Indian Bank has informed that in the limited review report of the Bank for the quarter ended September 30, 2007, the Auditors of the Bank have made the following observations:
1. The Bank during the half-year has charged to Profit & Loss Account a sum of Rs 46 crore being the 1/10th of the total transitional liability of Rs 460 crore instead of adjusting the entire transitional liability against the opening balance of the Reserves as per revised Accounting Standard (AS 15) - Employee Benefits issued by the Institute of Chartered Accountants of India (ICAI), as a result of which, profits for the half-year ended September 30, 2007 are lower by Rs 46.00 crore.
2. The Bank has not recognized the deferred tax during the half-year in accordance with AS 22 - Accounting for Taxes on Income issued by ICAI, for the reasons stated in their Note No.6, forming part of the Review Report. The impact of the same in the financials is unascertainable.
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