You are here » Home » Companies » Company Overview » James Warren Tea Ltd

James Warren Tea Ltd.

BSE: 538564 Sector: Agri and agri inputs
NSE: N.A. ISIN Code: INE718P01017
BSE 00:00 | 18 Aug 225.25 -7.25
(-3.12%)
OPEN

222.00

HIGH

240.00

LOW

222.00

NSE 05:30 | 01 Jan James Warren Tea Ltd
OPEN 222.00
PREVIOUS CLOSE 232.50
VOLUME 352
52-Week high 299.75
52-Week low 181.85
P/E 9.70
Mkt Cap.(Rs cr) 99
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 222.00
CLOSE 232.50
VOLUME 352
52-Week high 299.75
52-Week low 181.85
P/E 9.70
Mkt Cap.(Rs cr) 99
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

James Warren Tea Ltd. (JAMESWARRENTEA) - Auditors Report

Company auditors report

Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying financial statements of JAMES WARREN TEA LIMITED ('theCompany') which comprise the Balance Sheet as at 31st March 2021 the Statement of Profitand Loss (including Other Comprehensive Income) the Cash Flow Statement and the Statementof Changes in Equity for the year then ended and a summary of the significant accountingpolicies and other explanatory information.

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 theCompanies Act 2013 ('the Act') in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India including IndianAccounting Standards ('Ind AS') prescribed under section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended ("Ind AS") ofthe state of affairs of the Company as at 31st March 2021 its profit including othercomprehensive income its cash flows and the statement of changes in equity for the yearended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing specified undersection 143(10) of the Act. Our responsibilities under those standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India ('ICAI') together withthe ethical requirements that are relevant to our audit of the financial statements underthe provisions of the Act and the rules thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.

Sr.No. Key Audit Matters Auditor's Response
1. Biological Assets - Measurement and valuation With respect to the existence of the biological produce:
Biological assets of the Company compris eof unharvested green tea leaves which are measured at Fair value based on their biological transformation.
The fair valuation of the biological produce is significant to our audit on account of the significant management judgements applied in determining estimated quantity and transformation based on factors like stage of growth and harvesting cycle of the crops and their fair values less costs to sell which is based on factors like established conversion norms and the published rates. 1. Obtained an understanding of the significant management judgements applied in determination of the quantity and biological transformation of the growing produce.
2. Evaluated the design of internal controls relating to the management's process of making judgments and estimates relating to quantity biological transformation and also tested the operating effectiveness of the aforesaid controls.
3. Retrospectively compared the actual harvest data with the growing produce that was estimated and recorded by the management prior to harvest to assess the reasonableness of the process of prior estimation by the management and also to assess the reliability of the basis of management judgement in estimating growing produce as at the balance sheet date.
With respect to valuation of growing produce:
1. Evaluated the design of internal controls relating to the management's judgments and estimates for determining fair value less cost to sell and also tested the operating effectiveness of the aforesaid controls.
2. Validated the market information considered by the management in determining the fair values.
3. Compared the estimate of costs to sell to the actual selling cost incurred during the year to validate the reasonability of the estimate of costs to sell considered in determining fair values as at the Balance Sheet date.

Information other than the Financial Statements and Auditor's Report thereon

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Annual Report but does not includethe financial statements and our auditor's report thereon.

Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is a material misstatement of this other information weare required to report that fact. We have nothing to report in this regard.

Responsibilities of Management for the Financial Statements

The accompanying financial statements have been approved by the Company's Board ofDirectors. The Company's Board of Directors is responsible for the matters stated insection 134(5) of the Act with respect to the preparation of these financial statementsthat give a true and fair view of the state of affairs profit including othercomprehensive income changes in equity and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Ind AS specifiedunder section 133 of the Act. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company 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 frommaterial misstatement whether due to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

The Board of Directors is also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance withStandards on Auditing will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these financial statements.

As part of an audit in accordance with Standards on Auditing we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

• Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

• Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order 2016 ('the Order') issued by theCentral Government of India in terms of section 143(11) of the Act we give in the AnnexureA a statement on the matters specified in paragraphs 3 and 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 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 financial statements dealt with by this report are in agreement with the booksof account;

d. in our opinion the aforesaid financial statements comply with the Indian AccountingStandards specified under Section 133 of the Act read with relevant rule issuedthereunder;

e. on the basis of the written representations received from the directors as on 31stMarch 2021 and taken on record by the Board of Directors none of the directors aredisqualified as on 31st March 2021 from being appointed as a director in terms of Section164(2) of the Act;

f. with respect to the adequacy of the internal financial controls over financialreporting (IFCoFR) of the Company and the operating effectiveness of such controls referto our separate report in Annexure 'B'.

g. With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended:

In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of section 197 of the Act.

h. 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 other than those disclosed in thefinancial statements; which would materially impact its financial position. Refer note no.34 to the financial statement;

ii. the Company has made provision as required under the applicable laws or Ind ASfor material foreseeable losses if any on long-term contracts including derivativecontracts;

iii. there is no amount required to be transferred to the Investor Education andProtection Fund by the Company.

For B. Chhawchharia & Co
Chartered Accountants
Firm's Registration No.: 305123E
Sd/-
Sushil Kumar Chhawchharia
Place: Kolkata Partner
Dated the 18th day of June 2021 Membership No. 008482
UDIN - 21008482AAAAAO1767

ANNEXURE-A TO THE AUDITORS' REPORT

The Annexure referred to in Independent Auditor's Report of even date to the members ofJAMES WARREN TEA LIMITED on the financial statements for the year ended 31st March 2021

Based on the audit procedures performed for the purpose of reporting a true and fairview on the financial statements of the Company and taking into consideration theinformation and explanations given to us and the books of account and other recordsexamined by us in the normal course of audit we report that:

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

(b) As planned a part of the fixed assets have been physically verified by themanagement during the year and no material discrepancies were noticed on suchverification. In our opinion the planned frequency of verification of the fixed assets isreasonable having regard to the size of the Company and the nature of its assets.

(c) According to the 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.

(ii) The inventories have been physically verified at reasonable intervals during theyear by the management. In our opinion the frequency of verification is reasonable. Thediscrepancies noticed on verification between the physical stock and the book stockwherever ascertained were not significant and have been properly dealt in the books ofaccounts.

(iii) The Company has not granted any loan secured or unsecured to companies firmsLLP or other parties covered in the register maintained under Section 189 of the Act.Accordingly the provisions of clauses 3(iii) (a) (b) and (c)of the Order are notapplicable.

(iv) According to the information and explanations given to us in our opinion inrespect of loans investment guarantees and security provisions of section 185 and 186of the Act have been complied with by the Company.

(v) The Company has not accepted any deposits within the meaning of Sections 73 to 76of the Act and the Companies (Acceptance of Deposits) Rules 2014 (as amended).Accordingly the provisions of clause 3(v) of the Order are not applicable.

(vi) The Central Government has prescribed maintenance of cost records under section148(1) of the Act for the Company. We have broadly reviewed such accounts and records andare of the opinion that prima facie the prescribed accounts & records have been made& maintained but no detailed examination of such records and accounts have beencarried out by us.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted accrued in the books ofaccount in respect of undisputed statutory dues including provident fund employees' stateinsurance income-tax sales-tax service tax duty of customs duty of excise valueadded tax Good and Service Tax cess and other material statutory dues as applicablehave generally been regularly deposited to the appropriate authorities. Further noundisputed amounts payable in respect thereof were outstanding on the year-end for aperiod of more than six months from the date they became payable.

(b) According to the information and explanations given to us the following duesoutstanding in respect of income-tax sales-tax service tax duty of customs duty ofexcise value added tax and cess on account of any dispute are as follows:

Name of the statute Nature of dues Amount (Rs. Lakh) Period to which the amount relates Forum where dispute is pending
Central Sales Tax Act 1956 Sales Tax 45.77 1990-91 & 2004-05 Hon'ble High Court Guwahati
Central Sales Tax Act 1956 Sales Tax 39.96 1990-91 1994-95 1995-96 and 1996-97 Deputy Commissioner of Taxes (Appeal) Tinsukia (Assam)

(viii) According to the records of the Company examined by us and the information andexplanation provided to us the Company has not availed any term loan from any FinancialInstitution Bank or Government nor has issued any debenture during the year nor isanything outstanding as on the balance sheet date.

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instrument) during the year.

(x) During the course of our examination of the books and records of the Companycarried out in accordance with generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across antinstances of fraud by the Company or any fraud on the Company by its officer or employeesnoticed or reported during the year nor we have been informed of any such case by themanagement.

(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 the requisite approvals mandated by the provisions ofsection 197 read with 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. 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 section 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableIndian accounting standards.

(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 into non-cashtransactions with directors or persons connected with them.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For B. Chhawchharia & Co
Chartered Accountants
Firm's Registration No.: 305123E
Sd/-
Sushil Kumar Chhawchharia
Place: Kolkata Partner
Dated the 18th day of June 2021 Membership No. 008482
UDIN - 21008482AAAAAO1767

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")

In conjunction with our audit of the financial statements of JAMES WARREN TEA LIMITED("the Company") as of and for the year ended 31st March 2021 we have auditedthe internal financial controls over financial reporting (IFCoFR) of the Company as ofthat 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 ICAI. These responsibilities include the design implementation and maintenanceof adequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to Company's policiesthe safeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's IFCoFR based on our audit.We conducted our audit in accordance with the Guidance note on Audit of Internal FinancialControls over Financial Reporting (the "Guidance Note") and Standards onAuditing issued by the Institute of Chartered Accountants of India (ICAI) and deemed tobe prescribed under section 143(10) of the Companies Act 2013 to the extent applicableto an audit of IFCoFR and the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") issued by the ICAI. Those Standardsand the Guidance Note require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether adequate IFCoFR wasestablished and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe IFCoFR and their operating effectiveness. Our audit of IFCoFR included obtaining anunderstanding of IFCoFR assessing the risk that a material weakness exists and testingand evaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgment including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error.

We believe that the audit evidences we have obtained are sufficient and appropriate toprovide a basis for our audit opinion on the Company's IFCoFR.

Meaning of Internal Financial Controls over Financial Reporting

A company's IFCoFR is a process designed to provide reasonable assurance regarding thereliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles. A company'sIFCoFR 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 IFCoFR including the possibility of collusionor improper management override of controls material misstatements due to error or fraudmay occur and not be detected. Also projections of any evaluation of the IFCoFR to futureperiods are subject to the risk that IFCoFR may become inadequate because of changes inconditions or that the degree of compliance with the policies or procedures maydeteriorate.

Opinion

In our opinion the Company has in all material respects adequate internal financialcontrols over financial reporting and such internal financial controls over financialreporting were operating effectively as at 31st March 2021 based the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by ICAI.

For B. Chhawchharia & Co
Chartered Accountants
Firm's Registration No.: 305123E
Sd/-
Sushil Kumar Chhawchharia
Place: Kolkata Partner
Dated the 18th day of June 2021 Membership No. 008482
UDIN - 21008482AAAAAO1767

.