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Auditor Report of Emmbi Industries Ltd.

Mar 31, 2015

We have audited the accompanying financial statements of EMMBI INDUSTRIES LIMITED, ("the Company") which comprise the Balance Sheet as at 31st March, 2015, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section 134 (5) of Companies Act,2013 ("the Act") with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the company in accordance with the accounting principles generally accepted in India including 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 provision of the Act for safeguarding the assets of the Company and for preventing and detecting fraud 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 statement 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 standalone 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 thereunder.

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 misstatements.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company's preparation and presentation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Company's directors, as well as evaluating the overall presentation of the financial statements.

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

Opinion

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

(a) In the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2015;

(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 ( Auditors' 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 3 and 4 of the Order.

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

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

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

c) The Balance Sheet, the 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 aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

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

f) With respect to 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 explanation given to us;

i. The Company has disclosed its pending litigations in its financial statements as referred to in Note 18 (c) to the financial statements.

ii. The Company did not have any long term contracts including derivative contracts; as such the question of commenting on any material foreseeable losses thereon does not arise.

iii. There has not been an occasion in case of the Company during the year under report to transfer any sums to the Investor Education and Protection Fund. The question of delay in transferring such sums does not arise.

Annexure to Auditor's Report

The Annexure referred to in our report to the members of Emmbi Industries Limited for the year Ended on 31st March 2015. We report that:

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

(b) As explained to us, fixed assets have been physically verified by the management during the year at regular intervals and no material discrepancies were noticed on such verification;

(ii) (a) The management has conducted physical verification of inventory at reasonable intervals.

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

(c) On the basis of our examination of the records of inventory, we are of the opinion that the Company is maintaining proper records of inventory and no material discrepancies were noticed on physical verification.

(iii) As informed to us, during the year the Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under Section 189 of the Companies Act, 2013.

(iv) In our opinion, and according to the information and explanation given to us, there is an adequate internal control procedure commensurate with the size of the company and nature of its business, for the purchase of inventory and fixed assets and for the sale of goods. Further, on the basis of our examination of the books and records of the Company and according to information and explanation given to us, no major weakness has been noticed or reported.

(v) The company has not accepted any deposits from the public within the meaning of sections 73 to 76 of the Companies Act, 2013 and the rules framed there under.

(vi) As informed to us, the Central Government has not prescribed maintenance of cost records under sub-section (1) of Section 148 of the Act.

(vii) (a) According to the records, information and explanation provided to us, the company is regular in depositing with appropriate authorities undisputed amount of Provident Fund, Employees' State Insurance, Income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise Duty, Service Tax, Cess and other statutory dues applicable to it and no undisputed amounts payable were outstanding as at 31st March, 2015 for a period of more than six months from the date they became payable.

(b) According to the information and explanation given to us and as per our verification of records of the company, the disputed amounts of Income Tax which are not deposited with appropriate authorities as at 31st March 2015, are as follows:

Amount is due under Income Tax Act, 1961 as Income Tax amounting Rs 3,90,05,030/-for the period 01.04.2010 to 31.03.2011 which is reduced by CIT Appeal to Rs 58,50,760/- by order received on 26.05.2015. The Appeal to Tribunal will be preferred in due course of time.

(c ) There has not been an occasion in case of the company during the year under report to transfer any sums to the Investor Education and Protection Fund.

The question of reporting delay in transferring such sums does not arise.

(viii) The Company has neither accumulated losses as at 31st March, 2015 nor it has incurred any cash losses during the financial year ended on that date and the immediately preceding financial year.

(ix) Based on our audit procedures and on the information and explanation given to us, the company has not defaulted in repayment of dues to any financial institution or bank.

(x) In our opinion and according to information and explanation given to us, the Company has not given any guarantee for loan taken by others from bank or financial institution during the year.

(xi) The term loan taken by the company has been applied for the purpose for which they were raised.

(xii) During the course of our examination of the books of account carried out in accordance with the generally accepted auditing practices in India and according to the information and explanation given to us, we have neither come across any instance of fraud on or by the Company, noticed or reported during the year, nor have we been informed of such case by the management.

For K. J. SHAH & ASSOCIATES Chartered Accountants FRN : 127308W

Place: Mumbai K. J. SHAH, Proprietor Date: 28th May, 2015 Membership No. 030784






Mar 31, 2014

We have audited the accompanying financial statements of EMMBI INDUSTRIES LIMITED, ("the Company") 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 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 notified under the Companies Act, 1956 ("the Act") read with the General Circular 15/2013 dated September 15, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of 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 ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements.

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

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

Opinion

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

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

(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 ( Auditors'' Report ) Order, 2003, ("the Order") as amended by ''the Companies (Auditor''s Report) (Amendment) Order, 2004,''issued by the Central Government of India in terms of section 227(4A) of the Act, we give in the Annexure a statement on the matters specified in paragraph 4 and 5 of the Order.

2. As required by section 227(3) of the Act , 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 purpose of our Audit.

ii) In our opinion, proper Books of Accounts as required by law, have been kept by the Company so far as appears from our examination of those books.

iii) The Balance Sheet, the 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, the Statement of Profit and Loss and the Cash Flow Statement comply with the Accounting Standards notified under the Act read with the General Circular 15/2013 dated September 15, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of Companies Act 2013;

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

ANNEXURE TO THE AUDITORS'' REPORT OF EVEN DATE TO THE MEMBERS OF EMMBI INDUSTRIES LIMITED (FORMERLY KNOWN AS EMMBI POLYARNS LIMITED)

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

(b) Fixed assets have been physically verified by the management during the year, which in our opinion is reasonable having regard to the size of the Company and the nature of its fixed assets. No material discrepancies were noticed on verification.

(c) In our opinion and according to the information and explanation given to us substantial part of fixed assets has not been disposed by the company during the year.

(ii) (a) The management has conducted physical verification of inventory at reasonable intervals.

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

(c) On the basis of our examination of the records of inventory, we are of the opinion that the Company is maintaining proper records of inventory and no material discrepancies were noticed on physical verification.

(iii) As informed to us, during the year the Company has neither granted nor taken any loans, secured or unsecured to/from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956.

(iv) In our opinion, and according to the information and explanation given to us, there is an adequate internal control procedure commensurate with the size of the company and nature of its business, for the purchase of inventory and fixed assets and for the sale of goods. During the course of our audit, no major weakness has been noticed in the internal control. We have not observed any failure on the part of the company to correct major weakness in internal control.

(v) Based on the audit procedures applied by us and according to the information and explanations provided by the management, we are of the opinion that the transaction that needs to be entered into the register maintained under section 301 of the Companies Act, 1956 have been so entered.

(vi) The company has not accepted any deposits from the public within the meaning of sections 58A and 58AA of the Companies Act, 1956 and the rules framed there under.

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

(viii) We have broadly reviewed the records maintained by the Company pursuant to the Cost Accounting Rules, 2011 applicable to the Company under section 209 (1) (d) of the Companies Act, 1956 for maintenance of cost records from current year and are of the opinion that prima facie the prescribed accounts and records have been made and maintained. However, we are neither required to carry out nor have carried out any detailed examination of such accounts and records.

(ix) (a) According to the records, information and explanation provided to us, the company is regular in depositing with appropriate authorities undisputed amount of Provident Fund, Employees'' State Insurance, Income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise Duty, Service Tax, Cess and other statutory dues applicable to it and no undisputed amounts payable were outstanding as at 31st March, 2014 for a period of more than six months from the date they became payable.

(b) According to the information and explanation given to us and as per our verification of records of the company, the disputed amounts of Income Tax which are not deposited with appropriate authorities as at March 2014, are as follows:

Amount is due under Income Tax Act, 1961 as Income Tax amounting Rs. 90,22,240/-for the period 01.04.2009 to 31.03. 2010. The Appeal is pending with Commissioner of Income Tax - Appeal.

(x) The Company has neither accumulated losses as at March 31, 2014 nor it has incurred any cash losses during the financial year ended on that date and the immediately preceding financial year.

(xi) Based on our audit procedures and on the information and explanation given to us, the company has not defaulted in repayment of dues to any financial institution or bank.

(xii) The term loan taken by the company has been applied for the purpose for which they were raised.

(xiii) On the basis of our examination of the books of accounts and information and explanation given to us, in our opinion, the funds raised on short term basis have not been used for long term investments and vice-versa.

(xiv) During the course of our examination of the books of account carried out in accordance with the generally accepted auditing practices in India and according to the information and explanation given to us, we have neither come across any instance of fraud on or by the Company, noticed or reported during the year, nor have we been informed of such case by the management.

(xv) Matters specified in clauses (iii) - (b), (c), (d), (e), (f) and (g),

(xii), (xiii), (xiv), (xv), (xviii), (xix), (xx) of paragraph 4 of the CARO, 2003 do not apply to the company.

For K. J. SHAH & ASSOCIATES Chartered Accountants FRN : 127308W

K. J. SHAH Place : Mumbai Proprietor Date: 27th May, 2014 Membership No. 030784


Mar 31, 2012

We have audited the attached Balance Sheet of EMMBI POLYARNS LIMITED, MUMBAI as at 31st March, 2012, the Profit and Loss Statement and the Cash Flow Statement for the year ended on that date annexed thereto. These financial statement are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with generally accepted auditing standards 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 misstatements. An audit includes examining , on test basis, evidence supporting the amounts and disclosure in the financial statement. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statements presentation. We believe that our audit provides a reasonable basis for our opinion.

1. As required by the Companies (Auditors' Report) Order, 2003, as amended by the Companies (Auditors' Report) (Amendment) Order, 2004 (together the 'Order") issued by the Central Government of India in terms of section 227(4A) of the Companies Act, 1956 (' the Act') and on the basis of such checks as we considered appropriate, and according to the information and explanations given to us, we enclosed in the Annexure a statement on the matters specified in paragraph 4 and 5 of the said Order to the extent applicable to the Company,

2. In accordance with the provision of section 227 of the Companies Act, 1956, we report as under:

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

ii) In our opinion, proper Books of Accounts as required by Law, have been kept by the Company so far as appears from our examination of such Books.

iii) The said Balance Sheet, Profit and Loss Statement and Cash Flow Statement dealt with by this report are in agreement with the Books of Account.

iv) In our opinion, the Balance Sheet, Profit and Loss Statement and Cash Flow Statement dealt with by the report is in compliance with the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956.

v) On the basis of written representations received from the Directors as on March 31, 2012 and taken on record by the Board of Directors, we report that the none of the Directors are disqualified as on 31st March, 2012 from being appointed as Director under clause (g) of sub-section (1) of Section 274 of the Companies act, 1956.

vi) In our opinion and to the best of our information and according to the explanation given to us, the said accounts read with the significant accounting policies and notes thereon, give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view in the accounting principles generally accepted in India : -

a) In the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2012.

- b) In the case of the Profit and Loss Statement, of the Profit for the year ended on 31 st March, 2012.

c) In the case of the Cash Flow Statement, of the cash flows for the year ended on 31st March, 2012.

(i) The Company has maintained proper records showing full particulars including quantitative details and situation of its fixed assets. Fixed assets have been physically verified by the management during the year, which in our opinion is reasonable having regard to the size of the Company and the nature of its fixed assets. No material! discrepancies were noticed on verification.

There was no substantial disposal of fixed assets during the year.

(ii) The management has conducted physical verification of inventory at reasonable intervals. 1 tie pjceaures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business. The Company is maintaining proper records of inventory and no lateral discrepancies were noticed on physical verification.

(iii) As informed to us, during the year the Company has neither granted nor taken any loans, so; used or unsecured to/from companies, firms or other parties covered in the register maintained under Section 301 cf the: Companies Act, 1956.

(iv) In our opinion, and according to the information and explanation given to us, there is an adequate internal control procedure commensurate with the size of the company and nature of its business, for the purchase of inventory and fixed assets and for the sale of goods. During the course of our audit, no major weakness has been noticed in the internal control. We have not observed any failure on the part of the company to correct major weakness in internal control.

(v) Based on the audit procedures applied by us and according to the information and explanations provided by the management, we are of the opinion that the transaction that need to be entered into the register maintained under section 301 of the Companies Act, 1956 have been so entered.

(vi) The company has not accepted any deposits from the public within the meaning of sections 58A and 58AA of the Companies Act, 1956 add the rules framed there under.

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

(viii) We have broadly reviewed the records maintained by the Company pursuant to the Cost Accounting Rules. 2011 applicable to the Company under section 209 (1) (d) of the Companies Act, 1956 for maintenance of cost records from current year and are of the opinion that prima facie the prescribed accounts and records have been made and mainl&inc-d. However, we are not required to and have not carried out any detailed examination of such records.

(ix) (a) According to the records, information and explanation provided to us, the company is regular in depositing with appropriate authorities undisputed amount of Provident Fund, Employees' State Insurance, Income Tax. Sales Tax, Wealth Tax, Custom Duly, Excise Duty, Service Tax, Cess and other statutory dues applicable to it and no undisputed amounts payable were outstanding as at 31£l March, 2012 for a period of more than six months from the date they became pays Die.

(b) According to the records of the company, there are no dues of Sales Tax, Custom duty, Wealth Tax, Excise duty, Service Tax. Cess and other statutory dues which has not been deposited on account of any dispute.

(x) The Company has neither accumulated losses as at March 31, 2012 nor it has incurred any cash losses during the financial year ended on that date and the immediately preceding financial year.

(xi) Based on our audit procedures and on the information and explanation given to us, the company has not defaulted in repayment of dues to any financial institution or bank.

(xii) Based on our examination and according to the information and explanation 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,

(xiii) The company is not a Chit/Nidhi/Mutual Benefit Fund/Society and Clause (xiii) of the Order is not applicable.

(xiv) In our opinion, and according to the information and explanation given to us, there is no dealing or trading in shares, securities, debentures and other investments.

(xv) On the basis of the information and explanation given to us, the company has not given any guarantee for loans taken by others from bank or financial institutions.

(xvi) The term loan taken by the company has been applied for the purpose for which they were raised.

(xvii) On the basis of our examination of the books of accounts and information and explanation given to us, in our opinion, no funds have bee raised on short term basis.

(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 the Act.

(xix) The Company and not have any outstanding debentures during the year.

(xx) The Company has not raised any money by public issues during the year.

(xxi) During the course of our examination of the books of account carried out in accordance with the generally accepted auditing practices in India and according to the information and explanation given to us, we have neither come across any instance of first on or by the Company, noticed or reported during the year, nor have we been informed of such case by the management

For and on behalf of

K. J. Shah & Associates

Chartered Accountants

FRN 127308W

(Kirti J. Shah)

Place Mumbai Proprietor

Date : 29.05.2012 Membership No. 030784


Mar 31, 2010

1 We have audited the attached Balance Sheet of EMMBI POLYARNS LIMITED, MUMBAI as at 31st March, 2010, the Profit and Loss Account and the Cash Flow Statement for the year ended on that date annexed thereto. These financial statement are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

2 We conducted our audit in accordance with generally accepted auditing standards 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 misstatements. An audit includes examining, on test basis, evidence supporting the amounts and disclosure in the financial statement. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statements presentation. We believe that our audit provides a reasonable basis for our opinion.

3 As required by the Companies ( Auditors Report ) Order, 2003, as amended by the Companies (Auditors Report) (Amendment) Order, 2004 (together the Order") issued by the Central Government of India in terms of section 227(4A) of the Companies Act, 1956 ( the Act) and on the basis of such checks 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 paragraph 4 and 5 of the said Order to the extent applicable to the Company.

4 In accordance with the provision of section 227 of the Companies Act, 1956, we report as under:

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

ii. In our opinion, proper Books of Accounts as required by Law, have been kept by the Company so far as appears from our examination of such Books.

iii. The said Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the Books of Account.

iv. In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by the report is in compliance with the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956.

v. On the basis of written representations received from the Directors as on March 31, 2010 and taken on record by the Board of Directors, we report that the none of the Directors are disqualified as on 31st March, 2010 from being appointed as Director under clause (g) of sub-section (1) of Section 274 of the Companies act, 1956.

vi. In our opinion and to the best of our information and according to the explanation given to us, the said accounts read with the significant accounting policies and notes thereon, give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view in the accounting principles generally accepted in India : -

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

b) In the case of the Profit and Loss Account, of the Profit for the year ended on 31st March, 2010.

c) In the case of the Cash Flow Statement, of the cash flows for the year ended on 31st March, 2010.

Annexure to the Auditors Report of even date to the members of M/s Emmbi Polyarns Limited.

(i) The Company has maintained proper records showing full particulars including quantitative details and situation of its fixed assets. Fixed assets have been physically verified by the management during the year, which in our opinion is reasonable having regard to the size of the Company and the nature of its fixed assets. No material discrepancies were noticed on verification.

There was no substantial disposal of fixed assets during the year.

(ii) The management has conducted physical verification of inventory at reasonable intervals. The procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business. The Company is maintaining proper records of inventory and no material discrepancies were noticed on physical verification.

(iii) As informed to us, during the year the Company has neither granted nor taken any loans, secured or unsecured to/ from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956.

(iv) In our opinion, and according to the information and explanation given to us, there is an adequate internal control procedure commensurate with the size of the company and nature of its business, for the purchase of inventory and fixed assets and for the sale of goods. During the course of our audit no major weakness has been noticed in the internal control. We have not observed any failure on the part of the company to correct major weakness in internal control.

(v) Based on the audit procedures applied by us and according to the information and explanations provided by the management, we are of the opinion that the transaction that need to be entered into the register maintained under section 301 of the Companies Act, 1956 have been so entered.

(vi) The company has not accepted any deposits from the public within the meaning of sections 58A and 58AA of the Companies Act, 1956 and the rules framed there under.

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

(viii) Maintenance of cost records under section 209 (1) (d) of the Act have not been prescribed by the Central Government.

(ix) (a) According to the records, information and explanation provided to us, the company is generally regular in depositing with appropriate authorities undisputed amount of Provident Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise Duty, Service Tax, Cess and other statutory dues applicable to it and no undisputed amounts payable were outstanding as at 31st March, 2010 for a period of more than six months from the date they became payable.

(b) According to the records of the company, there are no dues of Sales Tax, Custom duty, Wealth Tax, Excise duty, Service Tax, Cess and other statutory dues which has not been deposited on account of any dispute.

(x) The Company has neither accumulated losses as at March 31, 2010 nor it has incurred any cash losses during the financial year ended on that date and the immediately preceding financial year.

(xi) Based on our audit procedures and on the information and explanation given to us, the company has not defaulted in repayment of dues to any financial institution or bank.

(xii) Based on our examination and according to the information and explanation 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.

(xiii) The company is not a Chit/Nidhi/Mutual Benefit Fund/Society and Clause (xiii) of the Order is not applicable.

(xiv) In our opinion, and according to the information and explanation given to us, there is no dealing or trading in shares, securities, debentures and other investments.

(xv) On the basis of the information and explanation given to us, the company has not given any guarantee for loans taken by others from bank or financial institutions.

(xvi) The term loan taken by the company has been applied for the purpose for which they were raised.

(xvii) On the basis of our examination of the books of accounts and information and explanation given to us, in our opinion, no funds have been raised on short term basis.

(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 the Act.

(xix) The Company did not have any outstanding debentures during the year.

(xx) The Company has raised money by public issues during the year aggregating to Rs. 38,95,96,500/-

(xxi) During the course of our examination of the books of account carried out in accordance with the generally accepted auditing practices in India and according to the information and explanation given to us, we have neither come across any instance of fraud on or by the Company, noticed or reported during the year, nor have we been informed of such case by the management.

For and on behalf of K. J. SHAH & ASSOCIATES

Chartered Accountants

FRN: 127308W

Sd/-

K. J. SHAH

Place : Mumbai Proprietor

Dated : 31.05.2010 Membership No. 030784


Mar 31, 2009

We have audited the attached Balance Sheet of Messrs. EMMBI POLYARNS LIMITED, MUMBAIas at 31st March, 2009 and also the relative Profit and Loss Account for the year ended on that datea n n ex ed thereto. These financial statement are the responsibility of the Companys management. Ourresponsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with generally accepted auditing standards 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 misstatements. An audit includes examining, on test basis, evidence supporting the amounts and disclosure in the financial statement. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statements presentation. We believe that our audit provides a reasonable basis for our opinion.

In accordance with the provision of section 227 of the Companies Act, 1956, we report as under:

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

2. In our opinion, proper Books of Accounts as required by Law, have been kept by the Company so far as appears from our examination of such Books.

3. The said Balance Sheet and the Profit and Loss Account dealt with by this report are in agreement with the Books of Account.

4. In our opinion, the Balance Sheet and the Profit and Loss Account dealt with by the report is in compliance with the Accounting Standards referred to in Section 211 (3C)of the Companies Act, 1956.

5. On the basis of written representations received from the Directors as on March 31, 2009 and taken on record by the Board of Directors, we report that the none of the Directors are disqualified as on 31st March, 2009 from being appointed as Director under clause (g) of sub-section (1) of Section 274 of the Companies act, 1956.

6. In our opinion and to the best of our information and according to the explanation given to us, the said accounts read with the significant accounting policies and notes thereon, give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view in 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 Profit for the year ended on that date.

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

Annexure to the Auditors Report of even date to the members of M/s Emmbi Polyarns Limited.

i) The Company has maintained proper records showing full particulars including quantitative details and situation of its fixed assets. Fixed assets have been physically verfied by the management during the year, which in our opinion is reasonable having regard to the size of the Company and the nature of its fixed assets. No material discrepancies were noticed on verfication. There was no substantial disposal of fixed assets during the year.

ii) The management has conducted physical verification of inventory at reasonable intervals. The procedures of physical verfication of inventory followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business. The Company is maintaining proper records of inventory and no material discrepancies were noticed on physical verification.

iii) As informed to us, during the year the Company has neither granted nor taken any loans, secured or unsecured to/from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956.

iv) In our opinion, and according to the information and explanation given to us, there in an adequate internal control procedure commensurate with the size of the company and nature of its business, for the purchase of inventory and fixed assets and for the sale of goods, During the course of our audit no major weakness has been noticed in the internal control. We have not observed any failure on the part of the company to correct major weakness in internal control.

v) Based on the audit procedures applied by us and according to the information and explanations provided by the management, we are of the opinion that the transaction that need to be entered into the register maintained under section 301 of the Companies Act, 1956 have been so entered.

vi) The company has not accepted any deposits from the public within the meaning of sections 58A and 58AA of the Companies Act, 1956 and the rules framed there under.

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

viii) Maintenance of cost records under section 209 (1) (d) of the Act have not been prescribed by the Central Government.

ix) a)According to the records, incormation and explanation provided to us, the company is generally regular in depositing with appropriate authorities undisputed amount of Provident Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise Duty, Cess and other statutory dues applicable to it and no undisputed amount payable were outstnding as at 31 st March, 2009 for a period of more than six months from the date they became payable.

b)According to the records of the company, there are no dues of Sales Tax, Custom Tax/Wealth Tax, Excise duty / Cess which has not been deposited on account of any dispute. Dues for Income tax demand for penalty for A. Y. 2001-02 Rs. 10,52,242/-for which tribunal appeal is preferred has not been paid.

x) The Company has neither accumulated losses as at March 31,2009 nor is has incurred any cash losses during the financial year ended on that and the immediately preceding financial year.

xi) Based on our audit procedures and on the information and explanation given to us, the company has not defaulted in repayment of dues to any financial institution or bank.

xii) Based on our examination and according to the information and explanation 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.

xiii) The company is not a Chit / Nidhi / Mutual Benefit Fund / Society and Clause (xiii) of the Order is not applicable.

xiv) In our opinion, and according to the information and explanation given to us, there is no dealing or trading in shares, securities, debentures and other investments.

xv) On the basis of the information and explanation given to us, the company has not given any guarantee for loans taken by others from bank or financial institutions.

xvi) The term loan taken by the company has been applied for the purpose for which they were raised.

xvii) On the basis of our examination of the books of accounts and information and explanation given to us, in our opinion, no funds have been raised on short term basis.

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 the Act.

xix) The Company did not have any outstanding debentures during the year.

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

xxi) During the course of our examination of the books of account carried out in accordance with the generally accepted auditing practices in India and according to the information and explanation given to us, we have neither come across any instance of fraud on or by the Company, noticed or reported during the year, nor have we been informed of such cash by the management.

For and on behalf of

K.J. Shah & Associates Chartered Accountants

Sd-

Place : Mumbai (Kirti J. Shah) Proprietor Date : 20-07-2009 Membership No. 030784


Mar 31, 2008

We have audited the attached Balance Sheet of Messrs. EMMBI POLYARNS LIMITED, MUMBAI as at 31st March, 2008 and also the relative Profit and Loss Account for the year ended on that date annexed thereto. These financial statement are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit

We conducted our audit in accordance with generally accepted auditing standards 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 misstatements. An audit includes examining, on test basis, evidence supporting the amounts and disclosure in the financial statement. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statements presentation. We believe that our audit provides a reasonable basis for our opinion.

In accordant with the provision of section 227 of the Companies Act, 1956, we report as under:

1. We have obtained all the information and explanations which to the best of our knowledge and belief were rtecessary for the purpose of our Audit

2. In our opinion, proper Books of Accounts as required by Law, have been kept by the Company so far as appears from our examination of such Books.

3. The said Balance Sheet and the Profit and Loss Account dealt with by this report are in agreement with the Books of Account.

4. In our opinion, the Balance Sheet and the Profit and Loss Account dealt with by the report is in compliance with the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956.

5. On the basis of written representations received from- the Directors as on March 31,2008 and taken on record by the Board of Directors, we report that none of the Directors are disqualified as on 31 st March, 2008 from being appointed as Director under clause (g) of sub-section (1) of Section 274 of the Companies act 1956.

6. In our opinion and to the best of our information and according to the explanation given to us, the said accounts read with the significant accounting policies and notes thereon, give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view in subject to non- provision of gratuity liability of Rs. 7,92.441/- as per note no.20(AS-15), and is 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, 2008.

b) In the case of the Profit and Loss Account, of the Profit for the year ended on that date. As required by the Companies (Auditors Report) Order, 2003, issued by the Central Government of India in terms of section 227(4A) of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

* Annexure to the Auditors Report of even date to the members of M/s Emmbi Polyarns Limited.

i) The Company has maintained proper records showing full particulars including quantitative details and situation of its fixed assets. Fixed assets have been physically verified by the management during the year, which in our opinion is reasonable having regard to the size of the Company and the nature if its fixed assets. No material discrepancies were noticed on verification. There was no substantial disposal of fixed assets during the year.

ii) The management has conducted physical verification of inventory at reasonable intervals. The procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business. The Company is maintaining proper records of inventory and no material discrepancies were noticed on physical verification.

iii) As informed to us, the Company has neither granted nor taken any loans, secured or unsecured to / from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956.

iv) In our opinion, and according to the information and explanation given to us, there is an adequate internal control procedure commensurate with the size of the company and nature of its business, for the purchase of inventory and fixed assets and for the sale of goods. During the course of our audit no major weakness has been noticed in the internal control. We have not observed any failure on the part of the company to correct major weakness in internal control.

v) Based on the audit procedures applied by us and according to the information and explanations provided by the management, we are of the opinion that the transaction that need to be entered into the register maintained under section 301 of the companies Act, 1956 have been so entered.

vi) The Company has not accepted any deposits from the public within the meaning of sections 58A and 58AA of the Companies Act, 1956 and the rules framed there under.

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

viii) Maintenance of cost records under section 209 (1) (d) of the Act have not been prescribed by the Central Government.

ix) a) According to the records, information and explanation provided to us, the company is generally regular in depositing with appropriate authorities undisputed amount of Provident Fund, Employees State Insurance, Income Tax, Sales Tx, Wealth Tax, Custom Duty, Excise Duty, Cess and other statutory dues applicable to it and no undisputed amounts payable were outstanding as at 31st March, 2008 for a period of more than six months from the date they become payable.

b) According to the records of the company, there are no dues of Sales Tax, Income Tax, Custom Tax/Wealth Tax, Excise duty/Cess which have not been deposited on account of any dispute.

x) The Company has neither accumulated losses as at March 31, 2008, nor it has incurred any cash losses during the financial year ended on that date and the immediately preceding financial year.

xi) Based on our audit procedures and on the information and explanation given to us, the company has not defaulted in repayment of dues to. any financial institution or bank.

xii) Based on our examination and according to the information and explanation 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.

xiii) The company is not a Chit/Nidhi/Mutual Benefit Fund/Society and Clause (xiii) of the Order is not applicable.

xiv) In our opinion, and according to the information and explanation given to us, there is no dealing or trading in shares, securities, debentures and other investments.

xv) On the basis of the information and explanation given to us, the company has not given any guarantee for loans taken by others from bank or financial institutions.

xvi) The term loan taken by the company has been applied for the purpose for which they were raised.

xvii) On the basis of our examination of the books of accounts and information and explanation given to us, in our opinion, no funds have been raised on short term basis.

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 the Act.

xix) The Company did not have any outstanding debentures during the year.

xx) The Company has not raised any money by public issue during the year.

xxi) During the course of our examination of the books of account carried out in accordance with the generally accepted auditing practices in India and according to the information and explanation given to us, we have neither come across any instance of fraud on or by the Company, noticed or reported during the year, nor have we been informed of such case by the management.

For and on behalf of K. J.Shah & Associates

Chartered Accountants

Sd/-

Place: MUMBAI (Kirti J. Shah) Proprietor

Date : 24.06.2008 Membership No. : 30784


Mar 31, 2007

We have audited the attached Balance Sheet of Messrs. EMMBI POLYARNS LIMITED, MUMBAI as at 31st March 2007 and also the relative Profit and Loss Account for the ended on that date annexed thereto. These financial statement are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with generally accepted auditing standards 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 misstatements. An audit includes examining, on test basis, evidence supporting the amounts and disclosure in the financial statement An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall financial statements presentation. We believe that our audit provides a reasonable basis for our opinion.

In accordance with the provision of section 227 of the Companies Act, 1956, we report as under:

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

2) In our opinion, proper Books of Accounts as required by Law, have been kept by the Company so far as appears from our examination of such Books.

3) The said Balance Sheet and the Profit and Loss Account dealt with by this report are in agreement with the Books of Account-

4) In our opinion, the Balance Sheet and the Profit and Loss Account dealt with by the report is in compliance with the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956.

5) On the basis of written representations received from the Directors as on March 31,2007 and taken on record by the Board of Directors, we report that the none of the Directors are disqualified as on 31st March, 2007 from being appointed as Director under clause (g) of sub-section (1) of Section 274 of the Companies act 1956.

6) In our opinion and to the best of our information and according to the explanation given to us, the said accounts read with the significant accounting policies and 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, 2007.

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

As required by the Companies (Auditors Report) Order, 2003, issued by the Central Government of India in terms of section 227(4A) of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said order.

Annexure to the Auditors Report of even date to the members of M/s Emmbi Polyarns Limited.

i) The Company has maintained proper records showing full particulars including quantitative details and situation of its fixed assets. Fixed assets have been physically verified by the management during the year, which in our opinion is reasonable having regard to the size of the Company and the nature if its fixed assets. No material discrepancies were noticed on verification. There was no substantial disposal of fixed assets during the year.

ii) The management has conducted physical verification of inventory at reasonable intervals. The procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business. The Company is maintaining proper records of inventory and no material discrepancies were noticed on physical verification.

iii) As informed to us, the Company has neither granted nor taken any loans, secured or unsecured to / from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956.

iv) In our opinion, and according to the information and explanation given to us, there is an adequate internal control procedure commensurate with the size of the company and nature of its business, for the purchase of inventory and fixed assets and for the sale of goods. During the course of our audit no major weakness has been noticed in the internal control. We have not observed any failure on the part of the company to correct major weakness in internal control.

v) Based on the audit procedures applied by us and according ton the information and explanations provided by the management, we are of the opinion that the transaction that need to be entered into the register maintained under section 301 of the companies Act, 1956 have been so entered.

vi) The Company has not accepted any deposits from the public within the meaning of sections 58A and 58AA of the Companies Act, 1956 and the rules framed there under.

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

viii) Maintenance of cost records under section 209 (1) (d) of the Act have not been prescribed by the Central Government.

ix) a) According to the records, information and explanation provided to us, the company is generally regular in depositing with appropriate authorities undisputed amount of Provident Fund, Employees State Insurance, Income Tax, Sales TAx, Wealth Tax, Custom Duty, Excise Duty, Cess and other statutory dues applicable to it and no undisputed amounts payable were outstanding as at 31st March, 2007 for a period of more than six months from the date they become payable.

b) According to the records of the company, there are no dues of Sales Tax, Income Tax, Custom Tax/Wealth Tax, Excise duty/Cess which have not been deposited on account of any dispute.

x) The Company has neither accumulated losses as at March 31, 2007, nor it has incurred any cash losses during the financial year ended on that date and the immediately preceding financial year.

xi) Based on our audit procedures and on the information and explanation given to us, the company has not defaulted in repayment of dues to any financial institution or bank.

xii) Based on our examination and according to the information and explanation 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.

xiii) The company is not a Chit/Nidhi/Mutual Benefit Fund/Society and Clause (xiii) of the Order is not applicable.

xiv) In our opinion, and according to the information and explanation given to us, there is no dealing or trading in shares, securities, debentures and other investments.

xv) On the basis of the information and explanation given to us, the company has not given any guarantee for loans taken by other from bank or financial institution.

xvi) The term loan taken by the company has been applied for the purpose for which they were raised.

xvii) On the basis of our examination of the books of accounts and information and explanation given to us, in our opinion, no funds have been raised on short term basis.

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 the Act.

xix) The Company did not have any outstanding debentures during the year.

xx) The Company has not raised any money by public issue during the year.

xxi) During the course of our examination of the books of account carried out in accordance with the generally accepted -auditing practices in India and according to the information and explanation given to us, we have neither come across any instance of fraud on or by the Company, noticed or reported during the year, nor have we been informed of such case by the management.

For and on behalf of K. J.Shah & Associates Chartered Accountants

Sd/-

Place: MUMBAI (Kirti J. Shah) Proprietor

Date : 27.07.2007 Membership No. : 30784


Mar 31, 2006

We have audited the attached Balance Sheet of Messrs. EMMBI POL YARNS LIMITED, MUMBAI as at 31st March, 2006 and also the relative Profit and Lo3s Account for the year ended an that date annexed thereto. These financial statement are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with generally accepted auditing standards 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 misstatements. An audit includes examining, on test basis, evidence supporting the amounts and disclosure in the financial statement. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statements presentation. We believe that our audit provides a reasonable basis for our opinion.

In accordance with the provision of section 227 of the Companies Act, 1956, we report as u^der : 1 We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our Audit.

2. hi our opinion^ proper Books of Accounts as required by Law, have been kept by the Company so tar as appeals from our examination of such Books.

3. The said Balance Sheet and the Profit and Loss Account dealt with by this report are in agreement with the Books of Account.

4. In our opinion, the Balance Sheet and the Profit and Loss Account dealt with by the report is in compliance with the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956.

5. On the basis of written representations received from the Directors as on March 31, 2006 and taken on record by the Board of Directors, we report that the none of the Directors is disqualified as on

31st March, 2006 from being appointed as Director under clause (g) of sub-section (1) of Section 274 of the Companies act, 1956.

6. In our opinion and to the best of our information and according to the explanation given to us, the said accounts read with the significant accounting policies and 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, 2006. b) In the case of the Profit and Loss Account, of the Profit for the year ended on that date. As required by the Companies ( Auditors Report ) Order, 2003, issued by the Central Government of India in terms of section 227(4A) of the Companies Act 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

Annexure to the Auditors Report of even date to the members of M/e Emmbi Polyarns Limited.

(i) The Company has maintained proper records showing full particulars including

quantitative details and situation of its fixed assets. Fixed assets have been physically verified by the management during the year, which in our opinion is reasonable having regard to the size of the Company and the nature of its fixed assets. No material discrepancies were noticed on verification. There was no substantial disposal of fixed assets during the year.

(ii) The management has conducted physical verification of inventory at reasonable intervals. The procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business. The Company is maintaining proper records of inventory and no material discrepancies were noticed on physical verification.

(v) As informed to us, the Company has neither granted nor taken any loans, secured or unsecured to/from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956.

(iv) In our opinion, and according to the information and explanation given to us, there is an adequate internal control procedure commensurate with the size of the company and nature of its business, for the purchase of inventory and fixed assets and for the sale of goods. During the course of our audit no major weakness has been noticed in the internal control. We have not observed any failure on the part of the company to correct major weakness in internal control.

(v) Based on the audit procedures applied by us and according to the information and explanations provided by the management, we are of the opinion that the transaction that need to. be entered into the register maintained under section 301 of the Companies Act, 1956 have been so entered.

(vi) The company has not accepted any deposits from the public within the meaning of sections 58 A and 58 A A of the Companies Act, 1956 and the rules framed thereunder.

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

(viii) Maintenance of cost records under section 209 (1) (d) of the Act have not been prescribed by the Central Government.

(ix) (a) According to the records, information and explanation provided to us, the company is generally regular in depositing with appropriate authorities undisputed amount of Provident Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise Duty, Cess and other statutory dues applicable to it and no undisputed amounts payable were outstanding as at 31st March, 2006 for a period of more than six months from the date they became payable.

(b) According to the records of the company, there are no dues of Sales Tax, Income Tax, Custom. Tax/Wealth Tax, Excise duty/Cess which have not been deposited on account of any dispute.

(x) The Company has neither accumulated losses as at March 31, 2006, nor it has incurred any cash losses during the financial year ended on that date and the immediately preceding financial year.

(xi) Based on our audit procedures and on the information and explanation given to us, the company has not defaulted in repayment of dues to any financial institution or bank.

(xii) Based on our examination and according to the information and explanation 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.

(xiii) The company is not a Chit/Nidhi/ Mutual Benefit Fund/Society and Clause (xiii) of the Order is not applicable.

(xviii) In our opinion, and according to the information and explanation given to us, there are no dealing or trading in shares, securities, debentures and other investments.

(xix) On the basis of the information and explanation given to us, the company has not given any guarantee for loans taken by others from bank or financial institutions.

(xvi) The term loan taken by the company has been applied for the purpose for which they were raised.

(xxi) On the basis of our examination of the books of accounts and information and explanation given to us, in our opinion, no funds have been raised on short term basis.

(xxii) 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 the Act

(xix) The Company did not have any outstanding debentures during the year.

(xx) The Company has not raised any money by public issues during the year.

(xxi) During the course of our examination of the books of account carried out in accordance with the generally accepted auditing practices in India and according to the information and explanation given to us, we have neither come across any instance of fraud on or by the Company, noticed or reported during the year, nor have we been informed of such case by the management.

For and on behalf of K. J. Shah & Associates Chartered Accountants.

( Kirti J. Shah ) Proprietor Membership No. :- 30784

Place :- Mumbai

Date : 14.08.2006



 
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