall presentation 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. Note12.4 regarding non-provision / non-ascertainment of diminution in value ofshares held as stock in trade the eventual shortfall that may arise there from cannot becommented upon by us.

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

iii. Note 13.1 regarding sundry receivables aggregating to Rs. 20000/- (Previous yearRs. 200069/-) the eventual recovery of which and extent of provision there against ifany cannot be ascertained.

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 which loss for the year is lower by Rs442033/-( Previous year Rs. 412128/-) Reserve and Surplus are higher and currentliabilities at the year end are lower by Rs 12005963/- (Previous year Rs.11679382/-)(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 2015 and 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 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 the Companies (Auditor's Report) Order 2015 issued by the CentralGovernment of India in terms of Sub Section 11 of Section 143 of the Companies Act wegive in the Annexure a statement on the matters specified in paragraphs 3 and 4 of theOrder to the extent applicable..

2. 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 Statement of Profit & Loss and Cash Flow statement dealt withby 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 March2015 from being appointed as a Director in terms of Section 164(2) of the Act .

f 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 has disclosed the impact of pending litigation on its financial positionin its financial statements – Refer note 30 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. .

For GORA & COMPANY
Chartered Accountants
FRN 327183E
Gora Chand Mukherjee
Place: Kolkata (Partner)
Date: 30th May 2015 Membership No. 17630

ANNEXURE TO THE AUDITORS’ REPORT

(Referred to in paragraph 1 of our report of even date)

Re: ARCUTTIPORE TEA COMPANY LIMITED

On the basis of such checks as we considered appropriate and according to theinformation and explanations given to us during the course of audit we state that:

i. (a) Proper records showing full particulars including quantitative details andsituation of its fixed assets are 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 which in our opinion is reasonable having regard tothe size of company and nature of its assets. No material discrepancies were noticed onsuch physical verification.

(c) The company has not disposed any fixed assets during the year.

ii. (a) The Inventories of the Company have been physically verified by the managementand the frequency of verification is reasonable. There is inventory of finished stock oftea at the year end with third parties and confirmations for the same have not beenobtained from the concerned third parties.

(b) In our opinion and according to the information and explanation 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.

(c) In our opinion and according to the information and explanation given to us theCompany is maintaining proper records of its inventories and no discrepancies were noticedon physical verification of stocks with book record.

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 we are unable to quantify the number of companies andamount involved in the transactions. There are however interest free loan ofRs.15800000/- taken by the company from a company other than the aforesaid companies.The maximum such amount outstanding at any time during the year was Rs.15800000/- andat the year end balance is Rs.15800000/-. The company has also taken interest bearingunsecured loans amounting Rs 24300698/- in aggregate .( previous year RsRs17155003/-) from several companies other than the aforesaid companies and the saidloan amounts are outstanding at the year end and repayable on demand. Moreover thecompany has given an interest free advance in the nature of unsecured loan amounting Rs.3500000/-.(previous year Rs. 2500000/-) to bodies corporate company and the same arereceivable on demand. The Company has made related parties transactions which are statedin 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 is repayable over a period of 5 years.

(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 theprevailing internal control system needs to be strengthened to commensurate with the sizeof the company and the nature of its business for purchases/inventory and fixed assetsand for sale of goods.

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/services of the Company. No Cost Audit has beenconducted during the year.

vii. (a) As given in Note 7.2 & 7.3 and according to the information andexplanations given to us the company is regular during the year in depositing with theappropriate authorities undisputed statutory dues in respect of Provident Fund IncomeTax Sales-Tax Professional Tax. Provident Fund dues and Cess on Green leaf and otherstatutory dues for the year with the appropriate authorities wherever applicable. Theold statutory dues on these accounts for the earlier years as stipulated are beingdeposited with the concerned authorities.

(b) According to information and explanations given to us there are no dues ofProvident Fund excepting Rs. 3856212/-( previous year Rs.4576212/-). income tax salestax excepting Rs.197656/- ( previous year Rs 65557/-) wealth tax service taxprofessional tax excepting Rs Nil (Previous year Rs. 91562/-). custom duty excise dutyor cess on green leaf excepting Rs.4663702/-(Previous year Rs. 4957072/-) landRevenue tax Rs. 1301364/- (previous year Rs. 1218874/-) as at 31st March2015 for a period of more than six months from the date they became payable outstandingon account of 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 Order U/s 154/251/254/143(3) dated24.12.2013 of the Income Tax in respect of regular assessment u/s143(3) of the Act as against total demand for Rs. 248.47 lakhs as on 31.03.2013 referred by the Department to Income Tax Appellate Tribunal Notice appeal no 912/ kol/2014 dated 13/05/2014 Refund of Rs. 1358214 against demand For Rs. 20099643 Asst Year 2002-03 The effect of Appettate Tribunal is pending.
Appeal against Order of regular assessment u/s143(3) of the Act as against total demand for Rs. 63.43 lakhs as on 31.03.2013 as per Tax Recovery Certificate no 223 dated 14.01.2013 3964196 Asst year 2003-04 The appeal preceding is under progress. The final Appeal order yet to be received.
Wealth Tax Act Demand raised in the Order of regular assessment u/s 17& 16(5) 5370 Asst Year 2002-03
Demand regular raised in the Order of assessment u/s 17& 16(5) 15303 Asst Year 2003-04
Demand raised on the Order f regular assessment u/s 17& 16(5) 12921 Asst Year 2004-05

viii. The accumulated losses of the company as at the end of the year areRs.123579565. The said amount as shown in Note 2 are more than the net worth of theCompany. However the Company has incurred cash losses during the financial year coveredby our audit and in the immediately preceding financial year.

ix. The Company did not have any outstanding dues to financial institutions banks ordebentures holders during the year.

x. According to information given to us the company has not given any guarantee forloans taken by others from banks or financial institution.

xi. The Company did not have any term loan except from a body corporate outstandingduring the year.

xii. During the course of our examination of the books of account carried out inaccordance with generally accepted auditing practices in India and according to theinformation and explanations given to us we have neither come across any instance offraud on or by the company nor have we been informed of any such case by the management.

For GORA & COMPANY
Chartered Accountants
FRN 327183E
Gora Chand Mukherjee
Place: Kolkata (Partner)
Date: 30th May 2015 Membership No. 17630

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard