Falcon Tyres - Limited Review For The Quarter Ended Sep 30, 2007

Falcon Tyres 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) a) Review with respect to payment of Rs 43.80 lacs for Technical aid relating totyres and capitalization of administrative and other charges aggregating to Rs 820.48 lacs as Capital Work in Progress were pending by the management. Pending this and ascertainment of amounts thereof, impact with respect to these on the financial results cannot be commented upon by us.

b) Provisions of Revised Accounting Standard 15 on Employee Benefits has not yet been implemented by the Company. Necessary adjustments in this respect will be carried out at the year-end impact with respect to this has not been ascertained and as such cannot be commented upon by the Auditors.

c) Overheads absorption for the purpose of valuation of inventory of finished goods and work in progress has been done on estimated basis. Impact with respect to this has not been ascertained and as such cannot be commented upon by the Auditors.

d) Interest and other finance charges aggregating to Rs 459.13 lacs, Rs 52.46 lacs and Rs 57.42 lacs have been treated as cost of investment prepaid and capital work in progress, respectively.

e) Impact of para (d) above (the same being not ascertained in case a, b and c above) and other variations, as noticed during the course of the said review, on being given effect to in the items mentioned in the accompanying statement of unaudited financial results, are as given below

(Rs in Lacs)

ParticularsFigures after rev- Figures as repor-iew quarter endedted quarter endedSeptember 30, 2007September 30, 2007