McNally Bharat Engineering 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. Attention is drawn to the following:
(i) Adjustment for deferred taxation as per requirements of Accounting Standard - 22 on Accounting for Taxes on Income issued by the Institute of Chartered Accountants of India has not been considered in the referred statement of Unaudited Financial Results for the quarter ended December 31, 2007.
(ii) In view of the prolonged non-conclusive status of the power project set up by Jayamkondam Lignite Power Corporation Ltd (JLPC) in which the Company was a Co-promoter, the Auditors are unable to comment on the recoverability of the investment amount due from JLPC amounting to Rs 1,08,06,995.
(iii) The impact of the Accounting Standard (AS) 15 (revised) on Employee Benefits issued by the Institute of Chartered Accountants of India which has become applicable with effect from April 01, 2007, if any, on certain accrued employee cost, is yet to be ascertained and accounted for.
The consequential impact of the above on the profit for the quarter ended December 31, 2007 is not ascertainable.
2. In the absence of relevant information, the Auditor unable to comment on the views expressed by management in their Note No.12 to the Unaudited Financial Results for the Quarter Ended December 31, 2007 stating that the Project business is subject to quarter to quarter variations and one quarters performance in isolation does not necessarily indicate full years performance.
1. Attention is drawn to the following:
(i) Adjustment for deferred taxation as per requirements of Accounting Standard - 22 on Accounting for Taxes on Income issued by the Institute of Chartered Accountants of India has not been considered in the referred statement of Unaudited Financial Results for the quarter ended December 31, 2007.
(ii) In view of the prolonged non-conclusive status of the power project set up by Jayamkondam Lignite Power Corporation Ltd (JLPC) in which the Company was a Co-promoter, the Auditors are unable to comment on the recoverability of the investment amount due from JLPC amounting to Rs 1,08,06,995.
(iii) The impact of the Accounting Standard (AS) 15 (revised) on Employee Benefits issued by the Institute of Chartered Accountants of India which has become applicable with effect from April 01, 2007, if any, on certain accrued employee cost, is yet to be ascertained and accounted for.
The consequential impact of the above on the profit for the quarter ended December 31, 2007 is not ascertainable.
2. In the absence of relevant information, the Auditor unable to comment on the views expressed by management in their Note No.12 to the Unaudited Financial Results for the Quarter Ended December 31, 2007 stating that the Project business is subject to quarter to quarter variations and one quarters performance in isolation does not necessarily indicate full years performance.
No comments:
Post a Comment