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Auditor Report of MYNK1906 Industries India Ltd.

Mar 31, 2014

We have audited the accompanying financial statements of MYNK1906 INDUSTRIES INDIA LIMITED "the Company", which comprise the Balance Sheet as at March 31, 2014, the Statement of Profit and Loss and Cash flow statement for the year 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 and financial performance 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 the General Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. Auditor''s Responsibility:

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

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

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

Opinion:

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

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

(b) In the case of the Statement Profit and Loss, of the Profit for the year ended on that date; and

(c) In the case of the Cash Flow statement, of the cash flows for the year ended on that date. Report on Other Legal and Regulatory Requirements:

1. As required by the Companies (Auditors Report) order 2003 and as amended by the Companies (Auditor''s Report)(Amendment) Order 2004, issued by the Central Government of India in terms of the 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 and Statement of Profit and Loss dealt with by this Report are in agreement with the books of account.

d) In our opinion, the Balance Sheet and Statement of Profit and Loss comply with the Accounting Standards referred to in sub section (3C) of section 211 of the Companies Act, 1956 read with the General Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013; and

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

Annexure to the Auditors'' Report of even date to the members of MYNK1906 INDUSTRIES INDIA LIMITED, on the financial statements for the year ended March 31, 2014

Based on the audit procedures performed for the purpose of reporting a true and fair view on the financial statements of the Company and taking into consideration the information and explanations given to us and the books of account and other records examined by us in the normal course of audit, we report that:

I. (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 reasonable intervals and no material discrepancies between the book records and the physical inventory have been noticed on such verification.

(c) The Company has not disposed off substantial part of the Fixed Assets.

II. (a) The Inventory has been physically verified during the year and in our opinion, the frequency of verifications is reasonable

(b) In our opinion, the procedures of the physical verification of inventory followed by the Management are reasonable and adequate in relation of the size of the Company and the nature of its business. However company need to take some more procedures to improve inventory controls.

(d) The Company is maintaining proper records of inventory and as explained to us, there was no material discrepancies noticed on such verification of stocks as compared to book records.

III. (a) According to the information and explanations given to us and on the basis of Our examination of the books of account, the company has granted interest free loan to one parties covered in the Register maintained under section 301 of the Companies, Act 1956.

(b) In our opinion and according to the information and explanations given to us, the rate of interest and other terms and conditions of the loans given by Company, are not prima facie prejudicial to the interest of the Company except to extent interest free advance given to the directors of Company.

(c) As explained to us, principal amount and interests are also regular.

(d) In respect of the said loans and interest there on, there are no overdue amounts.

(e) According to the information and explanations given to us, the Company has received loan (interest free) from three parties covered in the register maintained under section 301 of the Companies Act, 1956.

(f) In our opinion, the rate of interest and other terms and conditions of the loans taken by the Company, are prima facie not prejudicial to the interest of the Company.

(g) The payment of principal amounts and interest in respect of such loans during the year has been regular.

IV. In our opinion and according to the information and explanations given to us, there are no sufficient adequate internal control systems commensurate with the size of the company and the nature of its business with regard to purchase of inventory and fixed assets and for sale of goods and services. There is no continuing failure by the company to correct any major weaknesses in internal control.

V. (a) On the basis of the audit procedures'' performed by us, and according to the information, explanations and representations made to us, we are of the opinion that, there are sales/purchases transactions in which directors were interested as contemplated under section 297 and section 299 of the Companies Act, 1956 and which were required to be entered in the register maintained under section 301 of the said Act, have been so entered.

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

VI. The Company has not accepted any deposits from the public and hence the applicability of the clause of directives issued by the Reserve Bank of India and provisions of section 58A, 58AA or any other relevant provisions of the Act and the rules framed there under does not arise.

VII. The Company has no a formal system of Internal Audit, but there are adequate checks & controls at All levels established by the Management.

VIII. In respect of the Company, the Central Government has not prescribed maintenance of cost records under clause (d) of sub-section (1) of section 209 of the Companies Act, 1956.

IX. (a) According to the information and explanation given to us the Company is generally regular in depositing with appropriate authorities undisputed statutory dues including income tax, sales tax, wealth tax, service tax, customs duty, cess and other material statutory dues applicable. However the Company is not paying/filings Tax detections at source and Professional Tax on the due dates.

(b) On the basis of our examination of documents and records of the Company, and explanation provided to us, there were no disputed dues in respect of Income tax, Sales tax, Wealth tax, Service tax, Customs Duty, Excise Duty, or Cess, were in arrears, as at 31st March 2014 for the period more than six month from the date they become payable as except below

Income Tax & its AY Rs in Lakhs Interest Due as on 2012-13 41.21 31.05.2014

(c) According to information and explanation given to us, there is no dues of income tax, sales tax, custom duty, wealth tax, service tax, excise duty, and cess which has been deposited on account of any dispute. However for A Y 2011-12 Income tax assessments was pending with IT Dept.

X. The Company has been registered for a period of not less than 5 years, and the Company has no accumulated losses at the end of the financial year and the company has not incurred cash losses in this financial year and the immediately preceding financial year.

XI. On the basis of the information and explanation given to us, Company has not defaulted in repayment of dues to financial institutions or banks interest and installments except few delays.

XII. According to the information and explanations given to us, the Company has not granted any loans or advances on the basis of security by way of pledge of shares, debentures and other securities and hence the applicability of the clause regarding maintenance of adequate documents in respect of loans does not arise.

XIII. This clause is not applicable to this Company as the Company is not covered by the provisions of special statute applicable to Chit Fund in respect of Nidhi/Mutual Benefit Fund/Societies.

XIV. According to the information and explanations given to us, the company is not dealing or trading in shares, securities, Debentures and other investments and hence the provisions of clause 4(xiv) of the Companies (Auditor''s Report) Order 2003, are not applicable to the Company.

XV. According to the information and explanations and management letter given to us, the Company has not given any guarantee for loans taken by others from Banks or Financial Institutions, and hence the applicability of this clause regarding terms and conditions which are prejudicial to the interest of the company does not arise.

XVI. As per the management representation received by us, the term loans obtained by the Company were applied for purpose for which such loans were obtained by the Company.

XVII. As per the management representation received by us, funds are raised by the Company on short-term basis. Hence, the short term funds being used for short term purpose only not for long term purpose.

XVIII. According to the information and explanations given to us, the Company has made a preferential allotment of Shares to parties during the year, under Zero percent convertible preference shares into equity shares.

XIX. According to the information and explanations given to us, during the year the company does not have any debentures and hence the applicability of the clause regarding the creation of security or charge in respect of debentures issued does not arise.

XX. According to information and explanations given to us, the company has not raised money by way of public issues during the year; hence the clause regarding the disclosure by the management on the end use of money raised by Public Issue is not applicable.

XXI. According to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the year under audit.



For B R R & Associates Chartered Accountants F R N: 013012S

B. Ravinder Rao Place: Hyderabad Partner Date: 30.05.2014 M No 221298


Mar 31, 2012

1. We have audited the attached Balance Sheet of M/S MEUSE KARA & SUNGRACE MAFATLAL LIMITED (Formerly known as Bio Green Industries Limited) as at 31st March 2012, the statement of Profit & Loss and also 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 misstatements. An audit includes examining, on test basis, evidence supporting the amounts and disclosure 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 reasonable basis for our opinion.

3. As required by the Companies (Auditor''s Report) Order, 2003 as amended by Companies (Auditor''s Report) (Amendment) Order, 2004, issued by 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 paragraph 4 and 5 of the said order.

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

We have obtained all the information and explanation which, to the best of our knowledge and belief, were necessary for the purpose of our audit.

i. 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.

ii. The Balance Sheet, Statement of Profit & Loss and Cash Flow Statement dealt with by this report are in agreement with the books of accounts.

iii. In our opinion, the Balance Sheet, Statement of Profit & Loss 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.

iv. On the basis of written representation received from the directors, as on March 31, 2012 and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on March 31, 2012 from being appointed as a Director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956.

v. In our opinion and to the best of our information and according to the explanations given to us, the said accounts 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 Balance Sheet, of the state of affairs of the company as at 31st March, 2012,

(ii) In the case of the Statement of Profit & Loss, of the profit for the year ended on that date, and

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

ANNEXTURE TO THE AUDITORS'' REPORT

(Referred to in paragraph 3 of Auditors'' Report of even date on the financial statements as at and for the year ended 31st March, 2012)

On the basis of such checks as were considered appropriate and according to the information and explanation given to us during the course of audit, we state that :-

i.

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

b. The assets have been physically verified by the management in accordance with the phased programme of verification adopted by the Company. In our opinion, the frequency of verification is reasonable having regard to the size of the Company and nature of fixed assets, no material discrepancies have been noticed in respect of assets physically verified during the year.

c. No substantial part of the fixed assets has been disposed off during the year.

ii.

a. The inventory has been physically verified by the management at reasonable intervals during the year.

b. In our opinion, the procedures for physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

c. The Company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and book records were not material.

iii.

a. The Company has not granted loans to any parties covered in register maintained under section 301 of The Companies Act,1956,hencepara (b),(c) & (d) is not applicable to the company

e. The Company has taken loans from three parties covered in the register maintained under section 301 of The Companies Act, 1956. Maximum amount outstanding during the period is Rs. 2,26,91,264/- and year end balance is also Rs. 2.26,91,264/-

f. In our opinion, rate of interest and other terms and conditions of loans taken by the Company, are not prejudicial to the interest of the Company.

g. There are no stipulations as to repayment of principal and interest amount.

iv. 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 and services. During the course of our audit, no major weakness has been noticed in the internal control system.

v. According to the information and explanations given to us, we are of the opinion that the company has not entered into any contracts or arrangements referred to in section 301 of the Companies Act, 1956.

vi. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits within the meaning of section 58A, 58AA or any other relevant provisions of the Companies Act, 1956 and the rules framed there under.

vii. The Company does not have a formal system of Internal Audit, but there are adequate checks & controls at all level established by the management.

viii. According to the information and explanation given to us the maintenance of cost records has not been prescribed by the Central Government under clause (d) of sub-section (1) of section 209 of the Companies Act, 1956 for any of the activities of the company.

ix.

a. The Company is generally regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees'' State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, cess and other material statutory dues applicable to the company with the appropriate authorities. According to the information and explanation given to us, there are no undisputed amounts payable in respect of the aforesaid statutory dues were outstanding as at the last day of the financial year for a period of more than six months from the date they became payable.

b. According to the records of the Company, there are no dues of Income Tax, Sales Tax, Service Tax, Customs Duty, Wealth Tax, Excise Duty, Cess which have not been deposited on account of any dispute.

x. The Company does not have any accumulated losses as at 31st March, 2012. The company has not incurred cash losses during the financial year covered by our audit and immediately preceding financial year.

xi. According to the records of the Company examined by us and the information and explanation given to us, we are of the opinion that the Company has not defaulted in repayment of dues to financial institutions, banks or debenture holders as at the Balance sheet date.

xii. Based on our examination of documents and records and according to the information and explanation given to us, we are of the opinion that the Company has not granted any loans and/or 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 Order are not applicable to the Company.

xiv. The Company has maintained proper records of the transactions and contracts for dealing or trading in shares, securities, debentures and other investments and timely entries have been made therein. All shares, securities, debentures and other investment have been held by the company, in its own name except to the extent of the exemption granted under section 49 of the Companies Act, 1956, and save for certain shares which are either lodged for transfer or held with transfer forms.

xv. In our Opinion, and 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 during the year.

xvi. In our Opinion, and according to the information and explanations given to us, the Company did not have any term loans outstanding during the year.

xvii. According to the information and explanations given to us and on an overall examination of the cash flow statements and balance sheet of the company, in our opinion, the funds raised on short-term basis have, prima facie, not been used for long-term investment.

xviii. During the year the Company has not made any preferential allotment of shares to the parties covered and recorded in the register maintained under section 301 of the Companies Act 1956.

xix. According to the information and explanations given to us, during the period covered by our audit report, the company had not issued any debentures.

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

xxi. During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India and according to the information and explanations given to us, we have neither come across any instance 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 DMKH & CO.

Chartered Accountants

FRN. No. 116886W

Sd/-

CA. Durgeshkabra

Partner

M.No. 044075

Place : Mumbai

Date : 3rd September 2012


Mar 31, 2010

1. We have audited the attached Balance Sheet of Bio Green Industries Limited as at March 31, 2010 and also the Profit & 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 statement 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 Report) (Amendment) Order 2004, (together the ‘Order) 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, the Company has kept proper books of accounts as required by law so far as appears from our examination of those books.

(iii) The Balance Sheet, Profit & 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, Profit & Loss Account and Cash Flow Statement dealt with by this report comply with the accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956.

(v) On the basis of the written representation received from the directors, as on March 31, 2010, and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on March 31, 2010 from being appointed as a Director in terms of clause (g) of sub-section (1) of section 274 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 give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view and are 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, 2010.

(b) In the case of the Profit & Loss account, of the Profit for the year ended on that date; and

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

ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE

I. (a) The Company has maintained proper records showing full Particulars, including quantitative details and situation, of fixed Assets on the basis of information available.

(b) We are informed that fixed assets have been physically verified by the management during the year. 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 noticed on such verification.

(c) In our opinion and according to information and explanation given to us no fixed assets have been disposed of by the company during the year.

II. (a) In our opinion and according to the information and explanation given to us, the Management has conducted physical verification of inventory at reasonable intervals during the year.

(b) In our opinion and according to the information and explanation 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 the nature of its business.

(c) In our opinion and according to the information and explanation given to us, the company is maintaining proper records of inventory and no material discrepancies were noticed on physical verifications

III (a) The Company has not granted loans to any parties covered in register maintained under section 301 of the Companies Act, 1956, hence point (b), (c) & (d) is not applicable to the Company.

(e) The Company has not taken loans from any parties covered in register maintained under section 301 of the Companies Act, 1956, hence point (f) & (g) is not applicable to the Company.

IV. In our opinion and according to the information and explanation given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business, for the purchase of inventory and fixed assets and for the sale of goods and services. During the course of our audit, we have neither come across nor have been informed of any continuing failure to correct major weaknesses in the aforesaid internal control system.

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, have been so entered.

(b) In our opinion and according to the information and explanations given to us, the company has not entered into any transaction exceeding five lakhs in respect of any party referred to under section 301 of the Companies Act, 1956.

VI. The Company has not accepted any deposits from the Public during the year & consequently the provision of section 58A and 58AA of the Companies Act 1956 and the rules framed there under are not applicable.

VII. The Company does not have a formal internal audit system commensurate with its size and nature of business but its financial and other internal checks ensure proper recording of financial transactions.

VIII. The Central Government has not prescribed maintenance of cost records by the Company under section 209 (1) (d) of the Act.

IX. (a) According to the information and explanation given to us and the records of the Company examined by us , the Company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident fund, Investor Education Protection Fund, employees state insurance, income tax, sales tax, wealth tax, service tax, custom duty, Excise duty, Cess and other material statutory dues applicable to it except following-

Status Nature Amount Period Forum where is Involved (F.Y) dispute is pending

Income tax Act Penalty Rs. 5,31,000 2000-01 proceeding Honorable CIT

Income tax Act Rs. 2,73,331 2002-03 (appeal) Deemed for tax

(b) According to the information and explanation given to us, there are no dues of sales tax, income tax, customs duty, wealth tax, excise duty and cess, which have not been deposited on account of any dispute.

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

XI. Based on our audit procedures and on the information and explanation given by the management, we are of the opinion that the Company has not defaulted in repayment of dues to financial institution, bank or debenture holders.

XII. According to the information and explanations given to us and based on the documents and records produced before us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

XIII. The provision of any special statute applicable to chit fund / Niddhi / mutual benefit fund / society are not applicable to the Company.

XIV. The Company has maintained records of the transactions and contracts of dealing or trading in shares and timely entries have been made therein. The shares, securities debentures, and other investments are in the name of the Company.

XV. According to the information and explanation given to us, the Company has not given any guarantee of loans taken by others from bank or financial institutions.

XVI. According to the information and explanation given and based on the documents and records produced, the term loan was applied for the purpose for which the loans were obtained.

XVII. According to the information and explanations given to us and on an overall examination of the Balance Sheet of the Company, in our opinion that no funds raised on a short-term basis.

XVIII. During the year the company has allotted equity shares on preferential basis to parties and company covered in the register maintained u/s 301 of the Companies Act. 1956. The issue of shares is at the price which has been prescribed under preferential issue guideline issued by SEBI. In our opinion the same is not prejudicial to the interest of company (Reference is also invited to Note no 2 of accounting policies & notes to account in Schedule no 15)

XIX. The Company has not issued any debentures during the year.

XX. The Company has not raised any funds by way of Public Issue during the year.

XXI. Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per the information and explanations given by the management, we report that no fraud on or by the Company has been noticed or reported during the course of our audit.

For DMKH & Co. Chartered Accountants

Sd/-

CA. Durgesh Kabra Proprietor

M. No. : 44075 Place : Mumbai Date : 06/12/2010


Mar 31, 2009

1. We have audited the attached Balance Sheet of Bio Green Industries Limited as at March 31, 2009 and also the Profit & 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 statement 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 Report) (Amendment) Order 2004, (together the Order) 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, the Company has kept proper books of accounts as required by law so far as appears from our examination of those books.

(iii) The Balance Sheet, Profit & 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, Profit & Loss Account and Cash Flow Statement dealt with by this report comply with the accounting Standards referred to in sub-section (3C) of Section 21 1 of the Companies Act, 1956.

(v) On the basis of the written representation received from the directors, as on March 31, 2009, and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on March 31, 2009 from being appointed as a Director in terms of clause (g) of sub-section (1) of section 274 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 give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view and are 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, 2009.

(b) In the case of the Profit & Loss account, of the Profit for the year ended on that date; and

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

ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE Re: Bio Green Industries Limited

I. (a) The Company has maintained proper records showing full Particulars, including quantitative details and situation, of fixed Assets on the basis of information available.

(b) We are informed that fixed assets have been physically verified by the management during the year. 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 noticed on such verification.

(c) in our opinion and according to information and explanation given to us no fixed assets have been disposed of by the company during the year.

II. (a) In our opinion and according to the information and explanation given to us, the Management has conducted physical verification of inventory at reasonable intervals during the year.

(b) In our opinion and according to the information and explanation 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 the nature of its business.

(c) In our opinion and according to the information and explanation given to us, the company is maintaining proper records of inventory and no material discrepancies were noticed on physical verifications

III (a) The Company has not granted loans to any parties covered in register maintained under section 301 of the Companies Act. 1956. hence point (b). (c) & (d) is not applicable to the Company.

(e) The Company has not taken loans from any parties covered in register maintained under section 301 of the Companies Act, 1956, hence point (f) & (g) is not applicable to the Company.

IV. In our opinion and according to the information and explanation given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business, for the purchase of inventory and fixed assets and for the sale of goods and services. During the course of our audit, we have neither come across nor have been informed of any continuing failure to correct major weaknesses in the aforesaid internal control system.

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, have been so entered.

(b) In our opinion and according to the information and explanations given to us, the company has not entered into any transaction exceeding five lakhs in respect of any party referred to under section 301 of the Companies Act, 1956.

VI. The Company has not accepted any deposits from the Public during the year & consequently the provision of section 58 A and 58AA of the Companies Act 1956 and the rules framed there under are not applicable.

VII. The Company does not have a formal internal audit system commensurate with its size and nature of business but its financial and other internal checks ensure proper recording of financial transactions.

VIII. The Central Government has not prescribed maintenance of cost records by the Company under section 209 (1) (d) of the Act.

IX. (a) According to the information and explanation given to us and the records of the Company examined by us , the Company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident fund, Investor Education Protection Fund, employees state insurance, income tax, sales tax, wealth tax, service tax, custom duty, Excise duty, Cess and other material statutory dues applicable to it except following-

Status Nature Amount Period Forum where is Involved (F.Y) dispute is pending

Income tax Act Penalty proc -eeding Rs. 531000 2000-0l

Honl CIT Income tax Act Deemed for tax Rs. 273331 2002-03 (appeal)

(b) According to the information and explanation given to us, there are no dues of sales tax, income tax, customs duty, wealth tax, excise duty and cess, which have not been deposited on account of any dispute.

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

XI. Based on our audit procedures and on the information and explanation given by the management, we are of the opinion that the Company has not defaulted in repayment of dues to financial institution, bank or debenture holders.

XII. According to the information and explanations given to us and based on the documents and records produced before us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

XIII. The provision of any special statute applicable to chit fund / nidhi / mutual benefit fund / society are not applicable to the Company.

XIV. The Company has maintained records of the transactions and contracts of dealing or trading in shares and timely entries have been made therein. The shares, securities debentures, and other investments are in the name of the Company.

XV. According to the information and explanation given to us, the Company has not given any guarantee of loans taken by others from bank or financial institutions.

XVI. According to the information and explanation given and based on the documents and records produced, the term loan was applied for the purpose for which the loans were obtained.

XVII. According to the information and explanations given to us and on an overall examination of the Balance Sheet of the Company, in our opinion that no funds raised on a short-term

XVIII. During the year the company has allotted equity shares on preferential basis to parties and company covered in the register maintained u/s 301 of the Companies Act. 1956. The issue of shares is at the price which has been prescribed under preferential issue guideline issued by SEB1. In our opinion the same is not prejudicial to the interest of company (Reference is also invited to Note no 2 of accounting policies & notes to account in Schedule no 15)

XIX. The company has not issued any debentures till date.

XX. The Company has not raised any funds by way of Public Issue during the year.

XXI. Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per the information and explanations given by the management, we report that no fraud on or by the Company has been noticed or reported during the course of our audit.

For Durgesh Kabra & Co. Chartered Accountants

CA. Durgesh Kabra Proprietor

M. No. : 44075

Place : Mumbai Date : 22/08/2009

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