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Auditor Report of Pankaj Polymers Ltd.

Mar 31, 2015

We have audited the accompanying financial statements of PANKAJ POLYMERS LIMITED ("The Company"), which comprise the Balance Sheet as at 31st March 2015, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors are responsible for the matters stated in section 134(5) of the Companies Act, 2013 ("the Act") with respect to 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 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 the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the 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 control, that were operating effectively for ensuring the accuracy and completeness of the 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 an adequate internal financial control 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 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 on the financial statements.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements, give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2015, and its profit and its 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, 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 Annexure a statement on matters specified in 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 sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.

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

c. the Balance Sheet, the Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account

d. In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

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

f. With respect to the other matters included in the Auditor's Report and in accordance with Rule 11 of Companies (Audit and Auditors) Rules, 2014 and in our opinion and to the best of our information and explanations given to us:

i. The Company does not have any pending litigations which would impact its financial position.

ii. The Company did not have any long-term contracts including derivatives contracts for which there were any material foreseeable losses.

iii. There were no amounts which required to be transferred to the Investor Education and Protection Fund by the Company

Annexure referred to in paragraph 1 of our report of even date RE: Pankaj Polymers Limited

i. a) The Company has maintained proper records showing full particular including quantitative details

and situation of fixed assets.

b) As explained to us, the fixed assets have been physically verified by the management according to the phased program designed to cover all the fixed assets over the year. In respect of fixed assets verified according to this program, which we consider reasonable, no material discrepancies were noticed on such verification.

ii. a) As explained to us, inventories have been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.

b) The procedures explained to us, which are followed by the management for physical verification of inventories, are in our opinion reasonable and adequate in relation to the size of the company and nature of its business.

c) The Company is maintaining proper records of inventory and no material discrepancies were noticed on physical verification.

iii. No loans were granted by the Company, to any of the parties covered in the register maintained under section 189 of the Act. Hence we have not reported on the related matters of this clause and sub-clauses (a)and(b).

iv. In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the company and the nature of its business with regard to purchase of inventory and fixed assets and for sale of goods and power. We have not observed any major weakness in the internal control system during the course of the audit.

v. The Company has not accepted any deposits from the public within the meaning of sections 73 to 76 or any other relevant provisions of the Act and rules framed there under.

vi. Maintenance of Cost Records under Section 148(1) of the Act, is not required for the activity carried out by the Company.

vii. a) The Company is regular in depositing undisputed statutory dues with appropriate authorities including Provident Fund, Employees' State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Duty of Customs, Duty of Excise, Value Added Tax, Cess and any other statutory dues applicable to it.

b) According to the information and explanations given to us, no undisputed amounts payable in respect of Income Tax, Sales Tax, Wealth Tax, Service Tax, Duty of Customs, Duty of Excise, Value Added Tax or Cess were in arrears as at 31st March, 2015 for a period more than six months from the date they became payable.

c) According to the information and explanations given to us, there are no dues of Income Tax, Sales Tax, Wealth Tax, Service Tax, Duty of Customs, Duty of Excise, Value Added Tax or Cess which have not been deposited on account of any dispute other then mention below.

S Name of the Nature of Amount Forum where dispute No Statute Dues (in Rs) is pending

1. Sales Tax Act Sales Tax 843346/- Appellate Jurisdiction

d) In our opinion, there are no amounts required to be transferred to the Investor Education and Protection Fund by the Company.

viii. The Company has no accumulated losses at the end of the financial year and it has not incurred cash loss during the year covered by audit and in the immediately preceding financial year.

ix. According to the records of the Company examined by us and the information and explanations given to us, the company has not defaulted in repayment of dues to any financial institution or bank or debenture holders, as applicable, as at the Balance sheet date.

x. The Company has not given any guarantee for loans taken by others from bank or financial institutions.

xi. In our opinion and according to the information and explanations given to us, the term loans have been applied for the purposes for which they were obtained.

xii. During the course of our examination of the books and records of the Company, carried out in accordance with the Generally Accepted Accounting Practice in India and according to the information and explanations given to us, we have neither come across any instance of fraud on or by the Company noticed or reported during the year, nor have we been informed of such case by the management.

FOR LUHARUKA& ASSOCIATES CHARTERED ACCOUNTANTS FRN:-01882S

Sd/- (RAMESH CHAND JAIN) Place: Secunderabad (PARTNER) Date: 25.05.2015 (M. NO. 23019)


Mar 31, 2014

We have audited the accompanying financial statements of PANKAJ POLYMERS LIMITED (''the Company'') which comprise the Balance Sheet as at 31st March 2014, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information.

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards notified under the Companies Act, 1956 ("the Act") read with the General Circular 1 5/201 3 dated 13th September 2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 201 3.This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor''s Responsibility

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

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

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

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

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the 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:

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

(ii) in the case of the Statement of Profit and Loss, of the loss 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.

Report on Other Legal and Regulatory Requirements

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

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

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

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

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

d) in our opinion, the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement comply with the Accounting Standards notified under the Companies Act, 1956 read with the General Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in respect of section 1 33 of the Companies Act, 2013; and

e) on the basis of written representations received from the directors as on 31 March 2014, and taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2014, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1 956.

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

1. In respect of its fixed assets:

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

b) As explained to us, all the fixed assets have been physically verified by the management in a phased periodical manner, 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) In our opinion, the Company has not disposed off a substantial part of its fixed assets during the year and the going concern status of the Company is not affected.

2. In respect of its inventories:

a) The inventories have been physically verified during the year by the Management. In our opinion, the frequency of verification 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 are reasonable and adequate in relation to the size of the Company and the nature of its business.

c) The Company has maintained proper records of inventories. As explained to us, there were no material discrepancies noticed on physical verification of inventories as compared to the book records.

3. In respect of the loans, secured or unsecured, granted or taken by the Company to / from companies, firms or other parties in the register maintained Under Section 301 of the Companies Act, 1 956:

(a) The company has given loans to 1 party. In respect of the said loan, the maximum amount outstanding at any time during the year was Rs.15 lakhs and the year end balance is Rs.NIL

(b) In our opinion and according to the information and explanations given to us, the rate of interest and other terms and conditions of the loan given by the company, are not prima facie prejudicial in the interest of the company.

(c) The company has taken loan from 1 party during the year. In respect of the said loan, the maximum balance outstanding at any tine during the year was Rs.21.28 lacks and the year end balance is Rs.1 3.18 lacks

(d) In our opinion the rate of interest and other terms and conditions on which loans have been taken from companies, or firms or other parties are not prima facie prejudicial in the interest of the company.

(e) The company is regular in repaying the principal amounts as stipulated and has been regular in the payment of interest, wherever applicable.

4. In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business for the purchases of inventory and fixed assets and for the sale of goods and services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control system.

5. In respect of the contracts or arrangements referred to in Section 301 of the Companies Act, 1956:

(a) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contractors / arrangements that need to be entered in the register maintained under Section 301 of the Companies Act, 1 956 have been so entered.

(b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts / arrangements entered in the Register maintained Under Section 301 of the Companies Act, 1 956 and exceeding the value of in Rs. 5, 00,000 in respect of each party during the year have been made at prices which appear reasonable as per information available with the Company.

6. According to the information and explanations given to us, the Company has not accepted any deposit from the public. Therefore, the provisions of Clause (vi) of paragraph 4 of the Order are not applicable to the company.

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

8. We have broadly reviewed the cost records maintained by the company pursuant to the companies (Cost accounting records) Rules, 2011 prescribed by the Central Government under section 209 (1) (d) of the Companies Act, 1956 and are of the opinion that prima facie the prescribed cost records have been maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they-are accurate or complete.

9. In respect of statutory dues

a) According to the records of title Company, undisputed statutory dues including Provident Fund, Employees'' State Insurance, Income Tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Cess, and other statutory dues have been generally regularly deposited with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at March 31, 2014 for a period of more than 6 months from the date of becoming payable.

b) The disputed statutory dues aggregating Rs.8.43 lacks that have not been deposited on account of disputed matters pending before appropriate authorities are as under

S. Name of the Statute Nature of Dues Amount (Rs.) Financial No. Year

1. Maharastra Sales tax and 843346/- 2002-2003 Sales Tax Act Interest

S. Name of the Statute Forum Where No. Dispute

1. Maharastra Jt. c ommissioner Sales Tax Act Tax (Appeals)

10. The Company does not have accumulated losses at the end of the financial year. The Company has not incurred Cash losses during the Financial Year covered by the Audit and in the immediately preceding financial year.

11. Based on our audit procedures and according to the information and explanations given to us, we are of the opinion that the Company has not defaulted in repayment of dues to financial institutions, banks and debenture.

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

13. In our opinion, the company is not a chit fund/ nidhi / mutual benefit fund / society. Therefore, the provisions of clause (xiii) of paragraph 4 of the order are not applicable to the company.

14. The company has maintained proper records of the transactions and contracts in respect of dealing or trading in Shares, securities, debentures and other investments and timely entries have been made therein. All shares, securities, debentures and other investments have been held by the company in its own name.

15. According to the information and explanations given to us, the company has not given guarantees for loans taken by others from bank or financial institutions, the terms and conditions thereof in our opinion are not prima facie prejudicial to the interest of the company .

16. The company has not raised any 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 are of the opinion that there are no funds raised on short-term basis that have been used for long term investment.

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

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

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

21. In our opinion and according to the information and explanations given to us, no material fraud on or by the Company has been noticed or reported during the year.

For LUHARUKA & ASSOCIATES CHARTERED ACCOUNTANTS (Firm Registration No 01 882S)

Sd/- Place: Secunderabad Rameshchand Jain Date: 29-05-2014 (Partner) (M. No. 023019)


Mar 31, 2013

Report on the financial statements

We have audited the accompanying financial statements of Pankaj Polymers Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2013, 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 responsible for the financial statements

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

Auditor''s Responsibility

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

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

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

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid 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, 2013;

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

c) In the case of the Cash Flow Statement, of the cash flows for the year ended on that date. Report on other Legal and Regulatory Requirements

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

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

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

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

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

d) in our opinion, the Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement comply with the Accounting Standards referred to in subsection (3C) of section 211 of the Companies Act, 1956;

e) 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 AUDITORS'' REPORT REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE

1 . In respect of its fixed Assets:

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

b) As explained to us, all the fixed assets have been physically verified by the management in a phased periodical manner, 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) In our opinion, the Company has not disposed off a substantial part of its fixed assets during the year and the going concern status of the Company is not affected.

2 . In respect of Inventories:

a) The inventories have been physically verified during the year by the management. In our opinion, the frequency of verification 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 are reasonable and adequate in relation to the size of the Company and the nature of its business.

c) The Company has maintained proper records of inventories. As explained to us, there were no material discrepancies noticed on physical verification of inventories as compared to the book records.

3. In respect of the loans, secured or unsecured, granted or taken by the Company to / from companies, firms or other parties in the register maintained Under Section 301 of the Companies Act, 1956:

a) The Company has not given any loans during the year to any parties.

b) The Company has taken loans from 1 party during the year. In respect of the said loan, the maximum balance outstanding at any time during the year was Rs. 29.28 lacks and the year end balance is Rs.21.28 Lacks.

c) In our opinion the rate of interest and other terms and conditions on which loans have been taken from companies, or firms or other parties are not prima facie prejudicial in the interest of the company.

d) The company is regular in repaying the principal amounts as stipulated and has been regular in the payment of interest, wherever applicable.

4. In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business for the purchases of inventory and fixed assets and for the sale of goods and services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control system.

5. In respect of the contracts or arrangements referred to in Section 301 of the Companies Act, 1956:

a) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contractors / arrangements that need to be entered in the register maintained under Section 301 of the Companies Act, 1956 have been so entered.

b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts / arrangements entered in the Register maintained Under Section 301 of the Companies Act, 1956 and exceeding the value of in Rs.5, 00,000 in respect of each party during the year have been made at prices which appear reasonable as per information available with the Company.

6. According to the information and explanations given to us, the Company has not accepted any deposit from the public.Therefore, the provisions of Clause (vi) of paragraph 4 of the Order are not applicable to the company.

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

8. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Accounting Records) Rules, 2011 prescribed by the Central Government under section 209 (I ) (d) of the Companies Act, 1956 and are of the opinion that prima facie the prescribed cost records have been maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they-are accurate or complete.

9. In respect of statutory dues:

a) According to the records of tile Company, undisputed statutory dues including Provident Fund, Employees'' State Insurance , Income -Tax, Sales Tax, , Service Tax, Customs Duty, Excise Duty, Cess, and other statutory dues have been generally regularly deposited with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at March 31, 2013 for a period of more than 6 months from the date of becoming payable.

b) The disputed statutory dues aggregating Rs.8.43 lacks that have not been deposited on account of disputed matters pending before appropriate authorities are as under:

S No Name of the Statute Nature of Amount Financial Forum where Dues (in Rs) Year dispute

1. Sales Tax Act Sales Tax and 843346/- 2002-2003 Jt. Commissioner Sales Interest Tax (Appeals)

10 The Company does not have accumulated losses at the end of the financial year. The Company has not incurred cash losses during the financial year covered by the audit and in the immediately preceding financial year.

11. Based on our audit procedures and according to the information and explanations given to us, we are of the opinion that the Company has not defaulted in repayment of dues to financial institutions, banks and debenture.

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

13. In our opinion, the company is not a chit fund/ nidhi / mutual benefit fund / society. Therefore, the provisions of clause (xiii) of paragraph 4 of the order are not applicable to the company.

14. The Company has maintained proper records of the transactions and contracts in respect of dealing or trading in shares, securities, debentures and other investments and timely entries have been made therein. All shares, securities, debentures and other investments have been held by the Company in its own name.

15. According to the information and explanations given to us, the company has not given guarantees for loans taken by others from bank or financial institutions , the terms and conditions thereof in our opinion are prima facie prejudicial to the interest of the company .

16. The Company has raised new term loans during the year, and has been applied for the purposes for which they were raised.

17. According to the information and explanations given to us and on an overall examination of the Balance sheet of the Company, we are of the opinion that there are no funds raised on short-term basis that have been used for long term investment.

18. The Company has not made any preferential Allotment of shares to Patties and companies covered in the Register maintained under Section 301 of the Companies Act, 1956,

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

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

21. In our opinion and according to the information and explanations given to us, No material fraud on or by the Company has been noticed or reported during the year.

For LUHARUKA & ASSOCIATES

CHARTERED ACCOUNTANTS

F.R. No. 01882 S

Sd/-

(RAMESHCHAND JAIN)

Place : Secunderabad Partner

Date : 30.05-2013 Membership No. 023019


Mar 31, 2012

1. We have audited the attached Balance Sheet of PANKAJ POLYMERS LIMITED as at March 31, 2012, the Statement of Profit and Loss and the Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with the Auditing Standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement. 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 of India in terms of sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

4. Further to our comments in the Annexure referred to in paragraph 3 above, we report that:

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

b) In our opinion, proper books of accounts as required by law have been kept by the Company so far as it 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 accounts.

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

e) On the basis of written representations received from the directors as on 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) In our opinion and to the best of information and according to the explanations given to us, the said accounts read together with the Significant accounting Policies and notes thereon give the information required by the Companies, Act, 1956 in the manner so required and true and fair view in conformity with the accounting principles generally accepted in India.

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

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

and

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

ANNEXURE REFERRED TO IN PARAGRAPH 3 OF THE AUDITORS' REPORT ON THE ACCOUNTS OF M/S. PANKAJ POLYMERS LIMITED

1. In respect of its fixed Assets :-

a. The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets on the basis of available information.

b) As explained to us all the fixed assets have been physically verified by the management in a phased periodical manner, 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) In our opinion, the Company has not disposed off a substantial part of its fixed assets during the year and the going concern status of the Company is not affected. The transfer of substantial assets as per the scheme of arrangement of demerger Under Section 391 & 394 of the Act doesn't effect the going concern concept of the company.

2. In respect of Inventories :-

a. The inventories have been physically verified during the year by the management. In our opinion, the frequency of verification 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 are reasonable and adequate in relation to the size of the Company and the nature of its business.

c The Company has maintained proper records of inventories. As explained to us, there was no material discrepancies noticed on physical verification of inventories as compared to the book records.

3. In respect of the loans, secured or unsecured, granted or taken by the Company to / from companies, firms or other parties in the register maintained Under Section 301 of the Companies Act, 1956:

a. The Company has given loans to 3 parties in respect of the said loans; the maximum amount outstanding at any time during the year was Rs.1 Crore and the year-end balance is Rs. 52.25 Lacs .

b. In our opinion and according to the information and explanations given to us, the rate of interest and other terms and conditions of the loans given by the Company, are not prima facie the interest of the Company.

c. In respect of the said loans there are no overdue amounts.

d. The Company has taken loan from 2 parties during the year listed in the Register maintained under Section 30I of the Companies Act, 1956. The maximum balance was Rs. 2 Crores and year end balance is Nil.

e. In our opinion the rate of interest and other terms and conditions on which loans have been taken from companies, firms or other parties listed in the register maintained U/s. 301 of the Companies Act, 1956 are not prima facie prejudicial in the interest of the company.

f. The company is regular in repaying the principal amounts as stipulated and has been regular in the payment of interest wherever applicable.

4. In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business for the purchases of inventory and fixed assets and for the sale of goods and services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control system.

5. In respect of the contracts or arrangements referred to in Section 301 of the Companies Act, 1956:

a. In our opinion and according to the information and explanations given to us , the transactions made in pursuance of contractors / arrangements that need to be entered in the register maintained under Section 30 I of the Companies Act, 1956 have been so entered.

b In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts / arrangements entered in the Register maintained Under Section 301 of the Companies Act, 1956 and exceeding the value of in Rs.5, 00,000 in respect of each party during the year have been made at prices which appear reasonable as per information available with the Company.

6. According to the information and explanations given to us, the Company has not accepted any deposit from the

public. Therefore, the provisions of Clause (vi) of paragraph 4 of the Order are not applicable to the Company.

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

8. We. have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Accounting Records) Rules, 2011 prescribed by the Central Government under section 209 (I) ((d) of the Companies Act, 1956 and made the opinion that prima facie the prescribed cost records have been maintained. We have however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.

9. In respect of statutory dues:

a) According to the records of tile Company, undisputed statutory dues including Provident Fund, Employees' State Insurance, Income -Tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Cess, and other statutory dues have been generally regularly deposited with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at March 31, 20J12 for a period of more than 6 months from the date of becoming payable.

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

c) According to the information and explanations given to us the details of disputed Sales tax, Excise Duty, which have not been deposited as at 31st March, 2011 on account of any dispute are as under :-

Statute and Nature Financial year Forum where disputes Amount Rs.

of fees

Sales Tax Act :

1) Sales Tax and Interest 2002-2003 Jt. Commissioner Sales 8,43,346/-

Tax (Appeals)

1 0 The Company does not have accumulated losses at the end of the financial year. The Company has not incurred cash losses during the financial year covered by the audit and in the immediately preceding financial year.

11. Based on our audit procedures and according to the information and explanations given to us, we are of the opinion that the Company has not defaulted in repayment of dues to financial institutions, banks and debenture.

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

1 3. In our opinion, the company is not a chit fund/nidhi/mutual benefit fund/society. Therefore, the provisions of clause (xiii) of paragraph 4 of the order are not applicable to the company.

14. The Company has maintained proper records of the transactions and contracts in respect of dealing or trading in shares, securities, debentures and other investments and timely entries have been made therein. All shares, securities, debentures and other investments have been held by the Company in its own name.

1 5. According to the information and explanations given to us, the company has not given guarantees for loans taken by others from bank or financial institutions.

16. The Company has raised new term loans during the year, and have been applied for the purposes for which they were raised.

17. According to the information and explanations given to us and on an overall examination of the Balance sheet of the Company, we are of the opinion that there are no funds raised on short-term basis that have been used for long term investment.

18. The Company has not made any preferential Allotment of shares to Parties and companies covered in the Register maintained under Section 301 of the Companies Act, 1956.

1 9. The Company has not issued any debentures during the year.

20. The Company has not raised any monies by way of public issues during the year.

21. 1n our opinion and according to the information and explanations given to us, no material fraud on or by the Company has been noticed or reported during the year.

For LUHARUKA & ASSOCIATES CHARTERED ACCOUNTANTS F.R. No. 01882 S



Sd/- (RAMESH CHAND JAIN)

Place : Secunderabad Partner Date : 28-05-2012 Membership No. 023019


Mar 31, 2010

1. We have audited the attached Balance Sheet of M/S. PANKAJ POLYMERS LIMITED as at 31st March, 2010 and Profit and Loss Account and also the Cash Flow Statement for the year ended on that date annexed thereto. These Financial Statements are the responsibility of the Companys Management. Our responsibility is to express an opinion on these financial statements based on our Audit.

2. We conducted our audit in accordance with Auditing Standards generally accepted in India. Those standard require that we plan and perform the audit to obtain reasonable assurance about whether these Financial Statements are free of material mis-statement. An Audit includes examining on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statements presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the statements on Companies (Auditors Report) Order 2003, issued by the Central Government of India in terms of Section 227 (4A) of the Companies Act, 1 956. We enclose in theannexure, a statement on the matters specified in paragraphs 4 and 5 of the said order.

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

I) We have obtained all the information and explanations, which to the best of our knowledge and belief where necessary for the purpose of our audit.

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

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

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

v) On the basis of written representations received from the directors as on 31st March 2010 and taken on record by the Board of Directors. We report that none of the directors is disqualified as on 31st March 2010 from being appointed as a director in terms of Clause (g) of Sub-Section (1) of Section 274 of the Companies Act, 1956.

vi) In our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information required by the Companies Act, 1 956, 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, 201 0.

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

and

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

ANNEXURE REFERRED TO IN PARAGRAPH 3 OF THE AUDITORS REPORT ON THE ACCOUNTS OF M/S. PANKAJ POLYMERS LIMITED

1. In respect of its fixed Assets :-

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

b. All the fixed assets have been physically verified by the Management during the year and no material discrepancies have been noticed on such verification. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the company and the nature of its assets.

c. During the year in our opinion, a substantial part of Fixed Assets have not been disposed off by the company.

2. In respect of Inventories :-

a. As explained to us, the inventories were physically verified by the management at reasonable intervals during the year and in our opinion and according to the information and explanations given to us, the procedure of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

b. In our opinion and according to the information and explanations given to us, the Company has maintained proper records of its inventories and no discrepancies were noticed on such physical verification between physical stock and book records.

3.

a. In our opinion and according to the information and explanations given to us the company has not taken unsecured loans from parties listed in the register maintained U/s. 301 of the Companies Act, 1 956.

b. The Company has granted Unsecured Loan aggregating to Rs.84 lacs (maximum balance) to a company listed in the register maintained U/s. 301 of the Companies Act, 1 956.

c. In our opinion the rate of interest and other terms and conditions on loans given to companies listed in the register maintained U/s. 301 of the Companies Act, 1 956 are not prima-facie prejudicial to the interest of the Company.

d. There are no overdue amount of loans given as referred to in b above.

4. In our opinion and according to the information and explanations given to us, there are adequate internal control procedure commensurate with the size of the Company and nature of the Business with regard to Purchase of Inventory, Fixed Assets and Sale of Goods. During the course of our audit we have not observed any continuing failure to correct major weaknesses in internal control.

5.

a. Based on audit procedures applied by us and according to the information and explanations provided by the management, we are of the opinion that the transactions that need to be entered register maintained U/s. 301 of Companies Act, 1 956 have been so entered.

b. In our opinion and according to the information and explanation given to us, the transaction made in pursuance of contracts or arrangements entered into the register in pursuance to Section 301 of the act, and exceeding the value of Rupees Five Lakhs in respect of any party during the year have been made at prices which are reasonable having regard to the market prices prevailing at the relevant time.

6. In our Opinion and according the information and explanations given to us the Company has not accepted any deposits within the meaning of Section 58 A and 58 AA of the Companies Act, 1 956 and the Companies (Acceptance & Deposits) Rules, 1 975.

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

8. The Central Government has not prescribed maintenance of cost records under Section 209(1 )(d) of the Companies Act, 1 956 for any of the products of the company.

9. According to the information and explanations given to us and on the basis of our examination of the records of the Company, in respect of Statutory and Other Dues.

a) The Company has been regular in Depositing Statutory dues, including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Customs Duty, Excise Duty, Cess and other Statutory Dues with the appropriate authorities during the year.

b) According to the information and explanations given to us no undisputed Amounts are payable in respect of Sales Tax, Income Tax, Custom Duty, Wealth Tax, Excise Duty and Cess for a period of more than six months from the date they became payable.

c) According to the information and explanations given to us the details of disputed Sales tax, Excise Duty, which have not been deposited as at 31s1 March, 2010 ON account of any dispute are as under:-

Statute and Nature Financial year to which Forum where disputes is Amount Rs.

of dues the matter pertains pending

Sales Tax Act :

1) Sales Tax and Interest 2002-2003 Jt. Commissioner Sales 8,43,346/-

Tax (appeals)

2) The Central Excise Act:

Excise Duty (Penalty) 2005 Revision Application with 1,94,933/- Central Govt, of India

10. The company does not have any accumulated losses as at the end of the financial year and has not incurred cash losses during the Current Financial Year and the financial year immediately preceding the current financial year.

11. In our opinion and according to the information and explanations, given to us the company has not defaulted in repayment of dues to Banks.

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

13. In our opinion and according to the information and explanation given to us, the Company is neither a dealer nor a trader in securities.

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

15. The Company did not have any Term Loan, outstanding during the year, accordingly para 4 (XVI) of the order is not applicable.

16. According to other records examined by us and the information and explanations given to us on an overall basis funds raised on short term basis, prima facie has not been used during the year for Long Term Investment (Fixed Assets etc) and Vice Versa.

17. 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.

18. Other Clauses of the Order are not applicable to the Company.



For LUHARUKA & ASSOCIATES

CHARTERED ACCOUNTANTS

F.R. No. 01882S

Sd/-

(RAMESH CHAND JAIN)

Place: Secunderabad Partner

Date : 27-05-2010 Membership No. 023019

 
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