Ispat Industries - Limited Review For The Quarter Ended Dec 31, 2006

Ispat Industries Ltd has informed that in the limited review report of the Company for the quarter ended December 31, 2006, the Auditors of the Company have made the following observations:In terms of Accounting Standard 22, net deferred tax asset (DTA) of Rs 674.62 crores [including Rs 41.14 crore (after adjusting the reversal of Rs 10.40 crores for the quarter) for the nine months ended December 31, 2006] has been recognized in the accounts upto December 31, 2006, 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 consequential impact, if any, on the recognition of such deferred tax asset.Had the impact of above item been considered, there would be a loss of Rs 766.27 crores (including DTA of Rs 674.62 crores accounted for upto December 31, 2006) as against the reported loss of Rs 91.65 crores for the nine months ended December 31,2006.