Principal Pharmaceuticals- Limited Review For The Quarter Ended June 30, 2007

Principal Pharmaceuticals & Chemicals 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. Accounts prepared on the assumption of the going concern basis despite huge losses resulting in total erosion of the net worth of the Company in view of Ongoing efforts being made by the Company for recovery.
2. Non-provision for interest to financial institution and bank in view of the fact that the Company is preparing for rehabilitation scheme expecting the waiver from the institution.
3. Non-provision for doubtful debts of debts of Rs 57,31,130 pending final settlement with the party.
4. Non compliance of Accounting Standard - 28 to the extent of effect of impairment in the value of assets not been recognized in the accounts. In view of pending restructuring proposal value of impairment can not be ascertained.