GHCL 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. The Company has restated certain foreign exchange balances at the period end date amounting to Rs 13.63 million. Hitherto, the Company did not follow the policy of restating certain foreign exchange balances. On account of this, the profit for the quarter is increased by this amount and is not comparable with the corresponding quarter’s results;

2. The Company has not made a provision in respect of deferred tax liability relating to the period ended December 31, 2007. The profit for the quarter is hence overstated by
Rs 64.84 million. A provision for deferred tax was made in the corresponding quarter ended December 31, 2006. Consequently, the corresponding quarter’s figures are not comparable to this extent.

3. The Company has not made a provision for the difference between option exercise price and the average price for stock options to be allotted to employees under the Company?s Employee Stock Option Scheme proportionately from the date of grant until the period end amounting to Rs 6.38 million. The profit for the quarter is hence overstated by Rs 6.38 million. Auditors have been informed that this will be accounted for at the accounting year end.”