1. The results for the year ended March 31, 2009 have been reviewed by the Auditors and were taken on record at the Board of Directors Meeting held on May 19, 2009.

2. In pursuance of notification no. GSR 225 (E) dated March 31, 2009 of Ministry of Corporate Affairs with retrospective amendment (with effect from December 07, 2006) to Accounting Standard (AS 11) on "Effects of changes in Foreign exchange rates" the Company has adopted the option for exchange difference arising on reporting of long term foreign currency monetary items, by adjusting the same with carrying cost of depreciable assets to the extent they relate to acquisition of such asset, and in any other cases, by accumulating the same in Foreign Currency Monetary Item Translation Difference Account (´FCMITD´) to be amortised over the balance life of such asset or liability but not beyond 2011. The unamortised amount in FCMITD account for the year ended March 31, 2009 is Rs. 2.15 crores. Further during the current quarter ended March 31, 2009 the Company has also recorded Rs. 4.46 crores exchange fluctuations as interest expense to be accounted under Accounting Standard 16 which pertains to previous quarters / year ended March 31, 2008.

3. During the current quarter, the Company has effected a Change in Accounting Policy with regards to its Accounting for mark to market loss on outstanding derivative instruments as at March 31, 2009 the Company has recognized mark to market loss aggregating Rs 4.45 crores, arising from hedging transaction undertaken by the Company for its trading or speculative purpose. Whilst hitherto, during previous year 2007-2008 the Company had not provided for mark to market loss aggregating Rs 11.74 crores on outstanding derivatives instrument as on March 31, 2008.

4. During the quarter ended September 2008, the Company has effected a Change in Accounting Policy with regards to its accounting for benefits under Advance License, in accordance with Expert Advisory Committee (ICAI) opinion. Whilst hitherto, the Company was making provisions for Customs duty at the time of import under advance license, in accordance with the above stated opinion, such provisions are now not made at the time of import. The impact of this change has been recognized in full which has resulted in a write back during the current year, as a result of which loss for the current year ended March 31, 2009 is lower by Rs. 20.21 crores.

5. Previous year / quarter figures have been regrouped / recast wherever necessary, to make them comparable.

O P Lohia
Chairman & Managing Director