By Himanshu V. Kishnadwala
Chartered Accountant
fiogf49gjkf0d
Assam Company India Ltd. (31-12-2010)
From Notes to Accounts
Sundry Debtors include an overdue above one year of Rs.2,777.64 lacs, which in the opinion of the management is good and recoverable.
From Auditors’ Report
We draw your attention to Note no. 30 on Schedule no. 13, regarding overdue amounts, aggregating to Rs.2,777.64 lacs at the year-end, due from certain customers which, according to the Management, are recoverable. However, the Management could not provide sufficient and appropriate evidence as to the realisability of the aforesaid overdue amount for our examination and we are unable to concur with the Management’s assertion in this respect that adequate consideration has been given to the concept of prudence set out in Accounting Standard 1 — Disclosure of Accounting Policies. The amount of overdue debts that may be required to be provided for, and impact thereof on the reported profit before tax for the year, debtors’ balance and Reserves and Surplus balance at the year-end, could not be determined.
Further to our comments in the annexure referred to the paragraph 3 above, we report that:
(a) Except for the matter referred to in paragraph 4 above, we have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purposes of our audit;
(b) In our opinion, except for the indeterminate effects of the matter referred to in paragraph 4 above, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;
(c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account;
(d) In our opinion, except for the matter referred to in paragraph 4 above, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Act;
(e) On the basis of written representations received from the directors, as on 31st December, 2010 and taken on record by the Board of Directors, none of the directors is disqualified as on 31st December, 2010 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Act;
(f) In our opinion and to the best of our information and according to the explanations given to us, the financial statements, together with the notes thereon and attached thereto, give, in the prescribed manner, the information required by the Act, and, except for the indeterminate effects of the matter referred to in paragraph 4 above, give a true and fair view in conformity with the accounting principles generally excepted in India:
From Directors’ Report
Auditors’ observations
The remarks in the Auditors’ Report are already explained in the Notes to the Accounts and as such, does not call for any further explanation or elucidation.
The Board, however, deliberated at length with the Statutory Auditors suggestion to provide for export realisation amount which is overdue. Taking into account the 18 years-long association with the Debtors, their track record of making full payment of export dues in the past and considering their request to grant them further time to pay overdue amount the Board thought it prudent not to provide in these Accounts.
Non-Consolidation of Employee Welfare Trust while preparing CFS
Network 18 Media & Investments Ltd. (CFS) (31-3-2011)
From Notes to Accounts
The financials of Network 18 Group Senior Professionals Welfare Trust, a trust formed for the welfare of past and present employees (including directors) of the Company and its subsidiaries have not been consolidated since, as per the management, it is not likely that any economic benefit will flow to the group from that Trust.
From Auditors’
Report Attention is drawn to:
(a) Note 1(C) of Schedule 17 to the financial statements regarding the non-consolidation of Network 18 Group Senior Professionals Welfare Trust as the management does not expect any economic benefit will flow to the group from that Trust.
