1. EBIDTA for the current year is Rs 12537 lakhs as compared to Rs 8033 lakhs in the previous year registering a growth of 56%.

2. The Company adopted for accounting the exchange differences arising on reporting of long term foreign currency monetary items in line with the Companies (Accounting Standards) Amendment Rules 2009 on Accounting Standard AS-11, notified by Government of India on March 31, 2009. Consequently, depreciation for the year is higher by Rs 41.59 lakhs and the profit for the year and reserves are higher by Rs 4489.48 lakhs. The corresponding foreign exchange gain of Rs 1589.91 lakhs (net of depreciation and deferred tax of Rs 258.34 lakhs) for the year ended March 31, 2008 has been reversed from the General Reserve and deducted from the cost of the fixed assets.

3. Exceptional items represent net adjustment as contemplated in Accounting Standard AS-30 on "Financial Instruments Measurement and Recognition".

4. Other Income includes Carbon Credit entitlement of Rs 211.72 lakhs received during the quarter arising from Energy Efficiency Measures undertaken by the Company.

5. Mill Development Plan—Phase-III, the Coal Fired Boiler No.6 has been commissioned. The Company has started exporting 5 MW power. Erection of Paper Machine No.6 is under progress.

6. Tax expenses include income-tax (MAT), deferred tax and fringe benefit tax.

7. With regard to Auditors’ observation on the accounts for the year ended March 31, 2009 on deferred taxation, the matter is subjudice and deferred tax has been provided at the effective rate and tax laws as applicable to the Company pending disposal of the writ petition.

8. Previous year figures have been regrouped wherever necessary.

9. The Company operates only in one business segment of manufacture and sale of pulp, paper and paper boards.

10. The Board of Directors has recommended a dividend of Re 0.50 per share of Rs 10/- each for the year ended March 31, 2009.

11. The above Audited Financial Results have been reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on June 12, 2009.

M K Tara
Managing Director