Auditor Report of Turner Industries Ltd.

Mar 31, 2014

1. I have audited the attached balance sheet of LASER DIAMONDS LTD as at 31 st March 2014, the profit and loss account and also the cash flow statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the company''s management. My responsibility is to express an opinion on these financial statements based on my audit.

2. I have conducted my audit in accordance with the auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audit provides a reasonable basis for my opinion.

3. As required by the Companies (Auditor''s report) order 2003, issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said order. Further to my comments in the Annexure referred to above, I report that:

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

ii) In my opinion, proper books of account as required by law have been kept by the company so far as appears from my examination of those books.

III) The balance sheet, profit and loss account and cash flow statement dealt with by this report are in agreement with the books of account.

IV) In my opinion, the balance sheet, profit and loss account and cash flow statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956.

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

VI) In my opinion and to the best of my information and according to the explanations given to me, 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 the balance sheet, of the state of affairs of the company as at 31 st March 2014.

b) I n the case of profit and loss account, of the loss for the year ended on that date; and I n the case of the Cash Flow Statement of the Cash Flows for the year ended on that date.

ANNEXURE TO THE AUDITORS REPORT

Referred to in paragraph 3 of our report of even date.

1) (a) On the basis of examination of the records of the company, I report that the company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

(b) The Company has maintained proper records showing full particulars, including quantitative details and situation off fixed assets. All fixed assets have not been physically verified by the management during the year but there is a regular programme.of verification which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. As informed, no material discrepancies were noticed on such verification. The Company has disposed off building used as Registered office.However,in our opinion,this will not affect going concern concept.

2) a) Inventory as on 31.03.2014 is Rs.70,51,350.00 [P Y. 70,51,350.00], Physical verification of Inventories has taken, during the year by management.

b) In my opinion and according to the information and explanation given to me, 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 business.

c) On the basis of examination of the records of the inventory and according to information and explanations given to me, the company is maintaining proper records of inventory.

3) The company has taken loans, being unsecured, to the tune of Rs.6.35 Lakhs from one Party during the year and the total loans outstanding as at 31.03.2014 is Rs.6.35 Lakhs from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956.

4) In my opinion and according to the information and explanations given to me, there are adequate internal control procedures commensurate with the size of the company and the nature of its business with regard to purchase of inventory and with regard to the sale of goods. During the course of our audit, I have not observed any continuing failure to correct major weaknesses in internal controls.

5) In my opinion and according to the information and explanations given to me, there are no transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956.

6) In my opinion and according to the information and explanations given to me, the company has not accepted any deposit from Public.

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

8) The Industry in which Company''s business is involved is not prescribed u/s 210(1) (d) for maintenance of cost records.

9) (a) As per the information and explanations given to me and records of the company, the company is regular in depositing with appropriate authorities undisputed statutory dues including income tax, sales tax, excise duty, cess and other material statutory dues applicable to it. No wealth tax and custom duty is payable by company.

(b) According to the information and explanations given to me and records of the company, no undisputed amounts payable in respect of income tax, wealth tax, sales tax, customs duty, excise duty and cess were in arrears, as at 31.03.14 for a period of more than six months from the date they became payable.

c) According to the information and explanations given to me, there are no dues of sales tax, income tax, customs duty, wealth tax, excise duty and cess which have not been deposited on account of any dispute.

10) The company has accumulated losses at the end of the financial year. The Company has incurred Cash Losses during the financial year covered by the audit and in the immediately preceding financial year.

11) In my opinion and according to the information and explanations given to me, the company has not defaulted in repayment of dues to a financial institution, bank or debenture holders.

12) As per records of the company, 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) In my opinion, the company is not a chit fund or a nidhi mutual benefit fund/society. Therefore, the provisions of clause 4 (xiii) of the Companies (Auditor''s Report) Order, 2003 are not applicable to the Company.

14) In my opinon, the company is not dealing in or trading in shares, securities debentures and other investments. Accordingly, the provisions of clause 4 (xiv) of the Companies (Auditor1 Report) Order 2003 are not applicable to the Company.

15) As per the records of the company, the company has not given guarantees for loans taken by other from banks or financial institutions.

16) As per records of the company, the company has not raised any term loan.

17) According to the information and explanations given to me and on an overall examination of the balance sheet of the company, we report that the no funds raised on short-term basis have been used for long-term investment. No long-term funds have been used to finance short-term assets except permanent working capital.

18) According to the information and explanations given to me and as per records of the company, the company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act.

19) According to the information and explanations given to me, during the period covered by my audit report, the company had not issued any debentures during the year.

20) During the course of my examination of books of accounts carried out in accordance with generally accepted practices in India, I have neither come across any incidence of fraud on or by the company nor have we beeninformed of any such case by the management.

Date : 11.08.2014 (BHARAT KUMAR N. JAIN) Place: Chennai Chartered Accountant 376, Mint Street, 2nd Floor Chennai-600 079, [M. No.027891]

---

Mar 31, 2013

1. I have audited the attached balance sheet of LASER DIAMONDS LTD as at 31 March 2013, the profit and loss account and also the cash flow statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the company''s management. My responsibility is to express an opinion on these financial statements based on my audit.

2. I have conducted my audit in accordance with the auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audit provides a reasonable basis for my opinion.

3. As required by the Companies (Auditor''s report) order 2003, issued by the Central Government of India in terms of sub- section (4A) of section 227 of the Companies Act, 1 956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said order.

Further to my comments in the Annexure referred to above, I report that:

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

ii) In my opinion, proper books of account as required bylaw have been kept by the company so far as appears from my examination of those books.

III) The balance sheet, profit and loss account and cash flow statement dealt with by this report are in agreement with the books of account.

IV) In my opinion, the balance sheet, profit and loss account and cash flow statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 2 1 1 of the Companies Act, 1956.

V) On the basis of written representation received from the directors, as on 31 st March 201 3 and taken on record by the Board of Directors, 1 report that none of the directors are disqualified as on 3 1 st March 201 3 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of Companies Act, 1956;

VI) In my opinion and to the best of my information and according to the explanations given to me, the said accounts give the information required by the Companies Act, 1 956, 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 31st March 201 3;

b) In the case of profit and loss account, of the loss for the year ended on that date; and In the case of the Cash Flow Statement of the Cash Flows for the year ended on that date.

ANNEXURE TO THE AUDITORS REPORT

Referred to in paragraph 3 of our report of even date.

1) (a) On the basis of examination of the records of the company, I report that the company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

(b) The Company has maintained proper records showing full'' particulars, including quantitative details and

situation off fixed assets. All fixed assets have not been physically verified by the management during the year but there is a regular programme.of verification which, in our opinion, is reasonable having regard to the si2e of the Company and the nature of its assets. As informed, no material discrepancies were noticed on such verification. The Company has disposed off building used as Registered office.However,in our opinion,this will not affect going concern concept.

2) a) Inventory as on 31.03.2013 is Rs.70,51,350.00 [P Y. 57,99,91 1.00], Physical verification of Inventories has taken, during the year by management.

b) In my opinion and according to the information and explanation given to me, 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 business.

c) On the basis of examination of the records of the inventory and according to information and explanations given to me, the company is maintaining proper records of inventory.

3) The company has not entered into any contracts or arrangements attracting the provision of section 297 & 301 of the Companies Act 1956 and hence the Clause (V) of the said Order is not applicable.

4) In my opinion and according to the information and explanations given to me, there are adequate infernal control procedures commensurate with the size of the company and the nature of its business with regard to purchase of inventory and with regard to the sale of goods. During the course of our audit, I have not observed any continuing failure to correct major weaknesses in internal controls.

5) In my opinion and according to the information and explanations given to me, there are no transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956.

6) In my opinion and according to the information and explanations given to me, the company has not accepted any deposit from Public.

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

8) The Industry in which Company''s business is involved is not prescribed u/s 210(1) (d) for maintenance of cost records.

9) (a) As per the information and explanations given to me and records of the company, the company is regular in depositing with appropriate authorities undisputed statutory dues including income tax, sales tax, excise duty, cess and other material statutory dues applicable to it. No wealth tax and custom duty is payable by company.

(b) According to the information and explanations given to me and records of the company, no undisputed amounts payable in respect of income tax, wealth tax, sales tax, customs duty, excise duty and cess were in arrears, at at 3 1 03.13 for a period of more than six months from the date they became payable.

c) According to the information and explanations given to me, there are no dues of sales tax, income tax, customs duty, wealth tax, excise duty and cess which have not been deposited on account of any dispute.

10) In my opinion, the accumulated losses of the company is Rs. 169.58 Iocs as on 31.03.2013, which is not more than 50% of its net worth.

11) In my opinion and according to the information and explanations given to me, the company has not defaulted in repayment of dues to a financial institution, bank or debenture holders.

12) As per records of the company, 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) In my opinion, the company is not a chit fund or a nidhi mutual benefit fund/society. Therefore, the provisions of clause 4 (xiii) of the Companies (Auditor''s Report) Order, 2003 are not applicable to the Company.

14) In my opinon, the company is not dealing in or trading in shares, securities debentures and other investments. Accordingly, the provisions of clause 4 (xiv) of the Companies (Auditor'' Report) Order 2003 ore not applicable to the Company.

15) As per the records of the company, the company has not given guarantees for loans taken by other from banks or financial institutions.

16) As per records of the company, the company has not raised any term loan.

17) According to the information and explanations given to me and on an overall examination of the balance sheet of the company, we report that the no funds raised on short-term basis have been used for long-term investment. No long-term funds have been used to finance short-term assets except permanent working capital.

1 8) According to the information and explanations given to me and as per records of the company, the company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act.

19) According to the information and explanations given to me, during the period covered by my audit report, the company had not issued any debentures during the year.

20) During the course of my examination of books of accounts carried out in accordance with generally accepted practices in India, I have neither come across any incidence of fraud on or by the company nor have we been informed of any such case by the management.

Date: 12.08.2013

Place: Chennai (BHARAT KUMAR N. JAIN)

Chartered Accountant

376, Mint Street, 2nd Floor

Chennai-600 079, [M. No.027891]

---

Mar 31, 2012

I have audited the attached balance sheet of LASER DIAMONDS LTD as at 31 st March 2012, the profit and loss account and also the cash flow statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the company's management. My responsibility is to express an opinion on these financial statements based on my audit.

I have conducted my audit in accordance with the auditing standards generally accepted In India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audit provides a reasonable basis for any opinion.

As required by the Companies (Auditor's report) order 2003, issued by the Central Government of India in terms of subsection (4A) of section 22 7 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said order.

Further to my comments in the Annexure referred to above, I report that:

I have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of my audit.

In my opinion, proper books of account as required by law have been kept by the company so far as appears from my examination of those books.

The balance sheet, profit and loss account and cash flow statement dealt with by this report are in agreement with the books of account.

In my opinion, the balance sheet, profit and loss account and cash flow statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956.

On the basis of written representation received from the directors, as on 31st March 2012 and taken on record by the Board of Directors, I report that none of the directors are disqualified as on 31st March 2012 from being appointed as a director in terms of clause (g) of sub-section (1) of section 2 74 of Companies Act 1956;

In my opinion and to the best of my information and according to the explanations given to me. 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.

In the case of the balance sheet of the state of affairs of the company as at 31st March 2012;

In the case of profit and loss account of the toss for the year ended on that date; and

In the case of the Cash Flow Statement of the Cash Flows for the year ended on that date.

LASER DIAMONDS LIMITED

Referred to in paragraph 3 of out report of even dale.

1) (a) On the basis of examination of the records of the company . report that the company has maintained proper records showing full particulars including quantitative details and satiation of fixed assets. (b) On the basis of examination of the records of the company report that all the assets have not been physically verified by the management during the year but there is a regular programme of verification which. In my opinion, is reasonable, having regard to the size of the company and the nature of the assets. No material discrepancies were noticed on such verification.

2) a] Inventory as on 31.03.2012 is Rs.57.99,911.00(P.Y. 55.99.205.00) physical verification of inventories has taken during the year by management.

b) In my opinion and according to the information and explanation given to me. 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 business.

c) On the basis of examination of the records of the inventory and according to information and explanations given to me, the company Is maintaining proper records of Inventory.

3) The company has not entered into any contracts or arrangements attracting the provision of section 29 7 & 301 of the Companies Act 1956 and hence the Clause (V) of the said Order is not applicable.

4) In my opinion and according to the Information and explanations given to me. there are adequate internal control procedures commensurate with the size of the company and the nature of Its business with regard to purchase of Inventory and with regard to the sale of goods. During the course of our audit, I have not observed any continuing failure to correct major weaknesses In Internal controls.

5) In my opinion and according to the information and explanations given to me, there are no transactions made In pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956.

6) In my opinion and according to the Information and explanations given to me, the company has not accepted any deposit from Public.

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

8) The Industry in which Company's business is involved is not prescribed u/s 210(1) (d) for maintenance of cost records.

9) (a) As per the Information and explanations given to me and records of the company, the company is regular in depositing with appropriate authorities undisputed statutory dues Including income tax, sales tax, excise duty, cess and other material statutory dues applicable to it. No wealth tax and custom duty is payable by company.

(b) According to the information and explanations given to me and records of the company, no undisputed amounts payable In respect of income tax, wealth tax, sales tax, customs duty, excise duty and cess were in arrears, as at 31.03.12 for a period of more than six months from the date they became payable.

c) According to the information and explanations given to me, there are no dues of sales tax, income tax, customs duty, wealth tax, excise duty and cess which have not been deposited on account of any dispute.

10) In my opinion, the accumulated losses of the company is Rs. 168.74 lacs as on 31.03.2012, which is not more than 50% of its net worth.

11) In my opinion and according to the information and explanations given to me, the company has not defaulted in repayment of dues to a financial institution, bank or debenture holders.

12) As per records of the company, 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) In my opinion, the company Is not a chit fund or a nidhi mutual benefit fund/society. Therefore, the provisions of clause 4 (xiii) of the Companies (Auditor's Report) Order, 2003 are not applicable to the Company.

14) In my opinion, the company Is not dealing in or trading in shares, securities debentures and other investments. Accordingly, the provisions of clause 4 (xiv) of the Companies (Auditor1 Report) Order 2003 are not applicable to the Company.

15) As per records of the company the company has not given guarantees for loans taken by other from banks or financial institutions.

16) As per records of the company, the company has not raised Any term loan.

17) According to the information and explanations given to me and on an overall examination of the balance sheet of the company. we report that the no funds raised on short-term basis have been used for long-term investment No long-term funds have been used to finance short-term assets except permanent working capital.

18) According to the information and explanations given to me and as per records of the company the company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act.

19) According to the information and explanation given to me during the period covered by my audit report the company had not issued any debentures during the year.

20) During the course of my examination of books of accounts carried out accordance with general accepted practices in India. I have neither come across any Incidence of fraud on or by the company nor have we been informed of any such case by the management.

Date : 24.08.2012 (BHARAJ KUMAR N.JAIN)

Place : Chennai 376. Mint Street. 2nd Floor.

Chennai-600 079. [M. No.027891]