Unimers India - Limited Review For The Quarter Ended Sep 30, 2007

Unimers 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(i). The Company has not paid installments due of certain debts as per the CDR package / settlement, consequently the lenders shall have the right to revoke the package / settlement in case of non-fulfillment of commitments by the Company and they also have the right to convert entire / part of loans outstanding into equity.

1(ii). Besides pending approval of the CDR Core Group, accounting impact of the amount settled with UTI has not been given (refer note no.4 (b) of the attached financial result).

1(iii). The management has approached the CDR Group for reworking / rescheduling of the CDR package / settlement in view of the fire on October 24, 2006, which has been approved in principle by the CDR Group. However, as explained, final approval for the revised package / settlement is expected to be received shortly.

2. The Auditors are unable to express an opinion as to when and to what extent long overdue Sundry Debtors aggregating to Rs 65.90 Laos would be recovered. The management is, however, hopeful for recovery / settlement in the above cases and accordingly, as explained, provision as may be required would not be significant.

3. The Company has not yet deposited long outstanding amount of Rs 75.21 Lacs (as on March 31, 2007) to the Investor Protection Fund.

4. The accounts of certain debtors, creditors, unsecured loans, banks and loans and advances are subject to confirmations, reconciliation and consequent adjustments, if any, which are presently not ascertainable.