Jyoti Ltd has informed that in the limited review report of the Company for the quarter ended December 31, 2007, the Auditors of the Company have made the following observations:
1. The Company follows the practice of determining provisions / write offs for doubtful and bad debts at the end of the financial year.
2. Inventories of WIP have been valued using estimated progress percentages and standard conversion costs as applied to quantities derived from material issues for the period less finished goods produced. Inventories of Finished Goods have been valued using estimated profitability percentages of the previous year as applied to sales price of finished inventories as of the period end. Physical verification of inventories has not been performed and therefore differences in quantities are not known. The effects of the foregoing estimates and bases in arriving at the closing inventories are not determined.
3. In terms of revised Accounting standard (AS 15) Employees benefit applicable w.e.f.April 01, 2007, the liabilities are being ascertained by the Company and the necessary adjustments will be done at the year end.
4. The Company has decided to give effect of provision for Income Tax / Deferred Tax Liabilities at the end of the year.
1. The Company follows the practice of determining provisions / write offs for doubtful and bad debts at the end of the financial year.
2. Inventories of WIP have been valued using estimated progress percentages and standard conversion costs as applied to quantities derived from material issues for the period less finished goods produced. Inventories of Finished Goods have been valued using estimated profitability percentages of the previous year as applied to sales price of finished inventories as of the period end. Physical verification of inventories has not been performed and therefore differences in quantities are not known. The effects of the foregoing estimates and bases in arriving at the closing inventories are not determined.
3. In terms of revised Accounting standard (AS 15) Employees benefit applicable w.e.f.April 01, 2007, the liabilities are being ascertained by the Company and the necessary adjustments will be done at the year end.
4. The Company has decided to give effect of provision for Income Tax / Deferred Tax Liabilities at the end of the year.
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