Saturday, March 15, 2008

Jalpac India - Limited Review For The Quarter Ended Dec 31, 2007

Jalpac 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. Attention is invited to Note no. 14 of Schedule 19A of Audited Accounts for the year ended March 31, 2007 regarding preparations of accounts on going concern basis for the reason as stated in said note. However, its accumulated losses are in excess of the net worth of the Company and the Company has become sick industrial company within the meaning of section 3(1)(o) of the Sick Industrial Companies (Special Provision) Act, 1985 (declared sick by Honble BIFRs order dated September 05, 2006),

2. (a) Attention is drawn to Note No. 3(a) of statement regarding non-provision against customs duty saved, amounting to Rs 280.11 lacs (excluding interest, penalty amount unascertained) on import of materials consumed under advance license scheme on imported raw material consumed, pending fulfillment of export obligation.

2. (b) Internal Control procedures w.r.t. purchase of material and sale of goods needs to be further strengthened to make them commensurate with the size & nature of business of the Company.

3. Attention is invited to following points:

A

.(a) Non-provision for shortfall in recovery against certain debtors and loans & advances for which recovery action has been initiated (amount unascertained) [No. 3(b) of statement]

(b) As stated in Note no. 3(e) of accompanying statement regarding the non-provision of interest of Rs 448.33 lacs and penal interest etc. (amount unascertainable) for the reason stated in the said note.

B.

Non deposit / payment on due date of certain statutory dues (including provident fund and employees state insurance amounting to Rs 13.41 lacs and TDS and others amounting to Rs 13.79 lacs.

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