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Auditor Report of Gromo Trade & Consultancy Ltd.

Mar 31, 2014

We have audited the accompanying financial statements of KAMALAKSHI FINANCE CORPORATION LIMITED ("the Company"), which comprises the balance sheet as at 31 st March 2014, the statement of profit and loss of the Company for year then ended, the cash flow statement of the Company for the year then ended and a summary of signifi cant 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 and cash flows of the Company in accordance with the Accounting Standards referred to in sub-section (3C) o f 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 o f 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 sufficie nt 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 a true and fair view in conformity wi th the accounting principles generally accepted in India:

(i) in the case of the balance sheet, of the state of affairs of the Company as at 31st March 2014;

(i) in the case of the statement of profit and loss account, thfe loss for the year ended on that date; and

(ii) in the case of the cash flow statement, of the cash flows for the year ended on that date. Emphasis Matter :

Note 24 Provision for diminution of investment not provided in accounts.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order, 2003 ("the Order"), as amended, 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 lawvehbaeen 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 Flo w 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 L oss and Cash Flow Statement comply with the Accounting Standards except note 25 referred to in sub section (3C) of section 211 of the Companies Act, 1956; and

e. on the basis of written representations received from the di rectors as on 31st March 2014, and taken on record by the Board of Directors, none of the director s is disqualified as on 31 March 2014, from being appointed as a director in terms of clause (g) of su b-section (1) of section 274 of the Companies Act, 1956.

Referred to in paragraph 3 of our report of even date on the Ac counts for the year ended 31st March 2014 of KAMALAKSHI FINANCE CORPORATION LIMITED.

1. (a) As explained to us, the Company has maintained proper re cords showing full particulars including quantitative details and situation of fix ed Assets.

(b) All the assets have been physically verified by the management at the end of the financial year, which in our opinion is reasonable having regar d to the size of the Company and the nature of its assets. According to the informat ion and explanations given to us, no material discrepancies were noticed on such verification.

(c) As per the records and as explained to us, the Company has not disposed off any substantial or major portion of fixed assets during the year.

2. (a) As explained to us, the inventories held by the Company were physically verified during the year by the management at reasonable intervals.

(b) In our opinion and according to the informatio n and explanations given to us, the procedure of physical verification of inventories followed by t he management is reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) In our opinion and according to the information and explanat ions given to us, the Company has maintained proper records of its inventories. The discrepancies noticed on verification between the physical stocks and the book records were not material.

3. (a) According to the information and explanations given to us, the Company has granted loans to a party listed in the Register maintained under sect ion 301 of the companies Act, 1956. The maximum amount involved during the year is 1.02 Crore and the year end balance is Rs. NIL.

(b) In our opinion and according to the information and explan ation given to us such loan is interest free and other terms and conditions on which loan have been given are not prima facie prejudicial to the interest of the Company

(c) The said loan has repaid during the year.

(e) The Company has not taken unsecured loan from any party covered in the register maintained under section 301 of the Companies Act 1956. Hence clause (f) and (g) not applicable.

4. In our opinion and according to the information and explana tions given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard to the purchases of inventory, fixed assets and with regard to the sale of goods. During the course of our audit we have not observed any continuing failure to correct major weakness in internal controls.

5. In our opinion and according to the information and given to us, there are no contracts or arrangement referred to in section 301 of the Comp anies Act, 1956 that need to be entered in the Register required to be maintained under t hat section. Hence, clause (v-b) of paragraph 4 of the Order is not applicable.

6. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public during t he year to which the directive issued by the Reserve Bank of India and the provision s of sections 58A and 58AA of the Companies Act,1956 and the rules framed there under are applicable.

7. The Company has adequate internal check and audit procedures implemented in the Course of the day - to - day functioning. However, no internal audit as such has been conducted.

8. The Company is not covered under section 209(1)(d) of the Companies Act, 1956 in respect of maintenance of cost records.

9. According to the information and explanation given to us, no undisputed amounts payable in respect of income tax, wealth tax, sales tax, customs duty, excise duty and cess were in arrears, as at 31.3.2014 for a period of more than six months from the date they became payable.

10. The Company has not accumulated losses but incurred cash lo ss during the current financial year.

11 In our opinion and according to information given to us, the Company not defaulted in repayment of dues to bank, financial institution, and debenture holder.

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

13 In our opinion, the Company is not a chit fund or a niche mutual benefit fund / society. Therefore, the provisions of clause 4 (xiii) of the Companies (Auditor''s Report) Order, 2003 are not applicable to this Company.

14 In our opinion and according to information given to us, the Company is dealing or trading in shares or securities. Proper records have been maintained of the transactions and contracts and timely entries have been made therein. Shares or securities are in the process of transfer.

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

16 In our opinion and according to the information and explanatiigiven to us, the Company has not raised term loans during the year under audit.

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

18 The Company has made preferential allotment of shares to partie s and companies covered in the register maintained under section 301 of the Act during the year which is not prejudicial to the interest of the company.

19 The Company has not issued any debenture during the year.

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

21 On the basis of the audit procedure carriedaliobyusexpdanribDns given by the management, we state that no fraud on or by the Co mpany has been noticed or reported during the course of our audit.

For R Soni & Co. Chartered Accountants FRN 130349W

(Sd/-) Rajesh Soni Partner MNo 133240 Mumbai, May 15, 2014


Mar 31, 2012

We have audited the attached Balance Sheet of KAMALAKSHI FINANCE CORPORATION LIMITED, as at 31st March 2012 and the profit and loss account for the tear 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.

We Conducted our audit in accordance with the auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosure 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.

1. As enquired by the Companies (Auditors Report) Order, 2003 issued by the Central Government of India in terms of Sub-section (4) of the Companies 1956, we enclosed in the Annexure hereto a statement on the matters specified in paragraphs 4 and 5 of the said Order.

2. On the basis of audit conducted by us we report as under :

a. We have obtained all information and explanations which, to the best 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 and Profit & 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 and the Profit & Loss Account dealt by this report comply with the mandatory Accounting Standards referred in Sub-Section (3C) of Section 211 of the Companies Act, 1956, to the extent applicable.

e. In our opinion, and based on information and explanations given to us, none of the directors are disqualified as on 31st March, 2012 from being appointed as a director in terms of Clause (g) of Sub-Section (l)of Section 274 of the Companies Act,1956.

f. In our opinion and to the best of our information and according to the explanations given to us, the said Account read together with Significant Accounting Policies and other Notes thereon give the information required by the Companies Act, 1956 in the manner so required and present true and fair view, in conformity with accounting principles generally accepted in India:

i) In so far as it relates to the Balance sheet of the state of affairs of the Company as at 31st March, 2012,

ii) In so far as it relates to the Profit & Loss Account of the Profit of the company for the year ended on that date.

iii) In so far as it relates to cash flow statement of the Cash Flow of the Company for the year ended on that date.

Annexure to Auditor''s Report

Referred to in paragraph 2 of our report of even date:

I. In respect of its fixed assets:

1. The company does not have any fixed assets and hence para 4(i) and (ii) of the Order are not applicable.

II. In respect of its inventories:

1. The Company does not have any inventories and hence para 4 (iii) and (iv) of the Order are not applicable.

III. In respect of loans, secured or unsecured, granted or taken by the Company to/from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956:

a. The Company has granted unsecured loans, to one party covered in the register maintained under Section 301 of the Companies Act, 1956. The maximum amount outstanding during the year was Rs. 0.10 lakhs and year end balance of such loan was Rs. Nil.

b. In absence of any terms and conditions hereto we are unable to comment whether the rate of interest and repayment of principal amount is prima facie prejudicial to the interest of the Company.

c. In absence of any terms and conditions we are unable to comment whether the parties are regular in payment of principal amount and interest thereon.

d. The Company has taken unsecured loan from one party covered in the register maintained under Section 301 of the Companies Act, 1956. The maximum amount outstanding during the year was Rs. 8.20 lakhs and year end balance of such loan was Rs. 4.00 lakhs.

e. In absence of any terms and conditions hereto we are unable to comment whether the rate of interest and repayment of principal amount is prima facie prejudicial to the interest of the Company.

f. In absence of any terms and conditions we are unable to comment whether the payment of principal amount and interest thereon is regular.

IV. The Company has adequate internal control system commensurate with the size of the company and nature of its business for purchase of assets and inventories and sales of goods.

V. In respect of transaction covered under Section 301 of the Company Act, 1956:

a) In our opinion and according to the information and explanation given to us, the transaction made in pursuance to the contract or arrangement that needed to be entered into the register maintained under Section 301 of the Companies Act, 1956 have been so entered.

b) In our opinion and according to the information and explanation given to us the company has not made any transaction in pursuance to the contract or arrangement entered in the register maintained under Section 301 of the Companies Act, 1956 and exceeding Rs. 50,00,00/- in respect of any party during the year.

VI. The Company has not accepted any deposit from the public.

VII. There is no internal audit system commensurate with the size and nature of its business.

VIII. The Central Government has not prescribed to maintain cost records and hence para 4(viii) of the Order is not applicable.

IX. In respect of statutory dues:

a) According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31st March 2012 for a period of more than six months from the date of becoming payable.

b) The Company has no disputed amount payable to Sales tax, Income Tax, Wealth tax or excise Duty Department.

X. The Company has no accumulated losses. The Company has not incurred any cash losses during the financial year covered by our audit and also in the immediately preceding financial year.

XI. The Company doesn''t have any loan outstanding to pay, so question of defaulting in payment does not arise.

XII. In our opinion and according to the information and explanation given to us, no loans and advances have been granted during the year by the Company on the basis of security by way of pledge of shares, debentures and other securities.

XIII. 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 2003 is not applicable to the company.

XIV. The Company has not dealt in trading in shares and securities and hence para (xiv) is not applicable.

XV. The company has not given any guarantee for the loans taken by others from the banks or financial institutions and hence para 4(xv) of the Order is not applicable.

XVI. The Company has not raised any new term loans during the year.

XVII. According to information and explanation given to us and on an overall examination of the Balance Sheet of the company, we are of the opinion that the company has not utilized any short term funds for long term and vice versa.

XVIII. During the year the company has not made any preferential allotments of shares to parties and cornpones covered in the register maintained under section 301 of the Companies Act, 1956.

XIX. The company has not issued any debentures and hence para 4(xix) of the order is not applicable.

XX. The company has not raised any money by way of public issues during the year.

XXI. In our opinion and according to information and explanation given to us, no frauds on or by the company has been noticed or reported during the year that causes the financial statement to be materially misstated.

FOR RAMESH M. SHETH & ASSOCIATES

Chartered Accountants

FRN 111883W

Place: Mumbai

Date: 13/08/2012 (M.R. SHETH)

Partner

Membership No. 101598

 
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