Saregama India - Limited Review for the quarter ended Sep 30, 2007

Saregama India 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 is drawn to the following without qualifying Auditors Report :

(a) Note 4 to the accompanying statement of unaudited financial results relating to non disclosure of impact on the net results and earnings per share for the quarter and half year ended September 30, 2007 had the fair value method been used to account for the stock options granted as mentioned therein.

(b) The Company has not disclosed the reasons for not resolving / steps taken, if any, against the qualifications in Auditors Limited Review Report of August 31, 2007 for the quarter ended June 30, 2007 on the items mentioned in Paragraphs 2.a. and 2.b. below.

2. Auditors invite attention to the following :

(a) Note 3 to the accompanying statement of unaudited financial results regarding recoverability of inter corporate deposit including interest accrued thereon (book balance Rs 824 lakhs) from a body corporate. From the available information, Auditors are unable to comment on the extent of recoverability of the aforesaid deposit including accrued interest thereon and the consequential impact, if any, on the Companys financial results for the quarter and half year ended September 30, 2007.

(b) As explained by the Company, additional and / or differential employee benefits which may arise on or after April 01, 2007 in keeping with the provisions of Accounting Standard 15 (revised 2005) on Employee Benefits are yet to be ascertained / accounted for by the Company. Accordingly, auditors are unable to comment on the impact, if any, on the Companys financial results for the quarter and half year ended September 30, 2007.