1. The above results have been reviewed by the Audit Committee and taken on record by the Board of Directors at its meeting held on June 30, 2009.

2. The Auditorīs comments in their report on the Annual Accounts for the year 08-09 have been addressed as under:

i) The Company is in discussion with CDR lenders for further restructuring/modification in the CDR package so that its account with lenders can be regularised.
ii) The provision of interest has been made as per CDR approved package.
iii)The Company has made adequate provisions for doubtful debts.
iv) Company obtains the confirmations from sundry debtors, creditors, lenders etc. in ordinary course of business.
v) The Company has already made the necessary application u/s 198,269, 309 and 311 of the Companies Act, 1956 with the Central Government seeking their approval for the payment of Managerial remuneration during the financial year 2007-08 and 2008-09.
vi) The Company is in process of determining the impairment loss, if any, on its assets, in terms of the AS-28, effect of which will be given on such determinations.

3. In view of high volatility in foreign exchange, foreign currency monetary items outstanding at the quarter end, which were valued at quarter end rate whereby loss on foreign exchange of Rs. 2668.92 Lacs has been provided during the year which is included under the head of exceptional Items.

4. As provided under CDR package, the company is providing interest on balooning basis. The applicable rate on this basis is 14.25% p.a. during the year as compared to 4.5% p.a. in the previous year. This has resulted in higher amount of interest being charged to Profit & Loss Account in the current year.

5. Investors Relation Contact : Investor@hfcl.com

6. Since the Board of Directors of one of its listed subsidiary company has approved their annual audited accounts today i.e. June 30, 2009, the consolidated accounts of the Company could not be prepared. The Company shall place before the Board and publish the consolidated results at the earliest.

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

Mahendra Nahata
Managing Director