UB Engineering - Limited Review for the quarter ended Sep 30, 2007

UB Engineering Ltd has informed BSE that in the limited review report of the Company for the quarter ended September 30, 2007, the Auditors of the Company have made the following observations:

"1. With respect to observations in the audited accounts for the year ended March 31, 2007, on going concern basis aspect, on Income Tax Demands under appeal aggregating to Rs 110 Lakhs, recoverability of other Sundry Debtors amounting to Rs 819.58 Lakhs, the loss that may arise for assets located at Kochi site and pending reconciliation of Provident Fund account. The management has replied that there are no significant developments during the Quarter and Half year ended September 30, 2007.

As regards demand for Income Tax referred to therein, the same is still under appeal.

2. The Company has accumulated loss which gives rise to deferred tax asset. As a policy, the Company recognizes such asset only in its Annual Accounts in accordance with the Accounting Standard 22. No amount of such asset is, therefore, recognized for the said Quarter and Half year ended September 30, 2007."