1. By order dated December 18, 2008 the single Judge Bench of the Honourable High Court of Bombay, at Goa, Panaji (Bombay High Court) had approved the scheme of amalgamation of Sesa Industries Ltd (SIL) with the Company effective from the appointed date i.e. April 01, 2005. Consequent to an appeal filled by a shareholders the Order was set aside by the Division Bench of the Bombay High Court on February 26, 2009. The Company has filed and appeal against the Order of the Division to the Supreme Court Pending disposal of the petition the accounts have been prepared on a standalone basis.

2. The Company has applied hedge accounting principles in respect of forward exchange contracts as set out in Accounting Standard (AS) 30 - Financial Instruments: Recognition and Measurement, issued by the Institute of Chartered Accountants of India. Accordingly all such contracts as on March 31, 2009 are marked to market and a notional loss aggregating to Rs 908 lakh (net of tax) arising on contracts that were designated and effective as hedges of future cash flows, has been directly recognised in the reserves, to be ultimately recognised in the Profit and Loss Account depending on the exchange rate fluctuation till and when the underlying forecasted transaction occurs.

3. Figures for the previous periods have been regrouped / rearranged as necessary to conform to the current periodīs classification.

4. The above results were reviewed by the Audit Committee and approved at the meeting of the Board of Directors held on April 20, 2009.

5. The Board of Directors at their meeting held on April 20, 2009 have recommended a dividend of Rs 2.25 per equity share for the year 2008-09 on the enhanced number of shares post bonus post split. The said dividend would also be payable to the recipients of the Company shares on approved of the merger of SIL with the Company.

P K Mukherjee
Managing Director