1. The above results were approved by the Board of Directors of the Company in its meeting held on April 16, 2009.

2. (a) Tax provision for the period is after considering tax deduction of Rs 12664.58 lakhs, available under action 80 (IA) of the Income Tax Act, 1961 in respect of new inland ports & rail system set up by the Company on or after April 01, 2001.

(b) Assessing Officer (A.O.) disallowed certain claims, mainly deduction under section 80IA in respect of Rail System and Inland Ports (ICDs & CFSs) for the assessment year 2003-04 to 2006-07 and raised demands of tax and interest totaling to Rs 20907.76 lakhs. In appeal, for AY 2003-04 to 2005-06 CIT (A) allowed claim u/s 80IA towards Rail System, whereas, for Inland Ports the claim has been disallowed. The decision of CIT (A) has been upheld by ITAT in the orders passed for AY 2003-04 & 2004-05, except appeal for AY 2005-06 which is pending with ITAT. The Company is in the process of filling appeal(s) against the orders of ITAT. Company´s appeal for AY 2006-07 is still pending with CIT (A).

(c) The A.O. has now imposed penalty of Rs 2669.66 lakhs against the company´s claim of deduction in respect of Inland Ports for AY 2003-04 to 2005-06. Company is in the process of filling appeals against these orders before the CIT (A).

3. Subsequent to March 31, 2008 the Company has allotted bonus share in the ratio of 1:1. Accordingly, in the above results the basic and diluted EPS has been adjusted for all the reporting periods as per the requirements of AS-20 issued by ICAI.

4. The auditors qualifications on the accounts for the year ended March 31, 2008 have been replied to in the Directors Report of FY 2007-08. These qualifications have no material impact on the accounts for the period ended March 31, 2009.

5. Previous periods figures have been recast / regrouped / rearranged, wherever considered necessary to conform to this period´s classification.

Suresh Kumar
Director (Finance)