looks like @@rowcount issue ?

thanks for the reply..looks to  be i didn't understand properly... 

just tested one sample procedure and looks to be working fine..am i missing anything ?

create procedure test123
as
begin
declare @strsql varchar(1000),
@ncount int
set @strsql = 'select * from table1'

exec(@strsql)

set @ncount = @@ROWCOUNT
select @nCount
end

it returns the proper number which are being selected.