Auditor Report of Falcon Tyres Ltd.

Mar 31, 2014

1. We have audited the attached Balance Sheet of Falcon Tyres Limited (the Company) as at 31st March, 2014, the annexed Statement of Profit and Loss for the eighteen months period ended on that date and also the Cash Flow Statement for the period ended on that date which we have signed this day under reference to this report. These financial statements are the responsibility of the Company''s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We have conducted our audit in accordance with the 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 test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes, assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for expressing our opinion.

2. As required by the Companies (Auditor''s Report) Order, 2003 as amended by the Companies (Auditor''s Report) Order 2004 (''the Order''), issued by the Central Government in exercise of the power conferred by section 227 (4A) of the Companies Act, 1956 (the Act) and according to the information and explanations given to us and on the basis of such checks as we considered appropriate, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

3. Further to the above, we report that:

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

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

c) The Company''s balance sheet, statement of profit and loss and cash flow statement dealt with by this report are in agreement with the books of account;

d) In our opinion, the statement of profit and loss balance sheet and cash flow statement comply with the accounting standards referred to in sub section (3C) of section 211 of the Act.;

e) On the basis of written representations received from the Directors and taken on record by the Board, none of such Directors is disqualified as on 31st March, 2014 from being appointed as a Director of the Company under clause (g) of sub section (1) of section 274 of the Act.

f) In our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with the accounting policies and notes thereon give the information required by the Act in the manner so required and give a true and fair view-

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

ii) In the case of the Statement of Profit and loss of the Profit of the Company for the eighteen months period ended on that date; and

iii) In the case of the Cash Flow Statement, of the cash flows of the Company for the period ended on that date.

ANNEXURE TO THE AUDITORS'' REPROT

(Referred to in paragraph 2 of our report of even date)

i) (a) The company is maintaining proper records showing full particulars, including quantitative details and situation of the fixed assets.

(b) These fixed assets have been physically verified by the management in phased manner at reasonable intervals. No material discrepancies were noticed on such verification.

(c) No substantial part of fixed assets has been disposed off during the year.

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

(b) 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) The Company is maintaining proper records of inventory and no material discrepancies were noticed on physical verification.

iii) The Company has neither granted nor taken any loan, secured or unsecured from companies, firms or other parties covered in the register maintained under section 301 of the Act .

iv) There is an 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. There is no major weakness in internal control system.

v) a) The particulars of contracts or arrangements referred to in section 301 of the Act have been entered in the register required to be maintained under that section, and

b) The transactions made in pursuance of such contract or arrangements have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

vi) The Company has not accepted deposits from the public.

vii) The Company has an in-house internal audit system generally commensurate with its size and nature of its business.

viii) Maintenance of cost records has been prescribed by the Central Government under clause (d) of sub-section (1) of section 209 of the Act, and such accounts and records have been made and maintained. We have broadly reviewed such books of accounts.

ix) a) The Company is generally regular in depositing un- disputed Statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income Tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Cess and any other statutory dues with the appropriate authorities.

b) There are no dues of Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess that have not been deposited on account of any dispute.

x) The Company has accumulated losses of Rs.3420.86 lacs at the end of 31st Mar''2014. The Company has not incurred any cash loss in current financial year but has incurred cash losses in the immediately preceding financial year.

xi) Consequent to delay in repayment of dues to bank, the loans of banks are overdue.

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

xiii) The Company is not a chit fund or a nidhi/mutual benefit fund/society.

xiv) The Company is not dealing or trading in shares, securities, debentures and other investments.

xv) The Company has given a corporate guarantee for a loan taken by another company from a bank and the terms and conditions thereof are not prejudicial to the interest of the Company.

xvi) Term loans were generally applied for the purpose for which the loans were obtained.

xvii) The funds raised on short term basis have not been used for long term investments.

xviii) 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 has not issued any debentures.

xx) The Company has not raised money by public issue during the period covered under audit.

xxi) During the course of our examination of books of accounts carried out in accordance with generally accepted auditing practices in India. We have neither come across any fraud on or by the Company nor have we been informed of any such case by the management.

Place: 8/2, K. S. Roy Road For M/S.Gora & Company 2nd Floor, Kolkata-700 001 Chartered Accountants Dated: 29th day of August, 2014 ICAI Firm Registration. No. : 327183E

(G.C. Mukherjee) Partner Membership No: 017630

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Sep 30, 2010

We have audited the attached Balance Sheet of Falcon Tyres Limited (the Company) as at 30th September, 2010, the annexed Profit and Loss Account for the year ended on that date and also the Cash Flow Statement for the year ended on that date which we have signed this day under reference to this report. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

We have conducted our audit in accordance with the 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 test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes, assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for expressing our opinion.

1. As required by the Companies (Auditors Report) Order, 2003 as amended by the Companies (Auditors Report) Order 2004 (‘the Order), issued by the Central Government in exercise of the power conferred by section 227 (4A) of the Companies Act, 1956 (“the Act”) and according to the information and explanation given to us and on the basis of such checks as we considered appropriate, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

2. Further to the above, we report that:

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

b) In our opinion, proper books of account as required by law have been kept by the company so far as appears from our examination of those books;

c) The Companys balance sheet, profit and loss account and cash flow statement dealt with by this report are in agreement with the books of account;

d) In our opinion, the profit and loss account balance sheet and cash flow statement comply with the accounting standards referred to in sub section (3C) of section 211 of the Act.;

e) On the basis of written representations received from the Directors and taken on record by the Board, none of such Directors is disqualified as on 30th September, 2010 from being appointed as a Director of the Company under clause (g) of sub section (1) of section 274 of the Act.

f) In our opinion and to the best of our information and according to the explanation given to us, the said accounts read together with the accounting policies and notes thereon give the information required by the Act in the manner so required and give a true and fair view –

(i) in the case of the Balance sheet, of the state of affairs of the Company as at 30th September, 2010;

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

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

ANNEXURE (referred to in paragraph 1 of our report of even date)

i) a) The Company is maintaining proper records showing full particulars, including quantitative details and situation of the fixed assets.

b) These fixed assets have been physically verified by the management in a phased manner at reasonable intervals. No material discrepancies were noticed on such verification.

c) No substantial part of fixed assets has been disposed off during the year.

ii) a) Physical verification of inventory has been conducted at reasonable intervals by the management

b) The procedure 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) The Company is maintaining proper record of inventory and no material discrepancies were noticed on physical verification.

iii) The Company has neither granted nor taken any loan secured or unsecured from Companies, firms or other Parties covered in the register maintained under section 301 of the Act.

iv) There is an 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. There is not major weakness in internal control system.

v) a) The particulars of contracts or arrangements referred to in section 301 of the Act have been entered in the register required to be maintained under that section.

b) The transactions made in pursuance of such contract or arrangement have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

vi) The Company has not accepted deposits from the public.

vii) The Company has an in-house internal audit system generally commensurate with its size and nature of its business.

viii) The maintenance of cost records has been prescribed by the Central Government under clause (d) of sub-section (1) of section 209 of the Act, and such accounts and records have been made and maintained. We have broadly reviewed such books of accounts.

ix) a) The Company is generally regular in depositing un-disputed Statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income Tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Cess and any other statutory dues with the appropriate authorities.

x) The Company has no accumulated Losses at the end of the financial year and has not incurred Cash Losses in such financial ear and in the immediately preceding financial year.

xi) The Company has not defaulted in repayment of dues to Banks.

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

xiii) The Company is not a Chit fund or a Nidhi/Mutual benefit fund/Society.

xiv) The Company is not dealing or trading in shares, securities, debentures and other investments.

xv) The Company has given a corporate guarantee and the terms and conditions whereof are not prejudicial to the Company.

xvi) Term Loans were applied for the purpose for which the loans were obtained.

xvii) The funds raised on short term basis have not been used for long term investments.

xviii) 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 has not issued any debentures.

xx) The Company has not raised money by public issue.

xxi) During the course of our examination of books of accounts carried out in accordance with generally accepted auditing practices in India, we have neither come across any fraud on or by the Company nor have we been informed of any such case by the management.

For K.N. Gutgutia & Co.

Chartered Accountants Kolkata

12th November, 2010 Subhasish Pore

Partner Membership No.055862