Kaira Can - Limited Review For The Quarter Ended Mar 31, 2007

Kaira Can Company 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. The information on pending investor complaints has been furnished by the Company on the basis of the Certificate from the Registrar and Transfer Agents of the Company.2. Accounting Standard 9 on Revenue Recognition as explained in paragraph (i) below for accrual of Advance License Benefits, has not disclosed the information required to be disclosed in terms of Clause 41 of the Listing Agreement including the manner in which it is to be disclosed or that it contains any material misstatement except as under:i. As per consistent practice of the Company, Estimated Import Duty benefits amounting to Rs 77.59 lacs and Rs 100.57 lacs against the exports effected during the Quarter and Twelve Months ended March 31, 2007 respectively taken into account as incentives accruing in respect of duty free imports of raw materials, yet to be made. As a result, net profit for Quarter and Twelve Months ended March 31, 2007, is overstated by Rs 66.94 lacs and Rs 66.84 lacs respectively.ii. Pending Insurance claim amounting to Rs 43.44 lacs for loss / damage of raw materials and finished goods during transit and remaining outstanding from the financial year ended March 31, 1991. The Company has filed the suit against the Insurance Company in Mumbai High Court for the recovery of the said claim which is pending disposal by the High Court. The Auditors are unable to comment on the recoverability or otherwise of the said amount due from the Insurance Company.