Longview Tea Company Ltd Management Discussions

Industry Structure & Development

The Company is mainly engaged in the business of trading of Commodities (tea, ferrous and non-ferrous metals). The Company is also dealing and investing in shares and securities and has interest income from loans and advances.

The global economy is continuing growing at a modest pace. The economic outlook projects steady global GDP growth of 3.1% in 2024, the same as the 3.1% in 2023, followed by a slight pick-up to 3.2% in 2025.The impact of tight monetary conditions continues being felt, but global activity is proving relatively resilient, the decline in inflation continues and private sector confidence is improving.

Trading business faces risks. Risk is defined as the likelihood of an event and its consequences. Risk management is the practice of using processes, methods and tools for managing these risks. The Company believes that risk management is not a one-off exercise. Continuous monitoring and reviewing are crucial for the success of the risk management approach which ensures that risks have been correctly identified and assessed and the right controls put in place. It is also a way to learn from experience and make improvements. The Company conceives various elements and analyse the Risk involved and take effective steps to reduce the risk against the business of the Company.

The Company implemented internal control systems to ensure that all assets are safeguarded and protected against losses and all transactions are reported correctly. The Companys internal control system and procedure is commensurate with the size and nature of business.

Financial Performance a) This has been covered in the Directors Report under the section on financial results and operations. b) Details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios along with detailed explanations therefor-

• Interest Coverage Ratio for the year ended 31^st March, 2024 has increased due to increase in EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) for the year ended 31^st March, 2024 as against EBITDA during 31^st March, 2023.

• Current Ratio for the year ended 31^st March, 2024 has dereased due to increase in Current Liabilities.

• The Operating profit margin for the year ended 31^st March, 2024 has increased due to increase in EBIT (Earnings before Interest and Taxes) for the year ended 31^st March, 2024 as against EBIT during 31^st March, 2023.

• The Net profit margin for the year ended 31^st March, 2024 has increased as compared to previous year due to increase in net profit after tax in the current year. d) Return on Net Worth during the year is 8.57% as compared to -1.01% in the previous year.The change is mainly due to increase in net profit after tax during the current year.

Employer-employee relations remained cordial during the year under review. As on 31^st March, 2024 There were 3 permanent employees on the rolls of the Company.

Statements made in this Management Discussion and Analysis Report describing the Companys objectives, estimates, expectations or predictions may be forward looking statements, within the meaning of the applicable laws and regulations and have been made in good faith. Many unforeseen factors may come into play and affect the actual results, which could be different from what the Directors envisage in terms of future performance and outlook.