Expenditure includes

Increase/Decrease in stock in Trade Rs 3530.80 million
Consumption of Raw Material Rs 16368.40 million
Staff Cost Rs 10130.60 million
Consumption of Stores & Spares Rs 4190.00 million
Power & Fuel Rs 5609.10 million
Other expenditure Rs 6628.60 million

EPS is Basic & Diluted

Status of Investors Complaints for the quarter ended December 31, 2003

Complaints pending at the beginning of the quarter NIL

Complaints received during the quarter 7

Complaints disposed off during the quarter 6

Complaints unresolved at the end of the quarter 1


1. The results for the quarter / nine months ended December 31, 2003 were taken on record at the Board of Directors at its meeting held on January 29, 2004.

treatment given to Statutory Auditors comments in their report on the accounts for the year 2002-03 is as under :

- The Company has equity investments of Rs. 3749.40 million in its subsidiary company, the Indian Iron & Steel Co. Ltd., ( IISCO ) a sick company under Board for Industrial and Financial Reconstruction ( BIFR ) .BIFR has approved the revival plan of IISCO which is under implementation. In view of above and also considering the long term nature of these investments, there is no permanent diminution in the value of investments and thus no provision thereof has been made in the accounts.

The Agreement towards pay revision for employees have been finalised notionally with effect from January 1, 1997 and implemented from January 1, 2001. The adhoc adjustable advance interim relief paid for the period January 1, 1997 to December 31, 2000 of Rs 6235.40 million (including Rs 2019 million during the current nine months) has been provided for in the respective years. The matter relating to settlement of arrears of pay revision is to be discussed separately with the employees keeping in view the financial health of the Company. Liability, if any, will be provided on settlement. The Company has restored the Leave Travel Concession (LTC)/Liberalised Leave Travel Concession (LLTC) facility effective from current financial year. Liability thereof as incurred is being provided for in the accounts.

Adhoc recoverable advances/dues from Hindustan Steelworks Construction Ltd (HSCL) against contracts relating to modernisation of Durgapur Steel Plant have been treated as Capital Expenditure and Depreciation provided pending final outcome of conciliation proceedings. Similarly adequate provision have been made against other dues from M/s HSCCL & M/s TPE, Russia.

4. Deferred tax liabilities of Rs 5450 million have been recognised in the nine months as per Accounting Standard - 22 of the Institute of Chartered Accountants of India. However, in view of substantial unutilised deferred tax assets, an equivalent amount of deferred tax asset also has been recognised. An amount of Rs 311.40 million has been provided keeping in view the previous of Minimum Alternate Tax (MAT) and Rs 154.50 million towards income tax of capital gains on disposal of assets / dividend receipts for previous year.

5. In terms of provisions of Accounting Standard-26 on Intangible Assets, the carrying amount of deferred revenue expenditure (DRE) as at April 01, 2003 has continued to be amortised in line with the clarification of Institute of Chartered Accountants of India. The expenses, which were hitherto treated as DRE, have been charged to revenue in the current year in line with AS 26 resulting in lower profit of Rs 509.60 million. The accounting policy relating to provision towards non-moving stores and spares has been modified resulting in lower profit by Rs 403.20 million during the nine months.

S C K Patne
Director