Investor Relations
STATEMENT OF UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30th SEPTEMBER, 2015
Rs. in Crore
Sr. No. Particulars Quarter ended Half Year ended Year ended
30th Sept., 2015 30th June., 2015 30th Sept., 2014 30th Sept., 2015 30th Sept., 2014 31st March, 2015
    Unaudited Unaudited Unaudited Unaudited Unaudited Audited
PART-I              
1 Gross Sales/ Income from Operations 330.05 364.88 645.86 694.93 1,269.29 2,320.15
  Less :  Inter Segment Transfers 60.14 71.00 199.48 131.14 399.02 674.97
  Inter Division Transfers 6.85 5.38 11.16 12.23 21.06 38.08
  Excise Duty 25.90 28.04 39.66 53.94 79.72 144.04
  (a) Net Sales/ Income from Operations 237.16 260.46 395.56 497.62 769.49 1,463.06
  (b) Other Operating Income 5.10 5.72 11.59 10.82 24.56 41.44
               
  Total Income from Operations (a+b) 242.26 266.18 407.15 508.44 794.05 1,504.50
               
2 Expenses            
  (a) Consumption of Raw Materials 112.53 136.57 203.43 249.10 370.03 733.10
  (b) Purchases of stock-in-trade 0.01 0.02 5.93 0.03 6.44 16.24
  (c) Changes in inventories of finished goods, work-in-progress and stock-in-trade 7.24 9.48 10.10 16.72 49.77 58.86
  (d) Employee benefits expense 26.29 26.54 32.09 52.83 63.95 120.81
  (e) Depreciation & Amortisation Expense 17.99 17.86 16.29 35.85 32.65 74.00
  (f) Other Expenses :            
  (i) Energy 49.30 50.59 87.27 99.89 163.43 303.19
  (ii)Other Direct Expenditure 29.85 27.52 52.22 57.37 98.66 202.70
  (iii) Other Expenditure 7.35 6.94 9.24 14.29 17.94 34.82
               
  Total Expenses 250.56 275.52 416.57 526.08 802.87 1,543.72
               
3 Profit / (Loss) from Operations before other income,finance costs (8.30) (9.34) (9.42) (17.64) (8.82) (39.22)
  and exceptional items (1-2)            
4 Other Income 1.84 2.39 3.12 4.23 5.98 11.39
5 Profit / (Loss) from ordinary activities before finance costs and (6.46) (6.95) (6.30) (13.41) (2.84) (27.83)
  exceptional items ( 3+4)            
6 Finance Costs 63.90 60.98 56.77 124.88 108.99 226.08
7 Profit / (Loss) from ordinary activities after finance costs but before exceptional items ( Gain)/ Loss
( 5-6)
(70.36) (67.93) (63.07) (138.29) (111.83) (253.91)
8 Exceptional items            
  a) Foreign Exchange (Gain)/ Loss 35.84 7.20 4.39 43.04 11.54 16.89
  b)Others 2.27 1.14 1.89 3.41 3.86 49.81
9 Profit / (Loss) from ordinary activities before tax (7- 8) (108.47) (76.27) (69.35) (184.74) (127.23) (220.99)
               
10 Tax Expenses - - - - - -
11 Net Profit / (Loss) from ordinary activities after tax (9-10) (108.47) (76.27) (69.35) (184.74) (127.23) (220.99)
12 Extraordinary items - - - - - -
13 Net Profit / (Loss) for the period after tax (11-12) (108.47) (76.27) (69.35) (184.74) (127.23) (220.99)
14 Paid-up Equity Share Capital (Face Value of Rs.5/- per share) 73.25 73.25 73.25 73.25 73.25 73.25
15 Reserves excluding Revaluation Reserves as per - - - - - (4.23)
  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) (7.40) (5.21) (4.73) (12.61) (8.68) (15.08)
17 Earnings per share after extraordinary items            
  Basic & Diluted Earnings per share of Rs.5/- each (Rs) ( not annualised) (7.40) (5.21) (4.73) (12.61) (8.68) (15.08)
               
PART-II              
A SELECT INFORMATION FOR THE QUARTER ENDED 30th SEP, 2015            
  PARTICULARS OF SHAREHOLDING            
1 Public Shareholding            
  Number of Shares 70885701 70702018 69991572 70885701 69991572 70702018
  Percentage of Shareholding 48.39% 48.26% 47.78% 48.39% 47.78% 48.26%
2 Promoters and promoter group shareholding            
  (a) Pledged / Encumbered            
  Number of Shares 55230000 55230000 NIL 55230000 NIL 55230000
  Percentage of Shares ( as a % of the total shareholding of promoter 73.04% 73.04% - 73.04% - 72.86%
  and promoter group )            
  Percentage of Shares ( as a % of the total share capital of the company ) 37.70% 37.70% - 37.70% - 37.70%
  (b) Non - Encumbered            
  Number of Shares 20385682 20569365 76509811 20385682 76509811 20569365
  Percentage of Shares ( as a % of the total shareholding of promoter 29.96% 27.14% 100.00% 29.96% 100.00% 27.14%
  and promoter group )            
  Percentage of Shares ( as a % of the total share capital of the company ) 13.91% 14.04% 52.22% 13.91% 52.22% 14.04%
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 UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30th SEPTEMBER, 2015
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 September, 2015 as a result of non fulfillment of Hedge effectiveness, the debit balance of Hedge Reverse amounting of Rs.26.55 Crore has been presently changed to the statement of Profite and Loss and included in the Exceptional item 8 ( a ) under Foreign Exchange Gain / (Loss)

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 September, 2015, Exchange Loss capitalized is Rs. 7.12 Crore and Exchange Loss recognized in Foreign Currency Monetary Item Translation Difference Account (FCMITDA) is Rs. 1.25 Crore and Exchange Loss of Rs. 0.64 Crore transferred to Statement of Profit and Loss from FCMITDA. Balance in FCMITDA as on 30th September, 2015 is Rs. 10.37 Crore.

3

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 32.87 Crores (USD 5 million ) for loan availed  by SHAB. The  recoverable on account of sales made to SHAB is Rs. 54.95 Crore againsts which a provision for doubtful debts is made of Rs. 47.24 Crore and net balacne of Rs.7.71 Crore is collectaible. No provision howerver has been made in respect of temporary diminution in value of inverstement made in ISMT Enterprisesm S.A. which is in the nature of forward integration and considered Stactegic and Long Term.

4

Maharastra Electicity Regulatory Commission (MERC) had disallowed Company's petition regarding non implementation of Enerty Banking Agreement vide its orders dated 20th June, 2014 and 12th January, 2015 and the Company's appeal against this order is presently pending at Appellate Tribunal (APTEL). Based on legal advice, the Company. Peding final dispoal of the matter had accrued EBA benefit aggregating to Rs. 49.97 Crores uot to 31st march 2014 , of which amount outstanding as on 30th September, 2015 is Rs. 39.53 Crore, representing excess energy changes paid to Maharastra State Electricity Distribution Company Limited (MSEDCL on account of non availabililty of banking facility. There was no further accoural during the period ended 30th Septmber 2015 on account of temporary suspension of operation of power plant.

5

Exceptional item other represents Legal expenses incurred during the current quarter ended 30th Septmber , 2015 for international Arbitration amounting to is Rs.1.67 Crore, Rs. 2.81 Crore for the six months ended 30th September , 2015 and amount of Rs. 0.60 Crores incurred during the current quater for financial restructuring.

6

Employee  Benefits Expense includes remuneration payable to Whole Time Directors for the quarter ended 30th Septmber, 2015 amounting to Rs. 0.52 Crore and for the half year ended 30th September, 2015 amouting to Rs. 1.05 Crore is subjected to approval of Central Government.

7

The Company has Minimum Alternare Tax (MAT) credit entitlement as as 30th September , 2015 of Rs. 91.44 Crores which is allowed to be carried forward for a period of ten years under thd Income Tax Act, 1961 from the year in which MAT was paid and will lapse thereafter. Accordingly, the unabsorbed MAT credit shall be provided in the statement of profit and Loss to the extent it lapese in the respective years. Out of the total MAT credti entitlement, Rs. 9.39 Crore would lapes as on 31st March 2016, if not untilized.

8

There was a steep fall in Tube volumes during the quater and halp year on account of unabated dumping of Chinese imports at very low prices, The industry has filed the Anti dumping petition and has requested for immediate relief by way of provisional duty

9

The Shareholders of the company have already consigered erosion of more than 50 % of peak net worth as of  31st March , 2015 requirging the company to report the same to Board of Industrial and Financial Restructuring. The Company has continued to incur losses during current quater and the first half year on account of adverse market conditions in both domestic and export markets. The Company is taking various corrective steps - All round reductions in fixed and variable costs, Activity pursuing with the Government for levy of Anit dumping duty on Chinese imports , Restructuring its debts in line with the available cash flows and sale of Non core assests. The Company has therefore continued to prepare its financial statements on Going Concern basis.

10

The auditors have carried out a " Limited Review " of the financial results for the quater ended 30th September , 2015. 

11

The comparative figures are regrouped and reclassified to meet the current quater's classsification

   
  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 November, 2015
                                 For ISMT Limited
   
  Place : Pune Rajiv Goel
  Date : 13th November, 2015 Chief Financial Officer
   
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