Birla VXL 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. In absence of substantial evidence regarding advances towards building aggregating to Rs 881 lac, considered good by the management, the Auditors are unable to comment upon the ultimate recoverability of the same. Necessary recognition of interest etc, if any, will be made on settlement of ongoing legal / arbitration proceedings.
2. The accounts have been drawn on going concern basis, despite negative net worth, as the Board expects that under improved market conditions, post implementation of various provisions of Scheme and continued initiatives towards operational improvements, adequate net worth and working capital will be available for sustained operations.
3. Note no. 2 of accompanying statement of unaudited financial results, which states that the effect of revised Accounting Standard 15 Employees Benefit, and provision for Taxation, including deferred tax, will be determined and dealt with at the year end.
4. Balances of debtors, creditor, loans and advance, secured and unsecured loans are subject to confirmation and / or reconciliation, impact whereof is currently not ascertained.
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