Tisco net dips 13, sales drop

The operating profit during the year amounted to Rs 936.65 crore against Rs 995.34 crore. After adding other income, the profit before interest, depreciation, employeeseparation compensation and taxes, however, was higher at Rs 1114.43 crore Rs 1078.43 crore. After interest of Rs 301.56 crore Rs 259.68 crore, depreciation of Rs 382.18 crore Rs 343.23 crore and employee separation compensation of Rs 115.46 crore Rs 112.19 crore, the profit before taxation amounted to Rs 315.23 crore against Rs 363.33 crore. A sum of Rs 33 crore Rs 41.25 crore has been provided for taxation.

After certain adjustments and adding surplus brought forward from previous year of Rs 81.52 crore Rs 82.42 crore, the disposable profit amounted to Rs 323.79 crore against Rs 333.50 crore. The proposed dividend will absorb Rs 147.11 crore Rs 147.25 crore, tax on dividend will absorb Rs 16.18 crore Rs 14.73 crore, general reserve Rs 70 crore Rs 90 crore and the balance surplus of Rs 90.50 crore Rs 81.52 crore has been carried forward.

The company had issued 2.25 per cent foreign currency convertible bonds aggregating 100 million at par in 1993-94. As on March 2, 1999 the lastdate for conversion as per the terms of the issue, bonds aggregating 1,914,000 were converted in ordinary shares of the company. The balance of 98.086 million has been redeemed on March 31, 1999.

The company has been implementing a series of early separation schemes ESS for its surplus employees since 1994-95. The estimated expenditure pertaining to this was being amortised over five years upto March 1998. However, on the basis of detailed studies, it has been determined that the average period for which the benefits of these schemes by way of reduced costs are available to the company exceeds ten years. Accordingly, the amount provided has, with effect from the current year, been amortised equally over a period of ten years from the year of provision or the balance of the period in respect of each scheme. As a consequence of this change, the profit for the year is higher by Rs 76.69 crore.

The main units of Phase IV of the modernisation programmes increase in hot strip capacity by one mtpa to twomtpa have been put into commercial production from January 1999.

The company signed an agreement to sell its cement division to an Indian affiliate for which the shareholder8217;s approval was obtained on February 16, 1999. Pending receipt of certain statutory approvals, the transaction has not yet been concluded and was therefore not reflected in the accounts for 1998-99.