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Tesco shares closed the day 6.5% down after the firm announced that profits have overstated by £263 million. This is up from an initial estimate last month of 250 million pounds. The figures were released along with the results for the first half of the fiscal year. They showed underlying profits slumped to 783 millions Pounds, down almost 47% on the previous year, and the reason behind this was the continuous fall of the sales. Tesco also announced that Chairman Sir Richard Broadbent will be leaving as the hoping that chief executive Dave Lewis announced could not meet the targets of the organizations, and this was a greatly disappointing. Tesco says, the payments of its severance, widely reported to be worth 10 million pounds, will be delayed until the FCA completes its investigation into the overstated profits.

Investestigations made by the Accountancy firm Dellloite have revealed that Tesco’s profits were misreported, and thewrong figures were presented. According to the reports, profits are overstated by 118 million pounds in the first half of the year by 70 million pounds in 2013-14 financial year and 75 million before that. Tesco had been doing deals with suppliers over promotions, which is common place for the super Markets, but it appears that Tesco had been booking returns from those promotions too early, whereas nearly back the costs. Tesco also confirmed that, there is no personal gain from the misstatement made by the officials. Delloitte’s reports are being passed to the financial conduct authority and the other regulators.