Forbes Gokak - Limited Review For The Quarter Ended Sep 30, 2007

Forbes Gokak 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. Attention in invited to Note 5 of the Statement relating to the balances to be reconciled and set off in respect of the Companys Logistic Services Segment. The Auditors could not perform limited review procedures in respect of debit balances as at September 30, 2007, amounting to Rs 730.07 lakhs (as at September 30, 2006, Rs 652.78 lakhs; as at March 31, 2007, of Rs 407.56 lakhs) which have been included in the capital employed of this segment, as the necessary information was not available and the reconciliation process had not been concluded.

2. One of the Companys branch offices has recorded revenue from one of its logistics service lines net of direct expenditure. Such revenue has consistently been recorded on a gross basis by the Company in the previous reporting periods and by other branch offices of the Companys Logistic Services segment for the half year ended 30th September, 2007. Consequently Net sales / income from operations and Other expenditure have been understated. As the necessary information has not been aggregated by the Company, the Auditors are unable to quantify the impact on income and expenditure. However, there would be no impact on the profit for the period.

3. The Auditors draw attention to note no. 5 to the Statement wherein the Management has stated that its reasons for revaluation of certain assets. In Auditors opinion, selective revaluation of fixed assets is not in accordance with the Accounting Standard (AS) 10 on Accounting for Fixed Assets notified under the Companies (Accounting Standards) Rules, 2006. The value of such fixed assets which formed a part of the capital employed of the Others Segment as at 30th September, 2006 and 31st March, 2007 is Rs 365.21 lakhs and Rs 365.19 lakhs respectively.