LML 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. Balances of some of the sundry debtors, creditors lenders and loans and advances being subject to confirmation / reconciliation and subsequent adjustments, if any. Provision for the same, if any, will be made upon completion of such review / reconciliation. As such the Auditors are unable to express any opinion as to the effect thereof on the accounts for the quarter under review.
2. In respect of non ascertainment of slow / non moving / obsolete items of inventory for which the Company will ascertain possible utilization / realization upon finalization of restructuring / revival plan. As such the Auditors are unable to express any pinion as to the effect thereof on the accounts for the quarter under review.
3. Accounts have been prepared on a going concern basis as Company is in the process of restructuring / reviving its business under the aegis of BIFR. The Company has become a Sick Industrial Company due to erosion of its entire net worth. The Companys ability to continue, as a going concern may be dependent upon successful restructuring of its business. In case the going concern concept is vitiated, necessary, adjustments will be required on the carrying amount of Assets and Liabilities which are not ascertainable.
4. The Company is in the process of determining the impairment loss, if any, on its assets including capital work in progress as required under Accounting Standard (AS)-28 impairment of Assets issued by The Institute of Chartered Accountants of India, which has become applicable to the Company from April 01, 2005. As the impairment loss, if any, in terms of AS-28 has not been determined, the Auditors are unable to express any opinion as to the effect thereof on the accounts for the quarter under review.
1. Balances of some of the sundry debtors, creditors lenders and loans and advances being subject to confirmation / reconciliation and subsequent adjustments, if any. Provision for the same, if any, will be made upon completion of such review / reconciliation. As such the Auditors are unable to express any opinion as to the effect thereof on the accounts for the quarter under review.
2. In respect of non ascertainment of slow / non moving / obsolete items of inventory for which the Company will ascertain possible utilization / realization upon finalization of restructuring / revival plan. As such the Auditors are unable to express any pinion as to the effect thereof on the accounts for the quarter under review.
3. Accounts have been prepared on a going concern basis as Company is in the process of restructuring / reviving its business under the aegis of BIFR. The Company has become a Sick Industrial Company due to erosion of its entire net worth. The Companys ability to continue, as a going concern may be dependent upon successful restructuring of its business. In case the going concern concept is vitiated, necessary, adjustments will be required on the carrying amount of Assets and Liabilities which are not ascertainable.
4. The Company is in the process of determining the impairment loss, if any, on its assets including capital work in progress as required under Accounting Standard (AS)-28 impairment of Assets issued by The Institute of Chartered Accountants of India, which has become applicable to the Company from April 01, 2005. As the impairment loss, if any, in terms of AS-28 has not been determined, the Auditors are unable to express any opinion as to the effect thereof on the accounts for the quarter under review.
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