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Longview Tea Company Ltd.

BSE: 526568 Sector: Others
NSE: N.A. ISIN Code: INE696E01019
BSE 00:00 | 25 Sep 9.04 -0.47
(-4.94%)
OPEN

9.04

HIGH

9.04

LOW

9.04

NSE 05:30 | 01 Jan Longview Tea Company Ltd
OPEN 9.04
PREVIOUS CLOSE 9.51
VOLUME 5
52-Week high 10.60
52-Week low 5.10
P/E 7.35
Mkt Cap.(Rs cr) 3
Buy Price 9.04
Buy Qty 11.00
Sell Price 9.54
Sell Qty 4.00
OPEN 9.04
CLOSE 9.51
VOLUME 5
52-Week high 10.60
52-Week low 5.10
P/E 7.35
Mkt Cap.(Rs cr) 3
Buy Price 9.04
Buy Qty 11.00
Sell Price 9.54
Sell Qty 4.00

Longview Tea Company Ltd. (LONGVIEWTEA) - Auditors Report

Company auditors report

To The Member of

Longview Tea Company Limited

Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying Financial Statements of LONGVIEW TEA COMPANYLIMITED ("the Company") which comprise the Balance Sheet as at 31st March2019 the Statement of Profit and Loss including Other Comprehensive Income the Statementof Cash Flows and the Statement of Changes in Equity 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 accounting principles generally accepted in India of thestate of affairs of the Company as at 31st March 2019 its profit changes in equity andits 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 together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Act and the Rules thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and theCode of Ethics. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion on the financial statements.

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 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 and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated.

If we conclude based on the work we have performed on the other information obtainedprior to the date of this Auditor's Report that there is a material misstatement of thisother information we are required to report that fact. We have nothing to report in thisregard.

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 cash flows and changes in equity of the Company in accordance with the Ind As andother accounting principles generally accepted in India. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding the assets of the Company and for preventing and detecting frauds andother irregularities; 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 management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative 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 financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.

Obtain an understanding of internal financial controls relevant to the audit in orderto 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 system in place and the operatingeffectiveness of such controls.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

Conclude on the appropriateness of management's use of the going concern basis ofaccounting 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 financial statementsincluding the disclosures and whether the financial statements represent the underlyingtransactions 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 and on the basis of such checks of the books and records of the Company as weconsidered appropriate and according to the information and explanations given to us wegive in the Annexure A a statement on the matters specified in paragraphs 3 and 4 of theOrder 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 Cash Flows and the Statement of Changes in Equity 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 read with the Companies (IndianAccounting Standards) Rules 2015 as amended;

e) on the basis of the written representations received from the directors as on 31stMarch 2019 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2019 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 over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure B"; and

g) 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 25 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.

For V. SINGHI & ASSOCIATES
Chartered Accountants
Firm Registration No. 311017E
(V.K. SINGHI)
Place: Kolkata Partner
Date : 29th May 2019 Membership No. 050051

ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT

Referred to in paragraph-1 on other Legal and Regulatory Requirements of our Report ofeven date to the members of Longview Tea Company Limited on the Financial Statements forthe year ended 31st March 2019 we report that:

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. According to the information and explanations given to us and as per books andrecords examined the Company does not have any inventory during and at the end of theyear. Accordingly clause 3(ii) of the Order is not applicable

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 I86 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 thereunder 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 services rendered by the Company. Accordingly clause 3(vi) of theOrder is 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 Sales Tax Service tax Custom Duty Excise DutyGoods & Services Tax Value Added Tax Cess and other statutory dues as applicable toit and there are no undisputed dues outstanding as on 31st March 2019 for a period ofmore than six months from the date the same became payable.

b) According to the information and explanations given to us the details of disputeddues of sales tax income tax customs duty excise duty service tax and cess if anyas at 31st March 2019 are as follows

Name of the Statute Nature of dues Amount (##Rs##) 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 1978- 1979 1979- 1980 1980- 1981 No details were made available as to the forum where appeal is pending
308.10 1995-1996 Assistant Commissioner
1934.61 1998-1999 Assistant Commissioner
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 not paid or providedfor any managerial remuneration during the year. Accordingly clause 3(xi) of the Order isnot applicable.

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.

For V. SINGHI & ASSOCIATES
Chartered Accountants
Firm Registration No. 311017E
(V.K. SINGHI)
Place: Kolkata Partner
Date : 29th May 2019 Membership No. 050051

ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph-2(f) on Other Legal and Regulatory Requirements of our Reportof even date to the members of Longview Tea Company Limited on the Financial Statementsfor the year ended 31st March 2019)

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 over financial reporting of LongviewTea Company Limited ("the Company") as of 31st March 2019 in conjunction withour audit of the Ind AS financial statements of the Company for the year ended on thatdate.

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 over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by the ICAI anddeemed to be prescribed under section 143(10) of the Act to the extent applicable to anaudit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting were established and maintained and if suchcontrols operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to 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 systemover financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles including the Ind AS and thatreceipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company's assets that could have a material effect on the Standalonefinancial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2019 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For V. SINGHI & ASSOCIATES
Chartered Accountants
Firm Registration No. 311017E
(V.K. SINGHI)
Place: Kolkata Partner
Date : 29th May 2019 Membership No. 050051

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