PRESS RELEASE

Financial Results for the year ended 31^st March, 2007.

The highlights for the Company’s results for the year ended 31^st March, 2007.

	For the year ended 31^st March, 2007 Rupees in Crores	For the Year ended 31^st March, 2006 Rupees in Crores
GROSS TURNOVER AND OTHER INCOME	536.16	1143.64
Profit before Gratuity provision, Finance Costs, Depreciation and Voluntary Retirement Com- pensation	107.58	97.48
Contribution to Gratuity Fund	6.16	2.37
Finance Costs	31.70 --------	17.61 -------
Profit before Depreciation & Voluntary Retirement
Compensation	69.72	77.50
Depreciation	17.46	16.90
Voluntary Retirement Compensation	11.85 -------	1.38 -------
PROFIT BEFORE TAX	40.41	59.22
Less: Tax (net)	4.48 -------	(2.12) --------
PROFIT AFTER TAX	35.93	61.34
Add: Balance in Profit and Loss Account of Previous Year	187.15	137.71
Investment Allowance Reserve	-	-
Debenture Redemption Reserve	- ---------	16.25 -------
SURPLUS AVAILABLE FOR APPROPRIATIONS	223.08	215.30
Appropriations to:
Proposed Dividend
Final Dividend	19.31	19.30
Corporate Dividend Tax	3.28	2.71
Debenture Redemption Reserve	2.50	-
General Reserve	3.59 ---------	6.14 ---------
Balance carried to Balance Sheet	194.40 ======	187.15 ======

The Company has reported lower net profit of Rs.36 Crores as compared to Rs.61 crores in the previous year. Standing charges and depreciation of the DMT plant which remained closed for a major part of the year to enable construction and tying in with the PSF plant at the same location have been charged to the Revenue account during the current year. Besides this, higher provisions were required to be made for Voluntary Retirement Compensation and Gratuity. Finance costs also went up as implementation of the PSF and Ranjangaon Projects progressed and interest rates moved up in the latter half of the year.

The Polyester Staple Fibre (PSF) plant is currently undergoing trial runs and the Textile Processing facility at Ranjangaon is expected to commence trial production in the next 2/3 months.

While the domestic market for Textiles is showing reasonable growth, oversupply and fierce competition have characterized the export business. The commencement of the new Textile processing facility at Ranjangaon is expected to mitigate to a large extent the cost disadvantages faced by the Textile Division at its current location in Mumbai.

The Polyester intermediates market is currently experiencing substantial volatility with large swing in crude oil prices, mismatches of supply and demand in raw materials and strengthening of the Indian Rupee. While this will affect the division’s performance in the immediate future, the institution of cost saving measures and diversification in high value fibre business is expected to substantially reduce the adverse impact.

The mixed use real estate developments at Spring Mills, Dadar and Textile Mills, Worli have commenced. The initial development phase at Spring Mills, Dadar comprising the Residential Tower, Shopping Centre and Commercial Offices has commenced. The majority of the residential apartments under construction have already been sold. Construction activity at the Worli Project has also commenced and the initial phase includes Commercial Offices and a Shopping Centre. The initial phases at both the Dadar and Worli locations are expected to progressively be completed over the next three years.

The Board has recommended a dividend of Rs. 5/- per equity share of Rs.10/- each for the year ended March 31, 2007.

The Annual General Meeting is scheduled for Wednesday, 25^th July, 2007 at 3.45 p.m.

Mumbai, 24^th May, 2007.