Addi Industries - Limited Review for the quarter ended Sep 30, 2007

Addi Industries 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. No provision for employees retirement benefits has been made in terms of Accounting Standard 15 regarding Accounting for Retirement Benefits issued by ICAI.

2. Sundry Debtors (Foreign) have been not reported as per AS-11 Accounting for the effect of changes in Foreign Exchange Rate issued by the by ICAI.

3. The stock records and related values have not been verified by the Auditors, the Impact, if any, on the financial results is unascertainable.

4. The Company has not prepared consolidated financial statement as per AS-21 with its wholly-owned subsidiary, Aum Texfab Pvt Ltd. Since subsidiary has not done business during the period and disclosed this fact in notes to results.

5. Adjustment / Provisions for deferred tax assets / liability would be made at the year end that will arise with regards to Accounting Standard 22 on Taxes on Income issued by ICAI.