Kirloskar Electric - Limited Review For The Quarter Ended Dec 31, 2006

Kirloskar Electric Company 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:1. Reconciliation of few bank accounts.2. Reconciliation between subsidiary and general ledgers.3. Reconciliation of accounts between the Company and its subsidiary company Kaytee Switchgear Ltd from whom the Company purchases finished goods and sells to its customers.The impact of any adjustments that may be required on completion of the said reconciliations are unascertainable at this stage.4. Inventories of Rs 225.23 Million adopted for compilation of the unaudited financial results are as valued and certified by the management and not reviewed by the Auditors.