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Auditor Report of Jayant Agro Organics Ltd.

Mar 31, 2015

We have audited the accompanying standalone financial statements of Jayant agro-organics Limited, which comprises the Balance Sheet as at March 31, 2015, 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

The Company's Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance 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 the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the 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 internal financial control, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditors' 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 the provisions of the Act and the Rules made thereunder. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. 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 auditors' 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, 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 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.

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

opinion

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

(a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2015;

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

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

Report on other Legal and regulatory requirements

1. As required by the Companies (Auditor's Report) Order, 2015 ("the Order") issued by the Central Government of India in terms of sub-section 11 of section 143 of the Act, we give in the Annexure, a statement on the matters specified in paragraphs 3 and 4 of the Order.

2. As required by section 143(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 accounts 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 and the Statement of Profit and Loss dealt with by this report are in agreement with the books of account;

d) in our opinion, the Balance Sheet and the Statement of Profit and Loss 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 of the Company, taken on record by the Board of Directors, we report that none of the directors is disqualified as on March 31, 2015 for being appointed as a director in terms of Section 164(2) of the Act;

f) with respect to the other matters included in the Auditor's Report and to the best of our knowledge and according to the information and explanations given to us :

i. The Company has disclosed the impact of pending litigations on its financial position in Note 31 of the financial statements

ii. Since the company does not have any long term contracts including of derivatives, there are no material foreseeable losses on account of such contracts.

iii. Amounts required to be transferred to the Investor Education and Protection Fund is transferred by the Company on time.

ANNEXURE TO THE AUDITORS' REPORT

Referred to in paragraph (1) of our report of even date on the financial statements for the year ended March 31, 2015 of Jayant Agro-Organics Limited and on the basis of such checks as we considered appropriate and according to the information and explanations given to us, we state that:

i. (a) The Company has generally maintained proper books and records showing full particulars, including quantitative details and situations of fxed assets.

(b) The Company has a regular programme of physical verification of its fxed assets by which all fixed assets are physically verified, periodically. In our opinion, periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its business. According to information and explanations given to us, no material discrepancies were noticed on such verification.

ii. (a) As explained to us, inventories have been physically verified during the year by the Company's management. In our opinion the frequency of physical verification is reasonable.

(b) In our opinion and according 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) On the basis of our examination of the inventory records, we are of the opinion that, the Company is maintaining proper records of its inventory. The discrepancies noticed during physical verification of inventory as compared to book records were not material and have been properly dealt with in the books of account.

iii. In our opinion and according to the information and explanations given to us, the Company has not granted any loans, secured or unsecured, to companies, firms or other parties covered in the register required to be maintained under Section 189 of the Companies Act, 2013.

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 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.

v. In our opinion and according to the information and explanations given to us, the company has not accepted any deposit from the public.

vi. According to the information and explanations given to us, the Central Government vide Companies (Cost records and audit) Rules, 2014 prescribed the maintenance of cost records under sub-section (1) of section 148 of the Companies Act, 2013. The Company has maintained the cost records and accounts as required by the Companies (Cost records and audit) Rules, 2014.

vii. In respect of statutory dues:

(a) According to the information and explanation given to us and according to the records of the Company as examined by us, undisputed statutory dues including, income tax, custom duty, excise duty, service tax, cess and other statutory dues have been regularly deposited during the year with the appropriate authorities. No undisputed amounts payable were outstanding as at March 31, 2015 for a period of more than six months from the date on which they become payable.

(b) According to the information and explanation given to us and based on the records of the Company examined by us, dues of income tax, VAT and other statutory dues outstanding as on March 31, 2015 which have not been deposited on account of any dispute are tabulated below :-

name of statute nature of dues amount Period to which the amount relates

Customs Act, 1944 Customs 190.00 2003-04

23.13 2005-06

Income Tax Act, 1961 Income Tax 39.45 2008-09

142.37 2010-11

56.88 2011-12

3.03 2012-13

Chapter V of Finance Service Tax 76.75 Various years covering the Act,1994 periods from 2006-2013 25.86 Various years covering the periods from 2006-2013

15.74 Various years covering the periods from 2005-2013

8.36 Various years covering the periods from 2011-2013

Name of statute Forum where dispute is pending

Customs Act, 1944 Commissioner of Customs CESTAT

Income Tax Act, 1961 ITAT

CIT (Appeals) DCIT CIT (Appeals) DCIT

CIT (Appeals) DCIT

Chapter V of Finance Act,1994 Commissioner of Central Excise

Commissioner (Appeal)

Assistant Commissioner/ Deputy Commissioner

CESTAT

(c) Amount required to be transferred to the Investor Education and Protection Fund in accordance with provisions of Companies Act, 1956 and rules made there under is transferred by the company to such fund on timely basis.

viii. The company neither has accumulated losses nor incurred cash losses during the financial year covered by our report and immediately preceding financial year.

ix. According to the information and explanations given to us, and based on the verification of records of the company, the company has not defaulted in repayment of dues to banks. The company did not take any loans from financial institutions or debenture holders.

x. According to the information and explanations given to us and representations made by the management, the Company has given guarantee for loans taken from banks or financial institutions by its holding company, subsidiary as well as entities controlled by directors and relatives, details of which are provided in Note No. 31. In our opinion the terms and conditions of these guarantees are not prejudicial to the interest of the Company.

xi. According to the information and explanations given to us, the company has applied the term loans for the purpose for which they were obtained.

xii. To the best of our knowledge and belief and according to the information and explanation given to us, no fraud on or by the Company has been noticed or reported, during the year under audit.

For t.P. ostwal & associates (regd.)

Chartered Accountants

(Registration No. 124444W)

T. P. ostwal

Place: Mumbai (Partner)

date: May 13, 2015 Membership No. 30848


Mar 31, 2014

We have audited the accompanying financial statements of JAYANT AGRO-ORGANICS LIMITED, which comprise the Balance Sheet as at March 31, 2014, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ("the Act") read with the General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate affairs in respect of Section 133 of the Companies Act, 2013. 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. Auditors'' 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 auditors'' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

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

Opinion

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

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

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

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

Report on Other Legal and Regulatory Requirements

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

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

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

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

c. the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account:

d. in our opinion, the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement comply with the Accounting Standards referred to in subsection (3C) of section 211 of the Companies Act, 1956 read with the General Circular 15/2013 dated 13 th September, 2013 of the Ministry of Corporate affairs in respect of Section 133 of the Companies Act, 2013;

e. on the basis of written representations received from the directors as on March 31, 2014, and taken on record by the Board of Directors, none of the directors is 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.

ANNEXURE TO THE AUDITORS'' REPORT Referred to in paragraph (3) of our report of even date on the financial statements for the year ended March 31, 2014 of Jayant Agro-Organics Limited and on the basis of such checks as we considered appropriate and in terms of the information and explanations given to us, we state that:

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

(b) The Company has a regular programme of physical verification of its fixed assets by which all fixed assets are physically verified periodically. In our opinion, periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets. According to information and explanations given to us, no material discrepancies were noticed on such verification.

(c) In our opinion and according to the information and explanations given to us, the Company has not made any substantial disposal of fixed assets during the year and going concern status of the Company is not affected.

ii. (a) As explained to us, inventories have been physically verified during the year by the Company''s management. In our opinion the frequency of verification is reasonable.

(b) In our opinion and according 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) On the basis of our examination of the inventory records, we are of the opinion that, the Company is maintaining proper records of its inventory. The discrepancies noticed during physical verification of inventory as compared to book records were not material and have been properly dealt with in the books of account.

iii. (a) In our opinion and according to the information and explanations given to us, the Company has not granted any loans, secured or unsecured, to companies, firms or other parties covered in the register required to be maintained under Section 301 of the Companies Act, 1956. Therefore the provisions of sub clauses (a), (b), (c) and (d) of the Paragraph 4(iii) of the Order are not applicable to the Company.

(b) The Company has not taken any unsecured loans from companies, firms or other parties, covered in the register required to be maintained under Section 301 of the Companies Act, 1956. Therefore, the provisions of sub-clause (e), (f) and (g) of Paragraph 4 (iii) of the 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 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 systems

v. (a) In our opinion and according to the information and explanations given to us, contracts or arrangements, the particulars of which need to be entered into the register maintained under section 301 of the Companies Act,1956 have been properly recorded.

(b) Transactions made in pursuance of such contracts or arrangements have been made at reasonable prices having regard to prevailing market prices at relevant time.

vi. In our opinion and according to the information and explanation given to us, the Company has not accepted any deposit from the public. Accordingly the provisions of Paragraph 4(vi) of the Order are not applicable to the Company.

vii. In our opinion, the internal audit functions carried out during the year by firm of Chartered Accountants appointed by the management have been commensurate with the size of the Company and the nature of its business.

viii. According to the information and explanations given to us, Central Government vide Companies Cost Records Rules, 2011 prescribed, maintenance of the cost records under Section 209(1) (d) of the Companies Act, 1956. The company has maintained the cost records and accounts as required by Companies Cost Records Rules, 2011.

ix. In respect of statutory dues:

(a) According to the information and explanation given to us and according to the records of the Company as examined by us, undisputed statutory dues including, income tax, custom duty, excise duty, service tax, cess and other statutory dues have been regularly deposited during the year with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at March 31, 2014 for a period of more than six months from the date on which it becomes payable.

(b) According to the information and explanation given to us and based on the records of the Company examined by us, the dues of value added tax, excise duty, central sales tax as at March 31, 2014 which have not been deposited on account of any dispute are tabulated below:

Name of the Nature of Amount Period to which it relates statute dues

Customs Act, Customs 200.00 A.Y 2004-2005 1944 A.Y 2005-2006

Income Tax Act, Income Tax 39.45 A.Y. 2009-2010 1961 142.37 A.Y. 2010-2011

56.88 A.Y. 2011-2012

Chapter V of Service Tax 95.53 Various years covering the Finance Act, 1994 periods from 2006-2013

27.59 Various Years covering the periods from 2006-2013

27.07 Various Years covering the periods from 2005-2013

8.93 Various Years covering the periods from 2011-2013

Name of the statute Forum where pending

Customs Act, 1944 Commissioner of Customs

Income Tax Act, 1961 ITAT

CIT (Appeal)

CIT (Appeal)

Chapter V of Finance Act, 1994 Commissioner of Central Excise

Commissioner (Appeal)

Assistant Commissioner/ Deputy Commissioner

CESTAT

x. The Company neither has accumulated losses nor incurred cash losses during the financial year covered by our report and immediately preceding financial year. Accordingly provisions of paragraph 4(x) of the Order are not applicable.

xi. According to the information and explanation given to us, and based on the verification of records of the Company, the Company has not defaulted in repayment of dues to financial institutions and banks.

xii. In our opinion and according to the information and explanations given to us, the Company has not granted any loans or advances on the basis of security by way of pledge of shares, debenture or any other securities. Accordingly the provision of Paragraph 4(xii) of the order is not applicable to the Company.

xiii. In our opinion and according to the information and explanations given to us, the Company is not a chit fund or a Nidhi/ mutual benefit fund/society. Accordingly, the provision of Paragraph 4(xiii) of the said Order is not applicable to the Company.

xiv. As per records of the Company as examined by us and the information and explanations given to us, Company is not dealing or trading in shares, securities and debentures and other investments. Accordingly the provision of Paragraph 4(xiv) of the Order is not applicable to the Company.

xv. According to the information and explanations given to us, and the representations made by the management, the Company has given guarantee for loans taken from banks or financial institutions by its subsidiary as well as group companies details of which are provided in notes to accounts Note No. 31. In our opinion the terms and conditions of these guarantees are not prejudicial to the interest of the Company.

xvi. In our opinion and according to the information and explanations given to us term loan taken by the Company has been applied for the purpose for which they were raised during the year under audit.

xvii. In our opinion and according to the information and explanations given to us, and on an overall examination of the books of accounts of the Company, we report that no funds raised on a short-term basis, have been used for long-term investment and vice-versa.

xviii. According to the information and explanation given to us, during the year the Company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956 during the year.

xix. In our opinion and according to the information and explanations given to us, the Company has not issued any secured debentures during the year covered by our report. Accordingly, the provisions of Paragraph 4(xix) of the Order are not applicable to the Company.

xx. During the year, the Company has not raised any money by way of public issues of shares.

xxi. To the best of our knowledge and belief and according to the information and explanations given to us, no fraud on or by the Company has been noticed or reported, during the year under audit.

For T. P. Ostwal & Associates (Regd.)

Chartered Accountants (Registration No. 124444W) T. P. Ostwal Place : Mumbai (Partner)

Dated : May 17, 2014 Membership No. 30848


Mar 31, 2013

Report on the Financial Statements

We have audited the accompanying financial statements of JAYANT AGRO-ORGANICS LIMITED, which comprise the Balance Sheet as at March 31, 2013, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

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

Auditors'' 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 auditors'' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

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

Opinion

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

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

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

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

Report on Other Legal and Regulatory Requirements

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

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

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

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

c. the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account:

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

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

ANNEXURE TO THE AUDITORS'' REPORT

Referred to in paragraph (3) of our report of even date on the financial statements for the year ended March 31, 2013 of Jayant Agro-Organics Limited and on the basis of such checks as we considered appropriate and in terms of the information and explanations given to us, we state that:

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

(b) The Company has a regular programme of physical verification of its fixed assets by which all fixed assets are physically verified periodically. In our opinion, periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets. According to information and explanations given to us, no material discrepancies were noticed on such verification.

(c) In our opinion and according to the information and explanations given to us, the Company has not made any substantial disposal of fixed assets during the year and going concern status of the company is not affected.

ii. (a) As explained to us, inventories have been physically verified during the year by the Company''s management. In our opinion the frequency of verification is reasonable.

(b) In our opinion and according 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) On the basis of our examination of the inventory records, we are of the opinion that, the Company is maintaining proper records of its inventory. The discrepancies noticed during physical verification of inventory as compared to book records were not material and have been properly dealt with in the books of account.

iii. (a) I n our opinion and according to the information and explanations given to us, the Company has not granted any loans, secured or unsecured, to companies, firms or other parties covered in the register required to be maintained under Section 301 of the Companies Act, 1956. Therefore the provisions of sub clauses (a), (b), (c) and (d) of the Paragraph 4(iii) of the Order are not applicable to the Company.

(b) The Company has not taken any unsecured loans from companies, firms or other parties, covered in the register required to be maintained under Section 301 of the Companies Act, 1956. Therefore, the provisions of sub-clause (e), (f) and (g) of Paragraph 4(iii) of the 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 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 systems

v. (a) In our opinion and according to the information and explanations given to us, contracts or arrangements, the particulars of which need to be entered into the register maintained under section 301 of the Companies Act,1956 have been properly recorded.

(b) Transactions made in pursuance of such contracts or arrangements have been made at reasonable prices having regard to prevailing market prices at relevant time.

vi. In our opinion and according to the information and explanation given to us, the Company has not accepted any deposit from the public. Accordingly the provisions of Paragraph 4(vi) of the Order are not applicable to the Company.

vii. In our opinion, the internal audit functions carried out during the year by firm of Chartered Accountants appointed by the management have been commensurate with the size of the Company and the nature of its business.

viii. According to the information and explanations given to us, Central Government vide Companies Cost Records Rules prescribed, maintenance of the cost records under Section 209(1) (d) of the Companies Act, 1956. The company has maintained the cost records and accounts as required by Companies Cost Records Rules.

ix. In respect of statutory dues:

(a) According to the information and explanation given to us and according to the records of the Company as examined by us, undisputed statutory dues including, income tax, custom duty, excise duty, service tax, cess and other statutory dues have been regularly deposited during the year with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at March 31, 2013 for a period of more than six months from the date on which it becomes payable.

(b) According to the information and explanation given to us and based on the records of the Company examined by us, the dues of value added tax, excise duty, central sales tax as at March 31, 2013 which have not been deposited on account of any dispute are tabulated below:

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

The Central Excise Excise duty/ 122.60 Act,1944 Service Tax

27.59

Income Tax Income Tax 39.45 Act, 1961 142.37

The Customs Customs duty 200.00 Act, 1962

Name Period to which it Forum where relates pending

The Central Various years Commissioner of covering the periods Central Excise from 2006-2013

The Central Various Years Commissioner of covering the periods Central Excise & from 2006-2013 Commissioner (Appeal)

The Central A.Y. 2009-2010 ITAT A.Y. 2010-2011 (CIT (Appeal)

A.Y 2004-2005 Commissioner of A.Y 2005-2006 Customs

x. The company neither has accumulated losses nor incurred cash losses during the financial year covered by our report and immediately preceding financial year.

xi. According to the information and explanation given to us, and based on the verification of records of the Company, the Company has not defaulted in repayment of dues to financial institutions and banks.

xii. I n our opinion and according to the information and explanations given to us, the Company has not granted any loans or advances on the basis of security by way of pledge of shares, debenture or any other securities. Accordingly the provision of Paragraph 4(xii) of the order is not applicable to the Company.

xiii. I n our opinion and according to the information and explanations given to us, the Company is not a chit fund or a Nidhi/ mutual benefit fund/society. Accordingly, the provision of Paragraph 4(xiii) of the said Order is not applicable to the Company.

xiv. As per records of the Company as examined by us and the information and explanations given to us, Company is not dealing or trading in shares, securities and debentures and other investments. Accordingly the provision of Paragraph 4(xiv) of the Order is not applicable to the Company.

xv. According to the information and explanations given to us, and the representations made by the management, the Company has given guarantee for loans taken from banks or financial institutions by its subsidiary as well as group companies details of which are provided in notes to accounts Note No. 33. In our opinion the terms and conditions of these guarantees are not prejudicial to the interest of the Company.

xvi. In our opinion and according to the information and explanations given to us term loan taken by the Company has been applied for the purpose for which they were raised during the year under audit.

xvii. In our opinion and according to the information and explanations given to us, and on an overall examination of the books of accounts of the Company, we report that no funds raised on a short-term basis, have been used for long-term investment and vice-versa.

xviii. According to the information and explanation given to us, during the year the Company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956 during the year.

x i x . I n our opinion and according to the information and explanations given to us, the Company has not issued any secured debentures during the year covered by our report. Accordingly, the provisions of Paragraph 4(xix) of the Order are not applicable to the Company.

xx. During the year, the Company has not raised any money by way of public issues of shares.

x x i . T o the best of our knowledge and belief and according to the information and explanations given to us, no fraud on or by the Company has been noticed or reported, during the year under audit.

T. P. Ostwal & Associates (Regd.)

Chartered Accountants

(Registration No. 124444W)

Sharad Jain

Place : Mumbai (Partner)

Dated : May 30, 2013 M.NO.106958


Mar 31, 2012

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

2. We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material 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.

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

4. Further to our comments in the annexure referred to in paragraph (3) above, we report that :

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

b. in our opinion, proper books of account as required by Law have been kept by the Company, so far as it appears from our examination of those books;

c. the Balance Sheet, Statement of Profit and Loss and also Cash Flow Statement dealt with by this report are in agreement with the books of account;

d. in our opinion, the Balance Sheet, Statement of Profit and Loss and also Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in sub-section (3C) of the Section 211 of the Companies Act, 1956;

e. on the basis of the written representations received from the directors of the Company, taken on record by the Board of Directors, we report that none of the directors is 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 Companies Act, 1956;

f. in our opinion and to the best of our information and according to the explanations given to us, the said accounts read with the notes thereon, give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

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

(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 the Cash Flows for the year ended on that date.

ANNEXURE TO THE AUDITORS' REPORT

Referred to in paragraph (3) of our report of even date on the financial statements for the year ended 31s1 March, 2012 of Jayant Agro-Organics Limited and on the basis of such checks as we considered appropriate and in terms of the information and explanations given to us, we state that:

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

(b) The Company has a regular programme of physical verification of its fixed assets by which all fixed assets are physically verified periodically. In our opinion, periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets. According to information and explanations given to us, no material discrepancies were noticed on such verification.

(c) In our opinion and according to the information and explanations given to us, the Company has not made any substantial disposal of fixed assets during the year and going concern status of the company is not affected.

ii. (a) As explained to us, inventories have been physically verified during the year by the Company's Management. In our opinion the frequency of verification is reasonable.

(b) In our opinion and according 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.

(e) On the basis of our examination of the inventory records, we are of the opinion that, the Company is maintaining proper records of its inventory. The discrepancies noticed during physical verification of inventory as compared to book records were not material and have been properly dealt with in the books of account.

iii. (a) In our opinion and according to the information and explanations given to us, the Company has not granted any loans, secured or unsecured, to companies, firms or other parties, covered in the register required to be maintained under Section 301 of the Companies Act, 1956. Therefore the provisions of sub-clauses (a), (b), (c) and (d) of the Paragraph 4(iii) of the Order are not applicable to the Company.

(b) The Company has not taken any unsecured loans from companies, firms or other parties, covered in the register required to be maintained under Section 301 of the Companies Act, 1956. Therefore, the provisions of sub-clauses (e), (f) and (g) of Paragraph 4(iii) of the 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 sale of goods and serv ices. During the course of our audit, we have not observed any continuing failure to correct major weakness in internal control systems.

v. In our opinion and according to the information and explanations given to us, there are no contracts or arrangements, the particulars of which need to be entered into the register maintained under Section 301 of the Companies Act, 1956. Accordingly, provision of Paragraph 4( v) of the Order is not applicable.

vi. In our opinion and according to the information and explanation given to us, the Company has not accepted any deposit from the public. Accordingly, the provisions of Paragraph 4(vi) of the Order are not applicable to the Company.

vii. In our opinion, the internal audit function carried out during the year by firm of Chartered Accountants appointed by the Management have been commensurate with the size of the Company and the nature of its business.

viii. According to the information and explanations given to us, maintenance of the cost records has not been prescribed by the central government under Section 209( 1) (d) of the Companies Act, 1956. Accordingly, provision of Paragraph 4 (viii) of the Order is not applicable to the Company.

ix. In respect of statutory dues:

(a) According to the information and explanation given to us and according to the records of the Company as examined by us, undisputed statutory dues including income tax. custom duty, excise duty, service tax, cess and other statutory dues have been regularly deposited during the year with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31M March. 2012 for a period of more than six months from the date on which it becomes payable.

(b) According to the information and explanation given to us and based on the records of the Company examined by us. the dues of value added tax, excise duty, central sales tax and income tax as at 31st March, 2012 which have not been deposited on account of any dispute are tabulated below:

(Rs. in Lacs)

Name of the Nature of dues Amount Period to which it Forum where statute relates pending

Central Excise Excise Duty 66.65 Various years Commissioner of Act, 1944 covering the periods Central Excise from 2001-2007

Commissioner of 136.15 Various years Central Excise & covering the periods Commissioner from 2008-2011 (Appeal)

Income Tax Income Tax 39.45 A.Y. 2009-2010 CIT (Appeal) Act, 1961

x The company neither has accumulated losses nor incurred cash losses during the financial year covered by our report and immediately preceding financial year.

xi According to the information and explanation given to us, and based on the verification of records of the Company, the Company has not defaulted in repayment of dues to financial institutions and banks.

xii. In our opinion and according to the information and explanations given to us, the Company has not granted any loans or advances on the basis of security by way of pledge of shares, debenture or any other securities. Accordingly, the provision of Paragraph 4(xii) of the Order is not applicable to the Company.

xiii. In our opinion and according to the information and explanations given to us, the Company is not a chit fund or a Nidhi/ mutual benefit fund/society. Accordingly, the provision of Paragraph 4(xiii) of the said Order is not applicable to the Company.

xiv. As per records of the Company as examined by us and the information and explanations given to us. Company is not dealing or trading in shares, securities and debentures and other investments. Accordingly, the provision of Paragraph 4(xiv) of the Order is not applicable to the Company.

xv. According to the information and explanations given to us, and the representations made by the Management, the Company has given guarantee for loans taken from banks or financial institutions by its subsidiary as well as group Companies details of which are provided in notes to accounts Note No. 36. In our opinion the terms and conditions of these guarantees are not prejudicial to the interest of the Company.

xvi. In our opinion and according to the information and explanations given to us, term loan taken by the Company has been applied for the purpose for which they were raised during the year under audit.

xvii. In our opinion and according to the information and explanations given to us, and on an overall examination of the books of accounts of the Company, we report that no funds raised on a short-term basis, have been used for long-term investment and vice-versa.

xviii. According to the information and explanation given to us, during the year the Company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956 during the year.

xix. In our opinion and according to the information and explanations given to us, the Company has not issued any secured debentures during the year covered by our report. Accordingly, the provisions of Paragraph 4(xix) of the Order are not applicable to the Company.

xx During the year, the Company has not raised any money by way of public issue of shares.

xxi. To the best of our knowledge and belief and according to the information and explanations given to us, no fraud on or by the Company has been noticed or reported, during the year under audit.

For T. P. Ostwal & Associates (Regd.)

Chartered Accountants

(Registration No. 124444W)

T. P. Ostwal

Place: Mumbai. (Partner)

Date : August 4, 2012 Membership No. 30848


Mar 31, 2011

1. We have audited the attached Balance Sheet of JAYANT AGRO-ORGANICS LIMITED as at 31st March, 2011, Profit & Loss Account and the Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material 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.

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

4. Further to our comments in the annexure referred to in paragraph (3) above, we report that :

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

b. in our opinion, proper books of account as required by Law have been kept by the Company, so far as it appears from our examination of those books;

c. the Balance Sheet, Profit and Loss Account and also Cash Flow Statement dealt with by this report are in agreement with the books of account;

d. in our opinion, the Balance Sheet, Profit and Loss Account and also Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in sub-section (3C) of the Section 211 of the Companies Act, 1956;

e. on the basis of the written representations received from the Directors of the Company, taken on record by the Board of Directors, we report that none of the directors are disqualified as on 31st March, 2011 from being appointed as a director in terms of clause (g) of sub-section (1) 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 accounts read with the notes thereon, give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

(i) in the case of Balance Sheet, of the state of affairs of the Company as at 31st March, 2011;

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

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

ANNEXURE TO THE AUDITORS' REPORT

Referred to in paragraph (3) of our report of even date on the financial statements for the year ended 31st March, 2011 of Jayant Agro-Organics Limited and on the basis of such checks as we considered appropriate and in terms of the information and explanations given to us, we state that:

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

(b) The Company has a regular programme of physical verification of its fixed assets by which all fixed assets are physically verified periodically. In our opinion, periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets. According to information and explanations given to us, no material discrepancies were noticed on such verification;

(c) In our opinion and according to the information and explanations given to us, the Company has not made any substantial disposal of fixed assets during the year and going concern status of the company is not affected.

ii. (a) As explained to us, inventories have been physically verified during the year by the Company's management. In our opinion the frequency of verification is reasonable.

(b) In our opinion and according 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) On the basis of our examination of the inventory records, we are of the opinion that, the Company is maintaining proper records of its inventory. The discrepancies noticed during physical verification of inventory as compared to book records were not material and have been properly dealt with in the books of account.

iii. (a) In our opinion and according to the information and explanations given to us, the Company has not granted any loans, secured or unsecured, to companies, firms or other parties, covered in the register required to be maintained under Section 301 of the Companies Act, 1956. Therefore, the provisions of sub clause (a), (b), (c) and (d) of the Paragraph 4(iii) of the Order are not applicable to the Company.

(b) The Company has not taken any unsecured loans from companies, firms or other parties, covered in the register required to be maintained under Section 301 of the Companies Act, 1956. Therefore, the provisions of sub-clause (e), (f) and (g) of Paragraph 4(iii) of the Order are not applicable to the Company.

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 for the purchase of inventory and fixed assets and for 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 systems.

v. In our opinion and according to the information and explanations given to us, there are no contracts or arrangements, the particulars of which need to be entered into the register maintained under Section 301 of the Companies Act, 1956. Accordingly, provision of paragraph 4(v) of the Order is not applicable.

vi. The Company has not accepted any deposits from the public. Therefore, the provisions of Paragraph 4(vi) of the Order are not applicable to the Company.

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

viii. According to the information and explanations given to us, maintenance of the cost records has not been prescribed by the Central Government under Section 209(1) (d) of the Companies Act, 1956. Accordingly, provision of Paragraph 4(viii) of the Order is not applicable to the Company.

ix. In respect of statutory dues:

(a) According to the information and explanation given to us and as per the records of the Company as examined by us, undisputed statutory dues including income tax, custom duty, excise duty, service tax, cess and other statutory dues have been regularly deposited during the year with the appropriate authorities. 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, 2011 for a period of more than six months from the date on which it becomes payable.

(b) According to the information and explanation given to us and based on the records of the Company examined by us, the dues of value added tax, excise duty, central sales tax as at 31st March, 2011 which have not been deposited on account of any dispute are tabulated below:

(Amount in Lacs Rs.)

Name of the Nature of dues Amount Period to which it Forum where statute relates pending

Central Excise Excise duty 461.90 Various years Commissioner

Act,1944 covering the periods Central Excise from 1997-2001

6.44 2001-2002 Commissioner Central Excise

94.82 Various years Commissioner covering the periods (Appeal) from 2004-2007

Value Added VAT 482.62 2006-2007 Tribunal

Tax Act 503.18 2007-2008 Deputy Commissioner of Commercial Tax

395.31 2008-2009 Tribunal

102.58 2009-2010 Tribunal

Central Sales Central Sales 126.80 2008-2009 Deputy Tax Act Tax Commissioner of Commercial Tax

x. The Company does not have accumulated losses. The Company has not incurred cash losses during the financial year covered by our report and immediately preceding financial year.

xi. According to the information and explanation given to us, and based on the verification of records of the Company, the Company has not defaulted in repayment of dues to financial institutions and banks.

xii. In our opinion and according to the information and explanations given to us, the Company has not granted any loans or advances on the basis of security by way of pledge of shares, debenture or any other securities. Accordingly, the provision of Paragraph 4(xii) of the Order is not applicable to the Company.

xiii. In our opinion and according to the information and explanations given to us, the Company is not a chit fund or a Nidhi/ mutual benefit fund/society. Accordingly, the provision of Paragraph 4(xiii) of the said Order is not applicable to the Company.

xiv. As per records of the Company as examined by us and the information and explanations given to us, the Company is not dealing or trading in shares, securities and debentures and other investments. Accordingly, the provision of Paragraph 4(xiv) of the Order is not applicable to the Company.

xv. According to the information and explanations given to us, and the representations made by the management, the Company has given guarantee for loans taken from banks or financial institutions by its subsidiary as well as group companies details of which are provided in notes to accounts point B1 in Schedule 14. In our opinion, the terms and conditions of these guarantees are not prejudicial to the interest of the Company.

xvi. In our opinion and according to the information and explanations given to us the term loan taken by the Company has been applied for the purpose for which they were raised during the year under audit.

xvii. In our opinion and according to the information and explanations given to us, and on an overall examination of the books of accounts of the Company, we report that no funds raised on a short-term basis, have been used for long-term investment.

xviii. According to the information and explanation given to us, the Company has not made preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the Companies Act, 1956 during the year.

xix. In our opinion and according to the information and explanations given to us, the Company has not issued any secured debentures during the year covered by our report. Accordingly, the provisions of clause 4(xix) of the Order are not applicable to the Company.

xx. During the year, the Company has not raised any money by way of public issues of shares.

xxi. To the best of our knowledge and belief and according to the information and explanations given to us, no fraud on or by the Company has been noticed or reported, during the year under audit.

For T.P. Ostwal & Associates(Regd.)

Chartered Accountants

Registration No. 124444W

T.P. Ostwal

Place: Mumbai. (Partner)

Date : July 27, 2011 Membership No. 30848




Mar 31, 2010

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

2. We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material 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.

3. As required by the Companies (Auditors Report) Order, 2003, issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956, we annex hereto a statement on the matters specified in paragraph 4 and 5 of the said order.

4. Further to our comments in the annexure referred to in paragraph (3) above, we report that:

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

b. in our opinion, proper books of account as required by Law have been kept by the Company, so far as it appears from our examination of those books;

c. the Balance Sheet, Profit and Loss Account and also Cash Flow Statement dealt with by this report are in agreement with the books of account;

d. in our opinion, the Balance Sheet, Profit and Loss Account and also Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in sub-section (3C) of the Section 211 of the Companies Act, 1956;

e. on the basis of the written representations received from the directors of the Company, taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March, 2010 from being appointed as a director in terms of clause (g) of sub-section (1) 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 accounts read with the notes thereon, give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

(i) in the case of Balance Sheet, of the state of affairs of the Company as at 31st March, 2010; (ii) in the case of the Profit and Loss Account, of the Profit for the year ended on that date and (iii) in the case of the Cash Flow Statement, of the Cash Flows for the year ended on that date.

ANNEXURE TO THE AUDITORS REPORT

Referred to in paragraph (3) of our report of even date on the financial statements for the year ended 31st March, 2010 of Jayant Agro-Organics Limited.

On the basis of such checks as we considered appropriate and in terms of the information and explanations given to us, we state that:

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

(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 nature of its assets. No discrepancies were noticed on such physical verification.

(c) The Company has not disposed off any substantial part of its fixed assets so as to affect its going concern.

(ii) (a) As explained to us, inventories have been physically verified during the year by the Companys management. In our opinion the frequency of verification is reasonable.

(b) In our opinion, 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) On the basis of our examination of the inventory records, we are of the opinion that, the Company is maintaining proper records of its inventory. The discrepancies noticed on physical verification of inventory as compared to book records were not material and have been properly dealt with in the books of account.

(iii) (a) The Company has not granted loans to companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956.Therefore, the provisions of sub-clauses (a), (b), (c) and (d) of Paragraph 4(iii) of the Order are not applicable to the Company. (b) The Company has not taken any loans, secured or unsecured, from companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956. Therefore, the provisions of sub- clauses (e), (f) and (g) of Paragraph 4(iii) of the Order are not applicable to the Company

(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 for the purchase of inventory and fixed assets and for 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 systems.

(v) In our opinion and according to the information and explanations given to us, there are no contracts or arrangements, the particulars of which need to be entered into the register maintained under Section 301 of the Companies Act, 1956. Accordingly, provision of paragraph 4(v) of the Order is not applicable.

(vi) The Company has not accepted any deposits from the public. Therefore, the provisions of Paragraph 4(vi) of the Order are not applicable to the Company.

(vii) In our opinion, the internal audit function carried out during the year by a firm of Chartered Accountants appointed by the management of the Company has been commensurate with the size and the nature of its business.

(viii) According to the information and explanations given to us, maintenance of the cost records has not been prescribed by the central government under Section 209(1) (d) of the Companies Act, 1956. Accordingly provision of Paragraph 4(viii) of the Order is not applicable to the Company.

(ix) In respect of statutory dues:

(a) According to the information and explanation given to us and as per the records of the Company as examined by us, undisputed statutory dues including, income tax, custom duty, excise duty, service tax, cess and other statutory dues have been regularly deposited during the period with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31s1 March, 2010 for a period of more than six months from the date on which it becomes payable.

(b) According to the information and explanation given to us and based on the records of the Company examined by us, the dues of value added tax, excise duty, central sales tax as at March 31st, 2010 which have not been deposited on account of any dispute are tabulated below:



Name of the Nature of dues Amount statute

Central Excise Excise duty 205.95 Act, 1944

Value Added Tax VAT 503.18

Act 395.31 102.58

Central Sales Tax Central sales 25.91

Act Tax 126.80

189.51



(Amount in Lacs)

Name of the Period to which it Forum where pending Statute relates

Central Excise Various years Appellate Act, 1944 covering the periods Tribunal(CESTAT) from 1997-2001

Value Added Tax 2007-2008 Deputy Commissioner of

Act 2008-2009 Commercial Tax

2009-2010

Central Sales Tax 2007-2008 Deputy Commissioner of

Act 2008-2009 Commercial Tax

2009-2010



(x) The Company does not have accumulated losses. The Company has not incurred cash losses during thefinancial year covered by our report and immediately preceding financial year.

(xi) According to the information and explanation given to us, and based on the verification of records of the

Company, the Company has not defaulted in repayment of dues to financial institutions and banks.

(xii) In our opinion and according to the information and explanations given to us, the Company has not granted any loans or advances on the basis of security by way of pledge of shares, debenture or any other securities. Accordingly the provision of Paragraph 4(xii) of the Order is not applicable to the Company.

(xiii) In our opinion and according to the information and explanations given to us, the Company is not a chit fund or a Nidhi/mutual benefit fund/society. Accordingly, the provision of Paragraph 4(xiii) of the Order are not applicable to the Company.

(xiv) As per records of the Company as examined by us and the information and explanations given to us, Company is not dealing or trading in shares, securities and debentures and other investments. Accordingly the provision of Paragraph 4(xiv) of the Order is not applicable to the Company.

(xv) According to the information and explanations given to us, and the representations made by the management, the Company has given guarantee for loans taken from banks or financial institutions by its subsidiary as well as group companies details of which are provided in notes to accounts point B-l in Schedule 14. In our opinion the terms and conditions of these guarantees are not prejudicial to the interest of the Company.

(xvi) In our opinion and according to the information and explanations given to us term loan taken by the Company has been applied for the purpose for which they were raised during the year under audit.

(xvii) In our opinion and according to the information and explanations given to us, and on an overall examination of the books of accounts of the Company, we report that no funds raised on a short-term basis, have been used for long-term investments.

(xviii) According to the information and explanation given to us, the Company has not made preferential allotment of shares to parties and Companies covered in the register maintained under section 301 of the Companies Act, 1956 during the year.

(xix) In our opinion and according to the information and explanations given to us, the Company has not issued any secured debentures during the year covered by our report. Accordingly, the provisions of clause 4(xix) of the Order are not applicable to the Company.

(xx) During the year, the Company has not raised any money by way of public issues of shares.

(xxi) To the best of our knowledge and belief and according to the information and explanations given to us, no fraud on or by the Company has been noticed or reported, during the year under audit.

For T.P. Ostwal & Associates

Chartered Accountants Registration No. 124444W

T. P. Ostwal

Place : Mumbai. (Partner)

Date : July 27, 2010 Membership No. 30848

 
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