Uniworth Textiles review for quarter ended Sep 30

01 Dec '07

3 min read

Uniworth Textiles 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. The company has been declared a Sick Industrial Company by an order dated September 05, 2006 of the Board for Industrial and Financial Reconstruction (BIFR) under the Sick Industrial Companies (Special Provision) Act 1985. The restructuring scheme of the Company is under preparation.

Further, some of the secured lenders have absolutely assigned & transferred to Assets Reconstruction Company of India Ltd (ARCIL), the facility granted by them together with all underlying security' interest thereto pursuant to the necessary provision of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.

2. Interest provision on borrowing from some of the Institutions and Bank has been made under simple interest method at the prevailing / estimated rates applicable on such loans in absence of relevant documents / confirmations. The impact of compound interest / penal charges wherever applicable could not be ascertained.

3. Investment include investment amounting to Rs 14.05 lacs and Sundry Debtors/Loans & Advances include to Rs 207.31 lacs receivable from the companies which have become sick and referred to BIFR under the Sick Industrial Companies (Special Provisions) Act, 1985. In the absence of rehabilitation scheme of these companies, amount of provision, if any, required has not been ascertained at this stage.

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