Singer India 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(a). The net worth at the Company as at December 31, 2007 has been completely eroded. The Company has been Declared a sick Industrial Unit in terms of Section 3(1)(o) of the Sick Industrial Companies (Special Provisions) Act, 1985. The financial results have been prepared on a going concern basis, where the Company will be able to realize all its assets at their carrying values as at December 31, 2007 and discharge all its liabilities as at December 31, 2007 in the normal course of business.
Since the net worth of the Company has completely eroded, the Auditors are unable to comment on its continuity as a going concern. The financial information does not include any adjustments that may be requited in case the Company is unable to continue its operations as a going concern. Accordingly, the Auditors are unable to ascertain the related financial impact, if any, in case the Company is unable to continue as a going concern.
1(b). Deposits and Prepaid Taxes aggregating to Rs 14,753 thousand have been included under the head Loans & Advances - Considered Good on which the auditors are unable to comment on their recoverability / realisability and further, no provision for Sales Tax Rs 13,915 thousand has been made in the accounts. The management is hopeful that these amounts would be recovered or Liabilities would not arise Residual Liability, if any, on settlement would be provided on crystallization.
1(c). Consequent to Accounting Standard 15 (revised) becoming mandatory, the transitional liability, if any, is in the process of being computed and would be adjusted with the opening balance in Profit & Loss account carried forward.
1(a). The net worth at the Company as at December 31, 2007 has been completely eroded. The Company has been Declared a sick Industrial Unit in terms of Section 3(1)(o) of the Sick Industrial Companies (Special Provisions) Act, 1985. The financial results have been prepared on a going concern basis, where the Company will be able to realize all its assets at their carrying values as at December 31, 2007 and discharge all its liabilities as at December 31, 2007 in the normal course of business.
Since the net worth of the Company has completely eroded, the Auditors are unable to comment on its continuity as a going concern. The financial information does not include any adjustments that may be requited in case the Company is unable to continue its operations as a going concern. Accordingly, the Auditors are unable to ascertain the related financial impact, if any, in case the Company is unable to continue as a going concern.
1(b). Deposits and Prepaid Taxes aggregating to Rs 14,753 thousand have been included under the head Loans & Advances - Considered Good on which the auditors are unable to comment on their recoverability / realisability and further, no provision for Sales Tax Rs 13,915 thousand has been made in the accounts. The management is hopeful that these amounts would be recovered or Liabilities would not arise Residual Liability, if any, on settlement would be provided on crystallization.
1(c). Consequent to Accounting Standard 15 (revised) becoming mandatory, the transitional liability, if any, is in the process of being computed and would be adjusted with the opening balance in Profit & Loss account carried forward.
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