Bata India - Limited Review For The Quarter Ended Mar 31, 2007

Bata India 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:1. In the absence of physical verification / valuation of the stock of the Company, the same has been accounted for as per the book balances. The Auditors are unbale to comment upon the impact, if any, on these accompanying results, had such verification and valuation been undertaken. In respect of the above matter, the Auditors report for the corresponding previous quarter was similarly modified.2. In 2006, Government of India has promulgated an Act namely The Micro, Small and Medium Enterprises Development Act, 2006 which comes into force with effect from October 02, 2006. As per the Act, the Company is required to identify the Micro, Small and Medium suppliers and pay them interest on overdues beyond the specified period irrespective of the terms agreed with the supplier. The Company is in the process of compiling information regarding measurement of interest liability prescribed by the Act. in view of the above, the Auditors are unable to comment upon the impact, if any, thereof on these accompanying results.