TATA COFFEE LIMITED
ANNUAL REPORT 2011-2012
AUDITORS` REPORT
TO THE MEMBERS OF
TATA COFFEE LIMITED
1. We have audited the attached Balance Sheet of Tata Coffee Limited (the
Company) as at March 31, 2012 and also the related Profit and Loss
Statement and the Cash Flow Statement for the year ended on that date
annexed thereto. These financial statements are the responsibility of the
Company`s management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards generally
accepted in India. Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements
are free of material mis-statement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.
3. As required by the Companies (Auditor`s Report) Order, 2003,
(hereinafter referred to as `the Order`) as amended by the Companies
(Auditors Report) Order, 2004 issued by the Central Government of India in
terms of sub-section (4A) of Section 227 of the Companies Act, 1956, we
enclose in the Annexure a statement on the matters specified in paragraphs
4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to above, we report
that:
i. We have obtained all the information and explanations, which to the best
of our knowledge and belief were necessary for the purposes of our audit;
ii. In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of those books;
iii. The Balance Sheet, Profit and Loss Statement and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
iv. In our opinion, the Balance Sheet, Profit and Loss Statement and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of Section 211 of the Companies
Act, 1956;
v. On the basis of written representations received from the directors as
on March 31, 2012 and taken on record by the Board of Directors, we report
that none of the directors is disqualified as on March 31, 2012 from being
appointed as a director in terms of Clause (g) of sub-section (1) of
Section 274 of the Companies Act, 1956.
vi. In our opinion and to the best of our information and according to the
explanations given to us, the said financial statements together with the
notes there on and attached thereto give the information required by the
Companies Act, 1956, and give a true and fair view in conformity with the
accounting principles generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the Company
as at 31st March, 2012;
b) in the case of Profit and Loss Statement, of the Profit for the year
ended on that date;
c) in the case of Cash Flow Statement, of the cash flows for the year ended
on that date.
For SNB ASSOCIATES For N.M. RAIJI & CO.
Chartered Accountants Chartered Accountants
S. LAKSHMANAN J.M. GANDHI
Partner Partner
Membership No.: 20045 Membership No.: 37924
(Firm`s Registration No.: 015682N) (Firm`s Registration No.: 108296W)
Place: Bangalore
Date : 8th May, 2012
ANNEXURE TO THE AUDITORS` REPORT OF TATA COFFEE LIMITED
[Referred to in paragraph 3 of the Auditor`s report of even date to the
Members of Tata Coffee Limited on the financial statements for the year
ended March 31, 2012]
i.(a) The Company is maintaining proper records showing full particulars,
including quantitative details and the situation of its fixed assets;
(b) A major portion of fixed assets has been physically verified by the
management during the year. In our opinion, the frequency of verification
of the fixed assets by the management is reasonable having regard to the
size of the Company and the nature of its assets. The discrepancies noticed
have been properly dealt with in the books of account;
(c) The assets disposed off during the year are not significant and
therefore do not affect the going concern assumption.
ii.(a) The management has conducted physical verification of inventory at
reasonable intervals. In our opinion and according to the information and
explanations given to us, the procedure for physical verification of
inventory followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business;
(b) In our opinion, the Company has maintained proper records of inventory.
The discrepancies between the physical stocks and the book stocks were not
material and have been properly dealt with in the books of account.
iii. In our opinion and according to the information and explanations given
to us, the Company has neither granted nor taken any loans, secured or
unsecured to/from the companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956.
iv. In our opinion and according to the information and explanations
provided to us, there are adequate internal control procedures commensurate
with the size of the Company and the nature of its business with regard to
purchase of inventory and fixed assets and for sale of goods and services.
During the course of our audit, no major weakness has been noticed in the
internal control system.
v. In our opinion, and according to the information and explanations given
to us, there are no contracts and arrangements, the particulars of which
need to be entered in the register maintained under Section 301 of the
Companies Act, 1956.
vi. The Company has not accepted any deposits from the public.
vii. In our opinion, the company has a system of internal audit, which is
commensurate with the size and nature of its business.
viii. We have broadly reviewed the books of accounts maintained by the
Company pursuant to the rules made by the Central Government under Section
209(1)(d) of the Companies Act, 1956 for maintenance of Cost records in
respect of Coffee, Coffee products and tea and are of the opinion that,
prima facie, the prescribed accounts and records have been made and
maintained. We have not, however, made a detailed examination of the
records with a view to determine whether they are accurate or complete.
ix.(a) As per the records of the Company and information and explanations
provided to us, the Company is generally regular in depositing with
appropriate authorities undisputed amount of provident fund, investor
education and protection fund, employees state insurance, income-tax,
sales-tax, wealth-tax, service tax, customs duty, excise-duty, cess and
other applicable statutory dues. No undisputed amount was outstanding as at
31st March, 2012 for a period of more than six months from the date they
became payable.
(b) As at the Balance Sheet date, the following are the details of disputed
Income Tax, Excise Duty, Customs Duty, Service Tax, Sales Tax and Cess that
have not been deposited with the concerned authorities;
Nature Relevant Disputed Forum Where
of dues Financial amount dispute is pending
Year (in Lakhs)
Central 2003-04 8.34 Karnataka High Income Court
Tax
2004-05 1.91 Karnataka High Court
x. The Company has neither accumulated losses at the end of the financial
year nor incurred cash losses during the year and in the immediately
preceding financial year.
xi. Based on our audit procedures and the information and explanations
given by the management, we are of the opinion that the Company has not
defaulted in repayment of dues to any financial institution, bank or
debenture holders.
xii. Based on our examination and according to the information and
explanations given to us, the Company has not granted loans and advances on
the basis of security by way of pledge of shares, debentures and other
securities.
xiii. The Company is not a chit/nidhi/mutual benefit fund/society.
xiv. The Company is not dealing or trading in shares, securities,
debentures and other investments.
xv. On the basis of the information and explanations given to us the
Company has not given any guarantee for loans taken by others from bank or
financial institutions.
xvi. During the year, the company has taken the term loans. In our opinion
and according to the information and explanation given to us the term loans
have been applied for the purposes for which they were obtained.
xvii. On the basis of our examination of the books of account and the
information and explanations given to us, in our opinion, the funds raised
by the Company on short-term basis have not been used for long-term
investment.
xviii. During the year, the Company has not made any preferential allotment
of shares to parties and companies covered in the Register maintained under
Section 301 of the Act.
xix. To the best of our knowledge and belief and according to the
information and explanations given to us, for the debentures outstanding
necessary security has been created as per the terms of the issue.
xx. The management has disclosed the end use of money raised through partly
convertible debentures in the Notes on Accounts to the financial statements
vide Note No. 2.32. The said details have been verified by us.
xxi. To the best of our knowledge and according to the information and
explanation given to us, having regard to the nature of the Company`s
business, no material fraud on or by the Company was noticed or reported
during the year.
For SNB ASSOCIATES For N.M. RAIJI & CO.
Chartered Accountants Chartered Accountants
S. LAKSHMANAN J.M. GANDHI
Partner Partner
Membership No.: 20045 Membership No.: 37924
(Firm`s Registration No.: 015682N) (Firm`s Registration No.: 108296W)
Place: Bangalore
Date : 8th May, 2012 |