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Auditor Report of Frontier Springs Ltd.

Mar 31, 2015

We have audited the accompanying financial state- ments of Frontier Springs Limited ("the Company") which comprise the Balance Sheet as at 31st March 2015, Profit and Loss Statement, the Cash Flow Statement for the year then ended and a summary of the significant ac- counting policies and other explanatory information.

Management's Responsibility for the Financial State- ments

The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Compa- nies 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 ac- counting principles generally accepted in India includ- ing the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Ac- counts) Rules,2014. This responsibility also includes maintenance of adequate accounting records in accor- dance with the provisions of the Act for safeguarding the assets of the Company and 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 account- ing records, relevant to the preparation and presenta- tion of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

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

We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under provisions of the Act and Rules made there under. We conducted our audit in accordance with the Stan- dards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with the ethical requirements and plan, perform the audit to obtain reasonable assurance about whether the finan- cial statements are free from material misstatements. 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 state- ments, whether due to fraud or error.

In making those risk assessments, the auditor con- siders the 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 proce- dures 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 systems over financial reporting and the oper- ating effectiveness of such controls. An audit also in- cludes evaluating the appropriateness of accounting policies used and the reasonableness of the account- ing 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 gener- ally accepted in India, of the state of affairs of the Com- pany as at March 31, 2015, and its profits and its cash flows for the year ended on that date.

i) In few cases balance of sundry debtors, sundry creditors and sundry advances are subject to confirmation from respective parties.

ii) Inventory of finished goods are valued at net realisable value (refer Note no. J of significant Accounting policies).

(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 the date, and

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

Report on Other Legal and Regulatory Requirements

1. 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 Profit and Loss Statement, 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 statement comply with the Accounting Standards specified under Section 133 of the Act, read with rule 7 of the Companies (Account) Rules,2014;

(e) On the basis of the written representations received from the directors as on 31st March, 2015 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 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) Rule,2014, in our opinion and to the best of our information and according to the explanations given to u;

(i) The Company has disclosed the impact of pending litigations on its financial position in its financial statements as referred to in Notes X to the financial statements.

(ii) The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable loses, if any and as required on long-term contracts including derivative contracts.

ANNEXURE TO AUDITORS' REPORT

Referred to in paragraph 1 of the Auditor's Report to the shareholders of Frontier Springs Limited Regd. Off. E-14, Panki Industrial Area, Site no.1, Kanpur on the account for the year ended on 31st March,2015.

1. (a) The Company has maintained proper records showing full particulars including quantitative details and the situation of fixed assets on the basis of available information.

(b) As explained to us ,all the fixed assets have been physically verified by the management in a phased periodical manner ,which in our opinion is reasonable ,having regard to the size of the company and the nature of its assets .No material discrepancies were noticed on such physical verification .

2. (a) The inventories have been physically verified during the year by the management .In our opinion, the frequency of verification is reasonable.

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

(c) The Company has maintained proper records of inventories .As explained to us, there were no material discrepancies noticed on physical verification of inventories as compared to the book records.

3. The Company has not granted any loans, secured or unsecured to companies, firms or parties covered in the register maintained under section 189 of Companies Act, 2013.

4. In our opinion and according to the information and explanation 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 also for the sale of goods and services. During the course of our audit, we have not observed any continuing failure to correct major weakness in internal control system.

5. The Company has no accepted deposits, as per 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 and the rules framed.

6. The Central Government has prescribed maintenance of cost records under Section 148(1) of the Companies Act, in respect of certain manufacturing activities of the Company. We have broadly reviewed the accounts and records of the company in this connection and are of the opinion, that prima facie, the prescribed accounts and record have been made and maintained .We have not, however, carried out a detailed examination of the same.

7 (a) According to the records of the company, undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees' State Insurance, Income tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and any other statutory dues have been generally regularly deposited with the appropriate authorities within the stipulated time except some delay in deposit of T.D.S., Excise and Service tax. According to the information and explanation given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at March 31,2015 for the period exceeding 6 months from the date of becoming payable. (b) According to the information and explanation given to us, there are no dues of income tax, sales tax, custom duty, excise duty and cess, which have not been deposited on account of dispute.

(c ) There is no amount required to be transferred to Investor Education and Protection Fund in accordance with the relevant provisions of the Companies Act,2013 (1 of 1956) and rules made there under.

8. The Company does not have accumulated losses at the end of the financial year covered by the audit and in the immediately preceding financial year.

9. Based on our audit procedures and according to the information and explanation given to us, we are of opinion that the Company has not defaulted in repayment of dues to financial institutions, banks and debenture holders.

10. As per the information furnished to us by the management, the Company has not given guarantees for loans taken by others from banks and financial institutions.

11. The Company has raised new term loan during the year. The term loan outstanding at the beginning of the year and those raised during the year have been applied for the purposes for which they were raised.

12. Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per the information and explanations given by the management, we report that no fraud on or before by the company has been noticed or reported during the course of our audit.

For SANJAY NANDANI & CO. Sanjay Nandani & Co. Chartered Accountants 229, IInd Floor, Firm's Regn. No. : 006941C City Centre,The Mall, SANJAY MALHOTRA Kanpur Partner Date : 28.05.2015 Membership No. 71140








Mar 31, 2014

We have audited the accompanying financial state- ments of Frontier Springs Limited which comprise the Bal- ance Sheet as at 31st March 2014, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of the significant accounting poli- cies and other explanatory information.

Management''s Responsibility for the Financial State- ments

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 perfor- mance and cash flows of the Company in accordance with the Accounting Standards referred to in sub-section 3(C) of section 211 of Companies Act, 1956("the Act") read with the General Circular 15/2013 dated 13 Sep- tember 2013 of the Ministry of Corporate Affairs in re- spect of Section 133 of the Companies Act, 2013. This responsibility includes the design, implementation and maintenance of internal control relevant to the prepara- tion and presentation of the financial statements that give a true and fair view and are free from material misstate- ment, whether due to fraud and 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 the ethical requirements and plan perform the audit to obtain rea- sonable assurance about whether the financial state- ments are free from material misstatements.

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 state- ments, whether due to fraud or error. In making those risk assessments, the auditor considers the internal control relevant to the Company''s preparation and fair presenta- tion of the financial statement in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting polices used and the reasonableness of the accounting estimates made by the Management, as well as evaluating the overall presentation of the financial statements. We believe that audit evidence we have ob- tained is sufficient and appropriate to provide basis for our audit opinion.

Opinion

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

i) Balance of sundry debtors, sundry creditors and

sundry advances are subject to confirmation from respective parties (referred note no. of Note on Ac- counts).

ii) Inventory of finished goods are valued at net realisable value (referred Note no. J of significant Accounting policies).

iii) Provision for payment of gratuity to director has been made on the payment basis (referred Note no. M of significant Accounting policies).

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

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

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

Report on Other Legal and Regulatory Requirements

1. As required by the Company (Auditor''s Report) or- der, 2003 ("the Order") issued by the Central Gov- ernments of India in terms of sub-section (4A) of section 227 of Act, we give in the Annexure a state- ment 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 ex- planations 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 re- quired by law have been kept by the Company so far as it appears from our examination of those books.

(c) The Balance Sheet, Statement of Profit and Loss, and the Cash Flow Statements 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 Com- ply with the Accounting Standards referred to in sub-section (3C) of section 211 of the Act, 1956 read with the General Circular 15/2013 dated 13 September 2013 of the Ministry of Cor- porate Affairs in respect of Section 133 of the Companies Act, 2013. : and

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

ANNEXURE TO AUDITORS'' REPORT

Referred to in paragraph III of the Auditor''s Report to the Shareholders of Frontier Springs Limited on the financial statement for the year ended 31st March, 2014.

1. (a) The Company has maintained proper records showing full particulars including quantitative details and situation of Fixed Assets.

(b) Physical verification of Fixed Assets has been conducted by the management at the end of the year, to the best of our knowledge, no serious discrepancies have been noticed on verifica- tion.

(c) No Fixed Assets except car have been disposed off and sale of which does not affect the Con- cept of going Concern.

2. (a) The stocks of Finished Goods, Stores, Spare Parts & Raw Materials have been physically veri- fied during the year by the management. In our opinion, frequency of verification is reasonable. The Company is maintaining proper records of inventory.

(b) In our opinion, procedures of physical verifica- tion of stocks followed by management are rea- sonable and adequate in relation to the size of the Company and nature of its business.

(c) The discrepancies noticed on verification be- tween the physical stocks and books records were not significant.

3. (a) The Company has not granted any loans, se- cured or unsecured to companies, firms or par- ties covered in the register maintained under Sec.301 of the Companies Act,1956 during the year.

(b) The Company has accepted deposits amount- ing to Rs. 27,00,000.00 from Shri Neeraj Bhatia Director of the Company, out of which principle amount of Rs. 8,05,000.00 and interest amount- ing to Rs. 1,74,004.00 has been paid, The Bal- ance outstanding at the end of the year is Rs.19,60,223.00.

(c) The Company has repaid interest amounting to Rs. 10,63,487.00 to M/s Vishpa Rail Equipment Pvt. Limited balance outstanding at the end of the year is Rs.1,27,72,663.00 listed in the regis- ter maintained under Section 301 of the Com- panies Act,1956.

(d) In our opinion rate of interest and other terms and conditions of Loans taken by the Company are not prima-facie prejudicial to the interest of the Company. Further, payment of the principal amount if any and interest are regular.

4. In our opinion and according to the information and explanations given to us, there are adequate inter- nal control systems commensurate with the size of the Company and the nature of its business with regard to purchases of Inventory and Fixed assets and for the sales of Goods. There are no continuing failures to correct major weaknesses on internal control system.

5. (a) According to the information and explanations provided by the management, we are of the opinion that the particulars of contracts or ar- rangements referred to in section 301 of the Act that need to be entered into the register main- tained under section 301 have been so entered.

(b) In our opinion, and according to the information and explanations given to us , the transactions made in pursuance of contracts and arrange- ments referred to in (5)(a) above and exceed- ing the value of Rs. 5 lakh with any party during the year have been made at prices which are reasonable having regard to the prevailing mar- ket prices at the relevant time.

6. According to the information and explanations given to us, the Company has accepted deposit from the public that is from Director Mr. Neeraj Bhatia, within the meaning of sections 58A and 58AA of the Com- panies Act, 1956 and the rules framed there under.

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

8. The Central Government has prescribed mainte- nance of cost records under Section 209 (1) (d) of the Companies Act, 1956 in respect to the manufac- turing activities of the Company. We have broadly reviewed the accounts and records of the Company in this connection and are of the opinion, that prima facie, the prescribed accounts and records have been made and maintained. We have not, however, carried out a detailed examination of the records.

9. (a) According to the records of the Company, un- disputed statutory dues including Provident Fund, Employees State Insurance ,Excise Duty ,Service tax , Income tax, Sales tax and any other statutory dues have been generally regularly deposited with the appropriate authorities within the stipulated time except some delay in de- posit of T.D.S., Excise, & Service Tax. According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at the last day of financial year concerned for a period of more than six months from the date they be- come payable.

(b) The Company has no disputed statutory dues.

10. The Company has no accumulated losses at the end of the financial year and it has not incurred cash losses in the current year and in the immediately preceding financial year.

11. Based on our audit procedures and as per the infor- mation and explanations given by the management, we are of the opinion that the Company has not defaulted in repayment of dues to a financial institu- tion, bank.

12. In our opinion and according to the information and explanation given to us, The Company has not granted any loans and advances on the basis of security by way of pledge of share, debentures and other security.

13. In our opinion, the Company is not a Chit Fund or a Nidhi/Mutual Benefit, Fund/ Society, therefore clause 4(xiii) of the Companies (Auditors Report) order, 2004 is not applicable to the Company.

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

15. In our opinion and according to the information & explanation given to us, the Company has not given any guarantee for loans taken by others from bank or financial institutions.

16. The Company has raised new term loans during the year. The term loans raised during the year have been applied for the purposes for which they were raised.

17. According to the information and explanations given to us and on an overall examination of the balance sheet and cash flow statement of the Company, we report that no funds raised on short-term basis have been used for long-term investment.

18. The Company has not made any preferencial allot- ment of shares to any parties or Companies cov- ered in the registered maintain under section 301 of the Act.

19. No debentures have been issued during the year.

20. No public issue has been made during the year.

21. Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per the information and explanations given by the management, we report that no fraud on or by the Company has been no- ticed or reported during the course of our audit.

For SANJAY NANDANI & CO. Sanjay Nandani & Co. Chartered Accountants 229, IInd Floor, Firm''s Regn. No. : 006941C City Centre,The Mall, SANJAY MALHOTRA Kanpur Partner Date : 16.05.2014 Membership No. 71140


Mar 31, 2013

We have audited the accompanying financial statements of Frontier Springs Limited which comprise the Balance Sheet as at 31st March 2013, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of the significant ac- counting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

The Company''s Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in sub-section 3(C) of section 211 of 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 and 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 the ethical requirements and plan 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 the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers the internal control relevant to the Company''s preparation and fair presentation of the financial statement in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting polices used and the reasonableness of the accounting estimates made by the Management, as well as evaluating the overall presentation of the financial statements. We believe that audit evidence we have obtained is sufficient and appropriate to provide basis for our audit opinion.

Opinion

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

i) Balance of sundry debtors, sundry creditors and sundry advances are subject to confirmation from respective parties (referred note no. of Note on Ac- counts).

ii) Inventory of finished goods are valued at net realisable value (referred Note no. J of significant Accounting policies).

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

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

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

Report on Other Legal and Regulatory Requirements

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

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

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

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

(c) The Balance Sheet, Statement of Profit and Loss, and the Cash Flow Statements 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 Com- ply with the Accounting Standards referred to in sub-section (3C) of section 211 of the Act.

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

ANNEXURE TO AUDITORS'' REPORT

Referred to in paragraph III of the Auditor''s Report to the Shareholders of Frontier Springs Limited on the financial statement for the year ended 31st March, 2013.

1. (a) The Company has maintained proper records showing full particulars including quantitative details and situation of Fixed Assets.

(b) Physical verification of Fixed Assets has been conducted by the management at the end of the year, to the best of our knowledge, no serious discrepancies have been noticed on verification.

(c) No fixed Assets except Car have been disposed off and sale of which does not affect the Con- cept of going Concern.

2. (a) The stocks of Finished Goods, Stores, Spare Parts & Raw Materials have been physically verified during the year by the management. In our opinion, frequency of verification is reason- able. The Company is maintaining proper records of inventory.

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

(c) The discrepancies noticed on verification between the physical stocks and books records were not significant.

3. The Company has not granted any loan secured or unsecured to Companies, firm or other parties listed in the register maintained under Sec.301 of the Companies Act. 1956 during the year , however during the year, the Company has accepted deposits amounting to Rs. 21,50,000.00 balance outstanding Rs.1,24,65,000.00 from corporate body listed in the register maintained under Section 301 of the Companies Act,1956 and has repaid amounting Rs.12,20,216.00 towards interest. In our opinion rate of interest and other terms and conditions of Loans taken by the Company are not prima-facie prejudicial to the interest of the Company. Further, payment of the principal amount and interest are also regular.

4. In our opinion and according to the information and explanations given to us, there are adequate install control systems commensurate with the size of the Company and the nature of its business with regard to purchases of Inventory and Fixed assets and for the sales of Goods. There are no continuing failures to correct major weaknesses on internal control system.

5. According to the information and explanations pro- vided by the management, we are in the opinion that the particulars of contracts or arrangements referred to in section 301 of the Act that need to be entered into the register maintained under section 301 have been so entered. It has been further explained and informed to us by the Company that all the transaction are made at cash on prevailing mar- ket prices.

6. According to the information and explanations given to us, 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.

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

8. The Central Government has prescribed maintenance of cost records under Section 209 (1) (d) of the Companies Act, 1956 in respect to the manufacturing activities of the Company. We have broadly reviewed the accounts and records of the Company in this connection and are of the opinion, that prima facie, the prescribed accounts and records have been made and maintained. We have not, however, carried out a detailed examination of the records.

9. (a) According to the records of the Company, un- disputed statutory dues including Provident Fund, Employees State Insurance ,Excise Duty, Service tax, Income tax, Sales tax and any other statutory dues have been generally regularly deposited with the appropriate authorities within the stipulated time except some delay in de- posit of T.D.S., Excise, & Service Tax. According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at the last day of financial year concerned for a period of more than six months from the date they be- come payable.

(b) The disputed statutory dues aggregating Rs.2.19 lacs, that have not been deposited on account of disputed matters pending before appropriate authorities are as under:

Sl. Name Nature Amount Period to Forum where No. of Statute of dues (in Lacs) which the dispute is amount pending relates

1. Central sales Penalty 2.19 2000-01 High Court tax Act,1956 2001-02 Allahabad and Sales tax Act of of U.P.

10. The Company has no accumulated losses at the end of the financial year and it has not incurred cash losses in the current year and in the immediately preceding financial year.

11. Based on our audit procedures and as per the in- formation and explanations given by the management, we are of the opinion that the Company has not defaulted in repayment of dues to a financial institution, bank.

12. In our opinion and according to the information and explanation given to us, The Company has not granted any loans and advances on the basis of security by way of pledge of share, debentures and other security.

13. In our opinion, the Company is not a Chit Fund or a Nidhi/Mutual Benefit, Fund/ Society, therefore clause 4(xiii) of the Companies (Auditor’s Report) order, 2004 is not applicable to the Company.

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

15. In our opinion and according to the information & explanation given to us, the Company has not given any guarantee for loans taken by others from bank or financial institutions.

16. The Company is not utilising any term loan facility for Plant & Machinery. However, there are Car loans as found by us and as explained and informed to us by management.

17. According to the information and explanations given to us and on an overall examination of the balance sheet and cash flow statement of the Com- pany, we report that no funds raised on short-term basis have been used for long-term investment.

18. The Company has not made any preferential allotment of shares to any parties or Companies.

19. No debentures have been issued during the year.

20. No public issue has been made during the year.

21. Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per the information and 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.

For SANJAY NANDANI & CO.

Sanjay Nandani & Co. Chartered Accountants

229, IInd Floor, Firm''s Regn. No. : 006941C

City Centre,The Mall, SANJAY MALHOTRA

Kanpur Partner

Date : 29.05.2013 Membership No. 71140


Mar 31, 2012

We have audited the attached Balance Sheet of Frontier Springs Limited as at 31.03.2012, the annexed Profit & Loss Account and the Cash Flow Statement for the year ended on that date. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these fi- nancial statements based on our audit.

We conducted our audit in accordance with audit- ing standards generally accepted in India. Those stan- dards require that we plan and perform the audit to ob- tain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence support- ing the amounts and disclosures in the financial state- ments. An audit also includes assessing the accounting principles used and significant estimates made by man- agement, as well as evaluating the overall presentation of financial statement. We believe that our audit pro- vides a reasonable basis for our opinion.

As required by the Companies (Auditors Report) order, 2003 as amended by the Companies (Auditors Report) order 2004 issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said order.

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

i). We have obtained all the information and explana- tions, which to the best of our knowledge and belief were necessary for the purposes 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 these books ;

iii). The Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with by this report are in agree- ment with the books of account;

iv). In our opinion, the Balance Sheet, Profit & Loss account and Cash Flow Statement dealt with by this report comply with the applicable Accounting Stan- dards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956 ;

v). On the basis of written representations received from the Directors, as on 31/03/2012 and taken on record by the Board of directors, we report that none of the director is prima facie disqualified as on 31/ 03/2012 from being appointed as a director in terms of 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 explanations given to us, the said accounts read together with the significant account- ing Policies and notes thereon give the information required by the Companies Act,1956, in the man- ner so required and give a true and fair view in con- formity with the accounting principles generally ac- cepted in India:

i) Balance of sundry debtors, sundry creditors and sundry advances are subject to confirmation from respective parties (referred note no. of Note on Ac- counts).

ii) Inventory of finished goods are valued at net realisable value (referred Note no. J of significant Accounting policies). gives 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 prin- ciples generally accepted in India:

a) In the case of Balance Sheet, of the state of af- fairs of the Company as at 31/03/2012;

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

And

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

ANNEXURE TO AUDITORS' REPORT

Referred to in paragraph III of the Auditor's Report to the Shareholders of Frontier Springs Limited on the financial statement for the year ended 31st March, 2012.

1. (a) The Company has maintained proper records showing full particulars including quantitative details and situation of Fixed Assets.

(b) Physical verification of Fixed Assets has been conducted by the management at the end of the year, to the best of our knowledge, no serious discrepancies have been noticed on verifica- tion.

(c) No fixed Assets except Car have been disposed off and sale of which does not affect the Con- cept of going Concern.

2. (a) The stocks of Finished Goods, Stores, Spare Parts & Raw Materials have been physi- cally verified during the year by the manage- ment. In our opinion, frequency of verification is reasonable. The Company is maintaining proper records of inventory.

(b) In our opinion, procedures of physical verifica- tion of stocks followed by management are rea- sonable and adequate in relation to the size of the Company and nature of its business.

(c) The discrepancies noticed on verification be- tween the physical stocks and books records were not significant.

3. The Company has not granted any loan secured or unsecured to Companies, firm or other parties listed in the register maintained under Sec.301 of the Companies Act. 1956 during the year , however during the year, the Company has accepted depos- its amounting to Rs. 20,15,000.00 balance outstand- ing Rs.1,03,15,000.00 from corporate body listed in the register maintained under Section 301 of the Companies Act,1956 and has repaid amounting Rs.9,72,528.00 towards interest. In our opinion rate of interest and other terms and conditions of Loans taken by the Company are not prima-facie prejudi- cial to the interest of the Company. Further, payment of the principal amount and interest are also regu- lar.

4. In our opinion and according to the information and explanations given to us, there are adequate internal control systems commensurate with the size of the Company and the nature of its business with regard to purchases of Inventory and Fixed assets and for the sales of Goods. There are no continuing failures to correct major weaknesses on internal control system.

5. According to the information and explanations pro- vided by the management, we are in the opinion that the particulars of contracts or arrangements re- ferred to in section 301 of the Act that need to be entered into the register maintained under section 301 have been so entered. It has been further ex- plained and informed to us by the Company that all the transaction are made at cash on prevailing mar- ket prices.

6. According to the information and explanations given to us, 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.

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

8. The Central Government has prescribed mainte- nance of cost records under Section 209 (1) (d) of the Companies Act, 1956 in respect to the manufac- turing activities of the Company. We have broadly reviewed the accounts and records of the Company in this connection and are of the opinion, that prima facie, the prescribed accounts and records have been made and maintained. We have not, however, carried out a detailed examination of the records.

9. (a) According to the records of the Company, un- disputed statutory dues including Provident Fund, Employees State Insurance, Excise Duty, Service tax , Income tax, Sales tax and any other statutory dues have been generally regularly deposited with the appropriate authorities within the stipulated time except some delay in de- posit of T.D.S., Excise, & Service Tax. According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at the last day of financial year concerned for a period of more than six months from the date they be- come payable.

(b) The disputed statutory dues aggregating Rs.2.19 lacs, that have not been deposited on account of disputed matters pending before appropriate authorities are as under:

Sl. Name Nature Amount Period to Forum where No. of Statute of dues (in Lacs) which the dispute is amount pending relates

1. Central sales Penalty 2.19 2000-01 High Court tax Act,1956 2001-02 Allahabad and Sales tax Act of of U.P.

10. The Company has no accumulated losses at the end of the financial year and it has not incurred cash losses in the current year and in the immediately preceding financial year.

11. Based on our audit procedures and as per the in- formation and explanations given by the manage- ment, we are of the opinion that the Company has not defaulted in repayment of dues to a financial institution, bank.

12. In our opinion and according to the information and explanation given to us , The Company has not granted any loans and advances on the basis of security by way of pledge of share, debentures and other security.

13. In our opinion, the Company is not a Chit Fund or a Nidhi/Mutual Benefit, Fund/ Society, therefore clause 4(xiii) of the Companies (Auditors Report) order, 2004 is not applicable to the Company.

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

15. In our opinion and according to the information & explanation given to us, the Company has not given any guarantee for loans taken by others from bank or financial institutions.

16. The Company is not utilising any term loan facility for Plant & Machinery. However, there are Car loans as found by us and as explained and informed to us by management.

17. According to the information and explanations given to us and on an overall examination of the balance sheet and cash flow statement of the Company, we report that no funds raised on short-term basis have been used for long-term investment.

18. The Company has not made any preferencial allot- ment of shares to any parties or Companies.

19. No debentures have been issued during the year.

20. No public issue has been made during the year.

21. Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per the information and explanations given by the management, we report that no fraud on or by the Company has been no- ticed or reported during the course of our audit.

Sanjay Nandani & Co. For SANJAY NANDANI & CO.

229, IInd Floor, Chartered Accountants

City Centre,The Mall, SANJAY MALHOTRA

Kanpur Partner

Date : 28.05.2012 Membership No. 71140


Mar 31, 2010

We have audited the attached Balance Sheet of Fron- tier Springs Limited as at 31.03.2010, the annexed Profit & Loss Account and the Cash Flow Statement for the year ended on that date. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

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

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

Further to our comments in the Annexure referred to above, we report that :- i) We have obtained all the information and explana- tions, which to the best of our knowledge and belief were necessary for the purposes 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 these books ;

iii) The Balance Sheet, Profit & 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 & Loss account and Cash Flow Statement dealt with by this report comply with the applicable Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956 ;

v) On the basis of written representations received from the Directors, as on 31/03/2010 and taken on record by the Board of directors, we report that none of the director is prima facie disqualified as on 31/03/2010 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Compa- nies Act, 1956;

vi) In our opinion and to the best of our information and according to the explanations given to us, the said accounts read with significant accounting policies and notes on accounts annexed thereto, subject to the followings:

i) Balance of sundry debtors, sundry creditors and sundry advances are subject to confirmation from respective parties (referred note no. 2 of ScheduleS of Note on Accounts).

ii) Inventory of finished goods are valued at net realiseble value (referred point no. B of Schedules of Significant Accounting Policies). gives the information required by the Companies Act,1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India :

a) In the case of Balance Sheet, of the state of affairs of the Company as at 31/03/2010;

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

And

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

ANNEXURE TO AUDITORS REPORT

Referred to in paragraph III of the Auditors Report to the Shareholders of Frontier Springs Limited on the Financial Statement for the year ended on 31st March, 2010.

1. (a) The Company has maintained proper records

showing full particulars including quantitative details and situation of Fixed Assets.

(b) Physical verification of Fixed Assets has been conducted by the management at the end of the year, to the best of our knowledge, no serious discrepancies have been noticed on verification.

(c) No fixed Assets except Car have been disposed off and sale of which does not affect the Concept of Going Concern.

2. (a) The stocks of Finished Goods, Stores, Spare Parts & Raw Materials have been physically verified during the year by the management. In our opinion, frequency of verification is reasonable. The Company is maintaining proper records of inventory.

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

(c) The discrepancies noticed on verification between the physical stocks and books records were not significant.

3. The Company has not granted any loan secured or unsecured to Companies, firm or other parties listed in the register maintained under Sec. 301 of the Companies Act, 1956 during the year, however during the year, the Company has accepted deposits amounting to Rs. 21,50,000.00 from 10 nos. of parties listed in the register maintained under Section 301 of the Companies Act,1956 and has repaid to 12 nos. of parties amounting Rs. 14,90,461.00 (Rs. 5,57,614.00 towards interest and Rs. 9,32,847.00 to- wards principal). In our opinion rate of interest and other terms and conditions of Loans taken by the Company are not prima-facie prejudicial to the interest of the Company. Further, payment of the principal amount and interest are also regular.

4. In our opinion and according to the information and explanations given to us, there are adequate internal control systems commensurate with the size of the Company and the nature of its business with re- gard to purchases of Inventory and Fixed assets and for the sales of Goods. There are no continuing failures to correct major weaknesses on internal control system.

5. According to the information and explanations provided by the management, we are in the opinion that the particulars of contracts or arrangements referred to in section 301 of the Act that need to be entered into the register maintained under section 301 have been so entered. It has been further explained and informed to us by the Company that all the transaction are made at cash on prevailing market prices.

6. The Company has accepted deposits from the public during the year and the same are in compliance with the provisions of section 58A and 58AA or any other relevant provisions of the Companies Act, 1956.

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

8. According to explanation and information given to us, maintenance of cost records has not been prescribed by the Central Government under Section 209 (1)(d) of the Companies Act, 1956 in respect to the business of the Company.

9. (a) According to the records of the Company, the

Provident Fund, Employees State Insurance, Excise Duty, Service tax, Income tax, Sales tax and any other statutory dues have been regu- larly deposited with the appropriate authorities within the stipulated time except some delay in deposit of T.D.S., Excise, Sales Tax & Entry Tax. There are no dues outstanding as at the last day of financial year concerned for a period of more than six months from the date they become payable.

(b) In our opinion, explanation and information given to us, there is no statutory dues as stated in para 9(a) above pending due to any dispute, hence provisions of para 4 (ix) b) of the said order is not applicable to the Company.

10. The Company has no accumulated losses at the end of the financial year and it has not incurred cash losses in the current year and immediately preceding financial year.

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

12. In our opinion and according to the information and explanation given to us, the Company has not granted any loans and advances on the basis of security by way of pledge of share, debentures and other security.

13. In our opinion, the Company is not a Chit Fund or a Nidhi/Mutual Benefit, Fund/ Society, therefore clause

4(xiii) of the Companies (Auditors Report) Order, 2004 is not applicable to the Company.

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

15. In our opinion and according to the information & explanation given to us, the Company has not given any guarantee for loans taken by others from bank or financial institutions.

16. The Company is utilising term loan facility from State Bank of India for Plant & Machinery including Car Hire Purchase loan as found by us and as explained and informed to us.

17. According to the information and explanations given to us and on an overall examination of the balance sheet and cash flow statement of the Company, we report that no funds raised on short-term basis have been used for long-term investment.

18. The Company has not made any preferencial allotment of shares to any parties or Companies.

19. No debentures have been issued during the year.

20. No public issue has been made during the year.

21. Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per the information and 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.

Sanjay Nandini & Co. For SANJAY NANDINI & CO.

229, IInd Floor, Chartered Accountants

City Centre,The Mall, SANJAY MALHOTRA

Kanpur Partner

Date : 12.08.2010 Membership No. 71140

 
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