Western Ministil Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Dec 2018
Auditor and Management Disclosures and Notes for the quarterly results dated 31 Dec 2018
1. The above results were reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on 29-01-2019. Limited Review of the same has been carried out by the Statutory Auditors of the Company.
2. The Company has adopted Indian Accounting Standards (Ind AS) w.e.f. 1st April, 2017. The figures for the quarter ended 31st December, 2018 are also Ind AS compliant.
3. a.The Company owes an aggregate amount of Rs. 365.30 lakhs as on 31.12.2018 to its related party towards short term borrowings (inclusive of accrued interest of Rs. 226.61 lakhs provided upto 31.03.2001) which liability it is unable to discharge for obvious reasons of financial difficulties and lack of funds. It also includes Rs. 13.23 lakh payable to one of its director for the current period.
b. The Company has not made provision for interest on short term borrowing from a related party since April 1, 2001. As a consequence, loss for the quarter is understated by Rs. 2.87 lakhs and accumulated losses under Other Equity and Other Current Financial Liabilities are understated by Rs. 203.54 Lakhs (understated by Rs. 200.67 lakhs as at September 30, 2018).
c.The management has prepared the financial statements on a going concern basis, inspite of the fact that the Company is facing financial difficulties and accumulated losses of the Company as at the Balance Sheet date exceeds its paid up share capital and free reserves, indicating uncertainty that casts significant doubt on the Company’s ability to continue as a going concern. As a consequence, resultant impact on assets, liabilities and loss for the quarter is not ascertainable.
4. The Company had only one segment while it was in operation. However, after closure of the plant in 1995 no manufacturing activity has been carried out.