jay shree tea industries ltd Auditors report

To the members of the jenson & nicholson (india) limited

Report on the standalone financial statements

We have audited the accompanying standalone financial statements of jenson & nicholson (india) limited ("the company"), which comprise the balance sheet as at march 31, 2017 and the

Statement of profit and loss and cash flow statement for the accounting yearthen ended, and a summary of the significant policies and other explanatory information.

Managements responsibility for the standalone financial statements

The companys board of directors is responsible for the matters stated in section 134 (5) of the companies act, 2013 ("the act") with respect to the preparation and presentation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the

Company in accordance with the accounting principles generally accepted in india, including the accounting standards specified under section 133 of the act, read with rule7 of the companies (accounts) rules, 2014.this responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the act for safeguarding the assets of the company and for preventing and detecting frauds and other irregularities, selection and application of appropriate accounting policies, making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial control, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditors responsibility

Our responsibility is to express an opinion on these standalone financial statements based on our audit.

We have taken into account the provisions of the act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the act and the rules made there under.

We conducted our audit in accordance with the standards on auditing specified under section 143(10) of the act. Those

Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financialstatements.

The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the companys preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the companys directors, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is and appropriate to provide a basis for our audit opinion on the standalone financial statements.

Basis for qualified opinion

Attention is drawn to: i. The banks, financial institutions and other lenders have filed legal cases against the company for recovery of outstanding loans and interest thereon. No provision has been made in these accounts for additional interest, penal interest, liquidated damages etc. Amounting to inr 739.67 lacs as claimed by the above lenders at various legal forums, the same has been shown as contingent liability in notes to accounts attached to the said accounts. Company however had been providing interest on the above loans on a basis as considered appropriate by the management but up to 31st march,2006. However, the company has stopped providing interest on all loans from banks and financial institutions whether secured or unsecured w.e.f. 01.04.2006 on the ground that these loans would have been declared npa by them. Interest amounting to inr 219193.40 lacs up to the current year ended 31st march, 2017 has not been provided but the same has also been included in contingent liability. Ii. These financial statements have been prepared on a going concern basis. The company has incurred an operating profit during the year. The company is passing through a severe liquidity crisis and is unable to honour its commitment to lenders, preference shareholders, suppliers and employees. The bankers, financial institutions and other lenders have taken legal action for recovery of their dues. Several petitions for winding up of the company have been filed by the creditors and lenders. The company is contesting these petitions or is settling such petitions out of courts. The company is in the process of restructuring its business and also trying to identify alternative source of finance. In the absence of adequate financial support this basis would be invalid. Provision would then have to be made for any loss that might arise when the companys assets are realised.

Qualified opinion

Because of the significance of the matters described in the basis for qualified opinion paragraph, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion. Accordingly, we do not express an opinion on the financial statements.

In our opinion and to the best of our information and according to the explanations given to us except for the possible effects of the matters described in basis of qualified opinion, the aforesaid standalone financial statements give the information required by the act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in

India, of the state of affairs of the company as at march 31, 2017, and its profit and its cash flows for the year ended on the date:

Report on other legal and regulatory requirements

1. As required by the companies (auditors report) order, 2016 ("the order") issued by the central government of

India in terms of sub-section (11) of section 143 of the act, we give in the "annexure-i", a statement on the matters specified in paragraphs 3 and 4 of the order, to the extent applicable.

2. As required by section 143 (3) of the act, we report that: sufficient a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit; b. 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 c. The balance sheet, statement of profit and loss, and

Cash flow statement dealt with by this report are in agreement with the books of account; d. In our opinion, the aforesaid standalone financial statements comply with the accounting standards specified under section 133 of the act, read with rule

7 of the companies (accounts) rules, 2014. E. On the basis of the written representations received from the directors as on march 31, 2017 taken on record by the board of directors, none of the directors is disqualified as on march 31, 2017, from being appointed as a director in terms of section 164(2) of the act. F. With respect to the adequacy of the financial controls over financial reporting of the company and the operating effectiveness of such controls, refer to our separate report in "annexure-ii" and g. With respect to the other matters to be included in the auditors report in accordance with rule 11 of the companies (audit and auditors) rules, 2014, in our opinion and to the best of our information and according to the explanations given to us: i) the company has disclosed the impact of pending litigations on its financial position in its financial statements with the exception of the paragraph basis of qualified opinion. Ii) the company did not have any long-term contracts including derivative contracts; as such the question of commenting on any material foreseeable losses thereon does not arise. Iii) there has not been an occasion in case of the company during the year under report to transfer any sums to the investor education and protection fund. Iv) the company has provided requisite disclosures in the financial statements as to holdings as well as dealings in specified bank

Notes during the period from 8th november, 2016 to 30th december, 2016. Based on audit procedures and relying on the management representation we report that the disclosures are in accordance with books of account maintained by the company and as produced to us by the management.

		M. Mukerjee & co.
		Chartered accountants
		Frn: 303013e
		24, netaji subhas road
		Kolkata-700 001
		Sd/-
		Spandan sengupta
Place : patna		Partner
Date	: june 8th, 2017	Membership no: 135833