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| Exchange Disseminated Time | Saregama India 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. Attention is drawn to the following without qualifying Auditors Report :
(1) The Company has not disclosed the reasons for not resolving / steps taken, if any, against the qualifications in Auditors Limited Review Report of November 30, 2007 for the quarter & half year ended September 30, 2007 on non ascertainment / non accounting of additional and / or differential employee benefits which may arise on or after April 01, 2007 in keeping with the provisions of AS 15 (revised 2005) on 'Employee Benefits'.
(2) Net Sales [Sl No.1(a)] Other Income [Sl No.2], Total Income [Sl No.3], Employees Cost [Sl No.4(d)], Royalty [Sl No.4(g)], Other Expenditure [Sl No. 4(h)], Total [Sl No.4(i)], Profit from Ordinary Activities before tax [Sl No.7], Fringe Benefit Tax [Sl No.8(b)], Net Profit from Ordinary Activities after tax [Sl No.9], Net Profit for the period [Sl No.11], Reserves excluding Revaluation Reserve [Sl No.13], Basic and Diluted EPS before extraordinary items [Sl No.14(a)], and Basic and Diluted EPS after extraordinary items [Sl No.14(b)] against the column 'Year ended March 31, 2007 (Audited)' are to be read as Rs 9,162 lakhs, Rs 644 lakhs, Rs 13,729 lakhs, Rs 1,888 lakhs, Rs 2,794 lakhs, Rs 3,185 lakhs, Rs l2,059 lakhs, Rs l,610 lakhs, Rs 44 lakhs, Rs 1,384 lakhs, Rs l,384 lakhs, Rs 7,199 lakhs, Rs 9.43 and Rs 9.43 against Rs 9,170 lakhs, Rs 506 lakhs, Rs 13,599 lakhs, Rs 1,796 lakhs, Rs 2,818 lakhs, Rs 3,083 lakhs, Rs 11,889 lakhs, Rs l,650 lakhs, Rs 43 lakhs, Rs 1,425 lakhs, Rs 1,425 lakhs, Rs 7,280 lakhs, Rs 9.70 and Rs 9.70 respectively as Published.
(3) Based on the information and explanations provided by the Company's management, Capital employed (segment assets - segment liabilities) as March 03, 2007 of the Music and Films / TV Serials segments works out to Rs 8934 lakhs and Rs (337) lakhs against Rs (6541) lakhs and Rs 337 lakhs respectively as published.
(4) Paid-up Equity Share Capital [Sl. No.12], Basic and Diluted EPS before extraordinary items [Sl. No.14(a)] and Basic and Diluted EPS after extraordinary items [Sl. No.14(b)] against the column 'Three months Ended December 31, 2006 (unaudited)' are to be read as Rs 1468 lakhs, Rs 2.52 and Rs 2.52 against Rs 1467 lakhs, Rs 2.19 and Rs 2.19 respectively as published.
2. Auditors invite your attention to the following
(1) As explained by the Company, additional and / or differential employee benefits which may arise on or after April 01, 2007 in keeping with the provisions of Accounting Standard - 15 (revised 2005) on 'Employee Benefits' are yet to be ascertained / accounted for by the Company. Accordingly, Auditors are unable to comment on the impact, if any, on the Company's financial results for the quarter and nine months ended December 31, 2007.
(2) The Company has not disclosed the impact on the net results and earnings per share for the quarter and nine months ended December 31, 2007, had the fair value method been used to account for the stock options granted in the financial year 2006-07.
(3) Based on the information and explanations provided by the Company's management, consumption of raw materials for the quarter and nine months ended December 31, 2007 of Rs 1125 lakhs and Rs 3004 lakhs includes cost of production of films / television serials of Rs 469 lakhs and Rs 1254 lakhs respectively, which being of different nature should have been disclosed separately." |
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