Audited financial results for the Twelve months ended 31st March, 2003

Notes:

1. Figures for the quarter and six months ended 31st March, 2003 are not comparable with the previous year on account of the following :


a) Staff cost for the year ended 31st March, 2003, includes additional one time charge for gratuity, leave encashment and pension for past period aggregating Rs 634 lakhs consequent upon reduction in interest rates.
b) Pursuant to the order of the Bombay High Court dated 27th September, 2002, the balance in the Deferred Revenue Expenditure (towards past VRS) upto 27th September, 2002, aggregating Rs 5561 lakhs has been adjusted against Share Premium Account. Consequently, the charge to Profit and Loss account towards amortisation of past VRS is lower by Rs 2807 lakhs.
c) Transfer of Room Air-conditioners manufacturing facility at Dadra to a joint venture company effective 1st October, 2001.
d)The Bombay High Court has by its order dated 5th September,2002, approved of the amalgamation of Virat Investment Company Limited (Virat) and Voltas Systems Limited (VSL), wholly owned subsidiaries, with the Company effective 1st April, 2002. The results for the twelve months of the current year also include results of Virat and VSL , as given below:

Rs in Lakhs
Particulars	Virat	VSL
Total income	593.33	0.23
Total Expenditure	164.32	0.07
Profit before tax	429.01	0.16

2. Extraordinary Items (Net) for the year ended 31st March, 2003, comprise: Profit on sale of Properties/transfer of development rights - Rs 1509.25 lakhs (previous year - Rs 3685.87 lakhs), Write back of diminution in value of investments - Rs 884.58 lakhs (previous year - Rs 717.71 lakhs), Net Provision for Doubtful Advances written back - Rs 11.03 lakhs (previous year -Nil), Amortisation of VRS expenses - Rs 79.98 lakhs, (previous year - Rs 3077.95 lakhs), Provision for contingency - Rs 1000 lakhs (previous year - Rs 200 lakhs), Net Loss on sale of Trade Investments - Rs 787.81 lakhs (previous year - Nil), Other expenses - Rs 37.72 lakhs, (previous year - Rs 1271.66 lakhs)
.
3. The Company has retrenched employees of certain discontinued activities, after getting the approval of the Labour Commissioner, and the retrenchment compensation has been accounted as a cost in the Companys Accounts. Some of the employees have challenged the order of the Labour Commissioner in High Court and not accepted the retrenchment compensation. Since the retrenchment compensation has already been accounted, the Company has not accounted for their salary subsequent to the date of retrenchment.
4. Provision for taxation for the year ended 31st March, 2003 includes foreign income tax of Rs.119.54 lakhs (previous year - Rs 207.46 lakhs) and wealth tax of Rs.10 lakhs (previous year Rs 8 lakhs).
5. The Board of Directors have recommended a dividend @ 25 % for the year- 2002-03 (previous year - 18%).
6. The above results have been taken on record by the Board of Directors at its Meeting held on 27th June, 2003
.

Notes on Consolidated Financial Results for the year ended 31st March, 2003

1) The following Subsidiaries, Associates and Joint Ventures have been considered for the purpose of preparing Consolidated Financial Accounts as per Accounting Standard on :

1. Consolidated Financial Statements ( AS 21 )
2. Accounting for Investments in Associates in Consolidated Financial Statements ( AS 23 )
3. Financial Reporting of Interests in Joint Ventures ( AS 27 )

2. Current years figures are in accordance with AS 21, AS 23 , AS 27. Accordingly, figures for the previous year are not comparable as these were prepared considering only AS 21

A. Soni
Managing Director