Tata Steel, on Monday, said it expected non-cash write-down of goodwill and assets of around $1.60 billion due to poor macroeconomic condition in Europe, among others.
“...the company expects non-cash write-down of goodwill and assets in the consolidated financial statements for the year ended March 31, 2013, of around $1.60 billion,” it said in a statement.
The impairment, it said, was primarily due to a weaker macro-economic and market environment in Europe where apparent steel demand had fallen significantly in 2012-13 by almost 8 per cent “which in aggregate results in almost 30 per cent since the emergence of the global financial crisis in 2007.’’
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“The above underlying condition is expected to continue over the near and medium term, and has led to the downward revision of cash flow expectations underlying the valuation of the European business,” it said.