Unaudited  Financial Results for the Quarter ended 30th June, 2004
Rs / Million
   
Quarter ended
Financiayear endedl
S.no Particulars
30.06.2004
30.06.2003
31st March 2004
   
 Unaudited
 
(Audited)
1 Sales/ Income from operations
57796.70
49093.30
248773.10
2 Less : Excise Duty
5088.00
6565.10
28816.60
   
52708.70
42528.20
219956.50
3 Other Income
561.70
258.50
1354.00
  Total Income
53270.40
42786.70
221310.50
4 Total Expenditure
 
 
 
  a) Increase(-)/Decrease in stock in trade
-5483.00
-2781.40
4858.40
  b) Consumption of Raw Materials
18778.70
15488.30
62870.20
  c) Staff cost
8706.20
8476.40
47581.80
  d) Consumption of stores & spares
4101.30
3912.70
16778.90
  e) Power & Fuel
5234.60
5339.10
21588.60
  f) Other Expenditure
5222.00
4356.60
21130.30
  Total Expenditure
36559.80
34791.70
174808.20
5 Profit before Depreciation , Interest & Tax
16710.60
7995.00
46502.30
6 Interest
1868.30
2631.80
8994.30
7 Depreciation
2789.40
2816.30
11225.90
8 Profit before tax ( 5-6-7 )
12052.90
2546.90
26282.10
9 Provision for Current taxation
937.00
0.00
1184.70
10 Income Tax for earlier years
0.00
0.00
-23.40
11 Net Profit
11115.90
2546.90
25120.80
12 Paid up Equity Share Capital
41304.00
41304.00
41304.00
  ( Face value : Rs. 10 per share )
13 Reserves (excluding revaluation reserve ) & surplus
9072.7
14 Basic and Diluted Earning per share
2.69
0.62
6.08
  ( Not Annualised )  ( Rs. )
15 Aggregate of non-promoters Share holding
  -  Number of shares
58,57,10,260
58,57,10,260
58,57,10,260
  -  Percentage of share holding
14.18
14.18
14.18
Note :

i) The above results for the Quarter ended 30th June, 2004 were taken on record at the Board of Directors’ meeting held on 29th July, 2004.

ii) Accounting treatment given to Statutory Auditors’ comments in their report on the accounts for the year 2003-04 is as under:

- The Company has equity investments of Rs.3749.40 million and loans, advances and other recoverable dues of Rs.1811.10 million in its subsidiary company, the Indian Iron & Steel Co. Ltd. (IISCO), whose revival plan has been approved by the Board for Industrial and Financial Reconstruction (BIFR) and is under implementation. Some of the reliefs under the revival plan have been availed of by IISCO. As a result and due to improved steel market conditions, IISCO has earned profit during financial year 2003-04. In view of the above and also considering the long-term nature of these investments, no provision is called for in the accounts. The Company Auditors have observed that decline/shortfall in value of equity investments and recovery of loans and other dues is not ascertainable.

- The Joint Plant Committee has conveyed the Steel Development Fund (SDF) Managing Committee’s ‘in principle’ approval for linking the interest rates on SDF loans with the RBI Bank rate with effect from 1st April 1998. Pending finalisation of the modalities/clarifications, the benefits thereof have not been considered. The Company Auditors’ have observed that impact on the company’s profit arising out of lowering of interest has not been ascertained and accounted for.

iii) In the accounts of the Ist quarter of 2003-04, in order to comply with Accounting Standard - 26 on “Intangible Assets” issued by the Institute of Chartered Accountants of India (ICAI), the amount lying under the head “Miscellaneous Expenditure (to the extent not written off or adjusted)” was adjusted against the accumulated losses in the Profit and Loss account as on 1st April 2003 and the expenditure of VRS payments, removal of overburden at mines etc., incurred during the quarter, was charged to revenue. In March, 2004, the ICAI revised Accounting Standard AS-26 to exclude VRS expenditure from the scope of the Standard. As a result of this change, the earlier practice of amortisation of VRS expenditure was reinstated in the 4th quarter of 2003-04. Had the change been implemented in the accounts of the Ist quarter of 2003-04, the profit before tax for that quarter would have been lower by Rs.592.80 million .

iv) An amount of Rs. 937.0 million has been provided as minimum tax on book profits under section 115JB of the Income Tax Act, 1961 for the current period.

v) The information on Investors’ complaints pursuant to clause 41 of the listing agreement for the quarter ended 30th June 2004 :
Opening Balance   Received during the quarter Resolved during the quarter Closing balance
2 - 2 -
On behalf of Board of Directors

Place : New Delhi


Date : July 29, 2004

( G.C Daga )


Director( Finance )