Auditor Report of Karur KCP Packkagings Ltd.

Mar 31, 2015

We have audited the accompanying standalone financial statements of M/s. Karur K.C.P. Packkagings Limited ("the Company"), which comprise the Balance Sheet as at March 31,2015, 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

The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Group in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the company for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

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 Rules made there under.

We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India, being standards specified pursuant to the proviso to Section 143(10) of the Companies Act, 2013. 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 misstatements.

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 financial control relevant to the Company's preparation and fair presentation 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 the effectiveness of the entity's internal control. 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.

Emphasis

The aforesaid financial statements comprise of the holding company and does not include its wholly owned subsidiary company M/s. Shriudha Ventures Pte Ltd., Singapore. We have been informed by the Board of Directors, that, though the company is required to have the consolidated financial statements as required by the provisions of Section 134(1) of the Companies Act,2013, the audit of the accounts of the foreign subsidiary have not yet been completed and hence the Board of Directors have approved the holding company (stand alone) financial statements.

Opinion

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

(a) In the case of 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. Pursuant to Companies (Auditor's Report) Order, 2015 ("the Order") issued by the Central Government, in terms of Section 143(11) of the Companies Act, 2013, we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order.

2. Pursuant to 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 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 (and proper returns adequate for the purposes of our audit have been received from the branches not visited by us) ;

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 aforesaid financial statements comply with the Accounting Standards specified pursuant to 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 31st March, 2015 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2015 from being appointed as a director in terms of Section 164 (2) of the Companies Act, 2013.

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 information and according to the explanations given to us:

(i) The Company does not have any pending litigations including tax disputes referred to in Clause 7(b) infra, which would impact its financial position. In this regard, we draw you attention to Note No : 28 to the financial statements

(ii) The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

(iii) There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.

ANNEXURE TO INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 1 under the heading 'Report on Other Legal and Regulatory Requirements' of our report of even date)

1. In respect of fixed assets:

a. The company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets on the basis of available information;

b. According to the information and explanation furnished to us, the fixed assets have been physically verified by the management during the year in a periodical manner, which in our opinion is reasonable, having regard to the size of the Company and the nature of assets. No material discrepancies were noticed on such verification.

2. In respect of Inventories :

a. As explained to us, the inventories have been physically verified by the management during the year at reasonable intervals.

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

c. In our opinion and according to the information and explanation given to us, the Company has maintained proper records of inventories and discrepancies noticed on physical verification of inventories as compared to book records were not material and have been appropriately dealt with in the books of accounts.

3. In respect of loans and advances :

The Company has not granted any loans secured or unsecured to the Companies / Firms and any other parties covered in the register maintained under Section 189 of the Companies Act, 2013.

4. In respect of internal control system:

In our opinion and according to the information and explanations given to us, there are adequate internal control systems commensurate with the size of the Company and nature of its business for the purchase of inventory, fixed assets and for the sale of goods and services. Further, in our opinion and according to information and explanations given to us, there is no continuing failure to correct major weakness in internal control.

5. Public Deposits

In our opinion and according to the information and explanation given to us, the Company has not invited or accepted any deposits from the public during the year. Therefore, the provisions of the clause (v) of the paragraph 3 of the Companies (Auditor's Report) Order, 2015 are not applicable to the Company.

6. Cost Records

We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014 prescribed by the Central Government under section 148 (1) (d) of the Companies Act, 2013, the prescribed cost accounts and records have been maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.

7. Statutory Dues:

a. According to the information and explanations given to us and the records examined by us, the Company is regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and other statutory dues applicable to it. According to the information and explanations given to us, no undisputed arrears of statutory dues were outstanding as at 31st March 2015, for a period of more than six months from the date they became payable.

Name of the Nature of the dues Period to which the Statute amount relates

Central Excise / Dispute on cenvat / Service Tax Service Tax Credit, Feb-07 Interest and Penalty

2013- 14

Tamil Nadu Value Dispute on Reversal Added Tax,2°°6 of |nput Tax Credit

2014- 15

Name of the Amount Statute Rs. Forum where dispute in pending In Lakhs

Central Excise / Central Excise Customs & Service Tax 61.73 Service Tax Appellate Tribunal, Chennai

28.62 High Court Of Judicature, Madras (Madurai Bench)

Tamil Nadu Value 44.15 High Court Of Judicature, Added Tax,2°°6 Madras (Madurai Bench)

(c) According to the records of the Company, there are no amounts that are due to be transferred to the Investors Education and Protection Fund in accordance with the relevant provisions of the Companies Act, 1956 (1 of 1956) and rules made there under.

8. Accumulated Losses:

The Company does not have accumulated losses at 31st March 2015. The Company has not incurred cash losses during the financial year covered by our audit and in the immediately preceding financial year.

9. Defaulting of Term Loans:

In our opinion and according to the information and explanation given to us, the Company has not defaulted in repayment of its dues to Financial Institutions and Banks. The Company has not issued any debentures.

10. Guarantee For Loans:

According to the information and explanations given to us, the Company has given guarantee for the loan availed by its wholly owned subsidiary company M/s. Shriudha Ventures Pte Ltd., Singapore from the bank, the terms and conditions whereof are not prejudicial to the interest of the company.

11. Purpose & Application of Term Loans :

According the information and explanations given to us, the Company has applied the Term Loans for the purposes for which they were obtained.

12. Frauds:

In our opinion and according to the information and explanation given to us, and based on the books and records examined by us, there are no frauds on or by the Company that has been noticed or reported during the year.

Place : Karur For MSS SRIRAM & Co., Date : 30th May, 2015 Chartered Accountants ICAI Firm Registration No 007909S

P.R.MAHADEVAN Partner Membership Number : 007377

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Mar 31, 2014

We have audited the accompanying financial statements of M/s. KARUR K.C.P. PACKKAGINGS LIMITED ("the Company"), which comprise the Balance Sheet as at 31st March, 2014, 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 principles generally accepted in India including Accounting Standards notified under 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.

Auditor''s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our Audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements.

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 statement, 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 the effectiveness of the entity''s internal control. 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 statement.

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

Opinion

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

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

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

(c) In the case of 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, 2003, ("the Order") issued by the Central Government of India, in terms of Section 227 (4A) of the Act, we give in the Annexure a statement on the matters specified in paragraph 4 & 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 notified under the Companies Act, 1956 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;

e) e)On the basis of the written representation received from the Directors as on 31st March, 2014, and taken on record by the Board of Directors, none of the Directors is disqualified as on 31st March, 2014 from being appointed as a Director in terms of Section 274 (1) (g) of the Companies Act, 1956.

(Referred to in paragraph 1 under the heading ''Report on Other Legal and Regulatory Requirement''s of our report of even date)

1. In respect of fixed assets:

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

b. According to the information and explanations furnished to us, the fixed assets have been physically verified by the management during the year in a periodical manner, which in our opinion is reasonable, having regard to the size of the company and the nature of assets. No material discrepancies were noticed on such verification.

c. The Assets disposed off during the year are not substantial and therefore do not affect the going concern status of the company.

2. In respect of Inventories :

a. As explained to us, the inventories have been physically verified by the management during the year at reasonable intervals.

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

c. In our opinion and according to the information and explanation given to us, the Company has maintained proper records of inventories and discrepancies noticed on physical verification of inventories as compared to book records were not material and have been appropriately dealt with in the books of accounts.

3. In respect of loans and advances :

a. The Company has not granted any secured or unsecured loans to the Companies / Firms and any other parties covered in the register maintained under section 301 of The Companies Act, 1956.

b. The Company has not taken any secured or unsecured loans from the Companies / Firms and any other parties covered in the register maintained under section 301 of The Companies Act, 1956 excepting holding of interest free unsecured deposits from the Managing Director availed in the earlier years.

4. In respect of internal control system:

In our opinion and according to the information and explanations given to us, there are adequate internal control systems com- mensurate with the size of the company and nature of its business for the purchase of Inventory, Fixed Assets and for the sale of goods and services. Further, in our opinion and according to information and explanations given to us, there is no continuing failure to correct major weakness in internal control.

5. In respect of related party transactions:

In respect of contracts and arrangements entered in the register maintained in pursuance of section 301 of the Companies Act, 1956 to the best of our knowledge and belief and according to the information and explanations given to us:

i. The particulars of contracts or arrangements referred to in Section 301 that needed to be entered into Register maintained under the said Section have been so entered.

ii. where each of such transactions is in excess of Rs. 5,00,000/- in respect of any party during the year, the transactions have been made at the prices which are prima facie reasonable having regard to prevailing market prices at the relevant time.

6. Public Deposits

In our opinion and according to the information and explanations given to us, the company has not accepted or invited any depos- its from the public during the year. Therefore the provisions of the clause 4 (vi) of the Order are not applicable to the Company.

7. Internal Audit

Company has an adequate Internal Audit System commensurate with the size and nature of its business.

8. Cost Records

We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Accounting Records) Rules, 2011 prescribed by the Central Government under Section 209 (1) (d) of the Companies Act, 1956 and are of the opinion that prima facie, the prescribed cost records have been maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.

9. Statutory Dues:

a. According to the information and explanations given to us and the records examined by us, the company is regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and other statutory dues applicable to it. According to the information and explanations given to us, no undisputed arrears of statutory dues were outstanding as at 31st March 2014, for a period of more than six months from the date they became payable.

b. The details of disputed statutory dues are given below:-

Name of the Period to which the Amount Statute Nature of the dues amount relates Rs. In Lakhs

Aug-06 to Nov-06 15.86

Central Excise / Dispute on Cenvat / Mar-05 to Nov-05 25.00 Service Tax Service Tax Credit, interest and Penalty Feb-07 61.73

May-06 to Dec-06 16.44

Name of the Forum where dispute in Statute pending

Commissioner (Appeals)

Central Excise / Appellate Tribunal Service Tax Appellate Tribunal

Commissioner (Appeals)

10. Accumulated Losses:

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

11. Defaulting of Term Loans:

In our opinion and according to the information and explanations given to us, the company has not defaulted in repayment of its dues to Financial Institutions and Banks. The Company has not issued any debentures.

12. Security For Loans Granted:

Based on our examination of documents and records, the Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures or other securities.

13. Special Law :

The Company is not a chit / nidhi/ mutual benefit fund/society. Therefore, the provision of clause xiii of paragraph 4 of the Order are not applicable to the Company.

14. Dealing in Securities :

According to the information and explanations given to us, the Company is not dealing in or trading in shares, securities and debentures and other investments. Accordingly, the provisions of clause xiv of paragraph 4 of the Order are not applicable to the company.

15. Guarantee For Loans:

According to the information and explanations given to us, the Company has given guarantee for the loan availed by its wholly owned subsidiary company M/s Shriudha Venture Pte Ltd., Singapore from the bank.

16. Purpose & Application of Term Loans :

According to the information and explanations given to us, the Company has applied the Term Loans for the purposes for which they were obtained.

17. Short Term Funds & Application:

According to the information and explanations given to us and on an overall examination of the Sources and Application of the Funds of the Company, we report that the company has used no funds raised on short term basis for long term investments.

18. Preferential Allotments :

The Company has not made any preferential allotment of shares to the parties and companies covered in the register maintained under Section 301 of the Companies Act, 1956 during the year.

19. Debentures:

The Company has not issued any Debentures since incorporation and hence the provisions of clause 4 (xix) are not applicable to the company.

20. Public Issue :

The Company has not raised money by public issue during the year.

21. Frauds:

In our opinion and according to the information and explanations given to us, and based on the books and records examined by us, there are no frauds on or by the Company that has been noticed or reported during the year

Place : Karur For MSS SRIRAM & Co., Date : 30th May, 2014 Chartered Accountants ICAI Firm Registration No 007909S

P.R.MAHADEVAN Partner Membership Number : 007377

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Mar 31, 2013

Report on the Financial Statements

We have audited the accompanying fnancial statements of M/s. KARUR K.C.P. PACKKAGINGS LIMITED ("the Company"), which comprise the Balance Sheet as at 31st March, 2013 the Statement of Proft and Loss and Cash Flow Statement for the year then ended and a summary of signifcant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

Management is responsible for the preparation of these fnancial statements that give a true and fair view of the fnancial position, fnancial performance and cash fows of the Company in accordance with the accounting principles generally accepted in India includ- ing Accounting Standards referred to in Section 211(3C) 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 fnancial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor''s Responsibility

Our responsibility is to express an opinion on these fnancial 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 fnancial statements are free from material misstatements.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the fnancial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the fnan- cial statement, 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 fnancial 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 fnancial statement.

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

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid fnancial 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 Balance Sheet, of the state of affairs of the company as at 31st March, 2013 ;

(b) In the case of Statement of Proft and Loss, of the Proft for the year ended on that date; and

(c) In the case of 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, 2003, ("the Order") issued by the Central Government of India, in terms of Section 227 (4A) of the Act, we give in the Annexure a statement on the matters specifed in paragraph 4 & 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 exami- nation of those books;

c) The Balance Sheet , Statement of Proft 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 Proft and Loss and Cash Flow Statement comply with the Accounting Stan- dards referred to in Section 211 (3C) of the Companies Act, 1956;

e) On the basis of the written representation received from the Directors as on 31st March, 2013, and taken on record by the Board of Directors, none of the Directors is disqualifed as on 31st March, 2013 from being appointed as a Director in terms of Section 274 (1) (g) of the Companies Act, 1956.

(Referred to in paragraph 1 under the heading ''Report on Other Legal and Regulatory Requirement''s of our report of even date)

1. In respect of fxed assets:

a. The Company has maintained proper records showing full particulars including quantitative details and situation of fxed assets.

b. According to the information and explanations furnished to us, the fxed assets have been physically verifed by the manage- ment during the year in a periodical manner, which in our opinion is reasonable, having regard to the size of the company and the nature of assets. No material discrepancies were noticed on such verifcation.

c. The Assets disposed off during the year are not substantial and therefore do not affect the going concern status of the company.

2. In respect of Inventories :

a. As explained to us, the inventories have been physically verifed by the management during the year at reasonable intervals.

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

c. In our opinion and according to the information and explanation given to us, the Company has maintained proper records of inventories and discrepancies noticed on physical verifcation of inventories as compared to book records were not material and have been appropriately dealt with in the books of accounts.

3. In respect of loans and advances :

a. The Company has not granted any secured or unsecured loans to the Companies / Firms and any other parties covered in the register maintained under section 301 of The Companies Act, 1956.

b. The Company has not taken any secured or unsecured loans from the Companies / Firms and any other parties covered in the register maintained under section 301 of The Companies Act, 1956 excepting holding of interest free unsecured deposits from the managing director availed in the earlier years.

4. In respect of internal control system:

In our opinion and according to the information and explanations given to us, there are adequate internal control systems com- mensurate with the size of the company and nature of its business for the purchase of Inventory, Fixed Assets and for the sale of goods and services. Further, in our opinion and according to information and explanations given to us, there is no continuing failure to correct major weakness in internal control.

5. In respect of related party transactions:

In respect of contracts and arrangements entered in the register maintained in pursuance of section 301 of the Companies Act, 1956 to the best of our knowledge and belief and according to the information and explanations given to us :

i. The particulars of contracts or arrangements referred to in Section 301 that needed to be entered into register maintained under the said Section have been so entered. ii. where each of such transactions is in excess of Rs. 5,00,000/- in respect of any party during the year, the transactions have been made at the prices which are prima facie reasonable having regard to prevailing market prices at the relevant time.

6. Public Deposits

In our opinion and according to the information and explanations given to us the company has not accepted or invited any depos- its from the public during the year. Therefore the provisions of the clause 4 (vi) of the Order are not applicable to the Company.

7. Internal Audit

The Company has an adequate Internal Audit System Commensurate with the size and nature of its business.

8. Cost Records

We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Accounting Records) Rules, 2011 prescribed by the Central Government under Section 209 (1) (d) of the Companies Act,1956 and are of the opinion that prima facie, the prescribed cost records have been maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.

9. Statutory Dues:

According to the information and explanations given to us and the records examined by us, the company is regular in deposit- ing with appropriate authorities undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and other statutory dues applicable to it. According to the information and explanations given to us, no undisputed arrears of statutory dues were outstanding as at 31st March 2013, for a period of more than six months from the date they became payable.

10. Accumulated Losses:

The Company does not have accumulated losses at 31st March, 2013. The Company has not incurred cash losses during the fnancial year covered by our audit and in the immediately preceding fnancial year.

11. Defaulting of Term Loans:

In our opinion and according to the information and explanations given to us, the company has not defaulted in repayment of its dues to Financial Institutions and Banks. The Company has not issued any debentures.

12. Security For Loans Granted:

Based on our examination of documents and records, the Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures or other securities.

13. Special Law :

The Company is not a chit or nidhi mutual beneft fund/society. Therefore, the provision of clause xiii of paragraph 4 of the Order are not applicable to the Company.

14. Dealing in Securities :

According to the information and explanations given to us, the Company is not dealing in or trading in shares, securities and debentures and other investments. Accordingly, the provision of clause xiv of paragraph 4 of the Order are not applicable to the company.

15. Guarantee For Loans:

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

16. Purpose & Application of Term Loans :

According to the information and explanations given to us, the Company has applied the Term Loans for the purposes for which they were obtained.

17. Short Term Funds & Application:

According to the information and explanations given to us and on an overall examination of the Sources and Application of the Funds of the Company, we report that the company has used no funds raised on short term basis for long term investments.

18. Preferential Allotments :

The Company has not made any preferential allotment of shares to the parties and companies covered in the register maintained under Section 301 of the Companies Act, 1956 during the year.

19. Debentures:

The Company has not issued any Debentures since incorporation and hence the provisions of clause 4 (xix) are not applicable to the company.

20. Public Issue :

The Company has not raised money by public issue during the year.

21. Frauds:

In our opinion and according to the information and explanations given to us, and based on the books and records examined by us, there are no frauds on or by the Company that has been noticed or reported during the year

Place : Karur For MSS SRIRAM & Co.,

Date : 30th May, 2013 Chartered Accountants

ICAI Firm Registration No 007909S

P.R.MAHADEVAN

Partner

Membership Number : 007377

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Mar 31, 2012

We have audited the attached Balance Sheet of M/s. KARUR K.C.P. PACKKAGINGS LIMITED as at 31st March, 2012 and also the Profit and Loss Statement for the year ended on that date 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.

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.

As required by the Companies (Auditor's Report) Order, 2003, as amended by Companies (Auditor's Report) Amendment Order 2004, issued by Government of India in terms of Section 227 (4A) of the Companies Act, 1956, and on the basis of such checks as we considered appropriate and according to the information and explanations given to us, we enclose in the Annexure a statement on the matters specified in paragraph 4 & 5 of the said Order.

Further to our Comments in the Annexure referred to in Paragraph 3 above, we report that:

1. 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.

2. 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.

3. The Balance Sheet and Profit and Loss Statement and Cash Flow Statement dealt with by this report are in Agreement with the books of account.

4. In our opinion the Balance Sheet, Profit and Loss Statement and Cash Flow Statement of the Company comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956.

5. On the basis of the written representation received from the Directors and 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 under Clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956.

6. In our opinion and to the best of our information and according to the explanations given to us and read together with notes there on, the said accounts 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:-

(a) In the case of Balance Sheet, of the state of affairs of the Company as at 31st March, 2012

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

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

ANNEXURE TO AUDITORS' REPORT

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

b. According to the information and explanations furnished to us, the fixed assets have been physically verified by the management during the year in a periodical manner, which in our opinion is reasonable, having regard to the size of the Company and the nature of assets. No material discrepancies were noticed on such verification.

c. The Company has sold its Land and Building at Puducherry unit and shifted the remaining assets to Pollachi unit. The disposal of land and building has not affected the going concern status of the Company.

2. a. The inventories have been physically verified by the management during the year at reasonable intervals.

b. The procedures of physical verification of the inventories followed by the management are reasonable and adequate in relation to the size of the Company and nature of its business.

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

3. a. The Company has not granted any secured or unsecured loans to the Companies/Firms and any other parties covered in the register maintained under Section 301 of the Companies Act, 1956.

b. The Company has not taken any secured or unsecured loans from the Companies/Firms and any other parties covered in the register maintained under Section 301 of the Companies Act, 1956.

4. In our opinion and according to the information and explanations given to us, there are adequate internal control systems commensurate with the size of the Company and nature of its business for the purchase of Inventory, Fixed Assets and for the sale of goods and services. Further, in our opinion and according to information and explanations given to us, there is no continuing failure to correct major weakness in internal control.

5. In respect of contracts and arrangements entered in the register maintained in pursuance of Section 301 of the Companies Act, 1956.

a. According to the information and explanations given to us, the particulars of contracts or arrangements that needed to be entered into register have been so entered.

b. In our opinion and according to the information and explanations given to us, where each of such transactions made in pursuance of such contracts and arrangements is in excess of Rs. 5,00,000/- in respect of any party during the year, the transactions have been made at the prices which are prima facie reasonable having regard to prevailing market prices at the relevant time.

6. The Company has not accepted or invited any deposits from the public during the year. No deposits were outstanding at the end of the year and hence the provisions of Section 58 A and 58AA are not applicable.

7. The Company has an adequate Internal Audit System commensurate with the size and nature of its business.

8. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Accounting Records) Rules, 2011 prescribed by the Central Government under Section 209(1)(d) of the Companies Act, 1956 and are of the opinion that prima facie, the prescribed cost records have been maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.

9. a. According to the information and explanations given to us and the records examined by us, the Company is regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and other statutory dues applicable to it. According to the information and explanations given to us, no undisputed arrears of statutory dues were outstanding as at 31st March 2012, for a period of more than six months from the date they became payable.

b. The details of disputed statutory dues are given below:-

Name of the Nature of the dues Period Statute 1. Central Excise/ Dispute on Cenvat/ Aug-06 to Nov-06 Service Tax Service Tax Credit, Interest and Penalty Mar-05 to Nov-05

Feb-07

May-06 to Dec-06

Name of the Amount Amount Forum where dispute Statute paid Rs. paid Rs. in pending In Lakhs in Lakhs

1. Central Excise/ 15.86 Nil Commissioner Service Tax (Appeals)

25.00 Nil Appellate Tribunal

61.73 Nil Appellate Tribunal

16.44 Nil Commissioner (Appeals)

10. There are no accumulated losses for the Company as at 31st March, 2012. The Company has not incurred any cash losses during the financial year covered by our audit and in the immediately preceding financial year.

11. According to the information and explanations given to us, the Company has not defaulted in repayment of its dues to Financial Institutions and Banks. The Company has not issued any debentures.

12. Based on our examination of documents and records, the Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures or other securities.

13. The Company is not a chit or nidhi mutual benefit fund/society. Therefore, the provision of Clause 4(xiii) of the Companies (Auditor's report) Order 2003, are not applicable to the Company.

14. According to the information and explanations given to us, the Company is not dealing in or trading in shares, securities and debentures and other investments. Accordingly, the provision of Clause 4(xiv) of the Companies (Auditor's report) Order 2003, are not applicable to the Company.

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

16. According to the information and explanations given to us, the Company has applied the Term Loans for the purposes for which they were obtained.

17. According to the information and explanations given to us and on an overall examination of the Sources and Application of the Funds of the Company, we report that no funds raised on short term basis have been used for long term investments by the Company.

18. The Company has not made any preferential allotment of shares to the parties and companies covered in the register maintained under Section 301 of the Companies Act, 1956 during the year.

19. The Company has not issued any Debentures during the year and hence creation of Securities or charge does not arise.

20. The Company has not raised money by Public issue during the year.

21. According to the information and explanations given to us, and the books and records examined by us, there are no frauds on or by the Company that has been noticed or reported during the year



For MSS SRIRAM & Co., Chartered Accountants ICAI Firm Registration No 007909S

P.R. MAHADEVAN Partner Membership Number: 007377

Place Karur Date 21st August, 2012

---

Mar 31, 2011

We have audited the attached Balance Sheet of M/s. KARUR K.C.P. PACKKAGINGS LIMITED as at 31st March,2011 and also the Profit and Loss Account for the year ended on that date 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.

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.

As required by the Companies (Auditor's Report) Order, 2003, as amended by Companies (Auditor's Report) Amendment Order 2004, issued by Government of India in terms of Section 227 (4A) of the Companies Act, 1956, and on the basis of such checks as we con- sidered appropriate and according to the information and explanations given to us, we enclose in the Annexure a statement on the matters specified in paragraph 4 & 5 of the said Order.

Further to our Comments in the Annexure referred to in Paragraph 3 above, we report that:

1. 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;

2. 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.;

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

4. In our opinion the Balance Sheet, Profit and Loss account and Cash Flow Statement of the Company comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956.

5. On the basis of the written representation received from the Directors and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on 31st March, 2011 from being appointed as a Director under Clause (g) of Sub-section (1) of Section 274 of the Companies Act, 1956.

6. In our opinion and to the best of our information and according to the explanations given to us and read together with notes there on, the said accounts 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:-

(a) In the case of Balance Sheet, of the state of affairs of the company as at 31st March, 2011

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

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

ANNEXURE TO AUDITORS' REPORT

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

b. According to the information and explanations furnished to us, the fixed assets have been physically verified by the management during the year in a periodical manner, which in our opinion is reasonable, having regard to the size of the company and the nature of assets. No material discrepancies were noticed on such verification.

c. The company has not disposed off any major part of fixed assets during the year.

2. a. The inventories have been physically verified by the management during the year at reasonable intervals.

b. The Procedures of physical verification of the inventories followed by the management are reasonable and adequate in relation to the size of the company and nature of its business.

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

3. a. The Company has not granted any secured or unsecured loans to the Companies / Firms and any other parties covered in the register maintained under section 301 of The Companies Act. 1956.

b. The Company has not taken any secured or unsecured loans from the Companies / Firms and any other parties covered in the register main- tained under section 301 of The Companies Act. 1956.

4. In our opinion and according to the information and explanations given to us, there are adequate internal control systems commensurate with the size of the company and nature of its business for the ourchase of Inventory, Fixed Assets and for the sale of goods and services. Further, in our opinion and according to information and explanations given to us, there is no continuing failure to correct major weakness in internal control.

5. In respect of contracts and arrangements entered in the register maintained in pursuance of Section 301 of the Companies Act, 1956;

a. According to the information and explanations given to us, the particulars of contracts or arrangements that needed to be entered into register have been so entered.

b. In our opinion and according to the information and explanations given to us, where each of such transactions made in pursuance of such contracts and arrangements is in excess of Rs.500000 in respect of any party during the year, the transactions have been made at the prices which are prima facie reasonable having regard to prevailing market prices at the relevant time.

6. The company has not accepted or invited any deposits from the public during the year. No deposits were outstanding at the end of the year and hence the provisions of Section 58A and 58AA is not applicable.

7. The Company has an adequate Internal Audit System Commensurate with the size and nature of its business.

8. Maintenance of Cost Records has not been prescribed under clause (d) of sub-section(l) of section 209 of the Act for the products manufactured by the Company.

9. a. According to the information and explanations given to us and the records examined by us, the company is regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund Investor Education and Protection Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty. Cess and other statutory dues applicable to it. According to the information and explanations given to us, no undisputed arrears of statutory dues were outstanding as at 31st March 2011. for a period of more than six months from the date they became payable.

b. The details of disputed statutory dues are given below:-

Name of the Nature of the dues Period Statute

Nov-06

Aug-06 to Nov-06

Dispute on Cenvat / Mar-05 to Nov-05 1 .Central Excise/ Service Tax Service Tax Credit, Feb-07 Interest and Penalty

May -06 to Dec-06

Mar-08

2. Sales Tax Additional Sales Tax 2001-02



Name of the Amount of Amount Forum where dispute in Statute demand Rs. paid Rs. pending In Lakhs In Lakhs

1.98 Nil Appellate Tribunal

15.86 Nil Commissioner (Appeals)

1. Central Excise/ 25.00 Nil Appellate Tribunal

Service Tax 61.73 Nil Appellate Tribunal

16.44 Nil Commissioner (Appeals)

1.34 1.34 Appellate Tribunal

2.Sales Tax 4.75 4.75 Appellate Tribunal

10. There are no accumulated losses for the Company as at 31st March, 2011. The Company has not incurred any cash losses during the financial year covered by our audit and in the immediately preceding financial year.

11. According to the information and explanations given to us, the company has not defaulted in repayment of its dues to Financial Institutions and Banks. The Company has not issued any debentures.

12. Based on our examination of documents and records, the Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures or other securities.

13. The Company is not a chit or nidhi mutual benefit fund/society. Therefore, the provision of clause 4(xiii) of the Companies (Auditor's report) Order 2003, are not applicable to the Company.

14. According to the information and explanations given to us, the Company is not dealing in or trading in shares, securities and debentures and other investments. Accordingly, the provision of clause 4(xiv) of the Companies (Auditor's report) Order 2003, are not applicable to the company.

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

16. According to the information and explanations given to us, the Company has applied the Term Loans for the purposes for which they were obtained.

17. According to the information and explanations given to us and on an overall examination of the Sources and Application of the Funds of the Company, we report that no funds raised on short term basis have been used for long term investments by the Company.

18. The Company has not made any preferential allotment of shares to the parties and companies covered in the register maintained pursuant to Section 301 of the Companies Act, 1956 during the year.

19. The Company has not issued any Debentures during the year and hence creation of Securities or charge does not arise

20. The Company has not raised money by public issue excepting through Global Depository Receipts during the year.

21. According to the information and explanations given to us, and the books and records examined by us, there are no frauds on or by the Company that has been noticed or reported during the year

For MSS SRIRAWI & Co., Chartered Accountants ICAI Firm Registration No 007909S



RR.MAHADEVAN Partner Membership Number : 007377

Place : Karur Date : 25lh August, 2011

---

Mar 31, 2010

We have audited the attached Balance Sheet of M/s. KARUR K.C.P. PACKKAGINGS LIMITED as at 31st March, 2010 and also the Profit and Loss Account for the year ended on that date 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.

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.

As required by the Companies (Auditors Report) Order, 2003, as amended by Companies (Auditors Report) Amendment Order 2004, issued by Government of India in terms of Section 227 (4A) of the Companies Act, 1956, and on the basis of such checks as we considered appropriate and according to the information and explanations given to us, we enclose in the Annexure a statement on the matters specified in paragraph 4 & 5 of the said Order.

Further to our Comments in the Annexure referred to in Paragraph 3 above, we report that:

1. 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;

2. 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.;

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

4. In our opinion the Balance Sheet, Profit and Loss account and Cash Flow Statement of the Company comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956.

5. On the basis of the written representation received from the Directors and 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 under Clause (g) of Sub-section (1) of Section 274 of the Companies Act, 1956.

6. We draw your attention to the following matter:

Transactions of exceptional nature concluded during the year which has resulted in a loss of Rs. 145.30 Lakhs.

7. In our opinion and to the best of our information and according to the explanations given to us and read together with notes there on, the said accounts 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:-

(a) In the case of Balance Sheet, of the state of affairs of the company as at 31st March, 2010

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

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

ANNEXURE TO AUDITORS REPORT

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

b. According to the information and explanations furnished to us, the fixed assets have been physically verified by the management during the year in a periodical manner, which in our opinion is reasonable, having regard to the size of the company and the nature of assets. No material discrepancies were noticed on such verification.

c. The company has not disposed off any major part of fixed assets during the year.

2. a. The inventories have been physically verified by the management during the year at reasonable intervals.

b. The Procedures of physical verification of the inventories followed by the management are reasonable and adequate in relation to the size of the company and nature of its business.

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

3. a. The Company has not granted any secured or unsecured loans to the Companies / Firms and any other parties covered in the register maintained under section 301 of The Companies Act, 1956.

b. The Company has not taken any secured or unsecured loans from the Companies / Firms and any other parties covered in the register maintained under section 301 of The Companies Act, 1956.

4. In our opinion and according to the information and explanations given to us, there are adequate internal control systems commensurate with the size of the company and nature of its business for the purchase of Inventory, Fixed Assets and for the sale of goods and services. Further, in our opinion and according to information and explanations given to us, there is no continuing failure to correct major weakness in internal control.

5. In respect of contracts and arrangements entered in the register maintained in pursuance of Section 301 of the Companies Act, 1956;

a. According to the information and explanations given to us, the particulars of contracts or arrangements that needed to be entered into register have been so entered.

b. In our opinion and according to the information and explanations given to us, where each of such transactions made in pursuance of such contracts and arrangements is in excess of Rs. 500000 in respect of any party during the year, the transactions have been made at the prices which are prima facie reasonable having regard to prevailing market prices at the relevant time.

6. In our opinion and according to the information and explanations given to us, the company has complied with the directives issued by the Reserve Bank of India and provisions of Section 58A and 58AA of the Companies Act, 1956 or any other relevant provisions of the Act and the Companies (Acceptance of Deposits) Rules, 1975, the company has neither accepted / renewed any deposits from the public during the year nor held any deposits from public at the end of the year. As per the information and explanations given to us, no order has been passed in the case of the company by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other tribunal during the year.

7. The Company has an adequate Internal Audit System Commensurate with the size and nature of its business.

8. Maintenance of Cost Records has not been prescribed under clause (d) of sub-section(1) of section 209 of the Act for the products manufactured by the Company.

9. a. According to the information and explanations given to us and the records examined by us, the company is regular in depositing with appropri- ate authorities undisputed statutory dues including Provident Fund Investor Education and Protection Fund, Employees State Insurance, income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and other statutory dues applicable to it. According to the information and explanations given to us, no undisputed arrears of statutory dues were outstanding as at 31st March, 2010, for a period of more than six months from the date they became payable

b. The details of disputed statutory dues are given below:-

Amount of Amount Name of the Forum where dispute in Nature of the dues Period demand Rs. paid Rs.In Statute In Lakhs Lakhs pendmg

Jan-05 to Nov-06 4.24 2.12 Appellate Tribunal

Nov-06 1.98 Nil Commissioner (Appeals)

Aug-06 to Nov-06 15.86 Nil Commissioner (Appeals)

Dispute on Cenvat / Mar-05 to Nov-05 25.00 Nil Appellate Tribunal 1 .Central Excise / Service Tax Service Tax Credit, Feb-07 61.73 Nil Appellate Tribunal Interest and Penalty

May-06 to Dec-06 16.44 Nil Commissioner (Appeals)

Mar-08 1.34 1.34 Appellate Tribunal

May-05 to Apr-07 9.12 4.55 Appellate Tribunal

2. Sales Tax Additional Sales Tax 2001-02 7.12 Nil Appellate Tribunal

10. There are no accumulated losses for the Company as at 31st March, 2010. The Company has not incurred any cash losses during the financial year covered by our audit and in the immediately preceding financial year.

11. According to the information and explanations given to us, the company has not defaulted in repayment of its dues to Financial Institutions and Banks. The Company has not issued any debentures.

12. Based on our examination of documents and records, the Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures or other securities.

13. The Company is not a chit or nidhi mutual benefit fund/society. Therefore, the provision of clause 4(xiii) of the Companies (Auditors report) Order 2003, are not applicable to the Company.

14. According to the information and explanations given to us, the Company is not dealing in or trading in shares, securities and debentures and other investments. Accordingly, the provision of clause 4(xiv) of the Companies (Auditors report) Order 2003, are not applicable to the company.

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

16. According to the information and explanations given to us, the Company has applied the Term Loans for the purposes for which they were obtained.

17. According to the information and explanations given to us and on an overall examination of the Sources and Application of the Funds of the Company, we report that no funds raised on short term basis have been used for long term investments by the Company.

18. The Company has not made any preferential allotment of shares to the parties and companies covered in the register maintained u/s 301 of the Companies Act, 1956 during the year.

19. The Company has not issued any Debentures during the year and hence creation of Securities or charge does not arise.

20. The Company has not raised money by Public issue during the year.

21. According to the information and explanations given to us, and the books and records examined by us, there are no frauds on or by the Company that has been noticed or reported during the year

Place : Karur For MSS SRIRAM & Co.,

Date 2nd September, 2010 Chartered Accountants

ICAI Firm Registration No 007909S

P.R.MAHADEVAN

Partner

Membership Number: 007377