NORBEN TEA AND EXPORTS LIMITED
ANNUAL REPORT 2011-2012
AUDITORS` REPORT
TO
THE MEMBERS OF
NORBEN TEA & EXPORTS LTD.
1. We have audited the attached Balance Sheet of NORBEN TEA & EXPORTS
LIMITED as at 31st March 2012, the Statement of Profit & Loss and also the
Cash Flow Statement for the year ended on that date. 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 the 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 misstatement. 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, as amended
by the Companies (Auditor`s Report) (Amendment) Order, 2004 issued by the
Central Government of India in terms of sub-section (4A) of Section 227 of
the Companies Act 1956 and on the basis of such checks as we considered
appropriate and according to the information and explanations given to us,
we enclose in the Annexure a statement on the matters specified in
paragraphs 4&5 of the said Order.
4. Further attention is invited to the following notes to the Notes on
Account:
a) Note No. 18.01 regarding non-provision of actuarial gratuity liability
(amount not ascertained) and it`s impact on the profit for the year,
reserve & surplus and current liabilities at the year end, if any is
currently not ascertainable and commented upon by us.
b) Note No.7.02 regarding capitalization of expenses relating to
maintenance & plantation of young tea amounting to Rs.4060 thousands and as
a result the profit for the year, fixed assets and reserve & surplus at the
year end have been overstated to that extent.
5. The overall impact of the adjustments to be carried out as per remarks
as given in Para 4 above or otherwise has not been ascertained and
therefore can not be commented upon by us.
6. Further to above and also our comments in Annexure referred to in
paragraphs 3 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, Statement of Profit & Loss and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
(iv) In our opinion the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the Accounting
Standards(AS) except, AS-15 "Accounting For Employee Benefits" in respect
of provision for employee benefits referred to in sub-section (3C) of
section 211 of the Companies Act 1956;
(v) We have no such observations, which have an adverse effect on the
functioning of the company.
(vi) On the basis of written representations received from the Directors of
the company, and taken on record by the Board of Directors, we report that
none of the Directors is disqualified as at 31st March 2012 from being
appointed as a Director of the company in terms of clause(g) of sub-section
(1) of section 274 of the companies Act, 1956.
(vii) In our opinion and to the best of our information and according to
the explanations given to us the said accounts read in conjunction with
Significant Accounting Policies and Notes on Financial Statement as
referred to in Note No I to 33 subject to Para 4 above and our inability to
ascertain and comment on the overall impact with respect to these as state
in Para 5 above, gives the information required by the Companies Act 1956
in the manner so required 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 case of the Statement of Profit and Loss of the profit for the year
ended on that date; and
c. In the case of Cash Flow Statement of the cash flows for the year ended
on that date.
For GOENKA SHAW & CO.
Chartered Accountants
FRNO. 319075E
CA. S. K. SWAIN
Place: Kolkala. Partner
Dated: The 30th Day of May` 2012 Membership No. 061912
ANNEXURE TO THE AUDITOR`S REPORT:
Re: NORBEN TEA & EXPORTS LIMITED (Referred to in paragraph 3 of our report
of even date)
(i) (a) The Company has maintained proper records showing full particulars
including quantitative details and situation of its fixed assets.
(b) As informed, the fixed assets have been physically verified by the
management at the year end and no material discrepancies are reported to
have been noticed on such verification.
(c) During the year the company has not disposed off a substantial part of
it`s fixed assets, which effects the going concern concept.
(ii) (a) The inventory has been physically verified by the management
during the year. In our opinion the frequency of verification is
reasonable.
(b) In our opinion and according to the information & explanations given to
us, the procedures of physical verification of inventories followed by the
Management are reasonable and adequate in relation to the size of the
Company and nature of its business.
(c) On the basis of our examination of records of inventory and in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and the
book records were not material in relation to the operation of the company.
(iii) (a) On the basis of our examination of the books of account and
according to the information and explanations given to us, the Company has
not granted any loans secured or unsecured to Companies, firms or other
parties covered in the Register maintained under Section 301 of the
Companies Act` 1956.
(b) In view of our comment in paragraph iii(a) above clauses iii(b), iii(c)
& iii(d) of paragraph 4 of the aforesaid Order are not applicable to the
Company.
(c) On the basis of our examination of the books of account and according
to the information and explanations given to us, the company has taken
unsecured loan from a director during the year. The total amount involved
in the transaction was Rs. 8872 thousands and the year end balance was
Rs.Nil.
(d) In our opinion and according to the information and explanations given
to us, the rate of interest and other terms and conditions of the loans
taken by the company are not prima facie prejudicial to the interest of the
company.
(e) In our opinion and according to the information and explanations given
to us, the payment of the principal amount and interest are also regular.
(iv) In our opinion and according to the information and explanations given
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 the sale of goods and services.
Further during the course of our audit, we have neither come across, nor
have we been informed of any continuing failure to correct major weaknesses
in internal control system.
(v) (a) On the basis of our examination of the books of account and
according to the information and explanations given to us, the Company has
during the year entered into transaction that needs to be entered into the
Register maintained under Section 301 of the Companies Act 1956.
(b) According to the information and explanations given to us, the
transaction made in pursuance of such contract or arrangement have been
made at prices, which are reasonable having regard to the prevailing market
prices as on the date of such transaction.
(vi) In our opinion and according to the information and explanations given
to us, the Company has not accepted any deposit from the public within the
meaning of section 58A and 58AA or any other relevant provisions of the
Companies Act, 1956 and the Companies (Acceptance of Deposits) Rule 1975.
To the best of our knowledge and according to the information and
explanations given to us, no order has been passed by the Company Law Board
or National Company Law Tribunal or Reserve Bank of India or any other
Tribunal against the company.
(vii) According to the information & explanations given to us, the Company
has an internal audit system commensurate with the size and nature of its
business during the year.
(viii) On the basis of report produced, we are of the opinion that, prima
facie, the Cost records as prescribed by the central government under
clause (d) of subsection (1) of section 209 of the Act have been made and
maintained.
(ix) (a) On the basis of examination of the books of account and according
to the information & explanations given to us, the Company is regular in
depositing with appropriate authorities undisputed statutory dues except
West Bengal Rural Employment and Production/Primary Education
(W.B.R.E.P.P.E) Cess and Professional Tax. According to the information and
explanations given to us, the undisputed amounts payable are W.B.R.E.P.P.E.
Cess of Rs.2.25 lacs and Professional Tax of Rs.113 thousands, which were
outstanding as at 31st March 2012 for a period of more than six months from
the date they became payable.
(b) According to the information and explanations given to us there are no
statutory dues, which have not been deposited on account of any dispute.
(x) The Company has no accumulated losses and it has incurred no cash loss
during the financial year covered by our report and also in the immediately
preceding financial year.
(xi) Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the Company has not
defaulted in repayment of dues to financial institution, banks or debenture
holders during the year.
(xii) The company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other similar
securities.
(xiii) In our opinion the Company is not a chit fund or a nidhi/mutual
benefit fund/society, therefore the provision of clause (xiii) of paragraph
4 of the aforesaid Order is not applicable to the Company.
(xiv) As per records of the Company and the information & explanations
given to us by the management, the Company is dealing in or trading in
shares, securities, debenture and other investments and in our opinion,
proper records have been maintained of the transactions and contracts, and
timely entries have been made therein, also the shares, securities,
debentures and the other investments have been held by the Company in its
own name.
(xv) According to the information & explanations given to us, the Company
has not given any guarantee for loans taken by others, from banks or
financial institutions, the terms & conditions whereof are prejudicial to
the interest of the Company.
(xvi) On the basis of our examinations and according to the information and
explanations given to us, no term loan has been raised during the year.
(xvii) According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, we report that no
finds raised during the year on short-term basis have been used for long-
term investment.
(xviii) The Company has not raised any money by issue of shares during the
year. Therefore the provisions of clause (xviii) of paragraph 4 of the
aforesaid Order are not applicable to the Company.
(xix) The Company has not issued any debentures during the year under
audit. Accordingly, the provision of clause (xix) of paragraph 4 of the
aforesaid Order is not applicable to the Company.
(xx) The Company has not raised any money by way of public issue during the
year. Therefore the provisions of clause (xx) of the paragraph 4 of the
aforesaid Order are not applicable to the Company.
(xxi) During the course of our examination of the books of accounts carried
out in accordance with Generally Accepted Auditing Practices, we have
neither come across any instance of fraud on or by the Company, nor have we
been informed of any such case by the Management.
For GOENKA SHAW & CO.
Chartered Accountants
FR NO. 319075E
CA. S. K. SWAIN
Place: Kolkata Partner
Dated: The 30th Day of May` 2012 Membership No. 061912 |