Norben Tea & Exports Ltd.
|BSE: 519528||Sector: Agri and agri inputs|
|NSE: NORBTEAEXP||ISIN Code: INE369C01017|
|BSE 05:30 | 01 Jan||Norben Tea & Exports Ltd|
|NSE 14:10 | 07 Apr||Norben Tea & Exports Ltd|
|BSE: 519528||Sector: Agri and agri inputs|
|NSE: NORBTEAEXP||ISIN Code: INE369C01017|
|BSE 05:30 | 01 Jan||Norben Tea & Exports Ltd|
|NSE 14:10 | 07 Apr||Norben Tea & Exports Ltd|
The Members of
M/s. Norben Tea & Exports Ltd.
(CIN - L01132WB1990PLC048991)
Report on the Financial Statements
We have audited the accompanying financial statements of M/s. Norben Tea & ExportsLtd which comprise the Balance Sheet as at 31st March 2017 the Statement ofProfit and Loss the Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies and other explanatory 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 Act2013 ("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 section133 of the Act read with Rule-7 of the Companies (Accounts) Rules2014.
This responsibility includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safe guarding the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial controls thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror. Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on ouraudit. We have taken in to 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 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 from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control 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 accounting policies used and the reasonableness of the accountingestimates made by Company's Directors as well as evaluating the overall presentation ofthe 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.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the 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 profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. 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 ofthe Act we give in the "Annexure A" statement on the matters specified inparagraphs 3 and 4 of the Order.
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 appears from our examination of those books and properreturns/statements adequate for the purposes of our audit have been received from gardennot visited by us;
c. the Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account and with the returns/statementsreceived from garden not visited by us;
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 as on 31stMarch 2017 and 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 termsof sub-section (2) of Section 164 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 B" and
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 have pending litigations impact of which have been disclosed on itsfinancial statements - Refer Note No. 28. Further these pending litigations would notimpact the financial position of the company.
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 Investor Educationand Protection Fund by the company.
iv) The Company has provided requisite disclosure in the financial statement as toholding as well as dealing in Specified Bank Notes during the period from 8thNovember 2016 to 30th December 2016. Based on audit procedure and relying onthe management representation we report that the disclosures are in accordance with booksof accounts maintained by the company and as produced to us by the management - Refer NoteNo. 33.
ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT
The Annexure referred to in our report to the members of M/s. NORBEN TEA & EXPORTSLTD. 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 its fixed assets.
b) As informed the fixed assets have been physically verified by the management at theyear end and no material discrepancies are reported to have been noticed on suchverification.
c) In view of the volume of title deeds involved and according to the information andexplanations given to us and on the basis of our selective examination of the records ofthe Company as produced we have neither come across nor have we been informed any titledeeds of immovable properties which are not held in the name of the Company.
ii) a) The inventory has been physically verified by the management during the year. Inour opinion the frequency of verification is reasonable.
b) In our opinion and according to the information & explanations given to us theprocedures of physical verification of inventories followed by the Management arereasonable and adequate in relation to the size of the Company and nature of its business.
c) On the basis of our examination of records of inventory and in our opinion theCompany is maintaining proper records of inventory. The discrepancies noticed onverification between the physical stocks and the book records were not material inrelation to the operation of the company.
iii) On the basis of our examination of the books of account and according to theinformation and explanations given to us the Company has not granted any loans secured orunsecured to Companies firms or other parties covered in the Register maintained underSection 189 of the Companies Act 2013.Thus the paragraph 3(iii) of the order is notapplicable to the company.
iv) On the basis of our examination of the books of account and according to theinformation and explanations given to us the Company has during the year complied withthe provisions of Section 185 and 186 of the Companies Act 2013 with respect to theloans and investments made.
v) In our opinion and according to the information and explanations given to us theCompany has not accepted any deposit from the public within the meaning of section 73 to76 or any other relevant provisions of the Companies Act and the rules framed there underand the directives issued by the Reserve Bank of India. To the best of our knowledge andaccording to the information and explanations given to us no order has been passed
by the Company Law Board or National Company Law Tribunal or Reserve Bank of India orany court or any other Tribunal against the company.
vi) On the basis of examination of the records produced we are of the opinion thatprima facie the Cost records as prescribed by the central government under sub-section(1) of section 148 of the Act have been made and maintained. We have however not made adetailed examination of the cost records with a view to determine whether they areaccurate or complete.
vii) a) On the basis of examination of the books of account and according to theinformation & explanations given to us the Company is regular in depositing withappropriate authorities undisputed statutory dues including provident fund employees'state insurance income tax sales tax wealth tax service tax duty of customs duty ofexcise value added tax and cess except Professional Tax. According to the informationand explanations given to us the undisputed amount payable in respect of Professional Taxis Rs. 158121/- which were outstanding as at 31st March 2017 for a period of more thansix months from the date they became payable.
b) According to the information and explanations given to us there are no statutorydues of duty of custom duty of excise service tax sales tax and value added tax whichhave not been deposited on account of any dispute. However according to information andexplanation given to us the following dues of income tax have not been deposited by theCompany on account of Disputes:
viii) Based on our audit procedures and according to the information and explanationsgiven to us we are of the opinion that the Company has not defaulted in repayment ofloans or borrowings to financial institution banks or debenture holders during the year.
ix) During the year the company has raised money by way of term loan from bank and theterm loan availed has been utilized for the purpose for which it is raised.
x) According to the information and explanation given to us no fraud by the company oron the company by its officers or employees has been noticed or reported during the courseof our audit.
xi) According to the information and explanations given to us and based on ourexamination of the records of the company the company has paid / provided for managerialremuneration in accordance with requisite approvals mandated by the provision of section197 read with Schedule V of the act.
xii) In our opinion and according to the information and explanations given to us thecompany is not a Nidhi company. Accordingly paragraph 3(xii) of the order is notapplicable.
xiii) According to the information and explanations given to us and based on ourexamination of the records of the company transactions with the related parties are incompliance with sections 177 and 188 of the act where applicable and details of suchtransactions have been disclosed in the financial statements in Note No. 32 of the noteson financial statement as required by the Accounting Standards(AS)-18.
xiv) According to the information and explanations given to us and based on ourexamination of the records of the company the company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.
xv) According to the information and explanations given to us and based on ourexamination of the records of the company the company has not entered in to non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe order is not applicable.
xvi) The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.
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 internalfinancial controls over financial reporting of NORBEN TEA & EXPORTS LTD. ("theCompany") as of 31 March 2017 in conjunction with our audit of the standalonefinancial 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 (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.
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 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 andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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 controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
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 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.