Warren Tea Ltd.
|BSE: 508494||Sector: Agri and agri inputs|
|NSE: WARRENTEA||ISIN Code: INE712A01012|
|BSE 00:00 | 04 Oct||71.00||
|NSE 05:30 | 01 Jan||Warren Tea Ltd|
Warren Tea Ltd. (WARRENTEA) - Auditors Report
Company auditors report
To the Members of
WARREN TEA LIMITED
Report on the Audit of the standalone Financial Statements
We have audited the accompanying standalone financial statements of WARRENTEA LIMITED ("the Company") which comprise the Balance Sheet as at March31 2022 the Statement of Profit and Loss (including other comprehensive income) theCash Flow statement and the statement of changes in equity for the year then ended andnotes to the standalone financial statements including a summary of significantaccounting policies and other explanatory information.
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013as amended ("the Act") in themanner 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 2022 its profit including and other Comprehensive Income its cash flows andthe Changes in Equity for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements inaccordance with the standards on auditing (SAs) as specified under section 143 (10) of theAct. Our responsibilities under those Standards are further described in theAuditor's Responsibilities for the Audit of the Standalone FinancialStatements' section of our report. We are independent of the Company in accordancewith 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 Act and the rules thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and thecode of ethics. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the standalone financialstatements.
Key Audit Matters
Key Audit Matters are those matters that in our professionaljudgement were of most significance in our audit of the standalone financial statementsof the current period. These matters were addressed in the context of our audit of thestandalone financial statements as a whole and informing our opinion thereon and we donot provide a separate opinion on these matters. We have determined the matters describedbelow to be the key audit matters to be communicated in our report.
Estimation of Useful Life of Bearer Plants
Valuation of biological assets and agriculture produce
Information other than the financial statements and auditors'report thereon
The Company's board of directors is responsible for thepreparation of the other information. The other information comprises the informationincluded in the Board's Report including Annexures to Board's Report BusinessResponsibility Report but does not include the standalone financial statements and ourauditor's report thereon.
Our opinion on the standalone financial statements does not cover theother information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the financial statements or ourknowledge obtained during the course of our audit or otherwise appears to be materiallymisstated. If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.
Management's Responsibility for the standalone FinancialStatements
The Company's Board of Directors of the Company are responsible for thematters stated in Section 134(5) of the Companies Act 2013 (the act') withrespect to the preparation of these standalone financial statements that give a true andfair view of the financial position financial performance including comprehensive incomeand cash flows and changes in equity of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards (IND AS) specified under Section 133 of the Act read with companies (Indian AccountingStandards) rules 2015 as amended. This responsibility includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding 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; design implementation and maintenance ofadequate internal financial controls that are operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the standalone financial statements that give a true and fair view and arefree from material misstatement whether due to fraud or error.
In preparing the standalone financial statements management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.
The Board of directors are also responsible for overseeing theCompany's financial reporting process.
Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.
Obtain an understanding of internal control relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Companies Act 2013 we are also responsible for expressing our opinionon whether the company has adequate internal financial controls system in place and theoperating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause theCompany to cease to continue as a going concern.
Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.
We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.
We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.
From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements for the financial year ended March 31 2022 and are therefore the keyaudit matters. We describe these matters in our auditor's report unless law orregulation precludes public disclosure about the matter or when in extremely rarecircumstances we determine that a matter should not be communicated in our report becausethe adverse consequences of doing so would reasonably be expected to outweigh the publicinterest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2020("the Order") issued by the Central Government of India in terms of sub-section(11) of section143 of the Act we give in the Annexure a statement on the mattersSpecified in paragraphs 3 and 4 of the Order.
2. As required by section 143(3) of the Act we further report that:
a) we have sought and obtained all the information and explanationswhich to the best of 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 beenkept by the Company so far as appears from our examination of those books;
c) the Balance Sheet Statement of Profit and Loss including othercomprehensive income the Cash Flow Statement and Statement of Changes in Equity dealtwith by this Report are in agreement with the books of account;
d) in our opinion the aforesaid financial statements comply with theapplicable Accounting Standards specified under Section 133 of the Act read with Rule 7of the Companies (Accounts) Rules 2014;
e) on the basis of written representations received from the directorsas on March 31 2022 and taken on record by the Board of Directors none of the directorsis disqualified as on March 31 2022 from being appointed as a director in terms ofSection 164(2) of the Act;
f) With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in "Annexure A". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internalfinancial controls over financial reporting; g) In our opinion the managerial remunerationfor the year ended March 31 2022 has been paid/ provided by the company to its directorsis in accordance with the provisions of section 197 read with schedule V of the Act;
h) In our opinion and to the best of our information and according tothe explanations given to us we report as under with respect to other matters to beincluded in the Auditor's Report in accordance with Rule 11 of the Companies (Auditand Auditors) Rules 2014:
i. The Company has disclosed the impact of pending litigations on itsfinancial position in its Ind AS
Financial Statements Refer Note 32 Sub Note 12 to the Ind ASFinancial Statements.
ii. The Company did not have any long-term contracts includingderivative contracts; as such the question of commenting on any material foreseeablelosses thereon does not arise;
iii. There has been an occasion in case of the Company during the yearunder report to transfer sums to the
Investor Education and Protection Fund. However there had been no delayin transferring such sums does not arise;
iv. (a) The Management has represented that to the best of itsknowledge and belief no funds (which are material either individually or in theaggregate) have been advanced or loaned or invested (either from borrowed funds or sharepremium or any other sources or kind of funds) by the Company to or in any other person orentity including foreign entity ("Intermediaries") with the understandingwhether recorded in writing or otherwise that the Intermediary shall whether directlyor indirectly lend or invest in other persons or entities identified in any mannerwhatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provideany guarantee security or the like on behalf of the Ultimate Beneficiaries;
(b) The Management has represented that to the best of its knowledgeand belief no funds (which are material either individually or in the aggregate) havebeen received by the Company from any person or entity including foreign entity("Funding Parties") with the understanding whether recorded in writing orotherwise that the Company shall whether directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of theFunding Party ("Ultimate Beneficiaries") or provide any guarantee security orthe like on behalf of the Ultimate Beneficiaries;
(c)Based on the audit procedures that have been considered reasonableand appropriate in the circumstances nothing has come to our notice that has caused us tobelieve that the representations under sub-clause (i) and (ii) of Rule 11(e) as providedunder (a) and (b) above contain any material misstatement.
Annexure referred to in paragraph 1 under heading Report on Other Legaland Regulatory Requirements of our Report of even date to the members of Warren TeaLimited on the financial statements of the Company for the year ended 31stMarch 2022
To the best of our information and according to the explanationsprovided to us by the Company and the books of account and records examined by us in thenormal course of audit we state that:
i. (a) A) The Company has maintained proper records showing fullparticulars including quantitative details and situation of property plant andequipment.
B) The company has maintained proper records showing full particularsof intangible assets.
b. The fixed assets have been physically verified by the management asper a phased program of verification. In our opinion the frequency of verification isreasonable having regard to the size of the Company and the nature of its assets. Therewere no discrepancy which was noticed in course of such verification.
c) The title deed of all immoveable properties disclosed in thefinancial statement are held in the name of the company
d) There has been no revaluation of assets during the year.
e) Based on the information and explanation given to us no proceedingshad been initiated against the company for holding any benami property under the BenamiTransactions (Prohibition) Act 1988.
ii. (a) As explained to us the inventories were physically verifiedduring the year by the Management at reasonable intervals however considering the natureof the item involved as explained to us the process is acceptable as per the industrynorms. However there is no discrepancies of 10% or more which were noticed on physicalverification.
(b) On the basis of information and explanation given to us we reportthat the company has been sanctioned working capital limits in excess of five crorerupees in aggregate from banks or financial institutions on the basis of security ofcurrent but the company has not filed the quarterly returns or statements with such banksor financial institutions and hence we are not able to verify and accordingly to reportupon the agreement of such returns/statements with the books of accounts of the Companyfor the year.
iii. 3. (a) The Company has granted loans to other entities during theyear but has not made any investment in provided any guarantee or security granted anyloans or advances in the nature of loans secured or unsecured to companies firms andLimited liability partnership to companies as specified in Section 185 and 186 of the Act.
3(a) (A) The clause is not applicable as company has not made anyamount during the year with respect to any loans or advances or guarantees or securitiesto subsidiaries joint ventures and associates.
(B) The company has granted loans to one entity and one party otherthan (a) above of an amount aggregating to Rs. 60 lacs And the balance outstanding at theBalance Sheet is Rs. 59.25 lacs
(b) The loan given to one entity is interest bearing and hence in ouropinion the terms and condition at which the same is provided is not prejudicial to theinterest of the company. However in respect of loan to one party is interest free howeverthe conditions at which the same has been provided does not seem to be prejudicial to theinterest of the company as the period of repayment is provided however the same beinginterest free we are unable to comment on this aspect.
(c) As informed and explained to us the loans provided during the yearhave stipulated period of repayment. However there is no payment of interest during theyear and hence we are unable to comment whether the receipt are regular.
(d) & (e) The amount is not overdue and hence the related clauseand clause is not applicable.
(f) The loans and advances granted are not repayable on demand and havespecified period for repayment and hence related clause is not applicable.
iv. In our opinion and as per the information & explanations givento us in respect of loans investments guarantees and security the company hascomplied with the provisions of section 185 and 186 of the companies act 2013
v. The Company has not accepted any deposits from the public or amountswhich are deemed to be deposits covered under Section 73 to 76 of the Companies Act2013. Hence reporting under clause 3(v) of the Order is not applicable.
vi. We have broadly reviewed the books of account maintained by theCompany pursuant to the Rules made by the Central Government for the maintenance of costrecords under section 148(i) of the Act and ar of the opinion that prima facie theprescribed accounts and records have been made and maintained.
vii. According to the information and explanations given to us andbased on the records of the Company examined by us the Company is regular in depositingthe undisputed statutory dues including Goods & Service Tax Provident FundEmployees' State Insurance Income-tax Custom Duty and other material statutorydues as applicable with the appropriate authorities in India.
a) As explained to us the Company did not have any dues on account ofsales tax and customs duty. According to the information and explanations given to us noundisputed amounts payable in respect of Goods
& Service Tax provident fund Employees' State Insuranceincome tax Custom duty and other material statutory dues were in arrears as at 31stMarch 2022 for a period of more than six months from the date they became payable.
b) According to information and explanation given to us there are nodisputed dues of Goods & Service Tax provident fund Employees' State InsuranceCustom duty Value Added Tax Service Tax and Excise Duty and other material statutorydues which has not been deposited. The particulars of dues of Income Tax & Sales Taxwhich has not yet been deposited on account of dispute are as follows:
viii. There were no transactions relating to previously unrecordedincome that have been surrendered or disclosed as income during the year in the taxassessments under the Income Tax Act 1961 (43 of 1961).
ix. (a) Based on the audit procedures and according to the informationand explanations given to us we report that the company has not defaulted in repayment ofloans borrowed and substantial part of the are repayable on demand and hence there is nostipulation to repayment hence whether the company has defaulted in repayment of loans orother borrowings or in the payment of interest thereon to any lender cannot be reported.
(b) The Company has not been declared as a wilful defaulter by any bankor financial institution or government or government authority.
(c) The Company has applied the term loan taken during the year for thepurposes for which it has been obtained.
(d) On an overall examination of the financial statements of theCompany funds raised on short- term basis have prima facie not been used during theyear for long-term purposes by the Company
(e) On an overall examination of the financial statements of theCompany the Company has not taken any funds from any entity or person on account of or tomeet the obligations of its subsidiaries associates or joint ventures;
(f) The Company has not raised any loans against the pledge ofsecurities and hence reporting on clause 3(ix)(f) of the Order is not applicable
x. (a) The Company has not raised moneys by way of initial public offeror further public offer (including debt instruments) during the year and hence reportingunder clause 3(x)(a) of the Order is not applicable.
(b) During the year the Company has not made any preferentialallotment or private placement of shares or convertible debentures (fully or partly oroptionally) and hence reporting under clause 3(x)(b) of the Order is not applicable.
xi. (a) No fraud by the Company and no material fraud on the Companyhas been noticed or reported during the year.
(b) No report under sub-section (12) of section 143 of the CompaniesAct has been filed in Form ADT-4 as prescribed under rule 13 of Companies (Audit andAuditors) Rules 2014 with the Central Government during the year and upto the date ofthis report.
(c) There has been no instance of whistle-blower complaints received bythe company during the year under audit.
xii. In our opinion company is not a Nidhi company and thereforeclause 3(xii) of the order is not applicable.
xiii. Based upon the audit procedures performed and according to theinformation and explanations given to us transactions with the related parties are incompliance with sections 177 and 188 of Companies Act 2013 where applicable and thedetails of such transactions have been disclosed in the Financial statements as requiredby the applicable accounting standards;
xiv. (a) In our opinion the Company has an internal audit systemcommensurate with the size and nature of its business.
(b) Based on the verification and examination carried out by us thereport of the internal auditors had been considered by us. xv. According to theinformation and explanations given to us the Company has not entered into any non-cashtransactions with directors or persons connected with him during the year under reviewtherefore clause 3(xv) of the order is not applicable
xvi. (a) In our opinion the Company is not required to be registeredunder section 45-IA of the Reserve Bank of India Act 1934. Thus clause 3(xvi)(a) (b)& (c) of the Order is not applicable.
(b) In our opinion there is no Core Investment Company within thegroup (as defined in the Core Investment Companies (Reserve Bank) Directions 2016) andaccordingly reporting under clause 3(xvi)(d) of the Order is not applicable.
xvii. Based upon the audit procedures performed and according to theinformation and explanations given to us the company has not incurred any cash losses inthe financial year covered by our audit and in the immediately preceding financial year;
xviii. During the year there is no resignation of the statutoryauditors.
xix. According to the information and explanation given to us and onthe basis of the financial ratios ageing and expected dates of realization of financialassets and payment of financial liabilities other information accompanying the financialstatements our knowledge of the Board of Directors and management plans and based on ourexamination of the evidence supporting the assumptions we are of the opinion that nomaterial uncertainty exists as on the date of audit report that the company is not capableof meeting its liabilities existing at the date of balance sheet as and when they fall duewithin a period of one year from the balance sheet date. We further state that ourreporting is based on the facts up to the date of the audit report and we neither give anyguarantee nor any assurance that all liabilities falling due within a period of one yearfrom the balance sheet date will get discharged by the company as and when they fall due;
xx. The Company is not required to spent any amount in Corporate SocialResponsibilities under the act. Hence relevant clause is not Applicable
xxi. There has been no qualification by the respective auditor in theCompanies (Auditor's Report) Order (CARO) reports of the associate company includedin the consolidated financial statement and hence the other related information is notapplicable.
Annexure A referred to in paragraph 2(f) under heading Report on OtherLegal and Regulatory Requirements of our Report of even date to the members of ABC PrivateLimited on the financial statements of the Company for the year ended 31stMarch 2022
Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financialreporting of ('the Company') as of 31st March 2022 in conjunction with our audit of thestandalone financial 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 andmaintaining internal financial controls. These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to Company's policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under theCompanies Act 2013.
Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. 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 aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the standalone financial statements whether due tofraud or error.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internalfinancial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A Company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A Company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the Company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the Company are being made only in accordance with authorizations ofmanagement and directors of the Company; and
(3) provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the Company's assets thatcould have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls with reference toStandalone Financial Statements
Because of the inherent limitations of internal financial controls withreference to Standalone Financial Statements including the possibility of collusion orimproper management override of controls material misstatements due to error or fraud mayoccur and not be detected. Also projections of any evaluation of the internal financialcontrols over financial reporting to future periods are subject to the risk that theinternal financial control over financial reporting may become inadequate because ofchanges in conditions or that the degree of compliance with the policies or proceduresmay deteriorate.
In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at 31st March 2022 basedon the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note.