Notes:

1. Previous year/ period's figures are regrouped/ restated wherever necessary to make them comparable with those of the current period.

2. The above results were reviewed by the Audit Committee, taken on record by the Board of Directors of the Company at its meeting held on January 20, 2007 and were subjected to a "Limited Review" by the Auditors.

3. The Company has incurred an expenditure of Rs.6,878.90 Million upto December 31,2006 towards its ongoing Forging & Machining Capacity expansion program.

4(a). Company had issued 0.5% Foreign Currency Convertible Bonds ( FCCB) due 2010 in two Tranches ( Tranche 1 & 2), each having varied rights and obligations , aggregating US $ 60 million each, convertible at an initial price of Rs.336.11 and Rs. 384.12 per share of Rs.2/- each respectively subject to adjustments specified in the offering circular dated 15th April 2005. In view of the current market price of the Company's equity shares being less than the Floor price for exercise, in respect of tranche 2 of the Bonds , the option embedded in the said Tranche 2 Bonds to subscribe to Equity shares is, at present, antidilutive.

4(b). During the year , the Company has further issued Zero Coupon Foreign Currency Convertible Bonds ( FCCB) in two tranches (Viz. Tranche A and Tranche B) amounting to US $ 40.00 million and US $ 39.90 million due 2012 and 2013 respectively each having varied rights and obligations and optionally convertible at an initial price of Rs.604.33 and Rs.690.32 per share of Rs.2/- each respectively subject to adjustment specified in the offering circular dated 24th April, 2006. Since the current market price of the Company's Equity shares being less than the Floor price in respect of both the Tranches of the Bonds, the option embedded in the said Bonds to subscribe to Equity Shares is, at present, antidilutive.

Pending utilisation, the funds have been temporarily deployed in investments which together with funds out of GDR and Warrants issue, have generated other income aggregating Rs.176.50 million during the quarter and Rs. 507.93 Million year to date. ( Previous year Rs.98.06 million and Rs. 272.55 million respectively )

5. During the first quarter, the company had written off export incentives of Rs.44.78 million (net of tax saving) that had accrued and was accounted during the last year,due to reduction of incentive under Target Plus Scheme announced by Government of India in the current year with retrospective effect.

6. During the quarter, two Investor complaints were received and redressed. There were no Investor complaints pending for redressal as at the commencement and end of the quarter.

Pune
Dated : January 20, 2007.