Nuchem - Limited Review For The Quarter Ended June 30, 2007

Nuchem 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. No provisions has been considered for:

a. Decline in value of investment in subsidiary company in accordance with Accounting Standard AS - 13.

b. Deferred tax assets, on timing differences arising on unabsorbed losses and depreciation in accordance with Accounting Standard AS - 22, the amount not being ascertained as the management considers the same to be accounted for at the year end.

c. Gratuity in accordance with Accounting Standard AS-15 (as revised), the amount not being ascertained, as the management will consider implementing the AS - 15 (as revised) at the year end.

and considering foot - note no 3 to the accompanying statement in that to the extent the management has not addressed to the qualifications in the report covering the accounting year ended on September 30, 2006, the loss disclosed in the said statement is stated higher by Rs 7.50 lac for the quarter under review.