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| Exchange Disseminated Time | Enkei Castalloy 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. As evident from Note 4 to the accompanying Statement, Income tax provision - current,
for the quarter ended December 31, 2007 is on an estimate basis. Further, the Company has neither determined nor provided for deferred tax liability for the quarter ended December 31, 2007. The effect of short / excess provision of taxes, if any, has not been determined by the Company, which believes it to be not material.
2. In the accompanying statement of results for the quarter ended December 31, 2007, the Company has not recognized short-term employee benefits such as, leave entitlements
and post-employment benefits such as gratuity as per valuation methods prescribed
under Accounting Standard (AS)-15 (revised 2005)-"Employee Benefits". The effect of short / non-provision has not been determined by the Company, which believes it to be not material.
3. Depreciation provision for the quarter under review is a pro-rata amount of the estimated annual provision for the year ended March 31, 2008. The amount of depreciation based on actual capitalization of assets till December 31, 2007 has remained to be ascertained by the Company.
4. The Company has worked out a sum of Rs 69.24 lakhs, towards an excess depreciation
charged in the earlier years till the year ended March 31, 2007. The excess depreciation, charged earlier has been written back in the quarter under review. Depreciation provision
reported in the attached statement of results is thus net of write-back of excess provision of Rs 69.24 lakhs. The profit reported in the statement is higher to the extent.
5. The Company values some items of semi-finished goods at cost. However, there are items having no uniform size and length, the actual cost of such items is reckoned as a percentage of selling price, based on an estimated profit margin. The Company has not determined the effect on the profit and loss of valuation method being used for selected items of inventory which believes it to be not material." |
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