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Auditor Report of Abhishek Corporation Ltd.

Mar 31, 2014

We have audited the accompanying financial statements of Abhishek Corporation Ltd. ("the Company"), which comprise the Balance Sheet as at March 31, 2014, the Statement of Profit and Loss for the year then ended and the Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position and financial performance of the Company in accordance with the accounting principles generally accepted in India including Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956 ("the Act"). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditors'' Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

(a) In the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2014; and

(b) In the case of the Statement of Profit and Loss, of the profit for the year ended on that date; and (C) In the case of the Cash Flow Statement, of the Cash Flows for the year ended on that date

Report on Other Legal and Regulatory Requirements

1. As required by Section 227(3) of the Act, we report that:

a. We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

b. In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books.

c. The Balance Sheet and the Statement of Profit and Loss dealt with by this Report are in agreement with the books of account.

d. In our opinion, the Balance Sheet, the Statement of Profit and Loss comply with the Accounting Standards referred to in section 211 (3C) of the Act;

e. On the basis of the written representations received from the directors as on March 31, 2014, taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2014, from being appointed as a director in terms of Section 274(1)(g) of the Act

Annexure as referred to in paragraph (3) of the Auditor''s Report to the members of Abhishek Corporation Ltd for the year ended on 31 March 2014

i a) The Company has maintained proper records showing full particulars including quantitative details and situation

of fixed assets.

b) The fixed Assets have been physically verified by the management at reasonable intervals. No material discrepancies were noticed on such verification by the management.

c) During the year, the Company has not disposed off a substantial part of fixed assets.

ii In respect of its inventories:

a) As explained to us, the management at the regular intervals and at end of the year physically verified inventories.

b) In our opinion and according to the information and explanation given to us, the procedure of physical verification of inventories followed by the management is reasonable and adequate in relation to the size of the Company and the nature of its business.

c) In our opinion and according to the information and explanation given to us, the Company has maintained adequate stock record for stock of stores and spares. As explained to us the discrepancies noticed on physical verification of stock of raw material and finished goods were not material.

iii a) During the year, Company has obtained a loan of Rs. 94,14,162/- from Directors and their relatives including any

firms/companies in which they are substantially interested. The terms and conditions of this loan are prima facie not prejudicial to the interest of the Company.

b) It is seen that, during the year, repayment of Rs. 1,42,36,876/- is made.

c) The Company has not granted any Loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 301 of the Company Act 1956.

iv In our opinion and according to the information and explanation given to us there is generally adequate internal control procedures, commensurate with the size of the Company and nature of its business with regard to purchase of inventories, fixed assets and with regard to sale of goods. Further, during the course of audit, we have neither come across nor have been informed of any continuing failure to correct major weaknesses in the aforesaid internal control procedures.

v a) According to the information and explanation given to us, we are of the opinion that the particulars of contracts and arrangement that need to be entered into the register maintained under Sec. 301 of the Companies Act, 1956 have been so entered.

b) In our opinion and according to the information and explanations given to us, the contracts and arrangements entered in the register maintained under Sec. 301 of the Companies Act, 1956 and exceeding the value of Rupees Five Lacs in respect of any party during the year have been made at prices which are reasonable having regards to prevailing market prices at the relevant time.

vi During the year under review the Company has not accepted any amount by way of Fixed Deposits pursuant to provisions of section 58A, 58AA, rules there under and the directives issued by RBI.

vii In our opinion, the Company''s present internal audit system is commensurate with its size and nature of it''s business.

viii We have broadly reviewed the books of account maintained by the Company pursuant to the rules prescribed by the Central Government for maintenance of cost records under section 209(1)(d) of the said Act in respect of textile industry and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of the records.

ix a) According to the information and explanation given to us, the Company is regular in depositing with appropriate

authorities undisputed statutory dues including provident fund, Income Tax, Wealth Tax, Sales Tax, Purchase Tax, Custom Duty, Excise Duty, Cess, Entry Tax & Service Tax except following dues which are due since more than six months but still not paid

i. Tax Deducted At Source Rs. 1,15,89,556/-

ii. Provident Fund Rs. 10,77,220/-

iii. Professional Tax Rs. 22,28,250/-

b) The disputed statutory dues have not been deposited on account of disputed matters pending before appropriate authorities as on March 31, 2014, are as under:

? in lacs

Sr. No. Authority Item Amount

1 Additional Commissioner of Central Excise Central Excise 15.70

2 Commissioner of Central Excise Custom Duty 88.29

3 Commissioner of Central Excise Service Tax 73.51

4 Regional Provident Fund Commissioner Provident Fund 91.64

x During the year the Company has incurred cash loss of Rs. 66,74,20,371/-. Further during the previous year the Company has incurred cash losses of Rs. 65,32,59,053/-. Thereby Company''s net worth has become negative and the Company has become a sick unit under the provisions of the Sick Industrial Companies Act.

xi In our opinion and according to the explanations and Company given to us, Corporate Debt Restructuring (CDR) Scheme has failed and withdrawn by the bankers, due to non-compliances of the terms and conditions of the CDR scheme, on the part of the Company. Interest on these loans has been provided at the rates as per the original sanctions. In the result Company is defaulted in repayment of the loans as are mentioned in Note 4A and Note 6 of the Balance Sheet.

xii As Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities, paragraph 4(xii) of the Order is not applicable.

xiii As the Company is not chit fund/ nidhi / mutual benefit funds / society to which the provisions of special statute relating to chit fund are applicable, paragraph 4(xiii) of the Order is not applicable.

xiv As the Company is not dealing or trading in shares, securities, debentures and other investments, paragraph 4(xiv) of the Order is not applicable.

xv The Company has not given any guarantee for loans taken by others from banks or financial institutions.

xvi During the year, the Company has not obtained any term loan from banks or financial institutions.

xvii In our opinion and according to the explanations and information given to us and on overall examination of the balance sheet of the Company, we report that no funds raised on short-term basis have been used for long-term investment and vice-versa. However, all the long term loans are recalled and hence re-classified under "Other Current Liabilities".

xviii During the year the Company has not made any preferential allotment of shares.

xix The Company has not issued any debentures during the year.

xx During the year, since the Company has not raised money by way of Public Issue, 4(xx) of the Order is not applicable.

xxi Based upon the audit procedure performed and information and explanation given by the management we report that, no fraud on or by the Company has been noticed or reported during the course of our audit for the year ended on 31st March, 2014.

For Shrikant & CO. Chartered Accountants FRN: 110186

Date : 14th August, 2014 Shrikant Shirdhonkar Place : Kolhapur Proprietor M. No. 015703


Mar 31, 2013

1. We have audited the attached Balance Sheet of Abhishek Corporation Ltd, Kolhapur as at 31st March 2013 and the Profit and Loss Account of the Company for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company''s management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditor''s Report) Order, 2003 issued by the Central Government of India in terms of sub section (4-A) of Section 227 of ''The Companies Act, 1956'' of India (the Act'') and on the basis of the books and records of the company as we considered appropriate and according to the information and explanation given to us, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said order.

4. Further to our comments in the annexure referred to in the paragraph (1) above we report that:

a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit.

b) In our opinion, proper books of account as required by Law have been kept by the Company so far as appears from our examination those books.

c) The Balance Sheet and Profit and Loss Account and cash flow statement dealt with by this Report are in agreement with the books of account.

d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in sub-section 3(c) of Section 211 of the Companies Act, 1956.

e) On the basis of written representations received from Directors, as on 31st March 2013, and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on 31st March, 2013 from being appointed as a Director in terms of Clause (g) of sub-section (1) of section 274 of the Companies Act, 1956;

f) In our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India.

i) in the case of the Balance Sheet, of the State of Affairs of the Company as at 31st March, 2013.

ii) in the case of Profit and Loss Account of the Loss for the year ended on that date.

iii) in the case of Cash Flow Statement, of the cash flows for the year ended on that date.

ANNEXURE AS REFERRED TO IN PARAGRAPH (3) OF THE AUDITOR''S REPORT TO THE MEMBERS OF ABHISHEK CORPORATION LTD (FORMERLY ABHISHEK MILLS LIMITED) FOR THE YEAR ENDED ON 31 MARCH 2013

i) a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

b) The fixed Assets have been physically verified by the management at reasonable intervals. No material discrepancies were noticed on such verification by the management.

c) During the year, the Company has not disposed off a substantial part of fixed assets. (ii) In respect of its inventories:

a) As explained to us, the management at the regular intervals and at end of the year physically verified inventories.

b) In our opinion and according to the information and explanation given to us, the procedure of physical verification of inventories followed by the management is reasonable and adequate in relation to the size of the company and the nature of its business.

c) In our opinion and according to the information and explanation given to us, the company has maintained adequate stock record for stock of stores and spares. As explained to us the discrepancies noticed on physical verification of stock of raw material and finished goods were not material.

(iii) a) During the year, company has obtained a loan of Rs. 3,00,000/-from Mr A R Mohite, director of the company. The terms and conditions of this loan are prima facie not prejudicial to the interest of the company.

b) It is seen that, during the year, repayment of Rs. 61,54,901/- is made.

c) The company has not granted any Loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 301.

(iv) In our opinion and according to the information and explanation given to us there is generally adequate internal Control procedures, commensurate with the size of the company and nature of its business with regard to purchase of inventories, fixed assets and with regard to sale of goods. Further, during the course of audit, we have neither come across nor have we been informed of any continuing failure to correct major weaknesses in the aforesaid internal control procedures.

(v) a) According to the information and explanation given to us, we are of the opinion that the particulars of contracts and arrangement that need to be entered into the register maintained under Sec. 301 of the Companies Act, 1956 have been so entered.

b) In our opinion and according to the information and explanations given to us, the contracts and arrangements entered in the register maintained under Sec. 301 of the Companies Act, 1956 and exceeding the value of Rupees Five Lacs in respect of any party during the year have been made at prices which are reasonable having regards to prevailing market prices at the relevant time.

vi) During the year under review the company has not accepted any amount by way of Fixed Deposits pursuant to provisions of section 58A, 58AA, rules there under and the directives issued by RBI.

(vii) In our opinion, the company''s present internal audit system is commensurate with its size and nature of it''s business.

(viii) We have broadly reviewed the books of account maintained by the company pursuant to the rules prescribed by the Central Government for maintenance of cost records under section 209(l)(d) of the Act in respect of textile industry and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of the records.

(ix) a) According to the information and explanation given to us, the company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund, Income Tax, Wealth Tax, Sales Tax, Purchase Tax, Custom Duty, Excise Duty, Cess, Entry Tax & Service Tax except following dues which are due since more than six months but still not paid

i. Tax Deducted At Source 1,14,27,607/-

ii. Provident Fund 6,31,197/-

iii. Professional Tax 18,43,550/-

b) The disputed statutory dues have not been deposited on account of disputed matters pending before appropriate authorities as on March 31, 2013, are as under:

Sr. No. Authority Item Amount (Rs. In Lacs)

1 Additional Commissioner Central Excise 15.70

of Central Excise

(x) During the year the Company has incurred cash loss of Rs. 65,32,59,053/- . Further during the previous year the Company has incurred cash losses of Rs. 54,09,19,492/-. Thereby company''s net worth has become negative and the company has become a sick unit under the provisions of the Sick Industrial Companies Act.

(xi) In our opinion and according to the explanations and informations given to us, Corporate Debt Restructuring (CDR) Scheme has failed and withdrawn by the bankers, due to non-compliances of the terms and conditions of the CDR scheme, on the part of the company. Interest on these loans has been provided at the rates as per the original sanctions. In the result company is defaulted in repayment of the following loans:

(Rs. In lacs) Ban Name Type of Credit Facility Total Liability including interest

Axis Bank Term Loan 2,156.21

Bank of Baroda Term Loan 3,253.40

Bank of India Cash Credit 3,693.20

Bank of India Term loan 2,276.16

Bank of India EPD Limit/ Packing credit 822.90

Bank of India Interest on EPC 131.68

Corporation Bank PCLCum FBDN-Cum-Cash Credit 1,131.43

Corporation Bank Term Loan 1,357.25

Corporation Bank Working Capital Term loan 728.78

Corporation Bank FITL -1 49.09

Corporation Bank FITL - II 79.76

Corporation Bank FITL - III 76.84

IDBI Bank Term loan -1 1,021.88

IDBI Bank Term loan - IV 259.10

IDBI Bank Term loan - II 156.60

IDBI Bank Term loan - III 112.02

IDBI Bank Cash Credit 539.40

IDBI Bank Packing Credit 139.98

IDBI Bank CAOD/Current 2.54

IOB Term loan 3,969.06

IOB Cash Credit 870.97

IOB Packing Credit 605.08

Punjab National Bank Term Loan 2,265.27

State Bank of Hyderabad Term loan 1,733.35

State Bank of Hyderabad FITL 106.99

State Bank of India Term Loan 3,960.01

State Bank of Patiala Term Loan 1,586.79

Union Bank of India Term Loan 3,352.35

(xii) As Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities, paragraph 4(xii) of the Order is not applicable

(xiii) As the Company is not chit fund/ nidhi / mutual benefit funds / society to which the provisions of special statute relating to chit fund are applicable, paragraph 4(xiii) of the Order is not applicable.

(xiv) As the Company is not dealing or trading in shares, securities, debentures and other investments, paragraph 4(xiv) of the Order is not applicable.

(xv) The Company has not given any guarantee for loans taken by others from banks or financial institutions.

(xvi) During the year, the company has not obtained any term loan from banks or financial institutions.

(xvii) In our opinion and according to the explanations and information given to us and on overall examination of the balance sheet of the company, we report that no funds raised on short-term basis have been used for long-term investment and vice-versa. However, all the long term loans are recalled and hence re-classified under "Other Current Liabilities".

(xviii) During the year the Company has not made any preferential allotment of shares.

(xix) The Company has not issued any debentures during the year.

(xx) During the year, since the Company has not raised money by way of Public Issue, 4(xx) of the Order is not applicable

(xxi) Based upon the audit procedure performed and information and explanation given by the management we report that, no fraud on or by the Company has been noticed or reported during the course of our audit for the year ended on 31 March, 2013

For Shrikant & CO.

FRN : 110186

Chartered Accountants

Place: Kolhaur Shrikant Shirdhonkar

Date: 26/08/2013 Proprietor

M. No. 015073


Mar 31, 2012

1. We have audited the attached Balance Sheet of Abhishek Corporation Ltd, (formerly Abhishek Mills Limited), Kolhapur as at 31st March 2012 and the Profit and Loss Account of the Company for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditor's Report) Order, 2003 issued by the Central Government of India in terms of sub section (4-A) of Section 227 of 'The Companies Act, 1956' of India (the 'Act') and on the basis of the books and records of the company as we considered appropriate and according to the information and explanation given to us, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said order.

4. Further to our comments in the annexure referred to in the paragraph (1) above we report that:

a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit.

b) In our opinion, proper books of account as required by Law have been kept by the Company so far as appears from our examination those books.

c) The Balance Sheet and Profit and Loss Account and cash flow statement dealt with by this Report are in agreement with the books of account.

d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in sub-section 3(c) of Section 211 of the Companies Act, 1956. .

e) On the basis of written representations received from Directors, as on 31st March 2012, and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on 31st March, 2012 from being appointed as a Director in terms of Clause (g) of sub-section (1) of section 274 of the Companies Act, 1956;

f) In our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India.

i) in the case of the Balance Sheet, of the State of Affairs of the Company as at 31st March, 2012.

ii) in the case of Profit and Loss Account of the Loss for the year ended on that date.

iii) in the case of Cash Flow Statement, of the cash flows for the year ended on that date.

ANNEXURE AS REFERRED TO IN PARAGRAPH (3) OF THE AUDITOR'S REPORT TO THE MEMBERS OF ABHISHEK CORPORATION LTD (FORMERLY ABHISHEK MILLS LIMITED)

FOR THE YEAR ENDED ON 31 MARCH 2012

(i) a) The Company has maintained proper records showing full particulars including quantitative details and situation

of fixed assets.

b) The fixed Assets have been physically verified by the management at reasonable intervals. No material discrepancies were noticed on such verification by the management.

c) During the year, the Company has not disposed off a substantial part of fixed assets.

(ii) In respect of its inventories:

a) As explained to us, the management at the regular intervals and at end of the year physically verified inventories.

b) In our opinion and according to the information and explanation given to us, the procedure of physical verification of inventories followed by the management is reasonable and adequate in relation to the size of the company and the nature of its business.

c) In our opinion and according to the information and explanation given to us, the company has maintained adequate stock record for stock of stores and spares. As explained to us the discrepancies noticed on physical verification of stock of raw material and finished goods were not material.

(iii) a) During the year, company has obtained a loan of Rs. 1,85,00,000/- from Mr A R Mohite, director of the company.

The terms and conditions of this loan are prima facie not prejudicial to the interest of the company.

b) It is seen that, during the year, repayment of Rs. 35,42,494/- is made. Out of which, Rs. 20,20,000 is by book entry.

c) The company has not granted any Loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 301.

(iv) In our opinion and according to the information and explanation given to us there is generally adequate internal control procedures, commensurate with the size of the company and nature of its business with regard to purchase of inventories, fixed assets and with regard to sale of goods. Further, during the course of audit, we have neither cj.'ioe across nor have we been informed of any continuing failure to correct major weaknesses in the aforesaid intern il control procedures.

(v) a) According to the information and explanation given to us, we are of the opinion that the particulars of contracts

and arrangement that need to be entered into the register maintained under Sec. 301 of the Companies Act, 1956 have been so entered.

b) In our opinion and according to the information and explanations given to us, the contracts and arrangements entered in the register maintained underSec. 301 of the Companies Act, 1956 and exceeding the value of Rupees Five Lacs in respect of any party during the year have been made at prices which are reasonable having regards to prevailing market prices at the relevant time.

(vi) During the year under review the company has not accepted any amount by way of Fixed Deposits pursuant to provisions of section 58A, 58AA, rules there under and the directives issued by RBI.

(vii) In our opinion, the company's present internal audit system is commensurate with its size and nature of it's business.

(viii) We have broadly reviewed the books of account maintained by the company pursuant to the rules prescribed by the Central Government for maintenance of cost records under section 209(l)(d) of the Act in respect of textile industry and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of the records.

(ix) a) According to the information and explanation given to us, the company is regular in depositing with appropriate

authorities undisputed statutory dues including provident fund, Income Tax, Wealth Tax, Sales Tax, Purchase Tax, Custom Duty, Excise Duty, Cess, Entry Tax & Service Tax except following dues which are due since more than six months but still not paid

i. Tax Deducted At Source 10,635,440

ii. Provident Fund 22,158,036

iii. Professional Tax 1,351,275

b) The disputed statutory dues have not been deposited on account of disputed matters pending before appropriate authorities as on March 31, 201Z, are as under:

Sr. No. Authority Item Amount (Rs. In Lacs)

1 High Court, Mumbai Income Tax Interest-A.Y. 2006-07 14.22

2 C.I.T. (Appeals) Income Tax Interest-A.Y. 2007-08 333.62

(x) During the year the Company has incurred cash loss of Rs. 65,32,59,053/- . Further during the previous year the Company has incurred cash losses of Rs. 54,09,19,492/-. Thereby company's net worth has become negative and the company has become a sick unit under the provisions of the Sick Industrial Companies Act.

(xi) In our opinion and according to the explanations and informations given to us, Corporate Debt Restructuring (CDR) Scheme has failed and withdrawn by the bankers, due to non-compliances of the terms and conditions of the CDR scheme, on the part of the company. Interest on these loans has been provided at the rates as per the original sanctions. In the result company is defaulted in repayment of the following loans:

(Rs. In lacs)

Bank Name Type of Credit Balances Interest Others Total Rs. Facility overdue for including February interest upto and March 31/01/2012

Axis Bank Term Loan 1,805.07 46.94 - 1,852.01

Bank of Baroda Term Loan 2,676.84 77.59 - 2,754.44

Bank of India Cash Credit 3,080.19 81.39 - 3,161.58

Bank of India Term loan 1,949.06 44.10 - 1,993.16

Bank of India EPD Limit/ Packing credit 716.73 14.41 - 731.14

Bank of India Interest on EPC 105.69 3.42 - 109.11

Corporation Bank Cash Credit 953.51 24.80 - 978.31

Corporation Bank Term Loan 1,136.24 29.55 - 1,165.79

Corporation Bank Working Capital Term loan 610.10 15.86 - 625.96

Corporation Bank FITL-I 41.10 1.07 - 42.17

Corporation Bank FITL - II 66.78 1.73 - 68.51

Corporation Bank FITL - III 64.32 1.67 - 65.99

IDBI Bank Term loan 863.88 21.07 - 884.95

IDBI Bank Term loan 215.52 5.70 - 221.22

IDBI Bank Term loan 132.25 3.02 - 135.27

IDBI Bank Term loan 91.23 2.72 - 93.95

IDBI Bank Cash Credit 431.95 19.52 - 451.47

IDBI Bank Packing Credit 117.85 2.96 - 120.81

IDBI Bank CAOD/ Current 2.13 0.06 - 2.19

Indian Overseas Bank Term loan 3,341.53 84.06 - 3,425.59

Indian Overseas Bank Cash Credit 783.72 19.72 11.76 815.20

Indian Overseas Bank Packing Credit 440.78 11.09 - 451.87

Punjab National Bank Term Loan 1,901.74 48.65 - 1,950.39

State Bank of Hyderabad Term loan 1,539.23 32.88 (43.21) 1,528.90

State Bank of Hyderabad FITL 92.40 1.97 - 94.37

State Bank of India Term Loan 3,268.86 91.89 - 3,360.75

State Bank of Patiala Term Loan 1,306.16 37.27 - 1,343.43

Union Bank of India Term Loan 2,668.31 89.68 - 2,757.99

30,403.17 814.79 (31.46) 31,186.51

(xii) As Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities, paragraph 4(xii) of the Order is not applicable

(xiii) As the Company is not chit fund/ nidhi / mutual benefit funds / society to which the provisions of special statute relating to chit fund are applicable, paragraph 4(xiii) of the Order is not applicable.

(xiv) As the Company is not dealing or trading in shares, securities, debentures and other investments, paragraph 4(xiv) of the Order is not applicable.

(xv) The Company has not given any guarantee for loans taken by others from banks or financial institutions.

(xvi) During the year, the company has not obtained any term loan from banks or financial institutions.

(xvii) In our opinion and according to the explanations and information given to us and on overall examination of the balance sheet of the company, we report that no funds raised on short-term basis have been used for long-term investment and vice-versa. However, all the long term loans are recalled and hence re-classified under "Other Current Liabilities".

(xviii) During the year the Company has not made any preferential allotment of shares.

(xix) The Company has not issued any debentures during the year.

(xx) During the year, since the Company has not raised money by way of Public Issue, 4(xx) of the Order is not applicable

(xxi) Based upon the audit procedure performed and information and explanation given by the management we report that, no fraud on or by the Company has been noticed or reported during the course of our audit for the year ended on 31 March, 2012

For P. M. VARDHE & CO. FRN: 111274W Chartered Accountants

P. M. Vardhe

Place: Kolhaur Proprietor

Date: 02.07.2012 M. No. 031817


Mar 31, 2010

1. We have audited the attached Balance Sheet of Abhishek Corporation Ltd, (formerly Abhishek Mills Limited), Kolhapur as at 31st March 2010 and the Profit and Loss Account of the Company for the year ended on that date annexed thereto. These financial statements are the responsi -bility of the Companys management. Our responsibil ity is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclo sures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors Report) Order, 2003 issued by the Central Government of India in terms of sub section (4-A) of Section 227 of The Companies Act, 1956 of India (the Act) and on the basis of the books and records of the company as we considered appropriate and according to the information and explanation given to us, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said order.

4. Further to our comments in the annexure referred to in the paragraph (1) above we report that:

a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit.

b) In our opinion, proper books of account as required by Law have been kept by the Company so far as appears from our examination those books.

c) The Balance Sheet and Profit and Loss Account and cash flow statement dealt with by this Report are in agreement with the books of account.

d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in sub-section 3(c) of Section 211 of the Companies Act, 1956.

e) On the basis of written representations received from Directors, as on 31sl March 2010, and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on 31st March, 2010 from being appointed as a Director in terms of Clause (g) of sub-section (1) of section 274 of the Companies Act, 1956;

f) In our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India.

i) in the case of the Balance Sheet, of the State of Affairs of the Company as at 31st March, 2010.

ii) in the case of Profit and Loss Account of the Loss for the year ended on that date.

iii) in the case of Cash Flow Statement, of the cash flows for the year ended on that date.

ANNEXURE AS REFERRED TO IN PARAGRAPH (3) OF THE AUDITORS REPORT TO THE MEMBERS OF ABHISHEK CORPORATION LTD (FORMERLY ABHISHEK MILLS LIMITED) FOR THE YEAR ENDED ON 31 MARCH 2010

(i) a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

b) The fixed Assets have been physically verified by the management at reasonable intervals. No material discrep ancies were noticed on such verification by the management.

c) During the year, the Company has not disposed off a substantial part of fixed assets. (ii) In respect of its inventories:

a) As explained to us, the management at the regular intervals and at end of the year physically verified inventories.

b) In our opinion and according to the information and explanation given to us, the procedure of physical verifica tion of inventories followed by the management is reasonable and adequate in relation to the size of the company and the nature of its business.

c) In our opinion and according to the information and explanation given to us, the company has maintained adequate stock record for stock of stores and spares. As explained to us the discrepancies noticed on physical verification of stock of raw material and finished goods were not material.

(iii) a) During the year the company has obtained a loan of Rs. 8,69,14,469/- from three related parties. The rate of interest and other terms and conditions, are prima facie not prejudicial to the interest of the company.

b) Since the loan has been borrowed free of interest the question of payment of Interest does not arise.

c) The Principal amount is not overdue.

d) The company has not granted any Loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 301.

(iv) In our opinion and according to the information and explanation given to us there an generally adequate internal control procedures, commensurate with the size of the company and nature of its business with regard to purchase of inventories, fixed assets and with regard to sale of goods. Further, during the course of audit, we have neither come across nor have we been informed of any continuing failure to correct major witness in the aforesaid internal control procedures.

(v) a) According to the information and explanation given to us, we are of the opinion that the particulars of contracts and arrangement that need to be entered into the register maintained under Sec. 301 of the Companies Act, 1956 have been so entered.

b) In our opinion and according to the information and explanations given to us, the contracts and arrangements entered in the register maintained under Sec. 301 of the Companies Act, 1956 and exceeding the value of Rupees Five Lacs in respect of any party during the year have been made at prices which are reasonable having regards to prevailing market prices at the relevant time.

(vi) During the year under review the company has not accepted any amount by way of Fixed Deposits pursuant to provisions of section 58A, 58AA, rules there under and the directives issued by RBI.

(vii) In our opinion, the companys present internal audit system is commensurate with its size and nature its business.

(viii) "We have broadly reviewed the books of account maintained by the company pursuant to the rules prescribed by the Central Government for maintenance of cost records under section 209(1 )(d) of the Act in respect of textile industry and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of the records."

(ix) a) According to the information and explanation given to us, the company is regular in depositing with appropri ate authorities undisputed statutory dues including provident fund, Income Tax, Wealth Tax, Sales Tax, Pur chase Tax, Custom Duty, Excise Duty, Cess, Entry Tax & Service Tax except following dues which are due since more than six months but still not paid i. TDS under section 192B 21,14,450

b) The disputed statutory dues aggregating to Rs. 4,89,60,735/- have not been deposited on account of disputed matters pending before appropriate authorities as on March 31, 2010, are as under:

Name of Statute Nature of Amount Forum where dispute is pending

Income Tax Act Income Tax 4,89,60,735/- Deputy Commissioner of 1961 Dues Income Tax, Circle II, Kolhapur

(x) The company does not have any accumulated losses as at March 31, 2010. During the year the Company has incurred cash loss of Rs. 23,02,49,162/- . Further during the previous year the Company has not incurred any cash losses.

(xi) As on March 31, 2010 interest of New Consortium Bankers for the month of February 2010 and March 2010 amounting Rs. 3,35,33,048/- is due but still not paid. Further Installments of IDBI of Rs. 5, 85,3O,000/-are due but still not paid.

(xii) As Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities, paragraph 4(xii) of the Order is not applicable

(xiii) As the Company is not chit fund/ nidhi / mutual benefit funds / society to which the provisions of special statute relating to chit fund are applicable, paragraph 4(xiii) of the Order is not applicable.

(xiv) As the Company is not dealing or trading in shares, securities, debentures and other investments, paragraph 4( 17)

of the Order is not applicable. (xv) The Company has not given any guarantee for loans taken by others from banks or financial institutions. (xvi) The company has applied the term loans for which they were obtained.

(xvii) In our opinion and according to the explanations and information given to us and on overall examination of the balance sheet of the company, we report that no funds raised on short-term basis have been used for long-term investment and vice-versa.

(xviii) During the year the Company has made any preferential allotment of 20,00,000 equity shares of Rs. 10/- each with an issue price of Rs. 25/- per shares to Mrs. Rama J. Swetta who is not a party covered in the register maintained under section 301.The said allotment has been made pursuant to chapter VII of Securities and Ex change Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009. The price at which shares have been allotted is not prejudicial to the interest of the Company.

(xix) The Company has not issued any debentures during the year.

(xx) During the year, since the Company has not raised money by way of Public Issue, 4(xx) of the Order is not applicable

(xxi) Based upon the audit procedure performed and information and explanation given by the management we report that, no fraud on or by the Company has been noticed or reported during the course of our audit for the year ended on 31 March, 2010



For B.J. INGROLE & CO.

Chartered Accountants

Place: Kolhapur B.J. Ingrole Date: 27.05.2010 Proprietor M. No. 14094