Nuchem 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:

“No adjustment has been considered for deferred tax assets on timing differences arising on unabsorbed losses and depreciation in accordance with Accounting Standard AS-22, the amount not being ascertained as the management considers the same to be accounted for at the year end and considering foot - note no 3 to the accompanying statement in that the management has not addressed to the qualifications in the report covering the accounting year ended on September 30, 2007, the loss disclosed in the said statement for the quarter under review has not been impacted.”