Unaudited Financial results for the Quarter ended 30th June, 2004.

FINANCIAL RESULTS

Unaudited Financial results for the Quarter/ Half Year ended 30th September, 2004.

(Rupees in Lacs)

Particulars		Quarter ended		Six months ended		Year ended (Audited)
Particulars		30.09.2004	30.09.2003	30.09.2004	30.09.2003	31.03.2004 (Audited)
1	Net sales/Income from Operations	24307	17178	41608	33309	72920
2	Other Income	263	179	535	512	983
3	Total Expenditure
	a) Consumption of raw materials	16629	10922	28062	21181	46991
	b) Increase/Decrease in Stock	240	370	484	1012	1351
	c) Staff Cost	2668	2686	5256	5280	10950
	d) Other Expenditure	3880	3924	7339	6888	14947
		23417	17902	41141	34361	74239
4	Profit(+)/Loss(-) before Interest and Depreciation (1+2+3)	1153	-545	1002	-540	-336
5	Interest	623	1368	1889	2731	5535
6	Depreciation	1027	982	2054	1968	4120
7	Provision for Tax
	a) Wealth Tax	2	3	4	5	9
	b) Deferred	(997)		(1905)		(1905)
8	Profit/Loss (-) before Tax (4-5-6)	-497	-2895	-2941	-5239	-9991
9	Net Profit/Loss(-) (7-8)	-499	-1901	-2945	-3339	-8095
10	Paid up equity share capital* (Face Value=Rs10)	16117	16117	16117	16117	16117
11	Reserves (excl. revaluation reserves)					448
12	Basic/Diluted earnings per share (Rs.)	-0.31	-1.18	-1.83	-2.07	-5.02
13	Aggregate of non promoter shareholding
	- No of shares	113925428	113650428	113925458	113650458	113651428
	-Percentage of shareholding	70.69%	70.51%	70.69%	70.51%	70.52%
* Excluding amount paid in respect of forfeited shares

Notes:
1) The company adopts cenvat inclusive method of accounting and therefore, excise duty is accounted as expenditure net of Cenvat benefits. Accordingly, net sales figure has been derived by deducting from gross sales value the amount of such Excise Duty.

2) i) The Company continues to adopt the same accounting policies in respect of the matters referred to by the Auditors of the Company in their report for the year ended 31st March 2004, which are as follows: -
a) Leave liability in respect of employees is accounted for to the extent of actual encashment. b) Gratuity liability is accounted for to the extent of actual payments, which together with future payments would be sufficient to meet the liability as and when it arises. c) Future monthly payments to employees under Voluntary Early Retirement Schemes are accounted for as and when paid. d) Cenvat element is included in valuation of inventories in view of the requirement of Section 145A of the Income Tax Act, 1961. e) No provision has been considered necessary in respect of certain doubtful debts, claims and advances, as the Company is hopeful of recovering these amounts. f) Deferred Tax Assets has been accounted for till 30th September 2003 as per Accounting Standard 22. No credit for Deferred Tax Assets has been considered subsequently in the accounts, pending review of the company�s business plans in view of evolving business scenario.
ii) The combined effect of the above accounting policies (excluding Point No. 2(i) (e) above) would result into an increase in losses upto 31st March 2004 by Rs.8977 lacs and for the quarter and half year ended 30th September 2004 by Rs.81 lacs and Rs.130 lacs respectively.

3) The financial restructuring of the company including reduction in the interest rates and deferment of term loan repayments has been approved by the Corporate Debt Restructuring (CDR) Cell. As this restructuring is effective from 1st April 2004, interest for the six months ended 30th September 2004 has been provided at the reduced rates approved by the CDR Cell.

4) As per independent valuation, the estimated realizable value of assets of certain loss making units, is more than the written down value as per books and thus there is no impairment of assets requiring provision under Accounting Standard 28, which has become mandatory from 1st April,2004.

5) Prior period figures have been re-grouped/rearranged, wherever necessary.

6) Number of Investor complaints :-
i) Pending at the beginning of this quarter � 7
ii) Received during the quarter � 50
iii) Disposed off during the quarter � 54
iv) Lying unresolved at the end of the quarter � 3
7) The above results have been taken on record at the meeting of the Board of Directors of the Company held on 29th October, 2004.
8) The quarterly results have been reviewed by the auditors as required under clause 41 of the Listing Agreement.

Segment-wise Revenue, Results and Capital Employed

(Rupees in Lacs)

Particulars		Quarter ended		Six months ended		Year ended (Audited)
Particulars		30.09.2004	30.09.2003	30.09.2004	30.09.2003	31.03.2004
1	Segment Revenue (Net Sales)
	a) Automobiles	21031	14874	36143	29547	63391
	b) Automatic Transmissions	3244	2304	5410	3762	9522
	c) Others	32	0	55	0	7
	Total	24307	17178	41608	33309	72920
	Less: Inter Segment Revenue	0	0	0	0	0
	Total Net sales/ income from operations	24307	17178	41608	33309	72920
2	Segment Results
	Profit/Loss(-) before Interest and Taxes
	a) Automobiles	-704	-1778	-2292	-3104	-6085
	b) Automatic Transmissions	870	539	1362	763	2217
	c) Others	-25	-46	-50	-95	-229
	TOTAL	141	-1285	-980	-2436	-4097
	Less: Interest	623	1368	1889	2731	5535
	Less: Unallocable Expenses
	Net of Unallocable income	15	242	72	72	359
	Profit/loss(-) before Tax	-497	-2895	-2941	-5239	-9991
3	Capital Employed in the reportable segments
3	(As at the end of the period)
	a) Automobiles	30251	38239	30251	38239	33406
	b) Automatic Transmissions	6610	5950	6610	5950	6175
	c) Others	168	76	168	76	72
	Capital Employed in reportable segments	37029	44355	37029	44355	39653

The products covered in the reportable business segments are as follows: -

Automobiles	Passenger cars, Utility Vehicles & Trucks and Components & Accessories thereof.
Transmissions	Automatic Powershift Transmissions for off highway and on highway applications & Components thereof.