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Auditor Report of Effingo Textile & Trading Ltd.

Mar 31, 2015

Report on the Financial Statements

We have audited the accompanying financial statements of Effingo Textile & Trading 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. The Company does not required to be transferred fund to the Investor Education and Protection Fund.

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) In Respect of Fixed Assets

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

(b) Fixed assets have been physically verified by the management at reasonable intervals; No material discrepancies were noticed on such verification.

(2) In Respect of Inventory

(a) As explained to us, at the end of the year there is no physical inventories. The inventories 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) Loans and advances to parties covered under section 189

In our opinion and according to 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) Internal Control in reference to Purchase of Inventory and Fixed Assets and whether there is continue failure of Internal control

In our opinion and according to 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) Rules followed while accepting Deposits

No deposits within the meaning of Sections 73 to 76 or any other relevant provision of the Act and rules farmed thereunder have been accepted by the Company.

(6) Maintenance of cost records

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) According to the information and explanations given to us in respect of statutory dues

(a) The company is regular in depositing with appropriate authorities undisputed statutory dues including Provident fund, Employees' state insurance, Income tax, Service tax, and other material statutory dues applicable to it.

(b) According to the records of the Company, there are no dues of provident fund, employees'state insurance, income-tax, sales-tax, wealth tax, service tax, duty of customs, duty of excise, value added tax or cess and any other statutory dues with the appropriate authorities that have been not been deposited on amount of any dispute.

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

(8) Company which has been registered for a period less than five years and accumulated losses are more than 50% of Net worth, Reporting of cash Losses

The Company does not have any accumulated loss and has not incurred cash loss during the financial year covered by our audit & immediately preceding financial year .

(9) Default in Repayment of Loans taken from Bank or Financial Institutions

The company has not taken any loans from Bank or Financial Institutions

(10) Terms for Loans and Advances from Banks or Financial Institutions prejudicial to the interest of the company

The company has not taken any loans from Bank or Financial Institutions, thus this clauses is not applicable.

(11) Application versus purpose of Term Loan.

Based on our audit procedures and on the information given by the management, we report that the company has not raised any term loans during the year.

(12) Reporting of Fraud During the Year Nature and Amount

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 S B JAJOO & CO.

chartered accountants

FRN: 125915W

Sd/-

Santosh B Jajoo

Proprietor

Membership No: 118622

Place: Mumbai

Date: 30.05.2015


Mar 31, 2014

We have audited the accompanying financial statements of Effingo Textile & Trading Limited (Formerly known as Malti Textile Mills Limited), which comprises of 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 7 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. (a) The Company has no fixed assets and hence Para 4 (i) of Company (Audit Report) Order,2003 is not applicable.

2. (a) As explained to us, at the end of the year there is no physical inventories. The inventories 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 and hence Para 4 (iii) (b), (c) & (d) of Company (Audit Report) Order, 2003 are not applicable.

(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 and hence Para 4 (iii) (f) & (g) of Company (Audit Report) Order,2003 are not applicable.

4. In our opinion and according to the information and explanations given to us, there is 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, the particulars of contracts or arrangements referred to in section 301 of the Act are not required to have been entered in the register required to be maintained under that section and hence Para 4 (v) (b) Company (Audit Report) Order, 2003 are not applicable.

6. The Company has not accepted any deposits from the public covered under section 58A and 58AA of the Companies Act, 1956.

7. As per information & explanations given by the management, the Company did not have any internal audit system commensurate with its size and the nature of its business.

8. As per information & explanation given by the management, maintenance of cost records has not prescribed maintenance of cost record under clause (d) of sub-section (1) of section 209 of the Act, 1956. In respect of products dealt with by the company for the year under review.

9. (a) According to the records of the company, undisputed statutory dues including Income-tax and any other statutory dues have generally been regularly deposited with the appropriate authorities. According to the information and explanations given to us there were no outstanding statutory dues as on March 31, 2014 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us, there is no amounts payable in respect of Income-tax and any other statutory dues which have not been deposited on account of any disputes.

10. The Company does not have any accumulated loss and has not incurred cash loss during the financial year covered by our audit & immediately preceding financial year.

11. Based on our audit procedures and on the information and explanations given by the management, we are of the opinion that, the Company has not defaulted in repayment of dues to a financial institution, bank or debenture holders.

12. 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.

13. The Company is not a chit fund or a nidhi /mutual benefit fund/society. Therefore, the provision of this clause of the Companies (Auditor''s Report) Order, 2003 (as amended) is not applicable to the Company.

14. According to information and explanations given to us, the Company is trading in Shares, Mutual funds & other Investments. 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 guarantees for loan taken by others from a bank or financial institution.

16. Based on our audit procedures and on the information given by the management, we report that the company has not raised any term loans during the year.

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

18. Based on the audit procedures performed and the information and explanations given to us by the management, we report that 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 has no outstanding debentures during the period under audit.

20. 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 S B Jajoo & Co. Chartered Accountants Firm Reg. No.: 125915W Sd/- Santosh B Jajoo Proprietor

Membership No: 118622 Place: Mumbai Date : 30.05.2014


Mar 31, 2012

1. We have audited the attached Balance Sheet of M/s. MALTI TEXTILE MILLS LIMITED as at 31st March, 2012 and also Profit & Loss Account for the year ended on that date annexed thereto and the Cash Flow Statement for the year ended on that date. These financial statements are the responsibility of the Company's management. Our responsibility is to express on opinion on these financial statements based on our audit.

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

3. As required by the Companies (Auditor's Report) Order, 2003 and Companies (Auditor's Report) Amendment Order, 2004 issued by the Central Government of India in terms of sub-Section (4A) of Section 227 of the Companies Act, 1956 we enclose in the Annexure a statement on the matters specified in paragraph 4 and 5 of the said Order.

4. Further to our comments in the Annexure referred to in paragraph 3 above, we report that:

i) We have obtained all the information and explanation, which to the best of our knowledge and belief were necessary for the purpose 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 the Profit & Loss Account dealt with by this report are in agreement with the books of account.

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

v) On the basis of written representation received from the Directors as on 31.03.2012 and taken on record by the Board of Directors, we report that none of the Directors are disqualified as on 31st March, 2012 from being appointed as Director in terms of Section 274 (1)(g) of the Companies Act, 1956.

vi) Subject to above, 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 Balance Sheet, of the state of affairs of the company as at 31st March, 2012.

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

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

ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE

(i) The Company has no fixed assets and hence para 4 (i) of Companies (Audit Report) Order, 2003 is not applicable.

(ii) The Company has no stock and neither has purchased nor sold any raw material, stores, spares and finished goods and hence para 4 (ii) of Companies (Audit Report) Order, 2003 is not applicable.

(iii) (a) The company has not granted any loan during the year to the parties covered in the register maintained under section 301 of the Companies Act, 1956. However there are interest free unsecured loan given in earlier year outstanding as on 31.3.2012 of Rs.52,14,000 in case of one party covered in register maintained U/s 301. The maximum amount due during the year was Rs.52,14,000 and outstanding balance as on 31.3.2012 is of Rs.52,14,000.

(b) No interest has been charged on above unsecured loans. In our Opinion interest and other terms and condition on which above loans have been given, are prejudicial to the interest of the company with regard to non-charging of interest.

(c) The outstanding loans have been reschedule in earlier year. The management is of the opinion that the same will be recovered within the rescheduled/extended period.

(d) As mentioned in clause iii (c) above as the overdue amount of outstanding loans have been rescheduled by the lenders in earlier years there was no overdue amount outstanding for payment of principal as at 31st March, 2012 and as such clause (iii)(d) of the said order is not applicable.

(e) The company has not taken any loans during the year from parties listed in the register maintained under section 301 of the Companies Act, 1956. However, there are interest free unsecured loan of Rs.1,78,84,500 outstanding as on 31.03.2012 in case of 4 parties covered in the register maintained u/s 301 of the Companies Act, 1956. The maximum amount due during the year was Rs.1,78,84,500.

(f) In our opinion, the rate of interest and other terms and conditions on which loans have been taken from Companies, firms or other parties listed in the register maintained u/s 301 are prima facie not prejudicial to the interest of the company.

(g) Parties from whom loans have been taken were rescheduled in earlier years and accordingly no principal was due for payment during the year as per revised stipulation.

(iv) In our opinion and according to the information and explanation given to us, there are adequate internal control procedure 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.

(v) (a) According to the information and explanations given to us, we are of the opinion that the 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 & according to the information & explanations given to us, no transactions were made during the year in pursuance of such contracts or arrangement which exceeded the value of five lacs rupees in respect of any party at prices which were unreasonable having regard to prevailing market prices at the relevant time.

(vi) The company has not accepted any deposits from Public & consequently the provisions of sections 58A and 58AA of the Companies Act, 1956 and the rules framed there under are not applicable.

(vii) In our opinion, the company has an adequate internal audit system commensurate with the size of the company and the nature of its business.

(viii) As explained to us the Central Government has not prescribed maintenance of cost records under clause (d) of sub section (i) of section 209 of the Companies Act, 1956 in respect of products dealt with by the company for the year under review.

(ix) According to the records of the company, the company is regular is depositing with the appropriate authorities undisputed statutory dues including Income Tax, Wealth Tax, Sales Tax, Custom Duty and any other statutory dues applicable to it.

(x) The accumulated losses at the end of the Financial year are more than 50% of companies net worth. Company has incurred cash loss during the year under review and in the immediately preceding financial year.

(xi) Company has not taken any loans from Banks/Financial Institutions or debenture holders and therefore provision of para (xi) of Companies (Audit Report), Order 2003 as amended are not applicable to the Company.

(xii) Based on our examination of documents and records maintained by the company, we are of the opinion that since the company has not granted any loan and advance on the basis security by way of pledge of shares, debenture and other securities, it is not required to maintain records in respect thereof.

(xiii) The company is neither a chit fund nidhi/mutual benefit fund/society and hence clause 4

(xiii) of the Companies (Auditor's Report) Order, 2003 is not applicable.

(xiv) Based on our examination of the records and evaluation of the related internal controls, we are of the opinion that proper records have been maintained of the transaction and contracts and timely entries have been made in those records in respect of dealing or trading in shares, securities, debentures and other securities in its own name except to the extent of the exemption granted under section 49 of the Companies Act, 1956.

(xv) Based on our examination of the records, we are of the opinion that the company has not given guarantee for loans taken by others from bank or financial institutions.

(xvi) The company has not taken any term loans and accordingly para (xvi) of the Companies (Audit Report) Order, 2003 as amended are not applicable.

(xvii) Based on our examination of the Balance Sheet of the company as at 31.03.2012 we report that no funds were raised during the year and hence clause (xvii) of Companies (Auditors Report) Order, 2003 as amended are not applicable.

(xviii) During the year the company has not made any preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of Companies Act, 1956.

(xix) During the year the company had not issued any debentures.

(xx) During the year under review no money was raised by public issue.

(xxi) According to the information & explanations given to us, we report no fraud on or by the company has been noticed or reported during the course of our audit.



For Suresh Kumar Mittal & Co., Chartered Accountants Firm Registration No.500063N



Sandeep Mittal Partner M.No.501404

House No.60, 1st Floor Pocket H-3, Sector 18 Rohini, Delhi - 110 085.

Dated: 04.09.2012


Mar 31, 2011

1. We have audited the attached Balance Sheet of M/s. MALTI TEXTILE MILLS LIMITED as at 31st March, 2011 and also Profit & Loss Account for the year ended on that date annexed thereto and the Cash Flow Statement for the year ended on that date. These financial statements are the responsibility of the Company's management. Our responsibility is to express on opinion on these financial statements based on our audit.

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

3. As required by the Companies (Auditor's Report) Order, 2003 and Companies (Auditor's Report) Amendment Order, 2004 issued by the Central Government of India in terms of sub-Section (4A) of Section 227 of the Companies Act, 1956 we enclose in the Annexure a statement on the matters specified in paragraph 4 and 5 of the said Order.

4. Further to our comments in the Annexure referred to in paragraph 3 above, we report that:

i) We have obtained all the information and explanation, which to the best of our knowledge and belief were necessary for the purpose 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 the Profit & Loss Account dealt with by this report are in agreement with the books of account.

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

v) On the basis of written representation received from the Directors as on 31.03.2011 and taken on record by the Board of Directors, we report that none of the Directors are disqualified as on 31st March, 2011 from being appointed as Director in terms of Section 274 (1)(g) of the Companies Act, 1956.

vi) In our opinion and to the best of our information and according to the explanations given to us, the accounts subject to and read together with notes appearing in schedule 7 give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view:

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

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

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

ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE

(i) The Company has no fixed assets and hence Para 4 (i) of Companies (Audit Report) Order, 2003 is not applicable.

(ii) The Company has no stock and neither has purchased nor sold any raw material, stores, spares and finished goods and hence Para 4 (ii) of Companies (Audit Report) Order, 2003 is not applicable.

(a) The company has not granted any loan during the year to the parties covered in the register maintained under section 301 of the Companies Act, 1956. However there are interest free unsecured loan given in earlier year outstanding as on 31.3.2011 of Rs.52,14 000 in case of one party covered in register maintained U/s 301. The maximum amount due during the year was Rs.52,14,000 and outstanding balance as on 31.3.2011 is of Rs.52,14,000.

(b) No interest has been charged on above unsecured loans. In our Opinion interest and other terms and condition on which above loans have been given, are prejudicial to the interest of the company with regard to non-charging of interest.

(c) The outstanding loans have been reschedule in earlier year. The management is of the opinion that the same will be recovered within the rescheduled/extended period.

(d) As mentioned in clause iii (c) above as the overdue amount of outstanding loans have been rescheduled by the lenders in earlier years there was no overdue amount outstanding for payment of principal as at 31st March, 2011 and as such clause (iii)(d) of the said order is not applicable.

(e) The company has not taken any loans during the year from parties listed in the register maintained under section 301 of the Companies Act, 1956. However, {here are interest free unsecured loan of Rs. 1,86,01,931 outstanding as on 31.03.2011 in case of 4 parties covered in the register maintained u/s 301 of the Companies Act, 1956. The maximum amount due during the year was Rs.1,86,01,931.

(f) In our opinion, the rate of interest and other terms and conditions on which loans have been taken from Companies, firms or other parties listed in the register maintained u/s 301 are prima facie not prejudicial to the interest of the company.

(g) Parties from whom loans have been taken were rescheduled in earlier years and accordingly no principal was due for payment during the year as per revised stipulation.

(iv) In our opinion and according to the information and explanation given to us, there are adequate internal control procedure 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.

(a) According to the information and explanations given to us, we are of the opinion that the 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 & according to the information & explanations given to us, no transactions were made during the year in pursuance of such contracts or arrangement which exceeded the value of five lacs rupees in respect of any party at prices which were unreasonable having regard to prevailing market prices at the relevant time.

(Vi) The company has not accepted any deposits from Public & consequently the provisions of sections 58A and 58AA of the Companies Act, 1956 and the rules framed there under are not applicable.

(Vii) in our opinion, the company has an adequate internal audit system commensurate with the size of the company and the nature of its business.

(viii) As explained to us the Central Government has not prescribed maintenance of cost records under clause (d) of sub section (i) of section 209 of the Companies Act, 1956 in respect of products dealt with by the company for the year under review.

(ix) According to the records of the company, the company is regular is depositing with the appropriate authorities undisputed statutory dues including Income Tax, Wealth Tax, Sales Tax, Custom Duty and any other statutory dues applicable to it.

x) The accumulated losses at the end of the Financial year are more than 50% of companies net worth. Company has incurred cash loss during the year under review and in the immediately preceding financial year.

Xi) Company has not taken any loans from Banks/Financial Institutions or debenture holders and therefore provision of Para (xi) of Companies (Audit Report), Order 2003 as amended are not applicable to the Company.

(xii) Based on our examination of documents and records maintained by the company, we are of the opinion that since the company has not granted any loan and advance on the basis security by way of pledge of shares, debenture and other securities, it is not required to maintain records in respect thereof.

(xiii) The company is neither a chit fund nidhi/mutual benefit fund/society and hence clause 4 (xiii) of the Companies (Auditor's Report) Order, 2003 is not applicable.

(xiv) Based on our examination of the records and evaluation of the related internal controls, we are of the opinion that proper records have been maintained of the transaction and contracts and timely entries have been made in those records in respect of dealing or trading in shares, securities, debentures and other securities in its own name except to the extent of the exemption granted under section 49 of the Companies Act, 1956.

(xv) Based on our examination of the records, we are of the opinion that the company has not given guarantee for loans taken by others from bank or financial institutions.

(XVi) The company has not taken any term loans and accordingly para

(xvi) of the Companies (Audit Report) Order, 2003 as amended are not applicable.

(xvii) Based on our examination of the Balance Sheet of the company as at 31.03.2011 we report that no funds were raised during the year and hence clause (xvii) of Companies (Auditors Report) Order 2003 as amended are not applicable.

(xviii) During the year the company has not made any preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of Companies Act, 1956

(xix) During the year the company had not issued any debentures.

(xx) During the year under review no money was raised by public issue.

(xxi) According to the information & explanations given to us, we report no fraud on or by the company has been noticed or reported during the course of our audit.

For Suresh Kumar Mittal & Co.,

Chartered Accountants Partner

House No.60, 1st Floor

Pocket H-3, Sector 18

Rohini, Delhi - 110 085.

Dated: 03.09.2011


Mar 31, 2010

1. We have audited the attached Balance Sheet of M/s. MALTI TEXTILE MILLS LIMITED as at 31st March, 2010 and also Profit & Loss Account for the year ended on that date annexed thereto and the Cash Flow Statement for the year ended on that date. These financial statements are the responsibility of the Companys management. Our responsibility is to express on opinion on these financial statements based on our audit.

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

3. As required by the Companies (Auditors Report) Order, 2003 and Companies (Auditors Report) Amendment Order, 2004 issued by the Central Government of India in terms of sub-Section (4A) of Section 227 of the Companies Act, 1956 we enclose in the Annexure a statement on the matters specified in paragraph 4 and 5 of the said Order.

4. Further to our comments in the Annexure referred to in paragraph 3 above, we report that:

i) We have obtained all the information and explanation, which to the best

of our knowledge and belief were necessary for the purpose 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 the Profit & Loss Account dealt with by this report. are in agreement with the books of account.

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

v) On the basis of written representation received from the Directors as on 31.03.2010 and taken on record by the Board of Directors, we report that one of the Directors are disqualified as on 31st March, 2010 from being appointed as Director in terms of Section 274 (1)(g) of the Companies Act, 1956.

vi) In our opinion and to the best of our information and according to the explanations given to us, the accounts subject to and read together with notes appearing in schedule 7 give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view:

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

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

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

ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE

(i) The Company has no fixed assets and hence para 4 (i) of Companies (Audit Report) Order, 2003 is not applicable.

(ii) The Company has no stock and neither has purchased nor sold any raw material, stores, spares and finished goods and hence para 4 (ii) of Companies (Audit Report) Order, 2003 is not applicable.

(iii) (a) The company has not granted any loan during the year to the parties covered in the register maintained under section 301 of the Companies Act, 1956. However there are interest free unsecured loan given in earlier year outstanding as on 31.3.2010 of Rs.52,14,000 in case of one party covered in register maintained U/s 301. The maximum amount due during the year was Rs.52,14,000 and outstanding balance as on 31.3.2010 is of Rs.52,14,000.

(b) No interest has been charged on above unsecured loans. In our Opinion interest and other terms and condition on which above loans have been given, are prejudicial to the interest of the company with regard to non-charging of interest.

(c) The outstanding loans have been reschedule in earlier year. The management is of the opinion that the same will be recovered within the rescheduled/extended period.

(d) As mentioned in clause iii (c) above as the overdue amount of outstanding loans have been rescheduled by the lenders in earlier years there was no overdue amount outstanding for payment of principal as at 31st March, 2009 and as such clause (iii)(d) of the said order is not applicable.

(e) The company has not taken any loans during the year from parties listed in the register maintained under section 301 of the Companies Act, 1956. However, there are interest free unsecured loan of Rs. 1,86,01,931 outstanding as on 31.03.2010 in case of 4 parties covered in the register maintained u/s 301 of the Companies Act, 1956. The maximum amount due during the year was Rs.1,86,01,931.

(f) In our opinion, the rate of interest and other terms and conditions on which loans have been taken from Companies, firms or other parties listed in the register maintained u/s 301 are prima facie not prejudicial to the interest of the company.

(g) Parties from whom loans have been taken were rescheduled in earlier years and accordingly no principal was due for payment during the year as per revised stipulation.

(iv) In our opinion and according to the information and explanation given to us, there are adequate internal control procedure 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.

(v) (a) According to the information and explanations given to us, we are of the opinion that the 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 & according to the information & explanations given to us, no transactions were made during the year in pursuance of such contracts or arrangement which exceeded the value of five lacs rupees in respect of any party at prices which were unreasonable having regard to prevailing market prices at the relevant time.

(vi) The company has not accepted any deposits from Public & consequently the provisions of sections 58A and 58AA of the Companies Act, 1956 and the rules framed there under are not applicable.

(vii) In our opinion, the company has an adequate internal audit system commensurate with the size of the company and the nature of its business.

(viii) As explained to us the Central Government has not prescribed maintenance of cost records under clause (d) of sub section (i) of section 209 of the Companies Act, 1956 in respect of products dealt with by the company for the year under review.

(ix) According to the records of the company, the company is regular is depositing with the appropriate authorities undisputed statutory dues including Income Tax, Wealth Tax, Sales Tax, Custom Duty and any other statutory dues applicable to it.

(x) The accumulated losses at the end of the Financial year are more than 50% of companies net worth. Company has incurred cash loss during the year under review and in the immediately preceding financial year.

(xi) Company has not taken any loans from Banks/Financial Institutions or debenture holders and therefore provision of para (xi) of Companies (Audit Report), Order 2003 as amended are not applicable to the Company.

(xii) Based on our examination of documents and records maintained by the company, we are of the opinion that since the company has not granted any loan and advance on the basis security by way of pledge of shares, debenture and other securities, it is not required to maintain records in respect thereof.

(xiii) The company is neither a chit fund nidhi/mutual benefit fund/society and hence clause 4 (xiii) of the Companies (Auditors Report) Order, 2003 is not applicable.

(xiv) Based on our examination of the records and evaluation of the related internal controls, we are of the opinion that proper records have been maintained of the transaction and contracts and timely entries have been made in those records in respect of dealing or trading in shares, securities, debentures and other securities in its own name except to the extent of the exemption granted under section 49 of the Companies Act, 1956.

(xv) Based on our examination of the records, we are of the opinion that the company has not given guarantee for loans taken by others from bank or financial institutions.

(xvi) The company has not taken any term loans and accordingly para

(xvi) of the Companies (Audit Report) Order, 2003 as amended are not applicable.

(xvii) Based on our examination of the Balance Sheet of the company as at 31.03.2010 we report that no funds were raised during the year and hence clause (xvii) of Companies (Auditors Report) Order, 2003 as amended are not applicable.

(xviii) During the year the company has not made any preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of Companies Act, 1956.

(xix) During the year the company had not issued any debentures.

(xx) During the year under review no money was raised by public issue.

(xxi) According to the information & explanations given to us, we report no fraud on or by the company has been noticed or reported during the course of our audit.

For Suresh Kumar Mittal & Co., Chartered Accountants

Partner House No.60, 1st Floor Pocket H-3, Sector 18 Rohini, Delhi - 110 085.

Dated: 18.08.2010

 
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