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Auditor Report of Mangalam Ventures Ltd. Company
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Auditor Report of Mangalam Ventures Ltd.

Mar 31, 2014

We have audited the accompanying financial statements of Mangalam Ventures Limited (''the Company'') 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 significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ("The Act") read with general circular 15/2013 dated 13th Septmber, 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 responsibilty includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor''s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Standard 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 judgements, including the assessment of the risks of material misstatements, whether due to fraud or error. In making those risks 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 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 accounting principles generally accepted in India:

i) In the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2014,

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

iii) 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") as amended, issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and

5 of the Order.

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

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

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

c) The Balance Sheet, Statement of Profit & 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

6 Loss and Cash Flow Statement comply with the Accounting Standards notified under the Act read with general circular 15/2013 dated 13th Septmber, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013; and

e) On the basis of written representations received from the directors as on 31st March, 2014 and 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 Companies Act, 1956.

ANNEXURE REFERRED TO THE AUDITOR''S REPORT OF EVEN DATE

1. In respect of its fixed assets :

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

b) As explained to us, the fixed assets have been physically verified by the Management at regular intervals in accordance with a phased programme of verification adopted by the Company, which in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. According to the information and explanations given to us, no material discrepancies were noticed on such verification however the same have been adjusted in the books of account.

c) The fixed assets disposed off during the year, in our opinion, do not constitute a substantial part of the fixed assets of the Company and such disposal has, in our opinion, not affected the going concern status of the Company.

2. In respect of its inventories :

a) As explained to us, inventories have been physically verified during the year by the Management at reasonable intervals except for inventories lying with outside parties, which have, however, been confirmed by them.

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

c) In our opinion and 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 such physical verification however the same have been properly dealt with in the books of accounts.

3. The Company has neither granted nor taken any loans, secured or unsecured to / from Companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956.

4. In our opinion and according to the information and explanations given to us, there is adequate internal control system commensurate with the size of the Company and the nature of its business, for the purchase of inventory and fixed assets and for the sale of goods.

5. In our opinion, and to the best of our knowledge and belief and according to the information and explanations given to us, there are no transactions which are required to be entered in the registers maintained under Section 301 of the Companies Act, 1956.

6. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public and consequently, the provisions of Section 58A, 58AA or any other relevant provisions of the Companies Act, .1956 and the Rules framed thereunder and the directives issued by the Reserve Bank of India are not applicable.

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

8. According to the information and explanations given to us, the Central Government has prescribed maintenance of cost records under section 209(1 )(d) of the Companies Act, 1956 in respect of certain manufacturing activities of the Company. We have broadly reviewed the accounts and records of the Company in this connection and are of the opinion, that prima facie, the prescribed accounts and records have been made and maintained. We have not, however, carried out a detailed examination of the same.

9. In respect of statutory dues :

a) According to the records of the Company, it has been regular in depositing undisputed statutory dues including provident fund, employees'' state insurance, investor education and protection fund, income tax, sales tax, wealth tax, service tax, customs duty, excise duty and other statutory dues with the appropriate authorities during the year. According to the information and explanations given to us, no undisputed amounts payable in respect of aforesaid dues were outstanding as at 31st March, 2014 for a period of more than six months from the date of becoming payable.

b) The disputed statutory dues aggregating to Rs. 9.81 lacs that have not been deposited on account of matters pending before appropriate authorities are as under:

Name of Nature of Disputed Forum where Statute Dues Amount dispute is (Rs. in lacs) Pending

HLADT Interest on 527 Sales Tax Tribunal Act 2000 Entry Tax Chandigarh

CEA, 1944 Interest on 4.54 CESTAT Excise Duty New Delhi

10. The Company has no accumulated losses as at the end of the financial year and the Company has not incurred any cash losses during the current and in the immediately preceding financial year.

11. Based on our audit procedure and on the basis of the information and explanations given by the Management, we are of the opinion that the Company has not defaulted in the repayment of dues to financial institutions and banks. The Company does not have any borrowings by way of debentures.

12. In our opinion and according to the information and explanations given to us, no loans and advances have been granted by the Company on the basis of security by way of pledge of shares, debentures and other securities.

13. In our opinion, the Company is not a chit fund or a nidhi / mutual benefit fund / society. Therefore, clause 4 (xiii) of the Companies (Auditors'' Report) Order, 2003 is not applicable to the Company.

14. In our opinion and according to the information and explanations given to us, the Company has not dealt or traded in shares, securities, debentures and other investments. However in respect of its investments the company has maintained proper records of the transactions and contents as well as timely entries have been made there in.These investments have been held by the Company in its own name.

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

16. On the basis of records examined by us, we have to state that, the Company has not taken any term loan during the year.

17. Acccording to the Cash Flow Statement and other records examined by us and the information and explanations given to us, on an overall examination of the financial statements of the Company, we are of the opinion that, funds raised on short term basis have prima facie not been used during the year for long term investment.

18. The Company has not made any preferential allotment of shares during the year.

19. No debentures have been issued by the Company during the year.

20. The Company has not raised any money by way of public issue during the year.

21. During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted accounting practices in India, and according to the information and explanation given to us, we have neither come across any instances of fraud on or by the Company, noticed or reported during the year nor have we been informed of such case by the management.

For BANSAL & ASSOCIATES Chartered Accountants (Firm Registration No. 100985 W)

Sd/- Place : Faridabad S.K. BANSAL Dated : 9th August, 2014 (Proprietor) Membership No. 012288


Mar 31, 2012

1. We have audited the attached Balance Sheet of Mangalam Ventures Limited (Formerly Sonia Textiles Limited) as at 31st March, 2012, the Statement of Profit and Loss and the Cash Flow Statement of the Company for the year on that date, both annexed thereto (together referred to as 'financial statements'). 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 mis-statement. 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 statements presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors' Report) Order, 2003 {as amended by the Companies (Auditors's Report) (Amendment) Order, 2004} issued by the Government of India in terms of sub-section 4A of Section 227 of the Companies Act, 1956 we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

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

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

b) In our opinion, proper books of accounts as required by law have been kept by the Company so far as appears from our examination of 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 dealt with by this report comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956;

e) On the basis of the written representations received from the Directors, as on 31st March, 2012 taken on record by the Board of Directors, we report that none of the Directors is disqualified as on 31s1 March, 2012 from being appointed as a Director in terms of clause (g) of sub section (1) of Section 274 of the Companies Act, 1956;

f) In our opinion and to the best of our information and according to the explanations given to us, the said account read together with the significant accounting policies and other notes thereon give the information required by the Companies Act, 1956, in the manner so required and give true and fair view in conformity with the accounting principles generally accepted in India;

i) In the case of the Balance Sheet, of the state of affairs of the Company as at 31s1 March, 2012,

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

iii) In the case of the Cash Flow Statement, of the cash flows of the Company for the year ended on that date.

1 In respect of its fixed assets :

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

b) As explained to us, the fixed assets have been physically verified by the Management at regular intervals in accordance with a phased programme of verification adopted by the Company, which in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. According to the information and explanations given to us, no material discrepancies were noticed on such verification however the same have been adjusted in the books of account.

c) The fixed assets disposed off during the year, in our opinion, do not constitute a substantial part of the fixed assets of the Company and such disposal has , in our opinion, not affected the going concern status of the Company.

2. In respect of its inventories :

a) As explained to us, inventories have been physically verified during the year by the Management at reasonable intervals except for inventories lying with outside parties, which have, however, been confirmed by them

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

c) In our opinion and 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 such physical verification however the same have been properly dealt with in the books of accounts.

3. The Company has neither granted nor taken any loans, secured or unsecured to / from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956.

4 In our opinion and according to the information and explanations given to us, there is adequate internal control system commensurate with the size of the Company and the nature of its business, for the purchase of inventory and fixed assets and for the sale of goods.

5. In our opinion, and to the best of our knowledge and belief and according to the information and explanations given to us, there are no transactions which are required to be entered in the registers maintained under Section 301 of the Companies Act, 1956.

6. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public and consequently, the provisions of Section 58A, 58AA or any other relevant provisions of the Companies Act, 1956 and the Rules framed thereunder and the directives issued by the Reserve Bank of India are not applicable.

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

8. According to the information and explanations given to us,the Central Government has prescribed maintenance of cost records under section 209(1 )(d) of the Companies Act, 1956 in respect of certain manufacturing activities of the Company. We have broadly reviewed the accounts and records of the Company in this connection and are of the opinion, that prima facie, the prescribed accounts and records have been made and maintained We have not, however, carried out a detailed examination of the same.

9. In respect of statutory dues :

a) According to the records of the Company, it has been regular in depositing undisputed statutory dues including provident fund, employees' state insurance, investor education and protection fund, income tax, sales tax, wealth tax, service tax, customs duty, excise duty and other statutory dues with the appropriate authorities during the year. According to the information and explanations given to us, no undisputed amounts payable in respect of aforesaid dues were outstanding as at 31st March, 2012 for a period of more than six months from the date of becoming payable.

b) The disputed statutory dues aggregating to Rs 9.81 lacs that have not been deposited on account of matters pending before appropriate ' authorities are as under:

Name of Nature of Disputed Forum where Statute Dues Amount dispute is (Rs.in lacs) Pending

HLADT Interest on 5.27 Sales Tax Tribunal Act 2000 Entry Tax Chandigarh

CEA, 1944 Interest on 4.54 CESTAT Excise Duty New Delhi

10 The Company has no accumulated losses as at the end of the financial year and the Company has not incurred any cash losses during the current and in the immediately preceding financial year.

11. Based on our audit procedure and on the basis of the information and explanations given by the Management, we are of the opinion that the Company has not defaulted in the repayment of dues to financial institutions and banks. The Company does not have any borrowings by way of debentures

12. In our opinion and according to the information and explanations given to us, no loans and advances have been granted by the Company on the basis of security by way of pledge of shares, debentures and other securities.

13. In our opinion, the Company is not a chit fund or a nidhi / mutual benefit fund / society. Therefore, clause 4 (xiii) of the Companies (Auditors' Report) Order, 2003 is not applicable to the Company.

14 In our opinion and according to the information and explanations given to us, the Company has not dealt, or traded in shares, securities, debentures and other investments However in respect of its investments the company has maintained proper records of the transactions and contents as well as timely entries have been made therein.These investments have been held by the Company in its own name.

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

16 On the basis of records examined by us, we have to state that, the Company has prima facie, applied the term loans for the purpose for which these were obtained.

17. According to the Cash Flow Statement and other records examined by us and the information and explanations given to us, on an overall examination of the financial statements of the Company, we are of the opinion that, funds raised on short term basis have prima facie not been used during the year for long term investment.

18. The Company has not made any preferential allotment of shares during the year

19. No debentures have been issued by the Company during the year.

20. The Company has not raised any money by way of public issue during the year.

21. During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted accounting practices in India, and according to the information and explanation given to us, we have neither come across any instances of fraud on or by the Company, noticed or reported during the year nor have we been informed of such case by the management.

For BANSAL & ASSOCIATES

Chartered Accountants

(Firm Registration No. 100985 W)

Place . New Delhi S.K. BANSAL

Dated : 11th August, 2012 Proprietor

Membership No. 012288


Mar 31, 2011

1. We have audited the attached Balance Sheet of Mangalam Ventures Limited (Formerly Sonia Textiles Limited) as at 31st March, 2011 and also the Profit and Loss Account and the Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material mis-statement. 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 statements presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors' Report) Order, 2003 {as amended by the Companies (Auditors's Report) (Amendment) Order, 2004} issued by the Government of India in terms of sub-section 4A of Section 227 of the Companies Act, 1956 we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

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

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

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

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

d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956;

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

f) In our opinion and to the best of our information and according to the explanations given to us, the said account read together with the significant accounting policies and other notes thereon give the information required by the Companies Act, 1956, in the manner so required and give true and fair view in conformity with the accounting principles generally accepted in India;

i) In the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2011,

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

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

ANNEXURE REFERRED TO IN PARAGRAPH (3) OF THE AUDITOR'S REPORT OF EVEN DATE

1 In respect of its fixed assets :

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

b) As explained to us, the fixed assets have been physically verified by the Management at regular intervals in accordance with a phased programme of verification adopted by the Company, which in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. According to the information and explanations given to us, no material discrepancies were noticed on such verification however the same have been adjusted in the books of account.

c) The Company has not disposed off any substantial part of its fixed assets so as to affect its going concern.

2 In respect of its inventories :

a) As explained to us, inventories have been physically verified during the year by the Management at reasonable intervals except for inventories lying with outside parties, which have, however, been confirmed by them.

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

c) In our opinion and 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 such physical verification however the same have been properly dealt with in the books of accounts.

3 The Company has neither granted nor taken any loans, secured or unsecured to / from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956.

4. In our opinion and according to the information and explanations given to us, there is adequate internal control system commensurate with the size of the Company and the nature of its business, for the purchase of inventory and fixed assets and for the sale of goods.

5 In our opinion, and to the best of our knowledge and belief and according to the information and explanations given to us, there are no transactions which are required to be entered in the registers maintained under Section 301 of the Companies Act, 1956.

6. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public and consequently, the provisions of Section 58A, 58AA or any other relevant provisions of the Companies Act,-1956 and the Rules framed thereunder and the directives issued by the Reserve Bank of India are not applicable.

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

8 In our opinion and according to the information and explanations given to us, the Central Government has not prescribed the maintenance of cost records under clause (d) of sub-section (1) of Section 209 of the Companies Act, 1956, in respect of any of the products of the Company.

9 In respect of statutory dues :

a) According to the records of the Company, it has been regular in depositing undisputed statutory dues including provident fund, employees' state insurance, investor education and protection fund, income tax, sales tax, wealth tax, service tax, customs duty, excise duty and other statutory dues with the appropriate authorities during the year. According to the information and explanations given to us, no undisputed amounts payable in respect of aforesaid dues were outstanding as at 31s! March, 2011 for a period of more than six months from the date of becoming payable.

b) The disputed statutory dues aggregating to Rs. 9.81 lacs that have not been deposited on account of matters pending before appropriate authorities are as under.

Name of Nature of Disputed Forum where

Statute Dues Amount dispute is

(Rs. in lacs) Pending

HLADT Interest on 527 Sales Tax Tribunal

Act 2000 Entry Tax Chandigarh

CEA, 1944 Interest on 454 CESTAT

Excise Duty New Delhi

10. The Company has no accumulated losses as at the end of the financial year and the Company has not incurred any cash losses during the current and in the immediately preceding financial year.

11 Based on our audit procedure and on the basis of the information and explanations given by the Management, we are of the opinion that the Company has not defaulted in the repayment of dues to financial institutions and banks. The Company does not have a;iy borrowings by way of debentures.

12. In our opinion and according to the information and explanations given to us, no loans and advances have been granted by the Company on the basis of security by way of pledge of shares, debentures and other securities.

13 In our opinion, the Company is not a chit fund or a mdhi / mutual benefit fund / society. Therefore, clause 4 (xiii) of the Companies (Auditors' Report) Order, 2003 is not applicable to the Company

14 In our opinion and according to the information and explanations given to us. the Company has not dealt or traded in shares, securities, debentures and other investments. However in respect of its investments the company has maintained proper records of the transactions and contents as well as timely entries have been made therein These investments have been held by the Company in its own name

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

16. On the basis of records examined by us, we have to state that, the Company nas prima facie, applied the term loans for the purpose for which these were obtained.

17 Acccording to the Cash Flow Statement and other records examined by us and the information and explanations given to us, on an overall examination of the financial statements of the Company, we are of the opinion that, funds raised on short term basis have prima facie not been used during the year for long term investment.

18. The Company has not made any preferential allotment of shares during the year.

19. No debentures have been issued by the Company during the year

20. The Company has not raised any money by way of public issue during the year.

21 During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted accounting practices in India, and according to the information and explanation given to us, we have neither come across any instances of fraud on or by the Company, noticed or reported during the year nor have we been informed of such case by the management.

For BANSAL & ASSOCIATES

Chartered Accountants (Firm Registration No. 100985 W)

Place : New Delhi S.K. BANSAL

Dated : 20th August, 2011 Proprietor

Membership No. 12288


Mar 31, 2010

1. We have audited the attached Balance Sheet of Mangalam Ventures Limited (Formerly Sonia Textiles Limited) as at 31st March, 2010 and also the Profit and Loss Account and the Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Companys 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 mis-statement. 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 statements presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors Report) Order, 2003 {as amended by the Companies (Auditorss Report) (Amendment) Order, 2004} issued by the Government of India in terms of sub-section 4A of Section 227 of the Companies Act, 1956 we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

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

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

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

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

d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956;

e) On the basis of the written representations received from the Directors, as on 31st March, 2010 taken on record by the Board of Directors, we report that none of the Directors is disqualified as on 31st March, 2010 from being appointed as a Director in terms of clause (g) of sub section (1) of Section 274 of the Companies Act, 1956;

f) In our opinion and to the best of our information and according to the explanations given to us, the said account read together with the significant accounting policies and other notes thereon give the information required by the Companies Act, 1956, in the manner so required and give true and fair view in confirmity with the accounting principles generally accepted in India;

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

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

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

ANNEXURE REFERRED TO IN PARAGRAPH (3) OF THE AUDITORS REPORT OF EVEN DATE

1. In respect of its fixed assets :

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

b) As explained to us, the fixed assets have been physically verified by the Management at regular intervals in accordance with a phased programme of verification adopted by the Company, which in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. According to the information and explanations given to us, no material discrepancies were noticed on such verification however the same have been adjusted in the books of account.

c) The Company has not disposed off any substantial part of its fixed assets so as to affect its going concern.

2. In respect of its inventories :

a) As explained to us, inventories have been physically verified during the year by the Management at reasonable intervals except for inventories lying with outside parties, which have, however, been confirmed by them.

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

c) In our opinion and 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 such physical verification however the same have been properly dealt with in the books of accounts.

3. The Company has neither granted nor taken any loans, secured or unsecured to / from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956.

4. In our opinion and according to the information and explanations given to us, there is adequate internal control system commensurate with the size of the Company and the nature of its business, for the purchase of inventory and fixed assets and for the sale of goods.

5. In our opinion, and to the best of our knowledge and belief and according to the information and explanations given to us, there are no transactions which are required to be entered in the registers maintained under Section 301 of the Companies Act, 1956.

6. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public and consequently, the provisions of Section 58A, 58AA or any other relevant provisions of the Companies Act, 1956 and the Rules framed thereunder and the directives issued by the Reserve Bank of India are not applicable.

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

8. In our opinion and according to the information and explanations given to us, the Central Government has not prescribed the maintenance of cost records under clause (d) of sub-section (1) of Section 209 of the Companies Act, 1956, in respect of any of the products of the Company.

9. In respect of statutory dues :

a) According to the records of the Company, it has been regular in depositing undisputed statutory dues including provident fund, employees state insurance, investor education and protection fund, income tax, sales tax, wealth tax, service tax, customs duty, excise duty and other statutory dues with the appropriate authorities during the year. According to the information and explanations given to us, no undisputed amounts payable in respect of aforesaid dues were outstanding as at 31st March, 2010 for a period of more than six months from the date of becoming payable.

b) The disputed statutory dues aggregating to Rs. 9.81 lacs that have not been deposited on account of matters pending before appropriate authorities are as under:

Name of Nature of Disputed Forum where

Statute Dues Amount dispute is

(Rs. in lacs) Pending

HLADT Interest on 5.27 Sales Tax Tribunal Act 2000 Entry Tax Chandigarh

CEA, 1944 Interest on 4.54 CESTAT

Excise Duty New Delhi

10. The Company has no accumulated losses as at the end of the financial year and the Company has not incurred any cash losses during the current and in the immediately preceding financial year.

11. Based on our audit procedure and on the basis of the information and explanations given by the Management, we are of the opinion that the Company has not defaulted in the repayment of dues to financial institutions and banks. The Company does not have any borrowings by way of debentures.

12. In our opinion and according to the information and explanations given to us, no loans and advances have been granted by the Company on the basis of security by way of pledge of shares, debentures and other securities.

13. In our opinion, the Company is not a chit fund or a nidhi / mutual benefit fund / society. Therefore, clause 4 (xiii) of the Companies (Auditors Report) Order, 2003 is not applicable to the Company.

14. In our opinion and according to the information and explanations given to us, the Company has not dealt or traded in shares, securities, debentures and other investments. However in respect of its investments the company has maintained proper records of the transactions and contents as well as timely entries have been made therein . These investments have been held by the Company in its own name.

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

16. On the basis of records examined by us, we have to state that, the Company has prima facie, applied the term loans for the purpose for which these were obtained.

17. Acccording to the Cash Flow Statement and other records examined by us and the information and explanations given to us, on an overall examination of the financial statements of the Company, we are of the opinion that, funds raised on short term basis have prima facie not been used during the year for long term investment.

18. The Company has not made any preferential allotment of shares during the year.

19. No debentures have been issued by the Company during the year.

20. The Company has not raised any money by way of public issue during the year.

21. During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted accounting practices in India, and according to the information and explanation given to us, we have neither come across any instances of fraud on or by the Company, noticed or reported during the year nor have we been informed of such case by the management.



For BANSAL & ASSOCIATES

Chartered Accountants

(Firm Registration No. 100985 W)

Place : New Delhi S.K. BANSAL

Dated : 21st August, 2010 Proprietor

Membership No. 12288



 
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