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Ledo Tea Company Ltd.

BSE: 508306 Sector: Agri and agri inputs
NSE: N.A. ISIN Code: INE643B01017
BSE 15:14 | 23 Feb 69.90 -3.65
(-4.96%)
OPEN

69.90

HIGH

69.90

LOW

69.90

NSE 05:30 | 01 Jan Ledo Tea Company Ltd
OPEN 69.90
PREVIOUS CLOSE 73.55
VOLUME 44
52-Week high 93.00
52-Week low 65.20
P/E
Mkt Cap.(Rs cr) 6
Buy Price 69.95
Buy Qty 87.00
Sell Price 0.00
Sell Qty 0.00
OPEN 69.90
CLOSE 73.55
VOLUME 44
52-Week high 93.00
52-Week low 65.20
P/E
Mkt Cap.(Rs cr) 6
Buy Price 69.95
Buy Qty 87.00
Sell Price 0.00
Sell Qty 0.00

Ledo Tea Company Ltd. (LEDOTEA) - Auditors Report

Company auditors report

TO THE MEMBERS OF "LEDO TEA COMPANY LIMITED"

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Ledo Tea CompanyLimited ('the Company') which comprise the Balance Sheet as at 31st March 2017 theStatement of Profit and Loss and the Cash Flow Statement for the year then ended and asummary 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 Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparationand presentation of these standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

We have taken into account 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 thereunder.

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 from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditors' judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial controls relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof 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 standalone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2017 and its loss and its cash flows for the year ended on that date.

Emphasis of Matter

We draw attention to note no 25 of the financial statement that the Company has notmade provision for part of gratuity liability as per actuarial valuation as per AccountingStandard 15-Employee Benefits.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditors' Report) Order 2016 ("the Order")issued by the Central Government of India in terms of subsection (11) of section 143 ofthe Act we give in the Annexure A a statement on the matters specified in paragraphs 3and 4 of the Order.

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 purposes of our audit;

b. in our opinion proper books of accounts 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 and loss and the cash flow Statementdealt with by this Report are in agreement with the books of accounts;

d. in our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;

e. the matter described in Emphasis of Matters paragraph above in our opinion may nothave an adverse effect on the functioning of the Company.

f. on the basis of the written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in terms of Section164 (2) of the Act;

g. 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 B"; and

h. with respect to the other matters to be included in the Auditors' 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 litigations on its financialposition in its financial statements as stated in Note no 28 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 30th December 2016 and these are in accordance with the books of accountsmaintained by the Company. Refer Note no 31 to the financial statements.

For Das & Prasad
Chartered Accountants
(Firm's Registration No. 303054E)
P. K. Agarwal
Place : Kolkata (Partner)
Date : 30th May 2017 Membership No. 056921

Annexure - A to the Auditors' Report

The Annexure referred to Independent Auditors' Report to the members of the Company onthe standalone financial statements for the year ended 31st March 2017 we report that:

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of the fixed assets.;

(b) The fixed assets were physically verified during the year by the Management inaccordance with a regular programme of verification which in our opinion provides forphysical verification of all the fixed assets at reasonable intervals. According to theinformation and explanations given to us no material discrepancies were noticed on thesuch verification;

(c) As per information and explanation given to us by the management and the recordsverified by us and based on the examination of the registered sale deed provided to us wereport that all the immovable properties including land are held in the name of theCompany as at the balance sheet date except certain portion of the leasehold land which ispending for title clearance.

(ii) In our opinion the inventories were physically verified during the year by theManagement at reasonable intervals and as explained to us no material discrepancies werenoticed on physical verification.

(iii) According to the information and explanations given to us and on the basis of ourexamination of the books of accounts the Company has not granted any loans secured orunsecured to companies firms limited liability partnerships or other parties covered inthe register maintained under section 189 of the Companies Act 2013. Consequently theprovisions of paragraph iii (a) iii (b) and (iii) (c) of the Order are not applicable tothe Company and hence not commented upon.

(iv) According to the information and explanations given to us and the records of theCompany examined by us the Company has not made any investment advanced any loan givenany guarantee or provided any securities to others.

(v) The Company has not accepted any deposit from the public covered under Section 73to 76 of the Companies Act 2013. Therefore the provisions of paragraph 3(v) of the Orderis not applicable to the Company.

(vi) The maintenance of cost records has been specified by the Central Government undersection 148(1) of the Act. We have broadly reviewed the cost records maintained by thecompany pursuant to the Companies (Cost Records and Audit) Rules 2014 prescribed by thecentral Government under Section 148(1)(d) of the Act and are of opinion that Primafacie the prescribed - cost records have been maintained. We have however not made adetailed examination of cost records with a view to determine whether they are accurate ornot.

(vii) a) According to the records of the Company undisputed statutory dues includingProvident Fund Income Tax Sales Tax Service Tax Value Added Tax Cess or othermaterial statutory dues have been generally regularly deposited during the year by theCompany with appropriate authorities except Agricultural Income Tax. According to theinformation and explanations given to us no undisputed statutory dues including ProvidentFund Income Tax Service Tax Value Added Tax Cess or other material statutory dues werein arrears as at 31st March 2017 for a period of more than six months from the date theybecome payable except in following cases:

Nature Assessment Year Forum Amount
Agricultural Income Tax 1989-90 Agricultural Income Tax Officer Assam 6492
Agricultural Income Tax 1998-99 Agricultural Income Tax Officer Assam 14660
Agricultural Income Tax 1999-00 Agricultural Income Tax Officer Assam 420
Agricultural Income Tax 2000-01 Agricultural Income Tax Officer Assam 111581

b) According to the information and explanations given to us the following dues ofsales-tax have not been deposited by the company on account of dispute as at 31st March2017:

Nature Assessment Year Forum Amount involved
Sales Tax 2010-11 Joint Commissioner of Taxes Assam 351155

(viii) In our opinion and according to the information given to us the Company has notdefaulted in repayment of dues to banks. There were no debentures outstanding during theyear.

(ix) In our opinion and according to the information and explanations given to us termloans have been applied for the purpose for which the loans were obtained. The Company hasnot raised moneys by way of initial public offer or further public offer.

(x) Based on the audit procedures performed and the information and explanations givento us we report that no fraud on or by the Company has been noticed or reported duringthe year nor have we been informed of such case by the management.

(xi) According to information and explanations given to us the Company has paid orprovided managerial remuneration in accordance with the provisions of section 197 readwith Schedule V to the Act.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company and hence the paragraph 3(xii) is not applicable.

(xiii) In our opinion and on the basis of information and explanations given to us bythe management all the transactions with the related parties are in compliance withsections 177 and 188 of Companies Act 2013 where applicable and the details have beendisclosed in the Financial Statements etc. as required by the applicable accountingstandards.

(xiv) According to information and explanations given to us the Company has not madeany preferential allotment or private placement of shares or fully or partly convertibledebentures during the year under review.

(xv) According to information and explanations given to us the Company has not enteredinto any non-cash transactions with directors or persons connected with him. Accordinglythe paragraph 3(xv) is not applicable to the Company;

(xvi) In our opinion and on the basis of information and explanations given to us bythe management the Company is not required to be registered under section 45-IA of theReserve Bank of India Act 1934.

For Das & Prasad
Chartered Accountants
(Firm's Registration No. 303054E)
P. K. Agarwal
Place : Kolkata (Partner)
Date : 30th May 2017 Membership No. 056921

Annexure - B to the Auditors' Report

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 Ledo TeaCompany Limited ("the Company") as on 31st March 2017 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal controls over financial reporting criteriaestablished by the Company considering the essential components of internal controlsstated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India ('ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to Company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required 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 judgment 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 controls 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 controls 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 andexpenditures of the Company are being made only in accordance with authorisations ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of theCompany's assets that could have a material effect on the financial statements.

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 controlsover 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 31 March 2017 based on theinternal controls over financial reporting criteria established by the Company consideringthe essential components of internal controls stated in the Guidance Note on Audit ofInternal Financial Controls over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Das & Prasad
Chartered Accountants
(Firm's Registration No. 303054E)
P. K. Agarwal
Place : Kolkata (Partner)
Date : 30th May 2017 Membership No. 056921