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Longview Tea Company Ltd.

BSE: 526568 Sector: Others
NSE: N.A. ISIN Code: INE696E01019
BSE 12:49 | 26 May 29.90 0.45
(1.53%)
OPEN

30.05

HIGH

30.05

LOW

28.00

NSE 05:30 | 01 Jan Longview Tea Company Ltd
OPEN 30.05
PREVIOUS CLOSE 29.45
VOLUME 7
52-Week high 44.40
52-Week low 11.60
P/E 2.40
Mkt Cap.(Rs cr) 9
Buy Price 28.05
Buy Qty 1.00
Sell Price 29.90
Sell Qty 702.00
OPEN 30.05
CLOSE 29.45
VOLUME 7
52-Week high 44.40
52-Week low 11.60
P/E 2.40
Mkt Cap.(Rs cr) 9
Buy Price 28.05
Buy Qty 1.00
Sell Price 29.90
Sell Qty 702.00

Longview Tea Company Ltd. (LONGVIEWTEA) - Auditors Report

Company auditors report

To The Members of

Longview Tea Company Limited

Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying Financial Statements of LONGVIEW TEA COMPANY LIMITED("the Company") which comprise the Balance Sheet as at 31st March 2021 theStatement of Profit and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and the Statement of Cash Flows for the year then ended and notes tothe financial statements including a summary of the significant accounting policies andother explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by theCompanies Act 2013 (the "Act") in the manner so required and give a true andfair view in conformity with Indian Accounting Standards specified under Section 133 ofthe Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended andother accounting principles generally accepted in India of the state of affairs of theCompany as at 31st March 2021 its loss total Comprehensive Income changes in equityand its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the financial statements in accordance with the Standards onAuditing (SAs) specified under section 143(10) of the Act. Our responsibilities underthose Standards are further described in the Auditor's Responsibilities for the Audit ofthe financial statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia ("ICAI") together with the ethical requirements that are relevant to ouraudit of the financial statements under the provisions of the Act and the Rules hereunderand we have fulfilled our other ethical responsibilities in accordance with theserequirements and the ICAI's Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion on the financialstatements.

Emphasis of Matter

We draw your attention to the following matter in the notes to the FinancialStatements:

• Note no. 36 of the Financial Statements states that there is no impact ofCOVID-19 a global pandemic on the operations and financial matters of the Company.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. This matterwas addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on this matter. Wehave determined the matter described below to be the key audit matter to be communicatedin our report.

Key Audit Matters Response To Key Audit Matter
There are contingent liabilities not acknowledged as debt which are disputed and/or pending in appeals and the Company does not expect the outcome of these proceedings to have a material impact on its financial position. We have involved our internal experts to review the liability and likelihood of payment upon final adjudication.

Information Other than the Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report and BusinessResponsibility Report but does not include the financial statements and our Auditor'sReport thereon.

Our opinion on the financial statements does not cover the other information and we donot express any form of assurance or conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information identified above when it becomes available and in doing soconsider whether the other information is materially inconsistent with the financialstatements or our knowledge obtained in the audit or otherwise appears to be materiallymisstated.

When we read the other information which we will obtain after the date of theauditor's report and if we conclude that there is a material misstatement therein we arerequired to communicate the matter to those charged with governance.

Responsibilities of Management and Those Charged With Governance for the StandaloneFinancial 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 Financial Statements that givea true and fair view of the financial position financial performance total comprehensiveincome changes in equity and cash flows and of the Company in accordance with the IndianAccounting Standards specified under Section 133 of the Act and other accountingprinciples generally accepted in India. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

In preparing the financial statements the Board of Directors 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.

The Board of Directors is also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an Auditor's Report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these 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 financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

• obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls with reference to Financial Statements inplace and the 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 financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

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 financial statements of thecurrent period and are therefore the key audit matter. We describe this matter in ourAuditor's Report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest 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 ofthe Act we give in the Annexure A a statement on the matters specified in paragraphs 3and 4 of the Order to the extent applicable.

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

a) we have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit;

b) in our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books;

c) the Balance Sheet the Statement of Profit and Loss (including Other ComprehensiveIncome) the Statement of Changes in Equity and the Statement of Cash Flows dealt with bythis Report are in agreement with the books of account;

d) in our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act;

e) on the basis of the written representations received from the directors as on 31stMarch 2021 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2021 from being appointed as a director in terms of Section164 (2) of the Act;

f) with respect to the adequacy of the internal financial controls with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate report in "Annexure B"; and

g) with respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended the Companyhas complied with the provisions of Section 197 read with Schedule V of the Act relatingto managerial remuneration.

h) 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 in our opinionand 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 financialposition in its financial statements. (Refer Note 26 to the financial statements)

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

iii. there were no amounts due which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT

Annexure referred to in Independent Auditor's Report to the members of Longview TeaCompany Limited on the Financial Statements for the year ended 31st March 2021 we reportthat:

i. a) The Company has generally maintained proper records showing full particularsincluding quantitative details and situation of its Fixed Assets except in case offurniture and fixture

b) As explained to us Fixed Assets have been physically verified by the management atregular intervals which in our opinion is reasonable having regard to the size of thecompany and the nature of its assets. As informed to us no material discrepancies werenoticed on such verification. In our opinion the frequency of verification is reasonable.

c) According to the information and explanations given to us the Company does not holdany immovable properties. Accordingly clause 3(i)(c) of the Order is not applicable.

ii. The Company is engaged in trading of the tea ferrous and non-ferrous metals. Stockof tea ferrous and nonferrous metals is physically verified by the management. TheCompany does not have any inventory at the year end. Keeping in view the nature ofoperations in our opinion the procedure for physical verification of inventory followedby the management are reasonable and adequate in relation to the size of the Company andnature of its business.

iii. According to the information and explanations given to us the Company has notgranted any loan secured or unsecured to companies firms Limited LiabilityPartnerships or other parties covered in the register maintained under Section 189 of theAct. Accordingly clause 3(iii) (a) (b) and (c) of the Order are not applicable.

iv. According to the information and explanations given to us the Company has compliedwith the provisions of sections 185 and 186 of the Act with respect to the loans givenand investments made.

v. According to the information and explanations given to us the Company has notaccepted any deposits from the public within the meaning of sections 73 to 76 of the Actread with the Rules framed there under to the extent notified. Accordingly clause 3(v) ofthe Order is not applicable.

vi. According to the information and explanations given to us the Central Governmenthas not prescribed the maintenance of cost records under Sub section 1 of Section 148 ofthe Act for any of the operations of the Company. Accordingly clause 3(vi) of the Orderis not applicable.

vii. a) According to the information and explanations given to us during the year theCompany has generally been regular in depositing with appropriate authorities undisputedstatutory dues including Provident Fund Investor Education and Protection FundEmployees' State Insurance Income Tax Goods & Services Tax Cess and other statutorydues as applicable to it and there are no undisputed dues outstanding as on 31st March2021 for a period of more than six months from the date the same became payable.

b) According to the information and explanations given to us the details of disputedstatutory dues that have not been deposited on account of matters pending beforeappropriate authorities are as under:-

Name of the Statute Nature of dues Amount (in ?'000) Period to which the amount relates Forum where dispute is pending
The Central Excise Act Excise Duty 792.69 1999-2000 High Court Calcutta
Sales Tax Act Sales Tax 165.66 1977-1978 No details were made available as to the forum where appeal is pending
1978-1979
1979-1980
1980-1981
Sales Tax Act Sales Tax 308.10 1995-1996 Assistant Commissioner
Sales Tax Act Sales Tax 1934.61 1998-1999 Assistant Commissioner
Sales Tax Act Sales Tax 146.09 2000-2001 Tribunal

viii. According to the information and explanations given to us and based on ourexamination of the books and records we report that the Company has neither taken anyloans from financial institutions or banks or Government nor issued any debentures.Accordingly clause 3 (viii) of the order is not applicable.

ix. According to the information and explanations given to us the Company has notraised any money by way of initial public offer or further public offer (including debtinstruments) nor obtained any Term Loan during the year. Accordingly clause 3 (ix) of theOrder is not applicable.

x. According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit nor we have been informed of any such case by the management.

xi. According to the information and explanations given to us and based on ourexamination of the books and records we report that the Company has paid or provided formanagerial remuneration in accordance with the requisite approvals mandated by theprovisions of Section 197 read with Schedule V of the Act.

xii. According to the information and explanations given to us the Company is not aNidhi Company. Accordingly clause 3 (xii) of the Order is not applicable.

xiii. According to the information and explanations given to us and based on ourexamination of the books and records we report that all transactions with the relatedparties are in compliance with sections 177 and 188 of the Act where applicable anddetails of such transactions have been disclosed in the Financial Statements as requiredby the applicable Indian Accounting Standards.

xiv. According to the information and explanations given to us and based on ourexamination of the books and records we report that the Company has not made anypreferential allotment/private placement of shares or fully or partly convertibledebentures during the year. Accordingly clause 3(xiv) of the Order is not applicable.

xv. According to the information and explanations given to us the Company has notentered into any non-cash transactions with directors or persons connected with him.Accordingly clause 3(xv) of the Order is not applicable.

xvi. According to the information and explanations given to us the company is notrequired to be registered under Section 45-IA of the Reserve Bank of India Act 1934.(Also refer Note No. 35 of financial statements).

ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT

Annexure referred to in Independent Auditor's Report of even date to the members ofLongview Tea Company Limited on the Financial Statements for the year ended 31st March2021.

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 financial statementsof Longview Tea Company Limited ("the Company") as of 31stMarch 2021 inconjunction with our audit of the Ind AS financial statements of the Company for the yearended 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'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to financial statements based on our audit. We conducted our auditin accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") and the Standards on Auditing issuedby the ICAI and deemed to be prescribed under section 143(10) of the Act to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls with reference to financial statements and both issued by theInstitute of Chartered Accountants of India. Those Standards and the Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls with reference tofinancial statements were established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls with reference to financial statements and their operatingeffectiveness. Our audit of internal financial controls with reference to financialstatements included obtaining an understanding of internal financial controls withreference to financial statements assessing the risk that a material weakness exists andtesting and evaluating the design and operating effectiveness of internal control based onthe assessed risk. The procedures selected depend on the auditor's judgment including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls withreference to financial statements.

Meaning of Internal Financial Controls with reference to Financial Statements

A company's internal financial control with reference to financial statements is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control withreference to financial statements includes those policies and procedures that (1) pertainto the maintenance of records that in reasonable detail accurately and fairly reflectthe transactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls with reference to FinancialStatements

Because of the inherent limitations of internal financial controls with reference tofinancial statements including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls withreference to financial statements to future periods are subject to the risk that theinternal financial control with reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system with reference to financial statements and such internalfinancial controls with reference to financial statements were operating effectively as at31st March 2021 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

For V. SINGHI & ASSOCIATES Chartered Accountants
Firm Registration No. 311017E
Place: Kolkata (V.K. SINGHI) Partner
Date : 25th June 2021 Membership No. 050051 UDIN: 21050051AAAAGI8547

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