Punj Lloyd Ltd. (31-3-2012)
From Notes to Accounts The company’s branch at Libya has fixed assets (net) and current assets aggregating to Rs. 9,909,622 thousand as at March 31, 2011 in relation to certain projects being executed in that country. Due to civil and political disturbances and unrest in Libya, the work on all the projects has stopped, the resources have been demobilised and necessary intimation has been given to the customers. The company has also filed the details of the outstanding assets with the Ministry of External Affairs, Government of India. Pending the outcome of the uncertainty, the aforesaid amounts are being carried forward as realisable.
From Auditors’ Report 6. As stated in Note 19 of schedule ‘M’ to the financial statements, due to civil and political disturbances and unrest in Libya, the work on all the projects in Libya has stopped. There are aggregate assets of Rs.9,909,622 thousand, aggregate revenues of Rs.1,954,565 thousand, profits before tax of Rs.96,816 thousand and cash flows of Rs.1,803,620 thousand for the year then ended in Libya Branch, which have been audited by another auditor in Libya. However, we were unable to perform certain procedures that we considered necessary under the requirements of Statement on Auditing SA600 (Using the work of another auditor) issued by the Institute of Chartered Accountants of India, including obtaining corroborative information and/or audit evidence, in relation to certain components of financial statements of Libya Branch. The ultimate outcome of the above matters cannot presently be ascertained in view of the uncertainty as stated above. Accordingly, we are unable to comment on the consequential effects of the foregoing on the financial statements.
In our opinion, proper books of account as required by law have been kept by the company so far as appears from our examination of those books and proper returns adequate for the purposes of our audit have been received from branches and unincorporated joint ventures not visited by us except to the extent stated in paragraph 6 above. The branches and unincorporated joint ventures auditors’ reports have been forwarded to us and have been appropriately dealt with;
Without considering our observations in paragraph 6 above, the impact whereof on the Company’s profits is not presently ascertainable, in our opinion and on consideration of reports of other auditors on separate financial statements and on the other financial information and to the best of our information and according to the explanations given to us, the said accounts give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India . . . .
