ISMT Limited - World Class Manufacturer of Alloy Steels, Seamless Tubes and Tube Based Products

Rs. in Crore

PART-I

1

Gross Sales/ Income from Operations

623.44

640.10

724.24

2,513.02

Less : Inter Segment Transfers

208.66

204.61

199.55

745.29

Inter Division Transfers

12.79

17.20

37.54

112.38

Excise Duty

35.66

37.82

38.25

143.94

(a) Net Sales/ Income from Operations

366.33

380.47

448.90

1,511.41

(b) Other Operating Income

19.77

17.91

20.66

80.38

Total Income from Operations (a+b)

386.10

398.38

469.56

1,591.79

2

Expenses

(a) Consumption of Raw Materials

179.37

197.58

256.61

773.44

(b) Purchases of stock-in-trade

0.26

2.15

1.37

8.21

(c) Changes in inventories of finished goods, work-in-progress and stock-in-trade

(0.80)

(1.00)

(35.49)

(27.18)

(d) Employee benefit expenses

29.56

30.08

28.44

115.79

(e) Depreciation & Amortisation Expense

24.85

24.67

21.95

95.64

(f) Other Expenses :

(i) Energy

76.53

51.83

86.96

295.60

(ii)Other Direct Expenditure

55.76

65.80

66.85

239.95

(iii) Other Expenditure

11.29

17.78

6.20

35.12

Total Expenses

376.82

388.89

432.89

1,536.57

3

Profit / (Loss) from Operations before other income,finance costs

9.28

9.49

36.67

55.22

and exceptional items (1-2)

4

Other Income

4.52

8.13

4.19

20.66

5

Profit / (Loss) from ordinary activities before finance costs and

13.80

17.62

40.86

75.88

exceptional items ( 3+4)

6

Finance Costs

39.67

37.15

37.30

152.66

7

Profit / (Loss) from ordinary activities after finance costs but before

(25.87)

(19.53)

3.56

(76.78)

exceptional items ( 5-6)

8

Exceptional items (Foreign Exchange (Gain)/ Loss)

7.06

11.02

19.15

63.85

9

Profit / (Loss) from ordinary activities before tax (7- 8)

(32.93)

(30.55)

(15.59)

(140.63)

10

Tax Expenses

(11.79)

(10.30)

-

(40.92)

11

Net Profit / (Loss) from ordinary activities after tax (9-10)

(21.14)

(20.25)

(15.59)

(99.71)

12

Extraordinary items

-

13

Net Profit / (Loss) for the period after tax (11-12)

(21.14)

(20.25)

(15.59)

(99.71)

14

Paid-up Equity Share Capital (Face Value of Rs.5/- per share)

73.25

15

Reserves excluding Revaluation Reserves as per

-

416.57

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)

(1.44)

(1.38)

(1.06)

(6.81)

17

Earnings per share after extraordinary items

Basic & Diluted Earnings per share of Rs.5/- each (Rs) ( not annualised)

(1.44)

(1.38)

(1.06)

(6.81)

PART-II

A

SELECT INFORMATION FOR THE QUARTER ENDED 30th JUNE, 2013

PARTICULARS OF SHAREHOLDING

1

Public Shareholding

Number of Shares

70130712

70150712

70764009

70150712

Percentage of Shareholding

47.87%

47.88%

48.30%

47.88%

2

Promoters and promoter group shareholding

(a) Pledged / Encumbered

Number of Shares

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

76370671

76350671

75737374

76350671

Percentage of Shares ( as a % of the total shareholding of promoter

100.00%

and promoter group )

Percentage of Shares ( as a % of the total share capital of the company )

52.13%

52.12%

51.70%

52.12%

B

INVESTOR COMPLAINTS

Pending at the beginning of the quarter

NIL

Received during the quarter

5

Disposed of during the quarter

5

Remaining unresolved at the end of the quarter

NIL

NOTES ON UN AUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30th JUNE, 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 June, 2013, the Company has carried Exchange Loss of Rs 54.88 Crore to Hedge Reserve Account and charged Exchange Loss of Rs 1.17 Crore to Statement of Profit and Loss from Hedge Reserve Account. Balance in Hedge Reserve Accounts as on 30th June, 2103 is Rs. 69.15 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, 2013, Exchange Loss capitalized is Rs. 43.06 Crore and Exchange Loss recognized in Foreign Currency Monetary Item Translation Difference Account (FCMITDA) is Rs. 3.93 Crore and Exchange Loss of Rs. 0.38 Crore transferred to Statement of Profit and Loss from FCMITDA. Balance in FCMITDA as on 30th June, 2013 is Rs. 10.30 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.1.67 Crore during current quarter ended 30th June, 2013 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 29.85 Crores (USD 5 Million) for loan availed by SHAB. The net recoverable on account of supplies by the company to SHAB is Rs. 44.74 Crore. While SHAB had cash loss in the previous year 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, as such no provision for the same is considered necessary.

5

The Company had entered in to an Energy Banking Agreement ( EBA) dated 7th May, 2010 with Maharashtra State Electricity Distribution Company Limited (MSEDCL) which was not implemented by MSEDCL while granting Open Access permission. Upon petition filed by the Company in this matter an interim order has been passed by Maharashtra Electricity Regulatory Commission, Mumbai (MERC), staying Open Access Circular No. 170 of MSEDCL and making the EBA operative. The said interim order of MERC was challenged by MSEDCL before the Bombay High Court on ground of jurisdiction and was dismissed. Thereafter upon appeal on similar ground, Appellate Tribunal for Electricity has remanded the matter back to MERC after setting aside the MERC order. Based on Legal advice, the Company, pending final disposal of the petition, has continued to accrue Banking Credit as per EBA of Rs. 7.17 Crores for the quarter ended 30th June,2013 representing excess energy charges paid to MSEDCL on account of non availability of banking facility.

6

The Company had recognized insurance claim amounting to Rs. 14.98 Crore in the financial year 2011-12. After accounting for receipt of part claim and credit for rejected material, the balance amount of Rs. 2.45 Crore is yet to be received from the Insurance Company. 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.

7

Figures for the quarter ended 31st March, 2013 are the balancing figures between audited figures in respect of the full financial year ended on 31st March, 2013 and published year to date figures up to the third quarter ended on 31st December, 2012.

8

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 February, 2013.

For ISMT Limited

Place : Pune

Rajiv Goel

Date : 12th August, 2013

Chief Financial Officer

STATEMENT OF UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30 th JUNE, 2013
Rs. in Crore
Sr. No.	Particulars	Quarter ended			Year ended
Sr. No.	Particulars	30th June, 2013	31st March, 2013	30th June, 2012	31st March, 2013
		Unaudited	Refer Note No.7	Unaudited	Audited
PART-I
1	Gross Sales/ Income from Operations	623.44	640.10	724.24	2,513.02
	Less : Inter Segment Transfers	208.66	204.61	199.55	745.29
	Inter Division Transfers	12.79	17.20	37.54	112.38
	Excise Duty	35.66	37.82	38.25	143.94
	(a) Net Sales/ Income from Operations	366.33	380.47	448.90	1,511.41
	(b) Other Operating Income	19.77	17.91	20.66	80.38

	Total Income from Operations (a+b)	386.10	398.38	469.56	1,591.79

2	Expenses
	(a) Consumption of Raw Materials	179.37	197.58	256.61	773.44
	(b) Purchases of stock-in-trade	0.26	2.15	1.37	8.21
	(c) Changes in inventories of finished goods, work-in-progress and stock-in-trade	(0.80)	(1.00)	(35.49)	(27.18)
	(d) Employee benefit expenses	29.56	30.08	28.44	115.79
	(e) Depreciation & Amortisation Expense	24.85	24.67	21.95	95.64
	(f) Other Expenses :
	(i) Energy	76.53	51.83	86.96	295.60
	(ii)Other Direct Expenditure	55.76	65.80	66.85	239.95
	(iii) Other Expenditure	11.29	17.78	6.20	35.12

	Total Expenses	376.82	388.89	432.89	1,536.57

3	Profit / (Loss) from Operations before other income,finance costs	9.28	9.49	36.67	55.22
	and exceptional items (1-2)
4	Other Income	4.52	8.13	4.19	20.66
5	Profit / (Loss) from ordinary activities before finance costs and	13.80	17.62	40.86	75.88
	exceptional items ( 3+4)
6	Finance Costs	39.67	37.15	37.30	152.66
7	Profit / (Loss) from ordinary activities after finance costs but before	(25.87)	(19.53)	3.56	(76.78)
	exceptional items ( 5-6)
8	Exceptional items (Foreign Exchange (Gain)/ Loss)	7.06	11.02	19.15	63.85
9	Profit / (Loss) from ordinary activities before tax (7- 8)	(32.93)	(30.55)	(15.59)	(140.63)
10	Tax Expenses	(11.79)	(10.30)	-	(40.92)
11	Net Profit / (Loss) from ordinary activities after tax (9-10)	(21.14)	(20.25)	(15.59)	(99.71)
12	Extraordinary items	-	-	-	-
13	Net Profit / (Loss) for the period after tax (11-12)	(21.14)	(20.25)	(15.59)	(99.71)
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	-	-	-	416.57
	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)	(1.44)	(1.38)	(1.06)	(6.81)
17	Earnings per share after extraordinary items
	Basic & Diluted Earnings per share of Rs.5/- each (Rs) ( not annualised)	(1.44)	(1.38)	(1.06)	(6.81)

PART-II
A	SELECT INFORMATION FOR THE QUARTER ENDED 30th JUNE, 2013
	PARTICULARS OF SHAREHOLDING
1	Public Shareholding
	Number of Shares	70130712	70150712	70764009	70150712
	Percentage of Shareholding	47.87%	47.88%	48.30%	47.88%
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	76370671	76350671	75737374	76350671
	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 )	52.13%	52.12%	51.70%	52.12%
B	INVESTOR COMPLAINTS
	Pending at the beginning of the quarter	NIL
	Received during the quarter	5
	Disposed of during the quarter	5
	Remaining unresolved at the end of the quarter	NIL



	NOTES ON UN AUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30th JUNE, 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 June, 2013, the Company has carried Exchange Loss of Rs 54.88 Crore to Hedge Reserve Account and charged Exchange Loss of Rs 1.17 Crore to Statement of Profit and Loss from Hedge Reserve Account. Balance in Hedge Reserve Accounts as on 30th June, 2103 is Rs. 69.15 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, 2013, Exchange Loss capitalized is Rs. 43.06 Crore and Exchange Loss recognized in Foreign Currency Monetary Item Translation Difference Account (FCMITDA) is Rs. 3.93 Crore and Exchange Loss of Rs. 0.38 Crore transferred to Statement of Profit and Loss from FCMITDA. Balance in FCMITDA as on 30th June, 2013 is Rs. 10.30 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.1.67 Crore during current quarter ended 30th June, 2013 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 29.85 Crores (USD 5 Million) for loan availed by SHAB. The net recoverable on account of supplies by the company to SHAB is Rs. 44.74 Crore. While SHAB had cash loss in the previous year 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, as such no provision for the same is considered necessary.
5	The Company had entered in to an Energy Banking Agreement ( EBA) dated 7th May, 2010 with Maharashtra State Electricity Distribution Company Limited (MSEDCL) which was not implemented by MSEDCL while granting Open Access permission. Upon petition filed by the Company in this matter an interim order has been passed by Maharashtra Electricity Regulatory Commission, Mumbai (MERC), staying Open Access Circular No. 170 of MSEDCL and making the EBA operative. The said interim order of MERC was challenged by MSEDCL before the Bombay High Court on ground of jurisdiction and was dismissed. Thereafter upon appeal on similar ground, Appellate Tribunal for Electricity has remanded the matter back to MERC after setting aside the MERC order. Based on Legal advice, the Company, pending final disposal of the petition, has continued to accrue Banking Credit as per EBA of Rs. 7.17 Crores for the quarter ended 30th June,2013 representing excess energy charges paid to MSEDCL on account of non availability of banking facility.
6	The Company had recognized insurance claim amounting to Rs. 14.98 Crore in the financial year 2011-12. After accounting for receipt of part claim and credit for rejected material, the balance amount of Rs. 2.45 Crore is yet to be received from the Insurance Company. 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.
7	Figures for the quarter ended 31st March, 2013 are the balancing figures between audited figures in respect of the full financial year ended on 31st March, 2013 and published year to date figures up to the third quarter ended on 31st December, 2012.
8	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 February, 2013.


	For ISMT Limited

	Place : Pune	Rajiv Goel
	Date : 12th August, 2013	Chief Financial Officer

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