Jenson & Nicholson India 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(i) The banks, financial institutions and other lenders have filed legal cases against, the Company for recovery of outstanding loans and interest thereon. No provisions, has been made in these accounts for additional interest, penal interest, liquidated damages etc., amounting to Rs 739.67 lacs as claimed by the above lenders at various legal forums and the same has been considered as contingent liability. The Company however has provided interest on the above loans on a basis as considered appropriate by the management but up to March 31, 2006. The Company has stopped providing interest on all loans from banks and financial institutions whether secured or unsecured w.e.f. April 01, 2006 on the ground that these loans would have been declared NPA by them. Interest amounting to Rs 10889.11 lacs for the period from April 01, 2006 to September 30, 2007 has not been provided but the same has also been considered as contingent liability. For the six months ended September 30, 2007 the interest amounts to Rs 3993.73 lacs.
1(ii) In the absence of adequate details and information and explanation, the auditors are unable to comment as to the extent of recoverability of loans and, advances and Sundry Debtors as on September 30, 2007.
1(iii) In the absence of documentary evidence and confirmations, amount of interest payable to the suppliers in the form of Micro, Small & Medium Enterprises and others under the provision of the Micro, Small and Medium Enterprises Development Act, 2006 count not be ascertained.
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