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Warren Tea Ltd.

BSE: 508494 Sector: Agri and agri inputs
NSE: WARRENTEA ISIN Code: INE712A01012
BSE LIVE 15:48 | 13 Dec 136.00 -1.85
(-1.34%)
OPEN

137.80

HIGH

139.00

LOW

133.00

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 137.80
PREVIOUS CLOSE 137.85
VOLUME 1641
52-Week high 183.25
52-Week low 100.40
P/E
Mkt Cap.(Rs cr) 163
Buy Price 0.00
Buy Qty 0.00
Sell Price 136.00
Sell Qty 26.00
OPEN 137.80
CLOSE 137.85
VOLUME 1641
52-Week high 183.25
52-Week low 100.40
P/E
Mkt Cap.(Rs cr) 163
Buy Price 0.00
Buy Qty 0.00
Sell Price 136.00
Sell Qty 26.00

Warren Tea Ltd. (WARRENTEA) - Auditors Report

Company auditors report

To the Members of

Warren Tea Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Warren TeaLimited ("the Company") which comprise the Balance Sheet as at March 312017 the Profit and Loss Statement the Cash Flow Statement for the year then ended and asummary of significant 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 Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating 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 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 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 misstatements.

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 but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by the Company's directors as well as evaluating theoverall 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.

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 March 31 2017 and its loss and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements i) As required by the Companies(Auditor's Report) Order 2016 ("the Order") issued by the Central Government ofIndia in terms of sub-section (11) of section 143 of the Act we give in the"Annexure A" statement on the matters specified in the paragraph 3 and 4 of theOrder to the extent applicable.

ii) 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 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 Profit and Loss Statement and the Cash Flow Statement dealtwith by this Report are in agreement with the books of account.

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) On the basis of the written representations received from the directors as on March31 2017 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2017 from being appointed as a director in terms of Section 164 (2) ofthe 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".

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 has disclosed the impact of pending litigations on its financialposition in its financial statements as referred to in Note No. 26 (5) (a) (c) to thefinancial statements.

ii. The Company did not have any long-term contracts including derivative contracts asat March 31 2017 for which 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 during the year.

iv. The Company has provided requisite disclosures in its Standalone FinancialStatements as to holdings as well as dealings in Specified Bank Notes during the periodfrom 8 November2016 to 30 December2016 and these are in accordance with the Books ofAccounts Maintained by the Company. Refer Note 26(9) to the Standalone FinancialStatements.

For B.M.Chatrath & Co. LLP
Chartered Accountants
Firm Registration Number: 301011E /E300025
Anand Chatrath
Place: Kolkata Partner
Date: 30th May 2017 Membership Number 052975

‘ANNEXURE - A' TO THE AUDITORS' REPORT

The Annexure referred to in our Independent Auditors' Report to the members of theCompany on the standalone financial statements for the year ended March 31 2017 we reportthat:

1. In respect of fixed assets:

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

(b) The fixed assets were physically verified during the year by the Management in aphased programme which in our opinion provides for physical verification of all the fixedassets at reasonable intervals. And as per the information and explanations given to usno material discrepancies were noticed on such verification.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the company the title deed of immovable properties are heldin the name of the Company.

2. As explained to us the inventory of the Company has been physically verified duringthe year by the Management. In our opinion the frequency of such verification isreasonable and no material discrepancies were noticed on such verification.

3. The Company has not granted any loans secured or unsecured to companies firmslimited liability partnerships or other parties covered in the register maintained undersection 189 of the Companies Act. Hence clause 3(iii)(a) (iii)(b) & (iii)(c) of theorder is not applicable to the company.

4. In our opinion and according to the information and explanations given to us inrespect of loans guarantees investments and security the company has complied with theprovisions of section 185 and 186 of the Companies Act 2013.

5. The Company has not accepted any deposits from the public hence the clause 3 (v) ofthe order is not applicable to the company.

6. We have broadly reviewed the books of account maintained by the Company pursuant tothe rules made by the Central Government for the maintenance of cost records under section148 of the Act and are of the opinion that prima facie the prescribed accounts andrecords have been made and maintained.

7. (a) According to the information and explanations given to us and the records of theCompany examined by us in our opinion the Company has been regular in depositing theundisputed statutory dues including Provident Fund Employees State Insurance Income taxSales-tax Service tax Customs duty Excise duty Value added tax Cess and otherstatutory dues as applicable with the appropriate authorities.

According to the information and explanations given to us no undisputed amountspayable in respect of the above items were in arrears as at March 31 2017 for a periodexceeding six months from the date they became payable.

(b) According to the information and explanation given to us and the records of theCompany examined by us the particulars of dues of Income-Tax Sales Tax Service TaxCustoms Duty

Excise duty Value added tax as at March 31 2017 which have not been deposited onaccount of Dispute are as follows:

Name of the Statute Nature of the dues Amount (Rs. in Lacs) Period to which the amount relates Forum where dispute is pending
Income Tax Act 1961 Income Tax 33.53 2014 - 2015 Deputy Commissioner of Income Tax
0.09 2012 – 2013 Commissioner of Income Tax - Appeals
24.98 2013 - 2014 Commissioner of Income Tax - Appeals
Central Sales Assam General 1.56 2008 - 2009 Deputy
Tax Act 1956 Sales Tax & Central Sales Tax 66.60 1998 - 1999 Commissioner of Taxes
Assam General 1.71 1997 - 1998 Commissioner of Taxes
Sales Tax & Central Sales Tax 4.15 1998 - 1999
Assam General Assam General 9.71 2004 – 2005 Gauhati High Court
Sales Tax Act 1993 Sales Tax & Central Sales Tax 0.94 1997 - 1998
6.95 2004 – 2005
Assam Land Revenue Reassessment Act 1936 Land Revenue Tax 28.33 2003-2004 to 2007-2008 Additional Deputy Commissioner

8. According to the records of the Company examined by us and the information andexplanations given to us the Company has not defaulted in repayment of dues to any banksat the Balance Sheet date. The Company had neither any outstanding debenture nor has itissued any debenture during the year.

9. The Company has not raised money by way of initial public offer or further publicoffer (including debt instruments). Further money raised by way of term loans on anoverall basis have been applied for the purposes for which they were obtained.

10. During the course of our examination of the books and records of the company andaccording to the information and explanations given to us we have neither come across anyinstances of material fraud on or by the Company by its officers or employees beingnoticed or reported during the year nor have we been informed of such case by theManagement.

11. 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 the requisite approvals of Shareholders/Central Governmentas mandated by the provisions of Section 197 read with Schedule V to the CompaniesAct2013.

12. The company is not a Nidhi Company as per the provisions of section 406 (1) of theCompanies Act 2013. Hence clause 3 (xii) of the order is not applicable to the company.

13. According to the records of the Company examined by us and the information andexplanations given to us all 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 as required by the applicable accounting standards.

14. The company has not made private placement of shares during the year under review.Hence clause 3 (xiv) of the order is not applicable to the company.

15. The company has not entered into any non-cash transactions with directors orpersons connected with him hence the clause 3 (xv) of the order is not applicable to thecompany.

16. The company is not required to register itself under section 45-IA of the ReserveBank of India Act 1934.

For B.M.Chatrath & Co. LLP
Chartered Accountants
Firm Registration Number: 301011E /E300025
Anand Chatrath
Place: Kolkata Partner
Date: 30th May 2017 Membership Number 052975

‘ANNEXURE - B' TO THE INDEPENDENT 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 WarrenTea Limited ("the Company") as of March 31 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 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). 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 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 authorisations of themanagement 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 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 B.M.Chatrath & Co. LLP
Chartered Accountants
Firm Registration Number: 301011E /E300025
Anand Chatrath
Place: Kolkata Partner
Date: 30th May 2017 Membership Number 052975