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ELECTROSTEEL CASTINGS LIMITED

Regd. Office: Rathod Colony, Rajgangpur, Orissa
Corporate Office: 19 , Camac Street , Kolkata - 700 017

Unaudited Financial Results for the Quarter ended December 31, 2007.

# Interest is net of derivative gains/losses and foreign exchange difference on borrowings.

1. The above financial results, as reviewed by Statutory Auditors and Audit Committee, were approved by the Board of Directors in their meeting held on January 24, 2008.
2. The Company operates mainly in one business segment viz Pipes and all other activities revolve around the main business.
3. Pursuant to the Ordinary resolution passed at the Ordinary General Meeting held on August 31, 2007, the Company’s equity shares of the face value of Rs 10 /- each have been sub divided into equity shares of face value of Re 1/- each on and from September 25, 2007.
   The EPS and aggregate public shareholding for the current quarter as well as for other periods has been stated / restated taking into account the share-split.
4. During the current quarter 12,55,000 warrants issued to promoters/promoter group in earlier period were converted to 1,25,50,000 equity shares of Re. 1 each in the ratio of 1:10. This has resulted in increase in the paid up equity capital by Rs. 125.50 lakhs. Further, pursuant to Ordinary General Meeting held on December 29, 2007, two crores convertible warrants were allotted on January 19, 2008 to the promoters/promoter group. Each of such warrant is convertible into one equity share of Re.1/- each.
5. During the current quarter, Zero Coupon Convertible Bonds (ZCCB) worth US $ 31.80 million were converted into equity shares. Accordingly, 3,35,98,295 equity shares of face values of Re 1 each at a price of Rs. 42.44 per share have been issued to the respective
   bondholders resulting in increase in the paid up equity capital by Rs. 335.98 lakhs.
6. Net loss during the quarter on account of foreign exchange fluctuations/transactions amounting to Rs. 1045 lakhs and Rs. 1666 lakhs (including Rs 1590 lakhs on conversion of ZCCB into share capital) remain adjusted to sales and other expenditure respectively."
7. Liabilities for defined benefit plans in terms of requirements of the revised Accounting Standard (AS-15) on ""Employee Benefits"" are being reviewed. Necessary adjustments will be carried out at the end of the current financial year. However, the impact on account of this is not likely to be material on the financial results.
8. The auditors, in the previous year, had commented upon the Company's investments and advances in a joint venture wherein the Company had 50% share in the equity capital. Pending judicial pronouncement in the matter, the investment and advances are considered to be good.
9. Other income for the quarter include profit of Rs. 545.52 lakhs on sale of certain long term investments.
10. Details of number of investor complaints for the quarter ended 31st December, 2007: beginning- nil, received-15 , disposed off-15 and pending- nil.
11. Previous period's figures have been regrouped/rearranged wherever necessary.

By Order of the Board
for Electrosteel Castings Limited

Umang Kejriwal
Managing Director

Kolkata
January 24, 2008

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