Panama Petrochem - Limited Review For The Quarter Ended Sep 30, 2007

Panama Petrochem Ltd has informed 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 :

Changes made to the results declared by the Company in the meeting of the Board of Directors held on October 31, 2007 for the quarter ended September 30,2 007 are listed below :

1. The Net sales decreased by Rs 5.94 lacs due to wrong classification of Sales Tax paid.

2. Other Income decreased by Rs 0.31 lacs due to unaccounted Exchange Rate difference.

3. Consumption of Raw Material and Purchases of Goods increased by Rs 0.34 lacs due to few unaccounted purchases.

4. Other Expenditure has increased by Rs 1.29 lacs due to wrong classification of an item and accounting of few expenses.

5. During the quarter additions were made to the Motor Vehicles to the tune of Rs 14 lacs. Depreciation on the same had remained to be accounted now rectified.

6. Import Freight amounting to Rs 47.80 lacs remained to be accounted now rectified. It has no impact on the profitability of the company since the entire stock is not consumed during the period under review and is added to the stock of Material.