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16th February 2004

Company Statement regarding Incident of 16th February, 2004

An incident took place around 6.30 p.m. on Monday 16th February, 2004 in the Hammer Shop at the Mundhwa plant of Bharat Forge Ltd.

The failure of a compressed air pipe has been identified as the primary cause of the incident. A few employees have sustained injuries. They have been immediately given the necessary medical attention. Their treatment is the top most priority for the company at present. The company maintains very high levels of safety in the operations of its plant. Company authorities are investigating the cause of the incident.

Except for the disruption in the above area, all manufacturing operations of the company are functioning as usual. The affected area accounts for less than 10% of the turnover of the company. The company expects to restore the operations in the affected area in one week’s time. Loss of production will be made up in the remaining period of the quarter.