ADVERSE AUDIT REPORT

CMA Sameer Epari (CA Final Student) (409 Points)

18 February 2011  
An Enclosed Adverse Audit Report has been issued by an Auditor on Madras Fertilizers Limited for the A.Y.2007-08.
 
Facts:
 
1. The Company has Shown "Pending Disputes In Madras High Court" as "Claims Recoverable" in Balance Sheet instead of Contigent Assets
 
2. The Company has NOT Compiled with "ACCOUNTING STANDARD-2" in Valution of Inventories
 
3. The Company's accounts should NOT have been compiled on "GOING CONERN" basis.
 
Pls go Through this Auditor Report for your references.