Shareholders
We are pleased to present the 80th Annual Report of the Company
accompanied by the Audited Statement of accounts for the year ended 31st March 2026 :-
FINANCIAL RESULTS (Rs. in Lakhs)
|
31st March, 2026 |
31st March, 2025 |
| Revenue from operations |
91595 |
84,972 |
| Profit before finance costs, depreciation and
tax |
3,392 |
18,907 |
| Less : Finance costs |
3,258 |
3,915 |
| Profit before depreciation and tax |
134 |
14,992 |
| Less : Depreciation/Amortisation expenses |
2,164 |
2,179 |
| Profit/(Loss) before tax |
(2,030) |
12,813 |
| Deferred Tax Expense/Credit |
153 |
(84) |
Profit/(Loss) for the year |
(2183) |
12,897 |
EQUITY DIVIDEND
As there is inadequate profit, the Board has decided not to recommend
any dividend for the year. Last year the Company paid a dividend of 10% i.e 0.50 paise per
share (subject to TDS) on the occasion of celebrating 80th year of its existence.
SHARE CAPITAL
During the year ended 31st March, 2026 there is no change in the issued
and subscribed capital of the Company. The Company's paid up share capital remains at
'1443.87 lakh comprising of 2,88,77,488 equity shares of ' 5/- each as on 31st March,
2026. The authorized share capital of the Company is '6225 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,2026. REVIEW OF PERFORMANCE
All India Tea production increased to 1370 mn. kg against 1285 mn. kg
recorded last year. Global production declined marginally mainly because of lower
production in Kenya and Sri Lanka. The higher crop in India exerted downward pressure on
CTC tea prices and average realization remained lower. In contrast orthodox tea prices
remained firm, supported by robust demand from Iran and Middle East Countries.
India is the world's second largest tea producer and the industry gives
employment to more than one million workers. Large estates operate under regulatory
responsibilities with shouldering of social and other welfare obligations such as housing,
healthcare and education. Small growers operate outside the framework, which makes cost
differential between the organized and unorganized sector very high.
India commands respect from importing countries because of the quality
teas produced by the organized sector complying with Maximum Residues Levels (MRL)
requirements and champagne of tea being Darjeeling tea adhering to highest standard of
quality and aroma.
In India, despite global disruptions fertilizer availability remained
robust for the 2026 Kharif season due to active procurement by the Government as per
requirement. This sector was focused on procuring raw materials required for production of
Nitrogen (N), Phosphorus (P) and Potassium (K), which is vital for enhancing productivity
through balanced, sustainable nutrient management and growth of agriculture produce in the
Country.
India's sugar production in 2025-26 season is around 28 million tonnes
which is roughly 8% higher compared to the said period last year. The production in
Maharashtra rose by 25% to 9.92 million tonnes and Karnataka by 17% to 4.71 million
tonnes. However in Uttar Pradesh it declined by 2% to 8.92 million tonnes. India is
significantly increasing ethanol blending in petrol as part of its Ethanol Blended Petrol
(EBP) program. This EBP programme is likely to be advanced towards higher blend amid
rising crude oil prices and evolving geopolitical conditions. The Government is also
considering for faster roll-out of flex fuel vehicles (FFVS). There is installed capacity
of around 2000 Crore litres of ethanol (including grain based) and revision in EBP and
price is expected soon.
The major factors attributing to the operations of the company are:
i) Increase in Dooars and Darjeeling crop and decrease in crop of
Cachar and Terai
ii) Reduction in prices of common varieties of tea due to higher
production
iii) Optimization of labour efficiency, cut in energy cost and other
inputs
iv) The Single Superphosphate Plant at Khardah, West Bengal improved
its performance with cost rationalization & better quality. Further there was hike in
subsidy by Rs. 2142/- per M.T. w.e.f 1st April,2025
v) Improvement in cane varieties and increase in the prices of sugar Tea
Estates
All India output was up by 85 million kg. in 2025 at 1370 million kg.
compared to 1285 million kg. in 2024. Out of this small growers segment share is approx
50%. Due to no embargo on factory closure by Tea Board, North India December harvest
zoomed. There was record orthodox output from North India. Growers who embraced
manufacture of orthodox gained significantly.
The tea prices in India decreased by Rs.20 per kg because of increase
in production. The pro-active steps taken by the Tea Board to the issue of Maximum
Residues Level (MRL) content helped in increasing the export. The silver lining this year
was growing exports. Despite geo-political challenges, India's tea exports were healthy
and the rise in shipment was due to a high-risk appetite of all tea exporters.
Your company's own production was at 135 lakh kg compared to 139 lakh
kg last year. The bought leaf production was lower at 5.36 lakh kg from 7.37 lakh kg last
year. Average price for CTC tea declined by '30 per kg during the year due to a supply
demand gap. Your Company maintained very high quality standard and price realization of
your teas were down by '14/- per kg. Your Company took several initiatives to enhance soil
health, and created water body through rain water harvesting 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 @ '10/- 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 Fertilizer division of the Company manufacturing Single Super
Phosphate maintained its quality standard and improved its sales. The Company provided
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 continues to help the Company to improve its market share.
The figures of production and despatches are as under:
|
Production (M.T.) |
Despatch (M.T.) |
|
2025-2026 |
2024-2025 |
2025-26 |
2024-25 |
| Single Super Phosphate |
85119 |
79920 |
94462 |
78751 |
Sugar Division
India's sugar production rose by 8% to 28 mn tonnes compared to 25.64
mn tonnes in the year ago period. The Government had permitted exports of 1.5 mn tonnes
for the season. The Fair and Remunerative Price (FRP) of sugarcane set by the Central
Government was Rs.355/- per quintal. The State Advised Price (SAP) announced by the
Government of Bihar was revised to Rs.390/- per quintal with Rs.10/- subsidy from the
Government.
Sugarcane continues to be the main feed stock for production of ethanol
in the Country. At present the ethanol from B-heavy molasses is being sold at Rs. 60.73
per BL and C-heavy molasses is Rs.57.97 per BL. Geopolitical tension in Middle East region
may disrupt crude supply, supporting a stronger push for ethanol blending beyond 20%. This
should provide potential upside for the prices of ethanol in near future which augurs well
for the sugar industry.
Your sugar mill at Bihar produced 48922 tonnes of white sugar in the
year compared to 45428 tonnes last year. The sugarcane crushed was 537852 tonnes in the
year compared to 546928 tonnes last year. The recovery in sugar season 2025-26 was 10.70%
compared to 9.91% in the previous year. The cane development work has been carried out on
full fledged basis in our allocated area with autumn & spring plantation.
Demonstration farm with high quality seed was set-up to enthuse other farmers to cover
more area under planting for the availability of sugarcane in the coming season.
During the year Your Company has taken up a project for phase wise
increase in crushing capacity to 8000 TCD with modifications in refinery for further
improvement in quality and certain modifications in distillery plant.
Export of Tea
India's tea export improved both in volume and realization terms in
2025 reaching a record volume of about 280 million kgs, a successive increase of 10% over
previous year. The boost in export was due to strong demand from key markets such as Iran,
Iraq, USA, UAE and China. Your Company increased its export to '116.63 Crore as against
'99.52 Crore last year i.e an increase of around 17%. Your Company exports tea to more
than 25 countries with Germany,UAE,Russia,USA,UK and Japan as its major markets. Your
Company's Assam and Darjeeling tea are considered one of the finest in the World.
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 offshore 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 18.05 lakh kg. of tea against 12.35 lakh kg.
last year. The average sale price realized was USD 0.90 per kg. against USD 0.74 per kg.
last year. The cost of production was at USD 0.99 per kg against USD 0.88 per Kg last
year. During the year the company recorded a loss of USD 235 thousand (INR 223 lakh) on
sales turnover of USD 1.56 million (INR 1418 lakh) against last year loss of USD 220
thousand (INR 219 lakh) on sales turnover of USD 1.01 million (INR 842 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's Code of Conduct for the year ended 31st March 2026 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's 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 tea industry is assailed by multiple factors such as diminishing
crop and the perceptible effect of climate change on tea production by way of severe
infestations of pests, leading to reliance on chemicals, the option for which are limited
by FSSAI specifications. Your Company has taken several steps through the development of
hardy, high yielding tea clones and seeds with better tolerance to abiotic stresses,
refinement of climate smart agronomics practices, proper pest management and control and
other ways. The Centre is very much aware of the problems the tea industry is facing. A
comprehensive package is likely to be announced shortly which will not only focus on
rejuvenation of the industry but also stress on producing quality tea, so that the
industry can take advantage of export to European Union.
Your fertilizer plant at Kolkata is upgrading and installing
granulation plant to manufacture Granular Single Super Phosphate (GSSP) and spread its
market to neighboring states like Bihar, Assam which will increase our production by 30%.
Your sugar mill is gradually expanding its capacity to 8000 TCD with
increase in ethanol capacity and production which will bring improved profitability to the
Company.
So looking to all these factors and barring unforeseen circumstances we
can take an optimistic view about the Company.
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.
DIRECTORS' RESPONSIBILITY STATEMENT
Your Directors would like to inform members that the audited accounts
containing the financial statements for the year 2025-26 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's 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 (LODR) 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's 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's 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' 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, 2026 has
recommended the reappointment of D. Sabyasachi & Co., the Cost Auditor to conduct the
cost audit of the company for the financial year 2026-27 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 2026-27 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.
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,
Mrs.Jayashree Mohta (DIN:01034912) retires by rotation and being eligible offers herself
for re-appointment. The Board recommends her re-appointment.
Based on the recommendation of the Nomination and Remuneration
Committee Mr.Vikram Swarup (DIN:00163543), a well known industrialist of repute joined the
Board on 9th February,2021 for a period of 5 years. The proposal relating to his
re-appointment has been included in the Notice convening the AGM for the consideration of
the Members, which the Board recommends.
The term of Mr.Vikash Kandoi as Executive Director is due to expire on
31.03.2027. Mr.Kandoi has been involved in day to day operations of the Company. Based on
the recommendation of the Nomination and Remuneration Committee the Board has proposed to
reappoint him as a Whole time Director designated as an Executive Director for a further
period of 3 years w.e.f 01.04.2027. The proposal relating to his reappointment has been
included in the Notice convening the AGM for the consideration of the Members, which the
Board recommends.
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, 2026 has been
provided in our website at www.jayshreetea.in.
NUMBER OF BOARD MEETINGS
The Board of Directors met four times during the year ended 31st March,
2026. 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
Thursday, the 13th August, 2026.
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's 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's 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'S
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's workers, staff and executives.
|
For and on behalf of the Board |
|
Jayashree Mohta |
|
(Chairperson and Managing Director) |
| Kolkata, 19th May, 2026 |
(DIN:01034912) |
