Bit of dents to be seen in profit of cos after ICAI ruling
Published on Mon, Mar 31, 2008 at 09:51 | Source : CNBC-TV18
Updated at Mon, Mar 31, 2008 at 14:02
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Bit of dents to be seen in profit of cos after ICAI ruling
One will see quite a bit of dents in the bottomline in many of the companies and many of the midcap companies, I imagine would probably have a lot of scars to bear. So this is not a good thing on the margin it makes the markets nervous again going into this week straight, the possibility of profits being eroded because of the new ICAI ruling.
CNBC-TV18's Executive Editor, Udayan Mukherjee - I think the market will be quite nervous about the ICAI ruling because there was a feeling that some companies will defer it, till conditions improve in the stock market and then slowly sneak through one or two of the hits, which they have undertaken. But now the ICAI is saying that you guys have to provide for it in the current quarter as a couple of companies have done already to the detriment of the stock price that we have seen last week.
I suspect that you will see more skeletons tumbling out of the closet in this current quarter itself, now. Whether it happens in the month of April or it happens with the audited numbers in the June, is a matter of debate and discussion.
But I suspect you will see quite a bit of dents in the bottomline in many of the companies and many of the midcap companies, I imagine would probably have a lot of scars to bear. So this is not a good thing on the margin it makes the markets nervous again going into this week straight, the possibility of profits being eroded because of the new ICAI ruling.
Friday closed on a very promising note and that's the sad way that you saw participation, you saw the market defying inflation data and closing at a good level and you are hopeful that the market will now move up. This morning again the headwinds build up, inflation and the reaction to inflation from all quarters don't look very good. You have got ICAI and the possibility of corporate profits getting dented, global markets are somewhat on the softer side and all of this, will probably be just additional straws on the market's back in its way up. It can still move up but it will find just a little more difficult with each of these news flow items, which have come in.
CNBC-TV18's Executive Editor, Udayan Mukherjee - I think the market will be quite nervous about the ICAI ruling because there was a feeling that some companies will defer it, till conditions improve in the stock market and then slowly sneak through one or two of the hits, which they have undertaken. But now the ICAI is saying that you guys have to provide for it in the current quarter as a couple of companies have done already to the detriment of the stock price that we have seen last week. 
