Premier clarifies on news item

With reference to the news item appearing in a leading financial daily titled "PAL land auction put off again", Premier Ltd has clarified to BSE in this regard as follows:

"1. The headline incorrectly implies that the said land belongs to Premier Ltd (formerly known as PAL) whereas, in fact, it is owned by PAL-Peugeot Ltd (currently under liquidation by the Mumbai High Court).

2. Premier Ltd and PAL-Peugeot Ltd are two separate, public limited, Companies. Premier Ltd is only a 32% shareholder of PAL-Peugeot Ltd. Often, they are confused with each other on various issues.

3. In connection with the subject of the article the Company clarify that the land being sold by the Liquidator does not belong to Premier Ltd. In 1962-63, the land in question, measuring 181 acres, was originally purchased by Premier Ltd., with the prior, written approval of the Collector, on behalf of the Government. The Collector's approval was without any condition of "unearned income".

4. In 1994, this 181 acres of land was sold by Premier Ltd to PAL-Peugeot Ltd. This sale was done by a registered conveyance, duly stamped and again, with the prior written approval of the Collector, who did not impose any condition of "unearned income".

5. Out of the 181 acres of PAL-Peugeot land, only 47 acres (26%) was originally purchased by Premier Ltd from the village panchayats and not 72 acres (40%) as stated in the above news article. The balance 132 acres were acquired from private parties and 2 acres directly from the State Government.

6. Today, Premier Ltd continues to own 216 acres of land adjacent to PAL-Peugeot Ltd's land. This property belongs solely to the Company."