Financial Daily from THE HINDU group of publications
Tuesday, Dec 03, 2002
Financial Daily from THE HINDU group of publications Tuesday, Dec 03, 2002 |
|
|
|
|
|
Corporate
-
Accounting Standards Auditors qualify accounts of Nagarjuna Fertilisers
C.R. Sukumar
HYDERABAD, Dec. 2 The statutory auditors of Nagarjuna Fertilisers and Chemicals Ltd (NFCL), have qualified the accounts for the fiscal year ended March 31, 2002. The first qualification pertains to valuation of investments and non-provisioning towards diminution in the value of investments. The second one is regarding ongoing review and the non-confirmation in respect of sundry debtors, loans and advances and other receivables and the consequent extent of realisability. The auditors, M. Bhaskara Rao & Company, have also pointed out that the company has been working to recognise income as in previous years without considering the notifications of the Union Government on final Retention Price Support (RPS). This is attributed to the directions issued by the Andhra Pradesh High Court, thereby making the matter sub-judice. In view of this, the auditors said they were "unable to express an opinion on the impact on the financial statements and profit for the year." Responding to the auditors' qualification on RPS, Mr V. Satish Kumar, NFCL Head (Management Services),said from early 2000, the Union Government was making recoveries out of the subsidy bills to adjust the possible downward revision of the prices with retrospective effect. "As a result, these debts are aging and became a cause for audit concerns. Details are given in Note 10 of the Notes forming part of the Accounts. Similarly, the delays in implementation of the Oil Refinery Project, Power Project etc., have been other causes of concern to the Audit (due to possible diminution in the value of investments). However, the company is putting in its best efforts and is hopeful of positive results in the very near future," Mr Kumar said. On the company's default in repayments to small depositors, Mr Kumar said, "The total public deposits outstanding as at March 31, 2002 were Rs 50 crore. During April-November, 2002, the company had paid nearly Rs 30 crore, bringing down the outstanding to Rs 20 crore. The company is planning to bring the balance outstanding amount to zero level by June 2003. The company is not accepting further deposits from the public."
Send this article to Friends by
E-Mail
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |
Copyright © 2002, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|