P & L Account

CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED DECEMBER 31, 2006   Rs. in Million   Schedule 2006 2005 INCOME Operating income 15 61,915.78 53,676.83   Less excise duty   481.72 860.96     61,434.06 52,815.87 Other income 16 564.35 616.28   61,998.41 53,432.15 EXPENDITURE Materials 17 23,733.09 22,212.71 Manufacturing 18 3,098.76 2,549.40 Personnel 19 7,955.29 6,785.66 Selling, general and administration 20 13,866.94 13,231.94 Research and development 21 3,954.79 4,925.07   52,608.87 49,704.78 PROFIT BEFORE INTEREST, DEPRECIATION, AMORTIZATION AND IMPAIRMENT 9,389.54 3,727.37 Interest 1,036.32 671.16 Depreciation, amortization and impairment 22 1,842.88 1,444.52 PROFIT FROM OPERATIONS Continuing operations 6,510.34 1,371.22 Discontinued operations – 240.47 PROFIT FROM OPERATIONS BEFORE EXCEPTIONAL ITEMS 6,510.34 1,611.69 Interest in Joint venture written off – (121.80) Profit from sale of undertaking and a subsidiary – 454.95 PROFIT BEFORE TAX 6,510.34 1,944.84 Provision for tax 23 1,356.74 (697.57) PROFIT AFTER TAX 5,153.60 2,642.41 Minority interests 50.21 25.35 PROFIT AFTER TAX AND MINORITY INTERESTS 5,103.39 2,617.06 Tax - earlier years 148.06 (61.78) Balance as per last balance sheet 1,253.94 2,532.50 Transfer from Foreign projects reserve 22.95 30.65 BALANCE AVAILABLE FOR APPROPRIATION 6,528.34 5,118.43 APPROPRIATIONS Dividend   Interim 3,168.94 931.11   Final (proposed) – 2,235.55 Tax on dividend 444.44 447.83 Transfer to General reserve 450.00 250.00 Surplus carried forward 2,464.96 1,253.94   6,528.34 5,118.43 EARNINGS PER SHARE (Rs.) 24 Including discontinued operations and exceptional items   Basic 14.09 6.87   Diluted 13.17 6.84 Excluding discontinued operations and exceptional items   Basic 14.09 5.70   Diluted 13.17 5.69 SIGNIFICANT ACCOUNTING POLICIES 25 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 26 The schedules referred to above form an integral part of the consolidated financial statements. This is the consolidated profit and loss account referred to in our report of even date.   On behalf of the Board of Directors For WALKER, CHANDIOK & CO Chartered Accountants TEJENDRA KHANNA Chairman   VINOD CHANDIOK Partner Membership No. 10093   DR. BRIAN W. TEMPEST Chief Mentor & Executive Vice Chairman MALVINDER MOHAN SINGH CEO & Managing Director   ATUL SOBTI Chief Operating Officer & Whole-time Director   RAM S. RAMASUNDAR President & CFO Place : Gurgaon Dated : March 29, 2007 SUSHIL K. PATAWARI Secretary