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Auditor Report of Mahasagar Travels Ltd.

Mar 31, 2014

We have audited the accompanying financial statements of Mahasagar Travels Limited, which comprise the Balance Sheet as at 31st March , 2014, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of the 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 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.

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 the ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers the 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 the Management, as well as evaluating the overall presentation of the financial statements.

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

Opinion

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

(a) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 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 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 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, 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, Statement of Profit and Loss, and the Cash Flow Statement comply with the Accounting Standards referred to in sub-section (3C) of section 211 of the Act.

(e) On the basis of the written representations received from the directors as on 31st March, 2014 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2014 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Act.

ANNEXURE TO THE AUDITORS '' REPORT

(Referred to in our Report of even date)

(I) (a) The Company maintains proper records showing full particulars including quantitative details and situations of fixed asset.

(b) The fixed assets have been physically verified by the management at all its offices at reasonable interval. Material discrepancies were not noticed.

(c) The Company did not disposed off a substantial part of fixed assets during the year.

(ii) (a) The management carried out physical verification of the inventory at reasonable intervals during the year

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

(C) The Company maintains proper records of inventory, No Discrepancies noticed on physical verification of inventory as compared to the book records.

(iii) (a) The Company has not granted or taken any loans, secured or unsecured to/from Companies, firms or other parties covered in the register maintained under Section 301 of the Act during the year.

(b) In our opinion, the terms and conditions of such Loans were not, prima facie, prejudicial to the interest of the Company.

(c) In respect of the aforesaid Interest free loan, the Company is receiving the Loan amount as stipulated.

(d) In respect of the aforesaid Loan, there is no specific terms for repayment of loan.

(iv) In our opinion, the Company has an adequate internal control procedure commensurate with the size of the Company and nature of its business for the purchase of inventory and fixed assets and for the sale of goods.

(v) (a) according to the information and explanation given to us, based on the disclosure of interest made by the directors of the Company, transactions that need to be entered into a register in pursuance of section 301 of the Act have been so entered.

(b) In our opinion and according to the information and explanations given to us, in respect of the transactions made in pursuance of contracts or arrangement entered in the registers maintained under section 301, the rates at which such services are rendered are reasonable having regard to the prevailing market prices of such services and the commission paid to other parties.

(vi) The Company has not accepted any deposits from the public to which the directives issued by the Reserve Bank of India and the provisions of section 58A and 58AA of the Act and the rules framed there under are applicable,

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

(viii) The Central Government has not prescribed maintenance of cost records under section 209(1)(d) of the Act for any of the activities of the Company.

(ix) (a) According to the information and explanations given to us, the Company is generally regular in depositing undisputed statutory dues including,, Income Tax, Sales Tax, RTO Tax etc. and any other statutory dues with the appropriate authorities. There is no Undisputed Dues as at March, 31st 2014 for a period exceeding six months from the date they became payable is accounted for on accrual basis and provided for in the books. Name of the Statue Nature of dues Amount

1 The Gujarat Commercial Tax Act Proessinal Tax 23200/-

Name of the Statue Perieod to which Due Dates Date of it relate Payment

1 The Gujarat Commercial April-2013 to 7th of next Tax Act September-2013 month N.A (b) According to information and explanations given to us, the following are disputed dues by the company under the various Acts.

Name of the statue Dispute Amount

1 The Income Tax Act, 1961 INCOME TAX 6508160/-

2 The Income Tax Act, 1961 INCOME TAX 3868320/-

3 The Income Tax Act, 1961 T.D.S 367014/-

4 The Income Tax Act, 1961 T.D.S 81600/-

5 Service Tax SERVICE TAX 1,88,71,086/-

Name of the statue Period to which Forum where dispute amount relates is pending

1 The Income Tax Act, 1961 F.Y.2007-08 ITAT, Rajkot

2 The Income Tax Act, 1961 F.Y.2010-11 CIT (APPEALS) IV ,Ahmedabad

3 The Income Tax Act, 1961 F.Y. 2012-13 CIT(appeal), Rajkot

4 The Income Tax Act, 1961 F.Y. 2013-14 CIT(appeal), Rajkot

5 Service Tax April-2006 to CESTAT, Ahmedabad February-2011

The pending dipute of Income Tax in relation to F.Y. 2006-07 and F.Y. 2007-08 in which there is reduction in loss and department has filed appel at ITAT, Rajkot and in relation to F.Y. 2009-10, the dispute is pending before CIT (A), Rajkot is not included in above table as there is no tax demand in it.

(x) The Company''s accumulated losses at the end of the financial year does not exceed 50 % of its net worth. The company does not incurred cash losses during the financial year and in the Financial year immediately preceeding such financial year.

(xi) On the basis of our examination and according to the information and explanation given to us, the Company has not defaulted in repayment of the dues to financial institutions and Banks with respect to its borrowing.

(xii) According to the information and explanation given to us, the Company has not granted any loans and advances on the basis of security by way of pledge of shares.

(xiii) Provision for special statute applicable to chit fund, Nidhi, Mutual Benefit Fund/ Societies are not applicable to the Company.

(xiv) According to information and explanation given to us, the Company has not dealt in trading in shares, securities, debentures and other investments .

(xv) According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others to banks or financial institution.

(xvi) The Company has obtained H.P. Vehicle Loan from Banks and Financial Institution and O/D. from bank which has been utilized for the purpose for which it was obtained.

(xvii) On the basis of our examination and according to the information and explanation given to us, there are no funds raised on a short term basis which are used for long term investment, and vice versa.

(xviii) The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act During the Year

(xix) The Company has not issued debentures. Accordingly, we have no comments.

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

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

For,B.H.Advani & Associates Place: Junagadh Chartered Accountants Dated: 21.07.2014 F.R.No: 117127W

(B.H.Advani) Sole Proprietor Membership No:102464


Mar 31, 2012

1 We have audited the attached Balance Sheet of MAHASAGAR TRAVELS LIMITED, as at 31st March, 2012 and the Profit & Loss Account for the year ended on that date. These financial statements are the responsibility of the Company''s management. Our responsibility is to express an opinion on these financial statements based on our audit.

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

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

4 Further to our comments in the Annexure referred to in paragraph 3 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 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 appears from our examination of the books ;

(c) The Balance Sheet and Profit & Loss Account statement, referred to in this report, are in agreement with the books of account ;

(d) In our opinion, subject to our remarks in paragraph 4(a) above, the Balance Sheet, Profit and Loss Account and Cash Flow statement dealt with this report are in comply with the Accounting Standards referred to in sub – section (3C) of section 211 of companies Act. 1956 ;

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

(f) In our opinion and to the best of our information and according to the explanations given to us, the said financial statement read with the notes thereon, give the information required by the companies 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 Balance Sheet of the state of affairs of the company as at 31st March, 2012 ;

(ii) In the case of Profit and Loss Account, of the profit of the Company for the year ended on that date ; and

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

ANNEXURE TO THE AUDITORS ‘ REPORT

(Referred to in our Report of even date)

(i) (a) The Company maintains proper records showing full particulars including quantitative details and situations of fixed asset.

(b) The fixed assets have been physically verified by the management at all its offices at reasonable interval. Material discrepancies were not noticed.

(c) The Company did not disposed off a substantial part of fixed assets during the year.

(ii) (a) The management carried out physical verification of the inventory at reasonable intervals during the year

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

(c) The Company maintains proper records of inventory, No Discrepancies noticed on physical verification of inventory as compared to the book records.

(iii) (a) The Company has not granted or taken any loans, secured or unsecured to/from Companies, firms or other parties covered in the register maintained under Section 301 of the Act during the year.

(b) In our opinion, the terms and conditions of such Loans were not, prima facie, prejudicial to the interest of the Company.

(c) In respect of the aforesaid Interest free loan, the Company is receiving the Loan amount as stipulated.

(d) In respect of the aforesaid Loan, there is no specific terms for repayment of loan.

(iv) In our opinion, the Company has an adequate internal control procedure commensurate with the size of the Company and nature of its business for the purchase of inventory and fixed assets and for the sale of goods.

(v) (a) according to the information and explanation given to us, based on the disclosure of interest made by the directors of the Company, transactions that need to be entered into a register in pursuance of section 301 of the Act have been so entered. (b) In our opinion and according to the information and explanations given to us, in respect of the transactions made in pursuance of contracts or arrangement entered in the registers maintained under section 301, the rates at which such services are rendered are reasonable having regard to the prevailing market prices of such services and the commission paid to other parties. (vi) The Company has not accepted any deposits from the public to which the directives issued by the Reserve Bank of India and the provisions of section 58A and 58AA of the Act and the rules framed there under are applicable, (vii) In our opinion, the Company has an adequate internal control system in the absence of internal audit system commensurate with the size and nature of its business.

(viii) The Central Government has not prescribed maintenance of cost records under section 209(1)(d) of the Act for any of the activities of the Company. (ix) According to the information and explanations given to us, the Company is generally regular in depositing undisputed statutory dues including,, Income Tax, Sales Tax, RTO Tax etc. and any other statutory dues with the appropriate authorities.

(x) The Company''s accumulated losses at the end of the financial year exceeding 50 % of its net worth.The company does not incurred cash losses during the financial year and in the Financial year immediately preceeding such financial year. (xi) On the basis of our examination and according to the information and explanation given to us, the Company has not defaulted in repayment of the dues to financial institutions and Banks with respect to its borrowing.

(xii) According to the information and explanation given to us, the Company has not granted any loans and advances on the basis of security by way of pledge of shares.

(xiii) Provision for special statute applicable to chit fund, Nidhi, Mutual Benefit Fund/ Societies are not applicable to the Company.

(xiv) According to information and explanation given to us, the Company had dealt in trading in shares, securities, debentures and other investments .The company maintains the records properly.However during the year the company has not done any such transaction

(xv) According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others to banks or financial institution.

(xvi) The Company has obtained H.P. Vehicle Loan from Banks and Financial Institution and O/D. from bank which has been utilized for the purpose for which it was obtained.

(xvii) On the basis of our examination and according to the information and explanation given to us, there are no funds raised on a short term basis which are used for long term investment, and vise versa.

(xviii) The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act During the Year

(xix) The Company has not issued debentures. Accordingly, we have no comments.

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

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

Place: Junagadh FOR B.H.ADVANI & ASSOCIATES

Dated: 01.08,2012 CHARTERED ACCOUNTANTS

F.R.N.NO: 117127W

( B.H. ADVANI )

SOLE PROPRITOR M.NO.102464,

FRN.117127W


Mar 31, 2011

1 We have audited the attached Balance Sheet of MAHASAGAR TRAVELS LIMITED, as at 31st March, 2011 and the Profit & Loss Account for the year ended on that date. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

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

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

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

(a) We have obtained all me 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 appears from our examination of the books ;

(c) The Balance Sheet and Profit & Loss Account statement, referred to in this report, are in agreement with the books of account;

(d) In our opinion, subject to our remarks in paragraph 4(a) above, the Balance Sheet, Profit and Loss Account and Cash Flow statement dealt with this report are in comply with the Accounting Standards referred to in sub - section (3C) of section 211 of companies Act. 1956;

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

(f) In our opinion and to the best of our information and according to the explanations given to us, the said financial statement read with the notes thereon, give the information required by the companies 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 Balance Sheet of the state of affairs of the company as at 31st March, 2011 ;

(ii) In the case of Profit and Loss Account, of the profit of the Company for the year ended on that date ; and

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

ANNEXURE TO THE AUDITORS' REPORT

(Referred to in our Report of even date)

(i) (a) The Company does maintaining proper records showing full particulars including quantitative details and situations of fixed asset.

(b) The fixed assets have been physically verified by the management at all its offices at reasonable interval. Material discrepancies were not noticed.

(c) The Company did not disposed off a substantial part of fixed assets during the year.

(ii) (a) The management carried out physical verification of the inventory at reasonable intervals during the year

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

(c) The Company maintains proper records of inventory, No Discrepancies noticed on physical verification of inventory as compared to the book records.

(iii) (a) The Company has not granted or taken any loans, secured or unsecured to/from Companies, firms or other parties covered in the register maintained under Section 301 of the Act during the year.

(b) In our opinion, the terms and conditions of such Loans were not, prima facie, prejudicial to the interest of the Company.

(c) In respect of the aforesaid Interest free loan, ha Company is receiving the Loan amount as stipulated.

(d) In respect of the aforesaid Loan, there is no specific terms for repayment of loan.

(iv) In our opinion, the Company has an adequate internal control procedure commensurate with the size of the Company and nature of its business for the purchase of inventory and fixed assets and for the sale of goods.

(v) (a) according to the information and explanation given to us, based on the disclosure of interest made by the directors of the Company, transactions that need to be entered into a register in pursuance of section 301 of the Act have been so entered.

(b) In our opinion and according to the information and explanations given to us, in respect of the transactions made in pursuance of contracts or arrangement entered in the registers maintained under section 301, the rates at which such services are rendered are reasonable having regard to the prevailing market prices of such services and the commission paid to other parties.

(vi) The Company has not accepted any deposits from the public to which the directives issued by the Reserve Bank of India and the provisions of section 58A and 58AA of the Act and the rules framed there under are applicable,

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

(viii) The Central Government has not prescribed maintenance of cost records under section 209(1 )(d) of the Act for any of the activities of the Company.

(ix) According to the information and explanations given to us, the Company is generally regular in depositing undisputed statutory dues including,, Income Tax, Sales Tax, RTO Tax etc. and any other statutory dues with the appropriate authorities. Dues as at March, 31st 2011 fore period exceeding six months from the date they became payable has been accounted for on accrual basis and has been provided for appropriately.

(x) The Company's accumulated losses at the end of the financial year exceeding 50% of its net worth. The company does not incurred cash losses during the financial year and in the Financial year immediately preceding such financial year.

(xi) On the basis of our examination and according to the information and explanation given to us, the Company has not defaulted in repayment the dues to financial institutions and Banks with respect to its borrowing.

(xii) According to the information and explanation given to us, the Company has not granted any loans and advances on the basis of security by way of pledge of shares.

(xiii) Provision for special statute applicable to chit fund, Nidhi, Mutual Benefit Fund/ Societies are not applicable to the Company.

(xiv) According to information and explanation given to us, the Company is dealing or trading in shares, securities, debentures and other investments. The company maintains the records properly.

(xv) According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others to banks or financial institution.

(xvi) The Company has obtained H.P. Vehicle Loan from Banks and Financial Institution and old from bank, which has been utilized for the purpose for which it was obtained.

(xvii) On the basis of our examination and according to the information and explanation given to us, there are no funds raised on a short term basis which are used for long term investment, and vise versa.

(xviii) The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act During the Year

(xix) The Company has not issued debentures. Accordingly, we have no comments.

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

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

FOR B.H.ADVANI & ASSOCIATES CHARTERED ACCOUNTANTS

Sd /- (B.H.ADVANI)

SOLE PROPRITOR

PLACE: JUNAGADH MEMBERSHIP NO. 102464

DATE : 20/08/2011 PAN : ABLPA7421R


Mar 31, 2010

1 We have audited the attached Balance Sheet of MAHASAGAR TRAVELS LIMITED, as at 31 st March. 2010 and the Profit & Loss Account for the year ended on that date. These financial statements are the responsibility of the Company''s management. Our responsibility is to express an opinion m these financial statements based on our audit.

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

3 As required by the Companies (Auditor''s Report) Order, 2003 issued by the Central Government of India in terms of Section 227(4A) of the Companies Act, 1956 of India (the Act''), and on the basis of such checks of books and records of the Company as we considered appropriate md according to the information and explanations given to us, we enclose in the Annexure the statement on the matters specified in paragraph 4 and 5 of the said order.

4 Further to our comments in the Annexure referred to in paragraph 3 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 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 appears from our examination of the books ;

(c) The Balance Sheet and Profit & Loss Account statement, referred to in this report, are in agreement with the books of account;

(d) In our opi::ion. subject to our remarks in paragraph 4(a) above, the Balance Sheet, Profit and Loss Account and Cash Flow statement dealt with this report are in comply with the Accounting Standards referred to in sub - section (3C) of section 211 of companies Act. 1956

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

(f) In our opinion and to the best of our information and according to the explanations given to us, the said financial statement read with the notes thereon, give the information required by the companies Act in the manner so required and give a true and fair View in crinite with the accounting principles generally accepted in India :

(i) In the case of Balance Sheet of the state of affairs of the company as at 31st March, 2010;

(ii) In the case of Profit and Loss Account, of the profit of the Company for the year ended on that date ; and

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

(i) (a) The Company does maintaining proper records showing full particulars including quantitative details and situations of fixed asset.

(b) The fixed assets have been physically verified by the management at all its offices at reasonable interval. Material discrepancies were not noticed.

(c) The Company did not disposed off a substantial part of fixed assets during the year.

(ii) (a) The management carried out physical verification of the inventory at reasonable intervals during the year

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

(c) The Company maintains proper records of inventory, No Discrepancies noticed on physical verification of inventory as compared to the book records.

(iii) (a) The Company has not granite or taken any loans, secured or unsecured to/from Companies, firms or other parties covered in the register maintained under Section 301 of the Act during the year.

(b) In our opinion, the terms and conditions of such Loans were not, prima facie, prejudicial to the interest of the Company.

(c) In respect of the aforesaid Interest free loan, the Company is receiving the Loan amount as stipulated.

(d) In respect of the aforesaid Loan, there is no specific terms for repayment of loan.

(iv) In our opinion, the Company has an adequate internal control procedure commensurate with the size of the Company and nature of its business for the purchase of inventory and fixed assets and for the sale of goods.

(v) (a) according to the information and explanation given to us, based on the disclosure of interest made by the directors of the Company, transactions that need to be entered into a register in pursuance of section 301 of the Act have been so entered.

(b) In our opinion and according to the information and explanations given to us, in respect of the transactions made in pursuance of contracts or arrangement entered in the registers maintained under section 301, the rates at which such services are rendered are reasonable having regard to the prevailing market prices of such services and the commission paid to other parties.

(vi) The Company has not accepted any deposits from the public to which the directives issued by the Reserve Bank of India and the provisions of section 58A and 58AA of the Act and the rules framed there under are applicable,

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

(viii) The Central Government has not prescribed maintenance of cost records under section 209(1 )(d) of the Act for any of the activities of the Company.

(ix) According to the information and explanations given to us, the Company is generally regular in depositing undisputed statutory dues including,, Income Tax. Sales Tax, RTO Tax etc. and any other statutory dues with the appropriate authorities. Except Service Tax Dues as at March, 31st 2010 for a period exceeding six months from the date they became payable has been accounted for on accrual basis and has been provided for appropriately.

(x) The Company''s accumulated losses at the end of the financial year exceeding 50 % of its net worth The company does not incurred cash losses during the financial year and in the Financial year immediately preceding such financial year.

(xi) On the basis of our examination and according to the information and explanation given to us, the Company has not defaulted in repayment of the dues to financial institutions and Banks with respect to its borrowing.

(xii) According to the information and explanation given to us, the Company has not granted any loans and advances on the basis of security by way of pledge of shares.

(xiii) Provision for special statute applicable to chit fund, Nidhi, Mutual Benefit Fund/ Societies are not applicable to the Company.

(xiv) According to information and explanation given to us, the Company is not dealing or trading in shares, securities, debentures and other investments.

(xv) According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others to banks or financial institution.

(xvi) The Company has obtained H.P. Vehicle Loan from Banks and Financial Institution, which has been utilized for the purpose for which it was obtained.

(xvii) On the basis of our examination and according to the information and explanation given to us, there are no funds raised on a short term basis which are used for long term investment, and vice versa.

(xviii) The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act During the Year

(xix) The Company has not issued debentures. Accordingly, we have no comments.

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

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

FOR B.H.ADVANI & ASSOCIATES

CHARTERED ACCOUNTANTS

Sd/-

(B.H.ADVANI)

SOLE PROPRITOR

PLACE : JUNAGADH MEMBERSHIP NO. 102464

DATE : 10/8/2010 PAN : ABLPA7421R

 
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