Stock Market

Auditor raises concerns on recovery of ABG Shipyard’s receivables

Mar 22, 2017 04:48 PM IST | Source: CNBC-TV18

CNBC-TV18 learns from the report that there are several doubts on possibility of recovery of various advances and receivables given out by the company to the tune of Rs 1,762 crore.

GMJ & Co, independent auditor of ABG Shipyard, has raised concerns on recovery amounting to Rs 1,762 crore.

CNBC-TV18 learns from the report that there are several doubts on possibility of recovery of various advances and receivables given out by the company to the tune of Rs 1,762 crore. The company is yet to receive Rs 500 crore of subsidies from the government.

The report highlights the fact that the company has suffered losses consistently which has eroded the net worth. The report also suggests that advances of Rs 461 crore paid to suppliers are outstanding for a long period and no services have been received in return.

One other serious issue pointed out by the report is the fact that the company has not appointed an internal auditor as required by Sec 138 of Companies Act of 2013. The issues raised in the report may affect the company as it is in the process of finding suitors.