ISPAT INDUSTRIES LIMITED
            Regd. Office : Park Plaza, 71, Park Street, Kolkata - 700 016
 
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 3OTH SEPTEMBER, 2007
 
                    (Rs. Crores)  
Sl No. Particulars Quarter ended       31st Dec Nine Months ended        31st Dec Quarter ended 30th Sept Half Year ended 30th Sept Year Ended 31st March Quarter Ended June
2006 2006 2007 2006 2007 2006 2007 2007
Unaudited  Unaudited  Unaudited  Unaudited  Unaudited  Unaudited  Audited  Unaudited 
                   
1 Sales/Income from Operations 2037.83 6012.19 2305.91 2087.75 4363.67 3974.36 8378.44 2057.76
  Less : Excise Duty 207.98 630.88 280.35 204.96 524.77 422.90 891.87 244.42
  Net Sales/Income from Operations 1829.85 5381.31 2025.56 1882.79 3838.90 3551.46 7486.57 1813.34
2 Other Income 52.40 72.60 23.13 8.46 69.05 20.20 108.92 45.92
                   
3 Total Income (1+2) 1882.25 5453.91 2048.69 1891.25 3907.95 3571.66 7595.49 1859.26
                   
4 Total Expenditure                
  a) (Increase)/Decrease in Stock in Trade and work in progress (85.06) (56.50) 48.44 10.78 (9.09) 28.56 (30.20) (57.53)
  b) Raw Materials  Consumed 944.28 2623.14 1055.82 905.00 2039.26 1678.86 3643.46 983.44
  c) Purchase of traded goods     6.40 0.00 7.29 0.00 58.58 0.89
  d) Power & Fuel Cost (Net) 357.77 984.85 320.80 300.86 626.76 627.08 1153.52 305.96
  e) Personnel Cost 42.36 119.50 49.18 40.99 96.87 77.14 165.34 47.69
  f) Depreciation     161.63 154.98 316.04 308.26 623.83 154.41
  g) Other Expenditure 241.91 706.28 232.05 227.59 476.75 464.37 986.72 244.70
  Total Expenditure (4a to 4g) 1501.26 4377.27 1874.32 1640.20 3553.88 3184.27 6601.25 1679.56
                   
                   
5 Interest & Finance Charges 195.12 742.00 99.34 245.29 264.48 546.88 990.87 165.14
                   
6 Exceptional items 465.31 465.31 0.00 0.00 0.00 0.00 0.00 0.00
                   
8 Deferred Revenue Expenditure Written off                        -                       -               -  
                   
                   
10 Exceptional Items (Net)                        -                       -               -  
                   
6 Profit/(Loss) before Tax (3-4-5) (279.44) (130.67) 75.03 5.76 89.59 (159.49) 3.37 14.56
                   
7 Tax Expense              
   - Current Tax           -             -                  -                    -                    -                     -              (0.03)           -  
   - Deferred Tax (Charge)/Credit (10.40) 41.14 (60.70) (2.86) (66.14) 51.54 (9.87) (5.44)
   - Fringe Benefit Tax (0.90) (2.12) (0.79) (0.58) (1.54) (1.22) (3.00) (0.75)
8 Net Profit/(Loss) for the period (6-7) (290.74) (91.65) 13.54 2.32 21.91 (109.17) (9.53) 8.37
                   
9 Paid-Up Equity Share Capital 1218.40 1218.40 1218.41 1218.40 1218.41 1218.40 1218.40 1218.40
  (Equity Share of Rs.10/- each)                
                   
10 Reserves excluding Revaluation Reserve as per Balance Sheet of Previous Accounting year             519.08  
                   
11 Earning Per Share                
  Basic and Diluted EPS (Not Annualised) (Rs) (0.02) (1.22) (0.05) (0.14) (0.14) (1.21) (0.81) (0.09)
  (b) Basic and Diluted EPS after Extraordinary items for the period, for the year to date and for the previous year (Not Annualised)                    (Rs)                
                   
                   
12 Aggregate of Public shareholding                
   - Number of shares 604120150 604120150 604120150 604238300 604120150 604238300 604120150 604120150
   - Percentage of shareholding 49.42 49.42 49.42 49.43 49.42 49.43 49.42 49.42
 
Notes:  
 
1 The Auditors in their audit report on the Company's Accounts for the year ended 31st March 2007 and limited review report for the quarter ended 30th June 2007, had expressed their inability to express any opinion on the accounting of Deferred Tax Asset (Rs 623.61 crores as on 31st March 2007 and Rs 618.17 crores as on 30th June 2007). However, based on the future profitability projections, the Company is virtually certain that there would be sufficient taxable income in the future, to claim the above tax credit.  
2. a) Consequent upon adoption of the Companies (Accounting Standards) Rules 2006, with effect from 1st April 2007, Exchange differences arising on restatement of foreign currency term loans relating to the acquisition of fixed assets, which in terms of Accounting Standard 11 on “The effects of changes in foreign exchange rates” were previously adjusted to the carrying values of the relevant fixed assets, have now been recognised in the Profit and Loss Account for the quarter ended 30th September, 2007. As a result, profit for the quarter ended 30th September 2007 is higher by    Rs 120.39 crores (including Rs 95.15 crores relating to the quarter ended 30th June 2007).  
Interest and Finance Charges for the quarter ended 30th September, 2007 is net of foreign exchange gain of Rs 149.23 crores on term loans (including Rs 120.39 crores as indicated above).  
 
    b)  
3 In view of the recent opinion of the Expert Advisory Committee of the Institute of Chartered Accountants of India, rent on certain equipments taken on lease by the Company, unlike in the past, has been accounted for on a straight line basis over the entire lease period, resulting into a lower charge by Rs 10.39 crores (Including Rs 8.66 crores for earlier periods)      
4 The company has identified Iron & Steel products as its sole operating segment and hence, no further disclosure is required under Accounting Standard 17.  
5 Previous period figures have been re-grouped / re-arranged wherever necessary.  
6 Basic and Diluted EPS as stated in Serial No.11 above, have been computed after considering the impact of proportionate arrear dividends on cumulative redeemable preference shares on the profit / loss for the respective periods in terms of Accounting Standard 20.  
7 At the beginning of the September 2007 quarter, there were no complaints from investors pending for disposal. During the quarter, 228 complaints were received and these were appropriately disposed off. Thus, there were no complaints from investors pending for disposal at the end of September 2007 quarter.  
8 The above financial results for the quarter ended 30th September 2007, subjected to a Limited Review by the Auditors of the Company, were reviewed by the Audit Committee and approved by the Board of Directors at their meetings held on 30th October 2007 and 31st October 2007 respectively.  
 
For and on behalf of the Board For and on behalf of the Board  
Place:  Mumbai           Anil Sureka  
Date: 31st October 2007                                                          Anil Sureka Executive Director (Finance)  
Executive Director (Finance)