JSW Steel clarifies on misleading report; shares still down

Stocks

oi-Sneha

By Sneha B K

Updated: Monday, July 9, 2012, 13:00 [IST]

JSW Steel has clarified on a misleading report of debt understatement, by Credit Suisse, which claimed that JSW Steel had under stated its fiscal year 2012 debt by around Rs 11,900 crore. Despite the clarification shares of JSW Steel slipped 2% today.

The stocks of the company were seen trading at Rs 704 lower by Rs 1.48 on BSE at 12.05 pm IST.

Responding to the report the company said that their ‘financial statements have been audited by reputed chartered accountants and adhere to the Indian GAAP principles'.

The classification of assets and liabilities in its financial statements is not only compliance with Indian Accounting Regulations but also consistent with the practice being followed by the company from last several years, the company said in the report.

Credit Suissie had also accused the company of losing Rs 1,200 crore due to the rupee depreciation, as it had not hedged its liabilities.

However, the the company while clarifying stated that the foreign currency liabilities were translated and reported according to the spot and forward exchange rates prevalent as on the date of closure of financial statements.

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