Bearing Manufacturer India,Exporter Bearings India

Quarter Ended December 03

NATIONAL ENGINEERING INDUSTRIES LTD. JAIPUR
REGD. OFFICE: 9/1 R. N. MUKHERJEE ROAD. CALCUTTA - 700001
'UNAUDITED FINANCIAL RESULTS (PROVISIONAL) FOR THE QUARTER ENDED 31.12.03

QTR ENDED 9 MONTHS ENDED ON YEAR ENDED
DESCRIPTION	QTR ENDED		HALF YEAR ENDED		YEAR ENDED
	31.12.03 Reviewed	31.12.02 Audited	31.12.03 Reviewed	31.12.02 Audited	31.03.03 Audited
1. SALES / INCOME FROM OPERATIONS	7323.89	7285.46	21739.72	20026.47	26942.31
2. OTHER INCOME	-5.87	54.08	95.33	98.65	152.05
	7318.02	7339.54	21835.05	20125.12	27094.36
3. TOTAL EXPENDITURE	6100.09	6074.43	17629.85	16572.32	22247.33
a) Increase-/Decrease(+) in stock in trade	472.84	664.13	-371.58	566.61	566.29
b) Consumption of raw material	2627.26	2637.77	8437.06	7455.13	10147.17
c) Staff cost	1155.19	1055.62	3816.59	3392.99	4453.50
d) Other expenditure	1844.80	1716.91	5747.78	5157.59	7080.37
4. INTEREST	453.56	585.86	1272.89	1815.54	2306.52
5. DEPRECIATION	362.30	388.96	1052.06	1166.70	1633.66
6. PROFIT BEFORE TAX & EXCEPTIONAL ITEM	402.07	290.29	1880.25	570.56	906.85
7. EXCEPTIONAL ITEM (EXPENDITURE UNDER VRS/ERS)	386.52	145.25	1028.01	405.92	528.47
8. PROFIT BEFORE TAX	15.55	145.04	852.24	164.64	378.38
9. PROVISION FOR TAXATION	-118.33	-16.23	-350.33	-16.99	-35.00
10. DEFERRED TAX ASSETS / LIABILITY	111.63	-68.09	-62.24	-69.02	-126.34
11. NET PROFIT (+) / LOSS (-) ( 6-7-8 )	8.85	60.72	439.67	78.63	217.04
12. PAID UP EQUITY SHARE CAPITAL ( Face value of each share Rs. 10 each )	80.00	80.00	80.00	80.00	80.00
13.RESERVE EXCL. REVALUATION RESERVE					7943.01
14. BASIC EPS FOR THE PERIOD(NOT ANNUALISED)	1.11	7.59	54.96	9.83	27.13
15. Aggregate of non-promoter's share holding	131146	131146	131146	131146	131146
Number of shares % of shareholding	16.39	16.39	16.39	16.39	16.39

QTR ENDED 9 MONTHS ENDED ON YEAR ENDED
SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED	QTR ENDED		HALF YEAR ENDED		YEAR ENDED
	31.12.03 Reviewed	31.12.02 Audited	31.12.03 Reviewed	31.12.02 Audited	31.03.03 Audited
Segment Revenue
a) Bearing Division	6984.04	6938.43	20621.94	18919.53	25382.86
b) TECHNICAL & CONSULTANCY SERVICES	28.48	69.77	186.68	282.64	328.69
c) Agency Services	59.17	123.07	330.23	279.66	461.23
d) Rubber Products & Others	210.34	189.36	638.03	612.68	858.08
Total Net Sales/Income from
Operations	7282.03	7320.63	21776.88	20094.51	27030.86
Less : Inter segment revenue	0.00	0.00	0.00	0.00	0.00
Net sale/income from operations	7282.03	7320.63	21776.88	20094.51	27030.86
Segment Results Profit(+)/Loss(-) before tax and interest from each segment)
a) Bearing Division	483.91	819.62	2115.95	2225.68	3023.42
b) TECHNICAL & CONSULTANCY SERVICES	-29.98	-109.57	-143.76	-172.65	-278.90
c) Agency Services	58.07	117.03	324.78	263.15	455.93
d) Rubber Products & Others	14.89	9.50	35.36	27.54	47.92
Segment wise profit before interest & tax	526.89	836.58	2332.33	2343.72	3248.37
Less : i. Interest	453.56	585.86	1272.89	1815.54	2306.52
ii. Other un-allocable expenditure	57.78	105.68	207.20	363.54	563.47
net off un-allocable income.
Total Profit before Tax	15.55	145.04	852.24	164.64	378.38
Capital Employed (Segment Assets-Segment Liabilities)
a) Bearing Division	17102.70	18325.99	17102.70	18325.99	18407.43
b) TECHNICAL & CONSULTANCY SERVICES	247.43	250.54	247.43	250.54	534.17
c) Agency Services	19.05	53.32	19.05	53.32	32.40
d) Rubber Products & Others	342.78	416.67	342.78	416.67	408.80
Total	17711.96	19046.52	17711.96	19046.52	19382.80

Notes:

1. The Company continues to adopt same accounting policies in respect of matters referred by the Auditors of the Company in their report for the year ended March 31, 2003, which are as follows:

a) Liability for leave encashment to employees is accounted for on cash basis.

b) Gratuity liability is accounted for to the extent of premium paid to LIC, which together with future payments would be sufficient to meet the liability as and when it arises (excluding the gratuity liability of contract labour at Newai, the amount whereof has not been determined.) The effect of the above non compliance upto March 2003 was Rs 1281.99 lacs. Since the above issues are not quantified at quarterly intervals, the impact of the same cannot be given for the current quarter / 9 Months ended Dec. 31, 2003.

c) No provision has been considered necessary in respect of certain doubtful debts, claims and advances aggregating to Rs.152.15 Lacs, as the Company is hopeful of recovering these amounts.

d) The Company has invested an amount of Rs.1694.79 lacs in the share capital of a listed company. The market value of the above investment as at 31th Dec., 2003 is Rs.1200.94 lacs .In the opinion of the management, the above investment being a long term strategic investment and also decline in the market value being temporary in nature, no provision thereagainst is required to be made in the accounts.

e) The Company has invested a total amount of Rs. 690.00 lacs in the share capital of an unlisted company. Further, a loan of Rs. 1356.62 lacs is also due from this unlisted company. As per the latest available audited financial statements of this company, its accumulated losses exceed its paid up capital. However, in view of the projected improved operations of the Company and having regard to the long-term involvement of the Company in this company, no provision is considered necessary on this account.

f ) No provision has been considered for claim/counter claim under conciliation proceedings, as the impact thereof is not ascertainable.

2. Due to change in the accounting policy with respect to valuation of inventories for the year ended 31st March 2003, the results for the quarter / 9 Months ended 31th Dec. 2002 has been recast.

3. The Company did not have any unresolved investor complaints as at the beginning/end of the quarter. During the quarter, the Company has not received any complaints.

4. Figures have been regrouped / rearranged wherever necessary.

5. The above results for the Quarter / 9 Months ended Dec.' 31, 2003,which have been subjected to a”Limited Review” by auditors of the Company and taken on record by the
Board of Directors of the Company at the meeting held on 28th Jan.' 2004

Place: New Delhi
Date: 28.01.2004

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