Indokem - Limited Review for the quarter ended Dec 31, 2007
Indokem Ltd has informed BSE 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. In view of the deferred tax assets in the form of carry forward losses and depreciation etc; and in line with the Accounting Standard (AS) 22, ‘Accounting for Taxes on Income’ issued by the Council of the Institute of Chartered Accountants of India, no provision has been made for deferred tax assets / liability. The same shall be reviewed at the year end.
2. No provision has been made for diminution in the Value in Investments in Subsidiaries amounting to Rs 1054.64 lacs and for possible irrecoverability of Advances amounting to Rs 405.91 lacs given to them.
3. In respect of loans from debenture holders, financial institutions and banks, wherever One Time Settlement is concluded or under negotiation, the Company has accounted in accordance with OTS and in the opinion of the management existing provisions for such liability in the books of accounts is adequate and reasonable.
4. For reporting of Segment Results, Recovery of Operational and Finance Overheads by the Manufacturing Division from Trading Division has been accepted as certified by the Management and is considered on memoranda basis only. As such, the Auditors are unable to express their opinion on segmental results.
5. Balances under Loans, Debtors, Advances and Creditors are subject to Confirmation and Reconciliation and adjustments if any upon reconciliation shall be accounted at the year end. Income from write backs of old balances of Sundry Creditors etc. is accepted as certified by the management.
6. Inventories of the Finished / Semi-Finished Goods have been valued at the rates as per last audited financial results.“
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