IG Petrochemicals 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:
Management has informed the Auditors that the Company has been, with effect from April 01, 2006, providing depreciation on plant and machinery based on the balance useful life of the assets as determined by approved valuer instead of providing depreciation at the minimum rates specified in Schedule XIV of the Companies Act, 1956. As a result, depreciation charge for the quarter is lower by Rs 220.26 lacs and accumulated depreciation lower charged as at December 31, 2007 is Rs 1,541.32 lacs. Had the impact of above been considered, the net profit before tax for the quarter would have been Rs 350.71 lacs instead of the reported net profit before tax of Rs 570.97 lacs.
Management has informed the Auditors that the Company has been, with effect from April 01, 2006, providing depreciation on plant and machinery based on the balance useful life of the assets as determined by approved valuer instead of providing depreciation at the minimum rates specified in Schedule XIV of the Companies Act, 1956. As a result, depreciation charge for the quarter is lower by Rs 220.26 lacs and accumulated depreciation lower charged as at December 31, 2007 is Rs 1,541.32 lacs. Had the impact of above been considered, the net profit before tax for the quarter would have been Rs 350.71 lacs instead of the reported net profit before tax of Rs 570.97 lacs.
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