1. Segment-wise Revenue, Results, and Capital Employed prepared in accordance with AS-17 “Segment Reporting” for the current quarter and twelve months ended September 30, 2008 includes figures for a new segment - Power Segment in addition to the Sugar and Distillery Segments.

2. The Board of Directors have recommended a dividend of 60% (Rs 0.60 per share) on the equity shares of the face value of Re 1/- each, subject to the approval of shareholders.

3. The Hon´ble High Court of Allahabad while disposing the various Writ Petitions filed by the Company and other sugar producing factories, by its Order dated December 19, 2007 had, inter alia, quashed the State Advised Price (SAP) for the season 2006-07 being arbitrary and unreasonable. Based on the legal advice, the Company in previous year had accounted for Sugar Cane liability for the season 2006-07 at Statutory Minimum Price (SMP) fixed by the Central Government.

Subsequently Hon’ble Supreme Court on a Special Leave Petition had directed the sugar companies by its Interim order dated February 27, 2008 to pay @ Rs 118/- per quintal for general variety of sugar cane and accordingly the company has fully discharged its cane liability. Necessary adjustment in accounts arising out of difference between SAP and SMP amounts to Rs 4652.40 million will be considered as and when the matter is finally decided.

4. During the current year the Company has accounted for Sugar Cane Purchases for the season 2007-08 @ Rs 110/- per quintal pursuant to the Interim Order dated September 08, 2008 of the Hon’ble Supreme Court of India. The company has fully discharged it cane liability as per the said interim order. Necessary adjustment in accounts arising out of difference between SAP of Rs 125 per quintal and Rs 110/- per quintal amounts to Rs 1054.60 million will be considered as and when the matter is finally decided.

5. Given the seasonal nature of the Industry, the results of any quarter may not be a true and/or proportionate reflection of the annual performance of the Company.

6. The Company has implemented Accounting Standard AS-15 "Employee Benefits" from the current accounting year, in accordance with transitional provisions of the said Accounting Standard, the liability of Rs 2.40 million (net of tax) as at the beginning of the year has been adjusted against the opening balance of revenue reserves.

7. During the quarter, the Company sold its entire shareholding of Bajaj Aviation Pvt Ltd (BAPL) (formerly known as Bajaj Hindusthan Holdings Pvt Ltd) to Bajaj Eco-Tec Products Ltd (BEPL) making BAPL a subsidiary of BEPL and a subsidiary of the Company. BAPL, originally incorporated to undertake NBFC business now proposes to venture into Aviation business to undertake chartering services.

8. During the quarter, Bajaj Eco-Chem Products Pvt Ltd (BECPPL), a wholly owned subsidiary of the Company was incorporated for the purpose of exploring the business of manufacture and sale of specialty chemicals. An initial investment of Rs 6.10 million has been made. NECPPL is carryings out required feasibility studies in this regard. The company is also in the process of acquisition of land at Dahel SEZ, Gujarat.

9. Figures have been regrouped / rearranged / recasted, wherever necessary.

10. The above results have been reviewed by the audit committee and approved by the Board of Directors at their respective meetings held on December 21, 2008.

Shishir Bajaj
Chairman & Managing Director