Auditor Report of Mukat Pipes Ltd.

Mar 31, 2014

We have audited the accompanying financial statements of Mukat Pipes Limited (the Company) which comprises the Balance Sheet as at March 31, 2014, the statement of Profit and Loss and the Cash Flow Statement for the year then ended, and notes to the financial statements comprising of 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 13 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.

Auditor''s Responsibility

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

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the 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 Companies Act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

(a) In the case of the Balance Sheet, of the state of affairs of the Company as at March 31,2014;

(b) In the case of the statement of Profit and Loss, of the loss 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) as amended, issued by the Central Government of India in terms of section 227(4A) of the Companies Act, 1956 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 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 notified under the Act read with the General Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013.

e. On the basis of written representations received from the directors as on March 31,2014, and taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 31, 2014, from being appointed as a director in terms of Section 274(1)(g) of the Companies Act, 1956.

Annexure

Referred to in paragraph under the heading of "report on other legal & regulatory requirements" of our report of even date.

(I) In respect of its fixed assets:

(a) The Company is in the process of updating records showing full particulars including quantitative details and situation of fixed assets.

(b) All the fixed assets have not been physically verified by the management during the year but there is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies were stated to be noticed on such verification.

(ii) In respect of its inventory:

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

(b) The procedure of physical verification of inventories followed by the management is reasonable and adequate in relation to the size of the company and the nature of its business.

(c) The company maintains proper records of inventory. The discrepancies noticed on verification between the physical stock and the book records were not material.

(iii)

(a) According to the information and explanations given to us, the company has not granted any loan, secured or unsecured to companies, firms and other parties covered in the register maintained under Section 301 of the companies Act, 1956 (hereinafter referred to as the Act).

(b) The parties have, barring a few cases, repaid the principal amount as stipulated and have been regular in the payment of interest, if stipulated.

(c) According to the information and explanations given to us, the terms and conditions of secured/unsecured loans taken by the company from companies, firms or other parties concerned in the register maintained under prejudicial to the interest of the company. The maximum amount involved during the year was Rs. 6.19 Crores and the year end balance of loans taken from such parties was Rs. 6.11 Crores.

(d) There is no overdue amount of loans taken from or granted to companies, firms or other parties listed in the register maintained under section 301 of the Companies Act. 1956.

(iv) In our opinion and according to the information and explanation given to us, there is adequate internal control procedure, commensurate with the size of the company and the nature of its business with regards to purchase of inventory, fixed assets and with regard to the sale of goods. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control procedure. However, they are required to be strengthened.

(v)

(a) According to the information and explanations given to us, we are of the opinion that the transactions that need to be entered into the register maintained under section 301 of the Companies Act, 1956 are in the process of being updated.

(b) In our opinion and according to the information and explanation given to us, the transactions made in pursuance of contracts or arrangements to be entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of rupees five lakhs in respect of any party during the year have been made at prices which are prima facie reasonable having regard to prevailing market prices at the relevant time.

(vi) In our opinion and according to the information and explanations given to us, the company has not accepted any fixed deposit from the public.

(vii) The company has not appointed any external internal auditor.

(viii) We have broadly reviewed the books of account relating to materials, labour and other items of cost maintained by the company pursuant to the Rules made by the Central Government for the maintenance of cost records under section 209 (1) (d) of the Companies Act, 1956 and we are of the opinion that prima facie the account and records, though not in the prescribed format, have been maintained.

(ix) According to the information and explanation given to us and the records of the company examined by us in respect of statutory dues.

(a) The company is generally regular in depositing with appropriate authorities undisputed statutory dues of provident fund, employees'' state insurance, applicable to it. The amount of unpaid dividend due to be transferred to the investor education and protection fund is Rs. 12.13 Lacs.

(b) According to the information and explanations given to us, the undisputed amounts as at 31st March, 2014 which are outstanding for a period of more than six months from the date they became payable, in respect of Income Tax, Sales Tax & Wealth Tax, Customs duty and Excise Duty are NIL.

(c) According to the information given to us, there are no dues of customs duty, wealth tax and cess except for Income Tax, Excise Duty and Sales Tax, which are disputed.

(I) Income Tax Rs. 175.87 Lac Matter pending with Hon''ble BIFR

(ii) Excise Duty Rs.169.12 Lac Matter pending with Appellate Authorities

(iii) Sales Tax Rs. 126.32 Lac Matter pending with Hon''ble BIFR

(x) The company has incurred cash loss during the year and the accumulated losses of the company are more than 50% of its net worth. The company is already registered with BIFR for rehabilitation and reconstruction.

(xi) The company has settled/repaid its dues outstanding with banks and financial institutions under the OTS approved by them.

(xii) The company has not granted loans advances on the basis of security by way of pledge of shares, debentures and other securities.

(xiii) In our opinion, the company is not a chit fund or a nidhi/mutual benefit fund/ society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditor''s Reports) order, 2003 are not applicable to the company.

(xiv) In our opinion, the company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the companies (Auditor''s Reports) Order, 2003 are not applicable to the company.

(xv) According to the information and explanation given to us the company has not given any guarantee during the year for loans taken by others from banks or financial institutions.

(xvi) In our opinion and according to the information and explanation given to us the Term Loan taken during the year has been applied for the purpose for which that was obtained.

(xvii) According to the information and explanations given to us and on an overall examination of the balance sheet of the of the company, we report that no funds raised on short- term basis have been used for long term investment.

(xviii) According to the information and explanations given to us, the company has not made preferential allotment of shares to parties and companies covered in the register to be maintained under section 301 of the Act.

(xix) According to the information and explanation given to us, during the period covered by our audit, the company has not issued any debentures or created security in respect of debentures.

(xx) According to the information and explanations given to us, no fraud in the company has been reported during the course of our audit.

(xxi) No money was raised by public issue by the Company during the year.

Place: Rajpura For R.P. BHAMBRI & CO., Date : 28-05-2014 CHARTERED ACCOUNTANTS (Firm Registration No.001312N)

(RANJIT PARKASH) Proprietor M.No. 080084

---

Mar 31, 2013

1. We have audited the attached balance sheet of Mukat Pipes Ltd; as at 31st March 2013 and 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 the auditing standards generally accepted in India. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditor''s Report) order, 2003 (CARO) issued by the Central Government of India in terms of sub- section (4A) of section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said order.

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

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

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

(iii) The balance sheet, profit and loss account and cash flow statement, dealt with by this report are in agreement with the books of account;

(iv) In our opinion, the balance sheet and profit and loss account and cash flow statement dealt with by this report comply with the accounting standards referred in sub- section (3C) of section 211 of the Companies Act, 1956; except As-22.

(v) On the basis of written representations received from the directors, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March 2013 from being appointed as a director in terms of section 274 (1)(g) of the Companies Act, 1956;

(vi) In our opinion and to the best of our information and according to the explanation given to us, the said accounts read with notes to the accounts subject to the following:-

(i) Non availability of documents relating to transactions of Baramati Unit as mentioned in Note No. 30 impact of which on profit and loss account and Balance Sheet is not ascertainable.

(ii) No confirmation letters have been obtained as a result variance if any and its impact on profit/loss and reserves is not ascertainable. give the information required by the Companies Act,1956,in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India.

(a) in the case of the balance sheet, of the state of affairs of the company as at 31st March 2013

(b) in the case of profit and loss account, of the loss for the year ended on that date.

(c) In the case of the cash flow statement of the cash flow of the company for the year ended on that date.

Annexure

Referred to in paragraph 3 of our report of even date,

(i) In respect of its fixed assets:

(a) The Company is in the process of updating records showing full particulars including quantitative details and situation of fixed assets.

(b) All the fixed assets have not been physically verified by the management during the year but there is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies were stated to be noticed on such verification.

(ii) In respect of its inventory:

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

(b) 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.

(c) The company maintains proper records of inventory. The discrepancies noticed on verification between the physical stock and the book records were not material.

(iii)

(a) According to the information and explanations given to us, the company has not granted any loan, secured or unsecured to companies, firms and other parties covered in the register maintained under Section 301 of the companies Act, 1956 (hereinafter referred to as the Act).

(b) The parties have, barring a few cases, repaid the principal amount as stipulated and have been regular in the payment of interest, if stipulated.

(c) According to the information and explanations given to us, the terms and conditions of secured/unsecured loans taken by the company from companies, firms or other parties concerned in the register maintained under prejudicial to the interest of the company. The maximum amount involved during the year was Rs. 6.24 Crores and the year end balance of loans taken from such parties was Rs. 6.19 Crores.

(d) There is no overdue amount of loans taken from or granted to companies, firms or other parties listed in the register maintained under section 301 of the Companies Act. 1956.

(iv) In our opinion and according to the information and explanation given to us, there is adequate internal control procedure, commensurate with the size of the company and the nature of its business with regards to purchase of inventory, fixed assets and with regard to the sale of goods. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control procedure. However, they are required to be strengthened.

(v)

(a) According to the information and explanations given to us, we are of the opinion that the transactions that need to be entered into the register maintained under section 301 of the Companies Act, 1956 are in the process of being updated.

(b) In our opinion and according to the information and explanation given to us, the transactions made in pursuance of contracts or arrangements to be entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of rupees five lakhs in respect of any party during the year have been made at prices which are prima facie reasonable having regard to prevailing market prices at the relevant time.

(vi) In our opinion and according to the information and explanations given to us, the company has not accepted any fixed deposit from the public.

(vii) The company has not appointed any external internal auditor.

(viii) We have broadly reviewed the books of account relating to materials, labour and other items of cost maintained by the company pursuant to the Rules made by the Central Government for the maintenance of cost records under section 209 (1) (d) of the Companies Act, 1956 and we are of the opinion that prima facie the account and records, though not in the prescribed format, have been maintained.

(ix) According to the information and explanation given to us and the records of the company examined by us in respect of statutory dues. (a) The company is generally regular in depositing with appropriate authorities undisputed statutory dues of provident fund, employees'' state insurance, applicable to it. The amount of unpaid dividend due to be transferred to the investor education and protection fund is Rs. 12.13 Lacs.

(b) According to the information and explanations given to us, the undisputed amounts as at 31st March, 2013 which are outstanding for a period of more than six months from the date they became payable, in respect of Income Tax, Sales Tax & Wealth Tax, Customs duty and Excise Duty are NIL.

(c) According to the information given to us, there are no dues of customs duty, wealth tax and cess except for Income Tax, Excise Duty and Sales Tax, which are disputed.

(I) Income Tax Rs. 206.79 Lac Matter pending with Hon''ble BIFR

(ii) Excise Duty Rs.136.55 Lac Matter pending with Appellate Authorities & Hon''ble BIFR

(iii) Sales Tax Rs. 126.32 Lac Matter pending with Hon''ble BIFR

(x) The company has incurred cash loss during the year and the accumulated losses of the company are more than 50% of its net worth. The company is already registered with BIFR for rehabilitation and reconstruction.

(xi) The company has settled/repaid its dues outstanding with banks and financial institutions under the OTS approved by them.

(xii) The company has not granted loans advances on the basis of security by way of pledge of shares, debentures and other securities.

(xiii) In our opinion, the company is not a chit fund or a nidhi/ mutual benefit fund/ society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditor''s Reports) order, 2003 are not applicable to the company.

(xiv) In our opinion, the company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the companies (Auditor''s Reports) Order, 2003 are not applicable to the company.

(xv) According to the information and explanation given to us the company has not given any guarantee during the year for loans taken by others from banks or financial institutions.

(xvi) In our opinion and according to the information and explanation given to us the Term Loan taken during the year has been applied for the purpose for which that was obtained.

(xvii) According to the information and explanations given to us and on an overall examination of the balance sheet of the company, we report that no funds raised on short- term basis have been used for long term investment.

(xviii) According to the information and explanations given to us, the company has not made preferential allotment of shares to parties and companies covered in the register to be maintained under section 301 of the Act.

(xix) According to the information and explanation given to us, during the period covered by our audit, the company has not issued any debentures or created security in respect of debentures.

(xx) According to the information and explanations given to us, no fraud in the company has been reported during the course of our audit.

(xxi) No money was raised by public issue by the Company during the year.

Place: Patiala For R.P. BHAMBRI & CO.,

Date : 23-05-2013 CHARTERED ACCOUNTANTS

(Firm Registration No.001312N)

(RANJIT PARKASH)

Proprietor

M. No. 080084

---

Mar 31, 2012

1. We have audited the attached balance sheet of Mukat Pipes Ltd; as at 31st March 2012 and 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 the auditing standards generally accepted in India. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditor's Report) order, 2003 (CARO) issued by the Central Government of India in terms of sub- section (4A) of section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said order.

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

(i) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit; (ii) In our opinion, proper books of accounts as required by law have been kept by the company so far as appears from our examination of those books; (iii) The balance sheet, profit and loss account and cash flow statement, dealt with by this report are in agreement with the books of account;

iv) In our opinion, the balance sheet and profit and loss account and cash flow statement dealt with by this report comply with the accounting standards referred in sub- section (3C) of section 211 of the Companies Act, 1956; except As-22.

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

(vi) In our opinion and to the best of our information and according to the explanation given to us, the said accounts read with notes to the accounts subject to the following:- (I) Non availability of documents relating to transactions of Baramati Unit as mentioned in Note No. 34 impact of which on profit and loss account and Balance Sheet is not ascertainable.

(ii) No confirmation letters have been obtained as a result variance if any and its impact on profit/loss and reserves is not ascertainable. give the information required by the Companies Act,1956,in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India.

(a) in the case of the balance sheet, of the state of affairs of the company as at 31st March 2012

(b) in the case of profit and loss account, of the Profit for the year ended on that date.

(c) In the case of the cash flow statement of the cash flow of the company for the year ended on that date.

Annexure

Referred to in paragraph 3 of our report of even date,

(I) 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) All the fixed assets have not been physically verified by the management during the year but there is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies were stated to be noticed on such verification.

(ii) In respect of its inventory:

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

(b) 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.

(c) The company maintains proper records of inventory. The discrepancies noticed on verification between the physical stock and the book records were not material.

(iii)

(a) According to the information and explanations given to us, the company has not granted any loan, secured or unsecured to companies, firms and other parties covered in the register maintained under Section 301 of the companies Act, 1956 (hereinafter referred to as the Act).

(b) The parties have, barring a few cases, repaid the principal amount as stipulated and have been regular in the payment of interest, if stipulated.

(c) According to the information and explanations given to us, the terms and conditions of secured/unsecured loans taken by the company from companies, firms or other parties concerned in the register maintained under prejudicial to the interest of the company. The maximum amount involved during the year was Rs. 6.24 Crores and the year end balance of loans taken from such parties was Rs. 6.24 Crores.

(d) There is no overdue amount of loans taken from or granted to companies, firms or other parties listed in the register maintained under section 301 of the Companies Act. 1956.

(iv) In our opinion and according to the information and explanation given to us, there is adequate internal control procedure, commensurate with the size of the company and the nature of its business with regards to purchase of inventory, fixed assets and with regard to the sale of goods. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control procedure. However, they are required to be strengthened.

(v)

(a) According to the information and explanations given to us, we are of the opinion that the transactions that need to be entered into the register maintained under section 301 of the Companies Act, 1956 are in the process of being updated.

(b) In our opinion and according to the information and explanation given to us, the transactions made in pursuance of contracts or arrangements to be entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of rupees five lakhs in respect of any party during the year have been made at prices which are prima facie reasonable having regard to prevailing market prices at the relevant time.

(vi) In our opinion and according to the information and explanations given to us, the company has not accepted any fixed deposit from the public. (vii) The company has not appointed any external internal auditor, however, it has employed professionals who undertake internal audit.

(viii) We have broadly reviewed the books of account relating to materials, labour and other items of cost maintained by the company pursuant to the Rules made by the Central Government for the maintenance of cost records under section 209 (1) (d) of the Companies Act, 1956 and we are of the opinion that prima facie the account and records, though not in the prescribed format, have been maintained.

(ix) According to the information and explanation given to us and the records of the company examined by us in respect of statutory dues. (a) The company is generally regular in depositing with appropriate authorities undisputed statutory dues of provident fund, employees' state insurance, applicable to it. The amount of unpaid dividend due to be transferred to the investor education and protection fund is Rs. 12.13 Lacs.

(b) According to the information and explanations given to us, the undisputed amounts as at 31st March, 2012 which are outstanding for a period of more than six months from the date they became payable, in respect of Income Tax, Sales Tax & Wealth Tax, Customs duty and Excise Duty are NIL.

(c) According to the information given to us, there are no dues of customs duty, wealth tax and cess except for Income Tax, Excise Duty and Sales Tax, which are disputed.

(I) Income Tax Rs. 255.16 Lac Matter pending with Appellate Authorities

(ii) Excise Duty Rs.136.55 Lac Matter pending with Appellate Authorities

(iii) Sales Tax Rs. 126.32 Lac Matter pending with Appellate Authorities

(x) Although the company has not incurred any cash loss during the year but still the accumulated losses of the company are more than 50% of its net worth. The company is already registered with BIFR for rehabilitation and reconstruction. (xi) The company has settled/repaid its dues outstanding with banks and financial institutions under the OTS approved by them.

(xii) The company has not granted loans advances on the basis of security by way of pledge of shares, debentures and other securities. (xiii) In our opinion, the company is not a chit fund or a nidhi/ mutual benefit fund/ society. Therefore, the provisions of clause 4

(xiii) of the Companies (Auditor's Reports) order, 2003 are not applicable to the company.

(xiv) In our opinion, the company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the companies (Auditor's Reports) Order, 2003 are not applicable to the company. (xv) According to the information and explanation given to us the company has not given any guarantee during the year for loans taken by others from banks or financial institutions.

(xvi) In our opinion and according to the information and explanation given to us the Term Loan taken during the year has been applied for the purpose for which that was obtained.

(xvii) According to the information and explanations given to us and on an overall examination of the balance sheet of the of the company, we report that no funds raised on short- term basis have been used for long term investment.

(xviii)According to the information and explanations given to us, the company has not made preferential allotment of shares to parties and companies covered in the register to be maintained under section 301 of the Act.

(xix) According to the information and explanation given to us, during the period covered by our audit, the company has not issued any debentures or created security in respect of debentures. (xx) According to the information and explanations given to us, no fraud in the company has been reported during the course of our audit.

(xxi) No money was raised by public issue by the Company during the year.

Place: Patiala For R.P. BHAMBRI & CO.,

Date : 28-05-2012 CHARTERED ACCOUNTANTS

(Firm Registration No.001312N)

(RANJIT PARKASH)

Proprietor

M. No. 80084