Nachmo Knitex Ltd has informed that in the limited review report of the Company for the quarter ended September 30, 2007, the Auditors of the Company have made the following observations: "Management has informed the Auditors that the CDR Package given by Banks and Financial institutions is withdrawn.
The Company has not provided for unpaid Interest attending to Rs 70.12 lacs for the quarter and Rs 349.49 lacs aggregated upto September 30, 2007 on Secured Loans from Banks and Financial Institutions in terms of CDR package.
Further, additional liability due to withdrawal of CDR package of Rs 1923.87 lacs in respect of term loans from IDBI and working capital facilities from BOB has not been provided.
The additional liability due to withdrawal of CDR package in case of other lenders so unascertainable, hence not quantified. To that extent the account of loans and secured loans and understated.
Balances of some of the major sundry debtors are subject to confirmation and reconciliation. The ageing of debtors has deteriorated during the period relating doubts regarding recovery of the amounts, though management has informed that they are taking all kings of rigorous efforts. In view of this present provision of doubtful debts may not be adequate.
The accounts for the period have been prepared on going concern basis."
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