Aftek 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 Statement does not include any provision towards debts aggregating Rs 672.84 lacs, which are outstanding for a period exceeding 3 years as at December 31, 2007. In the absence of adequate information on the recoverability of such debts, it was not possible for the Auditors to determine as to whether such debts are recoverable, although in the opinion of the management of the Company, such debts are good and recoverable.
2. The net results for nine months ended December 31, 2007 have been overstated due to the net effect of the following material observations arising out of Auditors limited review:
(a) Unaccounted unrealised foreign exchange loss of Rs 1778.31 lacs;
(b) Non provision of proportionate interest expense of Rs 130.66 lacs on outstanding Foreign Currency Convertible Bonds and External Commercial Borrowing;
(c) Non provision of proportionate audit fees of Rs 14.96 lacs;
(d) Non provision of proportionate and leave encashment expenses of Rs 19.69 lacs;
(e) Unaccounted proportionate interest income of Rs 33.44 lacs on Fixed Deposits placed with banks;
Based on the review procedures carried out by the Auditors and according to the information and explanations given to the Company, the above observations, in so far as they relate to the quarter ended December 31, 2007, did not have a material impact on the results for the quarter ended December 31, 2007.
1. The Statement does not include any provision towards debts aggregating Rs 672.84 lacs, which are outstanding for a period exceeding 3 years as at December 31, 2007. In the absence of adequate information on the recoverability of such debts, it was not possible for the Auditors to determine as to whether such debts are recoverable, although in the opinion of the management of the Company, such debts are good and recoverable.
2. The net results for nine months ended December 31, 2007 have been overstated due to the net effect of the following material observations arising out of Auditors limited review:
(a) Unaccounted unrealised foreign exchange loss of Rs 1778.31 lacs;
(b) Non provision of proportionate interest expense of Rs 130.66 lacs on outstanding Foreign Currency Convertible Bonds and External Commercial Borrowing;
(c) Non provision of proportionate audit fees of Rs 14.96 lacs;
(d) Non provision of proportionate and leave encashment expenses of Rs 19.69 lacs;
(e) Unaccounted proportionate interest income of Rs 33.44 lacs on Fixed Deposits placed with banks;
Based on the review procedures carried out by the Auditors and according to the information and explanations given to the Company, the above observations, in so far as they relate to the quarter ended December 31, 2007, did not have a material impact on the results for the quarter ended December 31, 2007.
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