Shreyas Shipping & Logistics Ltd has informed BSE that in the limited review report of the Company for the quarter ended December 31, 2007, the Auditors of the Company have made the following observations:

“1. Deferring the Dry dock expenses incurred during the year to the remaining quarter of the year instead of charging the same off to the Profit and loss account on their incurrence, which is not in accordance with Accounting Standard 25 on Interim financial reporting, due to which the profit for the quarter / period ended December 31, 2007 is more by Rs 73.77 Lacs.

2. Not charging forex forward cover discount in respect of forward exchange contracts entered into to hedge the foreign currency risk of a firm commitment to the extent of Rs 86.53 lacs to the Profit and loss account (The cumulative effect of the above being that the profit for the quarter / period ended December 31, 2007 is more by Rs 160.30 Lacs).