Unaudited Financial Results for the Quarter / Half Year Ended 30th September, 2004 
Rs / Million
 
 
Quarter ended
 
 Half Year ended
 
Financial
S.no
Particulars
 
year ended
 
 
30.09.2004
30.09.2003
30.09.2004
30.09.2003
31st March 2004
 
 
   (Unaudited)
 
   (Unaudited)
 
(Audited)
1 Sales/ Income from operations
75590.20
58125.30
133386.90
107218.60
248773.10
2 Less : Excise Duty
8549.10
7412.10
13637.10
13977.20
28816.60
   
67041.10
50713.20
119749.80
93241.40
219956.50
3 Other Income
853.10
449.30
1414.80
707.80
1354.00
 
 Total Income
67894.20
51162.50
121164.60
93949.20
221310.50
 
 
 
 
 
 
 
4
Total Expenditure
 
 
 
 
 
 
 a) Increase(-)/Decrease in stock in trade
-870.60
335.70
-6353.60
-2445.70
4858.40
 
 b) Consumption of Raw Materials
21088.60
15528.00
39867.30
31016.30
62870.20
 
 c) Staff cost
10986.40
9853.70
19692.60
18330.10
47581.80
 
 d) Consumption of stores & spares
4554.50
4096.50
8655.80
8009.20
16778.90
 
 e) Power & Fuel
5495.60
5359.20
10730.20
10698.30
21588.60
 
 f) Other Expenditure
4782.90
5580.80
10004.90
9937.40
21130.30
 
 Total Expenditure
46037.40
40753.90
82597.20
75545.60
174808.20
5 Profit before Depreciation , Interest & Tax
21856.80
10408.60
38567.40
18403.60
46502.30
   
6 Interest
852.30
2400.00
2720.60
5031.80
8994.30
7 Depreciation
2773.10
2777.40
5562.50
5593.70
11225.90
8
 Profit/Loss (-) before tax ( 5-6-7 )
18231.40
5231.20
30284.30
7778.10
26282.10
9 Provision for Taxation
 
 Current tax
1439.00
25.10
2376.00
25.10
1184.70
 
 Deferred tax
1660.90
0.00
1660.90
0.00
0.00
 
 Income Tax of earlier years
0.00
154.50
0.00
154.50
-23.40
10
 Net Profit/Loss(-)
15131.50
5051.60
26247.40
7598.50
25120.80
11 Paid up Equity Share Capital
41304.00
41304.00
41304.00
41304.00
41304.00
  ( Face value : Rs. 10 per share )
12 Reserves (excluding revaluation reserve ) & surplus
9072.70
13 Basic and Diluted Earning per share
3.66
1.22
6.35
1.84
6.08
  ( Not Annualised ) ( Rs. )
14 Aggregate of non-promoters Share holding
  -  No. of shares
58,57,10,260
58,57,10,260
58,57,10,260
58,57,10,260
58,57,10,260
  -  Percentage of share holding
14.18
14.18
14.18
14.18
14.18

Notes:
i) The above results for the Quarter/Half Year ended 30th September, 2004 were taken on record at the Board of Directors’ meeting held on 29th October, 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 of Rs.1845.20 million in its subsidiary company, the Indian Iron & Steel Co. Ltd. (IISCO), whose revival plan, approved by the Board for Industrial and Financial Reconstruction (BIFR), 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 as well as in the current half year. 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 is not ascertainable.

- The Managing Committee of Steel Development Fund (SDF), during 2003-04, had approved linking of interest rate on loans taken from SDF with the RBI Bank rate resulting in lowering of the interest rate with retrospective effect. The benefits thereof were not considered, pending clarifications, which have been received in the current quarter. Accordingly, the Company has carried out the necessary adjustments, resulting in lower interest charges during the quarter by Rs.546.90 million.

iii) Consequent to amendment in Accounting Standard-26 on “Intangible Assets’ in March, 2004, the amortisation of expenditure on VRS payments was reinstated in the 4th quarter of 2003-04, which was charged to revenue in the accounts of April-September, 2003, as per AS-26 in vogue. Consequently, the profit before tax for the period April-September, 2003 was lower by Rs.475.70 million.

iv) As required by AS-28 on `Impairment of Assets’, the Company has provided, as per existing practice, for the loss in respect of assets, lying idle/not in use/scrapped. In respect of assets `in use’, the company is in the process of identifying `impaired assets’, if any and necessary adjustments thereof shall be carried out at the year-end.

v) The information on Investors’ complaints pursuant to clause 41 of the listing agreement for the quarter ended 30th September, 2004.
Opening Balance Received during the quarter Resolved during the quarter  Closing balance
  1 1  
On behalf of Board of Directors

Place : New Delhi


Date : July 29, 2004

( G.C Daga )


Director( Finance )