Mafatlal Dyes - Limited Review For The Quarter Ended Mar 31, 2007

Mafatlal Dyes & Chemicals Ltd has informed that in the limited review report of the Company for the quarter ended March 31, 2007, the Auditors of the Company have made the following observations:The following qualification made in Audit Report dated August 11, 2006 on the accounts of the previous accounting period from October 01, 2004 to December 31, 2005 have not been disclosed in the unaudited financial results along with the impact of such qualification :1. Non-provision of Rs 2065 lacs for diminution of value of investments in the wholly owned subsidiaries. The accounts of subsidiaries as June 30, 2005, reflect substantial erosion to networth after considering the unprovided diminution in the value of investments held by these Company.2. Non-provision in the accounts for diminution in value of investments aggregation to Rs 146 lakhs in Equity shares of Mahananda Investments Ltd a Wholly owned subsidiary of the Company.3. Non-provision in the accounts for doubtful loans to subsidiary companies aggregation to Rs 200 lakh. There has been a substantial fall in the value of quoted investments held by these subsidiaries, which may lead to substantial erosion in their networth.