Notes to Accounts of Longview Tea Company Ltd.

Mar 31, 2024

1.10 Provision, Contingent Liabilities and Contingent Assets, legal or constructive

Provisions are recognised when there is a present obligation (legal or constructive) as a result of a past
event, it is probable that an outflow of resources embodying economic benefits will be required to settle
the obligation and there is a reliable estimate of the amount of the obligation. If the effect of time value
of money is material, provisions are measured at the present value of management''s best estimate of the
expenditure required to settle the present obligation at the end of the reporting period. The discount rate
used to determine the present value is a pre-tax rate that reflects current market assessments of the time
value of money and the risk specific to the liability. The increase in the provision due to the passage of time
is recognised as interest expense.

A disclosure for contingent liabilities is made when there is a possible obligation arising from past events,
the existence of which will be confirmed only by the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control of the Company or a present obligation that arises
from past events where it is either not probable that an outflow of resources will be required to settle or a
reliable estimate of the amount cannot be made.

When there is a possible obligation or a present obligation and the likelihood of outflow of resources is
remote, no provision or disclosure for contingent liability is made.

Contingent Assets are not recognised but are disclosed when an inflow of economic benefits is probable.
Provisions, contingent liabilities and contingent assets are reviewed at each balance date.

1.11 Employee Benefits

1.11.1 Short-term Employee Benefits

These are recognised at the undiscounted amount as expense for the year in which the related service is
rendered.

1.11. 2 Post-employment Benefit and Other Long-term Employee Benefits (Unfunded)

The cost of providing long-term employee benefits is determined using Projected Unit Credit Method with
actuarial valuation being carried out at each Balance Sheet date. Long term employee benefit obligation
recognised in the Balance Sheet represents the present value of related obligation.

1.11. 3Post-employment Benefit Plans

Contributions under Defined Contribution Plans payable in keeping with the related schemes are
recognised as expenditure for the year.

In case of Defined Benefit Plans, the cost of providing the benefit is determined using the Projected Unit
Credit Method with actuarial valuation being carried out at each Balance Sheet date. Actuarial gains and
losses are recognised in full in the Other Comprehensive Income for the period in which they occur. Past
service cost is recognised immediately to the extent that the benefits are already vested, and otherwise
is amortised on a straight-line basis over the average period until the benefits become vested. The
retirement benefit obligation recognised in the Balance Sheet represents the present value of the defined
benefit obligation as adjusted for unrecognised past service cost, if any, and as reduced by the fair value of
plan assets, where funded. Any asset resulting from this calculation is limited to the present value of any
economic benefit available in the form of refunds from the plan or reductions in future contributions to
the plan.

1.11.4 Bonus plans

The Company recognizes a liability and an expense for bonuses. The Company recognizes a provision
where contractually obliged or where there is a past practice that has created a constructive obligation.

1.12 Equity

Equity Shares are classified as equity. Incremental costs directly attributable to the issue of new shares are
shown in equity as a deduction, net of tax, from the proceeds.

1.13 Earnings per Share

1.13.1 Basic Earnings per Share

Basic earnings per share are calculated by dividing the profit/loss attributable to owners of the Company
by the weighted average number of equity shares outstanding during the financial year.

1.13.2 Diluted earnings per share

Diluted earnings per share adjust the figures used in the determination of basic earnings per share to take
into account:

• The after-income tax effect of interest and other financing costs associated with dilutive potential
Equity Shares, and

• The weighted average number of additional Equity Shares that would have been outstanding
assuming the conversion of all dilutive potential Equity Shares.

1.14 Impairment of non-financial assets

Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss is recognised for the amount by which the asset''s
carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset''s fair
value less costs of disposal and value in use. For the purpose of assessing impairment, assets are grouped
at the lowest levels for which there are separately identifiable cash flows which are largely independent
of the cash flows from other assets or group of assets (cash-generating units). Non-financial assets that
suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting
period.

1.15 Borrowing Cost

Interest and other borrowing costs attributable to qualifying assets are capitalized. All other borrowing
costs are charged to Statement of Profit and Loss.

1.16 Offsetting Financial Instruments

Financial assets and liabilities are offset and the net amount is reported in the Balance Sheet where there
is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net
basis or realise the asset and settle the liability simultaneously. The legally enforceable right must not be
contingent on future events and must be enforceable in the normal course of business.

1.17 Use of Estimates

The Preparation of financial statements in conformity with the generally accepted accounting principles
in India requires the management to make estimates and assumptions that affects the reported amount
of assets and liabilities as at the Balance Sheet date, the reported amount of revenue and expenses
for the periods and disclosure of contingent liabilities at the Balance Sheet date. The estimates and
assumptions used in the financial statements are based upon management''s evaluation of relevant facts
and circumstances as of the date of financial statements. Actual results could differ from estimates.

1.18 Recent pronouncements

The Ministry of Corporate Affairs has notified Companies (Indian Accounting Standards) Amendment
Rules, 2023 dated 31^st March 2023 to amend the following Ind AS which are effective for annual periods
beginning on or after 1^st April 2023. The company has given effect to these amendments during the year.

(i) Definition of Accounting Estimates - Amendments to Ind AS 8

The amendments clarify the distinction between changes in accounting estimates, changes
in accounting policies and the correction of errors. It has also been clarified how entities use
measurement techniques and inputs to develop accounting estimates.

The amendments had no impact on the company''s financial statements.

(ii) Disclosure of Accounting Policies - Amendments to Ind AS 1

The amendments aim to help entities provide accounting policy disclosures that are more useful
by replacing the requirement for entities to disclose their ''significant'' accounting policies with a
requirement to disclose their ''material'' accounting policies and adding guidance on how entities
apply the concept of materiality in making decisions about accounting policy disclosures.

The amendments have had an impact on the Company''s disclosures of accounting policies, but not
on the measurement, recognition or presentation of any items in the Company''s financial statements.

(iii) Deferred Tax related to Assets and Liabilities arising from a Single Transaction - Amendments
to Ind AS 12

The amendments narrow the scope of the initial recognition exception under Ind AS 12, so that it no
longer applies to transactions that give rise to equal taxable and deductible temporary differences
such as leases.

The Company previously recognised for deferred tax on leases on a net basis. As a result of these
amendments, the Company has recognised a separate deferred tax asset in relation to its lease
liabilities and a deferred tax liability in relation to its right-of-use assets. Since, these balances qualify
for offset as per the requirements of paragraph 74 of Ind AS 12, there is no impact in the balance
sheet. There was also no impact on the opening retained earnings as at 1 April 2022.Apart from
these, consequential amendments and editorials have been made to other Ind AS like Ind AS 101, Ind
AS 102, Ind AS 103, Ind AS 107, Ind AS 109, Ind AS 115 and Ind AS 34.

Note: The Company''s pending litigations comprise of claims against the Company and proceedings
pending with statutory/Government Authorities. The Company has reviewed all its pending litigation
proceedings, made adequate provisions, and disclosed the contingent liabilities wherever applicable,
in its financial statements. The Company does not expect the outcome of these proceedings to have a
material impact on its financial position. Future cash outflows in respect of above are determinable only
on receipt of judgment/decision pending with various forums/authorities.

27. No amount is due to Micro, Small and Medium enterprises (identified on the basis of information made
available during the year by such enterprises to the Company). No interest in terms of Micro, Small and
Medium Enterprises Development Act, 2006 has been either paid or accrued during the year.

28. The Company does not have any Trade Receivable and Trade Payable as at 31^st March, 2024 and 31^st
March,2023. Hence previous year''s ageing schedule is not required.

31. Financial Risk Management

Business risks exist for any enterprise having national and international exposure. The Company also faces
some such risks, the key ones being:

• Operational Risk

• Market Risk

• Financial Risk

• Liquidity Risk

• Compliance Risk

The Company is having a system of risk management commensurate with its size and nature of activities
to address the consequent vulnerability. Quarterly reports are placed before the Audit Committee
and the Board of Directors of the Company. Major risks identified by the businesses and functions are
systematically addressed through mitigating actions on a continuing basis. A risk management process is
in place to identify and mitigate risks that arise from time to time.

Notes:

1. The management assessed that fair value of Trade Receivables, Cash and Cash Equivalents, Bank
Balances/Deposits and Advances approximate their carrying amounts.

2. The fair value of the financial assets is included at the amount at which the instrument could be
exchanged in a current transaction between willing parties, other than in a forced or liquidation
sale.

The financial instruments are categorized into three levels based on the inputs used to arrive at fair

value measurements as decided below:

Level 1 - Quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2 - Other techniques for which all inputs which have a significant effect on the recorded fair
value are observable, either directly or indirectly.

Level 3 - Techniques which use inputs that have a significant effect on the recorded fair value
that are not based on observable market data.

Methods and assumptions

The following methods and assumptions were used to estimate the fair values at the reporting date:

i. Quoted Equity Shares: Closing quoted price (unadjusted) in National Stock Exchange of India Limited

ii. Mutual Funds: Closing quoted price (unadjusted) in Central Depository Services (India) Limited

iii. Non-Convertible Preference Shares: Fair value of preference shares is estimated by discounting cash
flows. The valuation requires management to use unobservable inputs in the model, of which the
significant unobservable inputs are disclosed in the table below. Management regularly assesses a
range of reasonably possible alternatives for those significant unobservable inputs and determines
their impact on the total fair value.

38. The company has recorded fair value notional gain on its investments required to be disclosed under
Indian Accounting Standard (Ind AS 109) resulting in the same temporarily becoming a major source of
its income during the year. As a result, Income from financial assets exceeded its income from trading
activities in ferrous and non-ferrous metals. Even though there is low revenue from trading activities
during the year the management is hopeful of making large gains from trading in commodities in future
and therefore there is presently no requirement of the company to get registration under section 45-IA of
the Reserve Bank of India Act 1934.

39. Previous year figures have been regrouped / rearranged wherever necessary

FOR AND ON BEHALF OF THE BOARD
As per our report annexed
For V.SINGHI & ASSOCIATES

Chartered Accountants Yashwant Kumar Daga Bajrang Agarwal

Firm Registration No.: 311017E Director Director

(DIN 00040632) (DIN 01017092)

(NAVEEN TAPARIA) Hemlata Jhajharia Vikash Joshi

Partner Director Chief Financial Officer

Membership No.: 058433 (DIN 09438664)

UDIN: 24058433BKFCEV6014

Place: Kolkata Joydeep Pattanayak Sujata Pandey

Date: 3rd May, 2024 Chief Executive Officer Company Secretary

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Mar 31, 2014

1. The above Cash Flow Statement has been prepared under the Indirect Method as set out in the Accounting Standard (AS) 3 on Cash Flow Statements.

2. Previous year''s figures have been re-grouped /re-arranged wherever necessary.

Notes referred to above forms an integral part of this Cash Flow Statement. This is the Cash Flow Staeemnt referred to in our Repoprt of even date.

3.1 There are no Micro, Small and Medium Enterprises, to whom the Company owes dues as at March 31, 2014. The above information regarding micro, small & medium Enterprises have been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

3.2 Contingent liability not provided for in respect of Sales tax for assessment year 1995-96, 1998-99, 2000-01, 1977-78, 1978-79, 1979-80 and 1980-81 Rs. 25,54,457/- (25,54,457/-).

3.3 Presently, the Company is engaged in trading of tea and ferrous metal. Accordingly, trading is only business segment as per Accounting Standard 17 on "segment reporting" issued by the Institute of Chartered Accountants of India.

3.4 Employment Benefits :

The disclosures required under Accounting Standard 15 "Employee Benefit" notified in the Companies (Accounting Standards) Rules 2006, are given below :

Defined Benefit Scheme :

The employee''s gratuity scheme is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

Notes :

Assumptions relating to future salary increases, attrition, interest rate for discount & overall expected rate of return on Assets have been considered based on relevant economic factors such as inflation, market growth & other factors applicable to the period over which the obligation is expected to be settled.

3.5 The figures in respect of the previous year have been regrouped/ rearranged, wherever necessary to make them comparable with those of current year.

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Mar 31, 2013

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

1.2 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.

1.3 The reconciliation of number of shares outstanding and amount of share capital as at 31st March 2013 and 31st March 2012 is set out below :

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

2.1 Include Rs. 228,250 being the amount originally paid forfeited during the year 2011 -12. (Refer Note - 2.4 also)

3.1 Represents Loan taken against Keyman Insurance Policy at 10% interest and is repayable on maturity date of the said policy in the year 2020.

4.1 There are no Micro, Small and Medium Enterprises, to whom the Company owes dues as at March 31,2013. The above information regarding micro, small & medium Enterprises have been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

5.1 The Company has unabsorbed business loss and depreciation. Deferred tax assets have not been recognised unless virtual certainty of realisation of such assets.

6.1 Contingent liability not provided for in respect of excise duty Rs. 792,688/- (Rs.792,688/-).

6.2 Contingent liability not provided for in respect of Sales tax for assessment year 1995-96, 1998- 99, 2000-01, 1977-78, 1978-79, 1979-80 and 1980-81 Rs. 2,554,457/- (Rs. 2,554,457/-).

6.3 Presently, the Company is engaged in trading of tea and ferrous metal. Accordingly, trading is only business segment as per Accounting Standard 17 on "segment reporting" issued by the Institute of Chartered Accountants of India.

6.4 Employment Benefits :

The disclosures required under Accounting Standard 15 "Employee Benefit" notified in the Companies (Accounting Standards) Rules 2006, are given below :

6.5 The figures in respect of the previous year have been regrouped/ rearranged, wherever necessary to make them comparable with those of current year.

The figure in brackets represents the figures for previous year.

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Mar 31, 2012

1. The above Cash Flow Statement has been prepared under the indirect Method as set out in the Accounting Standard (AS) 3 on Cash Flow Statements.

2. Previous year's figures have been re-grouped / re-arranged wherever necessary.

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 The reconciliation of number of shares outstanding and amount of share capital as at 31st March 2012 and 31st March 2011 is set out below :

2.4 During the year, 8,300 shares (each Rs. 5 paid) were forfeited after duly called for payment.

2.5 Calls Unpaid amounting to Rs. 269,750 (Including Share Premium of Rs. 228,250) on 8,300 Shares pending since 1994-95.

2.6 Shares in the company held by each shareholder holding more than 5 percent shares specifying the number of shares held:

3.1 Include Rs. 228,250 being the amount originally paid forfeited during the year (Refer Note - 2.4 also)

4.1 Represents Loan taken against Keyman Insurance Policy at 9% interest and is repayable on maturity date of the said policy in the year 2020.

4.1 The Company has unabsorbed business loss and depreciation. Deferred tax assets have not been recognised unless virtual certainty of realisation of such assets.

6.1 These balances are outstanding for a considerable period. In the opinion of the management these balances are good of recovery and accordingly no provision has been considered necessary.

7.1 interest aggregating to Rs. 1,65,89,203/- (Rs 1,42,69,502/-) is overdue for realisation from a company. In view of the management there is no uncertainty in realisation of the interest and money advance Rs. 41,40,829 to the said Company. Consequently the above interest has been recognised on accrual basis and no provision has been considered necessarily against the said loan.

(Rupees)

8. OTHER NOTES

8.1 Contingent liability not provided for in respect of excise duty Rs. 792,688/- (Rs.792,688/-).

8.2 Contingent liability not provided for in respect of Sales tax for assessment year 1995-96, 1998- 99, 2000-01, 1977-78, 1978-79, 1979-80 and 1980-81 Rs. 2,554,457/- (2,242,709/-).

8.3 Related Party Disclosures as identified by the management is given as below : Mr. O. P. Dokania, Chief Executive

The details of payment made to Key Management Personnel:

Particulars For the Year ended For the Year ended 31.03.2012 31.03.2011

Remuneration 1,173,000 202,800

8.4 Presently, the Company is engaged in trading of tea. Accordingly, this is only business segment as per Accounting Standard 17 on "segment reporting" issued by the Institute of Chartered Accountants of India.

8.5 Employment Benefits:

The disclosures required under Accounting Standard 15 "Employee Benefit" notified in the Companies (Accounting Standards) Rules 2006, are given below:

Defined Contribution Scheme:

Contributions to Defined Contribution Plan, recognized for the year are as under:

Defined Benefit Scheme:

The employee's gratuity scheme is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

Notes :

Assumptions relating to future salary increases, attrition, interest rate for discount & overall expected rate of return on Assets have been considered based on relevant economic factors such as inflation, market growth & other factors applicable to the period over which the obligation is expected to be settled.

8.6 As notified by Ministry of Corporate Affairs of the Government of India, revised Schedule VI under the Companies Act, 1956 is applicable to all financial year commencing on or after 1st April, 2011. Accordingly, the financial statement for the year ended 31st March, 2012 are prepared in accordance therewith. Figures pertaining to the previous year have been rearranged/regrouped, reclassified and restated, wherever necessary to make them comparable with those of current year.

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Mar 31, 2010

1. Contingent liability not provided for in respect of Sales tax for assessment year 1995- 96 & 1998-99 Rs. 22,42,709/- (Rs. 22,42,709/-) and excise Rs. 7,92,688/- (Rs. 7,92,688) as these are disputed by the Company and are under appeal. In the opinion of the management these are not tenable Future cash outflows in theses cases are dependent upon outcome of judgements/decisions.

2. Sundry Debtors balances of Rs.35,75,371/- (Rs. 35,75,371/-) are outstanding for a considerable period. In the opinion of the management these balance are good & recoverable.

3. Balance of debtors, creditors, unsecured loan and others are subject to confirmation/ reconciliation and consequential adjustment, if any, with respect to individual details etc.

4. Related Party Disclosures as identified by the management is given as below:

Mr. O. P. Dokania, Chief Executive

5. Interest aggregating to Rs. 1,22,09,377/- (Rs. 1,02,01,457/-) is overdue for realisation from a company. In view of the management there is no uncertainty in realisation of the interest and money advance to them. Consequently the above interest has been recognised on accrual basis and no provision has been considered necessary against the said loan.

6. As the company has already disposed its entire tea estates, the funds pending commencement of other activities are deployed for financial activities in the corporate deposits which is the only Reportable Segment as per Accounting Standard 17 on "segment reporting" issued by the Institute of Chartered Accountants of India.

7. There are no Micro, Small and Medium Enterprises, to whom the Company owes dues as at March 31,2010. The information regarding micro, small & medium Enterprises have been determined to the extent such parties have been identified on the basis of information available with the Company.

8. Employment Benefits:

The disclosures required under Accounting Standard 15 "Employee Benefit" notified in the Companies (Accounting Standards) Rules 2006, are given below:

Defined Benefit Scheme :

The employee's gratuity scheme is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

9. In view of the carry forward losses, provision for taxation has not been considered necessary by the management.

10. The figures in respect of the previous year have been regrouped/rearranged, wherever necessary.

11. The figure in brackets represents the figures of last year.