1. In view of the seasonal nature of company’s businesses including cyclicality in turbine despatches, the performance results of the quarter may vary.

2. The Board has, subject to the approval of the shareholders, recommended a final dividend of 60% (Rs 0.60 per equity share) for the accounting year 2007-08.

3. The results for the accounting year consider cane price at Rs 1100 per tonne for the season 2007-08, which was paid based on the interim order of the Supreme Court pending final decision in the matter.

4. The following accounting policies were changed during the year:

a) In accordance with the Accounting Standard (AS) 11 ´The Effect of Changes in Foreign Exchange Rates´, post capitalisation gains or losses arising from variation in foreign exchange rates relating to the fixed assets have been charged to the Profit & Loss account during the current accounting year and accordingly, profit before tax is lower by Rs 6.878 million.

b) The company has made provision for the employee benefits under Accounting Standard (AS) 15 ´Employee Benefits´ which has become applicable to the company for the current accounting year. Consequently, the employee cost for the year is higher by Rs 7.611 million and provision of Rs 14.228 million (net of tax) accrued up to September 30, 2007 has been adjusted with the General Reserves as per the transitional provisions of the accounting standard.

5. The Company has changed its accounting policy of recognition of income from carbon credit and accordingly. Income booked in Q3 FY 2008 has been reversed. Consequently, the profits of the quarter and the year ended September 30, 2008 are stated lower by Rs 90.20 million. The income from carbon credits accrued after March 31, 2007 for the eligible co-generation plants will now be accounted for in accordance with the changed accounting policy.

6. During the year, business segments have been re-categorised and accordingly corresponding figures of previous periods have been regrouped. Further, the figures of previous periods under various heads have been regrouped to the extent necessary.

7. Consolidated financial results include results of wholly owned subsidiaries and proportionate share of income / loss from associates. Abohar Power Generation Ltd has ceased to be a subsidiary during the year and its results have been consolidated till the date of cessation.

8. The above results were reviewed and recommended for adoption by the Audit Committee and approved by the Board of Directors of the Company at their meetings held on November 18, 2008 and November 19, 2008 respectively.

Dhruv M Sawhney
Chairman & Managing Director