September 08, 2008

Ispat Industries announces limited review for Q1 of 2007

Ispat Industries Limited has informed BSE that in the limited review report for the April to June 2007 quarter, its auditors have made the following observations

1. In terms of Accounting Standard 22, net deferred tax asset of INR 618.17 crores has been recognized in the accounts upto June 30th 2007, based on the future profitability projections made by the management. However, the auditors are unable to express any opinion on the above projections and their consequent impact, if any, on the recognition of such deferred tax asset.

2. The auditors had the impact of above item been considered, there would be a loss of INR 609.80 crores (including deferred tax asset of INR 623.61 crores accounted for upto March 31st 2007) as against the reported profit of INR 8.37 crores for April to June 2007 quarter.