Gujarat Carbon - Limited Review for the quarter ended Dec 31, 2007
Gujarat Carbon & Industries Ltd 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 not carried out physical verification of stocks of raw materials, finished goods and stores and the same are stated at book value. Unservisability and deterioration of stocks of raw materials, finished goods and stores, etc; have not been considered for arriving at the value of closing stocks.
2. Rs 2,95,425 being dismantling and other related expenses, incurred in respect of machineries sold and recoverable from the buyer have been debited to the Profit & Loss Account during the quarter on payment basis against the total liability. As a result, the loss for the quarter is overstated to that extent.
3. The Company has not made provision for impairment losses in terms of Accounting Standard 28 ‘Impairment of Assets’ issued by the Institute of Chartered Accountants of India. The amount of such losses is not determined.
4. Interest of Rs 1,80,000 approximately receivable on Inter Corporate Deposits has not been accounted for in the Profit & Loss Account during the quarter. As a result, the loss for the quarter is overstated to that extent.
5. On account of the above comments, the loss for the quarter is overstated by Rs 4,75,425.”
Tags: Gujarat Carbon