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Joonktolle Tea & Industries Ltd.

BSE: 538092 Sector: Agri and agri inputs
NSE: N.A. ISIN Code: INE574G01013
BSE 00:00 | 24 Apr Joonktolle Tea & Industries Ltd
NSE 05:30 | 01 Jan Joonktolle Tea & Industries Ltd
OPEN 88.00
PREVIOUS CLOSE 84.00
VOLUME 94
52-Week high 142.50
52-Week low 68.25
P/E
Mkt Cap.(Rs cr) 36
Buy Price 80.05
Buy Qty 50.00
Sell Price 87.00
Sell Qty 4.00
OPEN 88.00
CLOSE 84.00
VOLUME 94
52-Week high 142.50
52-Week low 68.25
P/E
Mkt Cap.(Rs cr) 36
Buy Price 80.05
Buy Qty 50.00
Sell Price 87.00
Sell Qty 4.00

Joonktolle Tea & Industries Ltd. (JOONKTOLLETEA) - Auditors Report


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Company auditors report

To the Members of

JOONKTOLLEE TEA & INDUSTRIES LIMITED

Report on the Audit of the Standalone Financial Statements Opinion

We have audited the accompanying Standalone Financial Statements ofJoonktollee Tea & Industries Limited ("the Company") which comprise theStandalone Balance Sheet as at March 31st 2019 the Standalone Statement of Profit andLoss (including Other Comprehensive Income) the Standalone Statement of Changes in Equityand the Standalone Statement of Cash Flow Statement for the year then ended and a summaryof significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid Standalone Financial Statements give theinformation required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended ("Ind AS") and other accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2019and its loss total comprehensive income the changes in equity and its cash flows for theyear ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements inaccordance with the Standards on Auditing specified under section 143(10) of the Act(SAs). Our responsibilities under those Standards are further described in theAuditor's Responsibility for the Audit of the Standalone Financial Statements sectionof our report. We are independent of the Company in accordance with the Code of Ethicsissued by the Institute of Chartered Accountants of India (ICAI) together with the ethicalrequirements that are relevant to our audit of the standalone financial statements underthe provisions of the Act and the Rules made there under and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence obtained by us is sufficient and appropriate toprovide a basis for our audit opinion on the Standalone Financial Statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the Standalone Financial Statements of thecurrent period. These matters were addressed in the context of our audit of the Standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. We have determined the matters described below as Keyaudit matters and for each matter our description of how our audit addressed the matteris provided in that context.

Key audit matters How our audit addressed the key audit matter
Investment in Associate and Subsidiaries
The company carries its investments in two subsidiaries and Our audit procedures comprised amongst others: a associate at cost adjusted for impairment if any. At 31st March 2019 total investments amounted to ` 471845078. The amount is significant to the financial statements. Moreover the testing of impairment exercise involves the use of estimates and judgements. The identification of impairment events and the determination of an impairment charge also require the application of significant judgement by management in particular with respect to the timing quantity and estimation of future cash flows. In view of the significance of the investments and the above we consider investment valuation/impairment to be a significant key audit matter. • We have assessed the valuation methodology used by management and the requirements in IndAS and tested the inputs used
• Our audit response also consisted of analysing the possible indications of impairment and discussed them with management.
• We have discussed the forecasted results of the investments with management and also reviewed the substantiation of the forecasts based on historical information.
• We have reviewed the market value of assets provided by the management based upon prevalent market conditions and evidences of the market value of the assets.

 

Key audit matters How our audit addressed the key audit matter
Valuation of Biological Assets
The company's biological assets include standing timber With reference to this key audit matter we have:
unharvested green leaf etc. which is measured at fair value less costs to sell. Evaluated the design and implementation of Company's controls around the valuation of biological assets and agricultural produce.
The principal assumptions and estimates in the determination of the fair value include assumptions about the yields or quantity of biological asset market prices and the stage of transformation. • Assessing the plucking yields and basis of quantification of biological asset and analyse the stage of transformation considered for the fair valuation.
The determination of these assumptions and estimates require careful evaluation by management and could lead to material impact on the financial position and the results of the Company. • Assessing the basis reasonableness and accuracy of adjustments made to market prices.
Refer note no 14 to the financial statement. • Testing the consistency of application of the fair value approaches and models over the years.
Contingent Liabilities Our audit procedures included among others:
The Company is exposed to different laws regulations and interpretations thereof. The company is also subject to number of significant claims and litigations. The assessment of the likelihood and quantum of any liability in respect of these matters can be judgmental due to the uncertainty inherent in their nature. I. Understanding and assessing the internal control environment relating to the identification recognition and measurement of provisions for disputes potential claims and litigation and contingent liabilities;
At March 31 2019 the Company has disclosed significant pending legal cases with respect to Income tax under appeal II. Analyzed significant changes/update from previous periods and obtained a detailed understanding of such items. Assessed recent judgments passed by the court authorities affecting such change;
Seigniorage Charges lease rent and other material contingent liabilities [Refer Note 40.1 to the financial statements]. III. Discussed the status of significant known actual and potential litigations with the management & noted that information placed before the board for such cases and IV. Assessment of the management's assumptions and estimates related to the recognized provisions for disputes and disclosures of contingent liabilities in the financial statements.
We considered this to be a key audit matter since the accounting and disclosure of claims and litigations is complex and judgmental and the amounts involved are or can be material to the financial statements.

Information other than the Standalone Financial Statements andAuditor's Report thereon

The Company's Board of Directors is responsible for thepreparation of the other information. The other information comprises the informationincluded in the Board's Report including annexure to the Board's Report &other Shareholder's Information but does not include the Consolidated FinancialStatements Standalone Financial Statements and our auditor's report thereon. Ouropinion on the Standalone Financial Statements does not cover the other information and wedo not express any form of assurance conclusion thereon. In connection with our audit ofthe Standalone Financial Statements our responsibility is to read the other informationand in doing so consider whether the other information is materially inconsistent withthe Standalone Financial Statements or our knowledge obtained in the audit or otherwiseappears to be materially misstated. If based on the work we have performed we concludethat there is a material misstatement of this other information; we are required to reportthat fact. We have nothing to report in this regard.

Management's Responsibility for the Standalone FinancialStatements

The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Act with respect to the preparation of these StandaloneFinancial Statements that give a true and fair view of the financial position financialperformance including other comprehensive income cash flows and changes in equity of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (Ind AS) specified under section 133 of the Actread with

(Indian Accounting Standards) Rules 2015 as amended. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; andthe design implementation and maintenance of adequate internal financial controls thatwere operating 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 isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing theCompany's financial reporting process.

Auditor's Responsibilities for the Audit of the StandaloneFinancial Statements

Our objectives are to obtain reasonable assurance about whether theStandalone Financial Statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these Standalone Financial Statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of theStandalone Financial Statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

• Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Companies Act 2013 we are also responsible for expressing ouropinion on whether the Company has adequate internal financial controls system in placeand the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor'sreport to the related disclosures in the Standalone Financial Statements or if suchdisclosures are inadequate to modify our opinion. Refer to paragraph "materialuncertainty related to going concern" above in respect to our reporting in respect togoing concern appropriateness. Our conclusions are based on the audit evidence obtained upto the date of our auditor's report. However future events or conditions may causethe Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of theStandalone Financial Statements including the disclosures and whether the StandaloneFinancial Statements represent the underlying transactions and events in a manner thatachieves fair presentation.

Materiality is the magnitude of misstatements in the StandaloneFinancial Statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the Standalone FinancialStatements may be influenced. We consider quantitative materiality and qualitative factorsin (i) planning the scope of our audit work and in evaluating the results of our work; and(ii) to evaluate the effect of any identified misstatements in the Standalone FinancialStatements. We communicate with those charged with governance regarding among othermatters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the StandaloneFinancial Statements for the financial year ended March 31 2019 and are therefore the keyaudit matters. We describe these matters in our auditor's report unless law orregulation precludes public disclosure about the matter or when in extremely rarecircumstances we determine that a matter should not be communicated in our report becausethe adverse consequences of doing so would reasonably be expected to outweigh the publicinterest benefits of such communication.

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 sub-section(11) of section 143 of the Act we give in the "Annexure A" a statement on thematters specified in paragraphs 3 and 4 of the Order.

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

(a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit;

(b) In our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination of those books;

(c) The Balance Sheet the Statement of Profit and Loss including theStatement of Other Comprehensive Income the Cash Flow Statement and Statement of Changesin Equity dealt with by this Report are in agreement with the books of account;

(d) In our opinion the aforesaid Standalone Financial Statementscomply with the Accounting Standards specified under Section 133 of the Act read withCompanies (Indian Accounting Standards) Rules 2015 as amended from time to time; (e) Onthe basis of the written representations received from the directors as on March 31 2019taken on record by the Board of Directors none of the directors is disqualified as onMarch 31 2019 from being appointed as a director in terms of Section 164 (2) of the Act;(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company with reference to these Standalone Financial Statements and theoperating effectiveness of such controls refer to our separate Report in "AnnexureB" to this report;

(g) In our opinion and to the best of our information and according tothe explanation given to us the remuneration paid by the company to its directors duringthe year is in accordance with the provisions of section 197 of the Act.

(h) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 as amended in our opinion and to the best of our information and according tothe explanations given to us:

i. The Company has disclosed the impact of pending litigations on itsfinancial position in its Standalone Financial Statements – Refer Note 40.1 to theStandalone Financial Statements;

ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses;

iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company during the year.

For JKVS & CO

(Formerly known as Jitendra K. Agarwal & Associates)

Chartered Accountants

Firm's Registration No. 318086E
(Utsav Saraf)
Place: Kolkata

Partner

Date: 15th May 2019 Membership No. 306932