Patel Integrated Logistics Ltd has informed BSE that in the limited review report of the Company for the quarter ended December 31, 2007, the Auditors of the Company have made the following observations:

“1. No Provision has been made by the Company for the shortfall, if any, in respect of recovery of overdue lease debts amounting to Rs 65.64 lacs, as management is hopeful of recovering the same as adequate steps have been taken to recover the same, including initiating legal actions against the parties. However, the shortfall in recovery if any, is not ascertainable and accordingly the effect thereof on the financial statements cannot be ascertained.

2. Income / Expenditure includes inter-divisional transactions for service rendered or availed of which has not been quantified and adjusted in the statement. This has no
impact on the profit for the period under audit.”