Auditor Report of ACIL Cotton Industries Ltd.

Mar 31, 2014

1. We have audited the attached Balance Sheet of ACIL Cotton Industries Limited as at 31st March, 2014 and the related Profit and Loss Account and Cash Flow Statement for the year ended on that date, which we have signed under reference to this report. 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 have 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 the 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 (4A) of Section 227 of ''The Companies Act, 1956'' of India and on the basis of such checks as we considered appropriate and according to the information and explanations given to us, we set out in the Annexure, a statement on the matters specified in paragraphs 4 and 5 of the said Order to the extent applicable.

4. Further to our comments in the Annexure referred in paragraph (3) 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 Accounts as required by law, have been kept by the Company so far as appears from our examination of those Books;

c) The Balance Sheet, 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 and Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956, to the extent applicable.

e) On the basis of confirmations received from the Directors of the Company and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on 31st March, 2014 from being appointed as a Director of the Company in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956 and

f) Subject to the matters reported above, In our opinion, and to the best of our information and according to the explanations given to us, the said accounts read together with the Notes thereon 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 Balance Sheet, of the state of the affairs of the Company as at 31st March, 2014,

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

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

(Referred to in Paragraph (3) of our Report of even date)

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

(ii) (a) As explained to us, the stocks of finished and semi-finished goods and raw materials of the Company have been physically verified by the Management at reasonable intervals during the year. In respect of Stock lying with third parties, these have substantially been confirmed by them.

(b) In our opinion and according to the information and explanations given to us the procedure of physical verification of stocks followed by the Management are reasonable and adequate in relation to Size of the company and nature of its business.

(c) In our opinion and according to the information and explanations given to us, the company is maintaining proper records of inventory. The discrepancies noticed between the physical stocks as verified by the Management and the Book records were not material having regard to the size of the operations of the company.

(iii) (a) In our opinion the company has not granted or taken any loans, secured or unsecured to/from companies, firms or other parties covered in the Register maintained under Section 301 of the Companies Act,1956.Consequently requirement of clauses (iii b), (iii c), (iii d) of paragraph 4 of the order are not applicable.

(iv) In our opinion and according to information and explanations given to us, during the course of our audit there are adequate internal control procedures commensurate with the size of the Company and the nature of its business for the purchases of inventory, and fixed assets and for the sale of goods. During the course of our audit, we have not observed any continuing failure to correct major weakness in internal controls.

(v) According to the information and explanations given to us, that no transactions need to be entered into the register maintained under section of 301 of the Companies Act 1956. Consequently requirement of clause (v,b) of paragraph 4 of the Order is not applicable.

(vi) In our opinion the company has not accepted any deposits from the public, within the meaning of Section 58A and 58AA of the Companies Act,1956.

(vii) The company has an internal audit system which in our opinion is commensurate with the size and nature of business.

(viii) To the best of our knowledge and according to explanations given to us the Central Government has not prescribed maintenance of cost records under Section 209 (1) (d) of the Companies Act, 1956 for any of the products manufactured by the Company.

(ix) (a) According to information and explanations given to us, The company is regular in depositing with Appropriate Authorities undisputed statutory dues including Provident fund, Sales tax, Excise-duty, cess and other material statutory dues applicable to it. We are informed that employees state insurance act, 1948 is not applicable to the company.

(b) According to the information and explanations given to us, there were no undisputed amounts payable in respect of dues as referred to (ix)(a) above, which were outstanding as on 31st March, 2014 for a period of more than six months from the date they became payable.

(c) According to the information and explanations given to us, entire sales tax outstanding amount has been paid by company.

(x) The company has accumulated losses as at the end of the Financial year 31st March, 2014 although non exceeding its networth and the company has also incurred cash losses at the current financial year, 31st March 2014 as well as in the immediately preceding financial year also.

(xi) In our opinion and according to the information and explanations given to us, the company has settled and paid all secured loans fully.

(xii) In our opinion the company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

(xiii) In our opinion and according to information and explanation given to us, the company is not a chitfund, nidhi / mutual benefit fund/society therefore the provisions of clause 4(xiii) of the Companies (Auditors Report) Order, 2003 are not applicable to the company.

(xiv) According to the information and explanations given to us, the company has been dealing or trading in shares, securities, debentures and other investments.

(xv) In our opinion and according to the information and explanations given to us, the company has not given guarantee for loans taken by others from banks or financial institutions. Accordingly provisions of clause 4 (xv) of the Companies (Auditors Report) Order,2003 are not applicable to the company.

(xvi) In our opinion and information and explanations given to us, the company had not raised any term loan during the year under review.

(xvii) In our opinion and according to the information and explanations given to us, and according to Cash flow statement, on an overall examinations of the Balance Sheet of the Company we report that no funds raised on short term basis have been utilized for long term investment and vice-versa.

(xviii) According to information and explanations given to us, the Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956.

(xix) In our opinion and according to information and explanations given to us, the Company has not issued any secured debentures during the period covered by the report. Accordingly, the provisions of clause 4 (xix) of the Companies (Auditors Report) Order, 2003 are not applicable to the company.

(xx) During the period covered by our audit report, the Company has not raised any money by public issues.

(xxi) To the best of our knowledge and belief and according to the information and explanations given to us, no fraud on or by the company has been noticed or reported during the course of our audit.

For Mukesh M Chokshi & Co., Chartered Accountants

Sd/- Place : Mumbai [MUKESH CHOKSHI] Dated : 01/08/2014 PROPRIETOR MEM NO. 31751

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Mar 31, 2013

1. We have audited the attached Balance Sheet of ACIL Cotton Industries Limited as at 31st March, 2013 and the related Profit and Loss Account and Cash Flow Statement for the year ended on that date, which we have signed under reference to this report. 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 have 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 the 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 (4A) of Section 227 of ''The Companies Act, 1956'' of India and on the basis of such checks as we considered appropriate and according to the information and explanations given to us, we set out in the Annexure, a statement on the matters specified in paragraphs 4 and 5 of the said Order to the extent applicable.

4. Further to our comments in the Annexure referred in paragraph (3) 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 Accounts as required by law, have been kept by the Company so far as appears from our examination of those Books;

c) The Balance Sheet, 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 and Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956, to the extent applicable.

e) On the basis of confirmations received from the Directors of the Company 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 of the Company in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956 and

f) Subject to the matters reported above, In our opinion, and to the best of our information and according to the explanations given to us, the said accounts read together with the Notes thereon 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 Balance Sheet, of the state of the affairs of the Company as at 31st March, 2013,

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

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

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

(ii) (a) As explained to us, the stocks of finished and semi-finished goods and raw materials of the Company have been physically verified by the Management at reasonable intervals during the year. In respect of Stock lying with third parties, these have substantially been confirmed by them.

(b) In our opinion and according to the information and explanations given to us the procedure of physical verification of stocks followed by the Management are reasonable and adequate in relation to Size of the company and nature of its business.

(c) In our opinion and according to the information and explanations given to us, the company is maintaining proper records of inventory. The discrepancies noticed between the physical stocks as verified by the Management and the Book records were not material having regard to the size of the operations of the company.

(iii) (a) In our opinion the company has not granted or taken any loans, secured or unsecured to/from companies, firms or other parties covered in the Register maintained under Section 301 of the Companies Act,1956.Consequently requirement of clauses (iii b), (iii c), (iii d) of paragraph 4 of the order are not applicable.

(iv) In our opinion and according to information and explanations given to us, during the course of our audit there are adequate internal control procedures commensurate with the size of the Company and the nature of its business for the purchases of inventory, and fixed assets and for the sale of goods. During the course of our audit, we have not observed any continuing failure to correct major weakness in internal controls.

(v) According to the information and explanations given to us, that no transactions need to be entered into the register maintained under section of 301 of the Companies Act 1956. Consequently requirement of clause (v,b) of paragraph 4 of the Order is not applicable.

(vi) In our opinion the company has not accepted any deposits from the public, within the meaning of Section 58A and 58AA of the Companies Act,1956.

(vii) The company has an internal audit system which in our opinion is commensurate with the size and nature of business.

(viii) To the best of our knowledge and according to explanations given to us the Central Government has not prescribed maintenance of cost records under Section 209 (1) (d) of the Companies Act, 1956 for any of the products manufactured by the Company.

(ix) (a) According to information and explanations given to us, The company is regular in depositing with Appropriate Authorities undisputed statutory dues including Provident fund, Sales tax, Excise-duty, cess and other material statutory dues applicable to it. We are informed that employees state insurance act, 1948 is not applicable to the company.

(b) According to the information and explanations given to us, there were no undisputed amounts payable in respect of dues as referred to (ix)(a) above, which were outstanding as on 31st March, 2013 for a period of more than six months from the date they became payable.

(c) According to the information and explanations given to us, entire sales tax outstanding amount has been paid by company.

(x) The company has accumulated losses as at the end of the Financial year 31st March, 2013 although non exceeding its networth and the company has also incurred cash losses at the current financial year, 31st March 2013 as well as in the immediately preceding financial year also.

(xi) In our opinion and according to the information and explanations given to us, the company has settled and paid all secured loans fully.

(xii) In our opinion the company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

(xiii) In our opinion and according to information and explanation given to us, the company is not a chit fund, nidhi / mutual benefit fund/society therefore the provisions of clause 4(xiii) of the Companies (Auditors Report) Order, 2003 are not applicable to the company.

(xiv) According to the information and explanations given to us, the company has been dealing or trading in shares, securities, debentures and other investments.

(xv) In our opinion and according to the information and explanations given to us, the company

has not given guarantee for loans taken by others from banks or financial institutions. Accordingly provisions of clause 4 (xv) of the Companies (Auditors Report) Order,2003 are not applicable to the company.

(xvi) In our opinion and information and explanations given to us, the company had not raised any term loan during the year under review.

(xvii) In our opinion and according to the information and explanations given to us, and according to Cash flow statement, on an overall examinations of the Balance Sheet of the Company we report that no funds raised on short term basis have been utilized for long term investment and vice-versa.

(xviii) According to information and explanations given to us, the Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956.

(xix) In our opinion and according to information and explanations given to us, the Company has not issued any secured debentures during the period covered by the report. Accordingly, the provisions of clause 4 (xix) of the Companies (Auditors Report) Order, 2003 are not applicable to the company.

(xx) During the period covered by our audit report, the Company has not raised any money by public issues.

(xxi) To the best of our knowledge and belief and according to the information and explanations given to us, no fraud on or by the company has been noticed or reported during the course of our audit.

For Dinesh S. Bang & Co.,

Chartered Accountants

Sd/-

Place : Mumbai [DINESH BANG]

Dated : 01/08/2013 PROPRIETOR

MEM NO. 039978

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Mar 31, 2012

1. We have audited the atta ched Balance Sheet of ACIL Cotton Industries Limited as at 31st March, 2012 and the related Profit and Loss Account and Cash Flow Statement for the year ended on that date, which we have signed under reference to this report. 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 have conducted our audit in accordance with auditing standards generally accepted in India. Those standa rds 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 the 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 (4A) of Section 227 of `The Companies Act, 1956' of India and on the basis of such checks as we cons idered appropriate and according to the information and explanations given to us, we set out in the Annexure, a statement on the matters specified in paragraphs 4 and 5 of the said Order to the extent applicable.

4. Further to our comments in the Annexure referred in paragraph (3) 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 Accounts as required by law, have been kept by the Company so far as appears from our examination of those Books;

c) The Balance Sheet, 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 and Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956, to the extent applicable.

e) On the basis of confirmations received from the Directors of the Company 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 of the Company in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956 and

f) Subject to the matters reported above, In our opinion, and to the best of our information and according to the explanations given to us, the said accounts read together with the Notes thereon give the in formation 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 Balance Sheet, of the state of the affairs of the Company as at 31st March, 2012,

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

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

ANNEXURE TO THE AUDITORS' REPORT

(Referred to in Paragraph (3) of our Report of even date)

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

(ii) (a) As explained to us, the stocks of finished and semi -finished goods and raw materials of the Company have been physically verified by the Management at reasonable interva ls during the year. In respect of Stock lying with third parties , these have substantially been confirmed by them.

(b) In our opinion and according to the information and explanations given to us the procedure of physical verification of stocks followed by the Management are reasonable and adequate in relation to Size of the company and nature of its business.

(c) In our opinion and according to the information and explanations given to us, the company is maintaining proper records of inventory. The discrepancies noticed between the physical stocks as verified by the Management and the Book records were not material having regard to the size of the operations of the company.

(iii) (a) In our opinion the company has not granted or taken any loans, secured or unsecured to/from companies, firms or other parties covered in the Register maintained under Section 301 of the Companies Act,1956.Consequently requirement of clauses (iii b), (iii c), (iii d) of paragraph 4 of the order are not applicable.

(iv) In our opinion and according to information and explanations given to us, during the course of our audit there are adequate internal control procedures commensurate with the size of the Company and the nature of its business for the purchases of i nventory, and fixed assets and for the sale of goods. During the course of our audit, we have not observed any continuing failure to correct major weakness in internal controls.

(v) According to the information and explanations given to us, that no transactions need to be entered into the register maintained under section of 301 of the Companies Act 1956. Consequently requirement of clause (v,b) of paragraph 4 of the Order is not applicable.

(vi) In our opinion the company has not accepted any deposit s from the public, within the meaning of Section 58A and 58AA of the Companies Act,1956.

(vii) The company has an internal audit system which in our opinion is commensurate with the size and nature of business.

(viii) To the best of our knowledge and according to explanations given to us the Central Government has not prescribed maintenance of cost records under Section 209 (1) (d) of the Companies Act, 1956 for any of the products manufactured by the Company.

(ix) (a) According to information a nd explanations given to us, The company is regular in depositing with Appropriate Authorities undisputed statutory dues including Provident fund, Sales tax, Excise-duty, cess and other material statutory dues applicable to it. We are informed that employees state insurance act, 1948 is not applicable to the company.

(b) According to the information and explanations given to us , there were no undisputed amounts payable in respect of dues as referred to (ix)(a) above, which were outstanding as on 31 st March, 2012 for a period of more than six months from the date they became payable.

(c) According to the information and explanations given to us, entire sales tax outstanding amount has been paid by company.

(x) The company has accumulated losses as at the end of the Financial year 31st March, 2012 although non exceeding its networth and the company has also incurred cash losses at the current financial year, 31 st March 2012 as well as in the immedia tely preceding financial year also.

(xi) In our opinion and according to the information and explanations given to us, the company has settled and paid all secured loans fully.

(xii) In our opinion the company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

(xiii) In our opinion and according to information and explanation given to us, the company is not a chitfund, nidhi / mutual benefit fund/society therefore the provisions of clause 4(xiii) of the Companies (Auditors Report) Order, 2003 are not applicable to the company.

(xiv) According to the information and explanations given to us, the company has been dealing or trading in shares, securities, debentures and other investments.

(xv) In our opinion and according to the information and explanations given to us, the company has not given guarantee for loans taken by others from banks or financial institutions. Accordingly provisions of clause 4 (xv) of the Companies (Auditors Report) Order,2003 are not applicable to the company.

(xvi) In our opinion and information and explanations given to us, the company had not raised any term loan during the year under review.

(xvii) In our opinion and according to the information and explanations given to us, and according to Cas h flow statement, on an overall examinations of the Balance Sheet of the Company we report that no funds raised on short term basis have been utilized for long term investment and vice-versa.

(xviii) According to information and explanations given to us, the Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956.

(xix) In our opinion and according to information and explanations given to us, the Company has not issued any secured debentures during the period covered by the report. Accordingly, the provisions of clause 4 (xix) of the Companies (Auditors Report) Order, 2003 are not applicable to the company.

(xx) During the period covered by our a udit report, the Company has not raised any money by public issues.

(xxi) To the best of our knowledge and belief and according to the information and explanations given to us, no fraud on or by the company has been noticed or reported during the course of our audit.

For L. N. PATEL & Co.

Chartered Accountants

Sd/-

Place : Ahmedabad [L.N. PATEL]

Dated : 31/08/2012 PROPRIETOR

---

Mar 31, 2010

1. We have audited the attached Balance Sheet of ACIL Cotton Industries Limited as at 31st March, 2010 and the related Profit and Loss Account and Cash Flow Statement for the year ended on that date, which we have signed under reference to this report. These financial statements are the responsibility of the Companys Management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We have 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 the 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-seelten (4A) of Section 227 of The Companies Act, 1956 of India and on the basis of such checkings we considered appropriate and according to the information and explanations given to us, we set out in the Annexure, a statement on the matters specified in paragraphs 4 and 5 of the said Order to the extent applicable.

4. Further to our comments in the Annexure referred in paragraph (3) 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 Accounts as required by law, have been kept by the Company so far as appears from our examination of those Books;

c) The Balance Sheet, 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 and Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956, to the extent applicable.

e) On the basis of confirmations received from the Directors of the Company 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 of the Company in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956 and

f) Subject to the matters reported above, In our opinion, and to the best of our information and according to the explanations given to us, the said accounts read together with the Notes thereon 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 Balance Sheet, of the state of the affairs of the Company as at 31st March, 2010,

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

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

ANNEXURE TO THE AUDITORS REPORT (Referred to in Paragraph (3) of our Report of even date)

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

(b) All Fixed Assets have been disposed off during the year.

(ii) (a) As explained to us, the stocks of finished and semi-finished goods and raw materials of the Company have been physically verified by the Management at reasonable intervals during the year. In respect of Stock lying with third parties, these have substantially been confirmed by them.

(b) In our opinion and according to the information and explanations given to us the procedure of physical verification of stocks followed by the Management are reasonable and adequate in relation to Size of the company and nature of its business.

(c) In our opinion and according to the information and explanations given to us, the company is maintaining proper records of inventory. The discrepancies noticed between the physical stocks as verified by the Management and the Book records were not material having regard to the size of the operations of the company.

(iii) (a) In our opinion the company has not granted or taken any loans, secured or unsecured to/from companies, firms or other parties covered in the Register maintained under Section 301 of the Companies Act, 1956.Consequently requirement of clauses (iii b), (iii c), {iii d) of paragraph 4 of the order are not applicable.

(iv) In our opinion and according to information and explanations given to us, during the course of our audit there are adequate internal control procedures commensurate with the size of the Company and the nature of its business for the purchases of inventory, and fixed assets and for the sale of goods. During the course of our audit, we have not observed any continuing failure to correct major weakness in internal controls.

(v) According to the information and explanations given to us, that no transactions need to" be entered into the register maintained under section of 30l of the Companies Act 1956. Consequently requirement of clause (v,b) of paragraph 4 of the Order is not applicable.

(vi) In our opinion the company has not accepted any deposits from the public, within the meaning of Section 58A and 58AA of the Companies Act, 1956.

(vii) The company has an internal audit system which in our opinion is commensurate with the size and nature of business.

(viii) To the best of our knowledge and according to explanations given to us the Central Government has not prescribed maintenance of cost records under Section 209 (1) (d) of the Companies Act, 1956 for any of the products manufactured by the Company.

(ix) (a) According to information and explanations given to us, The company is regular in depositing with Appropriate Authorities undisputed statutory dues including Provident fund, Sales tax, Excise-duty, cess and other material statutory dues applicable to it. We are informed that employees state insurance act, 1948 is not applicable to the company.

(b) According to the information and explanations given to us, there were ho undisputed amounts payable in respect of dues as referred to (ix)(a) above, which were outstanding as on 31st March, 2010 for a period of more than six months from the date they became payable.

(c) According to the information and explanations given to us, entire sales tax outstanding amount has been paid by company.

(x) The company has accumulated losses as at the end of the Financial year 31st March, 2010 although non exceeding its networth and the company has also incurred cash losses at the current financial year, 31st March 2010 as well as in the immediately preceding financial year also.

(xi) In our opinion and according to the information and explanations given to us , the company has settled and paid all secured loans fully.

(xii) In our opinion the company has not granted any loans and advances oh the basis of security by way of pledge of shares, debentures and other securities.

(xiii> In our opinion and according to information and explanation given to us, the company is not a chitfund, nidhi / mutual benefit fund/society therefore the provisions of clause 4(xiii) of the Companies (Auditors Report) Order, 2003 are not applicable to the company.

(xiv) According to the information and explanations given to us, the company has been dealing or trading in shares, securities, debentures and other investments.

(xv) In our opinion and according to the information and explanations given to us, the company has not given guarantee for loans taken by others from banks or financial institutions. Accordingly provisions of clause 4 (xv) of the Companies (Auditors Report) Order,2003 are not applicable to the company.

(xvi) In our opinion and information and explanations given to us, the company had not raised any term loan during the year under review.

(xvii) In our opinion and according to the information and explanations given to us, and according to Cash flow statement, on an overall examinations of the Balance Sheet of the Company we report that no funds raised on short term basis have been utilized for long term investment and vice-versa.

(xviii) According to information and explanations given to us, the Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956.

(xix) In our opinion and according to information and explanations given to us, the Company has not issued any secured debentures during the period covered by the report. Accordingly, the provisions of clause 4 (xix) of the Companies (Auditors Report) Order, 2003 are not applicable to the company.

(xx) During the period covered by our audit report, the Company has not raised any money by public issues.

(xxi) To the best of our knowledge and belief and according to the information and explanations given to us, no fraud on or by the company has been noticed or reported during the course of our audit.

For L. N. PATEL & Co. Chartered Accountants

Sd/- Place : Ahmedabad [L.N. PATEL]

Dated: 01st Sept.,2010 PROPRIETOR