Scripscan:Longview Tea Company Ltd
cmp:6
Code:526568
Investing-reflections:Longview Tea, contrary to its name, is primarily in the business of making loans and advances.These loans and advances appear largely uncollectable. Moreover, it is the recipient of interest-free loans from other companies – the repayments appear to be in doubt.The company generates no revenue and reported continuous operating losses in the last five years. It also owes about 50lacs of net debt as at 30th September, 2011.Management haven’t bothered with discussing the company and its plans – perhaps their mood is killed by the company’s large accumulated losses.The company’s auditors have pointed to the lack of provisioning of 35lacs for uncollectable debtors, 41lacs for uncollectable loans and advances and 1.43cr of uncollectable interest. The loans and interest haven’t been classified as ‘non-performing assets’ per RBI norms.Further, the company still hasn’t obtained registration from RBI for its lending activities – although these appear to have ceased for the time being and the company hasn’t accepted public deposits.
cmp:6
Code:526568
Investing-reflections:Longview Tea, contrary to its name, is primarily in the business of making loans and advances.These loans and advances appear largely uncollectable. Moreover, it is the recipient of interest-free loans from other companies – the repayments appear to be in doubt.The company generates no revenue and reported continuous operating losses in the last five years. It also owes about 50lacs of net debt as at 30th September, 2011.Management haven’t bothered with discussing the company and its plans – perhaps their mood is killed by the company’s large accumulated losses.The company’s auditors have pointed to the lack of provisioning of 35lacs for uncollectable debtors, 41lacs for uncollectable loans and advances and 1.43cr of uncollectable interest. The loans and interest haven’t been classified as ‘non-performing assets’ per RBI norms.Further, the company still hasn’t obtained registration from RBI for its lending activities – although these appear to have ceased for the time being and the company hasn’t accepted public deposits.
