Asian Electronics Ltd has informed BSE 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. Management has not considered provision in respect of outstanding debtors of Rs 18.39 crores and assets on operating lease of Rs 16.08 crores under a dispute for reasons explained by them in Note 2 of financial results.

2. The Auditors have noted the following variations in the Unaudited Financial Results as published by the Company, however there is no variation in the net profit alter tax.

(a) Earning per share for the six months ended September 2007 is Rs 39.63 as against Rs 38.99 in the Unaudited Financial Results published by the Company.

(b) In paragraph 3 of Segment wise Revenue, Results and Capital Employed, Unallocated Net liabilities as at September 30, 2007 are Rs 17,740 lacs as against Rs 17,3S2 lacs in the Unaudited Financial Results published by the Company.

(c) In the Segment Results interest for quarter ended September 30, 2007 is Rs 544 lacs and Interest for six months ended September 30, 2007 is Rs 1054 lacs as against Rs 404 lacs and Rs 914 lacs in the Unaudited Financial Results published by the Company.

(d) As a result of paragraph 4(c) above, Segment Result for Plant and Machinery segment is Rs 3,013 for quarter ended September 30, 2007 and Rs 5,962 Lacs for the six months end September 30, 2007 as against Rs 2,873 lacs and Rs 5,822 lacs in the Unaudited Financial Results published by the Company.”