JSW Steel 'strongly objects' to Credit Suisse report

In a press release released late Friday evening, the mining company said that the statements released were ‘misleading’, and that they ‘strongly object to these statements.’

In a report, Credit Suisse alleged that the company had under-reported net debt of around Rs 16,600 crore, while the overall debt actually comes up to around Rs 28,500 crore.

JSW Steel, however, says that their financial statements are in accordance with Indian GAAP and that they have been audited by a reputed firm of Chartered Accountants.

The company further said that its present balance sheet for FY12 is conformity with revised Schedule VI of Companies Act, 1956, and that the classification of assets and liabilities is in compliance with Indian Accounting Regulations.

One of Credit Suisse’s allegations was that JSW Steel had recorded acceptances under accounts payable instead of net debt.

The brokerage has maintained a target price at around Rs 465 per share. The stock today fell 1%, or Rs 7.25 per share, to Rs 715 per share.