Chromatic India - Limited Review For The Quarter Ended Dec 31, 2006

Chromatic India Ltd has informed that in the limited review report of the Company for the quarter ended December 31, 2006, the Auditors of the Company have made the following observations:Nothing has come to the Auditors notice that casuse them to believe that the accompanying statement :(a) has not been prepared in accordance with accounting standards issued by the Institute of Chartered Accountants of India and other recognized accounting policies and practices except for Accounting Standard 15 on Accounting for Retirement Benefits in Financial Statements of Employers, Accounting Standard 17 on Segment Reporting, Accounting Standard 22 on Accounting for Taxes on Income and Accounting Standard 28 on Impairment of Assets.(b) the qualifications in Auditors Report on annual accounts of the Company with regard to non confirmations of amounts due from / to various parties, non provision / non confirmation in respect or bills discounting of Rs 156.75 lacs and amounts due thereon Rs 101.68 lacs and non provision of diminution in value of investment of Rs 26.23 lacs along with receivables and short term loan of Rs 100.59 lacs from wholly owned subsidiary have not been redressed in unaudited results for the quarter ended December 31, 2006.