P & L Account

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED DECEMBER 31, 2006     Rs. in Million   Sche dule 2006 2005 INCOME   Operating income 15 40,259.40 36,517.69 Less : Excise duty   481.72 820.00     39,777.68 35,697.69 Other income 16 381.91 904.80     40,159.59 36,602.49 EXPENDITURE   Materials 17 16,323.82 15,048.92 Manufacturing 18 1,997.09 1,752.91 Personnel 19 3,310.85 3,016.52 Selling, general and administration 20 8,582.78 8,741.76 Research and development 21 3,863.35 4,863.60     34,077.89 33,423.71 PROFIT FROM OPERATIONS BEFORE INTEREST, DEPRECIATION, AMORTIZATION AND IMPAIRMENT   6,081.70 3,178.78 Interest   584.44 264.11 Depreciation, amortization and impairment 22 1,067.50 1,013.33 Profit from operations   Continuing operations   4,429.76 1,731.68 Discontinued operations   – 169.66 Profit from operations before exceptional items   4,429.76 1,901.34 Profit from sale of undertaking   – 112.29 Profit before tax   4,429.76 2,013.63 Provision for tax 23 624.33 (223.35) Profit after tax   3,805.43 2,236.98 Tax - earlier years   145.84 (116.56) Balance as per last balance sheet   560.34 2,270.05 Transfer from Foreign projects reserve   22.95 30.65 Balance available for appropriation   4,534.56 4,421.12 APPROPRIATIONS   Dividend   Interim   3,168.94 931.11 Final   – 2,235.55 Tax on dividend   444.44 444.12 Transfer to General reserve   450.00 250.00 Surplus carried forward   471.18 560.34     4,534.56 4,421.12 EARNINGS PER SHARE (Rs.) 24 Including discontinued operations and exceptional items   Basic   10.60 5.70 Diluted   9.87 5.68 Excluding discontinued operations and exceptional items   Basic   10.60 5.14 Diluted   9.87 5.12 SIGNIFICANT ACCOUNTING POLICIES 25 NOTES TO THE FINANCIAL STATEMENTS 26 The schedules referred to above form an integral part of the financial statements This is the 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