S R Batliboi, the auditors of Whirlpool of India have made a qualification in

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the financial results for the quarter ended June, which if acted upon by the company would have resulted in a loss of Rs 3.20 crore instead of a profit of Rs 46.23 crore shown.

In a limited review report of the unaudited results, the auditors, an Indian affiliate of Ernst and Young, have observed the company has accounted for deferred tax asset of Rs 49.43 crore up to June 30.

Attempts to contact Whirlpool for comments were not successful. Whirlpool India is a subsidiary of global consumer durable giant Whirlpool Corp.

The company has informed the Bombay Stock Exchange (BSE) about the audit review.

The review quoted the company as saying it is confident that the subsequent realisation of the deferred tax asset created till June 30 is virtually certain in the near future based on existing business model and future plans of the company.

The accounting firm, however, differed with the company saying, “This basis is not in line with the requirements of Accounting Standard 22 issued by the Institute of Chartered Accountants of India to determine virtual certainty. This has caused us to qualify our audit opinion on the financial statements for the year ended March 31 also.”

The auditors have stated that had the observation been taken into account, the net loss for the quarter ended June 30 would have been Rs 3.20 crore against the reported profit of Rs 46.23 crore.

In its quarterly results, the company had taken note of the auditor’s qualification without comment.

The company’s net sales in the first quarter were Rs 605 crore.

Accounting Standard 22 pertains to tax treatment of depreciable assets.