Polygenta Technologies 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. The accumulated losses of the Company have far exceeded its entire net worth. Besides, the financial institutions (except SICOM) and Banks have recalled term loans and working capital finances along with interest thereon and filed legal cases with Debt Recovery Tribunal for recovery. The accounts have, however, been prepared by the management on a going concern basis as explained in Note no. 3(a) of the financial results. This being a technical matter and in view of uncertainties, the Auditors are unable to express an opinion as to whether the Company can now operate as a going concern. However, as explained, should the Company be unable to continue as a going concern, the extent of the effect of the resultant adjustments as may have to be made to the accumulated losses, assets and liabilities of the Company as at the period end and loss for the period is presently not ascertainable;

2. Auditors are unable to express an opinion as to when and to what extent the book value of Rs 2909.69 lacs of the fixed and other assets of PET Chips project would be recovered in view of its closure since June 2000 due to technology failure. Besides, the management has not ascertained the impairment loss, in respect of the above project as required to be accounted for in accordance with the Accounting Standard 28 - Impairment of Assets issued by The Institute of Chartered Accountants of India. (For management representation, please refer note no.3(b) of the financial results);

3. Auditors are unable to express an opinion as to when and to what extent overdue receivables of Rs 296.10 lacs due from an Australian company, M/s Petrecycle Ltd would be recovered in view of lack of in formation about the financial status / net worth of that Company. As explained, the management is hopeful of recovering the full amount or to get equity in Petrecycle Ltd (subject to necessary approvals) in view of reasonable progress made by that Company in making a breakthrough in the pilot plant in Australia for the petrecycling process to be commercialized in the Company?s plant in India (For management representation, please refer note no 3(c) of the financial results);

4. The accounts of certain debtors, creditors, unsecured loans, secured loans from financial institutions and banks and loans & advances given are subject to confirmations, reconciliation and consequent adjustments, if any, which are presently not ascertainable. (For management representation, please refer note no 3(d) of the financial results);

5. Liability as may arise towards interest / compound interest / penalty on delayed / non-payment to certain sundry creditors (including small scale / ancillary industrial undertakings) / lenders of unsecured loans / statutory dues and withdrawal of sales tax exemption has not been ascertained. (For management representation, please refer note no 3(e) of the financial results):

6. No provision has been made in the accounts for interest payable of Rs 19604.50 lacs (including Rs 1596.66 lacs and Rs 4541.37 for the quarter and nine months ended respectively) to Financial Institutions / Banks and certain Unsecured lenders. (For management representation, please refer note no 3(f) of the financial results):

7. The above qualifications are also mentioned in Audit Report on the financial statement for the year ended March 31, 2007.

8. The Auditors further report that, without considering the items mentioned in paragraphs 1 to 5 above, the effect of which could not be determined, had the observation made by them in the paragraph 6 above been considered, the loss for the quarter and nine months ended would have been Rs 1728.31 lacs & Rs 4827.19 lacks respectively (as against the reported figure of Rs 131.65 lacs & Rs 285.82 lacs).

9. Based on Auditor’s comments referred to in Pare 8 above and other difference observed during limited review, the interest charge vary by 10% of the net loss or Rs 10 lacs whichever is higher from the amounts disclosed in the results.
(Rs in Lacs)

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Item Head		Figures as per the Published	Figures after Limited Review
			results for quarter ended       for the quarter ended
			December 31, 2007    		December 31, 2007
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Interest			  ---                            1596.66

Net Profit/(Loss) Before	(129.65)		        (1726.31)
Exceptional Items

Net Profit/(Loss) After		(131.65)			(1728.31)
Exceptional Items

Basic & Diluted Earning		(0.68)			          (8.89)
per share before
exceptional Item

Basic & Diluted Earning		(0.68)			          (8.90)
Per Share after
exceptional item
------------------------------------------------------------------------------------------

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