Agreement between SIX Exchange Regulation and Petroplus Holdings Ltd

Zurich - 2 November 2011

SIX Exchange Regulation has reached an agreement with Petroplus Holdings Ltd in connection with the violation of IFRS accounting standards in the 2009 annual financial statements. The error identified by SIX Exchange Regulation relates to the incorrect presentation of restructuring expenses as discontinued operations. Under the terms of the agreement, the company has made a payment in the amount of CHF 50,000 to the IFRS Foundation.

In its annual financial statements for 2009 Petroplus Holdings Ltd incorrectly presented expenses from the restructuring of a refinery as discontinued operations separately from the result from continuing operations. Due to the fact that the operations at the refinery were not discontinued and significant activities remain, the restructuring expenses should have correctly been presented as part of the result from continuing operations. The effect from the non-compliance with IFRS was an overstatement of the company's result from continuing operations by USD 137 million for the year 2009. The company presented an operating profit from continuing operations of USD 65 million rather than an operating loss from continuing operations of USD 72 million.

The investigation into Petroplus Holdings Ltd is concluded with an agreement as this course of action results in a more timely public disclosure than would have been the case with a duly completed sanction procedure. In addition, an agreement has to be published in accordance with the Rules of Procedure.

Periodic financial reporting is part of the information required under the Stock Exchange Act and the Listing Rules to ensure a functioning market. As part of this process, issuers must comply with the applicable accounting standards. It is the responsibility of SIX Exchange Regulation to ensure that issuers adhere to the transparency provisions imposed on them by the Regulatory Board.

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development