1.

1. Figures for the current quarter include the figures relating to Pellet and Corex-II plants, which have commenced commercial production from 1st July, 2002 and also the impact of revised restructuring package (RRP) as explained in para 2 below, hence are not comparable with those of corresponding previous periods.

2. Revised Restructuring Package (RRP) :

a)  In response to the reference made by the lead lender, namely, ICICI BANK LTD, the Corporate Debt Restructuring Cell (CDR) has approved a revised financial restructuring package (RRP) (effective 30.09.2002) vide its letter No. CDR /591 dated 24.2.2003 by revoking earlier approved restructuring package.

   The terms of the RRP inter-alia include:
i)   Conversion of part of Rupee debt into Equity shares of Rs. 10 each and payment of part    of interest overdues by issue of 10% CRPS of Rs. 10 each.
ii)   Restructuring of interest and rescheduling of principal repayment etc.

b)  Subsequent to the approval of RRP the company has obtained the approval of shareholders at the Extraordinary General Meeting held on 22.4.2003 for cancellation of part of existing equity capital and for issue of 0.01% CRPS in lieu thereof.The Statutory, legal and regulatory formalities, including fresh approval of Honourable High Court of Karnataka are being complied with, after which, effect of the reduction will be given in the Books of accounts.       

c) As a result of the approval of the RRP, the Company is liable to pay an additional interestof Rs.270.16 crores (net of waiver of LD and penal interest of Rs. 16.92 crores), for the period from 1.10.2000 to 30.9.2002.  The said amount has been apportioned, as per the accounting policy followed by the Company to Deferred Revenue Expenditure  Rs. 2.00 crores, preoperative expenditure Rs. 58.59 crores and profit and loss account Rs. 209.57 crores.  The amount of Rs. 209.57 crores affecting the profit and loss  account has been shown as exceptional item.

d)  Interest for the current quarter is net of Rs. 21.59 crores being reduction in interest cost pertaining to 3rd quarter as per the relief granted in RRP.  In respect of lenders, who are not signatories to CDR system the interest has been provided as per the documented rates.

3. As the Company is engaged in only one segment viz. “iron and steel products”, there are no reportable segments as per Accounting Standard (AS 17). The break-up of Sales for the year (Gross) - Inland Rs. 2417.39 crores (including for the quarter Rs. 746.58 crores) and Export Rs. 368.65 crores (for the quarter Rs. 141.00 crores).

4. The deferred tax computation is in accordance with the Accounting Standard (AS 22) issued by the Institute of Chartered Accountants of India. The net deferred tax credit arising on account of timing differences, after giving appropriate allowance has been recognised in the accounts to the extent of Rs. 292.16 crores during the year ended 31st March, 2003 (including Rs. 247.06 crores for the quarter ended 31st March, 2003).

5. Export benefit pertaining to the period 1st April, 2002 to 31st December, 2002 of Rs. 9.16 crores is considered in the current quarter as the notification to that effect was issued in February, 2003.

6. Paid-up equity share capital as on 31st March, 2003 includes Rs. 61.03 crores (previous year Rs. 61.06 crores) being the amount originally paid up on the shares forfeited.

7. Previous period figures have been regrouped/rearranged wherever necessary.

8. The above results have been taken on record at the meeting of the Board of Directors held
    on 5th May, 2003.