CESC - Limited Review For The Quarter Ended Mar 31, 2007

CESC 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. A net provision of Rs 119 crores (including Rs 50 crores for the current quarter), has been made for the year based on Companys understanding of regulatory provisions on account of cost adjustments, towards an estimated adjustable sum on account of cost of electrical energy purchased and fuel and related cost for the current year taking into account the effect on this count for earlier yeas arising from the applicable orders and also considering the impact of other adjustments necessary under the regulations. The auditors have been informed by the management that the matter would be accurately quantified and disposed of on receipt of further directions from the appropriate authorities.2. For the current quarter / year ended, the Company has provided depreciation on straight line method at the rates specified in the applicable Regulation which are different from the rates prescribed under the Regulation applicable for the previous year. Since tariff for the current year has been determined after taking into consideration such revision, the aforementioned change does not have any impact on the unaudited results.