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Auditor Report of Innovative Tech Pack Ltd.

Mar 31, 2015

1. We have audited the accompanying standalone financial statements of Innovative Tech Pack 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 Standalone 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 standalone 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, 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 there under 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 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/loss 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 does not have any pending litigations as at March 31, 2015 which would impact its financial position.

ii. The Company did not have any long-term contracts including derivative contracts as at March 31,2015.

iii. There were no amounts which were 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 Innovative Tech Pack Limited on the financial statements for the year ended March 31, 2015

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

(b) The fixed assets are physically verified by the Management according to a phased programme designed to cover all the items over a period of three years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the programme, a portion of the fixed assets has been physically verified by the Management during the year and no material discrepancies have been noticed on such verification.

ii. (a) The inventory has been physically verified by the Management during the year. In our opinion, the frequency of verification is reasonable.

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

(c) On the basis of our examination of the inventory records, in our opinion, the Company is maintaining proper records of inventory. The discrepancies noticed on physical verification of inventory as compared to book records were not material.

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

iv. 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.

v. The Company has not accepted any deposits from the public within the meaning of Sections 73, 74, 75 and 76 of the Act and the rules framed there under to the extent notified.

vi. We have broadly reviewed the books of account maintained by the Company in respect of products where, pursuant to the rules made by the Central Government of India, the maintenance of cost records has been specified under sub- section (1) of Section 148 of the Act, and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete.

vii. (a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, 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 and cess have not generally been deposited regularly with the appropriate authorities.

(b) According to the information and explanations given to us and the records of the Company examined by us, the particulars of dues of sales tax, as at March 31,2015 which have not been deposited on account of a dispute, are as follows:

Name of the statute Nature of dues Amount (in Rs.)

Central Sales Tax Act Central Sales Tax 3,306

Haryana Vat Act Local Sale Tax 52,380

Central Sales Tax Act Central Sales Tax 45,958

Haryana Vat Act Local Sale Tax 5,857

Name of the statute Period to which Due date the amount relates

Central Sales Tax Act 2009-10 31st July, 2013

Haryana Vat Act 2009-10 31st July, 2013

Central Sales Tax Act 2009-10 31st July, 2013

Haryana Vat Act 2009-10 31st July, 2013

c) There are no amounts required to be transferred by the Company to the Investor Education and Protection Fund in accordance with the provisions of the Companies Act, 1956 and the rules made there under.

viii. 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.

ix. 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.

x. In our opinion, and according to the information and explanations given to us, the terms and conditions of the guarantees given by the Company for loans taken by others from banks or financial institutions during the year, are not prejudicial to the interest of the Company.

xi. In our opinion, and according to the information and explanations given to us, the term loans have been applied for the purposes for which they were obtained.

xii. 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 BGJC & Associates Firm Registration Number: 003304N Chartered Accountants

Sd/- Darshan Chhajer Place : New Delhi Partner Date : 30/05/2015 Membership Number 088308




Mar 31, 2014

1. We have audited the accompanying financial statements of the Innovative Tech Pack Ltd. (''the Company''), which comprise the Balance Sheet as at 31st March, 2014, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

2. 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 in section 133 of the Companies Act ''2013 ( ''the Act '' ) ( which has superseded section 211 (3C) of Companies Act 1956 )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

3. 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.

4. 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.

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

Opinion

6. Subject to in our opinion and to the best of our information and according to the explanations given to us, the financial statement together with the notes thereon give the information required by 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 the Balance Sheet, of the state of affairs of the Company as at 31st March, 2014;

(ii) in the case of the Statement of Profit and Loss of the profit for the year ended on that date; and

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

7. As required by the Companies (Auditor''s Report) Order, 2003 (as amended) (herein after collectively referred to as the ''Order''), issued by the Central Government of India in terms of section 227 (4A) of the Companies Act, 1956, we annex hereto a statement on the matters specified in paragraph 4 & 5 of the said Order.

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

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

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

iii. The Balance Sheet , Statement of Profit & Loss and Cash Flow Statement dealt with by this report are in agreement with the books of accounts of the Company;

iv. In our opinion, the Balance Sheet , Statement of Profit & Loss and Cash Flow Statement dealt with by this report comply with the Accounting Standard referred to in section 133 of the Companies Act ''2013 ( which has superseded section 211 (3C) of Companies Act 1956 );

v. On the basis of the written representations received from the directors as on March 31,2014, and taken on record by the Board of Directors, we report that none of the directors are disqualified as on March 31,2014 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

Emphasis of matter

9. without qualifying our opinion we report that ( to be read with note no. 32 & 33 of notes to accounts of financial statement):

a) During the year company has changed its accounting policy of depreciation from straight line method to written down value method with effect from 1st April, 2013 for certain assets ( Mould, Building and Electric installations). Difference in accumulated depreciation as on 31st March, 2013 due to change in policy related to these assets amounting to Rs. 153,73,780 /- has been charged to Statement of Profit and Loss in current year as exceptional item . Further , due to change in depreciation policy current year depreciation and amortization is lower by Rs. 61,00,712 /-.

b) From the current year the Company has started providing loss on live chits on estimated basis which were provided on closure of chits till previous year. Rs.53,94,313 /- has been charged to current quarter as exceptional item.

ANNEXURE REFERRED TO IN PARAGRAPH 7 OF THE AUDITOR''S REPORT TO THE MEMBERS OF INNOVATIVE TECH PACK LTD. ON THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH 2014.

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

b) As per the explanation and information given to us, the Company has policy to physically verify all its fixed assets over a year in a phased manner which is in our opinion is reasonable having regard to the size of the Company and nature of its fixed assets. However, during the current year no verification has been done.

c) The Company has not disposed off substantial parts of its fixed assets during the year.

ii. a) The inventories have been physically verified by the management at the year end which is in our opinion is adequate.

The frequency of such verification is reasonable.

b) In our opinion and according to the information and explanation given to us, the procedure of such physical verification of inventories followed by the management is appears to be reasonable and adequate in relation to the size and nature of its operations and inventory items involved.

c) In our opinion, the Company has maintained proper records of inventories. The discrepancies noticed on physical verification of inventories as compared to book records were not material and have been properly dealt with in the books of accounts.

iii. a) In the current year under audit the company has granted loan to following parties covered in the register maintained under section 301 of the Companies Act, 1956:-

(in Rs. )

NAME OF PARTY MAX. AMOUNT OUTSTANDING CLOSING BALANCE AS At 31/03/2014

Mr. K. Sayaji Rao 21,59,021 Nil

Mr. K. Satish Rao 84,00,000 Nil

b) In our opinion and according to the information and explanations given to us , the rate of interest and other terms and conditions for such loans are not being prima facie prejudicial to the interest of the company.

c) According to the said information and explanation given to us , the parties (referred in para 4 (iii) (a) above ) to whom loan have been granted, were regular in repayment of principal; as per contractual terms.

d) According to the information and explanation given to us, there are no overdue amount of loan in respect of amount referred above for recovery for more than one year.

e) The Company has taken unsecured loan from following parties covered in the register maintained under section 301 of the companies Act 1956:-

(in Rs. )

Name of Party Maximum amount Closing balance outstanding

Mr. K.S. Rao Interest free 12,63,357 NIL

Mrs Pratibha Rao Interest free 3,55,664 NIL

Mr. K Satish Rao Interest free 25,00,000 NIL

Innovative Interest 254,51,470 219,80,550 Datamatics Ltd bearing

iv. In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with size of the Company and the nature of its business for the purchase of inventory, fixed assets and for the sale of goods & services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in the internal control system.

v. According to the information and explanation provided to us by the management, no contracts or arrangements were entered into during the year as referred to in section 301 of the Companies Act, 1956. Hence, this clause is not applicable.

vi. In our opinion and according to the information and explanations given to us, the Company has not accepted deposits from public within the meaning of section 58A/58AA of the Companies Act, 1956 or any other relevant provisions of the Act and the rules framed there under.

vii. During the year covered under audit a firm of chartered accountants had carried out internal audit of some departments/ functions of company but the scope , area covered and frequency of audit in not commensurate with the size of the Company and nature of its business.

viii. The maintenance of cost records u/s 209 (1) (d) of the Companies Act, 1956 is applicable to the company. The company has made & maintained such records , however we have not made detailed review of such records.

ix. a) According to the information and explanation given to us, the undisputed statutory dues including Provident Fund , Investors Educations Fund , income tax and sales tax, wealth tax, service tax etc have generally been regularly deposited with the appropriate authorities during the year though delay in some cases noticed.

b) In the following cases statutory dues were outstanding more than six months from the date they became payable as at year end :-

Name of statute Nature of dues Amount Period to which (in Rs. dues belongs

Central sales Central sales tax 3,306 2009-10 Tax Act

Haryana VAT Act Local sales tax 52,380 2009-10

Central sales Central sales tax 45,958 2009-10 Tax Act

Haryana VAT Act Local sales tax 5,857 2009-10

Name of statute Due date

Central sales 31st July, 2013 Tax Act

Haryana VAT Act 31st July, 2013

Central sales 31st July, 2013 Tax Act

Haryana VAT Act 31st July, 2013

c) As per the information and explanation given to us as at 31st march 2014 there were no dues of income tax, sales tax, wealth tax, service tax, excise duty, customs duty and cess etc which have not been deposited on account of any dispute.

x. The Company does not have accumulated losses at the year ended March 31st, 2014. The company has not incurred cash losses in the year covered by our audit and also in the immediately preceding financial year.

xi. As per information and explanations given by the management, in our opinion the Company has not defaulted in repayment of any loan / dues taken from bank / financial institution.

xii. In our opinion and according to the information and explanations given to us, the Company has not granted any loans and advances during the year on the basis of security by way 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, the provisions of clause

4(xiii) of Order are not applicable to the Company.

xiv. According to the information and explanations given to us, the Company is not dealing / trading in shares, securities and other investments.

xv. According to the information and explanations given to us, the Company has not given any guarantees for loan taken by others from any Bank / financial institution.

xvi. According to the information and explanations given to us the, Company has applied term loans for the purpose it was obtained.

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

xviii. The Company has not made any preferential allotment of shares during the year covered under audit.

xix. The Company had no outstanding debentures during the year.

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

xxi. Based upon audit procedures performed and according to the information and explanations given to us by the management and to the best of our knowledge, we report that no fraud on or by the Company has been noticed or reported during the course of our audit.

For BGJC & Associates CHARTERED ACCOUNTANTS (FRN- 003304N)

Sd/- DARSHAN CHHAJER Place : New Delhi (PARTNER) Date : 30.05.2014 M. No. 088308


Mar 31, 2013

1. We have audited the accompanying financial statements of the Innovative Tech Pack Limited (''the Company''), 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 significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

2. 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 in subsection (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

3. 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.

4. 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.

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

Opinion

6. We report that:

(i) During the year company has changed its accounting policy of depreciation from ''Straight Line Method'' to ''Written Down Value Method'' with effect from 1st April, 2012 for asset category Plant & Machinery only. Difference in accumulated depreciation as on 31st March, 2012 due to change in policy in relate to existing assets amounting to Rs. 3,56,97,561/- has been charged to Statement of Profit and Loss as exceptional item . Further, due to change in depreciation policy current year ''Depreciation and amortization'' is higher by Rs. 10,43,308/-. Had the earlier policy of depreciation been followed, the current year profit before tax and retained earnings would have been higher by Rs. 3,67,40,869/- (without considering tax effect). (To be read with note no.-33)

(ii) The company has not provided loss on running chit fund schemes. As a policy company shall provide for loss in the year Chit is closed, which has been the past practice ( to be read with note no.32).

7. In our opinion (to be read with matters reported in above paragraph) and to the best of our information and according to the explanations given to us, the financial statement together with the notes thereon give the information required by Act, 1956, in the manner so required and give a true and fair view in conformity with the accountingp r i n c i p l e s generally accepted in India:

(i) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2013; (ii) in the case of the Statement of Profit and Loss of the profit for the year ended on that date; and (iii) in the case of the Cash Flow Statement, of cash flows for the year ended on that date.

8. As required by the Companies (Auditor''s Report) Order, 2003 (as amended) (herein after collectively referred to as the ''Order''), issued by the Central Government of India in terms of section 227 (4A) of the Companies Act, 1956, we annex hereto a statement on the matters specified in paragraph 4 & 5 of the said Order.

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

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

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

(iii) The Balance Sheet, Statement of Profit & Loss and Cash Flow Statement dealt with by this report are in agreement with the books of accounts of the Company;

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

(v) On the basis of the written representations received from the directors as on March 31, 2013, and taken on record by the Board of Directors, we report that none of the directors are 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.

ANNEXURE TO AUDITOR''S REPORT

Annexure referred to in Paragraph 1 of the Auditor''s Report To The Members Of INNOVATIVE TECH PACK LIMITED On the Accounts for the period ended 31st March, 2013.

i) a) The company is in the process of updating its fixed assets register showing full particulars, including quantitative details and situation of fixed assets.

b) The company has policy to physically verify all assets over a period of three years. According to the explanation and information given to us, during the year Plant and Machinery at Rudrapur unit have been physically verified by the management and no discrepancy noticed.

c) During the period, the company has not disposed off substantial part of its fixed asset that affects the going concern status of the company.

ii) a) The inventory has been verified during the period by the management. In our opinion, the frequency of verification is reasonable.

b) The procedure of verification of inventories followed by the management is reasonable and adequate in relation to the size of the company and nature of its business.

c) On the basis of our examination of records of inventory, in our opinion, the company has maintained proper records of inventory and the discrepancies noticed on physical verification were not material in relation to the operations of the company and the same has been properly dealt with the books of accounts.

iii) a) The company has not granted any loans, secured or unsecured to companies, firms or other parties as covered in the register maintained under section 301 of the Act. Accordingly, the provisions of clause 4(iii) (a) to (d), of the Order are not applicable. b) The company has taken interest free as well interest bearing unsecured loans from following parties covered in the register maintained under section 301 of the Act during the period under audit.

(in Rs.) Name of Party Maximum amount outstanding Closing balance

Mr. K.S. Rao Interest free 12,38,357/- 12,38,357/-

Mrs. Pratibha Rao Interest free 15,76,369/- 1,76,369/-

Mr. K. Satish Rao Interest free 3,00,000/- 3,00,000/-

Innovative Datamatics Ltd Interest bearing 2,09,21,470/- 2,09,21,470/-

iv) 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 with regard to purchase 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 weaknesses in the internal control.

v) a) According to the information and explanation given to us, we are of the opinion that the transaction made in pursuance of contracts or arrangement entered in 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 explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the companies act, 1956 and exceeding the value of rupee five lakhs in respect of any party during the period have been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

vi) The Company has not accepted any deposit during the period from public within the meaning of section 58A, 58AA or any other relevant provisions of the companies Act, 1956.

vii) In our opinion, the company has internal audit system which needs to be strengthened.

viii) We have broadly reviewed the books of account maintained by the Company in respect of products where, pursuant to the rules made by the Central Government of India, the maintenance of cost records has been prescribed under clause (d) of sub-section (1) of section 209 of the Act, and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained.

ix) 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 etc have generally been regularly deposited with the appropriate authorities though there was delay in few cases. According to the information and explanation given to us, no undisputed amounts are payable were in arrears as at 31st March, 2013 for a period of more than six month from the date they became payable.

x) The company does not have accumulated losses as on 31st March, 2013 and it has not incurred cash losses in the current financial year ended on that date or in the immediately preceding financial period.

xi) In our opinion and according to the information and explanations given to us, the company has not defaulted in repayment of dues to a financial institution or bank as at the balance sheet date.

xii) According to the information given to us the company has not granted loans and advances on the basis of security by way of pledge of shares, debenture and other securities.

xiii) In our opinion, the company is not a chit fund or a nidhi mutual benefit fund/society. Therefore, the provisions of clause 4(xiii) of the Order are not applicable to the company.

xiv) In our opinion and according to the information and explanations given to us the company does not deals in shares, securities, debentures and other securities. The investment made in National Savings Certificate has been held by the company is in the name of its Managing Director.

xv) According to the information and explanations given to us the company has not given any guarantees for loans taken by others from banks or financial institutions.

xvi) According to the information given to us the company has used term loans for the purpose for which it was availed.

xvii) 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 raised on short-term basis have been used for long term investment.

xviii) According to the information and explanations given to us, during the period covered by our audit report the company has not made any preferential allotment of shares.

xix) According to the information and explanations given to us, during the period covered by our audit report, the company has not issued any debentures.

xx) According to the information and explanations given to us, during the period covered by our audit report no money has been raised by public issues.

xxi) According to the information and explanations given to us, no fraud on or by the company has been noticed or reported during the course of our audit.

For BGJC & Associates CHARTERED ACCOUNTANTS

(FRN- 003304N)

Sd/-

DARSHAN CHHAJER

Place: New Delhi (PARTNER)

Date : 30.05.2013 M. No. 088308


Mar 31, 2012

We have audited the attached Balance Sheet of Innovative Tech Pack Limited ("the Company") as at 31st March, 2012 , the Statement of Profit & Loss and the Cash Flow Statement of the Company for the period 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 have conducted our audit in accordance with the auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on 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.

1. As required by Companies (Auditor's Report) Order, 2003, ("the order"), as amended, issued by the Central Government in terms of section 227 (4A) of the Companies Act, 1956 ("the Act"), we enclose in the Annexure hereto a statement on the matters specified in paragraph 4 & 5 of the said Order as under.

2. Attention is drawn to this fact that during the period the company has changed policy of charging depreciation from Straight Line Method (SLM) to Written Down Value Method (WDV) with effect from 1st May' 2011 on certain assets. Difference in accumulated depreciation as on 30th April'2011 due to change in depreciation policy in relate to assets existing on that date (opening block) amounting to Rs. 543,03,865/- has been charged to Statment of Profit & Loss Account as exceptional item. Had the earlier policy of charging depreciation on Straight Line Method on certain assets been followed, current period profit before tax and reserve as on date (without considering tax effect) would have been lower by Rs. 2,720/-.

3. Further to our comments in paragraph 1 above, we report that:

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

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

c) the Balance Sheet, the Statement Of Profit & Loss and Cash Flow Statement dealt with this report are in agreement with the books of accounts;

d) in our opinion, Balance Sheet, the Statement Of Profit & Loss and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of Section 211 of the Act 1956, in so far as they apply to the company;

e) on the basis of the written representations received from the directors as on 31st March'2012 and taken on record by the Board of Directors, we report that 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 (1) of section 274 of the Act; and

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 give the information required by the Act, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

i. in the case of Balance Sheet, of the state of affairs of the Company as at 31st March' 2012;

ii. in the case of Statement of Profit & Loss , of the profit of the Company for the period ended on, that date and

iii. in the case of Cash Flow Statements, of the cash flows of the Company for the period ended on that date.

ANNEXURE TO AUDITOR'S REPORT

Annexure referred to in Paragraph 1 of the Auditor's Report To The Members Of INNOVATIVE TECH PACK LIMITED On the Accounts for the period ended 31st March'2012.

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

b) The company has defined policy to physically verify all assets over a period of three years from this period. According to the explanation and information given to us fixed assets shall be physically verified by the management in the next year.

c) During the period, the company has not disposed off substantial part of its fixed asset that affects the going concern status of the company.

ii) a) The inventories have been verified during the period by the management. In our opinion, the frequency of verification is reasonable.

b) The procedure of verification of inventories followed by the management is reasonable and adequate in relation to the size of the company and nature of its business.

c) On the basis of our examination of records of inventory, in our opinion, the company has maintained proper records of inventory and the discrepancies noticed on physical verification were not material in relation to the operations of the company and the same has been properly dealt with the books of accounts.

iii) d) The company has not granted any loans, secured or unsecured to companies, firms or other parties as covered in

the register maintained under section 301 of the Act . Accordingly, the provisions of clause 4(iii) (b) to (d), of the Order are not applicable.

e) The company has taken interest free as well interest bearing unsecured loans from following parties covered in the register maintained under section 301 of the Act during the period under audit.

(in Rs.)

Name of Party Maximum amount outstanding Closing balance

Mr. K.S. Rao Interest free 89,55,456/- NIL

Mrs. K. Pratibha Rao Interest free 413,730/- 355,664/-

Mr. K. Satish Rao Interest free 31,00,000/- NIL

Innovative Datamatics Ltd Interest bearing 206,58,951/- 172,40,069/-

(f) on the basis of terms and conditions of loan, we have the view that rate of interest and other terms and conditions of interest bearing loan and other loans are prima facie not prejudicial to the interest of the company. (g) The payment of principal and interest are as per agreed terms.

iv) 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 with regard to purchase 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 weaknesses in the internal control.

v) a) According to the information and explanation given to us, we are of the opinion that the transaction made in pursuance

of contracts or arrangement entered in 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 explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the companies act, 1956 and exceeding the value of rupee five lakhs in respect of any party during the period have been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

vi) The Company has not accepted any deposit during the period from public within the meaning of section 58A, 58AA or any other relevant provisions of the Companies Act' 1956.

vii) In our opinion, the company has an internal audit system commensurate with its size and nature of business which needs to be improved in terms of periodicity.

viii) We have broadly reviewed the books of account maintained by the company in respect of products where, pursuant to the rules made by the Central government of India, the maintenance of cost records has been prescribed under section 209(1) (d) of the Act, and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained.

ix) a) 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 etc have generally been regularly deposited with the appropriate authorities though there were delays in some cases. According to the information and explanation given to us, following undisputed amounts are payable were in arrears as at 31st March'2012 for a period of more than six month from the date they became payable:-

Particulars Amount outstanding Period to which dues are (in Rs.) related

Wealth Tax 251,886/-* FY 2006-07 to FY 2009-10

*since paid.

b) According to the information and explanation given to us, there were no dues of Income-Tax, Sales-Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess etc which have not been deposited on account of any dispute except given below:

Name statute Nature of dues Amount unpaid Related Period Forum where (inRs.) dispute is pending

Central Excise Demand for 3,42,750 2008-09 CESTAT Act, 1944 Modvat Claim

FERA Penalty 15,00,000 1993-1998 Tribunal

x) The company does not has accumulated losses as on 31st March'2012 and it has not incurred cash losses in the current financial period ended on that date or in the immediately preceding financial period.

xi) In our opinion and according to the information and explanations given to us, the company has not defaulted in repayment of dues to a financial institution or bank as at the Balance Sheet date.

xii) According to the information given to us the company has not granted loans and advances on the basis of security by way of pledge of shares, debenture and other securities.

xiii) In our opinion, the company is not a chit fund or a nidhi mutual benefit fund /society. Therefore, the provisions of clause 4(xiii) of the Order are not applicable to the company.

xiv) In our opinion and according to the information and explanations given to us the company does not deals in shares, securities, debentures and other securities. The investment made in National Savings Certificate has been held by the company is in the name of its Managing Director. .

xv) According to the information and explanations given to us the company has not given any guarantees for loans taken by others from banks or financial institutions.

xvi) According to the information given to us the company has used term loans for the purpose for which it were availed.

xvii) 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 raised on short-term basis have been used for long term investment.

xviii) According to the information and explanations given to us, during the period covered by our audit report the company has not made any preferential allotment of shares.

xix) According to the information and explanations given to us, during the period covered by our audit report, the company has not issued any debentures.

xx) According to the information and explanations given to us, during the period covered by our audit report no money has been raised by public issues.

xxi) According to the information and explanations given to us, no fraud on or by the company has been noticed or reported during the course of our audit.

For BGJC & Associates CHARTERED ACCOUNTANTS (FRN- 003304N)

Sd/-

DARSHAN CHHAJER

Place : New Delhi (PARTNER) Date : 30.05.2012 M. No. 088308






Sep 30, 2010

We have audited the attached balance sheet of Innovative Tech Pack Limited ("the Company") as at September 30th, 2010 and the profit & loss account and the cash flow statement of the Company for the period 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.

We have conducted our audit in accordance with the auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on 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.

1. As required by Companies (Auditors Report) Order, 2003, ("the order"), as amended, issued by the Central Government in terms of section 227 (4A) of the Companies Act, 1956 (" the Act"), we enclose in the Annexure hereto a statement on the matters specified in paragraph 4 & 5 of the said Order as under.

2. Further to our comments in paragraph 1 above, we report that:

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

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

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

d) in our opinion, the balance sheet , profit & loss account and cash flow statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of Section 211 of the Act 1956, in so far as they apply to the company;

e) on the basis of the written representations received from the directors as on 30th September2010 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 30th September 2010 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Act; and

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 give the information required by the Act, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

i. in the case of balance sheet, of the state of affairs of the Company as at September 30, 2010;

ii. in the case of profit & loss account, of the profit of the Company for the period ended on, that date and

iii. in the case of Cash flow statements, of the cash flows of the Company for the period ended on that date.

ANNEXURE TO AUDITORS REPORT

Annexure referred to in Paragraph 1 of the Auditors Report To The Members of INNOVATIVE TECH PACK LIMITED on the Accounts for the period ended 30th September 2010

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

b) According to the explanation and information given to us certain fixed assets have been physically verified by the management during the period under audit. .

c) During the period, the company has not disposed off substantial part of its fixed asset that affect the going concern status of the company.

ii) a) The inventory (except stocks lying with third parties) has been verified during the period by the management. In our opinion, the frequency of verification is reasonable.

b) The procedure of verification of inventories followed by the management is reasonable and adequate in relation to the size of the company and nature of its business.

c) On the basis of our examination of records of inventory, in our opinion, the company has maintained proper records of inventory and the discrepancies noticed on physical verification were not material in relation to the operations of the company and the same has been properly dealt with the books of accounts.

iii) a) The company has not granted any loans, secured or unsecured to companies, firms or other parties as covered in the register maintained under section 301 of the Act . Accordingly, the provisions of clause 4(iii) (b) to (d), of the Order are not applicable.

e) The company has taken interest free unsecured loans from three parties covered in the register maintained under section 301 of the Act during the period under audit. Accordingly the provisions of clause 4(iii) (f) & (g), of the Order are not applicable. The maximum amount outstanding was Rs.128.50 lacs.

iv) 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 with regard to purchase 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 weaknesses in the internal control.

v) a) According to the information and explanation given to us, we are of the opinion that the transaction made in pursuance of contracts or arrangement entered in 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 explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the companies act, 1956 and exceeding the value of rupee five lakhs in respect of any party during the period have been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

vi) The Company has not accepted any deposit during the period from public within the meaning of section 58A, 58AA or any other relevant provisions of the companies Act1956.

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

viii) As explained to us by the management and according to the information given to us, maintenance of cost records as prescribed under section 209(1) (d) of the Companies Act, 1956 is not applicable to the company.

ix) a) 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 etc have generally been regularly deposited with the appropriate authorities though there was delay in few cases.

According to the information and explanation given to us, following undisputed amounts are payable were in arrears as at 30.09.2010 for a period of more than six month from the date they became payable:-

Particulars Amount outstanding

(in Rs.)

Wealth Tax 157,790

Fringe Benefit Tax 723,007

b) According to the information and explanation given to us, there are no dues of sale tax, income tax, customs duty, wealth tax, excise duty and cess which have not been deposited on account of any dispute except given below:

Name statue Nature of Amount Related Forum where

Dues Unpaid (in Rs.) Period Dispute is Pending

Central Excise Act1944 Demand for Modvat Claim 15,42,750 2008-09 CESTAT

FERA Penalty 15,00,000 1993-1998 Tribunal



x) The company has accumulated losses amounting to Rs.248.00 Lacs as on 30.09.2010 but the company has not incurred cash losses in the financial period ended on that date or in the immediately preceding financial year.

xi) In our opinion and according to the information and explanations given to us, the company has not defaulted in repayment of dues to a financial institution or bank as at the balance sheet date.

xii) According to the information given to us the company has not granted loans and advances on the basis of security by way of pledge of shares, debenture and other securities.

xiii) In our opinion, the company is not a chit fund or a nidhi mutual benefit fund /society. Therefore, the provisions of clause 4(xiii) of the Order are not applicable to the company.

xiv) In our opinion and according to the information and explanations given to us, proper records have been maintained with respect to transactions and contracts relating to dealing or trading in shares, securities, debentures and other investments, and timely entries have been made therein. The shares, securities, debentures and other securities have been held by the company is in its own name.

xv) According to the information and explanations given to us the company has not given any guarantees for loans taken by others from banks or financial institutions.

xvi) According to the information given to us the company has used term loans for the purpose for which it were raised.

xvii) 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 raised on short-term basis have been used for long term investment. No long-term funds have been used to finance short-term assets .

xviii) According to the information and explanations given to us, during the period covered by our audit report the company has not made any preferential allotment of shares.

xix) According to the information and explanations given to us, during the period covered by our audit report, the company has not issued any debentures.

xx) According to the information and explanations given to us, during the period covered by our audit report no money has been raised by public issues.

xxi) According to the information and explanations given to us, no fraud on or by the company has been noticed or reported during the course of our audit.

For BGJC & Associates

CHARTERED ACCOUNTANTS

(Firm Registration No: 003304N)

PLACE: New Delhi DARSHAN CHHAJER

DATE: 07.01.2011 (PARTNER)

Membership No: 088308

 
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