Alcobex Metals Ltd has informed that in the limited review report of the Company for the quarter ended September 30, 2007, the Auditors of the Company have made the following observations:
1. The accumulated losses of the Company have exceeded the net worth of Company and the Company has been incurring cash losses for the past few years. However the Accounts of the Company has been prepared on the basis of going concern assumption.
2. Valuation of inventories done by the Company has not been verified / reviewed by Company in absence of details.
3. No provision has been made for liability of import duly on raw material against duty free license ending fulfillment of export obligation to the extent Rs 67.80 lacs in respect of which export obligation could no be met.
4. Consequent to Accounting Standard (AS) 15 becoming mandatory, the transitional liability is in the process of being ascertained and would be adjusted with opening balance in the Profit & Loss Account. This does not have any impact on the results for the period under review. The expenses for the period under review have been provided for on best estimates basis.
5. The Company has not ascertained / accounted deferred tax asset / liability at the end of quarter ended September 30, 2007 which is not in accordance with accounting Standard (AS) 22 Accounting for Taxes on Income. It is stated that necessary adjustments would be done at year-end.
6. The Company is still in the process of introducing a system of obtaining balance confirmation from parties having debit / credit balances.
7. Liability of penal interest, if any, in respect of late deposit of statutory dues, repayment of principal & interest to bank & financial institutions has not been ascertained / accounted for.
8. Provision for doubtful debts & advances would be made at the year end.
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