Investor Relations
STATEMENT OF UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH JUNE 2014
Rs. in Crore
Sr. No. Particulars  
Quarter Ended Year Ended
30th June,2014 31st March,2014 30th June,2013 31st March, 2014
     Unaudited Refer Note No 9 Unaudited Audited
PART-I  
1 Gross Sales/ Income from Operations 623.43 633.25 623.44 2,563.10
  Less :  Inter Segment Transfers 199.54 206.52 208.66 880.27
  Inter Division Transfers 9.9 8.27 12.79 39.97
  Excise Duty 40.06 38.77 35.66 147.47
  (a) Net Sales/ Income from Operations 373.93 379.69 366.33 1,495.39
  (b) Other Operating Income 12.97 14.99 19.77 65.72
   
  Total Income from Operations (a+b) 386.90 394.68 386.10 1,561.11
   
2 Expenses
  (a) Consumption of Raw Materials 166.6 167.43 179.37 761.46
  (b) Purchases of stock-in-trade 0.51 0.38 0.26 1.78
  (c) Changes in inventories of finished goods, work-in-progress and stock-in-trade 39.67 50.62 (0.80) (16.13)
  (d) Employee benefits expense 31.86 31.4 29.56 123.75
  (e) Depreciation, Amortisation and Obsolescence 16.36 25.8 24.85 102.09
  (f) Other Expenses :        
  (i) Energy 76.16 74.85 76.53 319.19
  (ii)Other Direct Expenditure 46.44 60.21 55.76 257.15
  (iii) Other Expenditure 8.70 4.72 7.11 26.61
   
  Total Expenses 386.30 415.41 372.64 1,575.90
   
3 Profit / (Loss) from Operations before other income,finance costs 0.60 (20.73) 13.46 (14.79)
  and exceptional items (1-2)
4 Other Income 2.86 3.17 4.52 15.61
5 Profit / (Loss) from ordinary activities before finance costs and 3.46 (17.56) 17.98 0.82
  exceptional items ( 3+4)        
6 Finance Costs 52.22 50.33 39.67 183.53
7 Profit / (Loss) from ordinary activities after finance costs but before exceptional items ( 5-6) (48.76) (67.89) (21.69) (182.71)
8 Exceptional items        
  a) Foreign Exchange (Gain)/ Loss 7.15 34.55 7.06 67.52
  b) Excess Energy Cost - (1.06) - 14.60
  c) Others 1.97 (79.36) 4.18 (60.18)
9 Profit / (Loss) from ordinary activities before tax (7- 8) (57.88) (22.02) (32.93) (204.65)
           
10 Tax Expenses - - (11.79) (34.36)
11 Net Profit / (Loss) from ordinary activities after tax (9-10) (57.88) (22.02) (21.14) (170.29)
12 Extraordinary items - - - -
13 Net Profit / (Loss) for the period (11-12) (57.88) (22.02) (21.14) (170.29)
14 Paid-up Equity Share Capital (Face Value of Rs.5/- per share) 73.25 73.25 73.25 73.25
15 Reserves excluding Revaluation Reserves as per - - - 231.24
  Balance Sheet of previous accounting year.
16 Earnings per share before extraordinary items        
  Basic & Diluted Earnings per share of Rs.5/- each (Rs) ( not annualised) (3.95) (1.50) (1.44) (11.62)
17 Earnings per share after extraordinary items        
  Basic & Diluted Earnings per share of Rs.5/- each (Rs) ( not annualised) (3.95) (1.50) (1.44) (11.62)
   
PART-II  
A SELECT INFORMATION FOR THE QUARTER ENDED 30TH JUNE,2014.
  PARTICULARS OF SHAREHOLDING
1 Public Shareholding
  Number of Shares 69951572 69941572 70150712 69941572
  Percentage of Shareholding 47.75% 47.74% 47.87% 47.74%
2 Promoters and promoter group shareholding
  (a) Pledged / Encumbered        
  Number of Shares NIL NIL NIL NIL
  Percentage of Shares ( as a % of the total shareholding of promoter - - - -
  and promoter group )        
  Percentage of Shares ( as a % of the total share capital of the company ) - - - -
  (b) Non - Encumbered
  Number of Shares 76549811 76559811 76370671 76559811
  Percentage of Shares ( as a % of the total shareholding of promoter 100.00% 100.00% 100.00% 100.00%
  and promoter group )
  Percentage of Shares ( as a % of the total share capital of the company ) 52.25% 52.26% 52.13% 52.26%
B INVESTOR COMPLAINTS
  Pending at the beginning of the quarter NIL
  Received during the quarter 1
  Disposed of during the quarter 1
  Remaining unresolved at the end of the quarter NIL
   
 
   
  NOTES ON UN AUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30th JUNE, 2014
1 The Company had adopted the Hedge Accounting policy and principles set out in Accounting Standard (AS) 30 Financial Instruments: Recognition and Measurement. During the quarter ended 30th June, 2014, the Company has carried Exchange Loss of Rs 5.53 Crore to Hedge Reserve Account and charged Exchange Loss of Rs 11.80 Crore to Statement of Profit and Loss from Hedge Reserve Account. Balance in Hedge Reserve Accounts as on 30th June, 2014 is Rs. 14.46 Crore.
2 The Company has exercised the option as per Para 46 A inserted in the Accounting Standard ( AS-11) for treatment of exchange difference on long term monetary liabilities, other than covered under the Hedge accounting . Accordingly during the quarter ended 30th June, 2104, Exchange Gain capitalized is Rs. 0.85 Crore and Exchange Gain recognized in Foreign Currency Monetary Item Translation Difference Account (FCMITDA) is Rs. 0.003 Crore and Exchange Loss of Rs. 0.41 Crore transferred to Statement of Profit and Loss from FCMITDA. Balance in FCMITDA as on 30th June, 2014 is Rs. 9.37 Crore.
3 Based on the advice on treatment of Amalgamation Reserve created in terms of the Scheme of Arrangement, sanctioned by the Hon'ble High Court, Bombay, the Company has adjusted depreciation of Rs.1.11 Crore during current quarter ended 30th June, 2014 against the Amalgamation Reserve.
4 The Company has invested Rs.48.43 Crore in its subsidiary ISMT Enterprises, Luxembourg, which in turn holds 100 % investment in Structo Hydraulics AB, Sweden (SHAB). The company has given a corporate guarantee of Rs 18.03 Crores (USD 3 Million) for loan availed by SHAB. The net recoverable as on June, 30th 2014 on account of supplies by the company to SHAB is Rs. 45.99 Crore. SHAB has incurred cash losses and the net worth of SHAB is eroded. The management is of the opinion that the investment made in ISMT Enterprises group is strategic and as a forward integration in the value chain of core business of the company and the diminution in value of investment is temporary in nature, as such no provision for the same is considered necessary..
5 Upon petition filed by the Company regarding non implementation of Energy Banking Agreement (EBA) dated 7th May, 2010, Maharashtra Electricity Regulatory Commission (MERC) granted partial relief to the Company by its order dated 20th June, 2014. The company being aggrieved by the said order has filed a Review application before MERC on 9th July, 2014 to reconsider its decision on various grounds. Based on Legal advice, the Company, pending final disposal of the review application had accrued the EPA benefit aggregating to Rs. 49.97 Crores till 31st March,2014 representing excess energy charges paid to MSEDCL on account of non availability of banking facility. There was no further accrual during the quarter on account of temporary suspension of operation of power plant..
6 Pending an independent ascertainment of useful life of fixed assets, the Company has reworked depreciation with reference to the useful lives of Fixed Assets prescribed by Schedule II of the Companies Act 2013, due to which there is a lower charge of depreciation of Rs. 10.69 Crore in the current quarter ended 30th June, 2014. In respect of assets where life is already exhausted, carrying value as at April, 01, 2014 of Rs. 9 .76 Crore has been adjusted to Reserves.
7 In the opinion of the management, the outstanding MAT Entitlement as at 30th June 2014 of Rs. 91.44 Crore is expected to be utilized within the stipulated time period prescribed as per the provisions of Income Tax Act, 1961. Nevertheless, any amount lapsing in future due to insufficient taxable profits shall be fully provided in the respective years of lapsing.
8 The Company had not sought Open Access for wheeling of power from its Captive Power Plant with effect from April 01, 2014, since the operations of the Captive Power Plant have been temporarily suspended
9

The figures of the last quarter of previous year are the balancing figures between audited figures in respect of the full financial year and the published year to date figures up to the third quarter of the respective financial year.

10 The comparative figures are regrouped and reclassified to meet the current quarter's classification.
  The above results were reviewed by the Audit committee and have been taken on record by the Board of Directors at their meeting held on 13th August, 2014.
   
   
  For ISMT Limited
   
  Place : Faridabad Rajiv Goel
  Date : 13th August, 2014 Chief Financial Officer
   
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