PEARL Polymers 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. Balances of parties included under the heads Sundry Debtors, Loans & Advances and Sundry Creditors are subject to confirmation.

2. The impact of para (1) above on the net profit for the period ended December 31, 2007 could not be determined.”