IOL Broadband

IOL Broadband Ltd has informed that in the limited review report of the Company for the quarter ended June 30, 2007, the Auditors of the Company have made the following observations:

1. Non-recognition of Foreign exchange gain / loss as required by AS 11 - "The effect of changes in Foreign Exchange Rates".

2. Non-recognition of Deferred Tax (Assets / Liability) as required by AS 22 - "Accounting for Taxes on Income".

3. Non-recognition of employee benefits as required by revised AS-15 "Employees' Benefits".

4. The variances in with published un-audited financial results :

Particulars: Operational Cost (including opening stock & purchases)
Published Figures: 21.62 lacs
Limited Review figures: 155.08 lacs

Particulars: Administration & General Cost
Published Figures: 54.91 lacs
Limited Review figures: 91.72 lacs

Particulars: Depreciation
Published Figures: 30.05 lacs
Limited Review figures: 41.98 lacs

Particulars: Fringe Benefit Tax
Published Figures: 2.50 lacs
Limited Review figures: 4.39 lacs

Particulars: Earning Per Share (Basic & Diluted)
Published Figures: 0.04 lacs
Limited Review figures: (0.07) lacs"