Hi Aditi,
you need to loop over the items in your xml to generate rows in the excel file.
try with this modified xsl
<?xml version="1.0" encoding="UTF-8"?>
<?mso-application progid="Excel.Sheet"?>
<xsl:stylesheet version="1.0"
xmlns:html="http://www.w3.org/TR/REC-html40"
xmlns:xsl="http://www.w3.org/1999/XSL/Transform"
xmlns="urn:schemas-microsoft-com:office:spreadsheet"
xmlns:o="urn:schemas-microsoft-com:office:office"
xmlns:x="urn:schemas-microsoft-com:office:excel"
xmlns:ss="urn:schemas-microsoft-com:office:spreadsheet">
<xsl:template match="/">
<Workbook>
<Styles>
<Style ss:ID="Default" ss:Name="Normal">
<Alignment ss:Vertical="Bottom" />
<Borders />
<Font />
<Interior />
<NumberFormat />
<Protection />
</Style>
<Style ss:ID="s21">
<Font ss:Size="22" ss:Bold="1" />
</Style>
<Style ss:ID="s22">
<Font ss:Size="14" ss:Bold="1" />
</Style>
<Style ss:ID="s23">
<Font ss:Size="12" ss:Bold="1" />
</Style>
<Style ss:ID="s24">
<Font ss:Size="10" ss:Bold="1" />
</Style>
</Styles>
<Worksheet ss:Name="EXPORTDATA">
<Table>
<xsl:call-template name="XMLToXSL" />
</Table>
</Worksheet>
</Workbook>
</xsl:template>
<xsl:template name="XMLToXSL">
<Row>
<Cell>
<Data ss:Type="String">number1</Data>
</Cell>
<Cell>
<Data ss:Type="String">number2</Data>
</Cell>
<Cell>
<Data ss:Type="String">DATE</Data>
</Cell>
<Cell>
<Data ss:Type="String">EMPLOYEENAME</Data>
</Cell>
</Row>
<xsl:for-each select="//item">
<Row>
<xsl:for-each select="EXPORT1">
<Cell>
<Data ss:Type="String"><xsl:value-of select="number1" /></Data>
</Cell>
<Cell>
<Data ss:Type="String"><xsl:value-of select="number2" /></Data>
</Cell>
</xsl:for-each>
<xsl:for-each select="EXPORT2">
<Cell>
<Data ss:Type="String"><xsl:value-of select="DATE" /></Data>
</Cell>
</xsl:for-each>
<xsl:for-each select="EXPORT3">
<Cell>
<Data ss:Type="String"><xsl:value-of select="EMPLOYEENAME" /></Data>
</Cell>
</xsl:for-each>
</Row>
</xsl:for-each>
</xsl:template>
<xsl:template match="ZCF_numbers">
</xsl:template>
</xsl:stylesheet>