Dear Shareholders
We are pleased to present the 79th Annual Report of the Company
accompanied by the Audited Statement of accounts for the year ended 31st March 2025:-
FINANCIAL RESULTS
(Rs in lakh)
|
31st March 2025 |
31st March 2024 |
Revenue from operations |
84972 |
72925 |
Profit before finance costs, depreciation and tax |
18907 |
6208 |
Less : Finance costs |
3915 |
3742 |
Profit before depreciation and tax |
14992 |
2466 |
Less : Depreciation/Amortisation expenses |
2179 |
2080 |
Profit/(Loss) before tax |
12813 |
386 |
Deferred Tax Charge /(credit) |
(84) |
(1169) |
Profit/(Loss) for the year |
12897 |
1555 |
EQUITY DIVIDEND
The Company entered its 80th year of its remarkable journey and
celebrated it on 2nd March,2025. On this joyous occasion the Board decided to recommend a
dividend of 10% i.e 0.50 paise per share (Fifty paise per share) on the face value of Rs5
each for your approval. This will be taxable in the hands of the shareholders. Last year
no dividend was paid.
SHARE CAPITAL
During the year ended 31st March, 2025 there is no change in the issued
and subscribed capital of the Company. The Company paid up share capital remains at
Rs1443.87 lakh comprising of 2,88,77,488 equity shares of Rs 5/- each as on 31st March,
2025. The authorized share capital of the Company is Rs6225 lakh.
TRANSFER TO RESERVES
The Board decided not to transfer any amount to the general reserves
out of the retained earnings for the year ended 31st March,2025.
REVIEW OF PERFORMANCE
All India Tea production declined by more than 6% at 1285 mn. Kg as
against 1368 mn. Kg last year. The demand for tea is increasing due to rising health
awareness, organic tea and e-commerce practices. Another source of support for the Tea
industry in India is tea cafes which are reshaping urban tea culture.
The Indian tea industry is renowned worldwide for its exceptional
quality, diverse product range, unique flavours and regional specialities. From the robust
flavours of Assam to the aromatic finesse of Darjeeling Indian teas continue to captivate
global palates.
The Fertilizer division of the Company at Kolkata maintained its
quality standard and improved its sales. The Company continued to provide full support to
farmers by making SSP of good quality available to them in maximum quantity to grow their
production. The strong network of dealers, retailers and well known Annapurna Brand helped
the Company to improve its market share.
Considering the operational challenges faced by sulphuric acid plant at
Pataudi, Gurugram, Haryana the Board took a decision in 2nd quarter and after careful
deliberations approved the closure of the said plant and disposal of the same. So in terms
of your approval in the Annual General Meeting held on 9th August,2024 the Company sold
and finalized the transaction concerning the land and the plant thereat adhering to
applicable laws.
India sugar production has reached 25.49 million tonnes in the 2024-25
season, down 18 per cent from a year ago. The production fall is attributed to a decline
in output in the country top three sugar producing states of Maharashtra, Uttar Pradesh
and Karnataka. The output was affected by El Nino and limited ground water resources for
irrigation. India is significantly increasing ethanol blending in petrol as part of its
Ethanol Blended Petrol (EBP) program. The program aims to reduce reliance on fossil fuels,
boost energy security, and improve air quality. India has already achieved a 18.36%
ethanol blending with petrol against target of 20% by 2025, with a longterm goal of 30% by
2030.
The major factors attributing to the operations of the company are:
i) Increase in Cachar and Assam crop and decrease in crop of Dooars and
Terai
ii) All round improvement in prices of tea due to shortage of
production
iii) Reduction in cost of production by optimization of labour
efficiency and other inputs
iv) The Single Superphosphate Plant at Khardah, West Bengal improved
its performance by increase in market share and hike in subsidy by Rs. 1264/- per M.T.
w.e.f 1st April,2024
v) Improvement in cane varieties and increase in the prices of sugar
Tea Estates
All India production dipped by 83 million kg. in 2024 at 1285 million
kg. compared to 1368 million kg. in 2023. The climate change and erratic weather
conditions and the early closure of tea estates by Tea Board have affected the crop
output. The effect of climate change is making Indian tea uncompetitive in global market
because Kenyan region receives rainfall throughout the year and temperature is always
under control whereas Indian regions are witnessing reduced rainfall and temperatures
ranging from 35-40 degree Celsius.
The silver lining this year was better price realisation and growing
exports. The tea prices in India increased by Rs.40/50 per kg depending upon quality
because of shortfall in production. Sri Lanka Crop loss added impetus to demand for Indian
Orthodox. The pro-active steps taken by the Tea Board to the issue of Maximum Residue
Limit (MRL) content helped in increasing the export. Despite geo-political challenges,
India tea exports were healthy and the rise in shipment was due to a high-risk appetite of
all tea exporters.
Your company own production was at 144.36 lakh kg compared to 143.16
lakh kg last year. The bought leaf production was reduced further from 8.91 lakh kg to
7.37 lakh kg. Average auction price for CTC tea surged by Rs48 per kg during April to
November period due to a supply demand gap which softened slightly at a later stage. Your
Company maintained very high quality standard and price realization of Cachar and Assam
increased by Rs45/- per kg, Darjeeling by Rs59/- and Dooars and Terai by Rs48/- per kg.
Your Company took several initiatives to enhance soil health, and created water body
through rain water harvesting where it was required and enhanced shade status for
achieving good micro-climate conditions in various tea estates of the Company to increase
yield and improve quality.
The Government of Assam continued to provide relief to the Tea industry
of Assam. We are thankful to the Government & its leadership for extending the benefit
of interest subsidy at 3% on working capital and Orthodox subsidy @ Rs10/- per kg for 5
years upto 2027-28 under Assam Tea Industrial Special Incentive Scheme 2020.
There is no material change and/or commitment affecting the financial
position of the Company occurred between the end of the financial year and the date of
this report.
The Jay Shree Chemicals & Fertilisers, Khardah
The production and sale of Single Super Phosphate increased during the
year. The quality parameters maintained by your Company was well appreciated by the
farmers of Bengal. The Government has raised the subsidy by Rs1264/- per tonne w.e.f
01.04.2024 and Rs2142/- per tonne w.e.f 01.04.2025.
The figures of production and despatches are as under:
|
Production (M.T.) |
Despatch (M.T.) |
|
2024 2025 |
2023 2024 |
2024 2025 |
2023-24 |
Single Super Phosphate |
79920 |
75584 |
78751 |
72314 |
Sugar Division
The sugar mill at Bihar produced 45428 tonnes of white sugar in the
year compared to 43628 tonnes last year. The sugarcane crushed was 546928 tonnes in the
year compared to 542493 tonnes last year. The recovery in sugar season 2024-25 was 9.91%
compared to 9.80% in the previous year. The cane development work is an ongoing process
and the Company took various initiatives to enthuse its farmers to sow better seeds and
cover more areas under plantation to increase the availability of sugarcane.
The sugar refinery project set-up by the Company in earlier years to
refine the sugar has improved the quality of sugar and it is the only mill in Bihar to
produce organic sugar without the use of sulphur. Throughout the year the sugar prices
kept fluctuating and the year ended with some improvement over previous year. The
Government of India announced export quota of 1 million tonnes sugar for sugar season
2024-25 and this helped in stabilization of prices.The Government of India permitted use
of B heavy molasses for production of ethanol in the month of August.
India 2024-25 sugar production is estimated to be pegged at around 28
mn tonnes compared to 31 mn tonnes last year. There was strong opening stock and the
availability of sugar was enough to cater to the domestic requirement. Next year
production is expected to be higher and there will be assured supply of sugar for domestic
consumers as well as ethanol blending program. Amid a drop in sugar production the
Government of India increased the Fair and Remunerative Price (FRP) of sugarcane for the
season 2025-26 by Rs15 per quintal to Rs355 per quintal for basic recovery rate of 10.25%.
The Government is yet to take a decision on the implementation of an
integrated pricing framework aimed at linking the Fair and Remunerative Price (FRP) of
sugarcane with the Minimum Selling Price (MSP) of sugar and the pricing of ethanol.
During the year the oil marketing companies secured 370 crore litre of
ethanol in which the sugar segment contributed around 49% and 51% was contributed by grain
based ethanol. The blending percentage target of 20% set by the Government has been
achieved to the extent of 18.36% which is increasing every passing day. The Government
should now revise long overdue prices of ethanol manufactured from B-heavy molasses
Export of Tea
Indian moved up to become 3rd largest Tea exporter globally in the year
2024 by surpassing Sri Lanka. India tea export soared to a 10 year high of 255 million kg
compared to 232 million kg last year i.e an increase of around 10%. Your Company increased
its export and exported tea worth Rs99.52 Crore as against Rs83.05 Crore last year i.e an
increase of around 19%. Your Company exports tea to more than 25 countries with
Germany,UAE,Russia,USA,UK and Japan as its major markets. Your Company Assam and
Darjeeling tea are considered one of the finest in the World. The marketing team is taking
several initiatives to boost up export by opening up new avenues and supplying different
varieties of quality teas.
SUBSIDIARY COMPANIES AND CONSOLIDATED FINANCIAL STATEMENTS
Bidhanagar Tea Co. Pvt Ltd and Basant Stays Pvt Ltd are wholly owned
subsidiaries of the Company. Birla Holdings Ltd, UAE the off-shore investment arm of the
Company, maintains status quo. The Financial Statements of these subsidiaries are kept for
inspection at the registered office of the company and those of respective subsidiary
companies. Any member interested to obtain copy of the same may write to the Company
separately. These documents shall be made available either in physical form or electronic
mode as per Green Initiative of the MCA. Pursuant to section 129(3) of the Companies Act,
2013 read with Rule 5 of the Companies (Accounts) Rules, 2014, a statement containing
salient features of the financial statements of Subsidiary Companies is given in Form
AOC-1 and forms an integral part of the Annual Report.
Birla Holdings Limited (BHL) is a wholly owned subsidiary of the
company in Dubai (UAE). Kijura Tea Company Limited,Uganda is wholly owned subsidiary of
BHL. Bondo Tea Estates Limited, Uganda is a step down subsidiary of BHL. Kijura Tea Estate
owned by these companies manufactured 12.35 lakh kg. of tea compared to 20.31 lakh kg.
last year. The average sale price realized was USD 0.74 per kg. against USD 0.78 per kg.
last year. The cost of production was maintained at USD 0.88 per Kg same as last year.
During the year the company recorded a loss of USD 220 thousand (INR 218.77 lakh) on sales
turnover of USD 1.01 million (INR 847.71 lakh) against last year loss of USD 308 thousand
(INR 257 lakh) on sales turnover of USD 2.40 million (INR 1961 lakh).
CORPORATE GOVERNANCE
As per Regulation 34(3) read with Schedule V of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015, a separate report on corporate
Governance is enclosed as a part of this Annual Report. A certificate from the Auditors of
the Company regarding compliance as per SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015 is annexed
to the Report on Corporate Governance.
The declaration by the Chairperson & Managing Director stating that
all the Board members and Senior Management personnel have affirmed their compliance with
the Company Code of Conduct for the year ended 31st March 2025 is forming part of this
Annual Report.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
As a part of its initiative under the "Corporate Social
Responsibility" (CSR) drive, the Company continues to carry out its activities in the
areas of education, sports and preventive health care. These projects are in accordance
with Section 135 of the Act and the Company CSR policy.
The composition of the members of CSR Committee remains the same
namely: Mrs.Jayashree Mohta, Chairperson & Managing Director alongwith Mr.H.V.Kanoria,
and Mr.Vikash Kandoi as members.
CSR Policy is placed on the website of the company "www.
jayshreetea.in". The Report on CSR activities as required under the Companies (CSR
Policy) Rules, 2014 along with the brief outline and contents of the CSR policy are
annexed and forms an integral part of this Report.
PROSPECTS
The domestic growth of tea is showing good early signs of positive
framework. However weather related disruptions and market volatility continue to pose
risk. There is a need for continuous reduction in cost and its regular monitoring as there
is still uncertainty in the industry. The tariff announcement by the US President and the
recent Indo-Pak tensions have triggered a broad based risk across the globe which might
affect export to an extent. The Government of India has initiated diplomatic discussion
with US and other Countries aiming to strike a balanced trade deal and minimize adverse
consequences. Your Company is targeting improvements in productivity, quality, and value
addition. Going ahead, the company will focus on enhancing the production of tea with
quality standard.
The outlook for sugar & fertilizer industry remains positive. The
sugar industry is poised for a positive outlook in the 202526 season, with projections
indicating a significant rebound in sugar production. This optimism is fueled by favorable
monsoon predictions, increased sugarcane planting, improved cane varieties and government
support through Fair and Remunerative Price (FRP) hikes. There a growing interest in SSP
production due to its cost-effectiveness and suitability for diverse crops. The
Nutrient-Based Subsidy (NBS) scheme encourages balanced fertilizer use, promoting the use
of P&K fertilizers alongside urea. The industry is undergoing a transformation due to
technological innovations, including the development of nano fertilizers and
micro-nutrients. SSP provides both phosphorus and sulfur, essential nutrients for plant
growth and crop yield. SSP production is generally less expensive than other complex
fertilizers, making it a more affordable option for farmers. Your Company is targeting
higher production with reduced cost and modernizing and/or develop
a new plant and produce SSP in granulated form also to improve its
market share.
Your Company is moderating on working capital outlay and emphasis on
optimum capital utilization to reduce cost of fund and enhance value in the hands of
shareholders.
DIRECTORS Rs RESPONSIBILITY STATEMENT
Your Directors would like to inform members that the audited accounts
containing the financial statements for the year 202425 are in conformity with the
requirements of the provisions of Section 134(3)(c) read with Section 134(5) and all other
applicable provision of the Companies Act, 2013 and they believe that the financial
statements reflect fairly the form and substance of transactions carried out during the
year and reasonably present the Company financial condition and results of operations. The
Statutory Auditors, Singhi & Co.,Chartered Accountants, Kolkata have audited these
financial statements.
Based on the same, your Directors further confirm that according to
their information:
i. in the preparation of the annual accounts, applicable accounting
standards have been followed and there are no material departures;
ii. the accounting policies selected by directors are consistently
followed and applied and judgements and estimates made are reasonable and prudent so as to
give a true and fair view of the state of affairs of the Company;
iii. proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of the Companies Act for
safeguarding the assets of the Company and for preventing and detecting fraud and other
irregularities.
iv. the annual accounts have been prepared on a going concern basis.
v. that there is adequate proper internal financial controls with
reference to the financial statement have been laid down for the company and such internal
financial controls are adequate and were operating effectively.
vi. that proper systems have been devised to ensure compliance with the
provisions of all applicable laws and such systems were adequate and operating
effectively.
BUSINESS RESPONSIBILITY REPORT (BR)
In terms of SEBI (LO DR) Regulations 2015, Top 1000 listed entities are
required to submit as part of their Annual Reports, Business Responsibility Reports,
describing the initiatives taken by them from an environmental, social and Governance
perspective. Your company does not fall under this category. However, BR Report on
environment, human resources and principle wise performance in short forms part of the
Management discussion and analysis report.
PARTICULARS OF EMPLOYEES
The Information as required under Section 197(12) of the Companies Act,
2013 read with Rules 5(2) and 5(3) of the Companies (Appointment and Remuneration of
Managerial
Personnel) Rules 2014 are given in the Annexure forming part of the
Report.
PUBLIC DEPOSITS
The company has not accepted or renewed any deposit during the year.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS
Particulars of loans, Guarantees and investment covered under the
provisions of Section 186 of the Companies Act, 2013 is given in the Standalone Financial
Statement forming part of the Annual Report.
DETAILS IN RESPECT OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH
REFERENCE TO THE FINANCIAL STATEMENTS
Your Company has a comprehensive internal control and mechanism, which
is constantly assessed and strengthened with new/revised standard operating procedures.
The Company internal control system is commensurate with its size, scale and complexities
of operations.
Business risks and mitigation plans are reviewed on timely intervals
and the internal audit processes include evaluation of all critical and high risk areas.
Critical functions are rigorously reviewed and the reports are shared with the Management
for timely corrective actions, if any. The main focus of internal audit is to review
business risks, test and review controls, assess business processes besides benchmarking
controls with best practices in the industry. During the year under review, there were no
elements of risk which in the opinion of the Board of Directors threaten the existence of
the Company. Risks do arise in the businesses of the Company which are mitigated in
accordance with the Risk Management Framework and Policy.
The company internal control systems are periodically tested and
supplemented by extensive program of internal audit by independent firms of Chartered
Accountants. Audits are finalized and conducted based on internal risk management.
Significant findings are brought to the notice of the Audit Committee of the Board and
corrective measures are recommended for implementation.
RISK MANAGEMENT
The company has laid down the procedures to inform to the Board about
the risk assessment and minimization procedures, which shall be responsible for framing,
implementing and monitoring the risk management plan of the company. Jay Shree Tea is
committed to manage its risk in a proactive manner. Though risks cannot be completely
eliminated, an effective risk management plan ensures that risks are reduced, avoided,
retained or shared.
DISCLOSURE OF PARTICULARS WITH REGARD TO CONSERVATION OF ENERGY,
TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO
Necessary information on conservation of energy, technology absorption,
foreign exchange earnings and outgo, required to be given pursuant to the provisions of
Section 134 of the Companies Act, 2013 read with the Companies (Accounts) Rules, 2014 is
presented in Annexure to this Report.
ENVIRONMENT AND SAFETY
The company is conscious of clean environment and safe operations. It
ensures safety of all concerned, compliance with environmental regulations and
preservation of natural resources.
As required by the Sexual Harassment of women at Workplace (Prevention,
Prohibition & Redressal) Act, 2013, the company has an internal policy on prevention
of sexual harassment at workplace with a mechanism of lodging complaints. During the year
under review, no complaints were reported to the Board.
STATUTORY AUDITORS AND AUDITORS Rs REPORT
In the Annual General Meeting held on 2nd August,2022 Singhi & Co.,
Chartered Accountants, were appointed as the Statutory Auditors of the Company for a
period of 5 years upto 31.03.2027 in terms of the provisions of the Companies Act, 2013 at
a remuneration mutually agreed upon by the Board of Directors and the Statutory Auditors
from time to time. No ratification of their appointment is required as per notification
dated May 7, 2018 issued by the Ministry of Corporate Affairs. The Auditors have confirmed
that they hold a valid certificate issued by the Peer Review Board of ICAI.
The Auditors Report form part of this Annual report. The Report does
not contain any qualifications.
COST AUDITORS
The Audit Committee in its meeting held on 19th May, 2025 has
recommended the reappointment of D. Sabyasachi & Co., the Cost Auditor to conduct the
cost audit of the company for the financial year 2025-26 in terms of section 148(3) of the
Companies Act, 2013. Accordingly the Board appointed the said firm of Cost Accountants to
carry out the cost audit for the year 2025-26 on the remuneration as recommended by the
Board to be fixed by members in the ensuing Annual General Meeting of the Company.
INTERNAL AUDIT
The Company continued to engage reputed firms of Chartered Accountants
as its internal auditors at its units and tea estates. Their scope of work and the plan
for audit is approved by the Audit Committee. The report submitted by them is regularly
reviewed and their findings are discussed with the process owners and suitable corrective
action taken on an ongoing basis to improve efficiency in operations.
SECRETARIAL AUDIT
Pursuant to the provisions of Section 204 of the Companies Act, 2013
and Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the
company has appointed MR & Associates, Practicing Company Secretaries to undertake the
Secretarial Audit of the company. The report of the Secretarial Audit is annexed herewith.
Regarding observations: (a) The company had a pending case under Section 58(A) of the
Companies Act, 1956 with the court relating to acceptance of a small amount during the
period of approval of form by the Board and its filing with ROC and the matter is
subjudice (b) Regarding delay of one day in filing of Related Party Disclosure, the
Company has taken note and will be cautious of timeline in future.
INSURANCE
Adequate insurance cover has been taken for properties of the company
including buildings, plant and machineries and stocks against fire, earthquake and other
risks as considered necessary.
DIRECTORS AND KEY MANAGERIAL PERSONNEL
As per the provisions of Section 152 of the Companies Act, 2013,
Mr.Vikash Kandoi (DIN:00589438) retires by rotation and being eligible offers himself for
reappointment. The Board recommends his reappointment.
The Board appointed Mr.Amarmeet Singh Nain (DIN:08030325) as an
Additional Director on 19th May, 2025 who shall hold office upto the date of the ensuing
Annual General Meeting. The Company has received a notice as per the provisions of Section
160(1) of the Companies Act, 2013 from a member proposing his appointment as a director.
Mr.Amarmeet Singh Nain, a Hons. graduate in Agriculture Food Technology, with 35 years of
experience in Tea Industry had joined the Company as Chief Operating Officer with effect
from 7th May,2024. The Board recommends to appoint him as an Executive Director designated
as "Director-Tea" for a period of 3 years. A resolution has been included in the
Agenda of the ensuing Annual General Meeting of the Company, which we recommend.
A brief profile of Directors proposed as above has been provided in the
Notice convening the AGM.
The Independent Directors have submitted the declaration of
independence as required under Section 149 of the Companies Act, 2013 and the Board is of
the opinion that they are independent within the meaning of the said requirement of the
Act.
There is no change in the Key Managerial Personnel during the year.
OTHER DISCLOSURES
EXTRACT OF ANNUAL RETURN
The details for the financial year ended 31st March, 2025 has been
provided in our website at www.jayshreetea.in.
NUMBER OF BOARD MEETINGS
The Board of Directors met five times during the year ended 31st March,
2025. The details of the Board meetings and the attendance of Directors are provided in
the Corporate Governance Report.
COMPOSITION OF COMMITTEE OF DIRECTORS
The Board has constituted the following Committees of Directors:
(a) Audit Committee,
(b) Nomination & Remuneration Committee,
(c) Stakeholder relationship Committee
The detailed composition of the above Committees along with number of
meetings and attendance at the meetings are given in Corporate Governance Report.
(d) Corporate Social Responsibility Committee
The detailed composition of the above Committee is given under the head
Corporate Social Responsibility (CSR).
ANNUAL GENERAL MEETING
Annual General Meeting of the Company is scheduled to be held on
Tuesday, the 12th August,2025.
WHISTLE BLOWER POLICY
The company has formulated Whistle Blower Policy in terms of Section
177(9) of the Companies Act, 2013 the details of which is being provided in the Corporate
Governance Report. The Whistle Blower Policy has also been posted on the website of the
Company.
RELATED PARTY TRANSACTIONS
All the related party transactions for the year under review are
entered on arm length basis and are in compliance with the Companies Act, 2013 and the
Listing Regulations. There are no materially significant related party transactions made
by the Company with Promoters, Directors or Key Managerial Personnel etc, which may have
potential conflict with the interest of the Company at large. All related party
transactions are presented to the Audit Committee and the Board for its approval.
The related party transactions policy as approved by the Board is
uploaded on the Company website "www.jayshreetea.in".
The details of the transactions with related party is given in the
Standalone Financial Statement forming part of the Annual Report.
EVALUATION OF BOARD PERFORMANCE
In compliance with the Companies Act, 2013 and SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015 , the performance evaluation of
the Board was carried out during the year under review. The Board of Directors expressed
their satisfaction with the evaluation process. More details on the same is given in the
Corporate Governance Report.
APPRECIATION
The Board wishes to place on record its appreciation of the efforts put
in by your company workers, staff and executives.
|
For and on behalf of the Board |
|
Jayashree Mohta |
|
(Chairperson and Managing Director) |
Kolkata, 19th May, 2025 |
(D!N:01034912) |