1. The Company during the previous year, raised a sum of US$35 Million by way of issue of Foreign Currency Convertible Bonds (FCCB), which are due in 2012. These FCCBs are optionally convertible into equity shares subject to certain conditions, the impact of which, at present, are not determinable. The premium payable on exercise of redemption option, if any, will be accounted by way of debit to the Securities Premium Account For the purpose of earnings per share, the conversion option is considered to be anti dilutive.

2. In respect of currency options contracts entered into, to hedge highly probable forecast export transactions, the Company has followed the principles set out in Accounting Standard - 30 - Financial Instruments: Recognition and Measurement issued by the Institute of Chartered Accountants of India. Consequently, such exchange variations are accumulated in hedging reserve and recognized in the Profit and Loss Account only on completion of the transaction. Accordingly, debit balance in the Hedging Reserve, as at March 31, 2009, representing mark to market losses, in respect of contracts maturing upto December, 2012 stands at Rs 2,590 Lac.

3. Tax Expense includes Current Tax, Deferred Tax and Fringe Benefit Tax, but excludes tax adjustments relating to earlier years which are disclosed under prior period adjustments.

4. The Directors have recommended a dividend of Rs 1.20 per equity Share for the year ended March 31, 2009 (Previous Year Rs 1.20 per Equity Share) subject to approval of shareholders.

5. The Company has completed the acquisition of a majority stake (72.65%) in Calcutta Compressions & Liquefaction Engineering Pvt Ltd (CC&L) for a consideration of Rs 239 Lac. CC&L has a subsisting agreement with Oil & Natural Gas Corporation Ltd (ONGC) for purchase of Coal Bed Methane Gas from its gas field located in Jharkhand, India. The acquisition was completed on April 18, 2009.

6. The Company and its subsidiaries operate within a single business segment. Segment information is being presented on the basis of geographical location of the entities.

7. Previous year figures have been regrouped / recast wherever necessary.

8. The above results were reviewed by the Audit Committee and taken on record by the Board of Directors of the Company at their meeting held on May 15, 2009.

P K Khurana
Chairman & Managing Director