By Himanshu V. Kishnadwala | Chartered Accountant
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Section A : Disclosures on Clause 21 of CARO, 2003 regarding
fraud noticed or reported on or by the company during the year
6. TRF Ltd. (31-3-2010)
From Auditor’s Report :
To the best of our knowledge and according to the information
and explanations given to us, no material fraud on or by the Company has been
noticed during the year except for the misstatement in the financial reporting
having a net effect of Rs.239.90 lacks as disclosed in Note (xiii) on Schedule
19 which was perpetrated on the Company.
Note (xiii) on Schedule 19 :
Certain contract costs recorded without underlying
transactions in earlier years were noted during years ended March 31, 2010 and
March 31, 2009. Management has now initiated an investigation into the matter as
well as payments made thereagainst, if any. Pending completion of investigation,
such wrong costs and consequential revenues recorded in the earlier years have
been reversed in the current year and the previous year to the extent identified
by management as summarised below :
Profit & Loss Account :
|
Prior period
items
|
31-3-2010
|
31-3-2009
|
|
|
Rs. in lakhs
|
Rs. in lakhs
|
Sales & services erroneously
recognised in previous year, reversed
|
1,149.56
|
4,615.08
|
Corresponding adjustment/reversal in
|
|
|
— Raw material and components
|
60.96
|
843.88
|
— Payments to sub-contractors
|
712.00
|
—
|
|
— Contracts in
progress
|
136.69
|
2,439.42
|
|
(Net)
|
(239.91)
|
(1,331.78)
|
