Deccan Aviation - Limited Review For The Quarter Ended Mar 31, 2007

Deccan Aviation 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 previous auditors in their report dated September 22, 2006 on the financial statements for the fifteen months ended June 30, 2006, reported that adjustments to inventories of rotables, stores, spares and components made in the financial statements for the fifteen months ended June 30, 2006 as may pertain to the year ended March 31, 2005 was not ascertainable. In their report dated September 20, 2005 on the financial statements for the year ended March 31, 2005, they reported that they were unable to verify the valuation of inventories of rotables, stores, spares and components of Rs 2,973 lakhs of one of the divisions as estimated by the management as at March 31, 2005 pending reconciliation of the stock ledger with the financial records and the consequential updation of the stock ledger. This has no impact on the financial results for the quarter ended March 31, 2007 or the nine months ended March 31, 2007.