Saturday, March 1, 2008

Hotel Rugby - Limited Review For The Quarter Ended Dec 31, 2007

Hotel Rugby 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 will further comply AS-28 on impairment of assets, if any, issued by the ICAI after the accounts are audited for the extended year end as on December 31, 2007.

2. The assets of the Companys hotel situated at Matheran has been sold under possession under Escrow arrangement with the lender bank and Companys financial are on the basis of going concern concept.

3. The deferred tax as required under AS-22 will be provided after the accounts are audited for the year end.

4. The Company has not complied the Revised AS-15 issued by ICAI and will comply at the year end at the time of finalization of accounts.

5. The Compliance relating to accounting standard 29 regarding disclosure on Provisions, Contingent Liabilities and Contingent Assets if way will be done at the year-end.

6. The benefit arising out of OTS (one time settlement) with banks in interest as well as in principle sums of Rs 14.45 crores are credited directly to Debt Restructuring Reserve in the Balance Sheet the legally of which is not year final and the Auditors are explained that Company is seeking a legal opinion on the same. Had the opinion been otherwise, the accounting effect will differ in the audited accounts for the year ended December 31, 2007.

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