1. The actuarial gains and losses on funds for employee benefits (pension plans) of Tata Steel Europe Ltd for the period from April 01, 2008 have been accounted in Reserves and Surplus in the consolidated financial statements in accordance with IFRS principles and permitted by Accounting Standard 21 instead of the practice followed in the previous year of recognising such gains / losses in the profit & loss account. This treatment is consistent with the accounting principles followed by Tata Steel Europe and earlier by Corus Group plc. under IFRS. Had the company followed the practice of recognising changes in actuarial valuations of pension plans of Tata Steel Europe in the profit and loss account, the consolidated Profit after Taxes, Minority Interest and Share of profit of Associates for the year ended March 31, 2009 would have been lower by Rs. 5,496.58 crores.

2. The Company and its Indian subsidiaries have opted for accounting the exchange differences in accordance with Companies (Accounting Standards) Amendment Rules 2009 relating to Accounting Standard 11 which allows foreign exchange differences on long-term monetary items to be capitalised to the extent they relate to acquisition of capital assets and in other cases to amortise over the period of the monetary asset / liability or the period upto March 31, 2011 whichever is earlier, retrospectively from April 1, 2007.

As a result: (a) exchange translation gain of Rs.529.15 crores (in consolidated results Rs.530.03 crores) recognised in the previous year ended March 31, 2008 has been reversed by debit to General Reserve, (b) exchange translation loss of Rs. 45.58 crores including Rs. 23.30 crores relating to previous year (in consolidated results Rs. 54.81 crores including Rs.22.42 crores relating to previous year) has been adjusted to the cost of capital assets and (c) Rs.30.79 crores being amortisation of cumulative net loss (including gains of the previous year) has been charged to profit & loss account. Had the Company followed the practice of recognising the translation gain / loss in the profit & loss account, the Net Profit for the year ended March 31, 2009 would have been lower by Rs. 889.47 crores and the consolidated Profit after Taxes, Minority Interest and Share of profit of Associates for the year ended March 31, 2009 would have been lower by Rs. 899.58 crores.

3. Restructuring, impairment and disposals included in exceptional items, relate to disposal / impairment of assets and restructuring arising out of the ´Fit for the Future´ programme at Tata Steel Europe.

4. Value of inventories of raw materials and finished goods at some of the subsidiary companies especially in Tata Steel Europe have been written down to recognise the fall in market prices of these products. The year to date write down amounted to Rs 2,928.37 crores.

5. Figures for the previous period have been regrouped and reclassified to conform to the classification of the current period, wherever necessary.

6. The above results have been reviewed by the Audit Committee in its meeting held on June 24, 2009 and were approved by the Board of Directors in its meeting of date

7. The Board of Directors has recommended a dividend of Rs 2 per share on Cumulative Convertible Preference Shares and Rs.16 per share on Ordinary Shares for the financial year 2008-09.

8. The Annual General Meeting of the Company will be held on August 27, 2009 to consider the accounts for the financial year 2008-09.

Ratan N Tata
Chairman