Hindustan Photo - Limited Review for the quarter ended Sep 30, 2007

Hindustan Photo Films Manufacturing Company 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. Note No: 1 on confirmation of winding up of the Company by BIFR and Rejection of appeal by AAIFR and the stay granted by the Madras High Court on the order of AAIFR is pending in the High Court.

2. Note No. 2 regarding Accounting Standard (AS)-l5 accounting for retirement benefits in the financial statement of employers a shortfall of gratuity provision amounting to Rs 264.70 lakhs based on actuarial valuation.

3. Note No. 3 on non-creation of Bond Redemption reserve equivalent to 50% of the amount of Bond issued before redemption commences due to continuing losses

4. Note No.5 on non-obtaining of confirmation of balances in respect of unsecured loans in respect of Government of India, Sundry Debtors, Cash Credit / Loans / LCs from Banks and FIs., Loans and Advances and Current Liabilities. Hence the consequential effect, if any on the financial statement, on account of not obtaining confirmation of balances is not ascertainable.

5. Note No. 9 regarding the loss if any which may arise on the disposal of certain items of Fixed Assets which are identified as no longer required.

6. Note No. 11 due to partial computerization of accounts and compilation of accounts only in the year end. The quarterly financial results are prepared on the basis of available records. Due to this any changes / impact that may arise / have on the loss / profits of the Company is not ascertainable.