1. Consequent to the receipt of the approval from the shareholders by postal ballots:

a) Information and Communication segment has been sold with effect from August 01, 2007 to Siemens Enterprise Communication Pvt. Ltd. (SECPL) a 100% subsidiary of the parent company, Siemens AG, Germany.

b) Building Technologies segment has been sold and transferred to Siemens Building Technologies Pvt. Ltd., a subsidiary of the Company, with effect from October 01, 2007.

c) Automotive segment has been sold and transferred to Siemens VDO Automotive Components Pvt. Ltd a 100% Subsidiary of its parent company, Siemens VDO Automotive Components, AG, Germany with effect from December 01, 2007.

d) Consequently the figures for the twelve months ended September 30, 2008 are not strictly comparable with the figures of the twelve months ended September 30, 2007.

e) The above divisions constitute separate reporting segments as disclosed in the segment wise report.

2. The Board of Director of the company approved the merger of Siemens Industrial Turbomachinary Services Pvt Ltd (SISTS) with the Company at the Board Meeting held on November 22, 2007, effective April 01, 2008. The Karnataka High Court vide Order dated September 26, 2006, have approved the merger. Consequently, the financial results for the quarter ended September 30, 2008 include the results of SITS for the period April 01, 2008 to September 30, 2008. As the financials of SITS for the six months are merged with the Company, the figures for the corresponding previous quarter and year are not strictly comparable. SITS is shown as part of Power segment under the Segment Reporting.

3. In accordance with the established practice in relation to construction contracts, contract revenue is calculated based on the ratio of costs incurred to total estimated costs to complete the project. On revision of the costs to complete for certain projects, there is a reversal of turnover amounting to Rs 1,172 million during the year (including Rs 129 million during the quarter ended September 30, 2008) and a provision for estimated losses aggregating to Rs 551 million during the year (after reversal of provision of Rs 365 million during the quarter ended September 30, 2008).

4. Exceptional income for the standalone parent and the consolidated group consists of profit on sale of Automotive segment of Rs 1,235.15 million. In addition, the standalone parent also includes profit on sale of Building Technologies segment of Rs 10.64 million to a subsidiary.

5. Net Sales and services for the twelve months ended September 30, 2008 and quarter ended September 30, 2008 consists of:

For the Quarter ended September 30, 2008:

- Discontinued Operations : Nil
- Continuing Operations : Rs 24216.11 million

For Year ended September 30, 2008

- Discontinued Operations : Rs 231.60 million
- Continuing Operations : Rs 82723.85 million

6. Profit after tax for the twelve months ended September 30, 2008 and quarter ended September 30, 2008 consists of:

For the Quarter ended September 30, 2008:

- Discontinued Operations : Nil
- Continuing Operations : Rs 2251.94 million

For Year ended September 30, 2008

- Discontinued Operations : Rs 5.43 million
- Continuing Operations : Rs 5927.83 million

Profit after tax attributable to discontinued operations of the company has been calculated using the statutory tax rates for respective period / year.

7. The Board of Directors and Shareholders of the Company at its Annual General Meeting held on January 31, 2008 had approved the issue of Bonus Shares in the ratio of 1:1, i.e. one additional new share for every share held. Accordingly the number of equity shares shown under Public Shareholding´ has increased from 75,559,555 to 151,119,110 for the quarter ended and twelve months ended September 30, 2008. Further in accordance with Accounting Standard 20, Earnings Per Share (EPS) prescribed by Rule 3 of the Companies {Accounting Standards) Rules, 2006 the EPS for the comparative period has been recomputed taking into account the bonus issue.

8. The Board of Directors have recommended a final dividend of 150% for the year ended September 30, 2008, amounting to Rs. 1011.48 million.

9. Figures for the previous period have been regrouped wherever necessary to make them comparable.

10. The above financial results were reviewed and approved by the Audit Committee and the Board of Directors approved the same at their meeting held on November 25, 2008.

Dr Armin Bruck
Managing Director