Tata Chemicals Ltd has announced the following unaudited Consolidated results for the quarter ended December 31, 2009: The Group has posted a net profit of Rs 2123.70 million for the quarter ended December 31, 2009 where as the same was at Rs 911.70 million for the quarter ended December 31, 2008. Total Income is Rs 26562.20 million for the quarter ended December 31, 2009 where as the same was at Rs 36833.80 million for the quarter ended December 31, 2008. - Figures of the corresponding period in previous year are not comparable for the following reasons: a. During the previous year, the Company in its annual accounts had exercised the option under notification dated March 31, 2009 issued by the Ministry of Corporate Affairs and accordingly, the exchange differences arising on revaluation of long term foreign currency monetary items are recognised over the shorter of the maturity period or March 31, 2011. Had impact of this notification been given for the financial results for the quarter and nine months ended December 31, 2008, the amount of notional exchange loss during that quarter and nine months would have been lower by Rs. 3879 lakhs and Rs. 30923 lakhs respectively (included in item no. 8(a)), correspondingly, the profit after tax for the quarter and nine months ended December 31, 2008 would have been higher by Rs. 2561 lakhs and Rs. 20412 lakhs respectively. b. Rallis India Ltd (Rallis) had become an associate of the Company in August 2009. Consequent to the preferential allotment of 980,000 equity shares by Rallis to the Company in November 2009, the effective holding of the Company in Rallis has become 50.06%. Accordingly. Rallis has become the subsidiary of the Company from associate and from the said date it is consolidated on a line by basis. Net Profit of the Group for the quarter and nine months ended December 31, 2009 includes Rs. 1192 lakhs and Rs. 2159 lakhs respectively, on account of Rallis. c. During the quarter ended December 31, 2008, two of the Investment Subsidiaries changed their functional currency from GBP to USD. Had the subsidiaries reported their accounts for the quarter ended December 31, 2008. adopting the USD as a functional currency from the beginning of that year, exchange loss for the said period would have been higher by Rs. 4972 lakhs (included in item no.8(a)), correspondingly profit for that quarter would have been lower by the same amount. d. The actuarial gains and losses on the funds for employee benefits (pension plans) of the overseas subsidiaries for the period from April 01, 2009 have been accounted in 'Reserves and Surplus' in the consolidated financial statements in accordance with the generally accepted accounting principles applicable and followed in the respective country of incorporation as permitted by AS 21 instead of the practice followed in the previous year of recognising such gains / losses in the Profit and Loss Account. The Management is of the view that due to volatility and structure of the pension fund, such different accounting treatment is permitted by AS 21. Had the Company followed the practice of recognising the actuarial gains and losses of pension plans of the overseas subsidiaries in the Profit and Loss Account, the net profit after tax of the Group for the quarter and nine months ended December 31, 2009 would have been lower by Rs. 1931 lakhs and Rs. 21131 lakhs respectively.
Source: BSECourtesy moneycontrol.com
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