DCM - Limited Review For The Quarter Ended Sep 30, 2007

DCM Ltd has informed that in the limited review report of the Company for the quarter ended September 30, 2007, the Auditors of the Company have made the following observations:

1. The Companys Scheme of Restructuring and Arrangement (SORA), sanctioned by the High Court of Delhi, provides that it is required to be implemented as a whole and in totality. The effect of the financial and business restructuring, as envisaged in the above Scheme, has already been considered in preparing the accounts by the Company during the previous years except for the sale of rights in the Companys land development project, which, as per SORA, is subject to certain definitive agreements. Although the Company has entered into the definitive agreements during the previous years, one of such agreements, viz., leasehold definitive agreement, has not become effective pending compliance with certain conditions contained therein and, therefore, the corresponding transaction has not been effected in the accounts. The management has confirmed to the auditors that the conditions contained in the leasehold definitive agreement would be complied with and would not result in to any adverse impact on the financials of the Company or on the successful implementation of the SORA.

2(a). Interest liability relating to certain borrowings is being accounted for on payment basis. Had such liability been accounted for on accrual basis, the loss for the three months and six months ended September 30, 2007 would have been higher by Rs 1 lac and Rs 2 lacs respectively and the debit balance in profit and loss account would have been higher by Rs 231 lacs (Refer to note 1).

(b) Various matters arising / arisen out of reorganisation will be settled and accounted for as and when the liabilities / benefits are finally determined as stated in note 1. The effect of these on the financial results for the three months and for the six months ended September 30, 2007 is not ascertainable at this stage.