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Auditor Report of Pact Industries Ltd.

Mar 31, 2015

We have audited the accompanying financial statements of Pact Industries Limited which comprise the Balance Sheet as at March 31, 2015, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in sub section (3C) of section 211 of the Companies Act, 1956. 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 have 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 misstatements.

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, 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 Cash Flow Statement for the year ended on that date;

Report on Other Legal and Regulatory Requirements

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

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

* 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;

* 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 and proper returns adequate for the purposes of our audit have been received from branches not visited by us;

* The balance sheet, statement of profit and loss, and cash flow statement dealt with by this report are in agreement with the books of account and with the returns received from branches not visited by us;

* In our opinion, the balance sheet, statement of profit and loss, and cash flow statement comply with the accounting standards referred to in subsection (3c) of section 211 of the companies act, 1956;

* On the basis of written representations received from the directors as on March 31, 2015, and taken on record by the board of directors, none of the directors is disqualified as on march 31, 2015, 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 INDEPENDENT AUDITORS' REPORT

The Annexure referred to in our report to the members of M/s Pact Industries Ltd. for the year ended on 31.03.2015. We report that:

1. In respect of the Company's fixed assets:

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

(b) According to the information and explanations given to us, the fixed assets have been physically verified by the management during the year. No material discrepancies were noticed on such physical verification. In our opinion the frequency of physical verification of fixed assets is reasonable having regard to the size of the Company and nature of its business.

(c) In our opinion and according to information and explanation given to us, the company has not disposed off substantial part of its fixed assets during the year and going concern status of the company is accordingly not affected.

2. In respect of the Company's inventories:

(a) As explained to us, the inventory has been physically verified during the year by the management at reasonable intervals..

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

(c) The company is maintaining proper records of inventories.

2. (a) According to the information and explanations given to us, the company has not granted any loan to Companies or other parties covered in the register maintained under section 301 of the companies act, 2013.

(b) The company has taken unsecured loans from parties covered in the register maintained under section 301 of the Companies Act, 2013 and had also repaid some amount to same persons.

(c) In our opinion and according to the information and explanations given to us rate of interest and other terms and conditions on which loan have been taken from parties listed in the register maintained under section 301 of the Companies Act, 1956 are not prima-facie prejudicial to the interest of the company.

(d) In our opinion and according to the information and explanations give to us. The payment of principal amount and interest in respect to the aforesaid loans is regular. There is no overdue amount of loans taken from Companies, Firms, or other parties listed in the register maintained under section 301 of the Companies Act, 2013.

3. In our opinion and according to the information and explanations given to us, these are adequate internal control procedures commensurate with the size of the company and the nature of its business, with regards to purchase of inventories, fixed assets and with regard to sale of goods. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal controls system.

4. In respect of contracts or arrangements entered in the Register maintained in pursuance of Section 301 of the Act.

(a) In our opinion and 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, 1961 has been so entered.

(b) In our opinion and according to the information and explanations given to us, there is no transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and which exceed Rs. 5.00 Lacs or more in respect of each party during the year have been made at prices which are reasonable having regard to the prevalent market prices at the relevant time.

5. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public in pursuance of section 58A and 58AA of the Companies Act, 2013.

6. In our opinion, the company has internal audit system commensurate with the size and nature of its business.

7. The Central Govt. has not prescribed maintenance of cost records under section 209(1) (d) of the Companies Act, 2013 for any of the products of the Company.

8. According to the information and explanations given to us, in respect of statutory dues:

a) We are of the opinion that the Company has been regular in depositing undisputed statutory dues.

b) We are of the opinion that no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31.03.2015 for a period of more than six months from the date of they becoming payable.

c) We are of the opinion that there are no dues of Sale-Tax, Income Tax, Wealth Tax, Excise duty and cess which have not deposited on account of any dispute.

9. The company does not have accumulated losses at the end of financial year which are more than fifty percent of its net worth. The company has not incurred cash losses during the financial year covered under audit.

10. According to the information and explanations given to us, the company has not defaulted in repayment of dues to bank and financial institution.

11. In our opinion and according to the information and explanations given to us, the Company has not granted any loans and advances on the basis of security by way of pledge of shares, debenture and other securities.

12. The Company is not a chit fund, or a nidhi/mutual benefit fund/society. Therefore the provisions of clause 4 (xiii) of the Companies (Auditors Report) order 2003 are not applicable to the Company.

13. In our opinion, the company is not dealing in or traded in shares, securities, debentures and other investments. Therefore the provisions of clause 4(xiv) of the Companies (Auditors Report) order 2003 are not applicable to the Company.

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

15. In our opinion and according to the information and explanations given to us, the Company has not applied the term loans for the purpose for which the loans were raised.

16. In our opinion and according to 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. Further, no long-term funds have been used to finance for short-term assets except permanent working capital.

17. According to the information and explanations given to us the Company has not made preferential allotment of shares during the year to parties and Companies covered in the register maintained under section 301 of Companies Act, 2013.

18. According to the information and explanations given to us, the Company has not issued any secured debentures during the year.

19. The Company has not raised any money by way of a public issue during the year ended 31st March, 2015. Therefore the provisions of clause 4(xx) of the Companies (Auditors Report) order, 2003 are not applicable to the Company.

20. According to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the period covered by our audit.

For Rajesh Mehru & Co. Chartered Accountants Firm Reg No. : 011715N

-sd/- Rajesh Mehru Place : Ludhiana Partner Date : 25.05.2015 M. No: 090725


Mar 31, 2014

We have audited the accompanying financial statements of Pact Industries Limited which comprise the Balance Sheet as at March 31, 2014, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in sub? section (3C) of section 211 of the Companies Act, 1956. 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 have 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 misstatements.

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;

(b) in the case of the Profit and Loss Account, of the loss for the year ended on that date;

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

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order, 2003 ("the Order") issued by the Central Government of India in terms of sub? section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

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

- 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;

- 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 and proper returns adequate for the purposes of our audit have been received from branches not visited by us;

- The balance sheet, statement of profit and loss, and cash flow statement dealt with by this report are in agreement with the books of account and with the returns received from branches not visited by us;

- In our opinion, the balance sheet, statement of profit and loss, and cash flow statement comply with the accounting standards referred to in subsection (3c) of section 211 of the companies act, 1956;

- 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.

1. In respect of the Company''s fixed assets:

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

(b) According to the information and explanations given to us, the fixed assets have been physically verified by the management during the year. No material discrepancies were noticed on such physical verification. In our opinion the frequency of physical verification of fixed assets is reasonable having regard to the size of the Company and nature of its business.

(c) In our opinion and according to information and explanation given to us, the company has not disposed off substantial part of its fixed assets during the year and going concern status of the company is accordingly not affected.

2. In respect of the Company''s inventories:

(b) As explained to us, the inventory has been physically verified during the year by the management at reasonable intervals..

(c) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories followed by the management as evidenced by the written procedures and instruction are reasonable and adequate in relation to the size of the company and nature of its business.

(d) The company is maintaining proper records of inventories.

3. (a) According to the information and explanations given to us, the company has not granted any loan to Companies or other parties covered in the register maintained under section 301 of the companies act, 1956.

(b) The company has taken unsecured loans from parties covered in the register maintained under section 301 of the Companies Act, 1956 and had also repaid some amount to same persons.

(c) In our opinion and according to the information and explanations given to us rate of interest and other terms and conditions on which loan have been taken from parties listed in the register maintained under section 301 of the Companies Act, 1956 are not prima-facie prejudicial to the interest of the company.

(d) In our opinion and according to the information and explanations give to us. The payment of principal amount and interest in respect to the aforesaid loans is regular. There is no overdue amount of loans taken from Companies, Firms, or other parties listed in the register maintained under section 301 of the Companies Act, 1956.

4. In our opinion and according to the information and explanations given to us, these are adequate internal control procedures commensurate with the size of the company and the nature of its business, with regards to purchase of inventories, fixed assets and with regard to sale of goods. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal controls system.

5. In respect of contracts or arrangements entered in the Register maintained in pursuance of Section 301 of the Act.

(a) In our opinion and 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, 1961 has been so entered.

(b) In our opinion and according to the information and explanations given to us, there is no transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and which exceed Rs. 5.00 Lacs or more in respect of each party during the year have been made at prices which are reasonable having regard to the prevalent market prices at the relevant time.

6. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public in pursuance of section 58A and 58AA of the Companies Act, 1956.

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

8. The Central Govt. has not prescribed maintenance of cost records under section 209(1) (d) of the Companies Act, 1956 for any of the products of the Company.

9. According to the information and explanations given to us, in respect of statutory dues:

a) We are of the opinion that the Company has been regular in depositing undisputed statutory dues.

b) We are of the opinion that no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31.03.2014 for a period of more than six months from the date of they becoming payable.

c) We are of the opinion that there are no dues of Sale-Tax, Income Tax, Wealth Tax, Excise duty and cess which have not deposited on account of any dispute.

10. The company does not have accumulated losses at the end of financial year which are more than fifty percent of its net worth. The company has not incurred cash losses during the financial year covered under audit.

11. According to the information and explanations given to us, the company has not defaulted in repayment of dues to bank and financial institution.

12. In our opinion and according to the information and explanations given to us, the Company has not granted any loans and advances on the basis of security by way of pledge of shares, debenture and other securities.

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

14. In our opinion, the company is not dealing in or traded in shares, securities, debentures and other investments. Therefore the provisions of clause 4(xiv) of the Companies (Auditors Report) order 2003 are not applicable to the Company.

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

16. In our opinion and according to the information and explanations given to us, the Company has applied the term loans for the purpose for which the loans were raised.

17. In our opinion and according to 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. Further, no long-term funds have been used to finance for short-term assets except permanent working capital.

18. According to the information and explanations given to us the Company has not made preferential allotment of shares during the year to parties and Companies covered in the register maintained under section 301 of Companies Act, 1956.

19. According to the information and explanations given to us, the Company has not issued any secured debentures during the year.

20. The Company has not raised any money by way of a public issue during the year ended 31st March, 2014. Therefore the provisions of clause 4(xx) of the Companies (Auditors Report) order, 2003 are not applicable to the Company.

21. According to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the period covered by our audit.

For Rajesh Mehru & Co. Chartered Accountants Firm''s Registration Number : 011715N

(Rajesh Mehru) (Partner) (Membership Number: 090725) Ludhiana, September 05, 2014


Mar 31, 2013

We have audited the accompanying financial statements of Pact Industries Limited Which comprise the Balance Sheet as at March 31. 2013, and the statement of Profit and Loss and Cash Flaw Statement (or the year then ended, and a summary Of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements trial give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in sub-section (3c) of section 211 of the Companies Ad. 1956 This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of Ihe financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Our responsibllity is to express an opinion on these financial statements based on our audit. We have 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 In oblain reasonable assurance about whether the financial statements are free from material misstatements.

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 Lo design audit procedures that are appropriate in the circumstances. An audit also Includes evaluating the appropriateness of accounting polities used end the reasonableness of ihe accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

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

Opinion

In our opinion end 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 slate of affairs of die Company as" at March 51, 2013:

(b) in the case of the Profit and Loss Account of the loss for the year ended on that dale;

Report on Other Legal and Regulatory Requirements

1 As required by the Companies (Auditor's Report) Order, 2003 ('the Order") issued by the Central Government of India in tends of sub section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

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

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

* In our opinion proper books of accpimt as required by law nave been kept by the company so far as appears from our examination of those books and proper returns adequate for the purposes of our audit have been received from branches not visited by us;

* The balance sheet, statement of profit and loss, and cash flow statement dealt with by this report are in agreement with the books Of account and with the returns received from branches not visited by us;

* In our opinion the balance sheet, statement of profit and loss, and cash flow statement comply with the accounting standards referred to in subsection (3c) of section 211 of the companies act, 1956;

* On the basis of written representations received from the directors as on March 31,2013, and taken on record by the board of directors, none of the directors Is disqualified as on march 31. 2013. 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 INDEPENDENT AUDITORS' REPORT

(Referred to In paragraph 1 under 'Report on other Legal and Regulatory Requirements' section of our report of even date)

1. In respect of the Company's fixed assets:

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

(b) According to the information and explanations given to us, the fixed assets have been physically verified by the management during the year No material discrepancies were noticed on such physical verification In our opinion the frequency of physical verification of fixed assets is reasonable having regard to the size of the Company and nature of its business,

(c) In our opinion and according to information and explanation given to us. the company has not disposed off substantial part of its fixed assets during the year and going concern status of the company is accordingly not affected.

2. In respect of the Company's inventories:

(b) As explained to us, the inventory has been physically verified during the year by the management at reasonable intervals,.

(c) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories followed by the management as evidenced by the written procedures and instruction are reasonable and adequate in relation to the size of the company and nature of its business.

(d) The company is maintaining proper records of inventories.

3. (a) According to the information and explanations given to us, the company has not granted any loan to Companies or other parties covered in the register maintained under section 301 of the companies act, 1956.

(b) The company has taken unsecured loans from parties covered in the register maintained under section 301 of the Companies Act, 1956 and had also repaid some amount to same persons.

(c) In our opinion and according to the information and explanations given to us rate of interest and other terms and conditions on which loan have been taker from parties listed in the register maintained under section 301 of the Companies Act, 1956 are not prima-facie prejudicial to the interest of the company.

(d) In our opinion and according to the information and explanations give to us The payment of principal amount and interest in respect to the aforesaid loans is regular. There is no overdue amount of loans taken from Companies. Finns, or other parties listed in the register maintained under section 301 of the Companies Act, 1956.

4. In our opinion and according to the information and explanations given to us, these are adequate internal control procedures commensurate with the size of the company and the nature of its business, with regards to purchase of inventories, fixed assets and with regard to sale of goods. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal controls system

5. In respect of contracts or arrangements entered in the Register maintained in pursuance of Section 301 of the Act.

(a) In our opinion and 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, 1961 has been so entered

(b) In our opinion and according to the information and explanations given to us, there is no transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and which exceed Rs. 5.00 Lacs or more in respect of each party during the year have been made at prices which are reasonable having regard to the prevalent market prices at the relevant time.

6. In our opinion and according to the information and explanations given to us. the Company has not accepted any deposits from the public in pursuance of section 58A and 58AA of the Companies Act, 1956.

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

8. The Central Govt, has not prescribed maintenance of cost records under section 209(1) (d) of the Companies Act, 1956 for any of the products of the Company.

9. According to the information and explanations given to us, in respect of statutory dues:

a) We are of the opinion that the Company has been regular in depositing undisputed statutory dues.

b) We are of the opinion that no undisputed amounts payable In respect of the aforesaid dues were outstanding as at 31.03.2013 for a period of more than six months from the date of they becoming payable.

c) We are of the opinion that there are no dues of Sale-Tax. Income Tax, Wealth Tax, Excise duty and cess which have not deposited on account of any dispute.

10. The company does not have accumulated losses at the end of financial year which are more than fifty percent of its net worth The company has not incurred cash losses during the financial year covered under audit.

11. According to the information and explanations given to us, the company has not defaulted in repayment of dues to bank and financial institution.

12. In our opinion and according to the information and explanations given to us, the Company has not granted any loans and advances on the basis of security by way of pledge of shares, debenture and other securities.

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

14. In our opinion, the company is not dealing in or traded in shares, securities, debentures and other investments. Therefore the provisions of clause 4(xiv) of the Companies (Auditors Report) order 2003 are not applicable to the Company.

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

16. In our opinion and according to the information and explanations given to us, the Company has applied the term loans for the purpose for which the loans were raised.

17. In our opinion and according to 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 Further, no long-term funds have been used to finance for short-term assets except permanent working capital.

16. According to the information and explanations given to us the Company has not made preferential allotment of shares during the year to parties and Companies covered in the register maintained under section 301 of Companies Act, 1956.

19. According to the information and explanations given to us, the Company has not issued any secured debentures during the year.

20. The Company has not raised any money by way of a public issue during the year ended 31st March, 2013. Therefore the provisions of clause 4(xx) of the Companies (Auditors Report) order, 2003 are not applicable to the Company

21. According to the information and explanations given to us no fraud on or by the Company has been noticed or reported during the period covered by our audit.

For Rajesh Mehru & Co. Chartered Accountants Firm's Registration Number 011715N

(Rajesh Mehru) (Partner) (Membership Number 090725)

Ludhiana, September 05. 2013




Mar 31, 2012

1. We have audited the attached Balance Sheet of M/s PACT INDUSTRIES LIMITED as at 31st March, 2012 and the Profit & Loss Account 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 a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation we believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditor''s Report) Order 2003 issued by the Central Government in 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 in paragraph 3 above we reports that:

a) 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.

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, profit and loss account and cash flow statement dealt with by this report are in agreement with the books of account.

d) In our opinion the balance sheet profit and loss account dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956.

e) On the basis of copies of Form-DD-A received from directors confirming that they have not incurred disqualification under section 274(1)(g) in respect of companies mentioned therein, in the financial year ending 31st March, 2012 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March, 2012 from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956.

f) The provisions of section 441A of the Companies Act, 1956 regarding the levy and collection of cess on turnover or gross receipts of the Companies have not yet been notified by the Central Government. Accordingly, we are unable to express our opinion on the compliance of the said section in terms of clause (g) of sub-section (3) of section 227 of the Act.

g) Subject to above in our opinion and to the best of our information and according to the explanations given to us, the said account read together with significant accounting policies and other notes thereon the 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 profit and loss account of the profit for the year ended on that date:

III) In the case of cash flow statement of the company as at 31st March, 2012.

(i) (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets. During the year fixed assets valued Rs 9294027.91 have been converted into stock in trade and appropriate standards have been followed in this regard.

(b) According to the information and explanations given to us, the fixed assets have been physically verified by the management during the year. No material discrepancies were noticed on such physical verification. In our opinion the frequency of physical verification of fixed assets is reasonable having regard to the size of the Company and nature of its business.

(c) In our opinion and according to information and explanation given to us, the company has not disposed off substantial part of its fixed assets during he year and going concern status of the company is accordingly not affected.

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

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

(c) The company is maintaining proper records of inventories.

(iii) (a) According to the information and explanations given to us, the company has not granted unsecured loan to Companies or other parties covered in the register maintained under section 301 of the companies act, 1956.

(b) The company has taken unsecured loan from one party covered in the register maintained under section 301 of the Companies Act, 1956. .

(c) In our opinion and according to the information and explanations given to us rate of interest and other terms and conditions on which loan have been taken from parties listed in the register maintained inder section 301 of the Companies Act, 1956 are not prima-facie prejudicial to the interest of the company.

(d) In our opinion and according to the information and explanations give to us. The payment of principal amount and interest in respect to the aforesaid loans is regular. There is no overdue amount of loans taken from Companies, Firms, or other parties listed in the register maintained under section 301 of the Companies Act, 1956.

(iv) In out opinion and according to the information and explanations given to us, these are adequate internal control procedures commensurate with the size of the company and the nature of its business, for the purchase of inventories, fixed assets and with regard to sale of goods. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal controls system.

(v) (a) In our opinion and 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, 1961 has been so entered.

(b) In our opinion and according to the information and explanations given to us, there is no transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and which exceed Rs. 5.00 Lacs or more in respect of each party during the year have been made at prices which are reasonable having regard to the prevalent market prices at the relevant time.

(vi) In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public in pursuance of section 58A and 58AA of the Companies Act, 1956.

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

(viii) The Central Govt. has not prescribed maintenance of cost records under section 209(1) (d) of the Companies Act, 1956 for any of the products of the Company.

(ix). (a) According to the information and explanations given to us and on an examination of the records of the Company we are of the opinion that the Company has been regular in depositing undisputed statutory dues.

(b) According to the information and explanation given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31.03.2012 for a period of more than six months from the date of they becoming payable.

(c) According to the information and explanations given to us, there are no dues of Sale-Tax, Income Tax, Wealth Tax, Excise duty and cess which have not deposited on account of any dispute.

(x) The company does not accumulated losses at the end of financial year which are more than fifty percent of its net worth. The company has not incurred cash losses during the financial year covered under audit.

(xi) According to the information and explanations given to us, the company has not defaulted in repayment of dues to bank and financial institution.

(xii) In our opinion and according to the information and explanations given to us, the Company has not granted any loans and advances on the basis of security by way of pledge of shares, debenture and other securities.

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

(xiv) In our opinion, the company is not dealing in or traded in shares, securities, debentures and other investments. Therefore the provisions of clause 4(xiv) of the Companies (Auditors Report) order 2003 are not applicable to the Company.

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

(xvi) In our opinion and according to the information and explanations given to us, the Company has applied the term loans for the purpose for which the loans were raised.

(xvii) In our opinion and according to 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. Further, no long-term funds have been used to finance for short-term assets except permanent working capital.

(xviii) According to the information and explanations given to us 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 Companies Act, 1956.

(xix) According to the information and explanations given to us, the Company has not issued any secured debentures during the year.

(xx) The Company has not raised any money by way of a public issue during the year ended 31st March,.2012. Therefore the provisions of clause 4(xx) of the Companies (Auditors Report) order, 2003 are not applicable to the Company.

(xxi) According to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the period covered by our audit.

PLACE : LUDHIANA FOR RAJESH MEHRU & CO. CHARTERED ACCOUNTANTS DATED : 01.09.2012 PARTNER


Mar 31, 2011

1. We have audited the attached Balance Sheet of M/s Pact Industries Limited as at 31st March, 2011 and the Profit & Loss Account 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 a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation we believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditor''s Report) Order 2003 issued by the Central Government in 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 in paragraph 3 above we reports that:

a) 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.

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 sheets, profit and loss account dealt with by this report are in agreement with the books of account.

d) In our opinion the balance sheet profit and loss account dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956.

e) On the basis of copies of Form-DD-A received from directors confirming that they have not incurred disqualification under section 274(1)(g) in respect of companies mentioned therein, in the financial year ending 31st March, 2011 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March, 2011 from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956.

f) The provisions of section 441A of the Companies Act, 1956 regarding the levy and collection of cess on turnover or gross receipts of the Companies have not yet been notified by the Central Government. Accordingly, we are unable to express our opinion on the compliance of the said section in terms of clause (g) of sub-section (3) of section 227 of the Act.

g) Subject to above in our opinion and to the best of our information and according to the explanations given to us, the said account read together with significant accounting policies and other notes thereon the 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, 2011.

II) In the case of profit and loss account of the profit for the year ended on that date:

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

(b) According to the information and explanations given to us, the fixed assets have been physically verified by the management during the year. No material discrepancies were noticed on such physical verification. In our opinion the frequency of physical verification of fixed assets is reasonable having regard to the size of the Company and nature of its business.

(c) In our opinion and according to information and explanation given to us, the company has not disposed off substantial part of its fixed assets during he year and going concern status of the company is accordingly not affected.

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

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

(c) The company have proper records of inventories.

(iii) (a) According to the information and explanations given to us, the company has not granted unsecured loan to Companies or other parties covered in the register maintained under section 301 of the companies act, 1956.

(b) The company has taken unsecured loan from party''s covered in the register maintained under section 301 of the Companies Act, 1956.The amount involved in the transactions for loans is Rs.3450349.67/- (c) In our opinion and according to the information and explanations given to us rate of interest and other terms and conditions on which loan have been taken from parties listed in the register maintained under section 301 of the Companies Act, 1956 are not prima-facie prejudicial to the interest of the company.

(d) In our opinion and according to the information and explanations give to us. The payment of principal amount and interest in respect to the aforesaid loans is regular. There is no overdue amount of loans taken from Companies, Firms, or other parties listed in the register maintained under section 301 of the Companies Act, 1956.

(iv) In our opinion and according to the information and explanations given to us, these are adequate internal control procedures commensurate with the size of the company and the nature of its business, for the purchase of inventories, fixed assets and with regard to sale of goods. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal controls system.

(v) (a) In our opinion and 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, 1961 has been so entered.

(b) In our opinion and according to the information and explanations given to us, there is no transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and which exceed Rs. 5.00 Lacs or more in respect of each party during the year have been made at prices which are reasonable having regard to the prevalent market prices at the relevant time.

(vi) In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public in pursuance of section 58A and 58AA of the Companies Act, 1956.

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

(viii) The Central Govt. has not prescribed maintenance of cost records under section 209(1) (d) of the Companies Act, 1956 for any of the products of the Company.

(ix). (a) According to the information and explanations given to us and on an examination of the records of the Company we are of the opinion that the Company has been regular in depositing undisputed statutory dues.

(b) According to the information and explanation given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31.03.2010 for a period of more than six months from the date of they becoming payable.

(c) According to the information and explanations given to us, there are no dues of Sale-Tax, Income Tax, Wealth Tax, Excise duty and cess which have not deposited on account of any dispute.

(x) The company does not have accumulated losses at the end of financial year which are more than fifty percent of its net worth. The company has not incurred cash losses during the financial year covered under audit.

(xi) According to the information and explanations given to us, the company has not defaulted in repayment of dues to bank and financial institution.

(xii) In our opinion and according to the information and explanations given to us, the Company has not granted any loans and advances on the basis of security by way of pledge of shares, debenture and other securities.

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

(xiv) In our opinion, the company is not dealing in or traded in shares, securities, debentures and other investments. Therefore the provisions of clause 4(xiv) of the Companies (Auditors Report) order 2003 are not applicable to the Company.

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

(xvi) In our opinion and according to the information and explanations given to us, the Company has applied the term loans for the purpose for which the loans were raised.

(xvii) In our opinion and according to 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. Further, no long-term funds have been used to finance for short-term assets except permanent working capital.

(xviii) According to the information and explanations given to us 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 Companies Act, 1956.

(xix) According to the information and explanations given to us, the Company has not issued any secured debentures during the year.

(xx) The Company has not raised any money by way of a public issue during the year ended 31st March,.2011. Therefore the provisions of clause 4(xx) of the Companies (Auditors Report) order, 2003 are not applicable to the Company.

(xxi) According to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the period covered by our audit.

PLACE : LUDHIANA FOR RAJESH MEHRU & CO. CHARTERED ACCOUNTANTS DATED : 05.09.2011 SD/- PARTNER

 
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