Accounting Policies of Longview Tea Company Ltd. Company

Mar 31, 2024

B. Material Accounting Policies

This note provides a list of the material accounting policies adopted in the preparation of these financial
statements. These policies have been consistently applied to all the years presented, unless otherwise
stated.

1.1 Basis of Preparation and Statement of Compliance

1.1.1 Compliance with Ind AS

These financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS)
prescribed under Section 133 of the Companies Act,2013 (''the Act") read with the Companies (Indian
Accounting Standards) Rules, 2015 and other relevant provisions of the Act and Rules framed there under,
as amended from time to time.

These Financial Statements are prepared in Indian Rupees (INR) which is also the Company''s presentation
and functional currency and all the values are rounded to the nearest thousands (up to two decimals)
except when otherwise indicated.

The company has prepared the financial statements on the basis that it will continue to operate as a going
concern.

1.1.2 Classification of Current and Non-Current

All assets and liabilities have been classified as current or non-current as per the Company''s normal
operating cycle and other criteria set out in the IND AS 1 - Presentation of Financial Statements and
Schedule III to the Act. Based on the nature of products, assets held primarily for the purpose of trading
and the time between the acquisition of assets for processing and their realization in cash and cash
equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current/
non-current classification of assets and liabilities.

1.1.3 Historical Cost Convention

These financial statements have been prepared in accordance with the generally accepted accounting
principles in India under the historical cost convention, except for certain financial assets and liabilities
that are measured at fair value through Other Comprehensive Income and Statement of Profit and Loss
and at amortized cost.

1.2 Revenue Recognition

Revenue is recognized when control of goods is transferred to the customer at an amount that reflects
the consideration to which the company expects to be entitled in exchange for those goods. Revenue

is measured based on the consideration specified in a contract with a customer and excludes amount
collected on behalf of third parties.

Revenue from the sale of products is recognized at a point in time, generally upon delivery of products. At
present the Company has no existing contracts for which revenue over time is required to be recognized
by the Company.

Goods and Services Tax (GST) is not received by the Company on its own account. Rather it is tax collected
on the value added to the product by the seller on behalf of the Government. Accordingly, it is excluded
from revenue.

1.3 Accounting for Taxes on Income

The income tax expense or credit for the period is the tax payable on the current period''s taxable income
based on the applicable income tax rate adjusted by changes in deferred tax assets and liabilities
attributable to temporary differences and to unused tax losses.

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted
at the end of the reporting period.

Deferred Income Tax is provided in full, using the liability method, on temporary differences arising
between the tax bases of assets and liabilities and their carrying amounts in the financial statements at
the reporting date. Deferred income tax is determined using tax rates (and laws) that have been enacted
or substantially enacted by the end of the reporting period and are expected to apply when the related
deferred income tax asset is realised or the deferred income tax liability is settled.

Deferred Tax Liabilities are recognised for all temporary taxable differences. Deferred Tax Assets are
recognised for all deductible temporary differences and unused tax losses and unused tax credits only if it
is probable that future taxable amounts will be available to utilise those temporary differences and losses.

Deferred Tax Assets and Liabilities are offset when there is a legally enforceable right to offset current tax
assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax
assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends
either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items
recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in
other comprehensive income or directly in equity, respectively.

1.4 Cash and Cash Equivalents

Cash and Cash Equivalents in the Balance Sheet comprises cash at banks and on hand and short-term
deposits with an original maturity of three months or less, which are subject to an insignificant risk of
changes in value.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term
deposits, net of outstanding bank overdrafts as they are considered an integral part of the Company''s cash
management.

1.5 Trade Receivables

Trade Receivables are recognised initially at fair value and subsequently measured at expected credit loss
method.

1.6 Inventories

Inventories are valued at the lower of cost and net realizable value.

Costs of Inventories also include all other costs incurred in bringing the inventories to their present
location and conditions.

Net realizable value is the estimated selling price in the ordinary course of business less estimated costs
necessary to make the sale.

1.7 Investments and other Financial Assets

1.7.1 Classification

The Company classifies its financial assets in the following measurement categories:

• those to be measured subsequently at fair value (either through other comprehensive income
or Profit and loss), and

• those measured at amortised cost

The classification depends on the Company''s business model for managing the financial assets and
the contractual terms of cash flows.

1.7.2 Measurement

At initial recognition, the Company measures a financial asset at its fair value. Transaction costs of financial
assets carried at fair value through profit or loss are expensed in profit or loss.

Financial assets with embedded derivatives are considered in their entirety when determining whether
their cash flows are solely payment of principal and interest.

Debt Instruments -

Subsequent measurement of debt instruments depend on the Company''s business model for managing
the asset and the cash flow characteristics of the asset. The Company classifies its debt instruments
into the following categories:

• Amortised Cost: Assets that are held for collection of contractual cash flows where those cash flows
represent solely payments of principal and interest are measured at amortised cost

• Fair Value through Other Comprehensive Income (FVOCI): Assets that are held for collections
of contractual cash flows and for selling the financial assets, where the assets'' cash flows represent
solely payments of principal and interest, are measured at fair value through other comprehensive
income (FVOCI). Interest income from these financial assets is included in other income using the
effective interest rate method.

• Fair Value through Profit or Loss: Assets that do not meet the criteria for amortised cost or FVOCI
are measured at fair value through profit or loss. Interest income from these financial assets is
included in other income.

Equity Instruments -

The Company measures all equity investments at fair value through othercomprehensive income.

1.7.3 Impairment of Financial Assets

The Company assesses at each reporting date, a financial asset (or a group of financial assets) held at amortised
cost and financial assets that are measured at fair value through other comprehensive income for impairment
based on evidence or information that is available without undue cost or effort. Expected credit losses are
assessed and loss allowances recognised if the credit quality of the financial asset has deteriorated significantly
since initial recognition.

1.7.4 De-recognition of Financial Assets

A financial asset is derecognised only when

• The right to receive cash flows from the asset has expired, or

• The Company has transferred the rights to receive cash flows from the financial asset, or

• Retains the contractual rights to receive the cash flows of the financial asset, but assumes a
contractual obligation to pay the cash flows to one or more recipients.

Where the entity has transferred substantially all risks and rewards of ownership of the financial asset
or where the entity has neither transferred a financial asset nor retains substantially all risks and
rewards of ownership of the financial asset, the financial asset is derecognised if the Company has
not retained control of the financial asset.

1.7.5 Reclassification of Financial assets

The Company determines classification of financial assets and liabilities on initial recognition. After initial
recognition, no reclassification of financial assets like equity instruments and financial liabilities is made.
For financial assets which are debt instruments, a reclassification is made only if there is a change in the
business model for managing those assets. Changes to the business model are expected to be infrequent.
The Company''s senior management determines change in the business model as a result of external or
internal changes which are significant to the Company''s operations. Such changes are evident to external
parties. A change in the business model occurs when the Company either begins or ceases to perform
an activity that is significant to its operations. If the Company reclassifies financial assets, it applies the
reclassification prospectively from the reclassification date which is the first day of the immediately next
reporting period following the change in business model. The Company does not restate any previously
recognised gains, losses (including impairment gains or losses) or interest.

.1.7.6 Income Recognition

Interest Income - Interest Income from debt instruments is recognised using the effective interest rate method.

Dividend Income - Dividend Income is recognised in the Statement of Profit and Loss when the right to receive
dividend is established.

1.8 Financial liabilities

1.8.1 Initial Recognition and Measurement

The Company recognizes all the financial liabilities on initial recognition at fair value minus, in the case
of a financial liability at fair value through Profit or Loss, transaction costs are directly attributable to
the acquisition or issue of the financial liability, except where such transactions costs are recognized
immediately in Statement of Profit and Loss.

The Company''s financial liabilities include trade and other payables, loans and borrowings, bank overdrafts.

1.8.2 Subsequent Measurement

All the financial liabilities are classified as subsequently measured at amortised cost. Any discount or
premium on redemption /settlement is recognised in the Statement of Profit and Loss as finance cost over
the life of the liability using the effective interest method and adjusted to the liability figure disclosed in
the Balance Sheet.

1.8.3 De-recognition of Financial Liabilities

A financial liability is de-recognized when the obligation under the liability is discharged or cancelled or
expired. When an existing financial liability is replaced by another from the same lender on substantially
different terms, or the terms of an existing liability are substantially modified, such an exchange or
modification is treated as the recognition of the original liability and the recognition of a new liability. The
difference in the respective carrying amounts is recognized in the Statement of Profit & Loss.

1.8 Property, Plant and Equipment

All items of property, plant and equipment are stated at cost less depreciation and impairment, if any.
For this purpose, cost includes deemed cost which represents the carrying value of property, plant and
equipment recognised as at 1st April, 2016 measured as per the previous generally accepted accounting
principles and also includes expenditure that is directly attributable to the acquisition of the items.
Properties in the course of construction are carried at cost, less any impairment loss.

The cost of an item of Property, Plant and Equipment is recognized as an asset if and only if: -

• it is probable that future economic benefits associated to the item will flow to the entity; and

• the cost of item can be measured reliably.

An item of property, plant and equipment is derecognized upon disposal or when no future economic
benefits are expected to arise from the continued use of asset.

Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as
appropriate, only when above recognition criteria are met. The carrying amount of any component
accounted for as a separate asset is derecognized when replaced.

Depreciation methods, estimated useful lives and residual value

Depreciation is calculated using the straight line method to allocate their cost, net of their residual values
on the basis of useful lives prescribed in Schedule II to the Companies Act, 2013. Item of Property Plant
and Equipment for which related actual cost do not exceed Rs. 5,000 are fully depreciated in the year of
purchase. The assets'' residual value and useful life are reviewed, and adjusted if appropriate, at the end of
each reporting period. Gain and Loss on disposal are determined by comparing proceeds with carrying
amount. These are included in profit or loss within other income/ expenses.

---

Mar 31, 2014

A. Accounting Convention :

Income and expenditure except otherwise stated are recognised on accrual basis. The accounts have been prepared on the basis of the historical cost and on the accounting principles of a going concern.

b. Fixed Assets :

Fixed Assets are stated at cost less depreciation. Cost includes freight, duties, taxes and all other related costs including cost of financing of borrowed funds upto the date of installation identified/allocated for the assets.

c. Depreciation :

Depreciation is provided on written down value method for assets acquired up to 31.03.1983. In respect of the assets acquired on or after 01.04.1983 depreciation has been provided on straight line method in the following manner:

For assets acquired from 01.04.1983 to 15.12.1993 at the rates specified in schedule XIV to the Companies Act, 1956. For assets acquired on or after 16.12.1993 at the rates specified in schedule XIV to the Companies Act, 1956.

d. Investments :

Long Term Investments are stated at cost. Provision for diminution in value of such investments is made if the same is permanent in nature.

e. Employee Benefits :

Employee benefits are accrued in the year services are rendered by the employees.

Contributions to defined contribution scheme such as Provident Fund etc. are recognized as and when incurred.

Long term and short term employee benefits under defined scheme such as contribution to gratuity is determined at close of the year at present value of the amount payable using actuarial valuation techniques.

Actuarial gain and losses are recognized in the year when they arise.

f. Taxation :

Income Tax expense comprises current tax and deferred tax charge or release. The deferred tax charge or credit is recognised using current tax rates. Deferred tax assets on account of unabsorbed depreciation and carry forward losses as per Income Tax Act are recognized only if there is virtual certainty of realisation of such assets. Other deferred tax assets are recognised only to the extent there is reasonable certainty of realisation in future.

g. Contingent Liabilities :

Contingent liabilities have not been provided for and have been disclosed by way of notes.

2.1 The Company has only one class of equity shares having a par value of Rs. 10.each. Each share has one voting right.

2.2 The Company has only one class of preference shares having a par value of Rs. 100 each. Dividend on such preference shares are non-cumulative.

These preference shares are redeemable on or before 31.3.2020. Such Preference share has no voting right.

2.3 There is no movement in the number of equity shares and preference shares outstanding and amount of equity share capital and preference share capital as at 31st March 2014.

2.4 In the year 2011-12, 8300 shares (each Rs. 5 paid) were forfeited after duly called for payment.

2.5 Shares in the company held by each shareholder holding more than 5 percent shares specifying the number of shares held is mentioned below :

---

Mar 31, 2013

A. Accounting Convention :

Income and expenditure except otherwise stated are recognised on accrual basis. The accounts have been prepared on the basis of the historical cost and on the accounting principles of a going concern.

b. Fixed Assets :

Fixed Assets are stated at cost less depreciation. Cost includes freight, duties, taxes and all other related costs including cost of financing of borrowed funds upto the date of installation identified/ allocated for the assets.

c. Depreciation :

Depreciation is provided oh written down value method for assets acquired up to 31.03.1983. In respect of the assets acquired on or after 01.04.1983 depreciation has been provided on straight line method in the following manner:

For assets acquired from 01.04.1983 to 15.12.1993 at the rates specified in schedule XIV to the Companies Act, 1956. For assets acquired on or after 16.12.1993 at the rates specified in schedule XIV to the Companies Act, 1956.

d. investments :

Long Term Investments are stated at cost. Provision for diminution in value of such investments is made if the same is permanent in nature.

e. Employee Benefits :

Employee benefits are accrued in the year services are rendered by the employees.

Contributions to defined contribution scheme such as Provident Fund etc. are recognized as and when incurred.

Long term employee benefits under defined scheme such as contribution to gratuity is determined at close of the year at present value of the amount payable using actuarial valuation techniques.

Actuarial gain & losses are recognized in the year when they arise.

f. Taxation:

Income Tax expense comprises current tax and deferred tax charge or release. The deferred tax charge or credit is recognised using current tax rates. Deferred tax assets on account of unabsorbed depreciation and carry forward losses as per Income Tax Act are recognized only if there is virtual certainty of realisation of such assets. Other deferred tax assets are recognised only to the extent there is reasonable certainty of realisation in future.

g. Contingent Liabilities :

Contingent liabilities have not been provided for and have been disclosed by way of notes.

---

Mar 31, 2012

A. Accounting Convention :

Income and expenditure except otherwise stated are recognised on accrual basis. The accounts have been prepared on the basis of the historical cost and on the accounting principles of a going concern.

b. Fixed Assets :

Fixed Assets are stated at cost less depreciation. Cost includes freight, duties, taxes and all other related costs including cost of financing of borrowed funds upto the date of installation identified/ allocated for the assets.

c. Depreciation :

Depreciation is provided on written down value method for assets acquired up to 31.03.1983. In respect of the assets acquired on or after 01.04.1983 depreciation has been provided on straight line method in the following manner:

For assets acquired from 01.04.1983 to 15.12.1993 at the rates specified in schedule XIV to the Companies Act, 1956. For assets acquired on or after 16.12.1993 at the rates specified in schedule XIV to the Companies Act, 1956.

d. Investments :

Long Term Investments are stated at cost. Provision for diminution in value of such investments is made if the same is permanent in nature.

e. Employee Benefits:

Employee benefits are accrued in the year services are rendered by the employees.

Contributions to defined contribution scheme such as Provident Fund etc. are recognized as and when incurred.

Long term employee benefits under defined scheme such as contribution to gratuity is determined at close of the year at present value of the amount payable using actuarial valuation techniques.

Actuarial gain & losses are recognized in the year when they arise.

f. Taxation :

Income Tax expense comprises current tax and deferred tax charge or release. The deferred tax charge or credit is recognised using current tax rates. Deferred tax assets on account of unabsorbed depreciation and carry forward losses as per Income Tax Act are recognized only if there is virtual certainty of realisation of such assets. Other deferred tax assets are recognised only to the extent there is reasonable certainty of realisation in future.

g. Contingent Liabilities :

Contingent liabilities have not been provided for and have been disclosed by way of notes.

---

Mar 31, 2010

1) Accounting Convention:

Income and expenditure except otherwise stated are recognised on accrual basis. The accounts have been prepared on the basis of the historical cost and on the accounting principles of a going concern.

2) Fixed Assets:

Fixed Assets are stated at cost less depreciation. Cost includes freight, duties, taxes and all other related costs including cost of financing of borrowed funds upto the date of installation identified/allocated for the assets.

3) Depreciation:

Depreciation is provided on straight line method at the rates specified in Schedule XIV to the Companies Act, 1956.

4) Investments:

Long Term Investments are stated at cost. Provision for diminution in value of such investments is made if the same is permanent in nature.

5) Employee Benefits:

Employee benefits are accrued in the year services are rendered by the employees.

Contributions to defined contribution scheme such as Provident Fund etc. are recognized as and when incurred.

Long term employee benefits under defined scheme such as contribution to gratuity is determined at close of the year at present value of the amount payable using actuarial valuation techniques.

Actuarial gain & losses are recognized in the year when they arise.

6) Taxation:

Income Tax expense comprises current tax and deffered tax. The deffered tax charge or credit is recognised using current tax rates. Deffered tax assets on account of unabsorbed depreciation and carry forward losses as per Income Tax Act are recognized only if there is virtual certainty of realisation of such assets. Other deffered tax assets are recognised only to the extent there is reasonable certainty of realisation in future.

7) Miscellaneous Expenditure:

Advance against capital goods transferred from amalgamating Company is written off in ten equal installments as per Scheme of amalgamation sanctioned by the Hon'bie High Court at Kolkata.

8) Contingent Liabilities:

Contingent liabilities have not been provided for and have been disclosed by way of notes.