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Auditor Report of CJ Gelatine Products Ltd.

Mar 31, 2015

1. We have audited the accompanying financial statements of M/s. C. J. Gelatine Products Limited, which comprise the Balance Sheet as at 31st March, 2015, the Statement of Profit & Loss and Cash Flow Statement for the year ended on that date, and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements:

The Company''s Board Of Directors is responsible for the matters stated in Section 134(5) of the Companies Act,2013 ("the Act") with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules,2014. The responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial control that were operating effectively for ensuring the accuracy and completeness of the accounting records: 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.

Auditor''s Responsibility:

Our responsibility is to express an opinion on these financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under. We conducted our audit in accordance with the Standards on Auditing, issued by the Institute of Chartered Accountants of India , as specified under Section 143(10) of the Act. 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 misstatement.

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 judgments, including the assessment of the risk of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the effectiveness of such controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, 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 on the financial statements.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the 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, of the state of affairs of the Company as at March 31, 2015, its profit, and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies ( Auditor''s report) Order,2015 ( "the Order") issued by the Central Government of India in terms of sub-section(ll) of section 143 of the Act, we give in the Annexure 1 a statement on the matters specified in paragraphs 3 and 4 of the Order.

2. As required by section 143(3) of the Act, we report that:

a. We have sought and 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 it appears from our examination of those books;

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

d. In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts)Rules,2014;

e. On the basis of written representations received from the Directors as on March 31,2015 and taken on record by the Board Of Directors, none of the Directors is disqualified as on March 31,2015 from being appointed as a Director in terms of section 164(2) of the Act;

f. With respect to other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies ( Audit and Auditors) Rules,2014, in our opinion and to the best of our information and according to the explanations given to us:

(a) The Company has disclosed the impact of pending/settled litigations on its financial position in its financial statements - Refer Note 22 to the financial statements.

(b) The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses;

(c) There has been no delay in transferring amounts if any, to the Investor Education and Protection Fund by the Company.

ANNEXURE TO THE INDEPENDENT AUDITORS'' REPORT

(Referred to in our Report of even date)

1a. The Company is in the process of updating its fixed assets register to show full particulars including quantitative details and situation of fixed assets.

b. The Company has not carried out physical verification of its fixed assets during the year, pending Updation of fixed assets register. However, the Management has assured that the physical verification of fixed assets will be carried out once the fixed assets register is updated.

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

2a. The inventories have been physically verified by the Management during the year. In our opinion, the frequency of verification is reasonable.

b. In our opinion, the procedures of verification of inventories followed by the Management are reasonable and adequate in relation to the size of the Company and the nature of its business.

c. In our opinion, the Company has maintained proper records of inventories. The discrepancies noticed on physical verification of inventories as compared to book records were not material and the same have been properly dealt with in the books of account.

3a. According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured to Companies, firms, or other parties listed in the register maintained under Section 189 of the Companies Act, 2013. Accordingly, the provisions of clause 3(iii) (a) and (b) of the Order are not applicable to the Company and hence not commented upon.

b. The Company is regular in repaying the principal amounts as stipulated and has been regular in the payment of interest in respect of unsecured business loan of Rs.25.50 Lakhs taken from Bajaj Finance Limited taken during the current financial year.

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

5. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public in accordance with provisions of sections 73 to 76 of the Act and rules framed there under.

6. We have been informed that the Central Government has not prescribed maintenance of cost records under Section 148(1) of the Act for any products of the Company.

7. a. According to the information and explanations given to us, the Company is generally regular in depositing undisputed statutory dues including Provident Fund, Employees State Insurance, Income Tax, Service Tax, Sales Tax, Wealth Tax etc. with appropriate authorities. However, as explained to us, the Company is yet to pay arrears of Income Tax of Rs.640,465/- ( excluding interest accrued on above) (Previous Year- Rs.640,465/-) for Asst. Year 2010-11 and Export Tax of Rs.341,330/- (Previous Year- Rs.341,330/-)

b. According to the information and explanations given to us, no undisputed amounts payable in respect of Provident Fund, Employees State Insurance, Income Tax, Service Tax, Sales Tax, Wealth Tax and other material statutory dues were outstanding at the year end, for a period of more than six months from the date they became payable.

c. According to the records of the Company, no dues of Income Tax, Service Tax, Wealth Tax, Sales Tax, Value Added Tax etc. are outstanding on account of any dispute. The only disputed Case of demand of Central Excise Duty of Rs.532,800/-for the year 2007-08 which was under appeal with the Customs, Excise & Service Tax Appellate Tribunal, Delhi, has been settled/cleared and paid along with Penalty of Rs.532,800/- and interest of Rs.275,616/- during the financial year 2014-15.

d. According to the information and explanations given to us, the amount required to be transferred to investor education and protection fund in accordance with the relevant provisions of the Companies Act,1956 (1 of 1956) and rules made there under has been transferred to such fund within time.

8. The Company has no accumulated losses at the end of the financial year and it has not incurred cash losses during the current and immediately preceding financial year.

9. In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to its bankers. The Company did not have any outstanding dues to any financial institution or debentures holders during the year.

10. According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from Banks or Financial Institutions.

11. In our opinion and according to the information and explanations given to us, the Company has not raised any term loans during the year.

12. Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per the information and explanations given by the management, we report that no fraud on or by the Company has been noticed or reported during the year.

For: R.Kini & Associates, Chartered Accountants, Firm Regn. No.116134W

Place: Bhopal R.Kini Date: 15th May, 2015 Proprietor- M.No.021611


Mar 31, 2014

1. We have audited the attached Balance Sheet of M/s. C. J. Gelatine Products Limited, as at 31s1 March, 2014, Profit & Loss Account and Cash flow Statement 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 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 statement is free of material misstatement. An audit includes examining on 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 the terms of sub-section (4A) of Section 227 of the Companies Act, 1956, and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanation given to us during the course of audit, we annex hereto Annexure-A on the matters specified in Paragraphs 4 and 5 of the said Order,

Further to our comments in the Annexure referred to in Paragraph 3 above, we report that:

a. We have obtained all 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, Profit & 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 & 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.

e. On the basis of written representations received from the Directors and taken on record by the Board Of Directors, we report that none of the Directors is disqualified as on March 31,2014 fronf 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 read together with the Significant Accounting Policies and notes on accounts ( Note No.21) along with clauses 8(a) and 8(b) of Anncxure to Audit Report, 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;

(a) In the case of the Balance Sheet of the state of affairs of the Company as at 3151 March, 2014;

(b) In the case of the Profit & Loss Account, of the loss of the Company 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-

ANNEXURE REFERRED TO IN OUR REPORT OF EVEN DATE ON THE ACCOUNTS FOR THE YEAR ENDED 31st MARCH. 2014 OF CJ-GEIATINE PRODUCTS LIMITED

la. The Company is in the process of updating its fixed assets register to show full particulars including quantitative details and situation of fixed assets.

b. The Company has not carried out physical verification of its fixed assets during the year, pending updation of fixed assets register. However, the Management has assured that the physical verification of fixed assets will be carried out once the fixed assets register id updated.

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

2a. The inventories have been physically verified by the Management during the year. In our opinion, the frequency of verification is reasonable,

b. in our opinion, the procedures of verification of inventories followed by tile Management are reasonable and adequate in relation to the size of the Company and the nature of its business.

c. In our opinion, the Company has maintained proper records of inventories. The discrepancies noticed on physical verification of inventories as compared to book records were not material and the same have been properly dealt with in the books of account.

3a. The Company has not granted any loans, secured or unsecured to Companies, firms, or other parties listed in the register maintained under Section 301 of the Companies Act, 1956. The Company has however, taken unsecured loans from one party (01) listed in the Register maintained under Section 301 of the Companies Act, 1956. The maximum amount involved during the year and the year ended balance of the aforesaid loans was Rs.1.00 Lakhs (Previous Year - Rs. 18.28 Lakhs)

b. In our opinion, the rate of interest and other terms and conditions on which unsecured short loans have been taken from Companies and other parties listed in the register maintained under Section 301 of the Companies Act, 1956 are prima facie not prejudicial to the interest of the Company,

c. The Company is regular in repaying the principal amounts as stipulated and has been regular in the payment of interest where ever applicable.

d. There are no overdue amounts of loans taken from Companies and other parties listed in the register maintained under Section 301 of the Companies Act, 1956.

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

5. a. In our opinion and according to the information and explanations given to us, all transactions that need to be entered into the register maintained under Section 301 of the Companies Act, 1956 have been so entered.

b. In our opinion and according to the information and explanations given to us, there are no transactions made in pursuance of contracts or arrangement entered in the register maintained under Section 301 of the Companies Act, 1956 and exceeding the value of Rs.500,000/- (Rupees Five Lakhs only) in respect of any party during the year, have been made at prices which are reasonable having regard to prevailing market price at the relevant time.

6. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public which are contrary to the provisions of Sections SSA and 58AA of the Companies Act,1956 and the Companies ( Acceptance of Deposits) Rules,1975 with regard to the deposits accepted from the public. As informed to us, no order has been passed by the Company Law Board relating to the deposits accepted from the public,

7. We have been informed that during the year under audit, the Central Government has prescribed maintenance of cost records under Section 209(1 )(d) of the Companies Act, 1956 for its products vioe Order Dated 06n November, 2012. The Company has complied with the above requirements for the financial year 2013 -14.

8. a. According to the information and explanations given to us, the Company is generally regular in depositing undisputed statutory dues including Provident Fund, Employees State insurance, Income Tax, Sales Tax etc. with appropriate authorities. However, as explained to us, the Company is yet to pay arrears of Income Tax of Rs.640,465/- ( excluding interest accrued on above) ( Previous Year- Rs.640,465/-) for Asst. Year 2010-11 and Export Tax of Rs.341,330/- (PrevidDs Year- Rs.341,330/-)

b. According to the records of the Company, the dues of Central Excise Duty which has not been deposited with appropriate authorities on account of disputes and the forum where the disputes are pending as under:

Sr. Name of Statute Nature of dues Amount in Forum where the No Rs(Lakhs) Dispute is pending

Customs, Excise & 01 Central excise & Excise Duty 5.33 Service Tax Customs Act Demand Appellate Tribunal, Delhi

9. In our opinion, the accumulated losses of the Company as at the end of the financial year docs not exceed fifty percent of its net worth. The Company has not incurred cash losses during the financial year under audit (though, incurred book losses of Rs.20,25,624/-)

10. According to the information and explanations given to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

11. In our opinion, the Company is not a Chit Fund Company or a Nidhi / Mutual Benefit Fund/Sodety. Therefore, the provisions of Clause-4 (xiri) of the Companies (Auditors Report) Order, 2003 are not applicable to the Company,

12. In our opinion, the Company is not dealing or trading in shares, securities, debentures and other investments. Accordingly, the provisions o' clause 4 (xiv) of the Companies (Auditors Report) Order, 2003 are not applicable to the Company.

13. According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from Banks or Financial Institutions.

14. The Company has not taken any Term Loan during the year.

15. According to the information and explanations given to us and on an overall examination of the Balance Sheet and the Cash Flow Statement of the Company, we are of the opinion that the funds raised on short term basis have not been used for. long term investment. No long term funds have been used to finance short term assets.

16. According to the information and explanations given to us, the Company has not made any preferential allotment of shares during the year to Parties and Companies covered in the register maintained under Section 301 of the Companies Act, 1956.

17. The Company has not issued any debentures during the year and accordingly, the question of creating security in respect thereof does not arise.

18. The Company has not made any public issues during the year and therefore, the question of disclosing the end use of money raised by public issue does not arise,

19. According to the information and explanations given to us, we report that no fraud on or by the Company has been noticed or reported during the course of our audit. For; R. Kini & Associates, Chartered Accountants Firm Regn-No.ll6134W

Place; Bhopal R.Krni Date: 12th May, 2014 Proprietor- M.No-021611


Mar 31, 2012

We have audited the attached Balance Sheet of M/s C.J.Gelatine Products Ltd. as at 31st March 2012, Profit and Loss Account and Cash Flow Statement 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.

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 also 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.

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, we annex hereto a statement on the matters specified in Paragraphs 4 and 5 of the said Order, on the basis of such checks of the books and records of the Company as we considered appropriate and the information and explanations given to us during the course of our audit.

Further to our comments in the Annexure referred to 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 the 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, 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.

(e) On the basis of written representations received from the Directors and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on March 31, 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, they said accounts read with notes on accounts (Note No. 21) along with clause 8(a) and (b) of Annexure to Audit Report give the information required by the Companies Act, 1956, in the manners 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 31st March, 2012,

(b) In the case of the Profit and Loss Account, the profit of the Company for the year ended on that

date,

(c) In the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

ANNEXURE REFERRED TO IN OUR REPORT OF EVEN DATE ON THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH. 2012 OF C. J. GELATINE PRODUCTS LTD.

1. (a) The Company is in the process of updating its fixed assets Register to show full particulars including quantitative details and situation of fixed assets.

(b) The Company has not carried out physical verification of its fixed assets during the year. However, we have been informed that the physical verification of fixed assets will be carried out once the fixed assets register is updated. '

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

2. (a) The inventories have been physically verified by the management during the year. In our opinion, the frequency of verification is reasonable.

(b) In our opinion, the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) In our opinion, the Company has maintained proper records of inventories. The discrepancies noticed on physical verification of inventories as compared to book records were not material and the same have been properly dealt with in the books of account.

3.(a) The Company has not granted any loans, secured or unsecured to companies, firms, or other parties listed in the register maintained under section 301 of the Companies Act, 1956. The Company has taken unsecured loans from three parties listed in the register maintained under section 301 of the Companies Act, 1956. The maximum amount involved during the year and the year ended balance of the aforesaid loans was (f). 18.28 lacs.

(b) In our opinion, the rate of interest and other terms and conditions on which unsecured short loans have been taken from companies and other parties listed in the register maintained under section 301 of the Companies Act,1956 are prima facie not prejudicial to the interest of the Company.

(c) The Company is regular in repaying the principal amounts as stipulated and has been regular in the payment of interest wherever applicable.

(d) There are no overdue amounts of loans taken from companies and other parties listed in the register maintained under section 301 of the Companies Act, 1956.

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

5.(a) In our opinion and according to the information and explanations given to us, all transactions that need to be entered into the register maintained under section 301 of the Companies Act,1956 have been so entered.

(b) In our opinion and according to the information and explanations given to us, there are no transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of Rupees five lakhs in respect of any party during the year have been made at prices which are reasonable having regard to prevailing market price at the relevant time.

6. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from public which are contrary to the provisions of sections 58A and 58AA of the Companies Act, 1956 and the Companies (Acceptance of deposits) Rules, 1975 with regard to the deposits accepted from the public. As informed to us, no order has been passed by the Company Law Board relating to the deposits accepted from the public.

7. We have been informed that Central Government has not prescribed maintenance of cost records under section 209(l)(d) of the Companies Act, 1956 for any products of the Company.

8.(a) According to the information and explanations given to us, the Company is generally regular in depositing undisputed statutory dues including Provident Fund, Employees State Insurance, Income Tax, Sales Tax and other dues with appropriate authorities. However as explained to us, the Company is yet to pay arrears of (Rs)31,00,357/- outstanding on account of Employer's Contribution to ESIC, (Rs) 13,72,659/- towards contribution of Provident Fund and Sales Tax amounting to (Rs)41,97,335/-. An amount of (Rs) 1,356/- is outstanding on account of TDS (contractors) and (Rs) 10,640/- outstanding on account of TDS (Salary). Income Tax of (Rs) 6,40,465/- for A. Y 2010-11 is Outstanding and liable to be paid.

(b) According to the records of the Company, the dues of Income Tax, Central Excise and Sale Tax which have not been deposited with appropriate authorities on account of disputes and the forum where the disputes are pending are as under:

S.No. Name of Statute Nature of the dues Amount Forum where dispute is ((Rs.) in lakhs) pending

1. Central Excise & Custom Act CENVAT Credit of 5.78 Commissioner Appeal, Service Tax Central Excise, Bhopal.

2. Central Excise & Customs Act Excise-duty demands 5.33 Customs, Excise and service Tax Appellate Tribunal, Delhi

9. In our opinion, the accumulated losses of the Company as at the end of the financial year does not exceed fifty percent of its net worth. The Company has not incurred cash losses during the financial year under audit.

10. According to the information and explanations given to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

11. In our opinion, the Company is not a chit fund company or a 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.

12. In our opinion, the Company is not dealing or trading in shares, securities, debentures and other investments. Accordingly the provisions of clause 4(xiv) of the Companies (Auditors Report) Order, 2003 are not applicable to the Company.

13. According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions.

14. The Company has not taken any term loan during the year.

15. According to the information and explanations given to us and on an overall examination of the Balance Sheet and the Cash Flow Statement of the Company, we are of the opinion that the funds raised on short-term basis have not been used for long term investment. No long-term funds have been used to finance short-term assets.

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

17. The Company has not issued any debentures during the year, and accordingly, the question of creating security in respect thereof does not arise.

18. The Company has not made any public issues during the year and accordingly, the question of disclosing the end use of money raised by public issue does not arise.

19. According to the information and explanations given to us, we report that no fraud on or by the Company has been noticed or reported during the course of our audit.

For TRIVEDI & RESHAMWALA ASSOCIATES

CHARTERED ACCOUNTANTS,

(HITESH RESHAMWALA)

PLACE: Bhopal PROPRIETOR

Date: 25.05.2012 Membership No.41723

F. R. No. 111C41W of 15.03.1990


Mar 31, 2011

We have audited the attached Balance Sheet of M/s C.J. Gelatine Products Limited as at 31st March 2011, Profit and Loss Account and Cash Flow Statement 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.

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 also 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.

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, we annex hereto a statement on the matters specified in Paragraphs 4 and 5 of the said Order, on the basis of such checks of the books and records of the Company as we considered appropriate and the information and explanations given to us during the course of our audit.

Further to our comments in the Annexure referred to 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 the 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, 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.

(e) On the basis of written representations received from the Directors and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on March 31,2011 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 read with notes on accounts (Schedule 'Q')alongwith clause 8(a) and (b)of Annexure to Audit Report 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.

(a) In the case of the Balance Sheet of the state of affairs of the Company as at 31st March, 2011,

(b) In the case of the Profit and Loss Account, the profit of the Company for the year ended on that date,

(c) In the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

ANNEXURE REFERRED TO IN OUR REPORT OF EVEN DATE ON THE ACCOUNTS FOR THE YEAR ENDED 31st MARCH, 2011 OF C. J. GELATINE PRODUCTS LTD.

1. (a) The Company is in the process of updating its fixed assets register to show full particulars including quantitative details and situation of fixed assets.

(b) The Company has not carried out physical verification of its fixed assets during the year. However, we have been informed that the physical verification of fixed assets will be carried out once the fixed assets register is updated.

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

2. (a) The inventories have been physically verified by the management during the year. In our opinion, the frequency of verification is reasonable.

(b) In our opinion, the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) In our opinion, the Company has maintained proper records of inventories. The discrepancies noticed on physical verification of inventories as compared to book records were not material and the same have been properly dealt with in the books of account.

3. (a) The Company has not granted any loans, secured or unsecured to companies, firms, or other parties listed in the register maintained under section 301 of the Companies Act, 1956. The Company has taken unsecured loans from two parties listed in the register maintained under section 301 of the Companies Act, 1956. The maximum amount involved during the year and the year ended balance of the aforesaid loans was Rs. 18.28 lakhs.

(b) In our opinion, the rate of interest and other terms and conditions on which unsecured short loans have been taken from companies and other parties listed in the register maintained under section 301 of the Companies Act,1956 are prima facie not prejudicial to the interest of the Company.

(c) The Company is regular in repaying the principal amounts as stipulated and has been regular in the payment of interest wherever applicable.

(d) There are no overdue amounts of loans taken from companies and other parties listed in the register maintained under section 301 of the Companies Act, 1956.

4. In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the si2e of the Company and the nature of its business with regard to purchase of inventory and fixed assets and for the sale of goods. During the course of the audit, we have not observed any continuing failure to correct major weakness in internal controls.

5. (a) In our opinion and according to the information and explanations given to us, all transactions that need to be entered into the register maintained under section 301 of the Companies Act, 1956 have been so entered.

(b) In our opinion and according to the information and explanations given to us, there are no transactions made In pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of Rupees five lakhs in respect of any party during the year have been made at prices which are reasonable having regard to prevailing market price at the relevant time.

6. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from public which are contrary to the provisions of sections 58A and 58AA of the Companies Act, 1956 and the Companies (Acceptance of deposits) Rules, 1975 with regard to the deposits accepted from the public. As informed to us, no order has been passed by the Company Law Board relating to the deposits accepted from the public.

7. We have been informed that Central Government has not prescribed maintenance of cost records under section 209(1 )(d) of the Companies Act, 1956 for any products of the Company.

8. (a) According to the information and explanations given to us, the Company is generally regular in depositing undisputed statutory dues including Provident Fund, Employees State Insurance, Income Tax, Sales Tax and other dues with appropriate authorities. However as explained to us, the Company is yet to pay arrears of Employee's Contribution to ESIC of Rs. 1,11,632/- and also Rs.34,02,006/- outstanding on account of Employer's Contribution to ESIC, Rs.45,12,343/- towards employer's contribution of Provident Fund and Sales Tax amounting to Rs.64,90,882/-. An amount of Rs.32,787/- is outstanding on account of TDS(contractors). Income Tax of Rs. 6,40,465/- for A.Y. 2010-11 is Outstanding and liable to be paid.

(b) According to the records of the Company, the dues of Income Tax, Central Excise and Sale Tax which have not been deposited with appropriate authorities on account of disputes and the forum where the disputes are pending are as under:

Sr. No. Name of Statute Nature of the dues Amount Forum where dispute (Rs. in is pending lakhs)

1 Central Excise & CENVAT Credit of 5.78 Commissioner Custom Act Service Tax Appeal,

Central Excise, Bhopal.

2. Central Excise & Excise-duty Customs,Excise and Customs Act demands 5.33 service Tax Applellate Tribunal, Delhi

9. In our opinion, the accumulated losses of the Company as at the end of the financial year does not exceed fifty percent of its net worth. The Company has not incurred cash losses during the financial year under audit.

10. According to the information and explanations given to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

11. In our opinion, the Company is not a chit fund company or a 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.

12. In our opinion, the Company is not dealing or trading in shares, securities, debentures and other investments. Accordingly the provisions of clause 4(xiv) of the Companies (Auditors Report) Order, 2003 are not applicable to the Company.

13. According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions.

14. The Company has not taken any term loan during the year.

15. According to the information and explanations given to us and on an overall examination of the Balance Sheet and the Cash Flow Statement of the Company, we are if the opinion that the funds raised on short-term basis have not been used for long term investment, i.e., long-term funds have been used to finance short-term assets.

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

17. The Company has not issued any debentures during the year, and accordingly, the question of creating security in respect thereof does not arise.

18. The Company has not made any public issues during the year and accordingly, the question of disclosing the end use of money raised by public issue does not arise.

19. According to the information and explanations given to us, we report that no fraud on or by the Company has been noticed or reported during the course of our audit.

For TRIVEDI & RESHAMWALA ASSOCIATES CHARTERED ACCOUNTANTS

(HITESH RESHAMWALA) PROPRIETOR Membership No.41723 F. R. No. 111041W of 15.03.1990

PLACE : MUMBAI DATED : 27/07/2011


Mar 31, 2010

We have audited the attached Balance Sheet of M/s C. J.Gelatine Products Limited as at 31st March 2010, Profit and Loss Account and Cash Flow Statement for the year ended on that date annexed thereto. 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.

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 also 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.

As required by the Companies (Auditors Report) Order, 2003 issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Companies Act, 1956, we annex hereto a statement on the matters specified in Paragraphs 4 and 5 of the said Order, on the basis of such checks of the books and records of the Company as we considered appropriate and the information and explanations given to us during the course of our audit.

Further to our comments in the Annexure referred to 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 the 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, 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.

(e) On the basis of written representations received from the Directors and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on March 31,2010 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 read with notes on accounts (Schedule Q)alongwith clause 8(a) and (b)of Annexure to Audit Report 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.

(a) In the case of the Balance Sheet of the state of affairs of the Company as at 31st March, 2010,

(b) In the case of the Profit and Loss Account, the profit of the Company for the year ended on that date,

(c) In the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

ANNEXURE REFERRED TO IN OUR REPORT OF EVEN DATE ON THE ACCOUNTS FOR THE YEAR ENDED 31 ST MARCH. 2010 OF C. J. GELATINE PRODUCTS LTD.



1. (a) The Company is in the process of updating its fixed assets register to show full particulars including quantitative details and situation of fixed assets.

(b) The Company has not carried out physical verification of its fixed assets during the year. However, we have been informed that the physical verification of fixed assets will be carried out once the fixed assets register is updated.

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

2. (a) The inventories have been physically verified by the management during the year. In our opinion, the frequency of verification is reasonable.

b) In our opinion, the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

c) In our opinion, the Company has maintained proper records of inventories. The discrepancies noticed on physical verification of inventories as compared to book records were not material and the same have been properly dealt with in the books of account.

3. (a) The Company has not granted any loans, secured or unsecured to companies, firms, or other parties listed in the register maintained under section 301 of the Companies Act, 1956. The Company has taken unsecured loans from two parties listed in the register maintained under section 301 of the Companies Act, 1956. The maximum amount involved during the year and the year ended balance of the aforesaid loans was Rs. 18.28 lakhs.

(b) In our opinion, the rate of interest and other terms and conditions on which unsecured short loans have been taken from companies and other parties listed in the register maintained under section 301 of the Companies Act,1956 are prima facie not prejudicial to the interest of the Company.

(c) The Company is regular in repaying the principal amounts as stipulated and has been regular in the payment of interest wherever applicable.

(d) There are no overdue amounts of loans taken from companies and other parties listed in the register maintained under section 301 of the Companies Act, 1956.

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

5. (a) In our opinion and according to the information and explanations given to us, all transactions that need to be entered into the register maintained under section 301 c the Companies Act, 1956 have been so entered.

(b) In our opinion and according to the information and explanations given to us, there are no transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of Rupees five lakhs in respect of any party during the year have been made at prices which are reasonable having regard to prevailing market price at the relevant time.

6. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from public which are contrary to the provisions of sections 58A and 58AA of the Companies Act, 1956 and the Companies (Acceptance of deposits) Rules, 1975 with regard to the deposits accepted from the public. As informed to us, no order has been passed by the Company Law Board relating to the deposits accepted from the public.

7. We have been informed that Central Government has not prescribed maintenance of cost records under section 209(1 )(d) of the Companies Act, 1956 for any products of the Company.

8. (a) According to the information and explanations given to us, the Company isgenerally regular in depositing undisputed statutory dues including Provident Fund, Employees State Insurance, Income Tax, Sales Tax and other dues with appropriate authorities. However as explained to us, the Company is yet to pay arrears of Employees Contribution to ESIC of Rs. 1,09,035/- and also Rs.29,31,336/- outstanding on account of Employers Contribution to ESIC, Rs.23,34,565/- towards employers contribution of Provident Fund and Sales Tax amounting to Rs.23,10,900/-. An amount of Rs.54,290/- is outstanding on account of TDS(contractors). Out of the above, the amount towards ESIC and Provident Fund dues amounting to Rs. 43,03,334/- are outstanding for period exceeding six months from the date they became payable.

(b) According to the records of the Company, the dues of Income Tax, Central Excise and Sale Tax which have not been deposited with appropriate authorities on account of disputes and the forum where the disputes are pending are as under:

Sr. Name of Statute Nature of the dues Amount Forum where dispute No. (Rs.in lakhs) is pending

1. Central Excise & CENVAT Credit of 5.78 Commissioner Appeal, Custom Act Service Tax Central Excise, Bhopal.

2. Central Excise & Excise-duty 5.33 Customs,Excise and service Customs Act demands Tax Applellate Tribunal,Delhi





9. In our opinion, the accumulated losses of the Company as at the end of the financial year does not exceed fifty percent of its net worth. The Company has not incurred cash losses during the financial year under audit.

10. According to the information and explanations given to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

11. In our opinion, the Company is not a chit fund company or a 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.

12. In our opinion, the Company is not dealing or trading in shares, securities, debentures and other investments. Accordingly the provisions of clause 4(xiv) of the Companies (Auditors Report) Order, 2003 are not applicable to the Company.

13. According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions.

14. The Company has not taken any term loan during the year.

15. According to the information and explanations given to us and on an overall examination of the Balance Sheet and the Cash Flow Statement of the Company, we are of the opinion that the funds raised on short-term basis have not been used for long term investment. No long-term funds have been used to finance short-term assets.

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

17. The Company has not issued any debentures during the year, and accordingly, the question of creating security in respect thereof does not arise.

18. The Company has not made any public issues during the year and accordingly, the question of disclosing the end use of money raised by public issue does not arise.

19. According to the information and explanations given to us, we report that no fraud on or by the Company has been noticed or reported during the course of our audit.



For TRIVEDI & RESHAMWALA ASSOCIATES

CHARTERED ACCOUNTANTS,

(HITESH RESHAMWALA)

PLACE : MUMBAI PROPRIETOR

Date : 26.07.2010 Membership No.41723





 
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