EPS is Basic

1. The above results were reviewed by the Audit Committee in it´s meeting held on June 29, 2007 and taken on record at the meeting of Board of Directors held on that date.

2. The aggregate of public share holding was 147,225,151 equity shares 12.92 % as on March 31, 2007 (147,224,047 equity shares 25.36% as on March 31, 2006).

3. The Company is engaged in only one segment viz. Steel, hence there are no reportable segments as per Accounting Standard "AS-17".

4. The Company is of the view that Net Deferred Tax Assets of Rs 2382.30 million will be fully utilised in the years to come based on all relevant facts such as increased production capacity, backward and forward integration achieved, past results being in excess of earlier projections, improved margin, consistent profits made in the last four years etc. However, Auditors have disclaimed their ability to comment on the same as Company´s view is based interalia on future projections.

5. (a) The Consolidated result includes results of 100% Subsidiary Companies Essar steel (Jharkhand) Ltd , Essar steel (Orissa) Ltd and Essar Steel Trading (FZE).

(b) Share of profits from Equity in Associate Companies viz Essar Power Ltd (36.26 %), Bhander Power Ltd (26%), Essar Telecom Infrastructure Pvt Ltd (26%) and Essar Steel (Hazira) Ltd (26.01%), is reflected in consolidated result after PAT under the head Share of Profit/ (Loss) from Associate Companies. Consolidation was not required in the previous year hence corresponding previous year´s figures has not been given.

6. The figures have been regrouped / reclassified wherever necessary. The figures for the quarter ended March 31, 2007 are not comparable with figures for the quarter ended March 31, 2007 as the figures for the current quarter are after amalgamation of Hy-grade Pellets Ltd and Steel Corporation of Gujarat Ltd with the Company.

Robin Banerjee
Director (Finance)