Greycells Entertainment - Limited Review For The Quarter Ended June 30, 2007

Greycells Entertainment Ltd has informed that in the limited review report of the Company for the quarter ended June 30, 2007, the Auditors of the Company have made the following observations:
1. The Company has not formulated any policy for amortization of the amount spent on the acquisition of perpetual rights in film & serials. No amortization has been provided on such perpetual rights including perpetual rights which are already being commercially exploited by the Company. The amount of such amortization has not been ascertained.
2. No provision has been made by the Company for possible impairment in the carrying value of perpetual rights in films and serials as required by the Accounting Standard No 28 - Impairment of Assets. The amount of such possible impairment has not been ascertained.