Duncans Industries Ltd has informed that in the limited review report of the Company for the quarter ended June 30, 2007 the Auditors of the Company have made the following observations:
1(a). The accounts of the Company as given in Note 2 have been prepared on a going concern basis. However, its ability to continue as such is dependent upon its future performance and profitability.
1(b). Accounting Standards on Impairment of Assets (AS-28) as given in Note 3 (c) requiring determination of impairment against fixed assets and provisions there against have not been complied with.
1(c). Attention is invited to the Note 9 of the statement regarding non compliance of Accounting Standard - 15 Employee Benefit.
The auditors are unable to ascertain and state the impact 1(a), 1(b) and 1(c) of the same on the various figures and the amount of loss given in the statement.
2. Due to suspension of operation in the fertiliser division, computer system could not be fully operated and figures thereof as such could not be accessed. Various reconciliations including bank accounts, records, details in this respect including as given in Note 1(a) and 3(b) as such were not available. The figures given in the Unaudited Financial Resutls for the quarter includes figures pertaining to the said division have been considered based on the adjustments / estimations, made by the management outside the financial systems. However, these in the absence of relevant details and records as such could not be reviewed by the auditors.
3. Due to reasons given in Para 2 above, the interdivisional balance between the tea and fertilizer division of the Company could also not be reconciled as at June 30, 2007. Consequential impact on account of this, on the Unaudited Financial Results for the quarter cannot be ascertained and commented upon by the Auditors.
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