Mumbai, Jan. 13: The auditors of Maytas Infra Ltd — an infrastructure company promoted by the Ramalinga Raju family — had raised a red flag on accounting errors in the firm’s books as early as August last year.

Maytas Infra Ltd has two auditors — Krishna & Prasad in Hyderabad and S.R. Batliboi & Associates in Secunderabad.

In a limited review on Maytas pertaining to the quarter ended June 30, 2008, the two auditors had pointed out that the company had not provided for service tax liability on certain projects aggregating Rs 1.56 crore. This resulted in an overstatement of profit after tax by Rs 1.03 crore.

The audit firms also said the deferred tax charge had been computed incorrectly. Therefore, the profit figure was understated by Rs 1.19 crore. The net impact of these two errors was an understatement of profit after tax of Rs 16 lakh.

The errors are minor — but the auditors spotted them and listed them in the limited review that is filed every quarter with the bourses. In contrast, no such limited reviews were conducted by Price Waterhouse on Satyam’s results filed with the exchanges.

The Maytas auditors further said the management had agreed that these were done by oversight and would be rectified in the next reporting period.