Investor Relations
STATEMENT OF UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30th SEPTEMBER, 2014
Rs. in Crore
Sr. No. Particulars Quarter ended Half Year ended Year ended
30th Sept., 2014 30th June., 2014 30th Sept., 2013 30th Sept., 2014 30th Sept., 2013 31st March, 2014
    Unaudited Unaudited Unaudited Unaudited Unaudited Audited
PART-I              
1 Gross Sales/ Income from Operations 645.86 623.43 714.67 1,269.29 1,338.11 2,563.10
  Less :  Inter Segment Transfers 199.48 199.54 254.06 399.02 462.72 880.27
  Inter Division Transfers 11.16 9.90 9.90 21.06 22.60 39.97
  Excise Duty 39.66 40.06 40.30 79.72 75.96 147.47
  (a) Net Sales/ Income from Operations 395.56 373.93 410.41 769.49 776.83 1,495.39
  (b) Other Operating Income 11.59 12.97 15.36 24.56 33.91 65.72
               
  Total Income from Operations (a+b) 407.15 386.90 425.77 794.05 810.74 1,561.11
               
2 Expenses            
  (a) Consumption of Raw Materials 203.43 166.60 211.68 370.03 391.05 761.46
  (b) Purchases of stock-in-trade 5.93 0.51 1.14 6.44 1.40 1.78
  (c) Changes in inventories of finished goods, work-in-progress and stock-in-trade 10.10 39.67 (23.45) 49.77 (24.25) (16.13)
  (d) Employee benefits expense 32.09 31.86 30.80 63.95 60.04 123.75
  (e) Depreciation & Amortisation Expense 16.29 16.36 25.86 32.65 50.71 102.09
  (f) Other Expenses :            
  (i) Energy 87.27 76.16 90.76 163.43 166.07 319.19
  (ii)Other Direct Expenditure 52.22 46.44 71.27 98.66 127.03 257.15
  (iii) Other Expenditure 9.24 8.70 11.36 17.94 22.65 26.61
               
  Total Expenses 416.57 386.30 419.10 802.87 794.70 1,575.90
               
3 Profit / (Loss) from Operations before other income,finance costs (9.42) 0.60 6.67 (8.82) 16.04 (14.79)
  and exceptional items (1-2)            
4 Other Income 3.12 2.86 4.65 5.98 9.17 15.61
5 Profit / (Loss) from ordinary activities before finance costs and (6.30) 3.46 11.32 (2.84) 25.21 0.82
  exceptional items ( 3+4)            
6 Finance Costs 56.77 52.22 44.87 108.99 84.54 183.53
7 Profit / (Loss) from ordinary activities after finance costs but before exceptional items and
foreign exchange( Gain)/ Loss
( 5-6)
(63.07) (48.76) (33.55) (111.83) (59.33) (182.71)
8 Exceptional items            
  a) Foreign Exchange (Gain)/ Loss 4.39 7.15 11.22 11.54 18.18 67.52
  b) Excess Energy Cost - - 15.66 - 15.66 14.60
  c)Others 1.89 1.97 - 3.86 - (60.18)
9 Profit / (Loss) from ordinary activities before tax (7- 8) (69.35) (57.88) (60.43) (127.23) (93.27) (204.65)
               
10 Tax Expenses - - (21.64) - (33.43) (34.36)
11 Net Profit / (Loss) from ordinary activities after tax (9-10) (69.35) (57.88) (38.79) (127.23) (59.84) (170.29)
12 Extraordinary items - - - - - -
13 Net Profit / (Loss) for the period after tax (11-12) (69.35) (57.88) (38.79) (127.23) (59.84) (170.29)
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 - - - - - 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) (4.73) (3.95) (2.65) (8.68) (4..08) (11.62)
17 Earnings per share after extraordinary items            
  Basic & Diluted Earnings per share of Rs.5/- each (Rs) ( not annualised) (4.73) (3.95) (2.65) (8.68) (4.08) (11.62)
               
PART-II              
A SELECT INFORMATION FOR THE QUARTER ENDED 30th SEP, 2013            
  PARTICULARS OF SHAREHOLDING            
1 Public Shareholding            
  Number of Shares 69991572 69991572 70130712 69991572 69991572 69991572
  Percentage of Shareholding 47.78% 47.75% 47.87% 47.78% 47.87% 47.74%
2 Promoters and promoter group shareholding            
  (a) Pledged / Encumbered            
  Number of Shares NIL NIL 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 76509811 76549811 76370671 76509811 76370671 76549811
  Percentage of Shares ( as a % of the total shareholding of promoter 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
  and promoter group )            
  Percentage of Shares ( as a % of the total share capital of the company ) 52.22% 52.25% 51.13% 52.22% 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 UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30th SEPTEMBER, 2013
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, 2014, the Company has carried Exchange Loss of Rs 13.70 Crore to Hedge Reserve Account and charged Exchange Loss of Rs 4.78 Crore to Statement of Profit and Loss from Hedge Reserve Account. Balance in Hedge Reserve Accounts as on 30th September, 2014 is Rs. 23.38 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 September, 2104, Exchange Loss capitalized is Rs. 5.06 Crore and Exchange Loss recognized in Foreign Currency Monetary Item Translation Difference Account (FCMITDA) is Rs. 1.01 Crore and Exchange Loss of Rs. 0.49 Crore transferred to Statement of Profit and Loss from FCMITDA. Balance in FCMITDA as on 30th September, 2014 is Rs. 9.88 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 and Rs. 2.22 Crore during current quarter and six months ended 30th September, 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 7.40 Crores (USD 1.201 million balance loan amount ) for loan availed by SHAB. The net recoverable as on September, 30th 2014 on account of supplies by the company to SHAB is Rs. 51.05 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 and for receivables 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 and clarificatory petition on 6th August,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 effective from 1st April,2014 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. 10.88 Crore and Rs. 21.57 Crore for the current quarter and six months ended 30th September, 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

Out of the outstanding MAT Entitlement as at 30th September, 2014 of Rs. 91.44 Crore, any amount lapsing in future due to insufficient taxable profits shall be fully provided in the respective years of lapsing.

8

The auditors have carried out a “Limited Review’’ of the financial results for the quarter and six months ended 30th September, 2014.

9

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 14th November, 2014.

   
   
                                 For ISMT Limited
   
  Place : Pune Rajiv Goel
  Date : 14th November, 2014 Chief Financial Officer
   
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