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Auditor Report of LWS Knitwear Ltd.

Mar 31, 2014

We have audited the accompanying financial statements of M/s. LWS KNITWEAR LIMITED, G.T. ROAD (WEST), LUDHIANA which comprise the Balance Sheet as at 31.03.2014, the statement of Profit & Loss Account & Cash Flow Statement for the year ended on that date and a summary of significant accounting policies and other explanatory statements.

MANAGEMENT''S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the company in accordance with the Accounting Standards referred to in sub section (3C) of section 211 of the Companies Act. 1956 read with the General Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

AUDITOR''S RESPONSIBILITY

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

OPINION

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

(i) in the case of the balance sheet, of the state of affairs of the Company as at 31 March 2014;

(ii) in the case of the statement of profit and loss, of the profit for the year ended on that date; and

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

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. As required by the Companies (Auditor''s Report) Order, 2003 ("the Order"), as amended, 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 sub-section (3C) of section 211 of the Companies Act, 1956 read with the General Circular 15/2013 dated 13 September 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 31 March 2014, and taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2014, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

ANNEXURE TO THE INDEPENDENT AUDIT REPORT FOR THE YEAR ENDING 31.03.2014.

Referred to in Paragraph 1 under the heading of "report on other legal and regulatory requirements" of our report of even date

(1) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets, which are in process of up- dation/completion.

(b) As explained to us, the fixed assets have been physically verified by the management according to the phased programme. Pursuant to programme, physical verification of the fixed assets was carried out during the period by the management and discrepancies noticed were not material.

(c) No Substantial part of the fixed assets has been disposed during the year.

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

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

(c) The company has maintained stock records of inventories and discrepancies noticed on physical verification were not material.

(3) (a) The Company has not taken any loans (secured or unsecured) from Shareholders/other parties covered under Section 301 of the Companies Act, 1956. The company has not granted loans to companies, firms and other parties covered under section 301 of the Act.

(b) N.A.

(c) N.A.

(d) There is no overdue amount in respect of loans taken by the company.

(4) In our opinion and according to information provided to us, there are adequate internal control procedures commensurate with the size of the company and nature of the business for the purchase of the inventory and fixed assets of the company and for the sale of the goods. During the course of our audit, we have not observed any major weaknesses in internal controls.

(5) (a) According to the information and explanation given to us and audit in accordance with generally accepted auditing practices, in our opinion, the transactions that need to be entered into the register in pursuance of section 301 of the Act have been so entered.

(b) In our opinion and according to information and explanations given to us, the transactions with parties as stated in para 5(a) above, with whom transactions exceeding Rs.5,00,000/- have been entered into during the financial year are at prices which are reasonable having regard to the prevailing market prices at the relevant time.

(6) As per the information and documents provided to us, during the year the company has not accepted any deposits from the public as defined under section 58A and 58AA of the Companies Act 1956, and the rules framed there under.

(7) In our opinion the company has an internal audit system commensurate with the size and nature of the business.

(8) During the year under review, Maintenance of Cost records under section 209(1) of the Companies Act, 1956, is not applicable to company.

(9) (a) According to the records of the company, the company is regular in depositing with appropriate authorities undisputed statutory dues including P.F., ESI, Income Tax, Sale Tax, Wealth Tax, Custom Duty, Excise Duty, Cess and other statutory dues which are applicable to it. According to the information and explanation given to us, disputed amount payable in respect of the statutory dues which are remained outstanding as at 31.03.2014 for a period more than 6 months is Nil.

(b) According to the records and information and explanations given to us, there are dues of Rs. Nil in respect of P.F., ESI, Income Tax, Sale Tax, Wealth Tax, Custom Duty, Excise Duty, Cess and other statutory dues that have not been deposited on account of dispute.

(10) The company has neither any accumulated losses nor has incurred any cash losses in the current financial year.

(11) Based on our audit procedures and on the information and explanations provided by the management, the company has not defaulted in repayment of dues to bank. There were no dues to debenture holders during the year.

(12) According to the information and explanations provided to us and based on the documents and records produced before 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) Clause (xiii) is not applicable to the company as the company is not a Chit fund company or nidhi/mutual benefit fund/society.

(14) In our opinion and according to information and explanations given to us, the company is not dealing in shares, securities, debentures and other investments and therefore clause (xiv) of the Order is not applicable to the company.

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

(16) According to information and explanations given to us, the no term loan has been availed during the year under review.

(17) According to information and explanations given to us, and on overall examination of the Balance Sheet of the company, we are of the opinion that the company has not used funds raised on short term basis for long term investments and vice versa.

(18) The company has not made any preferential allotment of shares to parties and companies covered in the Register maintained under section 301 during the year.

(19) No debentures have been issued / outstanding during the year hence the provision of clause (xix) of the said order is not applicable.

(20) The company has not raised money by public issues during the year.

(21) Based on the audited procedures performed and information and explanation 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 RAJESH K. SHARMA & ASSOCIATES CHARTERED ACCOUNTANTS

Date : 30.05.2014 Place : Ludhiana Sd/- (RAJESH SHARMA) PARTNER


Mar 31, 2012

We have audited the attached Balance Sheet of M/s. LWS KNITWEAR LTD., LUDHIANA and also Profit & Loss Account & Cash Flow Statement for the year ended 31.03.2012 annexed thereto. These financial statements are responsibility of the Company's Management. Our responsibility is to express an opinion on these financial statements based on our audit.

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

1. As required by the Manufacturing and other Companies (Auditors Report) Order 2005, issued by the Central Govt, of India in terms of Section 227(4A) of the Companies Act, 1956, we annexe a statement on the relevant matters specified in paragraph 4 & 5 of the said order.

2. Further to our comments in annexure referred to above, we report that:

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

(b) 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 such books.

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

(d) In our opinion, Balance Sheet, Profit & 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.

(e) The Directors are not disqualified as on 31.03.2012 for being appointed as director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act,

(f) In our opinion and to the best of our information and according to the explanations given to us and subject to the notes on accounts given at, Annexure XVII, the said accounts read together with the notes thereon give the information required by the Companies Act,1956 in the manner so required and give a true and fair view:

(i) In the case of the Balance Sheet of the State if affairs of the company as at 31.03.2012 and; (ii) In the case of Profit & Loss Account of the profits for the year ended on that date and; (iii) In the case of the Cash Flow Statement, of the Cash Flows for the period ended on that date.

ANNEXURE TO AUDIT REPORT FOR THE YEAR ENDING 31.03.2012.

As required by the Manufacturing and Other Companies (Auditor's Report) order, 2004, issued by the Company Law Board in terms of Section 227(4A) of the Companies Act, 1956, we further report that:

(1) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets, which are in process of up-dation/completion.

(b) As explained to us, the fixed assets have been physically verified by the management according to the phased programme. Pursuant to programme, physical verification of the fixed assets was carried out during the period by the management and discrepancies noticed were not material.

(c) No Substantial part of the fixed assets has been disposed during the year.

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

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

(c) The company has maintained stock records of inventories and discrepancies noticed on physical verification were not material.

(3) (a) The Company has not taken any loans (secured or unsecured) from Shareholders/other parties covered

under Section 301 of the Companies Act, 1956. However the company has granted loans to companies, firms and other parties covered under section 301 of the Act.

(b) N.A.

(c) N.A.

(d) There is no overdue amount in respect of loans taken by the company.

(4) In our opinion and according to information provided to us, there are adequate internal control procedures commensurate with the size of the company and nature of the business for the purchase of the inventory and fixed assets of the company and for the sale of the goods. During the course of our audit, we have not observed any major weaknesses in internal controls.

(5) (a) According to the information and explanation given to us and audit in accordance with generally accepted

auditing practices, in our opinion, the transactions that need to be entered into the register in pursuance of section 301 of the Act have been so entered.

(b) In our opinion and according to information and explanations given to us, the transactions with parties as stated in para 5(a) above, with whom transactions exceeding Rs. 5,00,000/- have been entered into during the financial year are at prices which are reasonable having regard to the prevailing market prices at the relevant time.

(6) As per the information and documents provided to us, during the year the company has not accepted any deposits from the public as defined under section 58A and 58AA of the Companies Act 1956, and the rules framed there under.

(7) In our opinion the company has an internal audit system commensurate with the size and nature of the business.

(8) During the year under review, Maintenance of Cost records under section 209(1) of the Companies Act, 1956, is not applicable to company.

(9) (a) According to the records of the company, the company is regular in depositing with appropriate authorities undisputed statutory dues including P.F., ESI, Income Tax, Sale Tax, Wealth Tax, Custom Duty, Excise Duty, Cess and other statutory dues which are applicable to it. According to the information and explanation given to us, disputed amount payable in respect of the statutory dues which are remained outstanding as at 31.03.2012 for a period more than 6 months is Nil.

(b) According to the records and information and explanations given to us, there are dues of Rs. Nil in respect of P.F., ESI, Income Tax, Sale Tax, Wealth Tax, Custom Duty, Excise Duty, Cess and other statutory dues that have not been deposited on account of dispute.

(10) The company has neither any accumulated losses nor has incurred any cash losses in the current financial year.

(11) Based on our audit procedures and on the information and explanations provided by the management, the company has not defaulted in repayment of dues to bank. There were no dues to debenture holders during the year.

(12) According to the information and explanations provided to us and based on the documents and records produced before 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) Clause (xiii) is not applicable to the company as the company is not a Chit fund company or nidhi/mutual benefit fund/society.

(14) In our opinion and according to information and explanations given to us, the company is not dealing in shares, securities, debentures and other investments and therefore clause (xiv) of the Order is not applicable to the company.

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

(16) According to information and explanations given to us, the no term loan has been availed during the year under review.

(17) According to information and explanations given to us, and on overall examination of the Balance Sheet of the company, we are of the opinion that the company has not used funds raised on short term basis for long term investments and vice versa.

(18) The company has not made any preferential allotment of shares to parties and companies covered in the Register maintained under section 301 during the year.

(19) No debentures have been issued / outstanding during the year hence the provision of clause (xix) of the said order is not applicable.

(20) The company has not raised money by public issues during the year.

(21) Based on the audited procedures performed and information and explanation 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 RAJESH K. SHARMA & ASSOCIATES

CHARTERED ACCOUNTANTS

Sd/

Place: LUDHIANA (RAJESH SHARMA)

Date : 25-08-2012 Partner

M.No. 092948


Mar 31, 2010

We have audited the attached Balance Sheet of M/s. LWS KNITWEAR LTD., LUDHIANA and also Profit & Loss Account & Cash Flow Statement for the year ended 31.03.2010 annexed thereto. These financial statements are responsibility of the Companys Management. Our responsibility is to express an opinion on these financial statements based on our audit.

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

1. As required by the Manufacturing and other Companies (Auditors Report) Order 2005, issued by the Central Govt, of India in terms of Section 227(4A) of the Companies Act, 1956, we annexe a statement on the relevant matters specified in paragraph 4 & 5 of the said order.

2. Further to our comments in annexure referred to above, we report that:

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

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

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

(d) In our opinion, Balance Sheet, Profit & 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.

(e) The Directors are not disqualified as on 31.03.2010 for being appointed as director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act,

(f) In our opinion and to the best of our information and according to the explanations given to us and subject to the notes on accounts given at, Annexure XVI, the said accounts read together with the notes thereon give the

information required by the Companies Act, 1956 in the manner so required and give a true and fair view:-

(i) In the case of the Balance Sheet of the State if affairs of the company as at 31.03.2010 and;

(ii) In the case of Profit & Loss Account of the profits for the year ended on that date and;

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

ANNEXURE TO AUDIT REPORT FOR THE YEAR ENDING 31.03.2010. As required by the Manufacturing and Other Companies (Auditors Report) order,2004, issued by the Company Law Board in terms of Section 227(4A) of the Companies Act, 1956, we further report that:-

(1) (a) The Company has maintained proper records showing full particulars,

including quantitative details and situation of fixed assets, which are in process of up-dation/completion.

(b) As explained to us, the fixed assets have been physically verified by the management according to the phased programme. Pursuant to programme, physical verification of the fixed assets was carried out during the period by the management and discrepancies noticed were not material.

(c) No Substantial part of the fixed assets has been disposed during the year.

(2) (a) The inventories have been physically verified by the management during

the year at reasonable intervals.

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

(c) The company has not maintained stock records of inventories hence we are unable to give our opinion on this issue.

(3) (a) The Company has taken loans (secured or unsecured) aggregating to Rs. 259.06 lacs from Shareholders/other parties covered under Section 301 of the Companies Act, 1956. The company has also granted loans to companies, firms and other parties covered under section 301 of the Act.

(b) In our opinion and according to the information and explanations given to us, the above said loans are taken free of interest; the principal amount is repayable on demand.

(c) In respect of loan taken from shareholders/directors, the principal amount is repayable on demand.

(d) There is no overdue amount in respect of loans taken by the company.

(4) In our opinion and according to information provided to us, there are adequate internal control procedures commensurate with the size of the company and nature of the business for the purchase of the inventory and fixed assets of the company and for the sale of the goods. During the course of our audit, we have not observed any major weaknesses in internal controls.

(5) (a) According to the information and explanation given to us and audit in accordance with generally accepted auditing practices, in our opinion, the transactions that need to be entered into the register in pursuance of section 301 of the Act have been so entered.

(b) In our opinion and according to information and explanations given to us, the transactions with parties as stated in para 5(a) above, with whom transactions exceeding Rs.5,00,000/- have been entered into during the financial year are at prices which are reasonable having regard to the prevailing market prices at the relevant time.

(6) As per the information and documents provided to us, during the year the company has accepted deposits from the public as defined under section 58A and 58AA of the Companies Act 1956, and the rules framed there under.

(7) In our opinion the company has an internal audit system commensurate with the size and nature of the business.

(8) During the year under review, Maintenance of Cost records under section 209(1) of the Companies Act, 1956, is not applicable to company.

(9) (a) According to the records of the company, the company is regular in depositing with appropriate authorities undisputed statutory dues including P.F., ESI, Income Tax, Sale Tax, Wealth Tax, Custom Duty, Excise Duty, Cess and other statutory dues which are applicable to it. According to the information and explanation given to us, disputed amount payable in respect of the statutory dues which are remained outstanding as at 31.03.2010 for a period more than 6 months is Nil. (b) According to the records and information and explanations given to us, there are dues of Rs. Nil in respect of P.F., ESI, Income Tax, Sale Tax, Wealth Tax, Custom Duty, Excise Duty, Cess and other statutory dues that have not been deposited on account of dispute.

(10) The company has accumulated profits of Rs. 434.77 Lacs at the year ended 31.03.2010 and it has not incurred cash losses during the financial year under review.

(11) Based on our audit procedures and on the information and explanations provided by the management, the company has not defaulted in repayment of dues to bank. There were no dues to debenture holders during the year, however there was default in the repayment of the dues of financial institutions.

(12) According to the information and explanations provided to us and based on the documents and records produced before 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) Clause (xiii) is not applicable to the company as the company is not a Chit fund company or nidhi/mutual benefit fund/society.

(14) In our opinion and according to information and explanations given to us, the company is not dealing in shares, securities, debentures and other investments and therefore clause (xiv) of the Order is not applicable to the company.

(15) According to information and explanations given to us, the company has given guarantee for loans taken by others from the bank or financial institutions.

(16) According to information and explanations given to us, the no term loan has been availed during the year under review.

(17) According to information and explanations given to us, and on overall examination of the Balance Sheet of the company, we are of the opinion that the company has not used funds raised on short term basis for long term investments and vice versa.

(18) The company has not made any preferential allotment of shares to parties and companies covered in the Register maintained under section 301 during the year.

(19) No debentures have been issued / outstanding during the year hence the provision of clause (xix) of the said order is not applicable.

(20) The company has not raised money by public issues during the year.

(21) Based on the audited procedures performed and information and explanation 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 Rajesh K. Sharma & Associates.

Chartered Accountants (Rajesh Sharma)

Date : 07.06.2010 Partner

Place : Ludhiana




Mar 31, 2009

We have audited the attached Balance Sheet of M/s. LWS KNITWEAR LTD., LUDHIANA and also Profit & Loss Account & Cash Flow Statement for the year ended 31.03.2009 annexed thereto. These financial statements are responsibility .of the Companys Management. Our responsibility is to express an opinion on these financial statements based on our audit.

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

1. As required by the Manufacturing and other Companies (Auditors Report) Order 2005, issued by the Central Govt, of India in terms of Section 227(4A) of the Companies Act, 1956, we annexe a statement on the relevant matters specified in paragraph4&5 of the said order.

2. Further to our comments in annexure referred to above, we report that:

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

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

(c) The Balance Sheet, Profit & Loss Account and Cash Flov» Statement dealt with referred to by this report are in agreement with the books of account of the

company.

(d) In our opinion, Balance Sheet, Profit & 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.

(e) The Directors are disqualified as on 31.03.2009 for being appointed as director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act,

(f) In our opinion and to the best of our information and according to the explanations given to us and subject to the notes on accounts given at, Annexure XVI, the said accounts read together with the notes thereon give thf

information required by the Companies Act,1956 in the manner so required and give a true and fair view:-

(i) In the case of the Balance Sheet of the State if affairs of the company as at 31.03.2009 and; (ii) In the case of Profit & Loss Account of the profits for the year, ended on that date and; (iii) In the case of the Cash Flow Statement, of the Cash Flews for the period ended on that date.

ANNEXURE TO AUDIT REPORT FOR THE YEAR ENDING 31.03.2009.

As required by the Manufacturing and Other Companies (Auditors Report) order,2004, issued by the Company Law Board in terms of Section 227(4A) of the Companies Act, 1956, we further report that:-

(1) (a) The Company has maintained proper records showing full particulars,

including quantitative details and situation of fixed assets, which are ii* process of up-dation/completion.

(b) As explained to us, the fixed assets have been physically verified by the management according to the phased programme. Pursuant to programme, physical verification of the fixed assets was carried out during the period by the management and discrepancies noticed were not material.

(c) No Substantial part of the fixed assets has been disposed during the year.

(2) (a) The inventories have been physically verified by the management during

the year at reasonable intervals.

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

(c) The company has not maintained stock records of inventories hence we are unable to give our opinion on this issue.

(3) (a) The Company has taken loans (secured or unsecured) aggregating to Rs.

184.30 lacs from Shareholders/other parties covered under Section 301 of the Companies Act, 1956. The company has also granted loans to companies, firms and other parties covered under section 301 of the Act.

(b) In our opinion and according to ilic information and explanations given to us, the above said loans are taken free of interest; the principal amount is repayable on demand.

(c) In respect of loan taken from shareholders/directors, the principal amount is repayable on demand.

(d) There is no overdue amount in respect of loans taken by the company.

(4) In our opinion and according to information provided to us, there are adequate internal control procedures commensurate with the size of the company and nature of the business for the purchase of the inventory and fixed assets of the company and for the sale of the goods. During the course of our audit, we have not observed any major weaknesses in internal controls.

(5) (a) According to the information and (xplanation given to us a id audit in

accordance with generally accepted mditing practices, in our opinion, the transactions that need to be entered into the register in pursuance of

section 301 of the Act have been so entered.

(b) In our opinion and according to information and explanations given to us, the transactions with parties as stated in para 5(a) above, with whom transactions exceeding Rs.5,00,000/- have been entered into during the financial year are at prices which are reasonable having regard to the prevailing market prices at the relevant time.

(6) As per the information ard documents provided to us, during the year the company has not accepted any deposits from the public as defined under section 58A and 58AA of the Companies Act 1956, and the rules framed there under.

(7) In our opinion the company has an internal audit system commensurate with the size and nature of the business.

(8) During the year under review, Maintenance of Cost records under section 209(1) of the Companies Act, 1956, is not applicable to company.

(9) (a) According to the records of the company, the company is regular in

depositing with appropriate authorities undisputed statutory dues including P.F., ESI, Income Tax, Sale Tax, Wealth Tax, Custom Duty, Excise Duty, Cess and other statutory dues which are applicable to it. According to the information and explanation given to us, disputed amount payable in respect of the statutory dues which are remained outstanding as at 31.03.2009 for a period more than 6 months is Nil. (b) According to the records and information and explanations given to us, there are dues of Rs. Nil in respect of P.F., ESI, Income Tax, Sale Tax, Wealth Tax, Custom Duty, Excise Duty, Cess and other statutory dues that have not been deposited on account of dispute.

(10) The company has accumulated profits of Rs. 366.99 Lacs at the year ended 31.03.2009 and it has not incurred cash losses during the financial year under review.

(11) Based on our audit procedures and on the information and explanations provided by the management, the company has not defaulted in repayment of dues to bank. There were no dues to debenture holders during the year, however there was default in the repayment of the dues of financial institutions.

(12) According to the information and explanations provided to us and based on the documents and records produced before us, the company has not granted loans and advances on tha, basis of security by way of pledge of shares, debentures and other securities.

(13) Clause (xiii) is not applicable to the company as the company is not a Chit fund company or nidhi/mutual benefit fund/society.



For Rajesh K. Sharma & Associates, Chartered Accountants,

Date : 28.08.2009 Place : Ludhiana (Rajesh sharma) partner *

 
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