Vishal Retail denies cooking books: blames printing mistakes

Debt-ridden Vishal Retail today denied fudging accounts, blaming it on printing errors by auditors, and said the firm will soon complete its corporate debt restructuring (CDR) exercise.

Reacting to a media report that the company inflated profits and under-reported losses during the nine-months ended December 2008, Vishal Retail Chairman Ram Chandra Agarwal told PTI it was all misinterpretation.

"It is a printing mistake by the auditors. They are making the changes. The report by the auditors has been misinterpreted," Agarwal said.

A media account, quoting a limited review report by the firm's auditor Haribhakti and Company has said the retailer stated a net profit of Rs 48.93 crore instead of Rs 20.24 crore for the nine months ended December 2008.

The report also said the retailer under-reported losses for the year ended March 31, 2009 at Rs 88.94 crore instead of Rs 94.49 crore.

Denying the allegations in the report Agarwal said, "Such misinformation has been spread by people who have vested interests and do not want the company to come out of crisis."

Officials of Haribhakti and Co could not be reached for comments.

Vishal Retail has recently inducted a strategic investor into the company to help it emerge from a Rs 735-crore debt pit. It has announced that the exercise would be completed by March 26.

"Our CDR process is on track. It will be over by the stipulated time," said Agarwal, who had earlier this month said a formal announcement on the completion of its CDR will be made on March 26.

He also denied allegations in the report that the firm's bankers have demanded for a forensic audit of the company and have threatened to take the matter to the Company Law Board (CLB).

"The bankers are very much in confidence with us. The CDR is almost through. Only certain formalities are left," Agarwal said.

The banks, part of the CDR cell, include the State Bank of India, Bank of India, ING Vysya, UCO Bank, HDFC Bank and HSBC.