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Auditor Report of Dhanleela Investments & Trading Company Ltd.

Mar 31, 2015

We have audited the accompanying financial statements of Dhanleela Investments and Trading Company Limited ("the Company"), which comprise the Balance Sheet as at 31/03/2015, the Statement of Profit and Loss, for the year then ended, and a summary of the 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 and financial performance of the Company in accordance with the 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. This 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 design, implementation and maintenance of adequate internal financial controls, 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 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 the disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal 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. An audit also includes evaluating the appropriateness of the 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 aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31/03/2015, and its Profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

As required by the companies (Auditor's Report) Order 2015 ("the order") issued by the central government of India in terms of sub-section (11) of Section 143 of the Act, we give in the annexure a statement on the matters specified in paragraph 3and 4 of the order, to the extent applicable.

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 purposes 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, the Statement of Profit and Loss, and 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 the written representations received from the directors as on 31/03/2015 taken on record by the Board of Directors, none of the directors is disqualified as 31/03/2015 from being appointed as a director in terms of Section 164 (2) of the Act.

(f) With respect to the 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:

i. The Company did not have any pending litigations on its financial position in its financial statements.

ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.

Annexure to the Independent Auditors' Report

(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirements' section of our report of even date)

(1) The company does not have any fixed assets. Consequently, the provisions of clauses 1

(a) & (b) are not applicable to the company.

(2) (a) Physical verification of inventory has been conducted at reasonable intervals by the management.

(b) Procedures for physical verification of inventory followed by the management is reasonable and adequate in relation to the size of the company and the nature of its business. There is no inadequacies in such procedures that should be reported.

(c) Company is maintaining proper records of inventory. No material discrepancies were noticed on physical verification.

(3) Based on the audit procedures performed and the information and explanations given to us, the Company has neither granted nor taken any loans, secured or unsecured to/ from the companies, firms or other parties covered in the register maintained under Section 189 of the Companies Act, 2013;

(a) The loans granted are re-payable on demand. As informed, the company has not demanded repayment of any such loan during the year, thus there has been no default on the part of the parties to whom the money has been lent. The payment of interest has been regular.

(b) There is no overdue amount of any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act

(4) Based on the audit procedures performed and the information and explanations given to us, there are adequate internal control system commensurate with the size of the company and the nature of its business for the purchase of inventory and fixed assets and for the sale of goods and services. During the course of audit We have not observed continuing failure to correct major weaknesses in internal control system.

(5) The Company has not accepted any deposits from the public.

(6) The Company is not required to maintain cost records pursuant to the Rules made by the Central Government for the maintenance of cost records under sub-section (l) of section 148 of the Companies Act.

(7) (a) The company is regular in depositing with appropriate authorities undisputed statutory dues including Income tax, Service tax, and other material statutory dues applicable to it.

(b) According to records of the Company examined by us there are no dues of Sales Tax, Value Added Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty and Cess which have not been deposited on account of any dispute. The particulars of dues of Income Tax as at 31st March, 2015, which have not been deposited on account of any dispute, are as follows.

Nature of the Nature of Amount Period to Forum where Statute Dues (Rs) which dispute is pending Amount relates

The Income Income Tax 1,70,405 A. Y. The Commissioner

Tax Act, 1961 Dues 1997-1998 of Income Tax (Appeals)

(c) The Company does not required to transfer fund to the Investor Education and Protection Fund.

(8) The company does not have any accumulated losses at the end of the financial year and has not incurred cash losses during current financial year and in the immediately preceding financial year.

(9) The company has not availed any loan from financial institution or bank.

(10) As Company has not availed any loan from financial institution or bank , hence this clause is not applicable.

(11) The Company has not availed any term loans..

(12) Based on the audit procedures performed and the information and explanations given to us, we report that no fraud on or by the Company has been noticed or reported during the year, nor have we been informed of such case by the management.

For Manisha & Co.

Chartered Accountants

Sd/-

Manisha Patel

Proprietor

Mem. No. 148127

Place : Mumbai

Dated : 29.05.2015


Mar 31, 2014

We have audited the accompanying financial statements of Dhanleela Investments & Trading Company Limited, which comprise the Balance Sheet as at 31st March, 2014, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

The Company''s Management is responsible for 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 the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ("the Act") read with the General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013 and in accordance with the accounting principles generally accepted in India. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditors'' Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with the 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 the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers the internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the Company''s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

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

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

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

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

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order, 2003("the Order") issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

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

(a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes 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 and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.

(d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and the Cash Flow Statement comply with the Accounting Standards referred to in sub-section (3C) of section 211 of the Act read with the General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013.

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

Annexure to Independent Auditor''s Report (Referred to in paragraph 1 under "Report on Other Legal and Regulatory Requirements" section of our report of even date)

On the basis of such checks as we considered appropriate and according to the information and explanation given to us during the course of our audit, we report that:

1. The Company does not have any Fixed Assets, Hence maintaining of records or physical verification is not applicable to the extent. Consequently, the provisions of clauses 1 (b) and 1(c) of the order are not applicable to the Company.

2. (a) As explained to us, shares are held as stock in trade which are treated as inventories which have been physically verified during the year by the management at reasonable intervals.

(b) In our opinion and according to the information and explanations given to us, 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 and on the basis of our examination of the records, the Company is generally maintaining proper records of its inventories. No material discrepancy was noticed on physical verification of stocks by the management as compared to book records.

3. (a) According to the information and explanations given to us and on the basis of our examination of the books of account, 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. Consequently, the provisions of clauses 3 (b), 3(c) and 3 (d) of the order are not applicable to the Company.

(e) According to the information and explanations given to us and on the basis of our examination of the books of account, the Company has not taken loans from companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956. Thus sub clauses (f) & (g) are not applicable to the company.

4. In our opinion and according to the information and explanations given to us, there is generally an adequate internal control procedure commensurate with the size of the company and the nature of its business, for the purchase of inventories and fixed assets and payment for expenses & for sale of goods. During the course of our audit, no major instance of continuing failure to correct any weakness in the internal controls has been noticed.

5. (a) Based on the audit procedures applied by us and according to the information and explanations provided by the management, there were no contracts or arrangements referred to in section 301 of the Act, 1956. Hence Clause 5(b) of the said order is not applicable.

6. The Company has not accepted any deposits from the public and consequently, the directives issued by the Reserve Bank of India and the provisions of Sections 58A, 58AA or any other relevant provisions of the Act and the rules framed there under of the Companies Act, 1956 are not applicable.

7. The Company did not have an Internal audit system during the year under report.

8. As per information & explanation given by the management, the company is not required to maintain cost records as prescribed by the Central Government under clause (d) of sub-section (1) of section 209 of the Act, 1956.

9. (a) (i) According to the information and explanations given to us, and the records of the Company examined by us, in our opinion the Company is regular in depositing the undisputed income tax and other material statutory dues applicable to it with appropriate authorities.

(ii)According to information and explanations given to us, the Company was not liable for contribution towards Provident Fund, Investor Education and Protection Fund, Employees'' State Insurance, Sales Tax, Value Added Tax, Wealth Tax, Service Tax, Custom Duty and Excise Duty during the year.

(iii)According to the information and explanation given to us and the books and records examined by us, there are no undisputed amounts payable in respect of Wealth Tax, Sales Tax, Custom Duty and Excise Duty, outstanding as at 31st March, 2014 for period exceeding six months from the date they became payable.

b) According to records of the Company examined by us there are no dues of Sales Tax, Value Added Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty and Cess which have not been deposited on account of any dispute. The particulars of dues of Income Tax as at 31st March, 2014, which have not been deposited on account of any dispute, are as follows:

Nature of the Nature of Amount Period to Forum where Statute Dues (Rs.) which dispute is Amount relates pending

The Income Income Tax 1,70,405 A. Y. The Tax Act, 1961 Dues 1997-1998 Commissioner of Income Tax (Appeals)

10. The company does not have accumulated losses at the end of the financial year; further company has not incurred cash losses in this financial year.

11. The Company has neither taken any loans from a financial institution or a bank nor issued any debentures.

12. The Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13. In our opinion and according to information and explanations given to us, the nature of activities of the Company does not attract any special statute applicable to chit fund and nidhi /mutual benefit fund / societies.

14. According to information and explanations given to us, the Company is trading in Shares. Proper records & timely entries have been maintained in this regard & further investments specified are held in their own name.

15. 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.

16. The Company has not obtained any term loans.

17. Based on the information and explanations given to us and on an overall examination of the Balance Sheet of the Company as at 31st March, 2014, we report that no funds raised on short-term basis have been used for long-term investment by the Company.

18. The Company has not made any preferential allotment of shares to companies or firms or parties covered in the register maintained under section 301 of the Companies Act, 1956

19. The company did not have outstanding debentures during the year.

20. The during the year the Company has not issued shares on preferential basis.

21. Based on the audit procedures performed and the information and explanations given to us, we report that no fraud on or by the Company has been noticed or reported during the year, nor have we been informed of such case by the management.

For Paras A. Shah & Co. Chartered Accountants Firm Reg. No. 135549

Sd/- Paras A. Shah Proprietor

Mem. No. 152371

Place: Mumbai

Dated: 29.05.2014


Mar 31, 2013

Report on the Financial Statements

We have audited the accompanying financial statements of Dhanleela Investments & Trading Company Limited, which comprise the Balance Sheet as at 31st March, 2013, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information. Management''s Responsibility for the Financial Statements

The Company''s Management is responsible for 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 the Accounting Standards referred to in sub- section (3C) of section 211 of the Companies Act, 1956 ("the Act"). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditors'' Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with the 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 the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers the internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Management, as well as evaluating the overall presentation of the financial statements.

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

Opinion

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

(a) In the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2013;

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

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

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order, 2003("the Order") issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

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

(a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes 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 and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.

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

(e) On the basis of the written representations received from the directors as on 31st March, 2013 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2013 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Act.

Annexure to Independent Auditor''s Report

(Referred to in paragraph 1 under "Report on Other Legal and Regulatory Requirements" section of our report of even date)

On the basis of such checks as we considered appropriate and according to the information and explanation given to us during the course of our audit, we report that:

1. Company does not have any Fixed Assets, Hence maintaining of records or physical verification is not applicable to the extent.

2. (a) As explained to us, shares are held as stock in trade which are treated as inventories which have been physically verified during the year by the management at reasonable intervals.

(b) In our opinion and according to the information and explanations given to us, 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 and on the basis of our examination of the records, the Company is generally maintaining proper records of its inventories. No material discrepancy was noticed on physical verification of stocks by the management as compared to book records.

3. (a) According to the information and explanations given to us and on the basis of our examination of the books of account, 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. Consequently, the provisions of clauses iii (b), iii(c) and iii (d) of the order are not applicable to the Company.

(e) According to the information and explanations given to us and on the basis of our examination of the books of account, the Company has not taken loans from companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956. Thus sub clauses (f) & (g) are not applicable to the company.

4. In our opinion and according to the information and explanations given to us, there is generally an adequate internal control procedure commensurate with the size of the company and the nature of its business, for the purchase of inventories & fixed assets and payment for expenses & for sale of goods. During the course of our audit, no major instance of continuing failure to correct any weaknesses in the internal controls has been noticed.

5. (a) Based on the audit procedures applied by us and according to the information and explanations provided by the management, there were no contracts or arrangements referred to in section 301 of the Act, 1956. Hence Clause 5(b) of the said order is not applicable.

6. The Company has not accepted any deposits from the public and consequently, the directives issued by the Reserve Bank of India and the provisions of Sections 58A, 58AA or any other relevant provisions of the Act and the rules framed there under of the Companies Act, 1956 are not applicable.

7. The Company did not have an Internal audit system during the year under report.

8. As per information & explanation given by the management, the company is not required to maintain cost records as prescribed by the Central Government under clause (d) of sub-section (1) of section 209 of the Act, 1956.

9. (a) (i) According to the information and explanations given to us, and the records of the Company examined by us, in our opinion the Company is regular in depositing the undisputed income tax and other material statutory dues applicable to it with appropriate authorities. Further, since the Central Government has till date not prescribed the amount of cess payable under Section 441A of the Companies Act, 1956, we are not in a position to comment upon the regularity or otherwise of the Company in depositing the same.

(ii)According to information and explanations given to us, the Company was not liable for contribution towards Provident Fund, Investor Education and Protection Fund, Employees'' State Insurance, Sales Tax, Value Added Tax, Wealth Tax, Service Tax, Custom Duty and Excise Duty during the year.

(iii)According to the information and explanation given to us and the books and records examined by us, there are no undisputed amounts payable in respect of Wealth Tax, Sales Tax, Custom Duty and Excise Duty, outstanding as at 31st March, 2013 for period exceeding six months from the date they became payable.

b) According to records of the Company examined by us there are no dues of Sales Tax, Value Added Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty and Cess which have not been deposited on account of any dispute. The particulars of dues of Income Tax as at 31st March, 2013, which have not been deposited on account of any dispute, are as follows:

Nature of the Nature of Amount Statute Dues (Rs.)

The Income Tax Income Tax 23,58,629 Act, 1961 Dues

The Income Income Tax 1,70,405 Tax Act, 1961 Dues

Nature of the Statute Period to which Forum where Amount relates dispute is pending

The Income Tax Act, 1961 A. Y. The Commissioner 1996-1997 of Income Tax (Appeals)

The Income Tax Act, 1961 A. Y. The Commissioner 1997-1998 of Income Tax (Appeals)

10. The company does not have accumulated losses at the end of the financial year, further company has not incurred cash losses in this financial year.

11. The Company has neither taken any loans from a financial institution or a bank nor issued any debentures.

12.The Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13. In our opinion and according to information and explanations given to us, the nature of activities of the Company does not attract any special statute applicable to chit fund and nidhi /mutual benefit fund / societies.

14. According to information and explanations given to us, the Company is trading in Shares. Proper records & timely entries have been maintained in this regard & further investments specified are held in their own name.

15. 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.

16. The Company has not obtained any term loans.

17. Based on the information and explanations given to us and on an overall examination of the Balance Sheet of the Company as at 31st March, 2013, we report that no funds raised on short-term basis have been used for long-term investment by the Company.

18. The Company has not made any preferential allotment of shares to companies or firms or parties covered in the register maintained under section 301 of the Companies Act, 1956

19. The company did not have outstanding debentures during the year.

20. The During the year the Company has issued 16,93,000 Equity shares on preferential basis at the rate of Rs.90/- per shares ( Including premium of Rs.80/- per share ) .

21. Based on the audit procedures performed and the information and explanations given to us, we report that no fraud on or by the Company has been noticed or reported during the year, nor have we been informed of such case by the management.

For MNRD & ASSOCIATES

Chartered Accountants

Firm Reg.No : 126991W

Narayan Toshniwal

Place: Mumbai. Partner

Date: 27.05.2013 Membership No.048334


Mar 31, 2012

1. We have audited the attached Balance Sheet of RATNI INVESTMENTS COMPANY LIMITED, as at 31st March, 2012 the Statement of Profit and Loss 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 as to whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditor's Report) Order, 2003 issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956 of India 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 explanations given to us, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

4. Further to our comments in the Annexure referred to above, we report that:

(i) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of our audit.

(ii) 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.

(iii) The Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt with by this report are in agreement with the books of account.

(iv) In our opinion, the Balance Sheet, Statement of Profit and Loss 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.

(v) 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 31st March, 2012 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

5. Attention is also invited to :

i) Note "20" regarding income tax demands aggregating to Rs. 25,29,034/- for which no provision has been made in the accounts.

ii) Note "22" regarding non provision of possible diminution in value of Company's investments aggregating to Rs. 32,72,913/- in unquoted equity shares. We are unable to form an opinion on the value of these investments in view of uncertainties involved.

iii) Note "23" regarding non-availability of certain physical share certificate for our verification.

6. Subject to the matters referred to in Paragraph 5 above, in our opinion and to the best of our information and according to the explanations given to us the said financial Statements read with 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:

(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 Statement of Profit and Loss, of the Loss for the year ended on that date and

(c) In the case of Cash Flow Statement, of the Cash Flows for the year ended 31st March, 2012.

ANNEXURE TO THE AUDITORS' REPORT

RE : RATNI INVESTMENTS COMPANY LIMITED

PREFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE)

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

b) Physical verification has been conducted by the management of fixed assets at reasonable intervals during the year and no discrepancies were noticed on such verification.

c) During the year, the Company has discarded all the Fixed Assets. According to the information and explanations given to us, we are of the opinion that discarding of all the Fixed Assets has not affected the going concern status of the Company.

2. (a) According to the information furnished, physical verification of inventory which consists of shares of unquoted Company has been conducted by the management at reasonable intervals during the year.

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

(c) The Company is maintaining proper records of shares. No discrepancy was noticed on physical verification of shares.

3. (a) The Company had granted loan to one party disclosed U/s. 301(3) of the Companies Act, 1956. However, such loan transactions have not been entered in the register under Section 301 of the Companies Act, 1956, as provisions of neither Section 297 nor 299 are applicable to such transactions and therefore the number and the amount of such transactions are not reported.

(b) The Company had taken an unsecured interest free loan from one Company covered in the register maintained under Section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs. 74,72,590/- and the year end balance of loan taken from such Company was Rs. NIL.

(c) In our opinion, the terms and conditions on which loan had been taken from the Company listed in the register maintained U/s. 301 of the Companies Act, 1956 were not prima facie prejudicial to the interest of the Company. The loan taken was interest free in the nature.

(d) There was no stipulation as to repayment of the principal amount in respect of this interest free loan taken by the Company.

4. In our opinion, and according to the information and explanations given to us, there are adequate internal control systems commensurate with the size of the Company and the nature of its business for the purchase of shares and fixed assets and for the sale of shares and services. During the course of our audit, no major weakness has been noticed in the internal controls.

5. (a) Based on the audit procedures applied by us and according to the information and explanations given to us, the particulars of contracts or arrangement referred to in Section 301 of the Act have been entered in the register required to be maintained under that Section.

b) The transactions made in pursuance of a contract or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 are temporary and interest free in the nature.

6. The Company has not accepted any deposits from the public and consequently, the directives issued by the Reserve Bank of India and the provisions of Sections 58A, 58AA or any other relevant provisions of the Act and the rules framed thereunder of the Companies Act, 1956 are not applicable.

7. The Company did not have an Internal Audit System during the year under Report.

8. Since the Company is an investment Company requirement of maintenance of cost records as prescribed by Central Government under Section 209(l)(d) of the Companies Act, 1956 is not applicable.

9. a) (i) According to the information and explanations given to us, and the records of the Company examined by us, in our opinion the Company is regular in depositing the undisputed income tax other material statutory dues applicable to it with appropriate authorities Further, since the Central Government has till date not prescribed the amount of cess payable under Section 441A of the Companies Act, 1956, we are not in a position to comment upon the regularity or otherwise of the Company in depositing the same.

(ii) According to information and explanations given to us, the Company was not liable for contribution towards Provident Fund, Investor Education and Protection Fund, Employees' State Insurance, Sales Tax, Value Added Tax, Wealth Tax, Service Tax, Custom Duty and Excise Duty during the year.

(iii) According to the information and explanation given to us and the books and records examined by us, there are no undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales Tax, Custom Duty and Excise Duty, outstanding as at 31st March, 2012 for period exceeding six months from the date they became payable.

b) According to records of the Company examined by us there are no dues of Sales Tax, Value Added Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty and Cess which have not been deposited on account of any dispute. The particulars of dues of Income Tax as at 31st March, 2012, which have not been deposited on account of any dispute are as follows

Nature of the Nature of Amount Period to Forum where Statute Dues (Rs.) which amount dispute is relates pending

The Income Tax Income Tax 23,58,629 A. Y. The Commissioner Act, 1961 Dues 1996-1997 of Income Tax (Appeals) Order is awaited

The Income Tax Income Tax 1,70,405 A. Y. The Commissioner Act, 1961 Dues 1997-1998 of Income Tax (Appeals) Order is awaited

10.Accumulated losses of the Company of Rs. 2,14,43,845/- at the end of the financial year exceeded 50% net worth as on that date. The Company has incurred cash losses of Rs. 9,70,415/- during the financial year, however it had not incurred any cash losses in immediately preceding financial year.

11. The Company has neither taken any loans from a financial institution or a bank nor issued any debentures.

12.The Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13.In our opinion and according to information and explanations given to us, the nature of activities of the Company does not attract any special statute applicable to chit fund and nidhi /mutual benefit fund / societies.

14. In respect of Investments held by the Company, in our opinion and according to the information and explanation given to us, proper records have been maintained of the transactions and contracts and timely entries have been made therein. All the shares have been held by the Company in its own name.

15. 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.

16.The Company has not obtained any term loans.

17.Based on our examination of the financial statements and other relevant records of the Company and the information and explanations given to us, on an overall basis, funds raised on short term basis have not, prima facie been used during the year for long term investment.

18.The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act during the year.

19.The Company has not issued any debentures.

20.The Company has not raised any money by public issues during the year.

21. According to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the year.

For JAGTIANI & NAIK

Chartered Accountants

(ICAI Reg. No. 103854W)

Sd/-

J. G. NAIK

PARTNER

Membership No. 30614

PLACE : MUMBAI

DATED : 1st JUNE, 2012


Mar 31, 2009

1. We have audited the attached Balance Sheet of RATNI INVESTMENTS COMPANY LIMITED, as at 31st March, 2009 and also the Profit and Loss Account for the year ended on that date annexed thereto. (Collectively referred to as "Financial Statements"). 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 as to whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditor's Report) Order, 2003 as amended by the Companies (Auditor's Report) (Amendment) Order, 2004 (together the 'Order') issued by the Central Government of India in terms of sub-section (4A) of section 227 of "The Companies Act, 1956' of India (the 'Act') 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 explanations given to us, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

4. Further to our comments in the Annexure referred to above, we report that:

(i) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of our audit.

(ii) 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.

(iii) The Balance Sheet and Profit and Loss Account dealt with by this report are in agreement with the books of account.

(iv) In our opinion, the Balance Sheet and Profit and Loss Account dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956.

(v) 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 31st March, 2009 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

5. Attention is invited to Note No. 5 of Schedule "J" regarding non provision of possible diminution in value of Company's investments of aggregating to Rs.71,85,171/- in unquoted equity shares. We are unable to form an opinion on the value of these investments in view of uncertainties involved.

6. Subject to the matters referred to in Paragraph 5 above, in our opinion and to the best of our information and according to the explanations given to us the said accounts give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

(a) In the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2009;

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

(c) In the case of Cash Flow Statement, of the Cash Flows for the year ended 31st March, 2009.

ANNEXURE TO THE AUDITORS' REPORT

RE : RATNI INVESTMENTS COMPANY LIMITED

(REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE)

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

b) Physical verification has been conducted by the management of fixed assets at reasonable intervals during the year and no discrepancies were noticed on such verification.

c) During the year there has not been disposal of any fixed assets.

2. (a) According to the information furnished, physical verification of inventory which consists of shares of unquoted Company has been conducted by the management at reasonable intervals during the year.

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

(c) The Company is maintaining proper records of shares. No discrepancy was noticed on physical verification of shares.

3. (a) The Company has granted loan to one party disclosed U/s. 301(3) of the Companies Act, 1956. However, such loan transactions are not entered in the register under Section 301 of the Companies Act, 1956,as provisions of neither Section 297 nor 299 are applicable to such transactions and therefore the number and the amount of such transactions are not reported.

(b) The Company has taken unsecured interest free loan from one Company covered in the register maintained under Section 301 of the Companies Act, 1956. The maximum amount involved during the year as well as the yearend balance of loan taken from such Company was Rs. 73,83,697/-.

(c) In our opinion, the terms and conditions on which loan have been taken from the Company listed in the register maintained U/s. 301 of the Companies Act, 1956 are not prima facie prejudicial to the interest of the Company. The loan taken is interest free in the nature.

(d) There is no stipulation as to repayment of the principal amount in respect of this interest free loan taken by the Company.

4. In our opinion, and according to the information and explanations given to us, there are adequate internal control systems commensurate with the size of the Company and the nature of its business for the purchase of shares and fixed assets and for the sale of shares and services. During the course of our audit, no major weakness has been noticed in the internal controls.

5. (a) Based on the audit procedures applied by us and according to the information and explanations given to us, the particulars of contracts or arrangement referred to in Section 301 of the Act have been entered in the register required to be maintained under that Section.

(b) The transactions made in pursuance of such contracts or arrangements in respect of any party in our opinion and according to the information and explanations given to us, are made at prices which are prima facie reasonable considering the circumstances at the relevant time.

6. The Company has not accepted any deposits from the public and consequently, the directives issued by the Reserve Bank of India and the provisions of Sections 58A, 58AA or any other relevant provisions of the Act and the rules framed there under of the Companies Act, 1956 are not applicable.

7. The Company did not have an Internal Audit System during the year under Report.

8. Since the Company is an investment Company requirement of maintenance of cost records as prescribed by Central Government under Section 209(1)(d) of the Companies Act, 1956 is not applicable.

9. a) (i) According to the information and explanations given to us, and the records of the Company examined by us, in our opinion the Company is regular in depositing the undisputed income tax and other material statutory dues applicable to it with appropriate authorities.

Further, since the Central Government has till date not prescribed the amount of cess payable under Section 441A of the Companies Act, 1956, we are not in a position to comment upon the regularity or otherwise of the Company in depositing the same.

(ii) According to information and explanations given to us, the Company was not liable for contribution towards Provident Fund, Investor Education and Protection Fund, Employees' State Insurance, Sales Tax, Value Added Tax, Wealth Tax, Service Tax, Custom Duty and Excise Duty during the year.

(iii) According to records of the Company except Fringe Benefit Tax Liabilities of Rs.4,992/- and Rs.6,072/- respectively for Assessment Years 2007-2008 and 2008-2009 and T.D.S. Liability of Rs.787/-, there are no other undisputed arrears of Statutory dues, which were outstanding as on 31st March, 2009 for a period of more than six months from the date they become payable.

b) According to records of the Company examined by us there are no dues of Sales Tax, Value Added Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty and Cess which have not been deposited on account of any dispute. The particulars of dues of Income Tax as at 31st March, 2009, which have not been deposited on account of any dispute are as follows.

Nature of Nature of Amount Period to Forum where the Statute Dues (Rs.) which dispute is amount pending relates

The Income Income Tax Dues 23,58,629 A.Y. The Tax Act, 1961 1996-1997 Commissi -onerof Income Tax (Appeals)

The Income Income Tax Dues 1,70,405 A.Y. The Tax Act,1961 1997-1998 Commissi -oner of Incomee Tax (Appeals) 10.Accumulated losses of the Company of Rs.2,34,16,288/- at the end of the financial year exceeded 50% net worth as on that date. The Company has incurred cash losses of Rs.33,053/- in current financial year and cash losses of Rs.1,31,036/- in immediately preceding financial year.

11.The Company has neither taken any loans from a financial institution or a bank nor issued any debentures.

12.The Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13.In our opinion and according to information and explanations given to us, the nature of activities of the Company does not attract any special statute applicable to chit fund and nidhi /mutual benefit fund / societies.

14.As informed and explained to us, the Company has not dealt/traded in securities or debentures during the year. In our opinion and according to the information and explanation given to us proper records have been maintained of the transactions and contracts relating to trading / dealing in shares and other investments and timely entries have been made therein. We have been unable to physically verify the investments held by the Company as most of these investments have been seized by the Central Bureau of Investigation along with other records in June, 1992.

15.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.

16.The Company has not obtained any term loans.

17. The Company considers all the funds raised by it amounting to Rs. 73,83,697/- at the end of the financial year to be of long term nature. These funds have been utilized for financing its losses, accumulated balances of which stood at Rs.2,34,16,288/- as well as investments and loans to others.

18.The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act during the year.

19.The Company has not issued any debentures.

20.The Company has not raised any money by public issues during the year.

21.According to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the year.

For JAGTIANI & NAIK

Chartered Accountants

J. G. NAIK

PARTNER

Membership No.30614

PLACE :MUMBAI DATED : 25.08.2009

 
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