DCM Shriram Industries - Limited Review for the quarter ended Dec 31, 2007
DCM Shriram Industries 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. The Auditors observation in their audit report dated July 30, 2007 on the accounts of the Company for the year ended March 31, 2007 which has not been resolved is summarized below:
There are various issues relating to sales tax, income-tax, interest etc. arisen / arising out of the reorganisation arrangement of the undivided DCM Ltd which will be settled and accounted for in terms of the Scheme of Arrangement of DCM Ltd as and when the liabilities / benefits are finally determined. The ultimate effect of these is not ascertainable at this stage. (refer note 5 of the accompanying statement)
2. (i) As per the policy followed by the Company for preparation of quarterly results, the sugar off-season expenditure amounting to Rs 17.51 crores for the nine months ended December 31, 2007 has been deferred for inclusion in the cost of sugar to be produced in remaining part of the financial year. Had the Company charged expenditure so incurred to the accounting period in which such expenses were incurred, the increase in stock in trade would have been higher by Rs 0.16 crores for the quarter ended December 31, 2007 and decrease in stock in trade would have been higher by Rs 17.51 cores for the nine months ended December 31, 2007 and loss after tax would have been lower by Rs 0.10 crore for the quarter ended December 31, 2007 and higher by Rs 11.56 crores for the nine months ended December 31, 2007.
(ii) Attention is invited to note 2 which sets out the position relating to State Advise Price (SAP) announced by the Uttar Pradesh Government for sugar season 2007-08. Pending final determination of revised SAP for this sugar season, the effect thereof on these results cannot be determined at this stage.”
Tags: DCM Shriram