1. The above audited results were reviewed by the Audit Committee and approved by the Board of Directors of the Company at its meetings held on June 30, 2009.

2. The Statutory Auditors’ observations in their audit report on the accounts of the Company for the year ended March 31, 2009 along with our comments thereon are as Follows.

In respect of the Hoera unit, the operation of which is under suspension since September 15, 2003, the Company (other than gratuity and leave liability, which were actuarially ascertained and provide for based on the information available till date of suspension) has neither ascertained nor provided for liability towards salaries and wages, provident fund, employees state insurance scheme and other employee benefits since the aforesaid date of suspension.

In view of the above, the auditors were unable to comment on the extent of compliance of the recognition, measurement and disclosure requirements of Accounting Standard 15 on ´Employee Benefits´.

In line with the legal opinion obtained for its Hoera Unit, the Company is not liable and does not require to make any provisions with respect to salaries and wages and other retrial benefits for the Suspension period. Accordingly the Company (other than gratuity and leave liability, which were actuarially ascertained and provided for based on the information available till date of suspension) has neither ascertained nor provided for salaries and wages, liability towards provident fund, contribution to employee state insurance scheme, etc for the employees of the said unit since the suspension of operation.

3. During the year along a rehabilitation scheme was filed with the Honorable Board for Industrial & Financial Reconstruction pursuant to the arrangement between Madras Aluminium Co. Ltd,and Essdee Aluminium Ltd.(EDAL). This scheme was sanctioned by the Hon’ble BIFR vide its order dated September 02, 2008. The first closing as per the arrangement was achieved on November 19, 2008. Pursuant to this order and the first closing he Company has issued the following.

Equity Shares
13,60,00,000 Equity Shares of Rs 1 each at par.

Preference Shares.

a) 12,50,000 0.01% Optionally Convertible Redeemable Non Cumulative Preference Shares of Rs 100 each redeemable at par on November 20, 2028.

b) 96,28,115, 0.01% Non Convertible Redeemable Non Cumulative Preference Shares of Rs 100 each redeemable at par on November 20, 2028.

c) 1,39,53,423 0.01% Non Convertible Redeemable Non Cumulative Preference Shares of its 100 each redeemable at par on November 20, 2028.

4. Subsequent to the Company becoming a subsidiary of EDAL it was estimated that significant investments would be needed for its rehabilitation. This was also necessitated by the recent economic meltdown. Accordingly, the Monitoring Agency, Kotak Mahindra Bank Ltd. duly appointed by the BIFR is in the process of filing a modified reliabililtition scheme with the Hon’ble BIFR for merger of the Company into EDAL with effect from April 01, 2008.

5. The operations at Taratala and Hoera units of the Company are under suspension since April 2002 and September 2003 respectively. The work suspension at Hoera unit was lifted on April 27, 2009.The Company has now done an assessment of the value in use of these asset as well as all other fixed assets. Base on this assessment the fixed assets have been considered as fully impaired us on March 31, 2009 to the extend of Rs 56.80 Crores

6. The Company has only one reportable segment in line with Accounting Standard 17 “Segment Reporting”.

7. Figures For the previous periods have been regrouped / rearranged wherever necessary.

Sudip Dutta
Chairman