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Auditor Report of Lykis Ltd.

Mar 31, 2015

We have audited the accompanying financial statements of M/S LYKIS LIMITED ("the company"),which comprise the Balance Sheet as at 31 March 2015, the Statement of Profit and Loss, 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 are responsible for the matters stated in section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation and presentation 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 provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial control, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

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

We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and 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 financial 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, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and operating effectiveness of such controls . 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 sufficient and appropriate to provide a basis for our audit opinion on the financial statements.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India of the state of affairs of the Company as at 31st March, 2015, its profit/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 (Auditor's 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 paragraphs 3 and 4 of the Order, to the extent applicable.

2. As required by section 143(3) of the Act, we report that:

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

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

c) the Balance Sheet, the Statement of Profit and Loss, and 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 31 March, 2015, taken on record by the Board of Directors, none of the directors is disqualified as on 31 March, 2015, from being appointed as a director in terms of Section 164(2) of the Act.

f) In our opinion and to the best of our information and according to the explanations given to us, we have no observations on financial transactions or matters which have any adverse effect on the functioning of the company.

g) In our opinion and to the best of our information and according to the explanations given to us, we report as under with respect to other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014:

i. The Company has disclosed the impact of pending litigation on its financial statement-refer note no.31 to the financial statement.

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

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

Annexure to the Auditor 's Report

Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirements' of our Report of even date to the members of M/S Lykis Limited on the accounts of the company for the year ended 31st March, 2015

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

(i) In respect of its fixed assets:

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

(b) As explained to us, fixed assets have been physically verified by the management during the year in accordance with the phased programme of verification adopted by the management which, in our opinion, provides for physical verification of all the fixed assets at reasonable intervals. According to the information and explanations given to us, no material discrepancies were noticed on such verification.

(ii) In respect of its inventory:

a) As explained to us, the inventories of finished goods, semi-finished goods, stores, spare parts and raw materials were physically verified at regular intervals by the Management. In case of inventories lying with third parties, certificates of stocks holding have been received.

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

c) In our opinion and according to the information and explanations given to us, the Company has maintained proper records of its inventories and no material discrepancies were noticed on physical verification of stocks as compared to book records.

(iii) According to the information and explanations given to us, the Company has not granted any loans to companies, firms or other parties covered in the Register maintained under Section 189 of the Companies Act, 2013,and therefore paragraph 3(iii) of the order is not applicable.

(iv) 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 for the purchase of inventory, fixed assets and for the sale of goods .During the course of our Audit, we have not observed any continuing failure to correct major weaknesses in internal control.

(v) The company has not received any public deposits during the year

(vi) We have broadly reviewed the cost records maintained by the Company pursuant to the Rules made by the Central Government under Section 148(1) of the Companies Act, 2013 and are of the opinion that prima facie the prescribed cost records have been made and maintained.

(vii) In respect of statutory dues:

(a) The Company has generally been regular in depositing undisputed dues, including provident fund, ESI,

Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Value Added Tax, Cess and other material Statutory Dues applicable to it with the appropriate authorities. There were no undisputed amount due in arrear as at 31.03.2015 for a period more than 6 months from the date they became payable.

(b) Details of dues of Agriculture Income Tax which has not been deposited as on 31.03.2015 on account of dispute, is given below:

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

Agriculture Agriculture Agriculture F.Y.2007- 2008 6,79,380.00

Income Tax (Assam) Income Tax Income Tax Officer (Assam)

(c) There were no amounts which required to be transferred by the Company to the Investor Education and

Protection Fund.

(viii) The company does not have the accumulated losses at the end of financial year. The company has not incurred any Cash losses during the financial covered by our Audit and the immediately preceding financial year

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

(x) In our opinion, and according to the information and the explanation given to us, the company has not given any guarantee for loans taken by others from banks or financial institutions during the year;

(xi) The company has not obtained any term loan during the year, so this para of order is not applicable

(xii) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no material fraud on the Company has been noticed or reported during the year.

For SANJAY P AGARWAL & ASSOCIATES

Chartered Accountants

Firm Regn. No. 325683E

Place : Kolkata (SANJAY AGARWAL) Partner Date : 29th May , 2015 Mem. No. 062218


Mar 31, 2014

We have audited the accompanying financial statements of LYKIS 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 Company''s 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 notified under the Companies Act, 1956 (the Act) read with the General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013 and in accordance with the accounting principles generally accepted in India. 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.

AUDITORS'' 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 Company''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 aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

(a) In the case of 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 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 of the Company for the year ended on that date.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. As required by the Companies (Auditor''s Report) Order, 2003 (the Order) issued by the Central Government of India in terms of Section 227(4A) of the Act, we give in the Annexure a statement on the matters specified in 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, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.

d. In our opinion, the Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement comply with Accounting Standards notified under the Act read with the General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013.

e. On the basis of the written representations received from the directors as on March 31,2014, 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 Section 274(1)(g) of the Act.

Annexure to Independent Auditors'' Report

Referred to in Paragraph I under the heading of "Report on other Legal and regulatory requirements" of our report of even date:

i. The Company has made available the fixed asset records showing full particulars including quantitative details and situation of fixed assets of the company during the audit period under review. As explained to us, all the fixed assets have been physically verified by the management in a phased periodical manner, which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies were noticed on such physical verification.

ii. The Stock of inventories has been physically verified during the period by the Management at reasonable intervals, in our opinion, the procedure 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. The company has maintained the proper records of inventories. The discrepancies noticed on physical verification of stocks as compared to books record were not material. However the same has been properly dealt with the books of account.

iii. The company has not granted but taken unsecured loans and advances from companies, firms and/or other parties covered in the register maintained under section 301 of the Companies Act, 1956.

The Company has taken interest free loans from its directors & related companies amounting to Rs. 34,65,000/- (Previous Year (Rs. 1,08,75,000/-)and repaid Rs. 1,43,40,000/- during the year.

iv. In our opinion and according to the information and explanations given to us, there is adequate internal control procedure commensurate with the size of the company and the nature of its business with regard to purchase of inventory and fixed assets and with regard to the sale of goods. Further on the basis of our examination and according to the information and explanations given to us, we have neither come across nor have been informed of any instance of continuing failure or major weakness in the internal control systems.

v. In respect of the contract or arrangement referred to in section 301 of the companies Act 1956:

a) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements that need to be entered in the register maintained under section 301 of the CompaniesAct,1956 have been 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 and exceeding the value of Rs. 5,00,000/-in respect of each party during the year have been made at prices which appear reasonable as per information available with the Company.

vi. The Company has not accepted any deposits from the public and consequently, the directives issued by the Reserve Bank of India, the provisions of Section 58A and 58AA or any other relevant provision of the Companies Act, 1956 and the rules framed there under are not applicable.

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

viii. The Central Government has prescribed the maintenance of cost records under clause (d) of sub-section (l) of Section 209 of the Companies Act, 1956 in respect of activities carried out by the company. We have broadly reviewed the cost records maintained by the company and are of the opinion that prima facie the prescribed cost records have been maintained. However, we have not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.

ix. According to the information and explanation given to us and on the basis of our examination of the books of account, the Company is regular in depositing the amount of undisputed statutory dues of Provident fund, Sale- tax, VAT, Cess on green leaf and other Statutory dues with appropriate authorities . However, there are outstanding settled amount of Rs. 21,13,109/- in respect of Cess on Greenleaf as on 31.03.2014. According to the information and explanation given to us, there were no undisputed amounts payable in respect of Sales tax and Vat, Customs Duty and Excise Duty as on 31st March 2014 for a period of more than six months from the date of becoming payable. Further there were disputed demand of Rs. 6,79,380/- on account of Agricultural Income Tax for the Asst.Year 2007-08.

x. The Company''s accumulated loss at the end of the year is less than the fifty percent of its net worth. The company has not incurred cash losses during the current financial year covered by the audit and in the immediately preceeding financial year.

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

xii. The Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures during the period.Accordingly, Clause 4(xii) of the order is not applicable.

xiii. The Company is not a chit fund, nidhi, mutual benefit fund or a society. Accordingly, clause 4(xiii) of the order is not applicable.

xiv. The company has invested in shares during the period . Proper records have been maintained of the transactions and contracts. The shares have been held by the company, in its own name except to the extent of the exemption, if any, granted under section 49 of the CompaniesAct,1956.

xv. According to the information and explanations, the company has not given any guarantee for loans taken by other from banks and /orfinancial institutions.

xvi. During the period, the company has not obtained any fresh Term loans; accordingly, clause 4(xvi) of the order is not applicable.

xvii. According to information and explanation given to us, the fund raised on short-term basis has not been used for long-term investments.

xviii. The Company has not made any preferential allotment of Equity shares to parties and companies covered in the register maintained under section 301 of the Act during the current financial year.

xix. The Company has not issued any debentures. Accordingly clause 4(xix) of the order is not applicable.

xx. The Company has not raised any money by public issues during the period. Accordingly, clause 4(xx) of the order is not applicable.

xxi. In our opinion and according to the information and explanations given to us, no fraud on or by the company has been noticed or reported during the period.

For SANJAY P AGARWAL & ASSOCIATES Chartered Accountants Firm Regn. No. 325683E

Place : Kolkata (SANJAY AGARWAL) Partner Date : 30th May, 2014 Mem. No. 062218


Mar 31, 2013

Report on the Financial Statement

We have audited the accompanying financial statements of LYKIS LIMITED (the Company ), which comprise the Balance Sheet as at March 31, 2013, and 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 forthe Financial Statements ''

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position financial performance and cash flows of the Company in accordance with the Accounting ;

Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ("the Act"). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor''s Responsibility

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

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

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

Opinio

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 ofthe Balance Sheet, ofthe state of affairs ofthe Company as at March 31,2013; b)inthecaseof statementof Profitand Loss Account, ofthe loss for the year ended on that date; and c) in the case ofthe Cash Flow Statement, ofthe cash flows forthe yearended on that date.

Report on other Legal and Regulatory Requirment

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 mattersSpecified in paragraphs 4 and 5 ofthe 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 oftheCompaniesAct, 1956;

e) on the basis of written representations received from the directors as on March 31, 2013, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2013, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

Annexure to Independent Auditors''Report

Referred to in Paragraph I underthe heading of "Report on other Legal and regulatory requirements" of our report of even date:

The Company has made available the fixed asset records showing full particulars including quantitative details and situation of fixed assets of the company during the audit period under review. As explained to us, all the fixed assets have been physically verified by the management in a phased periodical manner, which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies were noticed on such physical verification.

The Stock of inventories has been physically verified during the period by the Management at reasonable intervals in our opinion, the procedure 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. The company has I maintained proper records of inventories. The discrepancies noticed on physical verification of stocks as compared to books record were not material. However the same has been properly dealt with the books of account.

iii. The company has granted or taken unsecured loans and advances to/from companies, firms and/or other parties covered in the register maintained under section 301 oftheCompaniesAct, 1956

a)The Company has given loans to subsidiary- in respect of said loan, the maximum amount outstanding af any time during the year was Rs.6,60,88,130/- and the Year end balance is Rs.6,60,88,130/-(including interest)

b) In our opinion and according to the information and explanation given to us, the rate of interest and other | conditionsoftheloangivenbythecompanyarenotprimefacieprejudidal to the interest of the company.

c) In respect of said loans and interest thereon, there are n overdue amount.

d)The Principal amounts are repayable on demand.

e) The company has taken interestfree loans of Rs.53,75,000/-from directors during the year.

iv In our opinion and according to the information and explanations given to us, there is adequate internal control procedure commensurate with the size of the company and the nature of its business with regard to purchase of inventory and fixed assets and with regard to the sale of goods. Further on the basis of our examination and according to the information and explanations given to us, we have neither come across nor have been informed . of any instance of continuing failure or major weakness in the intemal control systems.

v. In respect ofthe contract or arrangement referred to in section 301 oftheCompaniesAct 1956:

a) In our opinion and according to the information and explanations given to us, 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 entered.

b) In our opinion and according to the information and explanations'' given to us, the transactions made in :

I pursuance of contracts/arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of Rs. 5,00,000/-in respect of each party during the year have been made at : prices which appear reasonable as per information available with the Company.

vi. The Company has not accepted any deposits from the public and consequently, the directives issued by the Reserve Bank of India; the provisions of Section 58Aand 58AAor any other relevant provision of the Companies Act, 1956 and the rules framed there under are not applicable.

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

viii. The Central Government has prescribed the maintenance of cost records under clause (d) of sub-secti6n (I) of Section 209 of the Companies Act, 1956 in respect of activities carried out by the company. We have broadly reviewed the cost records maintained by the company and are of the opinion that prima facie the prescribed cost records have been maintained. However, we have not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.

ix. According to the information and explanation given to us and on the basis of our examination of the books of account, the Company is regular in depositing the amount of undisputed statutory dues of Provident fund, Sale- tax, VAT, Cess on green leaf and other Statutory dues with appropriate authorities . However, there are outstanding settled amount of Rs. 18,83,791/-in respect of Cess on Green leaf including interest and land revenue amounting to Rs. 2,00,072/- as on 31.03.2013. According to the information and explanation given to us, there were no undisputed amounts payable in respect of Sales tax and Vat, Customs Duty, Excise Duty and Cess as on 31 st March 2013 for a period of more than six months from the date of becoming payable. Further there were disputed demand of Rs.6,79,380/- on account of Agricultural Income Tax for the Asst.Year2007-08

x. TheCompany''s accumulated loss at the end of the year is less than the fifty percent of its net worth.The company: has not incurred cash losses during the current financial year covered by the audit but incurred cash losses in the immediately preceding six months period ended 31st March 2012.

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

xii. The Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures during the period. Accordingly, Clause4(xii) of the order is not applicable.

xiii. The Company is not a chit fund, nidhi, mutual benefit fund or a society. Accordingly, clause 4 (xiii) of the order is not applicable.

xiv. The company has invested in shares during the period. Proper records have been maintained of the transactions and contracts. The shares have been held by the company, in its own name exceptto the extent of the exemption, if any, granted under section 49 of the Companies Act, 1956.

xv. According to the information and explanations, the company has not given any guarantee for loans taken by other from banks and /orfinancial institutions. :

xvi. During the period, the company has not obtained any fresh Term loans; accordingly, clause 4(xvi) of the order is not applicable.

xvii. According to information and explanation given to us, the fund raised on short-term basis has not been used for long-term investments.

xviii. The Company has made preferential allotment of 25,33,335 nos. of equity shares to parties and companies covered in the register maintained under section 301 of the Act. However the price paid for the same is not prejudicial to the interest of the company.

xix. The Company has not issued any debentures. Accordingly clause 4(xix) of the order is not applicable.

xx. The Company has not raised any money by public issues during the period. Accordingly, clause 4(xx) of the order | : is not applicable.

xxi. In our opinion and according to the information and explanations given to us, no fraud on or by the company has been noticed or reported during the period.



For SANJAY P AGARWAL & ASSOCIATES

Chartered Accountants

Firm Regn. No. 325683E



Place : Kolkata (SANJAY AGARWAL)

Partner

Date : 30th May, 2013 Mem.No,062218


Mar 31, 2012

We have audited the attached Balance Sheet of LYKIS LTD.(FORMERLY GREENLINE TEA & EXPORTS LTD.), as at 31 st, March 2012 and also the annexed Statement of Profit & Loss Account of the Company for the Six months period 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 statement based on ouraudit.

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 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 and we report that:

1. The Balance Sheet and Statement of Profit and Loss Account referred to in this report are in agreement with the Books of Account.

2. In our opinion and to the best of our information and according to the explanations given to us, the Balance Sheet and Statement of Profit and Loss Account subject to and read togetherwith the notes appearing thereon in Significant Accounting Policies and Notes on Financial Statements attached thereto, given in the prescribed manner the information required by the CompaniesAct, 1956 gives a true and fair view:

(i) In so far as it relates to Balance Sheet, of the state of affairs of the company as at 31 st March 2012 and;

(ii) In so far as it relates to Statement of Profit & Loss Account, of the profit of the company for the period ended on that date.

3. 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.

4. In our opinion, proper books of accounts as required by law have been kept by the company so as far as appears from our examinations of such books.

5. The company has complied with the accounting standards as referred in Sec 211 (3C) of the Companies Act, 1956 subject to the extent as disclosed in notes to the accounts.

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

7. As required by the Companies (Auditors' Report) order 2003, issued by the Company Law Board in terms of Section 227 (4A) of the CompaniesAct, 1956 and on the basis of such checks as we considered appropriate and according to information and explanation given to us during the courseof our audit we further state that:

i. The Company has made available the fixed asset reddrds showing full particulars including quantitative details and situation of fixed assets of the company during the auditriod under review. As explained to us, all the fixed assets have been physically verified by the management in a phased periodical manner, which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies were noticed on such physical verification.

ii. The Stock of inventory has been physically verified during the period by the Management at reasonable intervals, in our opinion, the procedure of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business. The company is maintaining the proper records of inventory. The discrepancies noticed on physical verification of stocks as compared to books record were not material. However the same has been properly dealt with the books of account.

iii. The company has not granted unsecured loans and advances to companies, firms and/or other parties covered in the register maintained under section 301 ofthe CompaniesAct, 1956.

iv. In our opinion and according to the information and explanations given to us, there is adequate internal control procedure commensurate with the size ofthe company and the nature of its business with regard to purchase of inventory and fixed assets and with regard to the sale of goods. Further on the basis of our examination and according to the information and explanations given to us, we have neither come across nor have been informed of any instance of continuing failure or major weakness in the internal control systems.

v. During the period under audit the Company has purchased fixed assets for Rs 368000/- from M/S Sanzi International Pvt. Ltd,which is a listed party under section 301 of the Companies Act, 1956.

vi. The Company has not accepted any deposits from the public and consequently, the directives issued by the Reserve Bank of India; the provisions of Section 58Aand 58AA or any other relevant provision of the Companies Act. 1956 and the rules framed there under are not applicable.

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

viii. The Central Government has prescribed the maintenance of cost records under clause (d) of sub-section (I) of Section 209 of the Companies Act, 1956 in respect of activities carried out by the company. We have broadly reviewed the cost records maintained by the company and are of the opinion that prima facie the prescribed cost records have been maintained. However, we have not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.

Ix. According to the information and explanation given to us and on the basis of our examination of the books of account, the Company is regular in depositing the amount of undisputed statutory dues of Provident fund, Sale-tax, VAT, Cess on green leaf and other Statutory dues with appropriate authorities. However, there are outstanding settled amount of Rs.20,83,791/-inrespectofCessonGreenleaf including interest and land revenue amounting to Rs. 2,46,052/-as on 31.03.2012 . According to the information and explanation given to us, there were no undisputed amounts payable in respect of Sales tax and Vat, Customs Duty, Excise Duty and Cess as on 31 st March 2012 for a period of more than six months from the date of becoming payable. Further there were disputed demand of Rs 6,79,380/- on account of Agricultural IncomeTax for the Asst. Year2007-08.

x. The Company's accumulated loss at the end of the year is less than the fifty percent of its net worth. The company has incurred cash losses in the current period(Six Months) ended 31st March 2012 but not in the immediately preceding period(12 Months) ended 30th September2011.

xi. During the period the Company has neither taken any ftesh loan from any financial institution and/or from bank nor issued any debentures during the period. Accordingly, clause 4(xi) of the order is not applicable.

xii. The Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures during the period. Accordingly, Clause 4(xii) of the order is not applicable.

xiii. The Company is not a chit fund, nidhi, mutual benefit fond or a society. Accordingly, clause 4(xiii) of the order is not applicable.

xiv. The company has invested in shares during the period. Proper records have been maintained of the transactions and contracts. The shares have been held by the company, in its own name except to the extent of the exemption, if any, granted under section 49 of the Companies Act,1956.

xv. According to the information and explanations, the company has not given any guarantee for loans taken by other from banks and /or financial institutions.

xvi. During the period, the company has not obtained any fresh Term loans; accordingly, clause 4(xvi) of the order is not applicable.

xvii. According to information and explanation given to us, the fund raised on short-term basis has not been used for long-term investments.

xviii. The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act. Accordingly, clause 4(xviii) of the order is not applicable.

xix. The Company has not issued any debentures. Accordingly clause4(xix) of the order is not applicable.

xx. The Company has not raised any money by public issues during the period. Accordingly, clause 4
xxi. In our opinion and according to the information and explanations given to us, no fraud on or by the company has been noticed or reported during the period.

For SANJAY P AGARWAL & ASSOCIATES

Chartered Accountants

Firm Regn. No. 325683E

Place: Kolkata (SANJAY AGARWAL)

Partner

Dated: 10/08/2012 Mem. No. 062218


Sep 30, 2011

We have audited the attached Balance Sheet of GREENLINE TEA & EXPORTS LTD., as at 30th, September 2011 and also the annexed Profit & Loss Account of the Company for the Twelve months period 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 statement 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 that audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. 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 and we report that :

1. The Balance Sheet and Profit and Loss Account referred to in this report are in agreement with the Books of Account.

2. In our opinion and to the best of our information and according to the explanations given to us, the Balance Sheet and Profit and Loss Account subject to and read together with the notes appearing thereon in Schedule "A" of Significant Accounting Policies and Notes on Accounts attached thereto, given in the prescribed manner the information required by the Companies Act, 1956 gives a true and fair view :

(i) In so far as it relates to Balance Sheet, of the state of affairs of the company as at 30th September 2011 and;

(ii) In so far as it relates to Profit & Loss Account, of the profit of the company for the period ended on that date.

3. 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.

4. In our opinion, proper books of accounts as required by law have been kept by the company so as far as appears from our examinations of such books.

5. The company has complied with the accounting standards as referred in Sec 211 (3C) of the Companies Act, 1956 subject to the extent as disclosed in notes to the accounts.

6. On the basis of written representations received from the Directors and taken on record by Board of Directors. We report that none of the Directors is disqualified as on 30th September 2011 from being appointed as director in terms of clause (g) of Sub-section (1) of section 274 of - the Companies Act. 1956.

7. As required by the companies Act, 1956 and the basis of such checks as we considered , appropriate and according to information and explanation give to us during the course of our i audit we further state that: ,

i. The Company has not made available the fixed asset records showing full particulars , including quantitative details and situation of fixed assets of the company during the J audit period under review and it is informed and explained that due to loss of those i records by lock out and labor unrest at the garden premises of the company where the J records were kept and accordingly the records relating to the same could not be produced. « Although the Company has a phased program of physical verification of its fixed assets , periodically which, in our opinion, is reasonable having regard to the size of the company ' and the nature of its assets, the management has not verified physically the fixed assets of the company during the period to ascertain any material discrepancies if any to properly J deal with in the books of account.

ii. The Stock of inventory has been physically verified during the period by the Management at reasonable intervals, in our opinion, the procedure of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business. The company is maintaining the proper records of inventory. The discrepancies noticed on physical verification of stocks as compared to ' Books record were not material. However the same has been properly dealt with in the books of account.

iii. The company has granted unsecured loans and advances to companies, firms and/or other parties covered in the register maintained under section 301 of the companies Act, 1956. The said loans is granted without any specific stipulation as to the rate of interest and other terms and condition hence we are unable to comment whether they are prima facie prejudicial to the interest of the company or not. Other loans and Advances in nature of advance or loans have been given by the companies which are repayable on demand and without specific stipulation so we are unable to comment on the repayment of the same.

iv. In our opinion and according to the information and explanations given to us, there is adequate internal control procedure commensurate with the size of the company and the nature of its business with regard to purchase of inventory and fixed assets and with regard to the sale of goods. Further on the basis of our examination and according to the information and explanation given to us, we have neither come across nor have been informed of any instance of continuing failure or major weakness in the internal control systems.

v. The Company has not purchased or entered into any transaction of contract for purchase ' of goods and materials with parties as listed under section 301 of the Companies Act, 1956 during the year. ',

vi. The Company has not accepted any deposits from the public and consequently, the directives issued by the Reserve Bank of India; the provisions of Section 58A and 58AA of any other relevant provision of the Companies Act, 1956 and the rules framed there under are not applicable.

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

viii. The Central Government has prescribed the maintenance of cost records under clause (d) of sub-section (I) of Section 209 of the Companies Act, 1956 in respect of activities carried out by the company. We have broadly reviewed the books of accounts maintained by the company and have not made detailed examination of the cost records as prescribed, made and maintained by the company with a view to determine whether they are accurate or complete.

ix. According to the information and explanation given to us and on the basis of our examination of the books of account, the Company has not been regular in depositing the amount of undisputed statutory dues of Provident fund, Sale-tax, Vat, Cess on green leaf and other Statutory dues with appropriate authorities. According to the information and explanation given to us, there were undisputed amount outstanding as at 30.09.2011 in respect of provident fund Account including interest amounting to Rs. 1392694. Cess on Greenleaf including interest amounting to Rs. 3619702, and land revenue amounting Rs. 4,00,072 for a period of more than six months from the date they become payable. According to the information and explanation given to us, there are no dues in respect of sales tax and Vat, Customs Duty, Excise Duty and Cess that have not been deposited with the appropriate authorities on account of any dispute.

x. The Company's accumulated loss at the end of the year is less than the fifty percent of its net worth. The company has not incurred cash losses in the current period ended 30th September 2011 and in the immediately preceding financial period 30th.

xi. During the year the Company has neither taken any fresh loan from a financial institution and a bank nor issued any debentures during the year. Accordingly, clause 4(xi) of the order is not applicable.

xii. The Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures during the year. Accordingly, Clause 4(xiii) of the order is not applicable.

xiii. The Company is not a chit fund, nidhi, mutual benefit fund or a society. Accordingly, clause 4(xiii) of the order is not applicable.

xiv. According to the information and explanations, the company has not given any guarantee for loans taken by other from banks of other financial institutions. Accordingly, clause 4(xv) of the order is not applicable.

xv. During the year, the company has not obtained any fresh loans; accordingly, clause 4(xvi) of the order is not applicable.

xvi. According to information and explanation given to us, the fund raised on short-term basis has not been used for long-term investments.

xvii. The Company has not made any preferential allotment of shares ot parties and companies covered in register maintained under section 301 of the Act. Accordingly, clause 4(xviii) of the order is not applicable.

xviii. The Company has not issued any debentures. Accordingly clause 4(xix) of the order is not applicable.

xix. The Company has not raised any money by public issues during the year. Accordingly, clause 4(xx) of the order is. not applicable.

xx. According to the information and explanations given to us, no fraud or by the company has been noticed or reported during the year.

For Sanjay P Agarwal & Associates

Chartered Accounts Place: Kolkata

Date:28/01/2012 (Sanjay Ahgarwal)

Partner

M.N.062218


Sep 30, 2010

We have audited the attached Balance Sheet of GREENLINE TEA & EXPORTS LTD., as at 30th, September 2010 and also the annexed Profit & Loss Account of the Company for the fifteen months period ended on that date annexed thereto. These financial statements are the responsibility of the companys Management. Our responsibility is to express and opinion on these financial statement 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 that audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. 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 and we report that:

1. The Balance Sheet and Profit and Loss Account referred to in this report are in agreement with the Books of Account.

2. In our opinion and to the best of our information and according to the explanations given to us, the Balance Sheet and Profit and Loss Account subject to and read together with the notes appearing thereon in Schedule "A" of Significant Accounting Policies and Notes on Accounts attached thereto, given in the prescribed manner the information required by the Companies Act, 1956 gives a true and fair view:

(i) In so far as it relates to Balance Sheet, of the state of affairs of the company as at 30th September 2010 and;

(ii) In so far as it relates to Profit & Loss Account of the profit of the company for the period ended on that date.

3. 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.

4. In our opinion, proper books of accounts as required by law have been kept by the company so as far as appears from our examinations of such books.

5. The company has complied with the accounting standards as referred in Sec 211 (3C) of the Companies Act, 1956 subject to the extent as disclosed in notes to the accounts.

6. On the basis of written representations received from the Directors and taken on record by Board of Directors. We report that none of the Directors is disqualified as on 30th September 2010 from being appointed as director in terms of clause (g) of Sub-section (1) of section 274 of the Companies Act, 1956.

7. As required by the companies (Auditors Report) order 2003, issued by the company law Board in terms of Section 227 (4A) of the Companies Act, 1956 and the basis of such checks as we considered appropriate and according to information and explanation given to us during the course of our audit we further state that:

i. The Company has not made available the fixed asset records showing full particulars including quantitative details and situation of fixed assets of the company during the audit period under review and it is informed and explained that due to loss of those records by lock out and labour unrest at the garden premises of the company where the records were kept and accordingly the records relating to the same could not be produced. Although the Company has a phased program of physical verification of its fixed assets periodically which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets, the management has not verified physically the fixed assets of the company during the period to ascertain any material discrepancies if any to properly deal with in the books of account.

ii. The Stock of inventory has been physically verified during the period by the Management at reasonable intervals, in our opinion, the procedure of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business. The company is maintaining the proper records of inventory. The discrepancies noticed on physical verification of stocks as compared to books record were not material. Howeverthe same has been property dealt with the books of account.

iii. The company has granted unsecured loans and advances to companies, firms and/or other parties covered in the register maintained under section 301 of the companies Act, 1956. The said loans is granted without any specific stipulation as to the rate of interest and other terms and condition hence we are unable to comment whether they are prima facie prejudicial to the interest of the company or not. Other loans and Advances in nature of advance or loans have been given by the companies which are repayable on demand and without specific stipulation so we are unable to comment on the repayment of the same

iv. In our opinion and according to the information and explanations given to us, there is adequate internal control procedure commensurate with the size of the company and the nature of its business with regard to purchase of inventory and fixed assets and with regard to the sale of goods. Further on the basis of our examination and according to the information and explanation given to us, we have neither come across nor have been informed of any instance of continuing failure or major weakness in the internal control systems.

v. The Company has not purchased or entered into any transaction of contract for purchase of goods and materials with parties as listed under section 301 of the Companies Act, 1956 during the year,

vi. The Company has not accepted any deposits from the public and consequently, the directives issued by the Reserve Bank of India; the provisions of Section 58A and 58AA of any other relevant provision of the Companies Act, 1956 and the rules framed there under are not applicable.

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

viii. The Central Government has prescribed the maintenance of cost records under clause (d) of sub-section (I) of Section 209 of the Companies Act, 1956 in respect of activities carried out by the company. We have broadly reviewed the books of accounts maintained by the company and have not made detailed examination of the cost records as prescribed, made and maintained by the company with a view to determine whether they are accurate or complete.

fx. According to the information and explanation given to us and on the basis of our examination of the books of account, the Company has not been regular in depositing the amount of undisputed statutory dues of Provident fund, Sale-tax, Vat, Cess on green leaf and other Statutory dues with appropriate authorities. According to the information and explanation given to us, there were undisputed amount outstanding as at 30.09.2010 in respect of provident fund Account including interest amounting to Rs. 30,10,736.45, Sales Tax including VAT amounting to Rs.5,77,252.52, Cess on Greenleaf including interest amounting to Rs. 34,72,916.97, Profession Tax amounting to Rs. 44,680 and land revenue amounting Rs. 4,00,072 for a period of more than six months from the date they become payable. According to the information and explanation given to us, there are no dues in respect of sales tax and Vat, Customs Duty, Excise Duty and Cess that have not been deposited with the appropriate authorities on account of any dispute.

x. The Companys accumulated loss at the end of the year is less than the fifty percent of its net worth. The company has not incurred cash losses in the current period ended 30th September 2010 and in the immediately preceding financial period 30th June 2009.

xi. During the year the Company has neither taken any fresh loan from a financial institution and a bank nor issued any debentures during the year. Accordingly, clause 4(xi) of the order is not applicable.

xii. The Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures during the year. Accordingly, Clause 4(xiii) of the order is not applicable.

xiii. The Company is not a chit fund, nidhi, mutual benefit fund or a society. Accordingly, clause 4(xiii) of the order is not applicable.

xiv. According to the information and explanations, the company has not given any guarantee for loans taken by other from banks of otherfinancial institutions. Accordingly, clause 4(xv) of the order is not applicable.

xv. During the year, the company has not obtained any fresh loans; accordingly, clause 4(xvi) of the order is not applicable.

xvi. According to information and explanation given to us, the fund raised on short-term basis has not been used for long-term investments.

xvii. The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act. Accordingly, clause 4(xviii) of the order is not applicable.

xviii. The Company has not issued any debentures. Accordingly clause 4(xix) of the order is not applicable.

xix. The Company has not raised any money by public issues during the year. Accordingly, clause 4(xx) of the order is not applicable.

xx. According to the information and explanations given to us, no fraud or by the company has been noticed or reported during the year.

For Hanumaiah & Co.

Place: Kolkata Chartered Accountants

Date: 12.02.2011 (K Hanumaiah) Partner


Jun 30, 2009

We have audited the attached Balance Sheet of GREENLINE TEA & EXPORTS LTD., as at 30th Jun, 2009 and also the annexed Profit & Loss Account of the Company for the fifteen months period ended on that date annexed thereto. These financial statements are the responsibility of the companys management. Our responsibility is to express and opinion on these financial statement based on our audit.

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

1. The Balance Sheet and Profit and Loss Account referred to in this report are in agreement with the Books of Account.

2. (a) In our opinion and to the best of our information and according to the explanations given to us, the Balance Sheet and Profit and Loss Account subject to and read together with the notes appearing thereon in Schedule "A" of Significant Accounting Policies and Notes on Accounts attached thereto, given in the prescribed manner the information required by the Companies Act, 1956 and subject to below mentioned Notes on para 2(b) given true and fair view :

(i) In so far as it relates to Balance Sheet, of the state of affairs of the company as at 30th June 2009 and; (ii) in so far as if relates to Profit & Loss Account, of the profit of the company for the period ended on that date. (b) (i) Note B-1 (ii) on schedule "A" regarding adequacy or otherwise of estimated liability for future payment of gratuity of Rs. 3,02,295.34 which is being accounted for on cash Basis and not based on actuarial basis. (ii) The Company has not provided interest on certain advances and loans taken and/or given. The quantum and the effect of the same on current periods accounts has not been ascertained by the management.

3. 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.

4. In our opinion, proper books of accounts as required by law have been kept by the company so as appears from our examinations of such books subject to notes 2(b) above.

5. The company has complied with the accounting standards as referred in Sec 211 (3C) of the Companies Act, 1956 subject to the extent as disclosed in notes to the accounts.

6. On the basis of written representations received from the Directors and taken on record by Board of Directors. We report that none of the Directors is disqualified as on 30th June 2009 from being appointed as director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

7. As required by the companies (Auditors Report) order 2003, issued by the company law Board in terms of Section 227(4A) of the Companies Act, 1956 and the basis of such checks as we considered appropriate and according to information and explanation given to us during the course of our audit we further state that:

(i) The Company has not made available the fixed asset records showing full particulars including quantitative details and situation of fixed assets of the company during the audit period under review and it is informed and explained that due to loss of those records by lock out and labour unrest at the garden premises of the company where the records were kept and accordingly the records relating to the same could not be produced. Although the Company has a phased program of physical verification of its fixed assets periodically which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets, the management has not verified physically the fixed assets of the company during the period to ascertain any material discrepancies if any to properly deal with in the books of account.

(ii) The Stock of inventory has been physically verified during the period by the Management at reasonable intervals, in our opinion, the procedure of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business. The company is maintaining the proper records of inventory. The discrepancies notices on physical verification of stocks as compared to books record were not material. However the same has been properly dealt with the books of account.

(iii) The company has granted unsecured loans and advances to companies, firms and/or other parties covered in the register maintained under section 301 of the companies Act, 1956. The said loans is granted without any specific stipulation as to the rate of interest and other terms and condition hence we are unable to comment whether they are prima facie prejudicial to the interest of the company or not. Other loans and Advances in nature of advance or loans has been given by the company which are repayable on demand and without specific stipulation so we are unable to comment on repayment of the same.

(iv) In our opinion and according to the information and explanations given to us, there are adequate internal control Procedure commensurate with the size of the company and the nature of its business of its business with regard to purchase of inventory and fixed assets and with regard to the sale of goods. Further on the basis of our examination and according to the information and explanation given to us, we have neither come across nor have been informed of any instance of continuing failure or major weakness in the internal control systems.

(v) The Company has not purchased or entered into any transaction of contract for purchase of goods and materials with parties as listed under section 301 of the Companies Act, 1956 during the year,

(vi) The Company has not accepted any deposits from the public and consequently, the directives issued by the Reserve Bank of India, the provisions of Section 58A and 58AA of any other relevant provision of the Companies Act, 1956 and the rules framed there under are not applicable.

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

(viii) The Central Government has prescribed the maintenance of cost records under clause (d) of sub-section(l) of Section 209 of the Companies Act, 1956 in respect of activities carried out by the company. We have broadly reviewed the books of accounts maintained by the company and have not made detailed examination of the cost records as prescribed, made and maintained by the company with a view to determine whether they are accurate or complete.

(ix) According to the information and explanation given to us and on the basis of our examination of the books of account, the Company has not been regular in depositing the amount of undisputed statutory dues of Provident fund, Sale-tax, Vat, Cess on green leaf and other Statutory dues with appropriate authorities. According to the information and explanation given to us, there were undisputed amount outstanding as at 30.06.2009 in respect of provident fund Account amout to Rs. 30,11,156.38, Sales Tax including Vat amounting to Rs. 363815.78. Cess on Greenleaf amounting to Rs. 21,15,684 Profession Tax amounting to Rs. 44,680 and land revenue amounting Rs. 3,38,354 for a period of more than six months from the date they become payable. According to the information and explanation given to us, there are no dues in respect of sales tax and Vat, Customs Duty, Excise Duty and Cess that have not been deposited with the appropriate authorities on account of any dispute except amount outstnading on account of fringe benefit tax for earlier years and current period.

(x) The Companys accumulated loss at the end of the year are less than the fifty percent of its net worth. The company has not incurred cash losses in the current period ended 30th June 2009 and in the immediately preceding financial period 31st March 2008.

(xi) During the year the Company has neither taken any fresh loan from a financial institution and a bank nor issued any debentures during the year. Accordingly, clause 4(xi) of the order is not applicable.

(xii) The Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures during the year. Accordingly, Clause 4(xiii) of the order is not applicable.

(xiii) The Company is not a chit fund, nidhi, mutual benefit fund or a society. Accordingly, clause 4(xiii) of the order is not applicable.

(xiv) According to the information and explanations, the company has not given any guarantee for loans taken by other from banks of other financial institutions. Accordingly, clause 4(xv) of the order is not applicable.

(xv) During the year, the company has not obtained any fresh loans, Accordingly, clause 4(xvi) of the order is not applicable.

(xvi) According to information and explanation given to us, the fund raised on short term basis has not been used for long term investments.

(xvii) The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act. Accordingly, clause 4(xviii) of the order is not applicable.

(xviii) The Company has not issued any debentures. Accordingly clause 4(xix) of the order is not applicable.

(xix) The Company has not raised any money by public issues during the year. Accordingly, clause 4(xx) of the order is not applicable.

(xx) According to the information and explanations given to us, no fraud or by the company has been noticed or reported during the year.



For R. K. Jagnani & Co.

Place : Kolkata Chartered Accountants

Dated : The 18th day of November, 2009 (R. K. Jagnani)

Proprietor

 
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