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Auditor Report of Kiri Industries Ltd.

Mar 31, 2015

We have audited the accompanying standalone financial statements of Kiri Industries 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 ended on that date, and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Standalone 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 standalone 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 the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making Judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, 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 standalone 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 the disclosures in the financial statements. The procedures selected depend on the auditor's Judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company's preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company's Directors, as well as evaluating the overall presentation of the financial statements.

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

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone 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 Profit and Loss Account, of the loss 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 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 sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;

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

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

d. In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;

e. There is nothing to disclose which is having adverse effect on the functioning of the company;

f. On the basis of the written representations received from the directors as on 31st March, 2015 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2015 from being appointed as a director in terms of Section 164 (2) of the Act.

g. 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:

a. The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 30 to the financial statements;

b. the Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;

c. there were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company;

Annexure to the Auditors' Report

ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT:

The Annexure referred to in paragraph 1 of the our Report of even date to the members of Kiri Industries Limited on the standalone financial statements of the company for the year ended 31st March, 2015.

On the basis of such checks as we considered appropriate and according to the information and explanation given to us during the course of our audit, we report that:

1. The Company has maintained proper records of fixed assets showing full particulars including quantitative details and location. The company has a regular programme of physical verification of its fixed assets which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. In accordance with this programme, fixed assets were physically verified by Management during the year and no material discrepancies were noticed on such verification.

2. (a) As explained to us, the inventories have been physically verified by the management at reasonable intervals during the year. In our opinion, the frequency of such verification is reasonable having regard to the nature and location of the inventory.

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

(c) The company has maintained proper records of inventory. As explained to us, there were no material discrepancies noticed on physical verification of the having regard to the size of the operations of the Company.

3. According to the information and explanations given to us and on the basis of our examination of the books of account, the company has not granted unsecured loan to body corporates covered in the register maintained under Section 189 of the Companies Act, 2013.

4. In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the company and the nature of its business, for the purchase of inventory and fixed assets and for the sale of goods and services. During the course of our audit, no major weakness has been noticed in the internal control system and there is no instance of continuing failure to correct any weaknesses in the internal controls

5. Based on the audit procedures applied by us and according to the information and explanations provided by the management, the company has not accepted any deposit during the year to which provisions of sections 73 to 76 or any other relevant provisions of the Companies Act and the rules made thereunder are applicable.

6. We have broadly reviewed the books of accounts maintained by the company pursuant to the notification by the central government for maintenance of cost records under sub-section 1 of section 148 of the Companies Act 2013 and on the basis of information received, we are of the opinion that prima-facie the prescribed accounts and records have been made and maintained as per the requirement. We have, however, not carried out a detailed examination or audit of the cost records with a view to determine whether they are accurate or complete.

7. According to the records of the company, it is observed that the company is irregular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees' State Insurance, Income-tax, Sales- tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, cess to the extent applicable and any other statutory dues with appropriate authorities.

The disputed statutory dues that have not been deposited on account of disputed matters pending before appropriate authorities are as under.

Sr. Name of the Name of the Dues Section under Period to which No Statute which dispute amount relates is pending (FY)

1 The Income Income Tax 143(3) 2002-03 Tax Act, 1961

143(3) 2005-06

143(3) 2007-08

143(3) 2008-09

143(3) 2009-10

143(3) 2010-11

2 The Central CENVAT Refund 2009-10 Excise Act, 1944

2009-10

2010-11

2010-11

Similar Goods 2010-11

2011-12

Differential Duties 2011-12





Sr. Name of the Amount Forum where the No Statute (Rs. In dispute is Lakhs) pending

187.63 Income Tax Appellate Tribunal 1 The Income

58.59 Income Tax Appellate Tribunal

109.33 Income Tax Appellate Tribunal

21.18 Income Tax Appellate Tribunal

19.89 Commissioner of Income Tax (Appeals)

316.06 Commissioner of Income Tax (Appeals)

2 The Central 341.08 High court Excise Act, 1944 83.74 Central Excise and Service Tax Appellate Tribunal

255.23 Central Excise Commissioner Appeal

153.73 High Court

344.00 Central Excise Commissioner Appeal

4.09 Central Excise Commissioner Appeal

21.40 Central Excise Commissioner Appeal

8. The Company has accumulated loss and has incurred loss during the financial year covered by our audit and also in the immediately preceding financial year.

9. Based on our audit procedures and on the information and explanations given by the management, we are of the opinion that, during the current year the Company has defaulted in repayment of its dues towards principal and interest to various banks and financial institution as given in note No. 4.

10. According to the information and explanations given to us, the company has not given guarantees for any loan taken by others from banks or financial institutions.

11. On the basis of the records examined by us and relying on the information compiled by the Company for correlating the funds raised to the end use of term loans, we report that the Company has generally applied the term loans for the purposes for which they were obtained.

12. Based on the audit procedures performed and the information and explanations given to us, we report that no fraud on or by the Company has been noticed or reported during the year, nor have we been informed of such case by the management.

For V. D. Shukla & Co. Chartered Accountants Firm Registration No.: 110240W

Vimal D. Shukla Place : Ahmedabad Proprietor Date : 7th August, 2015 Membership No. 036416






Mar 31, 2014

We have audited the accompanying financial statements of Kiri Industries Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2014, the Statement of Profit and Loss and Cash Flow Statement for the year ended, and a summary of signifi cant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

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

Auditor''s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We have 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 perf orm the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financi al 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 in cludes 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 loss 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, 2003 ("the Order") issued by the Central Government in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specifi ed 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 accoun t 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 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 [and with the returns received from branches not visited by us]

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

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.

f. Since the Central Government has not issued any notification as to the rate at which the cess is to be paid under section 441A of the Companies Act,1956 nor has it issued any Rules under the said section, prescribing the manner in which such cess is to be paid, no cess is due and payable by the Company.

Annexure to the Auditors'' Report

The Annexure referred to in paragraph 1 of the Our Report of even date to the members of Kiri Industries Limited on the accounts of the company for the year ended 31st March, 2014.

On the basis of such verfi cation as we considered appropriate and according to the information and explanation given to us during the course of our audit, we report that:

1. (a) The company has generally maintained proper records showing full parti culars including quantitative details and situation of its fixed assets.

(b) As explained to us, fixed assets, according to the practice of the company, have been physically verified by the management at reasonable intervals in a phased verification programme, which our opinion, is reasonable looking to the size of the company and nature of its assets. According to the information and explanations given to us , no material discrepancies were noti ced on such verification.

(c) In our opinion and according to the information and explanations given to us, no fixed asset has been disposed during the year and therefore does not affect the going concern assumption.

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

(b) In our opinion and according to the information and explanations 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 o f our examination of the inventory records of the Company, we are of the opinion that, the Company is maintaining proper records of its inventory. The discrepancies which were noticed on physi cal verification of inventory as compared to book records, have been properly dealt with in the books of accounts.

3. (a) According to the information and explanations given to us and on the basis of our examination of the books of account, the company has granted unsecured loan to a Company covered in the r egister maintained under Section 301 of the Companies Act, 1956. We ar e of the opinion that the terms and conditions of loan are not prima facie prejudicial to the inter est of the Company. The maximum amount involved during the year was Rs. 455.64 lacs and the period-end balance of the loan granted was Rs. 349.32 lacs. The terms of repayment of principal and interest have not been stipulated and hence, the question of overdue amount does not arise.

(b) According to the information and explanations given to us and on the basis of our examination of the books of account, the Company has not taken any loans from companies, firms or other parties listed 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 is generally an adequate in ternal control procedure commensurate with the size of the company and the nature of its business, for the purchase of inventories & fixed assets and payment for expenses & for sale of goods. During the course of our audit, no major instance of continuing failure to correct any weaknesses in the internal controls has been noti ced.

5. a) Based on the audit procedures applied by us and according to the information, explanations and representation provided by the management, the particulars of contracts or arrangements referred to in section 301 of the Act have been enter ed in the register required to be maintained under that section.

b) In our opinion and according to our information and explanation given to us, the transactions made in pursuance of such contracts or arrangements entered in the register under section 301 of the Companies Act, 1956, in respect of any party during the period have been made at price which are reasonable having regard to the prevailing market prices at the relevant time.

6. In our opinion and according to the information and explanations given to us, the company has not accepted deposits from the public, and therefore the questions of compliance of the provisions of Section 58A and 58 AA of the Companies Act, 1956 and the rules framed there under and the directives issued by the Reserve Bank of India does not arise. No order has been passed by Company Law Board, Reserve Bank of India or any Court or any other Tribunal.

7. According to the information and explanation given to us and on the basis of such verfication as we considered appropriate, the company has an internal audit system commensurate with its size and nature of its business.

8. We have broadly reviewed the books of accounts maintained by the company pursuant to the notification of the Central Government for maintenance of the cost records u/s 209(1)(d) of the companies Act, 1956 and on the basis of such review, we are of the opinion, that prima-facie, the prescribed accounts and records have been made and maintained. We have not, however, carried out a detailed examination of the same.

9. (a) According to its records it is observed that the company is irregular in depositing undisputed statutory dues including Provident Fund, Employees'' State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and any other material statutory dues with the appr opriate authorities.

(b) According to the information and explanations given to us, there are some dues in respect of Income Tax, Value Added Tax and Service Tax but there are no dues in respect of Excise Duty, Customs Duty, Wealth Tax, Cess and other statutory dues are outstanding as on 31st March, 2014 which are due for a period of less than six months from the date they became due. There are no disputes with any of the above authorities.

(c) The disputed statutory dues that have not been deposited on account of disputed matters pending before appropriate authorities are as under.

Sr. Name of the Name of the Dues Section under Period to which No Statute which dispute amount relates is pending (FY)

1 The Income Income Tax Regular 2002-03 Tax Act,1961 Assessment u/s 143(3)

2005-06 2007-08 2008-09 2009-10

Penalty u/s 2002-03 271(1) (c) 2005-06

2 The Central CENVAT Refund 2009-10 Excise Act,1944 2009-10

2010-11

2010-11

Similar Goods 2010-11

2011-12

Differential Duties 2011-12



Sr. Name of the Amount Forum where the dispute No Statute (Rs. In Lacs) is pending 1 The Income 193.17 Income Tax Appellate Tribunal Tax Act,1961 58.59 Income Tax Appellate Tribunal 109.33 Income Tax Appellate Tribunal 21.18 Income Tax Appellate Tribunal 19.89 Commissioner of Income Tax (Appeals)

139.02 Income Tax Appellate Tribunal

53.68 Income Tax Appellate Tribunal

2 The Central 341.08 High court Excise Act,1944 83.74 Central Excise and Service Tax Appellate Tribunal 255.23 Central Excise Commissioner Appeal

153.73 High Court

344.00 Central Excise Commissioner Appeal

4.09 Central Excise Commissioner Appeal

21.40 Central Excise Commissioner Appeal

10. The Company has accumulated losses and has incurred cash losses during the financi al year covered by our audit and has also incurred cash losses in the immediately preceding financial year. The accumulated losses have exceeded fifty percent of the net worth of the company during the year under review.

11. In our opinion and according to the information and the explanations given to us, during the current year the Company has defaulted in repayment of its dues towards principal and interest to various banks an d financi al institution on due dates to the extent and for the period as given in note No. 4. Also the workin g capital limits have been overdrawn to the extent of Rs. 78.83 lacs.

12. The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13. As informed to us, the provisions of any special statute applicable to chit fund are not applicable to the Company.

14. The company is not dealing or trading in shares, securities, debentures and other investments, therefore, the question of maintaining records in respect of transactions and contracts does not arise.

15. In our opinion and according to the information and explanations given to us, the terms and conditions on which the company has given guarantees for the loans taken by others from banks are not prejudicial to the interest of the company.

16. On the basis of the records examined by us and relying on the information compiled by the Company for correlating the funds raised to the end use of term loans, we report that the Company has generally applied the term loans for the purposes for whi ch they were obtained.

17. According to the information and explanations given to us and on an over all examination of the Financial Statements of the Company and after placing reliance on the reasonable assumptions made by the Company for classifi cation of long term and short term usages of funds, we are of the opinion that, prima-facie, as at the close of year, short term funds with negligible exceptions have not been utilised for long term purposes an d vice – versa.

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

19. The Company has outstanding towards non convertible redeemable debentures of Rs. 4,000.00 lacs issued in earlier financial year which are secured by way of first pari passu charge on the fixed assets of intermedi ate plants and basic chemi cal plants of the company and personal guarantee of promoters/directors of the company.

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

21. Based on the audit procedures performed and the information and explanations given to us, we report that no fraud on or by the Company has been noticed or reported during the year, nor have we been informed of such case by the management.

For V. D. Shukla & Co. Chartered Accountants Firm Registration No. 110240W

Vimal D. Shukla Place : Ahmedabad Proprietor Date : 11th August, 2014 Membership No. 036416


Mar 31, 2013

Report on the Financial Statements

We have audited the accompanying financial statements of Kiri Industries Limited ("the Company" ), which comprise the Balance Sheet as at March 31, 2013, 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.

Auditor''s Responsibility

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

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

We believe that the audit evidence we have obtained is 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 Profit and Loss Account, of the loss 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, 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 [and proper returns adequate for the purposes of our audit have been received from 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 [and with the returns received from branches not visited by us]

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.

f. Since the Central Government has not issued any notification as to the rate at which the cess is to be paid under section 441A of the Companies Act, 1956 nor has it issued any Rules under the said section, prescribing the manner in which such cess is to be paid, no cess is due and payable by the Company.

Annexure to the Auditors'' Report

The Annexure referred to in paragraph 1 of the Our Report of even date to the members of Kiri Industries Limited. on the accounts of the company for the year ended 31st March, 2013.

On the basis of such checks as we considered appropriate and according to the information and explanation given to us during the course of our audit, we report that:

1. (a) The company has generally maintained proper records showing full particulars including quantitative details and situation of its fixed assets.

(b) As explained to us, fixed assets, according to the practice of the company, have been physically verified by the management at reasonable intervals in a phased verification programme, which our opinion, is reasonable looking to the size of the company and nature of its assets. According to the 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, no fixed asset has been disposed during the year and therefore does not affect the going concern assumption.

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

(b) In our opinion and according to the information and explanations 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 of the Company, we are of the opinion that, the Company is maintaining proper records of its inventory. The discrepancies which were noticed on physical verification of inventory as compared to book records, have been properly dealt with in the books of accounts.

3. (a) According to the information and explanations given to us and on the basis of our examination of the books of account, the company has granted unsecured loan to a Company covered in the register maintained under Section 301 of the Companies Act, 1956. We are of the opinion that the terms and conditions of loan are not prima facie prejudicial to the interest of the Company. The maximum amount involved during the year was Rs. 456.46 lacs and the period-end balance of the loan granted was Rs. 9.18 lacs. The terms of repayment of principal and interest have not been stipulated and hence, the question of overdue amount does not arise.

(b) According to the information and explanations given to us and on the basis of our examination of the books of account, the Company has not taken any loans from companies, firms or other parties listed 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 is generally an adequate internal control procedure commensurate with the size of the company and the nature of its business, for the purchase of inventories & fixed assets and payment for expenses & for sale of goods. During the course of our audit, no major instance of continuing failure to correct any weaknesses in the internal controls has been noticed.

5. a) Based on the audit procedures applied by us and according to the information, explanations and representation provided by the management, the particulars of contracts or arrangements referred to in section 301 of the Act have been entered in the register required to be maintained under that section.

b) In our opinion and according to our information and explanation given to us, the transactions made in pursuance of such contracts or arrangements entered in the register under section 301 of the Companies Act, 1956, in respect of any party during the period have been made at price which are reasonable having regard to the prevailing market prices at the relevant time

6. In our opinion and according to the information and explanations given to us, the company has not accepted deposits from the public, and therefore the questions of compliance of the provisions of Section 58A and 58 AA of the Companies Act, 1956 and the rules framed thereunder and the directives issued by the Reserve Bank of India does not arise. No order has been passed by Company Law Board, Reserve Bank of India or any Court or any other Tribunal.

7. According to the information and explanation given to us and on the basis of such checks as we considered appropriate, the company has an internal audit system commensurate with its size and nature of its business.

8. We have broadly reviewed the books of accounts maintained by the company pursuant to the notification of the Central Government for maintenance of the cost records u/s 209(1)(d) of the companies Act, 1956 and on the basis of such review, we are of the opinion, that prima-facie, the prescribed accounts and records have been made and maintained. We have not, however, carried out a detailed examination of the same.

9. (a) According to its records it is observed that the company is irregular in depositing undisputed statutory dues including Provident Fund, Employees'' State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and any other material statutory dues with the appropriate authorities.

(b) According to the information and explanations given to us, there are some dues in respect of Income Tax, Value Added Tax and Service Tax but there are no dues in respect of Excise Duty, Customs Duty, Wealth Tax, Cess and other statutory dues are outstanding as on 31st March, 2013 which are due for a period of less than six months from the date they became due. There are no disputes with any of the above authorities.

(c) The disputed statutory dues that have not been deposited on account of disputed matters pending before appropriate authorities are as under.



Sr. Name of the Name of the Dues Section under No Statute which dispute is pending

1 The Income Income Tax Regular Tax Act, 1961 Assessment u/s 143(3)

Regular Assessment u/s 143(3) r.w.s 147

Penalty u/s 271(1)(c)

2 The Central CENVAT Refund Excise Act, 1944

Similar Goods

Differential Duties

Name of the Statute Period to which Amount Forum where the amount relates (Rs. In dispute is (FY) Lacs) pending

The Income Tax Act, 1961 2001-02 108.21 High Court

2003-04 193.17 Income Tax Appellate Tribunal

2006-07 58.59 Income Tax Appellate Tribunal

2008-09 109.33 Income Tax Appellate Tribunal

2009-10 21.18 Commissioner of Income Tax (Appeals)

2008-09 43.73 Commissioner of Income Tax (Appeals)

2003-04 139.02 Income Tax Appellate Tribunal

2006-07 53.68 Income Tax Appellate Tribunal

The Central Excise Act,1944 2009-10 341.08 High court

2009-10 83.74 Central Excise and Service Tax Appellate Tribunal

2010-11 255.23 Central Excise Commissioner Appeal

2010-11 153.73 High Court 2010-11 344.00 Central Excise Commissioner Appeal

2011-12 4.09 Central Excise Commissioner Appeal

2011-12 21.40 Central Excise Commissioner Appeal



10. The Company has accumulated losses and has incurred cash losses during the financial year covered by our audit but has not incurred any cash losses in the immediately preceding financial year.

11. In our opinion and according to the information and the explanations given to us, during the current year the Company has defaulted in repayment of its dues towards principal and interest to various banks and financial institution on due dates to the extent and for the period as given in note No. 4. Also the working capital limits have been overdrawn to the extent of Rs. 142.54 lacs.

12. The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13. As informed to us, the provisions of any special statute applicable to chit fund are not applicable to the Company.

14. The company is not dealing or trading in shares, securities, debentures and other investments, therefore, the question of maintaining records in respect of transactions and contracts does not arise

15. In our opinion and according to the information and explanations given to us, the terms and conditions on which the company has which given guarantees for the loans taken by others from banks are not prejudicial to the interest of the company.

16. On the basis of the records examined by us and relying on the information compiled by the Company for correlating the funds raised to the end use of term loans, we report that the Company has generally 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 Financial Statements of the Company and after placing reliance on the reasonable assumptions made by the Company for classification of long term and short term usages of funds, we are of the opinion that, prima-facie, as at the close of year, short term funds with negligible exceptions have not been utilised for long term purposes, and vice - versa.

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

19. The Company has outstanding towards non convertible redeemable debentures of Rs. 4,000.00 lacs issued in the previous financial year which are secured by way of first pari passu charge on the fixed assets of intermediate plants and basic chemical plants of the company and personal guarantee of promoters/directors of the company.

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

21. Based on the audit procedures performed and the information and explanations given to us, we report that no fraud on or by the Company has been noticed or reported during the year, nor have been informed of such case by the management.



For V. D. Shukla & Co.

Chartered Accountants Firm Registration No. 110240W



Vimal D. Shukla

Place : Ahmedabad Proprietor

Date : May 28, 2013 Membership No. 036416


Mar 31, 2012

We have audited the attached Balance Sheet of KIRI INDUSTRIES LIMITED as at 31st March, 2012 and Statement of Profit & Loss and the Cash Flow statement for the year ended on that date. These Financial Statements are the responsibility of the Company's Management. Our responsibility is to express an opinion on these financial statements based on our Audit.

1 We conducted our audit in accordance with the auditing standards generally accepted in India. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from any 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 over all presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

2 As required by the Companies (Auditors' Report) Order, 2003 as amended by Companies (Auditors' Report) (Amendment) Order, 2004 issued by the Central Government in terms of Section 227(4 A) of the Companies Act , 1956 , we annex hereto a Statement on the matters specified in paragraphs 4 and 5 of the said Order.

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

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

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

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

(iv) In our opinion, the Balance Sheet, Statement of Profit and Loss and Cash Flow statement dealt with by this report comply with the accounting standards referred to in sub Section 3(C) of Section 211 of

the Companies Act, 1956 except in the cases specifically mentioned in our notes nos (1.11) and (49).

(v) Based on the representations made by the Directors as on 31st March, 2012 and taken on record by the Board of Directors of the Company and the information and explanations given to us, none of the Directors is, as at 31st March, 2012 prima facie disqualified from being appointed as a Director in terms of clause (g) of sub Section (1) of Section 274 of the Companies Act, 1956.

(vi) In our opinion and to the best of our information and according to the explanations given to us, the said financial statements read together with the other notes thereon give the information required by the Companies Act, 1956 in the manner so required and present 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 31st March, 2012 and.

(b) in the case of the Statement of Profit and Loss, of the Loss 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 REFERRED TO IN PARAGRAPH 2 OF OUR AUDITORS' REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31st MARCH, 2012 OF KIRI INDUSTRIES 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 generally maintained proper records showing particulars, including quantitative details and situation of fixed assets.

b) As explained to us, fixed assets, according to the practice of the Company, are physically verified by the management at reasonable intervals, in a phased verification programme, which in our opinion, is reasonable looking to the size of the Company and the nature of its assets. According to the information and explanations given to us, no major discrepancies were noticed on physical verification.

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

(ii) a) As explained to us, inventories have been physically verified during the period by the management.

b) The procedures explained to us, which are followed by the management for physical verification of inventories, are in our opinion, 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 of the Company, we are of the opinion that , the Company is maintaining proper records of its inventory. The discrepancies which were noticed on physical verification of inventory as compared to book records, have been properly dealt with in the books of accounts.

(iii) a) The Company has granted unsecured loan to a Company covered in the register maintained under Section 301 of the Companies Act, 1956. We are of the opinion that the terms and conditions of loan are not prima facie prejudicial to the interest of the Company. The maximum amount involved during the year was Rs. 868.47 lacs and the period- end balance of the loan granted was Rs. 741.52 lacs. The terms of repayment of principal and interest have not been stipulated and hence, the question of overdue amount does not arise.

b) The Company has not taken unsecured loans from any Company covered in the register maintained under Section 301 of the Companies Act, 1956.

(iv) In our opinion and according to the information and explanations given to us, there are generally 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 the sale of goods and services. No major weaknesses in internal control had come to our notice.

(v) a) On the basis of audit procedure performed by us, and according to the information, explanation and representation given to us, we are of the opinion that, the transaction in which Directors were interested, and which were required to be entered in the register under Section 301 of the Companies Act, 1956, have been so entered.

b) In our opinion and according to our information and explanation given to us, the transactions made in pursuance of such contracts or arrangements entered in the register under Section 301 of the Companies Act, 1956, in respect of any party during the period have been made at price which are reasonable having regard to the prevailing market prices at the relevant time.

(vi) In our opinion and according to the information and explanations given to us, the Company has not accepted deposits from the public, and therefore the questions of compliance of the provisions of Section 58A and 58AA of the Companies Act, 1956 and the rules framed thereunder and the directives issued by the Reserve Bank of India does not arise. No order has been passed by Company Law Board, Reserve Bank of India or any Court or any other Tribunal.

(vii) According to the information and explanation given to us and on the basis of such checks as we considered appropriate, the Company has an internal audit system commensurate with its size and nature of its business. The Company has appointed a firm of Chartered Accountants for Internal Audit during the year under review.

(viii) We have broadly reviewed the books of accounts maintained by the Company pursuant to the notification of the Central Government for maintenance of the cost records u/s 209(1)(d) of the companies Act, 1956 and on the basis of such review, we are of the opinion, that prima-facie, the prescribed accounts and records have been made and maintained. We have not, however, carried out a detailed examination of the same.

(ix) a) According to its records it is observed that the Company is irregular in depositing undisputed statutory dues including Provident Fund, Employees' State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and any other material statutory dues with the appropriate authorities.

b) According to the information and explanations given to us, there are some dues in respect of Income Tax but there are no dues in respect of Value Added Tax, Excise Duty, Customs Duty, Wealth Tax, Service Tax, Cess and other statutory dues are outstanding as on 31st March, 2012 which are due for a period of less than six months from the date they became due. There are no disputes with any of the above authorities.

c) The disputed statutory dues that have not been deposited on account of disputed matters pending before appropriate authorities are as under.

Sr. Name of the Name of the Dues Section under Period to No Statute which dispute which amount is pending relates (FY)

1 The Income In come Tax Regular 2001-02 Tax Act, 1961 Assessment u/s 143(3) 2003-04

2006-07

2008-09

2009-10 Penalty u/s 2003-04 271(1)(c)

2 The Central CENVAT Refund 2009-10 Excise Act, 1944

2009-10

2010-11

2010-11

Sr. Name of the Name of the Dues Section under Period to No Statute which dispute which amount is pending relates (FY) Similar Goods 2010-11

Differential Duties 2011-12

2009-09

Sr. Name of the Amount Forum where No Statute (Rs. In dispute is Lacs) pending

1 The Income 108.21 High Court Tax Act, 1961 193.17 Income Tax Appellate Tribunal

58.59 Income Tax Appellate Tribunal

109.33 Commissioner of Income Tax (Appeals)

21.18 Commissioner of Income Tax (Appeals)

139.02 Commissioner of Income Tax (Appeals)

53.68 Commissioner of Income Tax (Appeals)

2 The Central 341.08 High court Excise Act, 1944

83.74 Central Excise and Service Tax Appellate Tribunal

255.23 Central Excise Commissioner Appeal

153.73 High Court

344.00 Central Excise Commissioner Appeal

4.09 Central Excise Commissioner Appeal

21.40 Central Excise Commissioner Appeal

287.49 Central Excise and Service Tax Appellate Tribunal

Note : Out of the above the Income Tax liabilities amounting to Rs. 139.02 lacs for A.Y. 2003-04 and of Rs. 53.68 lacs for A.Y. 2006-07 in respect of penalty u/s 271(1)(c) of the Income Tax Act, 1961 have been

deleted following the order of CIT(Appeals) after 31st March, 2012. To this extent, the demand gets reduced.

(x) The Company has neither the accumulated losses at the end of the financial period nor it has incurred cash losses in such financial year under report and in the financial year immediately preceding such financial year also.

(xi) In our opinion and according to the information and the explanations given to us, during the current year the Company has defaulted in repayment of its dues towards principal and interest to various banks and financial institution on due dates to the extent and for the period as given in note No. 4. Also the working capital limits have been overdrawn to the extent of Rs. 3569.66 lacs.

(xii) The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

(xiii) As informed to us, the provisions of any special statute applicable to chit fund are not applicable to the Company.

(xiv) The Company is not dealing or trading in shares, securities, debentures and other investments, therefore, the question of maintaining records in respect of transactions and contracts does not arise.

(xv) In our opinion and according to the information and explanations given to us, the terms and conditions on which the Company has given guarantees for the loans taken by others from banks are not prejudicial to the interest of the Company.

(xvi) On the basis of the records examined by us and relying on the information compiled by the Company for correlating the funds raised to the end use of term loans, we report that the Company has generally applied the term loans for the purposes for which they were obtained.

(xvii) According to the information and explanations given to us and on an overall examination of the Financial Statements of the Company and after placing reliance on the reasonable assumptions made by the Company for classification of long term and short term usages of funds, we are of the opinion that, prima-facie, as at the close of year, short term funds with negligible exceptions have not been utilised for long term purposes, and vice-e-versa.

(xviii) The Company has not made any preferential allotment of shares to parties and companies covered in the Register maintained under Section 301 of the Companies Act, 1956.

(xix) The Company has issued Rs. 4,000.00 lacs Non-convertible Redeemable debentures during the year which are secured by way of first pari-passu charge on fixed assets of Intermediate plant and Basic Chemicals Plant of the Company and personal guarantee of Promoters/Directors of the Company.

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

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

For V. D. Shukla & Co.

Chartered Accountants

Firm Registration No. 110240W

Vimal D. Shukla

Place : Ahmedabad Proprietor

Date : 17th August, 2012 Membership No. 036416


Mar 31, 2011

We have audited the attached Balance Sheet of KIRI INDUSTRIES LIMITED, as at 31st March, 2011 and the annexed Profit & Loss Account for the year ended on that date, and also the cash flow statement for the year ended on that date. These Financial Statements are the responsibility of the Company's Management. Our responsibility is to express an opinion on these financial statements based on our Audit.

1 We conducted our audit in accordance with the auditing standards generally accepted in India. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from any 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 over all presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

2 As required by the Companies (Auditors' Report) Order, 2003 as amended by Companies (Auditors' Report) (Amendment) Order,2004 issued by the Central Government in terms of Section 227(4A) of the Companies Act, 1956, we annex hereto a Statement on the matters specified in paragraphs 4 and 5 of the said Order .

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

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

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

(iii) The Balance Sheet and Profit and Loss Account and cash flow statement dealt with by this report are in agreement with the books of accounts of the Company.

(iv) In our opinion, the Balance Sheet and the Profit and Loss Account and cash flow statement dealt with by this report comply with the accounting standards referred to in sub section 3 (C) of Section 211 of the Companies Act , 1956.

(v) Based on the representations made by the Directors as on 31st March, 2011 and taken on record by the Board of Directors of the Company and the information and explanations given to us, none of the Directors is, as at 31st March, 2011 prima facie disqualified from being appointed as a Director in terms of clause (g) of sub section (1) of Section 274 of the Companies Act, 1956

(vi) In our opinion and to the best of our information and according to the explanations given to us, the said financial statements read together with the other notes thereon give the information required by the Companies Act, 1956 in the manner so required and present 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 31st March, 2011 and

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

(c) in the case of cash flow statement, of the cash flows for the year ended on that date.

ANNEXURE REFERRED TO IN PARAGRAPH 2 OF OUR AUDITORS' REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31st MARCH, 2011 OF KIRI INDUSTRIES 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 generally maintained proper records showing particulars, including quantitative details and situation of fixed assets;

b) As explained to us, fixed assets, according to the practice of the Company, are physically verified by the management at reasonable intervals, in a phased verification programme, which in our opinion, is reasonable looking to the size of the Company and the nature of its assets. According to the information and explanations given to us, no major discrepancies were noticed on physical verification.

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

(ii) a) As explained to us, inventories have been physically verified during the year by the management.

b) The procedures explained to us, which are followed by the management for physical verification of inventories, are in our opinion, 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 of the Company, we are of the opinion that, the Company is maintaining proper records of its inventory. The discrepancies which were noticed on physical verification of inventory as compared to book records, have been properly dealt with in the books of accounts.

(iii) a) The Company has granted unsecured loan to a Company covered in the register maintained under Section 301 of the Companies Act, 1956. We are of the opinion that the terms and conditions of loan are not prima facie prejudicial to the interest of the Company. The maximum amount involved during the year and the year-end balance of the loan granted was Rs. 868.03 Lacs. The terms of repayment of principal and interest have not been stipulated and hence, the question of overdue amount does not arise.

b) The Company has taken unsecured loans from a Company covered in the register maintained under Section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs.1841.59 Lacs and the year end balance was Rs. Nil.

c) In our opinion and according to the information and the explanation given to us the interest and other terms and conditions are not prima-facie prejudicial to the interest of the Company and the terms of repayment have not been stipulated.

d) In our opinion and according to the information and the explanation given to us the Company has been regular in repayment of interest. There is no stipulation with respect to repayment of principal amount.

(iv) In our opinion and according to the information and explanations given to us, there are generally 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 the sale of goods and services. No major weaknesses in internal control had come to our notice.

(v) a) On the basis of audit procedure performed by us, and according to the information, explanation and representation given to us, we are of the opinion that, the transaction in which directors were interested, and which were required to be entered in the register under section 301 of the Companies Act, 1956, have been so entered;

b) In our opinion and according to our information and explanation given to us, the transactions made in pursuance of such contracts or arrangements entered in the register under section 301 of the Companies Act, 1956, in respect of any party during the year have been made at price which are reasonable having regard to the prevailing market prices at the relevant time.

(vi) In our opinion and according to the information and explanations given to us, the Company has not accepted deposits from the public, and therefore the questions of compliance of the provisions of Section 58A and 58AA of the Companies Act, 1956 and the rules framed thereunder and the directives issued by the Reserve Bank of India does not arise. No order has been passed by Company Law Board, Reserve Bank of India or any Court or any other Tribunal.

(vii) According to the information and explanation given to us and on the basis of such checks as we considered appropriate, the Company has an internal audit system commensurate with its size and nature of its business. The Company has appointed a firm of Chartered Accountants for Internal Audit during the year under review.

(viii) We have broadly reviewed the books of accounts maintained by the Company pursuant to the notification of the Central Government for maintenance of the cost records u/s 209(1)(d) of the Companies Act, 1956 and on the basis of such review, we are of the opinion, that prima-facie, the prescribed accounts and records have been made and maintained. We have not, however, carried out a detailed examination of the same.

(ix) a) According to its records, the Company is generally regular in depositing undisputed statutory dues including Provident Fund, Employees' State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and any other material statutory dues with the appropriate authorities.

b) According to the information and explanations given to us, there are no dues in respect of Income Tax, Value Added Tax, Excise Duty, Customs Duty, Wealth Tax, Service Tax, Cess and other statutory dues are outstanding as on 31st March, 2011 which are due for a period of less than six months from the date they became due. There are no disputes with any of the above authorities.

c) The disputed statutory dues that have not been deposited on account of disputed matters pending before appropriate authorities are as under;

Sr. Name of the Name of the Dues Section under Period to which Amount Forum where the No Statute which dispute amount relates (Rs. In dispute is is pending (FY) Lacs) pending

1 The Income Income Tax Regular 2001-02 108.21 High Court Tax Act, 1961 Assessment u/s 143(3) 2003-04 187.63 Income Tax Appellate Tribunal

2006-07 56.57 Income Tax Appellate Tribunal

2008-09 109.33 Commissioner of Income Tax (Appeals)

Penalty u/s 2003-04 139.02 Commissioner of Income 271(1) (c) Tax (Appeals)

2006-07 53.68 Commissioner of Income Tax (Appeals)

2 The Central CENVAT Refund 2008-09 137.34 High Court Excise Act, 1944

2008-09 287.49 Central Excise and Service Tax Appellate Tribunal

Similar Goods 2009-10 344.00 Central Excise Commissioner 2010-11 4.09 Assistant Commissioner

Third Time Cess 2008-09 2.53 Central Excise Commissioner Appeal

2008-09 / 7.37 Joint Commissioner 2009-10

2010-11 5.74 Joint Commissioner

2010-11 0.52 Assistant Commissioner

(x) The Company has neither the accumulated losses at the end of the financial year nor it has incurred cash losses in such financial year under report and in the financial year immediately preceding such financial year also.

(xi) In our opinion and according to the information and the explanations given to us, the Company has generally not defaulted in repayment of dues to financial institutions or banks.

(xii) The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

(xiii) As informed to us, the provisions of any special statute applicable to chit fund are not applicable to the Company.

(xiv) The Company is not dealing or trading in shares, securities, debentures and other investments, therefore, the question of maintaining records in respect of transactions and contracts does not arise.

(xv) In our opinion and according to the information and explanations given to us, the terms and conditions on which the Company has given guarantees for the loans taken by others from banks are not prejudicial to the interest of the Company.

(xvi) On the basis of the records examined by us and relying on the information compiled by the Company for corelating the funds raised to the end use of term loans, we report that the Company has applied the term loans for the purposes for which they were obtained.

(xvii) According to the information and explanations given to us and on an overall examination of the Financial Statements of the Company and after placing reliance on the reasonable assumptions made by the Company for classification of long term and short term usages of funds, we are of the opinion that, prima-facie, as at the close of year, short term funds with negligible exceptions have not been utilised for long term purposes, and vice - versa.

(xviii) The Company has not made any preferential allotment of shares to parties and companies covered in the Register maintained under Section 301 of the Companies Act, 1956.

(xix) The Company has not issued any debentures during the year.

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

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

For V. D. Shukla & Co.

Chartered Accountants

Firm Registration No. 110240W

Vimal D. Shukla

Place: Ahmedabad Proprietor

Date : 12th August, 2011 Membership No. 036416









 
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