UN-AUDITED FINANCIAL RESULTS (PROVISIONAL) FOR THE
2ND QUARTER /HALF-YEAR ENDED 30TH SEPTEMBER, 2002
    (Rs. Crores)
SL.
No.
Particulars
Quarter ended Sept. 30,
Half Year ended Sept. 30,
Year ended March 31, 2002
    2002 2001 2002 2001 (Audited)
 
1 Sales/Income from Operations
Less: Excise Duty
788.59
501.95
1429.26
998.50
2084.52
78.50
50.72
153.59
117.31
247.26
0.00
0.00
0.00
0.00
0.00
2 Other Income
7.66
4.04
12.68
9.11
22.24
 
3 Total Expenditure          
a)(Increase) / Decrease in Stock in Trade
(23.22)
43.27
(35.90)
(15.40)
12.98
b)Materials Consumed
282.78
175.38
532.00
276.75
707.89
c)Purchase of Finished Goods
17.33
16.72
26.37
33.25
60.83
d)Power & Fuel Cost
87.47
83.60
158.41
211.58
331.51
e)Personnel Cost
13.21
10.47
25.81
22.08
39.89
f)Other Expenditure
146.41
89.20
261.80
180.92
410.15
 
4 Interest & Finance Charges
93.45
87.00
185.00
167.24
366.93
 
5 Depreciation
57.06
59.45
118.27
120.31
244.83
 
6 Deferred Revenue Expenditure written off
3.95
6.76
12.12
15.78
32.33
 
7 Loss before Extra Ordinary items (1+2-3-4-5-6)
539.54
371.33
991.71
715.47
1528.03
8 Project Prospecting Expenses written off
          -  
          -  
          -  
          -  
62.96
 
9 Loss beforeTax  (7+8)
0.00
0.00
0.00
0.00
0.00
 
10
Provision for Taxation (Net)
-  Current
-  Deferred
       
   -         (2.27)
         
-   
-  
         
-  
(32.92)

        
-
-
     
(1.90)   (204.40)
 
11 Net Loss (9-10)
0.00
176.70
0.00
284.76
204.40
 
12 Paid-Up Equity Share Capital
(Equity Share of Rs.10/- each)
685.76
685.76
685.76
685.76
685.76
 
 
13 Reserves excluding Revaluation Reserve
          -  
          -  
          -  
          -  
          -  
 
14 Basic and Diluted EPS for the period, for the yearto date & for the previous year
      (0.64)
      (2.58)
      (1.48)
      (4.15)
(6.95)
         
 
15

Aggregate of Non promoter shareholding
-No. of shares
-Percentage of shareholding

315238654
45.52

319978636
46.20

315238654
45.52

319978636
46.20

315487804
45.55
NOTE :
 
1) Second phase of the Hot Strip Mill project is under construction.
2(a)The company has provided interest on term loans based on the financial restructuring scheme as approved by IFCI Ltd., the lead Financial Institution, only to the extent sanction letters have been received by the company. However, in certain cases, necessary agreements in this regard are yet to be executed.
(b)In terms of the financial restructuring scheme, the Equity Share capital of the Company would be reduced by 50% and 0.0001% Cumulative Redeemable Preference Shares will be issued for the amounts so reduced, as approved by the Shareholders but pending approval from the Hon'ble Calcutta High Court. Further, the said scheme, inter alia, envisages conversion of term loans aggregating to Rs.510 crores into equity/preference share capital after reduction of the equity capital as mentioned above. Sanction letters in respect of such conversion of loans to the extent of Rs.384.50 crores have already been received by the Company and as such interest thereon has not been provided.
 
3) Deferred tax assets of Rs. 223.12 crores (including Rs.32.92 crores for the half-year ended 30th September, 2002) has been recognised in the accounts since the management feels that there is a virtual certainty of claiming these benefits against future taxable income.
 
4(a)The auditors in their report on the Company’s Accounts for the year ended 31st March, 2002 had commented about their inability to ascertain the impact of loss, if any, arising out of non-recovery of certain inter- corporate  deposits, loans, advances, etc. as well as decline in the value of certain quoted/unquoted investments based on their market/break-up  values.  The Management feels that these loans, advances, etc. are recoverable, while adequate provision of Rs.25.21 crores has been made during the period in respect of diminution in the value of investments.
(b)Certain facilities related to Hot Strip Mill are common to both phases of the project and the same are under trial operation due to non-stabilisation & non-fulfillment of guaranteed parameters.
(c)Remuneration paid to a former whole time director is in excess of Rs.1.66 crores (including Rs.0.44 crores for the half year ended 30th September, 2002) as against the limit approved by the Central Government, which has been grouped under Advances and necessary accounting adjustments/recovery in this regard shall be carried out after the disposal of the Company's representation pending with the Central Government.
(d)The detailed reconciliation of accounts with certain lenders is pending and necessary adjustments, if any, in this regard shall be carried out after final reconciliation.
 
5) The Company has identified the Iron & Steel products as its sole operating segment & hence, no further disclosure is required under Accounting Standard 17.
 
6) The EPS computation is in accordance with Accounting Standard 20 issued by the Institute of Chartered Accountants of India.
 
7) Previous period figures have been regrouped/ rearranged wherever necessary.
 
8) The above unaudited results were taken on record by the Board of Directors at its meeting held on 30th October, 2002.
 
9) The half yearly results have been reviewed by the statutory auditors as required under clause 41 of the listing Agreement.
 
Place :  Mumbai.
For  & on behalf of the Board
Anil Sureka
Dated :30th October, 2002
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Director (Finance) & Secretary