Rexnord Electronics & Controls 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. The description of the columns related to financial figures have not been given as per the new format and also the description for the column “unaudited half year ended September 30, 2006″ has been stated as “unaudited year ended September 30, 2006″.

2. The Company has included in manufacturing expenses [refer item no - 4 (f)] the job and processing charges which exceeds 10% of the total expenditure.

3. The provision for taxation [refer item no. 8 (a)] and provision for FBT [refer item no. 8(b)] for the quarter ended September 30,2007 have been shown lesser by Rs 0.50 lacs and Rs 0.45 lacs respectively therefore the profit from ordinary activity after tax and net profit for the period is higher by Rs 0.95 lacs. However these figures for the half year ended September 30,2007 have been correctly stated.

4. The number of shares and percentage of public shareholding (refer item no. 15] for the quarter ended September 30, 2006 has been wrongly stated as 4014600 and 61.95% instead of 3767200 and 58.13% respectively. However these figures for the half year ended September 30, 2006 have been correctly stated.

5. The Company has not taken into account the effect of the Accounting Standard ‘22′ for Accounting for Taxes on Income for the period ended September 30, 2007 which will be provided at the end Of the financial year and the same has been disclosed in the Note
No 4 to the unaudited quarterly financial results submitted by the Company.”