Unaudited financial results for the quarter and half year ended 30.09.2024
Awaiting price reaction for this filing.
Longview Tea Company filed its Q2/H1 FY25 results about 8 months late. Revenue from operations grew sharply to Rs 183.39 lakhs in H1 vs Rs 44.87 lakhs in H1 FY24, driven mainly by financial/investment activity income. However, the core trading (tea) segment remained loss-making at Rs -18.99 lakhs for H1. Net profit was Rs 83.84 lakhs (H1) vs Rs 79.86 lakhs prior year, but operating cash flow was negative at Rs -35.85 lakhs. The statutory auditor (V. Singhi & Associates) issued a Disclaimer of Conclusion, stating it could not obtain sufficient evidence because the previous management has not handed over books, records, and statutory documents to the current management despite repeated requests. The company is also facing NCLT proceedings under Sections 241/242 (oppression/mismanagement) and a show-cause notice under Section 206 from the Registrar of Companies. Additionally, over 50% of total assets (Rs 972.75 lakhs out of Rs 1,884.75 lakhs) are loans to related parties, for which supporting documents could not be verified. The board also appointed new internal and secretarial auditors.
Shareholders face significant governance and transparency risks. The auditor's disclaimer of conclusion, NCLT proceedings, non-cooperation by previous management, and unverifiable related-party loans exceeding half of total assets mean the published numbers may not be reliable. The late filing itself is a regulatory red flag, and investors should expect continued volatility and low confidence in reported financials.