Kaira Can Company 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 has recognized Insurance claim amounting to Rs 43,43,683, which is not in accordance with AS 9 on Revenue Recognition, for loss / damage of raw materials and finished goods during transit and remaining outstanding since the financial year ended March 31, 1991. The Company has filed the suit against the Insurance company in Mumbai High Court for the recovery of the said claim which is pending disposal by the High Court. The Auditors are unable to comment on the recoverability or otherwise of the said amount due from the Insurance Company.
2. The Company has not accounted for employee benefits as per AS 15 (Revised 2005) on Employee Benefits which becomes mandatory to the Company in respect of accounting period commencing on April 01, 2007 (amount unascertained).
3. The Company has not accounted / settled / translated Foreign currency transactions for the quarter and nine months ended December 31, 2007 in accordance with AS 11 on Accounting for the Effects of Changes in Foreign Exchange Rates (amount unascertained).
4. Excise Duty on Finished Goods lying in Bonded Warehouse as at period end has not been accounted though required by the Guidance Note on Accounting treatment for Excise Duty issued by the ICAI (amount unascertained). However, this has no impact on results for the quarter and nine months ended December 31, 2007.
5. The financial results do not disclose whether the qualifications in the limited review report of previous quarter has been resolved / unresolved.
1. The Company has recognized Insurance claim amounting to Rs 43,43,683, which is not in accordance with AS 9 on Revenue Recognition, for loss / damage of raw materials and finished goods during transit and remaining outstanding since the financial year ended March 31, 1991. The Company has filed the suit against the Insurance company in Mumbai High Court for the recovery of the said claim which is pending disposal by the High Court. The Auditors are unable to comment on the recoverability or otherwise of the said amount due from the Insurance Company.
2. The Company has not accounted for employee benefits as per AS 15 (Revised 2005) on Employee Benefits which becomes mandatory to the Company in respect of accounting period commencing on April 01, 2007 (amount unascertained).
3. The Company has not accounted / settled / translated Foreign currency transactions for the quarter and nine months ended December 31, 2007 in accordance with AS 11 on Accounting for the Effects of Changes in Foreign Exchange Rates (amount unascertained).
4. Excise Duty on Finished Goods lying in Bonded Warehouse as at period end has not been accounted though required by the Guidance Note on Accounting treatment for Excise Duty issued by the ICAI (amount unascertained). However, this has no impact on results for the quarter and nine months ended December 31, 2007.
5. The financial results do not disclose whether the qualifications in the limited review report of previous quarter has been resolved / unresolved.
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