Home  »  Company  »  Lords Chloro Alkali  »  Quotes  »  Auditor Report
Enter the first few characters of Company and click 'Go'

Auditor Report of Lords Chloro Alkali Ltd.

Mar 31, 2015

We have audited the accompanying financial statements of Lords Chloro Alkali Limited ('the Company'), which comprise the Balance Sheet as at March 31, 2015, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in section 134 (5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance 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 the 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 the frauds and other irregularities; selection and application of appropriate accounting policies; making judgment and estimates that are reasonable and prudent; and design, implementation and maintenance of internal financial control, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit.

We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the 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 of the financial statements that give true and fair view 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 company's directors, as well as evaluating the overall presentation of the financial statements.

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

Basis of Qualified Opinion

We draw attention to:

a) Note no. B. 27 to the financial statements, which describes that balances of current assets, sundry debtors, loans and advances and current liabilities including sundry creditors are subject to confirmation and adjustments necessary upon reconciliation thereof. The effect of the adjustment arising from the reconciliation/confirmation that may arise is not ascertainable.

b) Note no. B. 30 to the financial statements, which describes that company has not transferred an amount of Rs. 11.64 lakhs (previous year Rs. 11.64 Lakhs) to the "Investor Education and Protection Fund", as required. This is a contravention of the provisions of the section 205C of the Companies Act, 1956.

Qualified Opinion

Subject to our comments in the para above, in our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements, give the information required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India, of the state of affairs of the company as at March 31, 2015 and its loss and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors' Report) Order, 2015 ('the Order') issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure a statement on the matters specified in the paragraph 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 purpose of our audit.

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

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

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

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

(f) With respect to the other matters included in the auditor's report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to best of our information and according to the explanation given to us:

i. The company has disclosed the impact of pending litigations on its financial position in its financial statement- Refer Note B.26(a) to the financial statements;

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

iii. There has been delay in transferring the amounts, which was required to be transferred, to the investor's education and protection fund by the company - Refer Note B.30 to the financial statements.

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

i. (a) The Company has maintained reasonable records to show full particulars including quantitative details and situations of fixed assets.

(b) As per the information and explanations given to us, fixed assets have been physically verified by the management as reasonable interval. No material discrepancies were noticed on such verification.

ii. (a) As per the information and explanations given to us, the inventories have been physically verified during the year by the management at reasonable intervals.

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

(c) In our opinion and on the basis of our examination of the records, the Company is generally maintaining proper records of its inventories. No material discrepancy was noticed on physical verification of stocks by the management as compared to book records.

iii. 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 any loans, secured or unsecured, to companies, firms or other parties listed in the register maintained under Section 189 of the Companies Act, 2013. Consequently, the provisions of clauses (iii) (a) and (iii) (b) of the order are not applicable to the Company.

iv. in our opinion and according to the information and explanations given to us, there is generally an adequate internal control procedure 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 instance of continuing failure to correct any weaknesses in the internal control system has been noticed.

v. According to the information and explanations given to us, the Company has not accepted any deposit from the public during the year and hence the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules framed there under are not applicable to the Company.

vi. According to the information and explanations given to us, the Companies (Cost Records and Audit) Rules, 2014, prescribed by the Centra! Government under Section 148 (1) of the Companies Act, 2013 are not applicable to the Company.

vii. (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, undisputed statutory dues including provident fund, employees' state insurance, income-tax, sales-tax, wealth tax, service tax, duty of customs, duty of excise, value added tax, cess to the extent applicable and any other statutory dues have generally been regularly deposited with the appropriate authorities. According to the information and explanations given to us, there were no outstanding statutory dues as at the last day of the financial year concerned for a period of more than six months from the date they became payable except below:

S. No. Nature of Dues Amount (Rs. in Lakhs)

1 Income Tax (TPS) 1.33

2 Wealth Tax 6.58

3 Investor Education & Protection Fund 11.64

4 Service Tax 8.72

(b) According to the information and explanations given to us, there is no amounts payable in respect of income tax or sales tax or wealth tax or service tax or duty of customs or duty of excise or value added tax or cess, which have not been deposited on account of any disputes except below:-

S . Name of the Statue Nature of Period to No. Dues which the amount re- lates

1. Central Excise Excise 1995-99 Act, 1944 Duty

2. Central Excise Excise 1996-97 Act,1944 Duty

3. Central Excise Excise 1996-99 Act, 1944 Duty

4. Central Excise Excise 2003-04 Act,1944 Duty

5. Central Excise Excise . 2011-12 Act,1944 Duty

6. Rajasthan Sales Tax Electricity 2004-06 Act, 1994 Duty

7 Rajasthan" Sales Tax Entry Tax 2003-11 Act 1994

8. Income Tax Act, 1961 Income 1996-97 Tax

S . Name of the Statue Amount (Rs.) Pending at As- No. sessing Authority

1. Central 64.76 lacs Commissioner Act, 1944 (141.58 lacs) (Appeals) Jaipur/ CESTAT New DELHI

2. Central Excise 145.62 lacs CESTAT,New Act,1944 (145.62 lacs) Delhi

3. Central Excise 110.72 lacs Hon'ble High Act, 1944 (110.72 lacs) Court, Rajasthan

4. Central Excise 12.63 lacs Hon'bie High Act,1944 (12,63 lacs) Court, Rajasthan

5. Central Excise 1.53 lacs Additional Corn- Act,1944 (1.53 lacs) missioner, Jaipur

6. Rajasthan Sales Tax 20.03 lacs Dy. Commissioner- Act, 1994 (20.03 lacs) Commercial Taxes

7 Rajasthan" Sales Tax 27.28 lacs Dy. Commissioner- Act 1994 (27.28 lacs) Commercial Taxes (Appeals)

8. Income Tax Act, 1961 287,17 lacs Commissioner Ap- (287.17 lacs) peal.Alwar

Total 669.74 lacs (746.56 lacs)

Note:- Figures in brackets relates to the previous year

(c) According to the information and explanations given to us and on the basis of our examination of the books of account, the amount of Rs. 11.64 lacs, which was required to be transferred to investor education and protection fund has not been transferred to such fund within time in accordance with the relevant provisions of the Companies Act, 1956 (1 of 1956) and rules made there under.

viii. The Company has accumulated losses of Rs. 1,346.61 Lacs at the end of the financial year (Previous Year Rs. 1,240.27 Lacs). The Company has incurred cash loss amounting to Rs. 261.02 lacs during the year covered by the audit (Previous Year Rs. 232.46).

ix. Based on our audit procedures and according to the information and explanations given by the management, we are of the opinion that, the Company has not defaulted in repayment of dues to financial institutions and banks.

x. According to the information and explanations given to us, the Company has not given any guarantee for loan taken by others from a bank or financial institution.

xi. Based on our audit procedures and on the information given by the management, we report that term loans have been utilized for the purpose, for which they have been raised.

xii 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 Gupta Vigg& Co. Chartered Accountants Firm's Registration No.: 001393N

CA. Deepak Pokhriyal Place: New Delhi Partner Date: 30.05.2015 Membership number: 524778


Mar 31, 2014

We have audited the accompanying financial statements of Lords Chloro Alkali 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 then ended, and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial statements

The 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 211of the Companies Act,1956 ("the Act") read with the General Circular 15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor''s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material 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, but not for the purpose of expressing an opinion on the effectiveness of the entity''s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

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

Basis of Qualified opinion

We draw attention to:

a) Note no. B. 27 to the financial statements, which describes that balances of current assets, sundry debtors, loans and advances and current liabilities including sundry creditors are subject to confirmation and adjustments necessary upon reconciliation thereof. The effect of the adjustment arising from the reconciliation/confirmation that may arise is not ascertainable.

b) Note no. B.30 to the financial statements, which describes that company has not transferred an amount of Rs. 11.64 lakhs (previous year Rs. 11.64 Lakhs) to the "Investor Education and Protection Fund", as required. This is a contravention of the provisions of the section 205C of the Companies Act,1956.

Qualified opinion

Subject to our comments in the para above, 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 Legaland 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;

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

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

(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 Ac*,1956.

The Annexure referred to in paragraph 1 of our report of even date to the members of Lords Chloro Alkali Limited ("the Company") on the accounts of the company for the year ended 31st March, 2014.

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 maintained reasonable records showing full particulars including quantitative details and situation of its fixed assets.

(b) As explained to us, fixed assets have been physically verified by the management as reasonable interval. No material discrepancies were noticed on such verification

(c) In our opinion and according to the information and explanations given to us, the company has not disposed off a substantial part of its fixed assets during the year and therefore, do 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) In our opinion and on the basis of our examination of the records, the Company is generally maintaining proper records of its inventories. No material discrepancy was noticed on physical verification of stocks by the management as compared to book records.

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 not granted any loans, secured or unsecured, to companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956. Consequently, the provisions of clauses (iii) (b),

(iii) (c) and (iii) (d) of the order are not applicable to the Company.

(e) According to the information and explanations given to us and on the basis of our examination of the books of account, the Company during the year has taken loans from their directors. The maximum amount involved during the year and the year end balance of such loan is Rs. 1,676 lacs (Previous Year Rs. 360 lacs) and Rs. 1,676 lacs (Previous Year Rs. 195 lacs) respectively. The total number of parties involved is four (Previous Year Two).

(f) According to the information and explanations given to us and on the basis of our examination of the books of account, the above loan is interest free and in our opinion, other terms and conditions on which the loans have been taken from Companies, Firms or Other parties listed in the register maintained under section 301 of the Companies Act, 1956 are not, prima facie, prejudicial to the interest of the Company.

(g) In respect of aforesaid loans, the Company is regular in repaying the principal as and where applicable.

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 current year, there is no sale of goods made by the company. 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 and explanations 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) Based on our audit procedure and according to information and explanation provided to us by the management, we are of the opinion that the transaction made in pursuance of contracts arrangements entered in the registered maintained under section 301 in respect of any party during the year have been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

6. According to information and explanation given to us by the management, the Company has not accepted any deposits from the public. Therefore, the provisions of Clause (vi) of paragraph 4 of the Order are not applicable to the Company.

7. In our opinion and according to information & explanations given by the management, the Company has an adequate internal audit system commensurate with its size and the nature of its business.

8. We have broadly reviewed the books of accounts relating to material, labour and other items of cost maintained by the company pursuant to rules made by the Central Government for the maintenance of cost records under section 209(1)(d) of The Companies Act, 1956 and we are of the opinion that prima facie the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of the records with a view to determine whether they are accurate or complete.

9. (a) According to the information and explanations given to us and on the basis of our examination of the records of the company, undisputed statutory dues including Provident Fund, Employees'' State Insurance, Income-tax, Custom Duty, Excise Duty, Cess to the extent applicable and any other statutory dues have generally been regularly deposited with the appropriate authorities. According to the information and explanations given to us there were no outstanding statutory dues as on 31s* of March, 2014 for a period of more than six months from the date they became payable except following:

(b) According to the information and explanations given to us, there is no amounts payable in respect of sales tax, income tax, custom duty, wealth tax, service tax, excise duty and cess which have not been deposited on account of any disputes except below:-

S. Name of Nature of Year Amount (Rs.) Pending at No. the Statue Dues Assessing Authority

1. Central Excise Duty 1995-99 141.58 lacs Commissioner Excise (141.58 lacs) (Appeals) Act,1944 Jaipur/ CESTAT New Delhi

2. Central Excise Duty 1996-97 145.62 lacs CESTAT, Excise (145.62 lacs) New Delhi Act,1944

3. Central Excise Duty 1996-99 110.72 lacs Hon''ble Excise (110.72 lacs) High Court, Act,1944 Rajasthan

4. Central Excise Duty 2003-04 12.63 lacs Hon''ble Excise (12.63 lacs) High Court, Act,1944 Rajasthan

5. Central Excise Duty 2011-12 1.53 lacs Additional Excise (1.53 lacs) Commissioner, Act,1944 Jaipur

6. Rajasthan Electricity 2004-06 20.03 lacs Dy. Sales Tax Duty (20.03 lacs) Commissioner- Act,1994 Commercial Taxes (Appeals)

7. Rajasthan Entry Tax 2003-11 27.28 lacs Dy. Sales Tax (27.28 lacs) Commissioner- Act,1994 Commercial Taxes (Appeals)

8. Income Tax Income 1996-97 287.17 lacs Commissioner Act,1961 Tax (287.17 lacs) Appeal, Alwar

Total 746.56 lacs (746.56 lacs)

Note:- Figures in brackets relates to the previous year

10. The Company has accumulated losses of Rs. 1,240.27 Lacs at the end of the financial year (Previous Year Rs. 817.85 Lacs). The Company has incurred cash loss amounting to Rs. 232.46 lacs during the year covered by the audit (Previous Year Nil).

11. Based on our audit procedures and on the information and explanations given by the management, we are of the opinion that, the Company has not defaulted in repayment of dues to a financial institution, bank or debenture holders.

12. According to the information and explanations given to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13. The Company is not a chit fund or a nidhi /mutual benefit fund /society. Therefore, the provision of this clause of the Companies (Auditor''s Report) Order, 2003 (as amended) is not applicable to the Company.

14. According to information and explanations given to us, the Company is not dealing in trading of Shares, Mutual funds & other Investments.

15. According to the information and explanations given to us, the Company has not given any guarantees for loan taken by others from a bank or financial institution.

16. Based on our audit procedures and on the information given by the management, we report that term loans have been utilized for the purpose, they have been raised.

17. Based on the information and explanations given to us and on an overall examination of the Balance Sheet of the Company as at 31st March, 2014, we report that no funds raised on short-term basis have been used for long-term investment by the Company.

18. Based on the audit procedures performed and the information and explanations given to us by the management, we report that the Company has not made any preferential allotment of shares during the year.

19. The Company did not have any outstanding debentures during the year.

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 Gupta Vigg & Co. Chartered Accountants Firm Registration No.001393N

Place: New Delhi CA Deepak Pokhriyal Date : 30th May, 2014 Partner Membership No. : 524778


Mar 31, 2013

Report on the Financial statements

We have audited the accompanying fnancial statements of Lords Chloro Alkali Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2013, the Statement of Proft and Loss and Cash Flow Statement for the year then ended, and a summary of signifcant accounting policies and other explanatory information.

management''s responsibility for the Financial statements

Management is responsible for the preparation of these fnancial statements that give a true and fair view of the fnancial position, fnancial performance and cash fows of the Company in accordance with the Accounting 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 fnancial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditors'' responsibility

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

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the fnancial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the fnancial 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 fnancial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the fnancial statements.

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

opinion

a) Note no. B.27to the fnancial statements, which describes that balances of current assets, sundry debtors, loans and advances and current liabilities including sundry creditors are subject to confrmation and adjustments necessary upon reconciliation thereof The effect of the adjustment arising from the reconciliation/confrmation that may arise is not ascertainable.

b) Note no. B.30 to the fnancial statements, which describes that Company has not transferred an amount of Rs. 11.64 Lakhs (previous year Rs. 11.64 Lakhs) to the "Investor Education and Protection Fund", as required. This is a contravention of the provisions of the section 205C of the Companies Act, 1956.

Subject to our comments in opinion para above the effect of which is indeterminable, in our opinion and to the best of our information and according to the explanations given to us, the fnancial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

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

b) In the case of the Statement of Proft 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 fows 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 specifed in paragraphs 4 and 5 of the Order.

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

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

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

c) The Balance Sheet, Statement of Proft 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 Balance Sheet, Statement of Proft and Loss and the 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 disqualifed 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 notifcation 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. the Annexure referred to in paragraph 1 of the our report of even date to the members of Lords Chloro Alkali 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 maintained reasonable records showing full particulars including quantitative details and situation of its fxed assets.

(b) As explained to us, fxed assets have been physically verifed by the management at reasonable intervals. No material discrepancies were noticed on such verifcation.

(c) In our opinion and according to the information and explanations given to us, the Company has not disposed off a substantial part of its fxed asset during the year and therefore does not affect the going concern assumption.

2. (a) The inventories have been physically verifed during the year by the management. In our opinion, the frequency of verifcation is reasonable.

(b) In our opinion and according to the information and explanations given to us, the procedures of physical verifcation 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 inventories. As explained to us, there were no material discrepancies noticed on physical verifcation of inventories as compared to the book records.

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 not granted any loans, secured or unsecured, to companies, frms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956. Consequently, the provisions of clauses iii (b), iii(c) and iii (d) of paragraph 4 of the order are not applicable to the Company.

(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 taken loans from companies, frms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956. The maximum amount involved during the year and the year end balance of such loan is Rs. 360 lakhs (Previous Year Rs. 300 lakhs) and Rs. 195 lakhs (Previous Year Rs. 300 lakhs) respectively. The total number of parties involved is two (Previous Year one).

(c) According to the information and explanations given to us and on the basis of our examination of the books of account, the above loan is interest free and in our opinion, other terms and conditions on which the loans have been taken from Companies, Firms or Other parties listed in the register maintained under section 301 of the Companies Act, 1956 are not, prima facie, prejudicial to the interest of the Company.

(d) In respect of aforesaid loans, the Company is regular in repaying the principal as and where applicable.

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 inventory, fxed assets and for sale of goods and services. 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 and explanations provided by the management, the transactions made in pursuance of contracts or arrangements that need to be entered in the register maintained under Section 301 of the Companies Act, 1956 have been so entered.

(b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts/arrangements entered in the Register maintained under section 301 of the Companies Act, 1956, during the year have been made at prices which appear reasonable as per information available with the Company.

6. According to information and explanation given to us by the management, the Company has not accepted any deposits from the public covered under section 58A and 58AA of the Companies Act, 1956 and the companies (Acceptance of Deposit) Rules 1975.

7. As per information & explanations given by the management, the Company has an internal audit system commensurate with its size and the nature of its business.

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

9.According to the records of the Company, undisputed statutory dues including Provident 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 have generally been regularly deposited with the appropriate authorities, though there has been delay in some cases in deducting and depositing of Income Tax, Provident Fund and Service Tax. According to the information and explanations given to us there were no outstanding statutory dues as on 31st of March, 2013 for a period of more than six months from the date they became payable, except following.

10. The Company has accumulated losses of Rs. 817.85 Lacs at the end of the fnancial year (Previous Year Rs. 494.97 Lacs). The Company has not incurred any cash loss during the fnancial year covered by the audit (Previous Year cash loss amounting to Rs. 790.33 Lacs).

11. Based on our audit procedures and on the information and explanations given by the management, we are of the opinion that the Company has not defaulted in repayment of dues to fnancial institutions and banks.

12. According to the information and explanations given to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13. The Company is not a chit fund or a nidhi /mutual beneft fund/society. Therefore, the provision of this clause of the Companies (Auditor''s Report) Order, 2003 (as amended) is not applicable to the Company.

14. The Company is not dealing or trading in shares, securities, debentures and other investment hence this clause is not applicable.

15. According to the information and explanations given to us, the Company has not given any guarantees for loan taken by others from a bank or fnancial institution.

16. Based on our audit procedures and on the information given by the management, we report that the Company has not raised any term loans during the year.

17. Based on the information and explanations given to us and on an overall examination of the Balance Sheet of the Company as at 31st March, 2013, we report that no funds raised on short-term basis have been used for long-term investment by the Company.

18. Based on the audit procedures performed and the information and explanations given to us by the management, we report that 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 during the year.

19. During the period covered by our audit report, the Company has not issued any debentures.

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 Gupta Vigg & Co.

Chartered Accountants

Firm Registration No. 001393N

CA. deepak Pokhriyal

Partner

Membership No. 524778

Place: New Delhi

Date: 30.09.2013


Mar 31, 2012

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

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

3. As required by the Companies (Auditors' Report) Order, 2003 [as amended by the Companies (Auditors' Report) Amendment Order, 2004], 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 & 5 of the said Order.

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

i) Balances of current assets, sundry debtors, loans and advances and current liabilities including sundry creditors are subject to confirmation and adjustments necessary upon reconciliation thereof. The effect of the adjustment arising from the reconciliation/confirmation that may arise is not ascertainable.

ii) The company has not transferred an amount of Rs. 11.64 Lakhs (previous year Rs. 11.64 Lakhs) to the "Investor Education and Protection Fund", as required. This is a contravention of the provisions of the section 205C of the Companies Act, 1956 (refer note No. B.31)

5. Subject to our comments in para 4 above the effect of which are indeterminate and further to our comments in the annexure referred, we report that:

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

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

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

iv) In our opinion, the Balance Sheet, Statement of Profit & Loss and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956.

v) On the basis of the written representations received from the Directors, as on 31st March, 2012 and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on 31st March, 2012 from being appointed as a Director in terms of requirement under section 274(1)(g) of the Companies Act, 1956.

vi) In absence of notification by the Central government, the cess payable under section 441A of the Companies Act, 1956 has not been provided in the books of accounts.

vii) In our opinion and to the best of our information and according to the explanations given to us, the said accounts, read together with the Significant Accounting policies and notes appearing thereon as contained in Note No.B.1 to B.41 give the information as 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 31st March, 2012;

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

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

ANNEXURE REFERRED TO IN PARAGRAPH '3' OF THE AUDITORS' REPORT ON THE ACCOUNTS OF LORDS CHLORO ALKALI LIMITED FOR THE YEAR ENDED 31st MARCH, 2012.

i) (a) The Company has maintained reasonable records to show full particulars, including quantitative details and situation of all fixed assets.

(b) As informed to us, fixed Assets have not been physically verified by the management during the year. Hence we are unable to comment on the discrepancies, if any which may arise on such verification.

(c) No substantial part of fixed asset has been disposed off during the year.

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

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

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

iii)(a) During the year, the Company has not granted any secured or unsecured loan to the Companies, Firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956. Hence clause nos. (iii) (b), (iii) (c) and (iii) (d) are not applicable to the company.

(e) The Company has taken unsecured loan from the Companies, Firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956. The maximum amount involved during the year and year end balance of such loan is Rs. 300.00 Lakhs and Rs. 300.00 Lakhs respectively. Number of parties involved is one.

(f) As information provided to us, the above loan is interest free and in our opinion other terms and conditions on which the loans have been taken from Companies, Firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956 are not, prima facie, prejudicial to the interest of the Company.

(g) In respect of aforesaid loans, the company is regular in repaying the principal, as and where applicable.

iv) In our opinion and according to the information and explanation given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard to purchases of inventory, fixed assets and for sale of goods and services. During the course of audit, we have not observed any continuing failure to correct major weakness in internal controls.

v) (a) Based on our audit procedure and according to information and explanation given to us by the management, we are of the opinion that the transactions that need to be entered in the register maintained under section 301 of the Companies Act, 1956 have been so entered.

(b) Based on our audit procedure and according to information and explanation given to us by the management, we are of the opinion that the transaction made in pursuance of contracts and arrangements entered in the register maintained under section 301 in respect of any party during the year have been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

vi) According to the information and explanation given to us, the Company has not accepted any deposits from the public under section 58A and 58AA of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975.

vii) In our opinion and according to the information and explanations given to us, the Company has an adequate internal audit system commensurate with the size and nature of its business.

viii) We have broadly reviewed the books of accounts relating to materials, labour and other items of cost maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 209(1)(d) of the Companies Act, 1956 and we are of the opinion that prima facie the prescribed accounts and records have been made and maintained. However, we have not carried out detailed examination of the same.

ix) (a) According to the records, undisputed statutory dues including Provident Fund, Investor Education & Protection Fund, Employees State Insurance, Income Tax, Wealth Tax, Sales Tax, Customs Duty, Excise Duty, Education Cess and Service Tax have been deposited with the appropriate authorities, though there has been delay in some cases in deducting and depositing of Income Tax, Provident Fund and Service Tax. According to the information and explanation given to us, there are no undisputed amounts payable in respect of Provident Fund, Investor Education & Protection Fund, Employees State Insurance, Income Tax, Wealth Tax, Sales Tax, Customs Duty, Excise Duty, Education Cess and Service Tax which were outstanding, as at 31st March, 2012 for a period of more than six months, from the date they became payable other than the following:

Sr. No. Nature of Dues Amount due over six months on 31.03.2012 (Rs.)

1. Provident Fund & Employees State Insurance 3.99 Lakhs 2. Income Tax (T.D.S.) 1.33 Lakhs

3. Wealth Tax 6.58 Lakhs

4. Investor Education & Protection Fund 11.64 Lakhs

(b) According to the information and explanations given to us, no dues of Provident Fund, Investor Education & Protection Fund, Employees State Insurance, Income Tax, Wealth Tax, Sales Tax, Customs Duty, Excise Duty, Education Cess and Service Tax which have not been deposited on account of any dispute except the following:

Name of Nature of Amount (Rs.) Period to which Forum where dispute the statute Dues the amount is pending relates

Central Excise duty 157.91 lacs 1995-99 commissioner Excise (Appeals) CESTAT Act,1944

Central Excise duty 145.62 lacs 1996-97 Hon'ble high Court, Excise Rajasthan/ CESTAT Act,1944

Central Excise duty 110.72 lacs 1996-99 Hon'ble high Court, Excise Rajasthan Act,1944

Central Excise duty 12.63 lacs 2003-04 Hon'ble high Court, Excise Rajasthan Act,1944

Central Excise duty 20.53 lacs 2007-10 Joint Commissioner, Excise Jaipur/ asst. Act,1944 Commissioner, alwar

Central Excise duty 8.96 lacs 2010-11 Additional Excise Commissioner Jaipur Act,1944

Central Excise duty 1.53 lacs 2010-12 Additional Excise Commissioner Jaipur Act,1944

Rajasthan Electricity 20.03 lacs 2004-06 Dy. Commissioner- Sales Tax Duty Coomercial Taxes Act, 1994 (Appeals)

Rajasthan Entry Tax 27.38 lacs 2003-11 Dy. Commissioner- Sales Tax Coomercial Taxes Act, 1994 (Appeals)

Income Tax Income Tax 287.17 lacs 1996-97 Commissioner, Appeal Act, 1961 Alwar

x) The Company has accumulated losses of Rs. 494.97 Lakhs and has incurred cash losses of Rs. 790.33 Lakhs during the financial year covered by our audit. The company did not incurred any cash loss in the immediately preceding financial year.

xi) Based on our audit procedures and on the information and explanations given by the management, we are of the opinion that the Company has not defaulted in repayment of dues to any financial institution and 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, during the year under audit.

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

xiv) According to the information and explanations provided to us, during the year the Company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly the provisions of clause 4(xiv) of this order are not applicable to the Company.

xv) According to the information and explanations provided to us , the Company has not given Guarantee for the loan taken by other from bank or financial institution.

xvi) According to information and explanations given to us, the term loans were applied for the purpose for which loans were obtained.

xvii) According to the information and explanation given to us and on an overall examination of the Balance Sheet of the Company, we are of the opinion that fund raised on short term basis have not been used for long-term investment.

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

xix) During the period covered by our audit report, the Company has not issued any debentures.

xx) The Company has not raised any money by way of public issue.

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

For GUPTA VIGG & CO.

Chartered Accountants

(Firm Regn. No. - 001393N)

Place : New Delhi

Date : 14.08.2012 (CA. TEJBIR SINGH)

(Partner)

Membership No. 511171


Mar 31, 2011

1. We have audited the attached balance sheet of Lords Chloro Alkali Limited as at March 31, 2011 and also the profit and loss account and cash flow statement of the Company for the year ended on that date, annexed thereto. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

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

3. As required by the Companies (Auditor's Report) Order, 2003 issued by the Central Government of India in terms of section 227 (4A) of the Companies Act, 1956 and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we annex hereto a statement on the matters specified in paragraphs 4 and 5 of the said Order to the extent they are applicable to the Company.

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

(i) Balances of current assets, sundry debtors, loans and advances and current liabilities including sundry creditors are subject to confirmation and adjustments necessary upon reconciliation thereof. The effect of the adjustment arising from the reconciliation/ confirmation that may arise is not ascertainable.

(ii) The Company has not transferred an amount of Rs. 11.64 Lakhs (previous year Rs. 11.64 Lakhs) to the "Investor Education and Protection Fund", as required. This is a contravention of the provisions of section 205 C of the Companies Act, 1956 (Refer note no. B-5 of schedule 'P).

5. Subject to our comments in (4) above the effects of which are indeterminate and further to our comments in the annexure referred, we report that :

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

(ii) In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of the 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 our 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 section 211(3C) of the Companies Act, 1956.

(v) On the basis of written representations received from the directors as on 31st March, 2011 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March, 2011 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956;

(vi) In the absence of notification by the Central government, the cess payable under section 441A of the Companies act, 1956, has not been provided for in the books of accounts.

(vii) In our opinion and to the best of our information and according to the explanations given to us, they said accounts give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view and 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, 2011;

(b) in the case of the profit and loss account, of the profit of the Company 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.

Re: Lords Chloro Alkali Limited

(Referred to in paragraph 3 of our report of even date)

1. a. The Company has maintained reasonable records showing necessary

particulars including quantitative details and situation of fixed assets.

b. As informed to us, no physical verification of the fixed assets has been done during the year by the management. Hence we are unable to comment on the discrepancies, if any, which may arise on such verification.

c. During the year the Company has not discarded any Plant & Machinery, having material value, discarding of which can have any adverse impact on the performance of the Company. However company has sold its land at Moti-dungri, which was not being used for any production activity.

2. a. As informed to us, the inventory of the Company has been physically

verified by the management during the year. In our opinion, the frequency of verification is reasonable.

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

c. On the basis of our examination of the records of inventory, in our opinion, the Company has maintained proper records of inventory and as explained to us, the discrepancies noticed on physical verification of inventory as compared to book records were not material and have been properly dealt with in the books of account.

3. a. No loan has been given by the company to any entity covered under section 301 of the Act.

b. The company has taken unsecured loans from the entities covered in the register maintained under section 301 of the Act. The maximum amount involved during the year and the yearend balance of such loan are Rs 8.47 cr and Rs 2.00 cr respectively.

c. In our opinion, the terms and conditions of such loans are not prima facie prejudicial to the interest of the company.

d. In respect of the aforesaid loans, the company is regular in repaying the principal and interest as and where applicable.

4. In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard

to purchases of inventories and fixed assets and with regard to the sale of goods. During the course of our audit, we have neither come across nor have been informed of any major weakness in the internal control system.

5. a. In our opinion and according to the information and explanation given to us, the particulars of contracts or arrangements referred to in section 301 of the Companies Act, 1956 have been entered in the register required to be maintained under that section.

b. In our opinion and according to the information and explanation given to us and having regard to the explanation in Para 4 above, the transactions made in pursuance of contracts and arrangements referred to in Para 5 (a) above and exceeding the value of Rs. 5 lacs with any party during the year have been made at prices which are reasonable having regard to the prevailing market prices at that time.

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

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

8. The Central Government of India has prescribed maintenance of cost records under section 209(1)(d) of the Companies Act, 1956, in respect of Caustic Soda manufactured by the Company. We have broadly reviewed the accounts and records of the Company in this connection and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the same.

9. a. According to the records of the Company examined by us and the

information and explanations given to us, in our opinion, the Company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident fund, income tax, sales tax, wealth tax, service tax, custom duty, excise duty, related education cess and other statutory dues applicable to it except for dues to Investor Education and Protection Fund where there have been certain delays.

b. According to the records of the Company examined by us and the information and explanations given to us, no undisputed amounts payable in respect of provident fund, income tax, wealth tax, service tax, sales tax, customs duty and excise duty were outstanding, as at 31st March, 2011 for a period of more than six months from the date they became payable other than the following:

Amount Due Over six S. No. Nature of Dues months (as on 31st Remarks March, 2011) (Rs.)

Provident Fund & Em- 3.99 lacs i. The old PF dues are yet to be ployees State Insur- deposited related to previous years.

2 Income Tax (T.D.S) 1.33 lacs Old TDS ( TPT.) balance

3 Wealth Tax 6.58 lacs Provided for in the books.

4 Investor Education & 11.64 lacs Refer Note no. B.5 - Protection Fund Schedule

c. According to the records of the Company examined by us and the information and explanations given to us, there are no dues of sales tax, income tax, customs duty, wealth tax, service tax, excise duty and cess which have not been deposited on account of any dispute, other than the following:

Name of Nature of Dues Amount (Rs.) Period to which Forum where dis- the statute the amount pute is pending relates

Central Excise duty 145.62 lacs 1996-97 Hon'ble High Excise Court, Rajasthan Act,1944 /CESTAT

Central Excise duty 110.72 lacs 1996-1999 Hon'ble High Excise Court, Rajasthan Act,1944

Central Excise duty 12.63 lacs 2003-2004 Hon'ble High Excise Court, Rajasthan Act,1944

Central Excise duty 157.91 lacs 1995-1999 Commissioner (Ap- Excise peals ) / CESTAT Act,1944

Central Excise duty 8.96 lac 2010-2011 Additional Com- Excise missioner, Jaipur Act,1944

Central Excise duty 20.53 lacs 2007-2010 Joint Commiss Excise -ioner Jaipur/ Asst.Act,1944 Commissioner Alwar

Rajasthan Electricity Duty 20.03 lacs 2004-2006 Dy. Commissioner Sales Tax -Commercial Taxes Act, 1994 (Appeals)

Rajasthan Entry Tax 27.38 lacs 2003-2011 Dy. Commissioner Sales Tax -Commercial Taxes Act, 1994 (Appeals)

Income Income Tax 287.17 lacs 1996-97 Commissioner, Tax Act, Appeal Alwar 1961

10. During the year the company has started trading in commodities. The entries in this regard were found to be in order and proper contact notes/ ledger accounts from the respective brokers were also presented to us however the Sauda register is not being maintained up-to-date.

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

12. According to the records of the Company examined by us and the information and explanations given to us, no term loans have been raised during the year by the Company.

13. According to the information and explanations given to us and on the basis of an overall examination of the balance sheet of the Company, in our opinion, generally, there are no funds raised during the year by the Company on short-term basis, which have been used for long-term investment.

14. During the year, 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.

15. During the period covered by our audit report, the Company has not issued any debentures.

16. During the period covered by our audit report, the Company has not raised any money by public issue.

17. During the course of our examination of the books and records of the Company carried out in accordance with the generally accepted auditing practices in India, we have neither come across any instance of fraud on or by the Company, noticed or reported during the year, nor have we been informed of such case by the management.

The other provisions of the Order do not appear to be applicable for the year under report.

For ALAG KUMAR & ASSOCIATES

Chartered Accountants

(Firm Regn. No. - FRN 015004N)

Place : New Delhi

Date : 30.04.2011 (GURBIR SINGH ALAG)

(Partner)

Membership No. 84075