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Auditor Report of Filatex India Ltd.

Mar 31, 2015

Report on the Financial Statements

1. We have audited the accompanying financial statements of Filatex India Limited ("the Company"), which comprise the Balance Sheet as at March 31,2015, the Statement of Profit and Loss, 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

2. 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 to 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 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

3. Our responsibility is to express an opinion on these financial statements based on our audit.

4. We have taken into account the provisions of the Act and the Rules made thereunder including the accounting standards and matters which are required to be included in the audit report.

5. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those Standards and pronouncements 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.

6. 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, 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 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.

7. 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

8. 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 subject to:- In terms of the Notification No.G.S.R. 225(E) dated March 31, 2009 as amended till date by the Ministry of Corporate Affairs (MCA) on Accounting Standard (AS-11), the Company had exercised option to adjust the foreign exchange difference on long term foreign currency loans ( foreign currency loans obtained under buyers credit with maturity of less than one year and considered as long term liabilities, as the same are to be rolled over for a period of three years from the date of origination) to the cost of qualifying capital assets. Accordingly, the company has added Rs. 17.82 lacs for the year ended March 31, 2015 on account of foreign exchange difference to the cost of qualifying assets and charged depreciation of Rs 0.81 lacs for the year ended March 31,2015, consequently profit for the year would have been lower by Rs 17.01 lac. Further the company has received letter dated 26th December, 2014 from National Stock Exchange (NSE) advising the company to restate its Financial Statements for the financial year 2012-13 subsequent to our qualification relating to treatment of foreign exchange difference during FY 2012-13. The company has taken up the matter with NSE/SEBI to explain and substantiate the accounting treatment by the company. Pending personal hearing allowed by SEBl, the company has not given any effect of the qualification in the financial statements. Impact will be accounted for on receipt of final decision in the matter, give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2015, and its profit and its cash flows for the year ended on that date. Report on Other Legal and Regulatory Requirements

9. As required by 'the Companies (Auditor's Report) Order, 2015', issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act (hereinafter referred to as the "Order"), and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order.

10. 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 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 the 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 knowledge and belief and according to the information and explanations given to us:

i) The Company has disclosed the impact, if any, of pending litigations as at March 31, 2015, on its financial position in its financial statements - Refer note 30;

ii) The Company has made provision as at March 31,2015, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts.

iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year ended March 31, 2015

Annexure to Independent Auditor's Report

Referred to in paragraph 9 of the Independent Auditors' Report of even date to the members of Filatex India Limited on the financial statements as of and for the year ended March 31, 2015

1. (a) The Company is maintaining proper records showing full particulars, including quantitative details and situation, of fixed assets. (b) The fixed assets have been physically verified by the management during the year in a phased manner and no material discrepancies have been noticed on such verification. In our opinion, the frequency of physical verification of fixed assets is reasonable having regard to the size of the Company and the nature of its assets.

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

(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 in inventory were noticed on physical verification.

3. 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. Therefore, the provisions of Clause 3(iii), (iii)(a) and (iii)(b) of the said Order are not applicable to the Company.

4. In our opinion, and according to the information and explanations given to us, 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 and services. Further, on the basis of our examination of the books and records of the Company, and according to the information and explanations given to us, we have neither come across, nor have been informed of, any continuing failure to correct major weaknesses in the aforesaid internal control system.

5. The Company has not accepted any deposits from the public within the directives issued by the Reserve Bank of India and the provisions of section 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules framed there under.

6. We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Govt, for the maintenance of Cost Records under sub section 1 of section 148 of the Companies Act, 2013 and are of the opinion that prima facie the prescribed accounts and records have been maintained. We have however, not made a detailed examination of these records.

7. (a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is regular in depositing the undisputed statutory dues, including provident fund, employees' state insurance, income tax, sales tax, wealth tax, service tax, duty of customs, duty of excise, value added tax, cess and other material statutory dues, as applicable, with the appropriate authorities.

(b) According to the information and explanations given to us and the records of the Company examined by us, the dues outstanding of income-tax, wealth-tax, sales tax, service-tax, duty of customs, duty of excise, value added tax and cess which have not been deposited on account of any dispute as at March 31, 2015 are stated below:-

Sl. Name of the Statute Nature of Dues Amt No (Rs/lacs)

1 Central Excise Act, 1944. NCCD on Deemed Exports. 2.76

2 Central Excise Act, 1944. NCCD against CENVAT of 453.12 basic excise duty

3 Central Excise Act, 1944. Demand towards adjustments 21.68 of NCCD against CENVAT credit of Basic Excise Duty.

4 Central Excise Act, 1944. Credit of Service Tax availed 0.21 on courier service.

5 Central Excise Act, 1944. Credit of Service Tax availed 1.68 on Courier Services, GPA, Group Mediclaim and Vehicle insurance

6 Central Excise Act, 1944. Demand for sale of Grey 603.52 Knitted fabrics from the premises of various job workers.

7 Central Excise Act, 1944. Cenvat Credit of capital goods 5.19

8 Central Excise Act, 1944. Excess credit availed on goods 35.99 supplied to 100% EOUs

9 Central Excise Act, 1944. Credit of Capital goods 4.83 availed on Channels, Angles etc. for the year 2009-10 and 2010-11

10 Central Excise Act, 1944. Credit of Service tax availed 2.77 on the invoices issued in the name of Branch offices for the year 2010-11, 2011-12 & 2012-13

11 Central Excise Act, 1944. Demand of Service Tax credit 15.31 availed on Sales Commission for the years 2009-10 & 2010-11

12 Central Excise Act, 1944. Cenvat credit of service tax 0.69 availed on invoices issued in the name of banch office for the period from Nov.-2012 to March.-2013

13 Central Excise Act, 1944. Demand for Cenvat credit 0.10 of service tax availed on invoices issued in the name of branch office for the period from Nov-2012 to March.-2013

14 Central Excise Act, 1944. Demand of Ex. duty 13.99 on Polyester FDY Yarn transferred to NWF on transaction value instead of CAS-04 for the period from April-2009 to April-2012

15 Central Excise Act, 1944. Cenvat credit of service tax 0.17 availed on courier service for the period from Oct. -2013 to oct.-2014

16 Customs Act, 1962. Differential duty on import of 14.54 chips

17 Customs Act, 1962. Co-Party made with a 15.00 customer for discrepancies in compliance of export obligation by customer.

18 Customs Act, 1962. Demand due to non receipt of 4.81 Warehouse Certificate

19 Customs Act, 1962. Fraudulent availment of 8.64 DEPB credit by M/s Shivam Overseas, Ludhiana by resorting to overvaluation of their exported goods

20 Income tax Act 1961. Penalty on Income Tax 33.37

Name of the Statute Period to Forum where Which it relates Dispute is pending

Central Excise Act, 1944 From July to Nov. 2004 Commissioner of Central Excise (Appeals), Vapi

Central Excise Act, 1944 From March 2006 to The Commissioner. February 2008. Central Excise & Customs, Vapi

Central Excise Act, 1944 February, 2008 The Jt. Commissioner. Central Excise & Customs, Vapi

Central Excise Act, 1944 FY's 2005-06 & 2006-07 The Asst. Commissioner of Central Excise, Silvassa.

Central Excise Act, 1944 FY's 2007-08 to 2011-12 The Deputy Commissioner of Central Excies, Silvassa

Central Excise Act, 1944 FY 2008-09 CESTAT, WZB. Ahmedabad

Central Excise Act, 1944 FY's 2007-08 & 2008-09 CESTAT WZB, Ahmedabad

Central Excise Act, 1944 FY 2007-08 Commissioner (Appeals) C.E., Vapi

Central Excise Act, 1944 FY's 2009-10 & 2010-11 CESTAT, WZB, Ahmedabad

Central Excise Act, 1944 FY's 2010-11 to 2012-13 CESTAT, WZB, Ahmedabad

Central Excise Act, 1944 FY's 2009-10 & 2010-11 The Addl. Commissioner, Central Excise, Customs & Service Tax, Vapi

Central Excise Act, 1944 From Nov. 2012 To Commissioner (Appeals) Mar. 2013 C.E., Vapi

Central Excise Act, 1944 From Nov-2012 to The Superintendent, March 2013 Central Excise, Customs & Service Tax,Range-IV, Div.-I, Silvassa

Central Excise Act, 1944 From Apr.-2009 to Apr-2012 The Jt. Commissioner, Central Excise, Customs & Service Tax, Vapi

Central Excise Act, 1944 From Oct.-2013 to The Superintendent, Oct.-2014 Central Excise, Customs & Service Tax,Range-IV, Div.-I, Silvassa

Customs Act, 1962 December, 2007 Asst. Commissioner of Customs, Group II, E&B, JNCH, Navi Mumbai.

Customs Act, 1962 April, 2007 CESTAT, Western Zone, Ahmedabad.

Customs Act, 1962 June, 2005 CESTAT, Western Zone, Ahmedabad.

Customs Act, 1962 March 2005 The Commissioner of Customs (EP), New Custom House, Ballard Estate, Mumbai

Income tax Act, 1961 AY 2001-02 To 2005-06 Commissioner of Income Tax (Appeals)

(c) The amount required to be transferred to Investor Education and Protection Fund has been transferred within the stipulated time in accordance with the provisions of the Companies Act, 1956 and the rules made thereunder.

8. The Company has no accumulated losses as at the end of the financial year and it has not incurred any cash losses in the financial year ended on that date or in the immediately preceding financial year.

9. According to the records of the Company examined by us and the information and explanation given to us, the Company has not defaulted in repayment of dues to any financial institution or bank or debenture holders as at the balance sheet date.

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

11. Based on the audit procedures applied by us & according to the information & explanations provided by the management, the term loans taken by the company during the year have been applied for the purpose for which the loans were obtained.

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

For AMOD AGRAWAL & ASSOCIATES

Firm Registration No.005780N

Chartered Accountants

Place : New Delhi AMOD AGRAWAL

Date : May 4, 2015 PARTNER

Membership No. 084175


Mar 31, 2013

Report on the Financial Statements

We have audited the accompanying financial statements of Filatex India Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2013, and the Statement of Profit and Loss and 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

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

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s 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. 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 financial statements give the information required by the Act in the manner so required and subject to:- In terms of the Notification No.G.S.R. 225(E) dated March 31, 2009 as amended till date by the Ministry of Corporate Affairs (MCA) on Accounting Standard (AS-11), the Company had exercised option to adjust the foreign exchange difference on long term foreign currency loans (including foreign currency loans obtained under buyers credit with maturity of less than one year and considered as long term liabilities, as the same are to be rolled over for a period of three years from the date of origination) to the cost of qualifying capital assets. Accordingly, the company has added Rs.852.02 lacs for the year ended March 31,2013 on account of foreign exchange difference to the cost of qualifying assets and charged depreciation of Rs 43.47 lacs for the year ended March 31,2013, consequently profit for the year would have been lower by Rs 808.55 lacs, 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,2013

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

c) In the case of the Cash Flow Statement, of the cash flows for the year ended as 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 purpose of our audit;

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

c) the Balance Sheet, and 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 Balance Sheet, and Statement of Profit and Loss and Cash Flow Statement comply with the Accounting Standards referred to in subsection (3C) of section 211 of the Companies Act, 1956;

e) on the basis of written representations received from the directors as on March 31, 2013, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2013, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

f) Since the Central Government has not issued any notification as to the rate at which the cess is to be paid under section 441A of the Companies Act, 1956 nor has it issued any Rules under the said section, prescribing the manner in which such cess is to be paid, no cess is due and payable by the Company.

Annexure Independent Auditor''s Report

Referred to in paragraph (1) under the heading of "Report on Other Legal and Regulatory Requirements" our report of even date- Filatex India Limited

1. a) The Company has maintained proper records to show full particulars, including quantitative details and situation of fixed assets.

b) The fixed assets have been physically verified by the management during the year in a phased manner and no material discrepancies have been noticed on such verification. In our opinion, the frequency of physical verification of fixed assets is reasonable having regard to the size of the Company and the nature of its assets.

c) The company has not disposed off substantial part of fixed assets during the year and going concern status of the company is not affected.

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

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 in inventory were noticed on physical verification.

3. a) According to the information & explanations given to us the company has taken unsecured loan from one party covered under section 301 of the Companies Act 1956. The amount outstanding as on 31.03.2013 was nil & the maximum amount outstanding during the year was Rs. 103.00 lac.

b) According to information and explanations given to us, the Company has not granted any loans, secured or unsecured to parties covered in the register maintained under section 301 of the Companies Act, 1956. Hence our comments on para (iii)(a) to (iii)(d) are not applicable.

4. In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business, for the purchase of inventory and fixed assets and for the sale of goods. There are no transactions in respect of sale of services during the year. Accordingly the issue of continuing failure to correct major weakness in internal control in these areas does not apply.

5. According to the information and explanations provided by the management, there are no transactions that need to be entered in the register maintained under section 301 of the Companies Act, 1956.

6. The Company has not accepted any deposits from the public within the meaning of section 58A & 58AA of the Companies Act, 1956 and the rules made thereunder.

7. In our opinion, the Company has an internal audit system commensurate with the size and nature of its business.

8. We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Govt. for the maintenance of Cost Records under section 209(1)(d) of the Companies Act, 1956 and are of the opinion that prima facie the prescribed accounts and records have been maintained. We have however, not made a detailed examination of these records.

9. a) According to the records of the Company, the Company is generally regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees'' State Insurance, Income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise Duty, Service Tax, Cess and other statutory dues applicable to it with the appropriate authorities.

b) According to the information and explanations given to us there are no undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales Tax, Service Tax, Custom duty and Excise duty outstanding as at 31st March, 2013 for a period of more than six months from the date they became payable.

c) According to the records of the company, there are no dues of wealth tax and cess, which have not been deposited on account of any dispute. Dues towards excise & customs duties, sales tax, VAT, service tax and income tax that have not been deposited on account of dispute are stated below:

Sl. Nature of Dues Amt Period to Forum where No (Rs/lacs) which it relates dispute is pending

1 NCCD on Deemed Exports 98.24 July, 2003 to Central Excise & Service Tax Appellate Tribunal, & Job Work. June, 2004 Western Zone, Ahmedabad.

2 NCCD on Deemed Exports. 2.76 July to Nov. 2004 Commissioner of Central Excise (Appeals), Vapi 3 Differential duty on import of chips 14.54 December, 2007 Asst. Commissioner of Customs, Group II, E&B, JNCH, Navi Mumbai.

4 Co-Party made with a customer 15.00 April, 2007 CESTAT, Western Zone, Ahmedabad. for discrepancies in compliance of export obligation by customer.

5 Estimation of sales value of Yarn 174.11 FY 2002-03 Supreme Court.

10. The Company has no accumulated losses at the end of the financial year. It has not incurred cash losses during the year under report and immediately preceding financial year.

11. Based on our audit procedures and according to the information and explanations given by the management, we are of the opinion that the company has not defaulted in repayment of dues to Financial institutions or banks.

12. According to the information and explanations given to us and based on the documents and records produced 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. In our opinion and according to the information and explanations given to us, the nature of activities of the Company does not attract any special statute applicable to chit fund, nidhi / mutual benefit fund and societies.

14. The company has not dealt/traded in shares, securities and debentures during the year.

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

16. Based on the audit procedures applied by us & according to the information & explanations provided by the management, the term loans taken by the company during the year have been applied for the purpose for which the loans were obtained.

17. According to the information and explanation given to us and on the basis of overall examination of the Balance Sheet of the company, we report that the funds amounting to Rs.2811.92 lacs raised on short term have been used for long term investment.

18. The company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act 1956.

19. During the period covered under our audit report, the Company has not issued any debentures. Therefore the provisions of clause 4(xix) of the Companies (Auditor''s Report) Order, 2003 are not applicable to the Company.

20. The Company has not raised any money through a public issue during the year.

21. Based upon the audit procedures performed by us for expressing our opinion on these financial statements and information & explanations given by the management, we report that no fraud on or by the Company has been noticed or reported during the course of our audit that causes the financial statement to be materially misstated.

For AMOD AGRAWAL & ASSOCIATES

Firm Registration No.005780N

Chartered Accountants

Place : New Delhi AMOD AGRAWAL

Date : May 29, 2013 PARTNER

Membership No. 84175


Mar 31, 2012

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

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

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

4. The company has adjusted the exchange loss of Rs. 7.58 lacs on foreign currency loans for less than 12 months and considered as long term foreign currency loans, relating to acquisition of capital assets, as the management intends to roll over the same for a period of up to three years, to the cost of qualifying depreciable assets. Had the exchange loss been charged to statement of Profit & Loss, the profit for the year would have been lower by Rs.7.57 lacs, fixed assets would have been lower by Rs. 7.58 lacs and reserve & surplus would have been lower by Rs. 7.57 lacs.

5. Further to our comments in the Annexure referred to in para 3 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 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 appears from our examination of those books;

(c) The Balance sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this report are in agreement with the books of account;

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

(e) 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 none of the directors is disqualified as on March 31, 2012 from being appointed as a director in terms of section 274(1) (g) of Companies Act, 1956.

(f) In our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with the significant accounting policies and other notes to financial statements, subject to qualification in para 4 above, 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:

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

ii) In the case of the Statement of Profit and Loss, 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 for the year ended on that date.

Annexure referred to in paragraph (3) of our report of even date

1. a) The Company has maintained proper records to show full particulars, including quantitative details and situation of fixed assets.

b) The fixed assets have been physically verified by the management during the year in a phased manner and no material discrepancies have been noticed on such verification. In our opinion, the frequency of physical verification of fixed assets is reasonable having regard to the size of the Company and the nature of its assets.

c) The company has not disposed off substantial part of fixed assets during the year and going concern status of the company is not affected.

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

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 in inventory were noticed on physical verification.

3. According to information and explanations given to us, the Company has not granted or taken any loan, secured or unsecured to / from any party covered in the register maintained Under section 301 of the Companies Act, 1956. Hence our comments on para (iii)(a) to (iii)(d) are not applicable.

4. In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business, for the purchase of inventory and fixed assets and for the sale of goods. There are no transactions in respect of sale of services during the year. Accordingly the issue of continuing failure to correct major weakness in internal control in these areas does not apply.

5. According to the information and explanations provided by the management, there are no transactions that need to be entered in the register maintained under section 301 of the Companies Act, 1956.

6. The Company has not accepted any deposits from the public within the meaning of section 58A & 58AA of the Companies Act, 1956 and the rules made thereunder.

7. In our opinion, the Company has an internal audit system commensurate with the size and nature of its business.

8. We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Govt. for the maintenance of Cost Records under section 209(1)(d) of the Companies Act, 1956 and are of the opinion that prima facie the prescribed accounts and records have been maintained. We have however, not made a detailed examination of these records.

9. a) According to the records of the Company, the Company is generally regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees' State Insurance, Income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise Duty, Service Tax, Cess and other statutory dues applicable to it with the appropriate authorities.

b) According to the information and explanations given to us there are no undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales Tax, Service Tax, Custom duty and Excise duty outstanding as at 31st March, 2012 for a period of more than six months from the date they became payable.

c) According to the records of the company, there are no dues of wealth tax and cess, which have not been deposited on account of any dispute. Dues towards excise & customs duties, sales tax, VAT, service tax and income tax that have not been deposited on account of dispute are stated below:

Sl. Nature of Dues Amt Period to Forum where No (Rs/ lacs) which it relates dispute is pending

1 NCCD on Deemed Exports 98.24 July, 2003 to Central Excise & Service Tax Appellate Tribunal,

& Job Work. June, 2004 Western Zone, Ahmedabad.

2 NCCD on Deemed Exports. 2.76 July to Nov. 2004 Commissioner of Central Excise (Appeals), Vapi 3 Sales Tax 18.16 FY 2002-03 Appallete Tribunal, Noida(UP)

4 Differential duty on import of chips 14.54 December, 2007 Asst. Commissioner of Customs, Group II, E&B, JNCH, Navi Mumbai.

5 Co-Party made with a customer 15.00 April, 2007 CESTAT, Western Zone, Ahmedabad. for discrepancies in compliance of export obligation by customer.

6 Estimation of sales value of Yarn 174.22 FY 2002-03 Supreme Court.

7 Demand on non receipt of 4.81 June, 2005 Jt. Commissioner, Central Excise & Customs, Vapi. Warehouse Certificate

8 Sales Tax 0.32 FY 2003-04 Jt. Commissioner (Appeals), Sales Tax

9 NCCD against CENVAT of 453.12 March 2006 to The Commissioner, Central Excise & Customs, Vapi basic excise duty February 2008.

10 Penalty under Rule 209A of the 0.50 FY 2005-06 The Asst. Commissioner, Customs, Group II, C&D, CE Rules 1994. JNCH, Navi Mumbai.

11 Demand towards adjustments of 21.68 February, 2008 The Jt. Commissioner, Central Excise & Customs, NCCD against CENVAT credit of Vapi Basic Excise Duty.

12 Credit of Service Tax availed on 0.21 2005-06 & 2006-07 The Asst. Commissioner of Central Excise, Silvassa. courier service.

13 Cenvat availed on photocopy of 0.47 FY 2008-09 The Asst. Commissioner of Central Excise, Noida. Bill of Entry

14 Remittance of Excise Duty on fire 3.36 FY 2008-09 The Asst. Commissioner of Central Excise, Noida.

15 Income Tax demand on account 33.37 AYs 2001-02 Income Tax Appellate Tribunal, Delhi. of additions To 2005-06

16 Penalty on Income Tax demand 33.37 AYs 2001-02 Commissioner of Income Tax (Appeals) To 2005-06

17 Income Tax demand on account 2.20 AY 2008-09 Commissioner of Income Tax (Appeals) of additions

18 Demand for sale of Grey Knitted 623.52 FY 2008-09 CESTAT, WZB, Ahmedabad fabrics from the premises of various job workers.

19. Cenvat credit of capital goods 2.84 2007-08 & The Asst. Commissioner of Central Excise, Silvassa. 2008-09

20. Excess credit availed on goods 14.80 FY 2007-08 & The Addl. Commissioner of Central Excise, Silvassa. supplied to 100% EOUs 2008-09

10. The Company has no accumulated losses at the end of the financial year. It has not incurred cash losses during the year under report and immediately preceding financial year.

11. Based on our audit procedures and according to the information and explanations given by the management, we are of the opinion that the company has not defaulted in repayment of dues to financial institutions or banks.

12. According to the information and explanations given to us and based on the documents and records produced 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. In our opinion and according to the information and explanations given to us, the nature of activities of the company does not attract any special statute applicable to chit fund, nidhi / mutual benefit fund and societies.

14. The company has not dealt/traded in shares, securities and debentures during the year.

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

16. Based on the audit procedures applied by us & according to the information & explanations provided by the management, the term loans taken by the company during the year have been applied for the purpose for which the loans were obtained.

17. According to the information and explanation given to us and on the basis of overall examination of the Balance Sheet of the company, in our opinion, no short term funds have been used for long term uses, during the year under our report.

18. During the year the company has made preferential allotment of shares to the parties covered in the register maintained under section 301 of the Companies Act, 1956 upon conversion of convertible warrants issued in earlier years. In our opinion the price at which shares are allotted against warrants is not prejudicial to the interest of the company.

19. During the period covered under our audit report, the company has not issued any debentures.

Therefore the provisions of clause 4(xix) of the Companies (Auditor's Report) Order, 2003 are not applicable to the Company.

20. The Company has not raised any money through a public issue during the year.

21. Based upon the audit procedures performed by us for expressing our opinion on these financial statements and information & explanations given by the management, we report that no fraud on or by the Company has been noticed or reported during the course of our audit that causes the financial statement to be materially misstated.

For AMOD AGRAWAL & ASSOCIATES

Firm Registration No.005780N Chartered Accountants

Place : New Delhi VIRENDRA KUMAR

Date : 29.05.2012 PARTNER

Membership No. 85380








Mar 31, 2011

1. We have audited the attached Balance Sheet of Filatex India Limited as at March 31, 2011 and also the Profit and Loss Account and the Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

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 mis-statement. 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 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 paragraphs 4 and 5 of the said order.

4. Further to our comments in the Annexure referred to in para 3 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 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 appears from our examination of those books;

(c) The Balance sheet, Profit and Loss account and Cash Flow Statement dealt with by this report are in agreement with the books of account;

(d) In our opinion, the Balance Sheet, Profit and Loss account and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in Section 211 (3C) of the Companies Act, 1956,

(e) On the basis of written representations received from the directors, as on March 31, 2011, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on March 31, 2011 from being appointed as a director in terms of section 274(1) (g) of Companies Act, 1956.

(f) In our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with the significant accounting policies and other notes thereon in Schedule No.22, 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:

i) In the case of Balance Sheet, of the state of the affairs of the Company, as at March 31, 2011.

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 for the year ended on that date.

Annexure referred to in paragraph (3) of our report of even date

1. a) The Company has maintained proper records to show full particulars, including quantitative details and situation of fixed assets.

b) The fixed assets have been physically verified by the management during the year in a phased manner and no material discrepancies have been noticed on such verification. In our opinion, the frequency of physical verification of fixed assets is reasonable having regard to the size of the Company and the nature of its assets.

c) The company has not disposed off substantial part of fixed assets during the year and going concern status of the company is not affected.

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

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 in inventory were noticed on physical verification.

3. a) As informed to us, the Company has not granted any loan, secured or unsecured to companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956.

b) As informed to us, the company has not taken secured or unsecured loan from the companies, firm or other parties covered in the register maintained u/s 301 of the Companies Act, 1956.

4. In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business, for the purchase of inventory and fixed assets and for the sale of goods. There are no transactions in respect of sale of services during the year. Accordingly the issue of continuing failure to correct major weakness in internal control in these areas does not apply.

5. According to the information and explanations provided by the management, there are no transactions that need to be entered in the register maintained under section 301 of the Companies Act, 1956.

6. The Company has not accepted any deposits from the public within the meaning of section 58A & 58AA of the Companies Act, 1956 and the rules made thereunder.

7. In our opinion, the Company has an internal audit system commensurate with the size and nature of its business.

8. We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Govt. for the maintenance of Cost Records under section 209(1)(d) of the Companies Act, 1956 and are of the opinion that prima facie the prescribed accounts and records have been maintained. We have however, not made a detailed examination of these records.

9. a) According to the records of the Company, the Company is generally regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise Duty, Service Tax, Cess and other statutory dues applicable to it with the appropriate authorities.

b) According to the information and explanations given to us there are no undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales Tax, Service Tax, Custom duty and Excise duty outstanding as at 31st March, 2011 for a period of more than six months from the date they became payable.

c) According to the records of the company, there are no dues of wealth tax and cess, which have not been deposited on account of any dispute. Dues towards excise & customs duties, sales tax, VAT, service tax and income tax that have not been deposited on account of dispute are stated below:

Sl. Nature of Dues Amt Period to No. (Rs./Lacs) Which it relates

1 NCCD on Deemed Exports 98.24 July, 2003 to & Job Work. June, 2004

2 NCCD on Deemed Exports. 2.76 July to Nov.2004

3 Sales Tax 18.16 FY 2002-03

4 Differential duty on 14.54 December, 2007 import of chips

5 Co-Party made with a customer 15.00 April, 2007 for discrepancies in compliance of export obligation by customer.

6 Estimation of Sales value of Yarn 174.22 FY 2002-03

7 Demand on Non Receipt of 4.81 June, 2005 Warehouse Certificate

8 Sales Tax 0.32 FY 2003-04

9 NCCD against CENVAT of 453.12 March 2006 to basic excise duty February 2008.

10 Penalty under Rule 209A of the 0.50 FY 2005-06 CE Rules 1994.

11 Demand towards adjustments of 21.68 February, 2008 NCCD against CENVAT credit of Basic Excise Duty.

12 Credit of Service Tax availed on 0.21 2005-06 & 2006-07 courier service.

13 Cenvat availed on photocopy of 0.47 FY 2008-09 Bill of Entry

14 Remittance of Excise Duty on Fire 3.36 FY 2008-09

15 Income Tax Demand on account 33.37 AYs 2001-02 of additions To 2005-06

16 Penalty on Income Tax Demand 33.37 AYs 2001-02 To 2005-06

17 Income Tax Demand on account 2.20 AY 2008-09 of additions

Sl. Forum where No. Dispute is pending

1 Central Excise & Service Tax Appellate Tribunal, Western Zone, Ahmedabad.

2 Commissioner of Central Excise (Appeals), Vapi

3 Appallete Tribunal,Noida(UP)

4 Asst. Commissioner of Customs, Group II, E&B, JNCH, Navi Mumbai.

5 CESTAT, Western Zone, Ahmedabad.

6 Supreme Court.

7 Jt. Commissioner, Central Excise & Customs, Vapi.

8 Jt. Commissioner (Appeals), Sales Tax

9 The Commissioner, Central Excise & Customs, Vapi

10 The Asst. Commissioner, Customs, Group II, C&D, JNCH, Navi Mumbai.

11 The Jt. Commissioner, Central Excise & Customs,Vapi

12 The Asst. Commissioner of Central Excise, Silvassa.

13 The Asst. Commissioner of Central Excise, Noida.

14 The Asst. Commissioner of Central Excise, Noida.

15 Income Tax Appellate Tribunal, Delhi.

16 Commissioner of Income Tax (Appeals)

17 Commissioner of Income Tax (Appeals)

10. The Company has no accumulated losses at the end of the financial year. It has not incurred cash losses during the year under report and immediately preceding financial year.

11. Based on our audit procedures and according to the information and explanations given by the management, we are of the opinion that the company has not defaulted in repayment of dues to financial institutions or banks.

12. According to the information and explanations given to us and based on the documents and records produced 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. In our opinion and according to the information and explanations given to us, the nature of activities of the Company does not attract any special statute applicable to chit fund, nidhi / mutual benefit fund and societies.

14. The company has not dealt/traded in shares, securities and debentures during the year.

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

16. Based on the audit procedures applied by us and according to the information & explanations provided by the management, the term loans taken by the company during the year have been applied for the purpose for which the loans were obtained.

17. According to the information and explanation given to us and on the basis of overall examination of the Balance Sheet of the company, in our opinion, no short term funds have been used for long term uses, during the year under our report.

18. During the year, the company has not made any preferential allotment of shares. However, the company has made preferential allotment of convertible warrants to the parties covered in the register maintained under section 301 of the Companies Act, 1956. In our opinion, the price at which shares are to be issued against warrants is not prejudicial to the interest of the company

19. During the period covered under our audit report, the Company has not issued any debentures.

Therefore, the provisions of clause 4(xix) of the Companies (Auditors Report) Order, 2003 are not applicable to the Company.

20. The Company has not raised any money through a public issue during the year.

21. Based upon the audit procedures performed by us for expressing our opinion on these financial statements and information & explanations given by the management, we report that no fraud on or by the Company has been noticed or reported during the course of our audit that causes the financial statement to be materially misstated.

For AMOD AGRAWAL & ASSOCIATES Chartered Accountants

AMOD AGRAWAL Partner Membership No. 84175 FR No.005780N

Place : New Delhi Date : 30.04.2011


Mar 31, 2010

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

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 mis-statement. 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 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 paragraphs 4 and 5 of the said order.

4. Further to our comments in the Annexure referred to in para 3 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 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 appears from our examination of those books;

(c) The Balance sheet, Profit and Loss account and Cash Flow Statement dealt with by this report are in agreement with the books of account;

(d) In our opinion, the Balance Sheet, Profit and Loss account and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in Section 211 (3C) of the Companies Act, 1956,

(e) 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 none of the directors is disqualified as on March 31, 2010 from being appointed as a director in terms of section 274(1) (g) of Companies Act, 1956.

(f) In our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with the significant accounting policies and other notes thereon in Schedule No.22, 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:

i) In the case of Balance Sheet, of the state of the affairs of the Company, as at March 31, 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 for the year ended on that date.

Annexure referred to in paragraph (3) of our report of even date

1. a) The Company has maintained proper records to show full particulars, including quantitative details and situation of fixed assets.

b) The fixed assets have been physically verified by the management during the year in a phased manner and no material discrepancies have been noticed on such verification. In our opinion, the frequency of physical verification of fixed assets is reasonable having regard to the size of the Company and the nature of its assets.

c) The company has not disposed off substantial part of fixed assets during the year and going concern status of the company is not affected.

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

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 in inventory were noticed on physical verification.

3. a) As informed to us, the Company has not granted any loan, secured or unsecured to companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956.

b) According to the information and explanations given to us, the company has taken unsecured loan from a party covered in the register maintained u/s 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs.535.00 lacs and the year end balance of the loan taken from such party was Rs.Nil. In our opinion, the rate of interest and other terms & conditions are not prima facie prejudicial to the interest of the company. There is no overdue amount as the loan was payable on demand.

4. In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business, for the purchase of inventory and fixed assets and for the sale of goods. There are no transactions in respect of sale of services during the year. Accordingly the issue of continuing failure to correct major weakness in internal control in these areas does not apply.

5. According to the information and explanations provided by the management, there are no transactions that need to be entered in the register maintained under section 301 of the Companies Act, 1956.

6. The Company has not accepted any deposits from the public within the meaning of section 58A & 58AA of the Companies Act, 1956 and the rules made thereunder.

7. In our opinion, the Company has an internal audit system commensurate with the size and nature of its business.

8. We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Govt. for the maintenance of Cost Records under section 209(1)(d) of the Companies Act, 1956 and are of the opinion that prima facie the prescribed accounts and records have been maintained. We have however, not made a detailed examination of these records.

9. a) According to the records of the Company, the Company is generally regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise Duty, Service Tax, Cess and other statutory dues applicable to it with the appropriate authorities.

b) According to the information and explanations given to us there are no undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales Tax, Service Tax, Custom duty and Excise duty outstanding as at 31st March, 2010 for a period of more than six months from the date they became payable.

c) According to the records of the company, there are no dues of wealth tax and cess, which have not been deposited on account of any dispute. Dues towards excise & customs duties, sales tax, service tax and income tax that have not been deposited on account of dispute are stated below:

Sl. Nature of Dues Amount Period to

No. (Rs/lacs) which it relates

1 NCCD on Deemed Exports & Job 98.24 July, 2003 to Work. June, 2004

2 NCCD on Deemed Exports. 2.76 July to Nov. 2004

3 Sales Tax FY 2002-03

18.16

4 Differential duty on import of chips December, 2007

14.54

5 Co-Party made with a customer for April, 2007

15.00

discrepancies in compliance of export obligation by customer.

174.22

6 Estimation of Sales value of Yarn FY 2002-03

7 Demand on Non Receipt of 4.81 June, 2005

Warehouse Certificate

8 Sales Tax 0.32 FY 2003-04

9 NCCD against CENVAT of basic 500.87 March 2006

to excise duty February 2008.

10 Penalty under Rule 209A of the CE FY 2005-06

0.50

Rules 1994.

11 Demand towards adjustments of February, 2008

21.68

NCCD against CENVAT credit of

Basic Excise Duty.

12 Credit of Service Tax availed on 2005-06 & 206-07

0.21

courier service.

13 Undue availment of DEPB Credit FY 2009-10

26.14

Nature of Dues Forum where Dispute is pending

NCCD on Deemed Exports & Job Work. Central Excise & Service Tax Appellate Tribunal, Western Zone, Ahmedabad.

NCCD on Deemed Exports. Commissioner of Central Excise (Appeals), Vapi

Sales Tax Appallete Tribunal, Noida(UP)

Differential duty on import of chips Asst. Commissioner of Customs, Group II, E&B, JNCH, Navi Mumbai.

Co-Party made with a customer for discrepancies in compliance of export obligation by customer. CESTAT, Western Zone, Ahmedabad.

Estimation of Sales value of Yarn Supreme Court.

Demand on Non Receipt of Warehouse Certificate Jt. Commissioner, Central Excise & Customs, Vapi.

Sales Tax Jt. Commissioner (Appeals), Sales Tax

NCCD against CENVAT of basic excise duty The Commissioner, Central Excise & Customs, Vapi

Penalty under Rule 209A of the CE Rules 1994. The Asst. Commissioner, Customs, Group II, C&D, JNCH Navi Mumbai.

Demand towards adjustments of NCCD against CENVAT credit of Basic Excise Duty. The Jt. Commissioner, Central Excise & Customs, Vapi

redit of Ser vice Tax ava iled on cour ier service. The Asst. Commissioner of Central Excise, Silvassa.

Undue avail ment of DEPB Credit Commissioner of Customs (Exports), Nhava Sheva

10. The Company has no accumulated losses at the end of the financial year. It has not incurred cash losses during the year under report and immediately preceding financial year.

11. Based on our audit procedures and according to the information and explanations given by the management, we are of the opinion that the company has not defaulted in repayment of dues to financial institutions or banks.

12. According to the information and explanations given to us and based on the documents and records produced 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. In our opinion and according to the information and explanations given to us, the nature of activities of the Company does not attract any special statute applicable to chit fund, nidhi / mutual benefit fund and societies.

14. The company has not dealt/traded in shares, securities and debentures. However in respect of investments made in mutual funds, in our opinion and according to the information and explanations given to us, proper records have been maintained for the transactions and contracts and timely entries have been made therein. The investments have been held by the company in its own name.

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

16. Based on the audit procedures applied by us & according to the information & explanations provided by the management, the term loans taken by the company during the year have been applied for the purpose for which the loans were obtained.

17. According to the information and explanation given to us and on the basis of overall examination of the Balance Sheet of the company, in our opinion, no short term funds have been used for long term uses, during the year under our report.

18. During the year the company has not made any preferential allotment of shares. However the company has made preferential allotment of convertible warrants to the parties covered in the register maintained under section 301 of the Companies Act, 1956. In our opinion the price at which shares are to be issued against warrants is not prejudicial to the interest of the company

19. During the period covered under our audit report, the Company has not issued any debentures. Therefore the provisions of clause 4(xix) of the Companies (Auditors Report) Order, 2003 are not applicable to the Company.

20. The Company has not raised any money through a public issue during the year.

21. Based upon the audit procedures performed by us for expressing our opinion on these financial statements and information & explanations given by the management, we report that no fraud on or by the Company has been noticed or reported during the course of our audit that causes the financial statement to be materially misstated.



For AMOD AGRAWAL & ASSOCIATES

Chartered Accountants

Place : New Delhi AMOD AGRAWAL

Date : 5th May 2010 Partner

Membership No. 84175 FR No.005780N



 
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