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Jay Shree Tea & Industries Ltd.

BSE: 509715 Sector: Agri and agri inputs
NSE: JAYSREETEA ISIN Code: INE364A01020
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OPEN 87.60
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VOLUME 2327
52-Week high 145.00
52-Week low 73.60
P/E 42.93
Mkt Cap.(Rs cr) 254
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 87.60
CLOSE 87.55
VOLUME 2327
52-Week high 145.00
52-Week low 73.60
P/E 42.93
Mkt Cap.(Rs cr) 254
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Jay Shree Tea & Industries Ltd. (JAYSREETEA) - Auditors Report

Company auditors report

To the Members of

Jay Shree Tea & Industries Limited

Report on the Audit of the Standalone Financial Statements Qualified Opinion

We have audited the accompanying standalone financial statements of Jay Shree Tea &Industries Limited ("the Company") which comprise the Balance Sheet as at March31 2021 the Statement of Profit and Loss including other comprehensive income the CashFlow Statement and the Statement of Changes in Equity for the year then ended and notesto the standalone financial statements including a summary of significant accountingpolicies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matters described in the 'Basis for QualifiedOpinion' section of our report the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 as 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 March312021 its profit including other comprehensive income its cash flows and the changesin equity for the year ended on that date.

Basis for Qualified Opinion

a) We draw attention to Note 38 (b) to the standalone financial statements regardingnon-recognition of current tax expense of Rs 782.16 lakhs on the profit for the year endedMarch 31 2021 for reasons more fully disclosed in Note No 38 (a) and 38 (b) to thestandalone financial statements which in our view is not in accordance with IndianAccounting Standard (Ind AS) 12 "Income Taxes" as prescribed under Section 133of the Companies Act 2013. We are unable to comment on the consequential implicationsarising on account of non-recognition of current tax expense. Had the Company recognisedthe aforesaid current tax expense the net profit after tax for the year totalComprehensive Income and Other Equity each would have been reduced by Rs 782.16 lakhs.

b) Attention is also invited to Note 38 (c) to the standalone financial statementswhich more fully explains that the Company's investment in Equity and Preference Shares ofa Wholly Owned Subsidiary with a carrying value of Rs. 4681.51 lakhs and Rs 1101.93lakhs respectively as at March 31 2021 for which the Company has not carried outimpairment assessment although the net worth of the Wholly Owned Subsidiary is negative tothe tune of Rs 2379.66 lakhs as on March 31 2021 which indicates existence ofimpairment indicators. This is not in accordance with Indian Accounting Standard (Ind AS)36 "Impairment of Assets" and Indian Accounting Standard (Ind AS) 109"Financial Instruments" respectively as prescribed under Section 133 of theCompanies Act 2013. Since the Company has not carried out impairment assessment of theaforesaid investments we are unable to quantify the amount of impairment provisionrequired if any and its possible effects if any on these standalone financialstatements.

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing (SAs) as specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the 'Auditor'sResponsibilities for the Audit of the Standalone Financial Statements' section of ourreport. We are independent of the Company in accordance with the 'Code of Ethics' issuedby the Institute of Chartered Accountants of India together with the ethical requirementsthat are relevant to our audit of the financial statements under the provisions of the Actand the Rules thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the Code of Ethics. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for ourqualified audit opinion on the standalone financial statements.

Emphasis of Matter

We draw attention to Note 40 of the standalone financial statements which describesthe uncertainties and economic disruptions faced by the Company as a result of COVID-19pandemic and its impact on its operations as assessed by the management. The actualresults may differ from such estimates depending on future developments. Our opinion isnot modified in respect of this matter.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements for the financial yearended March 31 2021. These matters were addressed in the context of our audit of thestandalone financial statements as a whole and in forming our opinion thereon and we donot provide a separate opinion on these matters. In addition to the matter described inthe 'Basis for Qualified Opinion' section we have determined the matters described belowto be the

key audit matters to be communicated in our report. For each matter below ourdescription of how our audit addressed the matter is provided in that context.

We have fulfilled the responsibilities described in the Auditor's responsibilities forthe audit of the standalone financial statements section of our report including inrelation to these matters. Accordingly our audit included the performance of proceduresdesigned to respond to our assessment of the risks of material misstatement of thestandalone financial statements. The results of our audit procedures including theprocedures performed to address the matters below provide the basis for our audit opinionon the accompanying standalone financial statements.

Key audit matters How our audit addressed the key audit matter
Estimation of Useful Life of Bearer Plants
(as described in Note 3.3 and 4(a) to the standalone financial statements) Our audit procedures included the following:
The carrying value of Bearer Plants as on March 31 2021 is Rs. 5040.94 lakhs. • Assessed the management's estimate of useful life of Bearer Plants for which we
(1) evaluated the consistency of estimates with the Company's pattern of economic benefits embodied in such assets and future operating plans including acquisitions and retirements of the Bearer Plants;
Estimation of useful life of Bearer Plants requires the management to exercise significant judgement. The changes in natural factors may affect the useful life expectancy of such assets and consequently have an impact on the carrying value of these assets and depreciation expense. (2) compared the useful life estimates with those adopted by comparable tea producers as per available external information; and
As per Ind AS 16 'Property Plant and Equipment) the management reviews estimated useful life and residual value of Bearer Plants annually and account for changes where appropriate. (3) considered the Company's historical experience.
• Evaluated the assumptions and critical judgements used by the management and tested the underlying supporting documents / details.
This matter is identified as a key audit matter due to significant estimates / judgment involved in estimating useful life for these assets.
• Assessed the adequacy of related disclosures in the standalone financial statements.
Valuation of biological assets and agriculture produce
(as described in Note 3.8 3.9 8 and 8(a)to the standalone financial statements)
As required by Ind AS 41 "Agriculture" management estimates the fair value of unplucked tea leaves (biological assets) and plucked tea leaves (agriculture produce) as at the balance sheet date through the use of valuation model and recent transaction prices. As at March 31 2021 the carrying value of biological assets included under current assets is Rs. 63.06 lakhs. Our audit procedures included the following:
• Understood evaluated the design and tested the operating effectiveness of internal controls over valuation of biological assets and agriculture produce inventory.
• Assessed the significant assumptions used in the valuation the possible impact of COVID-19 pandemic on measurement of such estimates.
Finished goods produced from agricultural produce are valued at lower of cost (arrived at by adding the cost of conversion to the fair value of agricultural produce) and the net realisable value.
The biological assets are stated at fair value less costs to sell. • Tested the data inputs used in the fair valuation and compared them with underlying supporting documents.
Since there is no active market for harvested or unharvested tea leaves significant judgement is involved in considering key assumptions used in determining average prevalent selling prices of tea leaves average quality of tea leaves and quantity of unplucked leaves. Accordingly this matter is identified as a key audit matter. • Assessed the adequacy of related disclosures in the standalone financial statements for compliance with disclosure requirements.

Other Information

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Management Discussion and AnalysisReport of Directors including Annexures to the Report of Directors Corporate Governanceand Statement pursuant to Section 129 of the Companies Act 2013 but does not include thestandalone financial statements and our auditor's report thereon.

Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether such other informationis materially 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 the Management for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these standalone financial statementsthat give a true and fair view of the financial position financial performance includingother comprehensive income cash flows and changes in equity of the Company in accordancewith the accounting principles generally accepted in India including the IndianAccounting Standards (Ind AS) specified under section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended. 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 the 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 standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the standalone financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative 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 Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls with reference to financial statements in place andthe operating effectiveness 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 standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

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 standalone financial statementsfor the financial year ended March 31 2021 and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of subsection (11) of section 143 ofthe Act we give in the "Annexure 1"a statement on the matters specified inparagraphs 3 and 4 of the Order.

2. As required by Section 143(3) of the Act we report that:

(a) We have sought and except for the matters described in the Basis for QualifiedOpinion paragraph obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purposes of our audit;

(b) Except for the matters described in the Basis for Qualified Opinion paragraph inour opinion proper books of account as required by law have been kept by the Company sofar as it appears from our examination of those books;

(c) The Balance Sheet the Statement of Profit and Loss including other comprehensiveincome the Cash Flow Statement and Statement of Changes in Equity dealt with by thisReport are in agreement with the books of account;

(d) Except for the effects of the matters described in the Basis for Qualified Opinionparagraph above in our opinion the aforesaid financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Companies (IndianAccounting Standards) Rules 2015 as amended;

(e) The matters described in the Basis for Qualified Opinion paragraph and Emphasis ofMatter paragraph above in our opinion may have an adverse effect on the functioning ofthe Company;

(f) On the basis of the written representations received from the directors as on March31 2021 and taken on record by the Board of Directors none of the directors isdisqualified as on March 312021 from being appointed as a director in terms of Section164 (2) of the Act;

(g) The qualification relating to the maintenance of accounts and other mattersconnected therewith are as stated in the Basis for Qualified Opinion paragraph above;

(h) With respect to the adequacy of the internal financial controls with reference tostandalone financial statements and the operating effectiveness of such controls refer toour separate Report in "Annexure 2" to this report;

(i) In our opinion the managerial remuneration for the year ended March 312021 hasbeen paid / provided by the Company to its directors in accordance with the provisions ofsection 197 read with Schedule V to the Act;

(j) 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 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone financial statements - Refer Note 30 to the standalonefinancial statements;

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses;

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For S.R. Batliboi & Co. LLP
Chartered Accountants ICAI Firm Registration Number: 301003E/E300005
per Sanjay Kumar Agarwal
Partner
Membership Number: 060352
UDIN: 21060352AAAACE3489

"ANNEXURE 1" TO THE AUDITORS' REPORT

Referred to our report of even date to the members of Jay Shree Tea & IndustriesLimited as at and for the year ended March 31 2021

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of property plant and equipment.

(b) The Company has a program of verification of property plant and equipment to coverall the items in a phased manner over a period of three years which in our opinion isreasonable having regard to the size of the Company and the nature of its assets. Pursuantto the program certain property plant and equipment were physically verified by themanagement during the year. According to the information and explanations given to us nomaterial discrepancies were noticed on such verification.

(c) According to information and explanation given to us and on the basis of ourexamination of the records of the Company the title deeds of immovableproperties/right-of-use assets as shown in Note 4(d) to the standalone financialstatements are held in the name of the Company except for

(a) 4 (four) tea garden land leases having a gross carrying value of property plantand equipment thereon including Plantation and Buildings of Rs. 2461.23 lakhs and Rs.446.26 lakhs respectively (net carrying value of Rs. 2182.26 lakhs and Rs. 288.22 lakhsrespectively) is under renewal;

(b) 2 (two) tea garden land and Plantation thereon having a gross carrying value of Rs.45.44 lakhs and Rs. 63.86 lakhs respectively (net carrying value of Rs. 45.44 lakhs andRs. 57.65 lakhs respectively) and 2 (two) of Buildings with gross carrying value of Rs.16.48 lakhs (net carrying amount of Rs. 9.35 lakhs) for which registration in the name ofthe Company is pending.

(ii) Inventory at certain locations were verified by the management during the yearwhile at other locations the physical verification was carried out by the managementsubsequent to the balance sheet date owing to Covid-19 pandemic. In our opinion thefrequency of verification is reasonable. No material discrepancies were noticed on suchphysical verification. Inventories lying with third parties have been confirmed by them asat March 312021 and no material discrepancies were noticed in respect of suchconfirmations.

(iii) (a) The Company has granted loans to three companies covered in the registermaintained under section 189 of the Companies Act 2013. In our opinion and according tothe information and explanations given to us the terms and conditions of the grant ofsuch loans are not prejudicial to the Company's interest.

(b) The Company has granted loans that are re-payable on demand to the companies asstated above covered in the register maintained under section 189 of the Companies Act2013. We are informed that the loans are in the nature of current account balance and assuch there has been no default on the part of the parties to whom the money has been lent.As represented to us the interest as and when falls due for payment are also added to thecurrent account balance.

(c) There are no amounts of loans granted to companies firms or other parties listedin the register maintained under section 189 of the Companies Act 2013 which are overduefor more than ninety days.

(iv) In our opinion and according to the information and explanations given to usprovisions of section 185 and 186 of the Companies Act 2013 in respect of loans andadvances given investments made and guarantees and securities given have been compliedwith 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) We have broadly reviewed the books of account maintained by the Company pursuantto the rules made by the Central Government for the maintenance of cost records undersection 148(1) of the Companies Act 2013 related to manufacture of goods and are of theopinion that prima facie the specified accounts and records have been made andmaintained. We have not however made a detailed examination of the same.

(vii) (a) Undisputed statutory dues including provident fund employees' stateinsurance income tax sales tax service tax duty of customs duty of excise valueadded tax goods and service tax cess and other statutory dues have generally beenregularly deposited with the appropriate authorities though there has been a slight delayin a few cases except for advance income tax for current year which has not beendeposited by the Company.

(b) According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees' state insurance income tax service taxsales tax duty of customs duty of excise value added tax goods and service tax cessand other statutory dues were outstanding at the year end for a period of more than sixmonths from the date they became payable except for advance income tax for current yearwhich has not been deposited by the Company.

(c) According to the records of the Company the dues of income tax sales tax servicetax duty of excise and value added tax on account of any dispute are as follows:

Name of the statute Nature of Dues Amount (Rs. In Lakhs) Period to which the amount relates Forum where dispute is pending
Income Tax Act 1961 Income tax 124.84 2007-08 2013-14 2016-17 Commissioner of Income Tax (Appeals)
Income Tax Act 1961 Income tax 45.30 2005-06 to 2008-09 Hon'ble High Court Calcutta
WB Value Added Tax Act 2003/ Central Sales Tax Act 1956 Sales Tax/Central Sales Tax 71.63 2005-07 2010-11 1213 to 14-15 West Bengal Appellate & Revisional Board
W.B. Value Added Tax Act 2003/ The Central Sales Tax Act 1956 Sales Tax/Central Sales Tax 0.73 1999-00 and 2001-02 DC Commercial Taxes and Assistant Commissioner of Sales Tax
W.B. Value Added Tax Act 2003 Sales Tax 25.52 2003-04 2005-06 to 2007-08 2011-12 W.B. Taxation Tribunal
The Central Excise Act 1944 Excise Duty 50.05 2004-05 CESTAT Kolkata

(viii) In our opinion and according to the information and explanations given by themanagement the Company has not defaulted in repayment of loans or borrowing to banks orfinancial institution. Based on our audit procedures and as per the information andexplanations given by the management the Company did not have any outstanding dues to agovernment or due to debentures holders.

(ix) In our opinion and according to the information and explanations given by themanagement the Company has utilized the monies raised by way of term loans for thepurposes for which they were raised. Based on the information and explanations given bythe management the Company has not raised any money by way of initial public offerfurther public offer and debt instruments.

(x) Based upon the audit procedures performed for the purpose of reporting the true andfair view of the standalone financial statements and according to the information andexplanations given by the management we report that no material fraud by the Company orno material fraud on the Company by the officers and employees of the Company has beennoticed or reported during the year.

(xi) According to the information and explanations given by the management themanagerial remuneration has been paid / provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct 2013.

(xii) In our opinion the Company is not a nidhi company. Therefore the provisions ofclause 3(xii) of the order are not applicable to the Company and hence not commented upon.

(xiii) According to the information and explanations given by the managementtransactions with the related parties are in compliance with section 177 and 188 ofCompanies Act 2013 where applicable and the details have been disclosed in the notes tothe financial statements as required by the applicable accounting standards.

(xiv) According to the information and explanations given to us and on an overallexamination of the balance sheet the Company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the yearunder review and consequently reporting requirements under clause 3(xiv) are notapplicable to the Company and not commented upon.

(xv) According to the information and explanations given by the management the Companyhas not entered into any non-cash transactions with directors or persons connected withhim as referred to in section 192 of Companies Act 2013.

(xvi) According to the information and explanations given to us the provisions ofsection 45-IA of the Reserve Bank of India Act 1934 are not applicable to the Company.

For S.R. Batliboi & Co. LLP
Chartered Accountants ICAI Firm Registration Number: 301003E/E300005
per Sanjay Kumar Agarwal
Partner
Membership Number: 060352
UDIN: 21060352AAAACE3489

"ANNEXURE 2" TO THE AUDITORS' REPORT

ANNEXURE-2 TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE STANDALONE FINANCIALSTATEMENTS OF JAY SHREE TEA & INDUSTRIES LIMITED

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 with reference to standalone financialstatements of Jay Shree Tea & Industries Limited ("the Company") as of March312021 in conjunction with our audit of the standalone financial statements of theCompany 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 considering 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 ("ICAI"). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to the Company's policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to these standalone financial statements based on our audit. Weconducted our audit in accordance with the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting (the "Guidance Note") and the Standards onAuditing as specified under section 143(10) of the Act to the extent applicable to anaudit of internal financial controls both issued by ICAI. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlswith reference to these standalone financial statements was established and maintained andif such controls operated effectively in all material respects.

An audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls with reference to standalone financial statements andtheir operating effectiveness. Our audit of internal financial controls with reference tostandalone financial statements included obtaining an understanding of internal financialcontrols with reference to these standalone financial statements assessing the risk thata material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement 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 qualified audit opinion on the Company's internal financialcontrols with reference to these standalone financial statements.

Meaning of Internal Financial Controls With Reference to Standalone FinancialStatements

A Company's internal financial controls with reference to standalone financialstatements is a process designed to provide reasonable assurance regarding the reliabilityof financial reporting and the preparation of financial statements for external purposesin accordance with generally accepted accounting principles. A company's internalfinancial control with reference to standalone financial statements includes thosepolicies and procedures that

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls With Reference to StandaloneFinancial Statements

Because of the inherent limitations of internal financial controls with reference tostandalone financial statements including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols with reference to standalone financial statements to future periods are subjectto the risk that the internal financial control with reference to standalone financialstatements may become inadequate because of changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.

Qualified Opinion

According to the information and explanations given to us and based on our audit thefollowing material weaknesses have been identified as at March 312021:

a) Attention is drawn to Paragraph (a) of 'Basis for Qualified Opinion' section ofIndependent Auditor's Report on Standalone Financial Statements more fully describedtherein regarding non-recognition of current tax expense which could result intonon-compliance with Indian Accounting Standard (Ind AS) 12 "Income Taxes" andcould potentially result in misstatement of Company's Standalone Financial Statements.

b) Attention is also drawn to Paragraph (b) of 'Basis for Qualified Opinion' section ofIndependent Auditor's Report on Standalone Financial Statements more fully describedtherein which states that the Company has not carried out impairment assessment ofcertain investments which could result into non-compliance with Indian AccountingStandard (Ind AS) 36 "Impairment of Assets" and Indian Accounting Standard (IndAS) 109 "Financial Instruments" and could potentially result in misstatement ofCompany's Standalone Financial Statements.

A 'material weakness' is a deficiency or a combination of deficiencies in internalfinancial control with reference to standalone financial statements such that there is areasonable possibility that a material misstatement of the company's annual or interimfinancial statements will not be prevented or detected on a timely basis.

In our opinion except for the possible effects of the material weaknesses describedabove on the achievement of the objectives of the control criteria the Company hasmaintained in all material respects adequate internal financial controls with referenceto these standalone financial statements and such internal financial controls withreference to standalone financial statements were operating effectively as of March312021 based on the internal control over financial reporting criteria established bythe Company considering the essential components of internal control stated in theGuidance Note issued by the ICAI.

Explanatory paragraph

We also have audited in accordance with the Standards on Auditing issued by ICAI asspecified under Section 143(10) of the Act the standalone financial statements of JayShree Tea & Industries Limited which comprise the Balance Sheet as at March 31 2021and the related 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. These material weaknesses wereconsidered in determining the nature timing and extent of audit tests applied in ouraudit of the March 312021 standalone financial statements of Jay Shree Tea &Industries Limited and this report affect our report dated June 30 2021 which expresseda qualified opinion on those financial statements.

For S.R. Batliboi & Co. LLP
Chartered Accountants ICAI Firm Registration Number: 301003E/E300005
per Sanjay Kumar Agarwal
Partner
Membership Number: 060352
UDIN: 21060352AAAACE3489

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