EID Parry India 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. In respect of, one of the joint ventures and the overseas subsidiary the financial statements have not been audited and auditors have relied upon the unaudited financial statements as given by the management.

2. In respect of one of the subsidiary, pending announcement of the final rates of subsidy by the Government of India for the three quarters ended December 31, 2007, the subsidiary have accrued subsidy income based on management estimates, which has resulted in subsidy income being lower by Rs 114.52 crores (as compared to the base rates). Such accrual is subject to adjustments on finalization, the impact of which is presently not ascertainable.

3. In respect of one of the subsidiary recognition of further losses in reporting of an investment in an associate, Prathyusha Chemicals and Fertilisers Ltd, under the equity method has been discontinued based on the last available audited financial statements for the year ended March 31, 2007, audited by other auditors.”