National Plastic - Limited Review For The Quarter Ended June 30, 2007

National Plastic 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. No adjustments has been made for the following items and explained to be accounted at the year - end. Impact thereof on the profitability of the Company is unascertainable.
- Accrued interest on Fixed Deposits with the Bank.
- Bad Debts, Doubtful Advances and Income Receivable.
- Write offs / back in respect of balances of Sundry Debtors and Sundry Creditors.
- Reconciliation of balances of Associate Producers.
- Scrutiny of Income Tax and old Sales Tax balances.
2. In view of huge unabsorbed losses and depreciation, no provision is required for deferred tax liabilities and no provision for deferred tax assets have been made considering virtual uncertainty of profitability of the Company in future.
3. No provision has been made in the accounts in respect of liability for retirement benefits by way of accrued gratuity and leave encashment, as the amount has not been determined.
4. The Company has not provided any interest on Term Loan from IDBI as per One Time Settlement (OTS) package already approved, despite some failure in repayment of loan amount as per the terms of OTS and management expects no further liability on this account. The Company has provided for interest on Cash Credit facilities from the State Bank of India amounting to Rs 27 lacs on ad-hoc basis which is subject to confirmation.