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Auditor Report of National Plastic Industries Ltd.

Mar 31, 2016

To

The Members of

NATIONAL PLASTIC INDUSTRIES LIMITED Report on the Financial Statements

We have audited the accompanying financial statements of NATIONAL PLASTIC INDUSTRIES LIMITED (“the company''), which comprises Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss Account and, Cash Flow Statement for the year ended 31st March 2016 and a summary of significant accounting policies and other explanatory information.

Managements’ Responsibility for the Financial Statements

The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act 2013 (“the Act”) with respect to the presentation of these financial statements that give a true and fair view of the financial position and financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies ; making judgments and estimates that are reasonable and prudent ; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

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

We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified under Section 143 (10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on whether the company has in place adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors as well as evaluating the overall presentation of the financial statements.

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

Opinion

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

a. In the case of the Balance Sheet, of the state of affairs of the Company as at 31st March 2016

b. In the case of the Profit and Loss Account, of the Profits for the year ended on that date.

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 (Auditor''s Report) order, 2016 (“The Order”) issued by the Central Government of India in terms of sub section (11) of section 143 of the Act, we give in the Annexure A a statement on the matters specified in the paragraphs 3 and 4 of the Order, to the extent applicable.

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

a. We have obtained all the information and explanations which to the best our knowledge and belief were necessary for the purpose of 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, Statement of Profit and Loss and the Cash Flows Statement dealt with by this Report are in agreement with the books of accounts.

d. In our opinion, the aforesaid financial statements comply with the accounting standards referred to in the Section 133 of the Companies Act, 2013 and read with Rule No 7 of the Companies (Accounts) Rules 2014.

e. On the basis of representations received from the directors as on Mar 31, 2016 and taken on record by the Board of Directors, none of the directors is disqualified as on Mar 31, 2016 from being appointed as a director in terms of Section 164(2) of the Act.

f. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in ''Annexure B''.

g. There are no details to be reported for the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014.

ANNEXURE TO THE AUDITORS’ REPORT

(REFERRED TO IN THE REPORT OF EVEN DATE OF THE AUDITORS TO THE MEMBERS OF NATIONAL PLASTIC INDUSTRIES LIMITED ON THE ACCOUNTS FOR THE PERIOD ENDED 31st March 2016)

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

b) As explained to us major portion of the fixed assets have been physically verified by the management at the year end, which in our opinion is reasonable having regard to the size of the company and nature of its assets. No material discrepancies were noticed on such physical verification.

c) According to the information and explanations given to us and on the basis of examination of the records of the company, the title deeds of immoveable properties are held in the name of the company except for freehold land and building situated at Kashimira having written down value of Rs. 8.86 Lacs and Rs. 104.11 lacs respectively. However the company is in the possession of the said property and the same has been let out by the company.

2) a) Inventories, except for goods in transit and stocks lying with the third parties, have been physically verified during the year by the Management at reasonable intervals. In my opinion, the frequency of verification is reasonable.

b) The discrepancies noticed on verification between physical stocks and book records are not material and have been adequately dealt with in books of the company.

3) According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured, to Companies, firms, limited liability partnerships or other parties covered in the Register maintained under Section 189 of the Companies Act, 2013 (‘the Act”). Accordingly, paragraphs 3(iii)(a) and (b) of the Order are not applicable to the Company.

4) In our opinion and according to the information and explanations given to us, the Company has not granted any loans, or made any investments or provided any guarantees or security to the parties covered under Section 185 of the Act. Accordingly, the paragraph 3(iv) of the Order is not applicable to the Company.

5) In our opinion and according to the information and explanations given to us the Company has not accepted any deposits from the public within the meaning of provisions of sections 73 to 76 and the rules framed there under. Accordingly, paragraph 3(v) of the Order is not applicable to the Company.

6) The maintenance of cost records is not applicable to the Company as per the provisions of section 148 of the Companies Act 2013 and rules framed there under. Accordingly, paragraph 3(vi) of the Order is not applicable to the Company.

7) a) According to the information and explanations given to us and on the basis of examination of the records of the company, the amounts deducted/accrued in the books of account in respect of undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employee''s State Insurance, income tax, sales tax, service tax, value added tax, Custom Duty, Excise Duty, Cess and other statutory dues, as applicable, have been generally regularly deposited during the year by the Company with the appropriate authorities. According to the information and explanations given to us, there were no undisputed amounts payable in respect of above dues at the year-end for the period of more than six months from the date they become payable except for a sum of Rs. 2.39 lacs (out of which Rs. 0.29 lacs has been since paid)

b) On the basis of our examination of the documents and records there are no disputed statutory due which remains to be deposited with the appropriate authorities.

8) According to the information and explanations given to us and on the basis of examination of the records, the Company, it has not defaulted during the year in repayment of loans and borrowings from banks. The Company does not have any loans or borrowings from financial institutions or government or dues to debenture holders during the year.

9) According to the information and explanations given to us and on the basis of examination of the records of the Company, the Company has not raised any moneys by way of initial public offers (including debt instruments) and has not obtained any term loans during the year. Accordingly Paragraph 3(ix) of the Order is not applicable to the Company.

10) During the course of our examination of the books and records of the Company, carried out in the accordance with the generally accepted audit practices in India, and according to the information and explanations given to us, we have neither come across any instance of material fraud by the Company or on the Company by its officers or employees, noticed or reported during the year, nor have we been informed of any such case by the management.

11) In our opinion and according to the information and explanations given to us, the managerial Remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with schedule V to the Act.

12) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company and the in Nidhi Rules 2014 are not applicable to it. Accordingly Paragraph 3(xii) of the Order is not applicable to the Company.

13) In our opinion and according to the information and explanations given to us, the Company has entered into transactions with related parties in compliance with the provisions of Sections 177 and 188 of the Act where applicable and the details of such related party transactions have been disclosed in the financial statements as required by Accounting Standard (AS) 18, Related Party Disclosures specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules 2014.

14) According to the information and explanations given to us and on the based on examination of the records of the Company, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly Paragraph 3(xiv) of the Order is not applicable to the Company.

15) According to the information and explanations given to us and on the based on examination of the records of the Company, the company has not entered into non cash transactions with directors or persons connected with them. Accordingly Paragraph 3(xv) of the Order is not applicable to the Company.

16) In our opinion and according to the explanations given to us, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.Accordingly Paragraph 3(xvi) of the Order is not applicable to the Company.

ANNEXURE B

TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTS OF NATIONAL PLASTIC INDUSTRIES LIMITED

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)

We were engaged to audit the internal financial controls over financial reporting of National Plastic Industries Limited (“the Company”) as of March 31, 2016 in conjunction with our audit of the financial statements of the Company for the year ended on that date.

Management’s Responsibility for Internal Financial Controls

The Company''s management is responsible for establishing and maintaining internal financial controls over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on my/our audit conducted in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the “Guidance Note”) and the Standards on Auditing, to the extent applicable to an audit of internal financial controls, both issued by the Institute of Chartered Accountants of India.

Because of the matter described in Disclaimer of Opinion paragraph below, we were not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on internal financial controls system over financial reporting of the Company.

Meaning of Internal Financial Controls Over Financial Reporting

A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.

Disclaimer of Opinion

According to the information and explanation given to us, the Company has not established its internal financial control over financial reporting on criteria based on or considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. Because of this reason, we are unable to obtain sufficient appropriate audit evidence to provide a basis for our opinion whether the Company had adequate internal financial controls over financial reporting and whether such internal financial controls were operating effectively as at March 31, 2016.However as informed by the management that there are adequate informal controls over the operations of the company which requires to be documented based on the requirements of Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by ICAI.

We have considered the disclaimer reported above in determining the nature, timing, and extent of audit tests applied in my / our audit of the standalone financial statements of the Company, and the disclaimer do not affect my / our opinion on the standalone financial statements of the Company.

For Sheth Doctor and Associates

Chartered Accountants

(Firm Regn No. 124822W)

Paresh S. Doctor

Place: Mumbai Proprietor

Date: 27th May, 2016 Membership No. 36056


Mar 31, 2015

We have audited the accompanying financial statements of NATIONAL PLASTIC INDUSTRIES LIMITED, which comprises Balance Sheet as at 31st March, 2015, the Statement of Profit and Loss Account and Cash Flow Statement for the year ended 31st March 2015 and a summary of significant accounting policies and other explanatory information.

Managements' Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act 2013 ("the Act") with respect to the presentation of these financial statements that give a true and fair view of the financial position and financial performance in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified under Section 143 (10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company's preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on whether the company has in place adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Company's Directors as well as evaluating the overall presentation of the financial statements.

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

Opinion

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

(a) In the case of the Balance Sheet, of the state of affairs of the Company as at 31st March 2015

(b) In the case of the 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 fows for the year ended on that date.

Emphasis of Matter

As referred in Note No.26(B) h of Notes forming part of the Financial Statements, the company has provided depreciation as per method prescribed by the Companies Act 2013 ("the Act') w.e.f. 1/4/2014. The company has written off Written Down values of Fixed assets amounting to Rs, 91.51 lacs whose useful lives have already been expired at the beginning of the year in accordance with the provisions of Depreciation as per Schedule II of the Companies Act 2013.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) order, 2015 ("The Order") issued by the Central Government of India in terms of sub section (11) of section 143 of the Act, we give in the Annexure a statement on the matters specified in the paragraphs 3 and 4 of the Order.

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

a. We have obtained all the information and explanations which to the best our knowledge and belief were necessary for the purpose of 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, Statement of Profit and Loss and other notes thereon dealt with by this Report are in agreement with the books of accounts.

d. In our opinion, the Balance Sheet and Statement of Profit and Loss comply with the accounting standards referred to in the Section 133 of the Companies Act, 2013 and read with Rule No 7 of the Companies Accounting Rules 2014.

e. On the basis of representations received from the directors as on 31st March, 2015 and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2015 from being appointed as a director in terms of Section 164(2) of the Act.

f. There are no other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014.

ANNEXURE TO THE AUDITORS' REPORT

(REFERRED TO IN THE REPORT OF EVEN DATE OF THE AUDITORS TO THE MEMBERS OF NATIONAL PLASTIC INDUSTRIES LIMITED ON THE ACCOUNTS FOR THE PERIOD ENDED 31st March 2015)

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

b) As explained to us major portion of the fixed assets have been physically verified by the management at the year end, which in our opinion is reasonable having regard to the size of the company and nature of its assets. No material discrepancies were noticed on such physical verification.

2) a) Inventories have been physically verified during the year by the Management. In my opinion, the frequency of verification is reasonable.

b) In my opinion, the procedures of physical verification of inventories 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 physical stocks and book records are not material.

d) In my opinion the valuation of stock is fair and proper in accordance with the normally accepted accounting principles and is on the same basis as in the preceding year.

3) The Company has not granted any loans, secured or unsecured, to Companies, frms or other parties listed in the Register maintained under Section 189 of the Companies Act, 1956.

4) In our opinion and according to the information and explanations given to us, there is adequate internal control procedure commensurate with the size of the Company and the nature of its business with regard to purchase of stores, raw materials including components, packing materials, plant and machinery, equipment and other assets and with regard to sale of goods and I have not observed any continuing failure to correct major weakness in the internal controls procedure except for the old balances under Sundry Debtors.

5) The company has not accepted any deposits from the public within the meaning of provisions of sections 73 to 76 and the rules framed there under.

6) The maintenance of cost records is not applicable to the Company as per the provisions of section 148 of the Companies Act 2013 and rules framed there under.

7) a) The Company has been regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employee's State Insurance, income tax, sales tax, service tax, value added tax, Wealth Tax, Custom Duty, Excise Duty, Cess and other statutory dues, as applicable, with the appropriate authorities in India. At the end of the financial year there were no undisputed amounts payable in respect of above dues at the yearend for the period of more than six months from the date they become payable except for sales tax, service tax etc. amounting to Rs, 55.63 lacs (sub. to interest).

b) On the basis of our examination of the documents and records there are no disputed statutory due which remains to be deposited with the appropriate authorities.

c) There is no amount required to be transferred to investor education and protection fund in accordance with the relevant provisions of the Companies Act, 1956 (1 of 1956) and rules made there under.

8) The company has not incurred cash loss during the year. The company has no accumulated losses at the year end.

9) Based on my audit procedures and on the information and explanation given by management, I am of the opinion that the Company has not defaulted during the year in repayment of dues to the banks and financial institutions.

10) According to the information and explanations given to me, the Company has not given any guarantee for loans taken by others from banks and financial institutions.

11) To the best of our knowledge and belief and according to the information and explanations given to us, the term loans have been utilized for the purpose for which they were obtained.

12) To the best of our knowledge and belief and according to the information and explanations given to us, no fraud on or by the Company was noticed or reported during the year.

For Sheth Doctor and Associates

Chartered Accountants

(Firm Regn No. 124822W)



Paresh S. Doctor

Place: Mumbai Proprietor

Date: 30th May, 2015 Membership No. 36056


Mar 31, 2014

1. I have audited the accompanying financial statements of NATIONAL PLASTIC INDUSTRIES LIMITED, which comprises Balance Sheet as at 31st March, 2014, the Statement of Profit and Loss Account and also the Cash Flow Statement of the Company for the period then ended, and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

2. 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 flow of the Company in accordance with the accounting standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956 ("The Act"). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error.

Auditor''s Responsibility

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

4. 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 re-appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the management, as well as evaluating the overall presentation of the financial statements.

5. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Opinion

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

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

(b) In the case of the Profit and Loss Account, of the Profits for the period ended on that date and

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

Report on Other Legal and Regulatory Requirements

7. As required by the Companies (Auditor''s Report) Order, 2003'', as amended by "the Companies (Auditor''s Report) (Amendment) Order, 2004'' issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Act (hereinafter referred to as the "Order") and on the basis of such checks of the books and records of the Company as I considered appropriate and according to the information and explanation given to me, I give in the Annexure a statement on the matters specified in the paragraphs 4 and 5 of the Order.

8. As required under provisions of Section 227(3) of the Companies Act, 1956, I report that :

a. I have obtained all the information and explanations which to the best my knowledge and belief were necessary for the purpose of audit.

b. In my 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, Statement of Profit and Loss and Cash Flow Statement dealt with by this Report are in agreement with the books of accounts.

d. The Balance Sheet, Statement of Profit and 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 Act.

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 Act.

ANNEXURE TO THE AUDITORS'' REPORT (Referred to in paragraph 7 of my report of even date on accounts of National Plastic Industries Ltd. for the year ended 31st March, 2014)

1. Fixed Assets:

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

b) As explained to me, during the year certain major items of fixed assets have been physically verified by the Management. According to the information and explanations given to me, no material discrepancies have been noticed in respect of assets, which have been physically verified during the year.

c) The Company has not sold/disposed off the fixed assets during the year.

2. Inventories:

a) Inventories have been physically verified during the year by the Management. In my opinion, the frequency of verification is reasonable.

b) In my opinion, the procedures of physical verification of inventories 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 physical stocks and book records are not material.

d) In my opinion the valuation of stock is fair and proper in accordance with the normally accepted accounting principles and is on the same basis as in the preceding year.

3. The Company has not granted any loans to secured or unsecured to Companies, firms or other parties listed in the Register maintained under Section 301 of the Companies Act, 1956. The company has taken interest free loans from the directors and parties/firm in which directors or relatives of directors are interested and covered under Section 301 of the Companies Act, 1956 and there are no repayment schedules specified for such loans.

4. In my opinion and according to the information and explanations given to me, there is adequate internal control procedure commensurate with the size of the Company and the nature of its business with regard to purchase of stores, raw materials including components, packing materials, plant and machinery, equipment and other assets and with regard to sale of goods and I have not observed any continuing failure to correct major lakness in the internal controls procedure except for the old balances under Sundry Debtors. The company does not have an internal audit system.

5. a) To the best of my knowledge, all the transaction with parties covered under Section 301 of the Companies Act, 1956 have been properly entered in the register maintained under Section 301 of the Companies Act, 1956.

b) In my opinion and according to the information and explanations given to me, there are no transactions made in pursuance of contracts or arrangements entered in the register maintained under Section 301 of the Act, and exceeding the value of five lakh rupees in respect of any party during the year.

6. The Company has not accepted any deposits from the public within the meaning of Sections 58A and 58AA of the Act and the rules framed there under.

7. As per information and explanation given to me, the company has, prima facie, maintained cost records as prescribed by the Central Government under Section 209(1)(d) of the Companies Act, 1956, in respect of activities carried on by the Company. I have not made a detailed examination of the records with a view to determine whether they are accurate and complete.

8. a) The Company has been generally regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employee''s State Insurance, Wealth Tax, Custom Duty, Excise Duty, Cess and other statutory dues, as applicable, with the appropriate authorities in India.

b) At the end of the financial year there were no undisputed amounts payable in respect of Sales Tax, Income Tax, Income Tax (TDS), Custom Duty, Wealth Tax, Excise Duty and Cess at the year end, as applicable, for the period of more than six months from the date they become payable except for dividend tax, sales tax and service tax amounting to Rs. 36.76 lacs (sub. to interest).

c) On the basis of my examination of the documents and records there are no disputed statutory due which remains to be deposited with the appropriate authorities.

9. The Company has not incurred cash loss in the current year.

10. Based on my audit procedures and on the information and explanation given by management, the Company has not defaulted during the year in repayment of dues to financial institution.

11. The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

12. As the Company is not a chit fund, nidhi, mutual benefit fund or society the provisions of clause 4(xiii) of the Companies (Auditor''s Report) Order, 2003 are not applicable to the Company.

13. In my opinion and according to the information and explanations given to me, the Company is not dealer or trader in securities.

14. In my opinion and according to the information and explanations given to me, the Company has not given guarantees for loans taken by others from banks or financial institutions.

15. According to the information and explanation given to me, the Term Loan raised during the year has been applied to the purpose for which they were obtained.

16. According to the information and explanations given to me and on an overall examination of the Balance Sheet of the Company, I report that no funds raised on short-term basis have been used for long-term investment. No long- term funds have been used to finance short-term assets except permanent working capital.

17. The Company has not made any preferential allotment of shares during the year to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956.

18. The Company has not raised any funds by the way of debenture during the year.

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

20. During the course of my examination of the book of account carried out in accordance with the generally accepted auditing practices in India, I have not come across any instances of fraud on or by the Company nor I have been informed by the management of any such instance being noticed or reported during the year.

For and on behalf of

SHETH DOCTOR & ASSOCIATES

Chartered Accountants

Firm Regn No. 124822W

Place: Mumbai PARESH S. DOCTOR

Date : 29th May, 2014 Membership No. 36056


Mar 31, 2013

Report on the Financial Statements

1. I have audited the accompanying financial statements of NATIONAL PLASTIC INDUSTRIES LIMITED, which comprises Balance Sheet as at 31st March, 2013, the Statement of Profit and Loss Account and also the Cash Flow Statement of the Company for the period then ended, and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

2. 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 flow of the Company in accordance with the accounting standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956 (''The Act"). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error.

Auditor''s Responsibility

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

4. 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 re-appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the management, as well as evaluating the overall presentation of the financial statements.

5. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. Opinion

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

(a) In the case of the Balance Sheet, of the state of affairs of the Company as at 31st March 2013

(b) In the case of the Profit and Loss Account, of the Loss for the period ended on that date : and

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

Report on Other Legal and Regulatory Requirements

7. As required by the Companies (Auditor''s Report) Order, 2003'', as amended by "the Companies (Auditor''s Report) (Amendment) Order, 2004'' issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Act (hereinafter referred to as the "Order") and on the basis of such checks of the books and records of the Company as I considered appropriate and according to the information and explanation given to me, I give in the Annexure a statement on the matters specified in the paragraphs 4 and 5 of the Order.

8. As required under provisions of Section 227(3) of the Companies Act, 1956, I report that :

a. I have obtained all the information and explanations which to the best my knowledge and belief were necessary for the purpose of audit.

b. In my 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, Statement of Profit and Loss and Cash Flow Statement dealt with by this Report are in agreement with the books of accounts.

d. The Balance Sheet, Statement of Profit and 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 Act.

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

ANNEXURE TO THE AUDITORS'' REPORT

(Referred to in paragraph 7 of my report of even date on accounts of National Plastic Industries Ltd. for the year ended 31st March, 2013)

1. Fixed Assets:

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

b) As explained to me, during the year certain major items of fixed assets have been physically verified by the Management. According to the information and explanations given to me, no material discrepancies have been noticed in respect of assets, which have been physically verified during the year.

c) The company has not disposed off major part of the fixed assets during the year.

2. Inventories:

a) Inventories have been physically verified during the year by the Management. In my opinion, the frequency of verification is reasonable.

b) In my opinion, the procedures of physical verification of inventories 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 physical stocks and book records were not material.

d) In my opinion the valuation of stock is fair and proper in accordance with the normally accepted accounting principles and is on the same basis as in the preceding year.

3. The Company has neither granted nor taken any loans, do secured or unsecured, from Companies, firms or other parties listed in the Register maintained under Section 301 of the Companies Act, 1956, except for interest free loans from Directors.

4. In my opinion and according to the information and explanations given to me, there is adequate internal control procedure commensurate with the size of the Company and the nature of its business with regard to purchase of stores, raw materials including components, packing materials, plant and machinery, equipment and other assets and with regard to sale of goods and I have not observed any continuing failure to correct major lakness in the internal controls procedure except for the old balances under Sundry Debtors. The company does not have an internal audit system.

5. a) To the best of my knowledge, all the transaction with parties covered under Section 301 of the Companies Act, 1956 have been properly entered in the register maintained under Section 301 of the Companies Act, 1956.

b) In my opinion and according to the information and explanations given to me, there are no transactions made in pursuance of contracts or arrangements entered in the register maintained under Section 301 of the Act, and exceeding the value of five lakh rupees in respect of any party during the year.

6. The Company has not accepted any deposits from the public within the meaning of Sections 58A and 58AA of the Act and the rules framed there under.

7. As per information and explanation given to me, the company has, prima facie, maintained cost records as prescribed by the Central Government under Section 209(1)(d) of the Companies Act, 1956, in respect of activities carried on by the Company. I have not however made a detailed examination of the records with a view to determine whether they are accurate and complete.

8. a) The Company has been generally regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employee''s State Insurance, Wealth Tax, Custom Duty, Excise Duty, Cess and other statutory dues, as applicable, with the appropriate authorities in India.

b) At the end of the financial year there were no undisputed amounts payable in respect of Sales Tax, Income Tax, Income Tax (TDS), Custom Duty, Wealth Tax, Excise Duty and Cess at the year end, as applicable, for the period of more than six months from the date they become payable except for dividend tax, sales tax and service tax amounting to Rs. 58.71 lacs (sub. to interest).

c) On the basis of my examination of the documents and records there are no disputed statutory due which remains to be deposited with the appropriate authorities.

9. The Company has incurred cash loss in the current year however there are no accumulated losses at the end of the financial year.

10. Based on my audit procedures and on the information and explanation given by management, the Company has not defaulted during the year in repayment of dues to financial institution.

11. The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

12. As the Company is not a chit fund, nidhi, mutual benefit fund or society the provisions of clause 4(xiii) of the Companies (Auditor''s Report) Order, 2003 are not applicable to the Company.

13. In my opinion and according to the information and explanations given to me, the Company is not dealer or trader in securities.

14. In my opinion and according to the information and explanations given to me, the Company has not given guarantees for loans taken by others from banks or financial institutions.

15. According to the information and explanation given to me, the Term Loan raised during the year has been applied to the purpose for which they were obtained.

16. According to the information and explanations given to me and on an overall examination of the Balance Sheet of the Company, I report that no funds raised on short-term basis have been used for long-term investment. No long- term funds have been used to finance short-term assets except permanent working capital.

17. The Company has not made any preferential allotment of shares during the year to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956.

18. The Company has not raised any funds by the way of debenture during the year.

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

20. During the course of my examination of the book of account carried out in accordance with the generally accepted auditing practices in India, I have not come across any instances of fraud on or by the Company nor I have been informed by the management of any such instance being noticed or reported during the year.

For and on behalf of

SHETH DOCTOR & ASSOCIATES

Chartered Accountants

Firm Regn No. 124822W

Place: Mumbai PARESH S. DOCTOR

Date: 30th May, 2013 Membership No. 36056


Mar 31, 2012

We have audited the attached Balance Sheet of M/S. NATIONAL PLASTIC INDUSTRIES LIMITED as at 31st March, 2012 the Profit and Loss Account and also 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.

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 materials misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides reasonable basis for our opinion that -

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

2) 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 account as required by law have been kept by the company, so far as appears from our examination of the books;

c) The Balance Sheet and Profit and Loss account dealt with by this report are in agreement with the books of accounts;

d) In our opinion, the Balance-Sheet, the Profit & Loss Account and the Cash Flow statement dealt with by this report have been prepared in compliance with the Accounting Standards referred to in Section 211(3c) of the Companies Act, 1956;

e) On the basis of written representation received from the directors and taken on record by the Board Of Directors, we report that no director is disqualified as on 31st March 2012 from being appointed as a director of the Company u/s 274(1)(g) 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 accounts read together with the notes thereon, give information required by the Companies Act, 1956, in the manner so required and give a true and fair view:

I. In the case of the Balance Sheet, of the state of affairs of the company as at 31st March, 2012;

II. In the case of Profit and Loss Account, of 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.

ANNEXURE TO THE AUDITORS' REPORT

(Referred to in paragraph 1 of our report of even date on accounts of National Plastic Industries Ltd for the year ended 31st March, 2012)

1. 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, during the year certain major items of fixed assets have been physically verified by the Management. According to the information and explanations given to us, no material discrepancies have been noticed in respect of assets, which have been physically verified during the year.

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

2. Inventories:

a) Inventories have been physically verified during the year by the Management. In our opinion, the frequency of verification is reasonable.

b) In our opinion, the procedures of physical verification of inventories 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 physical stocks and book records were not material.

d) In our opinion the valuation of stock is fair and proper in accordance with the normally accepted accounting principles and is on the same basis as in the preceding year.

3. The Company has neither granted nor taken any loans, secured or unsecured, from Companies, firms or other parties listed in the Register maintained under Section 301 of the Companies Act, 1956, except for interest free loan from Director.

4. In our opinion and according to the information and explanations given to us, there is adequate internal control procedure commensurate with the size of the Company and the nature of its business with regard to purchase of stores, raw materials including components, packing materials, plant and machinery, equipment and other assets and with regard to sale of goods. We have not observed any continuing failure to correct major weakness in the internal controls procedure.

5. a) To the best of our knowledge, all the transaction with parties covered under Section 301 of the Companies Act,

1956 have been properly entered 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, there are no transaction of purchase or sale of goods, materials or services, made in pursuance of contracts or arrangements entered in the register maintained under Section 301 of the Company Act, 1956 and aggregating during the year to Rs. 5, 00,000/- , or more in respect of each party.

6. The Company has not accepted Short Term Unsecured Loans and the same has been repaid during the year and there is no balance outstanding at the year end. Necessary formalities as prescribed under Section 58A of the Companies Act, 1956 and the Rules made there under are not complied with.

7. The Company has internal audit system, which needs to be strengthened and to be made to commensurate to the size of the company and nature of its business.

8. As informed to us, the maintenance of cost records has not been prescribed by the Central Government under Section 209(1)(d) of the Companies Act, 1956, in respect of activities carried on by the Company.

9. a) The Company has been regular in depositing undisputed statutory dues including Provident Fund, Investor

Education and Protection Fund, Employee's State Insurance, Wealth Tax, Custom Duty, Excise Duty, Cess and other statutory dues, as applicable, with the appropriate authorities in India.

b) At the end of the financial year there were no undisputed amounts payable in respect of Sales Tax, Income Tax, Income Tax (TDS), Custom Duty, Wealth Tax, Excise Duty and Cess at the year end, as applicable, for the

period of more than six months from the date they become payable, except for dividend tax amounting to Rs. 14.81 lacs (Sub. to interest)

c) On the basis of our examination of the documents and records there are no disputed statutory due which remains to be deposited with the appropriate authorities.

10. The Company has not incurred cash loss in the current year and there are no accumulated losses at the end of the financial year.

11. Based on our audit procedures and on the information and explanation given by management the Company has not defaulted during the year in repayment of dues to financial institutions.

12. The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13. As the Company is not a chit fund, nidhi, mutual benefit fund or society the provisions of clause 4(xiii) of the Companies (Auditor's Report) Order, 2003 are not applicable to the Company.

14. In our opinion and according to the information and explanations given to us, the Company is not dealer or trader in securities.

15. In our opinion and according to the information and explanations given to us, the Company has not given guarantees for loans taken by others from banks or financial institutions.

16. The company has raised fund through Term Loans during the year.

17. 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. No long-term funds have been used to finance short-term assets except permanent working capital.

18. The Company has not made any preferential allotment of shares during the year to parties and companies covered in the register maintained under Section 301 of the Companies Act, 1956.

19. The Company has not raised any funds by the way of debenture 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 book of account carried out in accordance with the generally accepted auditing practices in India, we have not come across any instances of fraud on or by the Company nor we have been informed by the management of any such instance being noticed or reported during the year.

For and on behalf of SHETH DOCTOR & ASSOCIATES Chartered Accountants Firm Regn No. 124822W

Place: Mumbai PARESH S. DOCTOR

Date : 30th May, 2012 Membership No. 36056


Mar 31, 2010

We have audited the attached Balance Sheet of M/S. NATIONAL PLASTIC INDUSTRIES LIMITED as at 31st March 2010 the Profit and Loss Account and also 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.

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 materials misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides reasonable basis for our opinion that -

1) As required by the Companies (Auditors Report) Order, 2003, issued by the Central Government of India in terms of Section 227(4A) 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.

2) 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 account as required by law have been kept by the company, so far as appears from our examination of the books,

c) The Balance Sheet and Profit and Loss account dealt with by this report are in agreement with the books of accounts,

d) Reference is invited and following notes of schedule “15”

i. No.7 of Re.: Non-Provision of liability for retirement benefits and for impairment of Fixed Assets as required under Accounting Standard -15 & 28 respectively.

e) In our opinion, the Balance-Sheet, the Profit & Loss Account and the Cash Flow statement dealt with by this report have been prepared in compliance with the Accounting Standards referred to in Section 211 (3c) of the Companies Act, 1956, except for the provision for Retirement benefits & impairment of Fixed Assets as referred to in note no. 7 of schedule “15”

f) On the basis of written representation received from the directors and taken on record by the Board Of Directors, we report that no director is disqualified as on 31st March 2010 from being appointed as a director of the Company u/s 274 (1)(g) of the Companies Act, 1956.

g) In our opinion and to the best of our information and according to the explanations given to us, the said accounts, subject to note given in Para (d) above and read together with the notes thereon, give information required by the Companies Act, 1956, in the manner so required and give a true and fair view:

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 Profit and Loss Account, of 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.

ANNEXURE TO THE AUDITORS REPORT (Referred to in paragraph 1 of our report of even date on accounts of National Plastic Industries Ltd.

for the year ended 31st March 2010)

1. 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, during the year certain major items of fixed assets have been physically verified by the Management. According to the information and explanations given to us, no material discrepancies have been noticed in respect of assets, which have been physically verified during the year.

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

2. Inventories:

a) Inventories have been physically verified during the year by the Management. In our opinion, the frequency of verification is reasonable.

b) In our opinion, the procedures of physical verification of inventories 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 physical stocks and book records were not material.

d) In our opinion the valuation of stock is fair and proper in accordance with the normally accepted accounting principles and is on the same basis as in the preceding year.

3. The Company has neither granted nor taken any loans, do secured or unsecured, from Companies, firms or other parties listed in the Register maintained under Section 301 of the Companies Act, 1956, expect for interest free loan from Director.

4. In our opinion and according to the information and explanations given to us, there is adequate internal control procedure commensurate with the size of the Company and the nature of its business with regard to purchase of stores, raw materials including components, packing materials, plant and machinery, equipment and other assets and with regard to sale of goods except for the old balances under Sundry Debtors & Advances given and we have not observed any continuing failure to correct major weakness in the internal controls procedure.

5. a) To the best of our knowledge, all the transaction with parties covered under section 301 of the Companies Act, 1956

have been properly entered 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, there are no transaction of purchase or sale of goods, materials or services, made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Company act, 1956 and aggregating during the year to Rs. 5, 00,000/- , or more in respect of each party.

6. The Company has accepted Short Term Unsecured Loans and the same has been repaid during the year and there is no balance outstanding at the year end. Necessary formalities as prescribed under section 58A of the Companies Act 1956 and the Rules made there under are not complied with.

7. The Company has internal audit system, which needs to be strengthened and to be made to commensurate to the size of the company and nature of its business.

8. As informed to us, the maintenance of cost records has not been prescribed by the Central Government under section 209 (1) (d) of the Companies Act, 1956, in respect of activities carried on by the Company.

9. a) The Company has been regular in depositing undisputed statutory dues including Provident Fund, Investor Education

and Protection Fund, Employees State Insurance, Wealth Tax, Custom Duty, Excise Duty, Cess and other statutory dues, as applicable, with the appropriate authorities in India.

b) At the end of the financial year there were no undisputed amounts payable in respect of Sales Tax, Income Tax, Income Tax (TDS), Custom Duty, Wealth Tax, Excise Duty and Cess at the year end, as applicable, for the period of more than six months from the date they become payable.

c) On the basis of our examination of the documents and records there are no disputed statutory due which remains to be deposited with the appropriate authorities.

10. The Company has not incurred cash loss in the current year and there are not accumulated losses at the end of the financial year.

11. Based on our audit procedures and on the information and explanation given by management, the Company has not defaulted during the year in repayment of dues to financial institution.

12. The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13. As the Company is not a chit fund, nidhi, mutual benefit fund or society the provisions of clause 4(xiii) of the Companies (Auditors Report) Order, 2003 are not applicable to the Company.

14. In our opinion and according to the information and explanations given to us, the Company is not dealer or trader in securities.

15. In our opinion and according to the information and explanations given to us, the Company has not given guarantees for loans taken by others from banks or financial institutions.

16. The company has not raised fund through the Term Loan during the year.

17. 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. No long-term funds have been used to finance short-term assets except permanent working capital.

18. The Company has not made any preferential allotment of shares during the year to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956.

19. The Company has not raised any funds by the way of debenture 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 book of account carried out in accordance with the generally accepted auditing practices in India, we have not come across any instances of fraud on or by the Company nor we have been informed by the management of any such instance being noticed or reported during the year.

For and on behalf of

SHETH DOCTOR & ASSOCIATES Chartered Accountants Firm Regn. No 124822W

PARESH S. DOCTOR Membership No. 36056

Place : Mumbai Date : 30.06.2010

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