Expenditure includes

Increase in stock in Trade Rs 1340.20 million
Consumption of Raw Material Rs 8029.30 million
Staff Cost Rs 3692.40 million
Other expenditure Rs 2090.00 million
( any item exceeding 10% of the total
expenditure to be shown separately)
Deferred Revenue expenditure written off Rs 442.80 million

Tax includes
Provision for taxation Rs 28.20 million
Provision for deferred tax Rs 120.60 million

1. Net Sales/Income from operations includes

Export incentives Rs 509.90 million
Lease Rental Rs 234.70 million

2. Staff cost for 2000-01 is net of provision for earlier years.

3. The above results have been compiled taking into account the impact of Accounting Standard made mandatory from April 1, 2001, in addition to the significant accounting policies of the Company.

4. Deferred Revenue Expenditure charged off includes proportionate amount for VRS 2001-02 also.

5. Provision for deferred tax required in accordance with AS-22 of ICAI for the half year ended September 30, 2001 have been made in the accounts. The cumulative net deferred tax assets as on March 31, 2001 is Rs 2695.50 million to be adjusted against the reserves. The provision for deferred tax/liabilities upto March 31, 2001 and for the half year ended September 30, 2001 are based on estimates and any excess/short provision shall be suitably adjusted at the year end.

6. The Company is in the process of issuing bonds for Rs 5000 million to meet its long term fund requirements.

The Board of Directors have taken on record the aforesaid quarterly results at the meeting held on October 31, 2001.

C Srinivasan
Director (Finance)