Auditors flag ‘material uncertainty’ of Tata Steel Europe

New Delhi

In the January-March quarter, Tata Steel Europe, however, reported nearly Rs 65 cr operating profit. The auditors, in their notes for the Q4 earnings, said Tata Steel Europe (TSE), a subsidiary of Tata Steel, had assessed the potential impact of the downturn in steel demand due to the Covid-19 pandemic on its future business outlook. As the severity and length of the downturn in steel demand on account of the pandemic remained unpredictable, the TSE directors said, “there exists a material uncertainty surrounding the impact of the Covid-19 pandemic on its financial situation.” There is a reasonable expectation TSE has the resources to continue operating for the foreseeable future and the going concern basis for the preparation of its financial statements remained appropriate, they said.