July 23, 2007

This is to inform you that our company has received a judgment from Supreme Court on Central Excise matter (Civil Appeal Nos. 5317-5318/ 2002 read with Civil Appeal No. 7098/ 2005), confirming duty liability of Rs.264 lacs and penalty of Rs.55 lacs, which is pertaining to the period from Jan 1989 to March 2000 and has been continuously disclosed as contingent liability in the notes to accounts of past annual reports from 2001 to 2006.

The Company is evaluating the course of filing a review petition with the Supreme Court. However, as a matter of prudence, the Company is making a provision of the above amount of duty and penalty in the books of accounts and this would have an impact on the financial results for the quarter ended 30th June 2007.