DCM Shriram Consolidated 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. As per the policy followed by the Company for preparation of quarterly results, the sugar off-season expenditure amounting to Rs 1 crores and Rs 19.85 crores for the quarter and nine months ended December 31, 2007, respectively have been deferred for inclusion in the cost of sugar to be produced in remaining part of the financial year. As a result profit after tax for the quarter and nine months is higher by Rs 0.77 crores and Rs 15.35 Crores respectively. (Refer note 2)

2. Attention is invited to note 3 which sets out the position relating to State Advised Price announced by the Uttar Pradesh Govt. for sugar season 2007-08. Pending final determination of revised SAP for this sugar season, the effect thereof on these results cannot be determined at this stage.”