Taneja Aerospace - Limited Review For The Quarter Ended Dec 31, 2006

Taneja Aerospace & Aviation 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. The Company has changed its accounting policy in respect of accounting of income from manufacturing of complex equipments from Completion Method To Proportionate Completion Method with a view to better financial representation in connection with matching principles. Due to this, Rs 234 lacs (net) has been included in the revenue on the basis of technical estimates. Impact of the same on profit for the period was net ascertained.2. It was explained to the Auditors that due to carry forward losses and expansion during the year, the company is liable to pay tax based on book profit only. The effect ofAccounting Standard (AS) 22 i.e. deferred tax asset / liability, if any, will be accounted at the year-end.