Gulf Oil Corporation - Limited Review For The Quarter Ended Dec 31, 2006

Gulf Oil Corporation Ltd has informed that in the limited review report of the Company for the quarter ended December 31, 2006, the Auditors of the Company have made the following observations:1. Debtors and advances include outstanding for a period of more than three years Rs 850.41 lakhs (net of provisions of Rs 724.68 lakhs).2. Other Income for the quarter ended December 31, 2006 includes Rs 712 Lakhs (for the nine months period ended December 31, 2006 - Rs 1987 Lakhs) towards sale of development rights in Property to a wholly owned subsidiary. Part of the consideration i.e. Rs 1537 Lakhs for this sale was received by way of allotment of preference shares in this subsidiary. The Auditors of this subsidiary have qualified their audit opinion in respect of the financial statements for the year ended March 31, 2006 which were prepared on going concern basis.3. Fixed assets include capital work-in-progress and incidental expenditure during construction amounting to Rs 1677.16 Lakhs in respect of Specialty Chemicals Division which is being carried forward as an asset. Having regard to the considerable delay in the implementation of the Project, the Auditors are unable to comment on the appropriateness of carrying over this expenditure at cost.