1. (a) Figures for the current periods include the figures relating to Corex-1, Basic Oxygen Furnace and Continuous Casting Plants(BOF_CCP) which have commenced commerical production from 1.4.2001. Hence, these are not comparable with those of the previous periods.

(b) Pellet Plant and Corex-II are under trial production.

2. (a) A financial restructuring package has been approved, the features of which, inter alia, include (a) issue of 40 preference shares (with a coupon rate of 0.0001%) of Rs. 10 each and 60 equity shares of Rs. 10 each for every 100 equity shares held by all the existing equity shareholders and conversion of part of Term Loans, Non-convertible Debentures and Optionally Fully Convertible Debentures (OFCDs) into equity shares at par, (b) reduction of interest rates on rupee debt to 14% p.a. , (c) issue of 14% Rupee Term Loans / OFCDs and 0% Rupee Term Loans / NCDs to compensate the loss on account of reduction in interest rates, (d) structured interest payments on rupee debt , etc.

(b) Sanction letters have been received from ICICI Bank Ltd., Industrial Development Bank of India, IFCI Ltd., Industrial Investment Bank of India Ltd., Life Insurance Corporation of India and General Insurance Corporation of India. While execution of documents in favour of ICICI Bank Ltd;, IFCI Ltd., Industrial Investment Bank of India Ltd. are complete, the same is in process in the case of remaining institutions. State Bank of India has, with certain modifications, sanctioned and implemented the restructuring package. Accordingly, the interest cost is provided on the loans sanctioned by these lenders as per the terms of restructuring (including the interest relief of Rs. 1481.12_lacs pertaining to the previous financial year 2000-01). In respect of other lenders, the financial restructuring package, if approved and implemented, similar relief in interest cost shall accrue to the company with corresponding reduction in the losses of the Company.

(c) The interest on the restructured debts has been provided at specified rates (ballooning interest rates) instead of implicit rate of interest over the maturity of debt/ s. Had the company provided the interest on the basis of implicit rate of interest, the interest expenses charged to revenue would have been higher by Rs. 5182.87 lacs (including Rs. 718.15 lacs for the previous year) with a corresponding increase in the loss for the year, out of which Rs. 1905 lacs for current quarter. In view of there being no specific accounting standard made applicable in India in respect of financial restructuring, the auditors have relied upon the expert opinions obtained by the company for above mentioned treatment for interest ballooning allowed by the financial institutions/banks.

(d) The restructuring package envisages inter alia reduction in equity capital of the company by around 40% and issue of 0.0001% non-cumulative redeemable preference shares corresponding to the amount of reduction in capital, duly approved by the shareholders of the Company at Annual General Body Meeting held on August 17, 2001. The company has filed two petitions seeking certain modifications to the Order received from The Hon. High Court of Kamataka in this regard. The effect of the reduction in capital is yet to be given, pending decision by the Court.

3. Paid-up equity share capital as on 31st March 2002 includes Rs. 6106.40 lacs being the amount originally paid up on the shares forfeited.

4. As the Company is engaged in only one segment namely "iron and steel products", and hence, there is no segment wise information to report as per Accounting Standard 17 issued by The Institute of Chartered Accountants of India.

5. During the year, the Company has changed the method of accounting for taxes to fall in line with Accounting Standard 22 "Accounting for Taxes on Income" issued by The Institute of Chartered Accountants of India, which has become mandatory. Accordingly, the timing differences relating to deferred tax assets/liabilities have resulted in net deferred tax credit of Rs. 28174 lacs upto 31/3/2002. As a prudent measure, after giving appropriate allowance, the net deferred tax credit has been recognised in the accounts to the extent of Rs. 8041 lacs for the current year and Rs. 6503 lacs for the previous years.

6. During the year, the Company has changed the accounting policy in respect of writing off of deferred revenue expenditure from 5 to 10 years (excepting in respect of certain items that would continue to be written off in 5 years), since in the opinion of the Management, the benefit of such expenditure would accrue to the Company over a longer period. Had there been no change in policy, the deferred revenue expenditure written off would have been higher by Rs.5726 lacs with corresponding impact on the loss for the year, out of which Rs. 1212 lacs for the current quarter.

7. The EPS computation is in accordance with the Accounting Standard 20 issued by the Institute of Chartered Accountants of India.

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

9. The above financial results have been taken on record by the Board of Directors at its meeting held on 30th May, 2002