Jalpac India - Limited Review for the quarter ended Sep 30, 2007

Jalpac India 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:

"1. Attention is invited to Note no 14 of Schedule 19A of Audited Accounts for the year ended March 31, 2007 regarding preparation of accounts of the company on a going concern basis for the reason as stated in said note. However, it's accumulated losses is in excess of net worth of the Company and the Company has become sick industrial Company within the meaning of section 3(1)(o) of the Sick Industrial Companies (Special Provision) Act, 1985 (declared sick by Hon'ble BIFR's order dated September 05, 2006).

2. a) Attention is drawn to Note no 3(a) of results for quarter ended September 30, 2007 regarding non-provision against custom duty saved amounting to Rs 275.43 lacs on import of materials consumed under advance license scheme on imported raw material consumed, pending fulfillment of export obligation.

(b) Internal Control procedures w.r.t. purchase of material and sale of goods needs to be further strengthened to make them commensurate with the size & nature of business of the company.

3. Attention is invited to following points :

A.
(a) Non-provision for shortfall in recovery against certain debtors and loans & advances for which recovery action has been initiated (amount unascertained) [Note No. 3(b) of results for quarter ended September 30, 2007]

(b) Non reconciliation / confirmation of balance of certain debtors, creditors, secured loans, loans & advances and advances from customers, impact where of cannot be commented [Note no. 3(c) of results for quarter ended September 30, 2007].

(c) Non-provision of losses on account of impairment on assets (amount unascertained) for assets in use and in the absence of supportive audit evidence our inability to comment thereon [Note no 3(d) of results for quarter ended September 30, 2007).

(d) As stated in Note no. 3(e) of results for quarter ended September 30, 2007 regarding the non-provision of interest of Rs 359.19 lacs and penal interest etc. (amount unascertainable) for the reason stated in the said note.

B. Non deposit / payment on due date of certain statutory dues (including, provident fund and employees state insurance amounting to Rs 7.18 lacs and T.D.S and others amounting to Rs 7.52 lacs)."