Investor Relations
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 31st DECEMBER,2011
  Rs. in Crore
   
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Sr. No. Particulars Quarter ended 31st Dec.,2011 Quarter ended 30th Sept.,2011 Quarter ended 31st Dec.,2010 Nine Months ended 31st Dec.,2011 Nine Months ended 31st Dec.,2010 Year ended 31st March, 2011
              Audited
1 Gross Sales/ Income from Operations 744.78 825.68 620.81 2,300.31 1,887.75 2,604.27
               
  Less : Inter Segment Transfers 204.99 226.42 177.56 610.98 541.33 709.10
  Inter Division Transfers 38.40 50.98 33.26 133.92 119.43 150.39
  Excise Duty 36.88 36.10 30.70 109.18 94.59 131.07
  (a) Net Sales/ Income from Operations 464.51 512.18 379.29 1,446.23 1,132.40 1,613.71
  (b) Other Operating Income 7.42 9.91 9.06 24.89 16.27 24.39
   
  Total Income (a+b) 471.93 522.09 388.35 1,471.12 1,148.67 1,638.10
2 Expenditure            
  (a) (Increase) / Decrease in Stock-in-trade and Work in progress (11.80) 4.40 (18.00) (42.05) (74.94) (55.25)
  (b) Consumption of Raw Materials 250.68 258.51 189.33 772.34 560.55 797.60
  (c) Direct Expenditure :            
    (i) Energy 84.54 85.64 71.80 253.57 208.38 280.98
    (ii)Other Direct Expenditure 61.37 70.67 52.01 198.28 174.92 242.90
  (d) Employees Cost 28.66 28.63 24.77 84.12 69.19 94.69
  (e) Depreciation & Amortisation 22.43 20.73 20.37 63.40 58.25 85.54
  (f) Other Expenditure 4.87 4.91 4.27 14.72 11.76 16.66
  (g)Total ( a to f ) 440.75 473.49 344.55 1,344.38 1,008.11 1,463.12
               
3 Profit from Operations before Other Income, Interest and Finance Charges (1-2) 31.18 48.60 43.80 126.74 140.56 174.98
4 Other Income 4.27 3.55 1.50 13.31 7.39 14.17
5 Profit before Interest and Finance Charges ( 3+4) 35.45 52.15 45.30 140.05 147.95 189.15
6 Interest and Finance Charges 31.25 25.00 23.71 82.85 65.05 90.56
   
7 Profit after Interest and Finance Charges but before Foreign Exchange (Gain)/ Loss and tax ( 5-6 ) 4.20 27.15 21.59 57.20 82.90 98.59
               
8 Foreign Exchange (Gain) / Loss 6.90 12.45 (2.94) 19.24 0.19 2.57
9 Profit from Ordinary Activities before tax (7- 8) (2.70) 14.70 24.53 37.96 82.71 96.02
10 Tax Expenses : Current Tax ( including P.Y. Rs. 9.30 crore) 8.77 3.09 4.89 16.93 16.09 18.57
  Add : MAT Credit Entitlement ( including P.Y. Rs. 8.32 crore) 7.78 3.08 4.89 15.92 16.09 18.52
  Less : Deferred Tax Charge /(Credit) (5.46) 4.20 9.95 6.13 25.61 20.61
   
11 Net Profit from Ordinary Activities after tax (9-10) 1.77 10.49 14.58 30.82 57.10 75.36
               
12 Paid-up Equity Share Capital (Face Value of Rs.5/- per share) 73.25 73.25 73.25 73.25 73.25 73.25
13 Reserves excluding Revaluation Reserves as per Balance Sheet of previous accounting year. - - - - - 545.45
14 Earnings per share
  Basic Earnings per share of Rs.5/- each (Rs) ( not annualised) 0.12 0.72 1.00 2.10 3.90 5.14
15 Public Shareholding
  Number of Shares 70759176 70789124 71297290 70759176 71297290 70927320
  Percentage of Shareholding 48.30% 48.32% 48.67% 48.30% 48.67% 48.41%
16 Promoters and promoter group shareholding
  (a) Pledged / Encumbered
  Number of Shares NIL NIL 375000 NIL 375000 375000
  Percentage of Shares ( as a % of the total shareholding of promoter and Promoter group ) - - 0.50% - 0.50% 0.50%
  Percentage of Shares ( as a % of the total share capital of the company ) - - 0.26% - 0.26% 0.26%
  (b) Non - Encumbered
  Number of Shares 75742207 75712259 74829093 75742207 74829093 75199063
  Percentage of Shares ( as a % of the total shareholding of promoter and Promoter group ) 100.00% 100.00% 99.50% 100.00% 99.50% 99.50%
  Percentage of Shares ( as a % of the total share capital of the company ) 51.70% 51.68% 51.07% 51.70% 51.07% 51.33%
   
   
NOTES:
 
1. a)During the current quarter and nine months ended as on 31st December,2011, the Company has utilised Rs. 8.75 Crore out of the proceeds from Foreign Currency Convertible Bonds towards object of the issue.
b) On 1st December ,2011 the Company has redeemed 0% , FCCB Bonds of USD 20 Million along with the redemption premium and the same has been pro-rated over the quarters.
 
2. The Company has changed its accounting policy with regard to recognition of exchange differences arising on translation of foreign currency borrowings by following and appropriate hedge accounting policy and applying the principles set out in AS - 30 Financial Instruments : Recognition and Measurement. The Company has w.e.f. from 1st April, 2011 designated borrowings in foreign currency, other than those utilised for capital expenditure, as hedge instrument to hedge its foreign currency risks of highly probable forecast transactions (of revenue streams) to be accounted as cash flow hedge. During the current quarter and nine months ended 31st December, 2011, the net exchange difference loss on foreign currency borrowings amounting to Rs.38.30 Crore and Rs.67.67 Crore (includes Rs.29.37 Crore for first two quarters) respectively has been recognised in Hedge Reserve. As a result, the charge on account of exchange difference loss for the current quarter and nine months ended 31st December, 2011 is lower by similar amounts and there fore previous period and previous year figures are not comparable.
Pursuant to the notification dated 29th December , 2011 issued by the Ministry of Corporate Affairs amending the Accounting Standard 11, the Company has exercised the option as per Para 46 A inserted in the standard for long term monetary liabilities. Consequently, on long term Monetary Liabilities, other than covered under Hedge Accounting and utilised for capital expenditure, an amount of Rs.6.97 Crore is carried forward in the Foreign Exchange Monetary Item Translation Difference Account as on 31st December, 2011 and will be amortized over the life of the monetary liabilities. As a result of above change, exchange difference loss amounting to Rs. 3.61 Crore for the current quarter ( Rs. 6.97 Crore for nine months ended 31st December,2011) has not been charged to profit and loss account during respective periods.

Due to above changes,profit (net of tax ) for the current quarter and nine months ended 31st December, 2011 is overstated by Rs. 27.91 Crore and Rs. 50.42 Crore respectively .
 
3. The Company's 40 MW Captive Power Plant has been successfully synchronized during the current quarter.
 
4. 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. 1.69 Crore and Rs. 5.07 Crore during current quarter and for nine months ended 31st December,2011 respectively against the Amalgamation Reserve.
 
5. In terms of the eligibility of the Company under the Package Scheme of Incentive, 2007, Mega Project Incentive has been treated as income following '' Income Approach '' in terms of Accounting Standard -12, " Accounting for Government Grants''. However, based on the legal advice the same has been considered as capital receipt for the purpose of taxation.
 
6. As at the beginning of the Quarter, 2 investor complaints were pending. 3 investor complaints were received during the quarter and all the 5 complaints were redressed during the quarter. There were no complaints pending at the end of the quarter ended 31st December,2011.
 
7. The Insurance claim lodged during the quarter ended 30th September,2011 has been accounted on accrual basis and a note to this effect was given in the previous quarterly results. The limited review report for the previous and current quarter has been qualified with respect to above note and the Company expects that the said claim would be settled by the insurance company and there would be no material difference in the settlement of the claim.
 
8. The comparative figures are regrouped and reclassified to meet the current quarter's classification.

The auditors have conducted a " Limited Review " of the financial results for the quarter ended 31st December, 2011. 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 4th February, 2012.
 
  For ISMT Limited
   
  Place : Pune Rajiv Goel
  Date : 4th February, 2012 Chief Financial Officer
   
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