Tea Time Ltd.
|BSE: 512011||Sector: Agri and agri inputs|
|NSE: N.A.||ISIN Code: INE237U01018|
|BSE 05:30 | 01 Jan||Tea Time Ltd|
|NSE 05:30 | 01 Jan||Tea Time Ltd|
|BSE: 512011||Sector: Agri and agri inputs|
|NSE: N.A.||ISIN Code: INE237U01018|
|BSE 05:30 | 01 Jan||Tea Time Ltd|
|NSE 05:30 | 01 Jan||Tea Time Ltd|
To the Members of Tea Time Limited
Report op the Audit of the Standalone Financial Statements
We have audited the standalone financial statements of Tea Time Limited (theCompany) which compose the balance sheet as at 31st March 2020 thestatement of Profit and Loss' statement of changes in equity and statement of cash flowsfor the year then ended and notes to the financial statements inducing a summary ofsignificant accounting policies and other explanatory information.
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 2020 and profit/loss changes in equity and its cash flows for the yearended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (3As) specifiedunder section 143(10) of the Companies Act. 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.
Emphasis of Matters
Without qualifying our opinion we draw attention to the following :
1. Income Tax advance of Rs. 2750088/- remains unadusted - Refer Note 22
2. In the absence of adequate data reasonable accuracy could not be ascertained inrespect of fair value of financial assets & liabilities as certified by themanagement- Refer note 25
3. Book balance of accounts of Rs 7966.29/- with UCO Bank could not be confirmed -Refer note 24
Key Audit Matters
There are no serious Audit observations and no Key Audit Matters to communicate in ourrepor*.
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 preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance changes in equity and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Stand arcs specified under section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation 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 statement that givea true and fair view and are free from material misstatement whether due to fraud orerror.
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.
Those Board of Directors are 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 with SA swill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.
Report on Other Legal and Regulatory Requirements
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 Companies Act 2013 we give in the Annexure a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent pppj 'cable.
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 Statement of Profit and Loss and the Cash Flow Statementdealt with 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 on31March
2019 taken on record by the Board of Directors none of the directors is disqualifiedas on 31st March 2019 from being appointed as a director in terms of Section\6A (2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financialrepotting of the Company and the operating effectiveness of such controls refer to ourseparate Report in Annexure A.
(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 Rs. 1236646/- on its financial position inrespect of its pending litigation - Refer Note 17 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.
Annexure - A 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 Tea TimeLimited as of 31 March 2070 in conjunction with our audit of the standalone financialstatements 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 consider** 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 (TCAF). 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 finely preparation of reliable financial information asrequired 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 wc comply with eth calrequirements 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 designend operating effectiveness of interna) 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 Repotting
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 arc 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 contro1over 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 2020 based on theinternal control over financial reporting criteria esiaolished by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Pin am al Reporting issued by the Institute ofChartered Accountants of India.
Annexure- B to the Independent Auditor's Report (Referred to in our report of evendate attached)
Referred to in paragraph 1 under the heading Report on Other Legal &Regulatory Requirement5 of our report of even date:
1) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets;
(b) The Fixed Assets have been physically verified by the management at reasonableintervals and no mateiial discrepancies beiween the books records and the physical fixedassets have been noticed.
(c) The Company did not have any immovable property.
2) The company did not have any inventory during the year under review.
3) As per information and explanations given to us the Company has not granted anyloans secured or unsecured to company films limited liability partnership or otherparties covered in
the Register maintained under section 189 of the Companies Act 2013. However theCompany has granted interest free advance of Rs.209875000/- to M/s V. N. EnterprisesLtd. having common directors and shown under Non Current Assets - Loans and Deposits.Other interest free advance given to other Companies having common directors has beensquared off during the year. 51
4) According to the information and explanations given to us the company has not givenloans guarantees made investments and / or purchased securities in respect of whichprovisions of section 185 and 186 of the Companies Act 2013 are applicable. However theCompany has granted interest tree advance of Rs.209875000/- to M/s V. N. EnterprisesLtd. having common directors and shown under Non Current Assets - Loans and Deposits.Other interest free advance given to other Companies having common directors has beensquared off during the year.
5) According to the information and explanations given to us the Company has notaccepted any deposits from the public and hence the directives issued by the Reserve Bankof India and the provisions of Sections 73 to 76 or any other relevant provisions of theAct and the Companies (Acceptance of Deposit) Rules 2015 with regard to the depositsaccepted from the public are not applicable.
6) As informed to us the maintenance of Cost Records has not been specified by theCentral Government under sub-section (1) of Section 148 of the Act in respect of theactivities carried on by the company.
7) (a) According to information and explanations given to us and on the basis of ourexam nation of the books of account and records the Company has been generally regularin depositing undisputed statutory dues including Income-Tax GST and any other statutorydues with the appropriate authorities. According to information and explanations given tous no undisputed amount payable which were outstanding at the year end for a period ofmore than six months from the date they became payable.
b) According to the information and explanation given to us there are no dues ofservice tax. Sales Tax duty of customs and duty of excise on account of any dispute.However as informed by the management Disputed Income Tax dues of Rs. 1236 646/- pendingwith Income Tax Appellate Tribuna1.
8) According to the information and explanations given to us the Company has notdefaulted in the repayment of dues to banks . The Company has not taken any loan eitherfrom financial institutions or from the government and has not issued any debentures.
9) Based upon the information and explanations given by the management the company hasnot raised moneys by way of initial public offer or further public offer including debtinstruments and term Loans. Accordingly the provisions of clause 3 (ix) of CARO are notapplicable to the Company.
10) Based upon the audit procedures performed and according to the information andexplanations given by the management no fraud by the Company or on the company by its
. officers or employees has been noticed or reported during the year.
11) Based upon the information and explanations given by the management the companyhas not paid any managerial remuneration except sitting fees of Directors.
12) As per information and explanations given to us the Company is not a NidhiCompany. Therefore the provisions of clause 4 (xii) of the Order are not applicable tothe Company.
13) As per information and explanations given to us transactions with the relatedparties are in compliance with section 177 and 188 of Companies Act 2013 and the detailshave been disclosed in the Note No 19 of Financial Statements as required by theapplicable accounting standards.
14) Based upon the audit procedures performed and according to the inhumation andexplanations given by the management the company has not made any preferential allotmentor private placement of shares or fully or partly convertible debentures during the yearunder review. Accordingly the provisions of clause 3 (xiv) of the Order are notapplicable to the Company and hence not commented upon.
15) According to the information and explanations given by the management the companyhas paid Service Changes of Rs. 960000/- to Mr. V. N. Agarwal Director during the year.
16) In our opinion and according to the information and explanations given to us thecompany is not required to be registered under section 45 IA of the Reserve Bank of IndiaAct 1934 and accordingly the provisions of clause 3 (xvi) of the Order are notapplicable to the Company and hence not commented upon.