Saurashtra Cement - Limited Review For The Quarter Ended Mar 31, 2007

Saurashtra Cement 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: Attention is drawn to the following:(a) The Companys proposal for restructuring of its debts under the Corporate Debt Restructuring (CDR) Mechanism as per the guidelines of the Reserve Bank of India has been sanctioned vide letters dated December 26, 2005 and February 17, 2006 issued by CDR Cell. As per the sanction with effect from the cut off date of June 30, 2005, the interest is to be levied at the revised rates and waiver and concessions have been granted for the interest payable as also the Principal outstanding till the said cut-off date. Further, some of the lenders, other than CDR Members have also opted for a One Time Settlement (OTS). Accordingly, the interest for the current quarter ended March 31, 2007 is accounted at the revised rates.