Notes:-

1 (a)

During the year, the Company had carried out modifications in the production process resulting in increase in capacity of the Hot Rolled Coils plant from 3.0 Million Tonnes per annum to 3.3 Million Tonnes per annum.

(b)

During October 2008, the company had commenced upgradation and modernisation of its Blast Furnace for achieving better productivity, efficiency and reducing cost of production , which has been completed during May 2009. Shut-down of Blast Furnace during the period had resulted in non-availability of Hot Metal, which is one of the key source of metallic for the Company's Hot Rolled Coils plant. As a result , production of Hot Rolled Coils during the quarter was lower at 3.66 lakhs MTs , representing capacity utilisation of 44%.

Upon completion of upgradation and modernisation of Blast Furnace, production of Hot Metal has since stabilised. Simultaneously, production of Hot Rolled Coils has also increased.

2 (a)

Exceptional items include an amount of Rs 327.20 crores being the value of raw material inventory written down during the year ( net of reversal for the quarter Rs.33.17 crores ) , in line with Accounting Standard-2 'Valuation of Inventories', issued by the Institute of Chartered Accountants of India. The Company had procured inputs in line with its planned production programme. However, steel prices had , thereafter , fallen significantly due to severe global economic meltdown and recessionary conditions in the steel industry. The value of raw material inventories have been written down, as stated above, to consider at the current net realisable value of the finished goods in which they will be used.

(b)

The financial results for the year ended 31st March 2009 have also been affected due to significant depreciation in the value of Indian Rupee against various foreign currencies owing to abnormal financial conditions prevailing globally. Such differences in relation to the operating balances / forward exchange contracts aggregating to Rs 49.85 crores and Rs. 321.50 crores for the quarter and year ended 31st March 2009, respectively, have also been included in exceptional items.

Other Income includes a sum of Rs 213.93 crores and Rs.285.87 crores for the quarter and year ended 31st March 2009, respectively , being gain arising on account of pre-payment on Net Present Value basis, of a portion of deferred Value Added / Sales Tax liability, in terms of Section 94(2) of Maharashtra Value Added Tax Act 2002 read with Rule 84 of Maharashtra Value Added Tax Rules 2005.

Pursuant to The Companies (Accounting Standards) Amendment Rules, 2009, the Company has adjusted , during the quarter , foreign exchange differences of Rs 519.14 crores (net), arisen during the year 2008-2009, on long term foreign currency monetary items relating to acquisition of depreciable capital assets, to the carrying amount of the respective assets and Rs 11.87 crores relating to other cases, to Foreign Currency Monetary Item Translation Difference Account.

Further, the foreign exchange gains of Rs 192.48 crores arisen on long term foreign currency monetary items relating to the acquisition of depreciable capital assets and Rs 5.94 crores relating to other cases, which were recognised in the profit and loss account during the year 2007-08, have also been reversed and adjusted to the carrying amount of the respective fixed assets and Foreign Currency Monetary Item Translation Difference Account respectively, by adjusting the same to the profit and loss account debit balance as on 1st April 2008. Consequently, the corresponding reversal of depreciation, amortisation and deferred tax credit of Rs 6.44 crores, Rs 1.48 crores and Rs 64.75 crores respectively, have also been adjusted with the profit and loss account debit balance as on 1st April 2008.

The Auditors in their audit report on the Company's Accounts for the year ended 31st March, 2009 and Limited Review for the quarter ended December 2008 have expressed their inability to express any opinion on the recognition of Deferred Tax Asset of Rs. 950.13 crores (Rs. 546.57 crores as on 31st March, 2008) and Rs.325.08 crores respectively . However, based on the future profitability projections and in light of the current trend of prices of finished products and input costs , the Company is virtually certain that there would be sufficient taxable income in the future, to claim the above tax credit.

The Auditors, in their Limited Review Report for the quarter ended 31st December 2008,had referred to treatment of foreign exchange differences of Rs.60.28 crores and Rs.280.31 crores for the respective quarter and nine-month period ended 31st December 2008, which was at variance with the treatment prescribed under Accounting Standard 11 "Effect of Changes in Foreign Exchange Rates" . Considering the treatment prescribed under the Companies (Accounting Standards) Amendment Rules, 2009, referred to in Sl. No.4 hereinabove , the said observation stands resolved.

There were no extraordinary items during the respective periods reported above.

Basic and Diluted EPS have been computed after considering the impact of proportionate arrear dividends on cumulative redeemable preference shares on the profit/ loss for the respective periods in terms of Accounting Standard 20 'Earnings Per Share".

Previous period/ year figures have been re-grouped / re-arranged wherever necessary.

At the beginning of the quarter, there were no complaints from investors pending for disposal. During the quarter, 132 complaints were received and these were appropriately disposed off. Thus, there were no complaints from investors pending for disposal at the end of the quarter.

The above financial results for the quarter / year ended 31st March 2009 were reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on 30^th June 2009.