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Auditor Report of Panther Industrial Products Ltd.

Mar 31, 2015

We have audited the accompanying financial statements of Panther Industrial Products Ltd (the "Company"), which comprise the Balance Sheet as at 31st March, 2015, and the Statement of Profit and Loss 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 Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position and financial performance and cash flow of the Company in accordance with the Accounting Standards referred to in Section 133 of the Companies Act, 2013, (the "Act*) read with rule 7 of Companies (Accounts) Rules, 2014 and in accordance with the accounting principles generally accepted in India. The Company's Management is responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the respective assets of the Company and for preventing and detecting frauds and other irregularities; the selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, 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, which have been used for the purpose of preparation of these financial statements by the Management of the Company.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit While conducting the 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 control relevant to the Company's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

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

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the 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 31' March, 2015,

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

and

(c) in the case of cash flow statement, of the cash flows for the year ended on that date. 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 in terms of section 143(11) of the Companies Act, 2013, based on the comments in the auditors' report of the Company. We annex hereto a statement on the matters specified In paragraphs 3 and 4 of the Order.

2. Asrequiredbysection143(3)of the Act, were port that

(a) We have obtained ail 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 so far as appears from our examination of such books;

(i) Reference is invited to note 8(8) and (9) in the significant accounting policies and Notes on Accounts (Notes A &B)to the balance sheet regarding Trade receivable and long-term loans and advances considered good and recoverable by the management Rs 10,02,22,765 and Rs 6,92,75,000 due from certain companies. Though the Company is confident of recovery, in view of huge losses and uncertainty In the business operations of such companies, we are unable to express an opinion with regard to recoverability of such advances,

(ii) In view of our comments in para above, the said accounts, read with the Notes to Accounts appearing in the Significant Accounting Policies and Notes on Accounts (Notes A &B) to the balance sheet give a true and fair view in conformity with the accounting principles generally accepted in India:

(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 and Statement of Profit and Loss and Cash flow Statement comply with the Accounting Standards referred to in Section 133 of the Companies Act 2013 read with rule 7 of Companies (Accounts) Rules, 2014.

(e) On the basis of written representations received from the directors as on 31" March, 2015, and 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

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

(b)The fixed assets were physically verified by the management during the year. According to the information and explanations given to us, no material discrepancies were noticed by the Management on such verification.

2. In our opinion and according to the information and explanations given to us, the Company has not made any purchase of inventories during the year. Therefore, the provisions of the clause 2 of the order are not applicable to the Company.

3. (a) The Company has granted an unsecured loan to a company covered in the Begetter maintained under section 301 of the companies Act, 1956 and the year ended balance is Rs 6,80,81,319.

(b)The rate of interest and other terms and conditions on which loans are given are not, prima fade prejudicial to the interest of the Company.

(c) The Company has taken interest-free unsecured loans from a company covered in the register maintained under section 301 of the Companies Act, 1956. There are no transactions during the year and the year ended balance Is Rs. 1,35,000.

(d) The rate of interest and other terms and conditions on which loans have been taken are not, prima facie, prejudicial to the interest of the Company.

(e) There is no repayment schedule specified for the principal amounts of loans taken and the said loans are interest free.

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

5. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposit during the year. Therefore, the provisions of the clause 3(v) of the order are not applicable to the Company.

6. The provisions of the clause 3(vi) of the order are not applicable to the Company as, the company is not covered by the Companies (Cost Records and Audit) Rules, 2014.

7. (a) According to the information and explanations given to us, the Company is generally regular in depositing the undisputed statutory dues including provident fund, employees' state insurance, investor education and protection fund, income-tax, sales tax, wealth tax, custom duty, excise duty, cess and other statutory dues, where applicable with the appropriate authorities.

(b) According to the information and explanations given to us, particulars of dues income-tax as at 31st March, 2015, which has not been deposited on account of dispute is as under -

Name of the statue Nature of dues Amount (Rs) Period to which the Forum before amount which the relates dispute is pending

Income-tax Act 1961 Income-tax demand 1,32,28.720 A.Y.2001-02 CIT(A)

Income-tax Act, 1961 Income-tax penalty 1,21,56,829 A.Y.2001-02 CIT(A)

(c) The Company is requiring to transfer certain amount to investor education and protection fund, however the same is not transferred to the fund till date.

8. The Company has incurred accumulated losses at the end of the financial year but are not exceeding fifty percent of its net worth and has not incurred cash losses in the financial year under report and in the immediately preceding financial year.

9. The Company has not raised any loan from

10. According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from bank or financial institutions, whereof the terms and conditions are prejudicial to the interest of the Company.

11 .The Company has not obtained any term loans during the year.

12.According to the information and explanations given to us, there has been no fraud by the Company and no material fraud on the Company has been noticed or reported during the year.

For S. KUMAR JAIN & CO

Chartered Accountants

Firm RegJto. 131314W



SAMJAY JAIN

Proprietor

Mumbai, 15th May. 2015 Membership no 39938


Mar 31, 2014

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

Managements Responslbillty for the Flnancial Statements

The Company''s Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position and financial performance of the Company in accordance with the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956 (the "Act*) (which continue to be applicable in respect of Section 133 of the Companies Act, 2013 in terms of General Circular 15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs) and in accordance with the accounting principles generally accepted in India. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement whether due to fraud or error.

Auditor''s Responsibility

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

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company''s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management as weB as evaluating the overall presentation of me 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) ln the case of me Balance Sheet of mestete of affairs of the Companyas at 31st,March, 2014,

(b) ln the ease of the Statement of Profit tar loss,of the loss or the year and

(c) in the case of 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 in terms of section 227(4A) of the Companies Act, 1956, we annex hereto a statement on the matters specified in paragraphs 4 and 5 of the said Order.

2. As required by sectton 227(3) of the Act,were port that

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

(b) In our opinfon proper books of account as required by law have been kepts of aras appears from our examination of such books;

(i) Reference is invited tonoteB(8) and (9) in the significant accounting policies and Notes on Accounts (Notes A &B) to the balance sheet regarding sundrydebtors andbans andadvances considered good and recoverable bythe management Rs 9,37,94,054 andRs 7,78,25,000 due from certain companies. Though the Company Is confident of recovery, in view of huge losses and uncertainty in the business operations of such companies, we are unable to express an opinion wHh regard to recoverabBity of such advances.

(II) In view of our comments in para above, the said accounts, read with the Notes to Accounts appearing in the Significant Accounting Policies and Notes on Accounts (Notes A &B) to the balance sheet give a true and fair view in conformity with the accounting principles generally accepted in India:

(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 complies with the Accounting Standards referred to in subsection (3C) of section 211 of the Companies Act, 1956 (which continue to be applicable in respect of Section 133 of the Companies Act, 2013 in terms of General Circular 15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs).

(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, 1956.

ANNEXURE TO THE AUDITORS'' REPORT (Referred to In paragraph (2) of our Report of even date)

1. The nature of Company''s activities during the year under report have been such that the requirements of clauses 4 (ii) and (xiii) of the Order are not applicable to the Company.

2. (a) The Company has maintantained proper records showing ful particulars, including quantitative details and situation of fixed assetes.

(b) According to the information and explanations given to us, the fixed assets have been physically verified by the management during the year. We are informed that no material discrepancies were noticed by the management on such verification.

3. (a) The Company has granted an unsecured loan, to a company covered in Ihe Register maintained under section 301 oflhe companies Act, 1956 and the year ended balance is Rs 7,78,25,000.

(b)The rate of interest and other terms and conditions on which loans are given are not, prima facto prejudicial to the interest of the Company.

(c) The Company has taken interest-free unsecured loans from a company covered in the register maintained under section 301 of the Companies Act, 1956. There are no transactions during the year and the yearended balance is Rs. 1,35,000.

(d) The rate of Merest and other terms and conditions on which loans have been taken are not, prima facie, prejudicial to the interest of the Company.

(e) There is no repayment schedule specified for the principal amounts of loans taken and the said loans are interest free.

4. In our opinion and according to the information and explanations given to us, there are adequate internal control systems commensurate with the size of the Company and the nature of its business with regard to purchases of inventory, fixed assets and with regard to sale of goods. However, during the year mere Is no purchase of inventory, andsale of goods andtherefore we have neither come across nor we have been informed of any weakness in internal control.

5. (a) According to the information and explanations given to us, we are of the opinion that the particulars of contracts or arrangements that need to be entered into the register maintained under section 301 of the Companies Act, 1956 have been so entered.

(b) In our opinion and according to the information and explanations given to us, there are no transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of rupees five lacs in respect of any party during the year.

6. In our opinion and according to the hlbmiation art explanations given to us, deposit from the pubic within the meaning of sections 58-A and 58AA or ariy other relevant provisions of the CompaniesAct, 1956 arid the rules framed there under.

7. The Company does not have a formal internal audit systems.The Company has no internal audit system. However, in our opinion, the internal controls and Internal checks installed by the Management adequately serve as substitutes for internal audit systems.

8. The Central Government has not prescribed maintenance of cost records under section 209(1 Kd) of the Act

9. (a) According to the information and explanations given to us, the Company is generally regular in depositing undisputed statutory dues including provident fund, employees'' state insurance, investor education and protection fund, income-tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess and other statutory dues with appropriate authorities where applicable. There are no arrears of outstanding statutory dues as at the last day of the relevant period for a period of more than six months from the date they become payable.

(b) According to the information and explanations given to us, particulars of dues income-tax as at 31st March, 2014, which has not been deposited on account of dispute is as under -

Name of the statue Nature of Amount (Rs) Period to which Forum before dues the amount which relatesthe dispute Is pending

Income-tax Act, Income-tax 1.32,28.720 A.Y2001-02 CIT(A) 1961 demand

Income-tax Act, Income-tax 1,21.58.829 A.Y.2001-02 CIT(A) 1961 penealty

10.The Company has no accumulated losses at the end of the financial year and has not incurred cash losses in the financial year under report and in the immediately preceding financial year.

11. The Company has not raised any ban from financial hsfiuttan or rjanJc or on a^ paragraph 4 is nctappfcable.

12-According to the information and explanations given to us, the Company has not granted any loans and advances on the basis of any security by way of pledge of shares, debentures and other securities.

13. There are no transactions and contracts in respect of shares, securities, debentures and other investments. All investments are held bythe Company in Its own name except to the extent and for reason specified in the footnote to Note B(7) in (he Significant Accounting Policies and Notes on Accounts (Notes A &B)tothebalancesheet

14 According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from any bank or financial InsVbMon. However, the Company has pledged securities for loans obtained by associate concerns from a bank

15.The Company has not obtained any term loans during the year.

16.The Company has not raised any funds on short-term basis.

17.The Company has not made any preferential allotment of shares during the year.

18.The Company has not issued any debentures and hence, the question of creating any security or charge in respect thereof does notarise.

19.During the period, the Company has not raised money by public issue.

20 According to the information and explanations giveri to lis, twfrauxicfl or by ttieCorrtpany has been noticed or reported during the period.

For S.KUMAR JAIN & CO Chartered Accountants Finn Reg.No. 131314

SAN JAY JAIN Proprietor Mumbai. 30th May, 2014 Membership no 39938


Mar 31, 2013

We have audited the attached balance sheet of Panther Industrial Products Ltd as at 31st March, 2013 and also the annexed statement of profit and loss and the cash flow statement of the Company for the year ended on that date. 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

1. 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 misstatement. An audit induces 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 presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

2. As required by The Companies (Auditor''s Report) Order, 2003 issued by the Scent: al Government in terms of section 227(4A) of the Companies Act, 1956, we annex hereto a statement on the matters specified in paragraphs 4 and 5 of the said Order.

3. Further, to our comments in paragraph 2 above, we report that

(a) We have obtained all the information and explanations which to the best of our Knowledge and belief were necessary for the 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 appears from our examination of the books;

(c) The Balance Sheet, Statement of Profit and Loss and cash flow statement dealt with by the 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 complies in all material respect with Accounting Standards referred to in Section 211 (3C) of the Companies Act1956;

(e) On the basis of written representations received from the directors of the Company as at 31st March, 2013 and taken on record by the Board of Directors, we report that no director is disqualified from being appointed as director of the Company under clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

(f) In our opinion and to the best of our information and according to the explanations given to us, the accounts subject to -

(i) Refer Note B(8) and (9) in the Significant Accounting Policies and Notes on Accounts (Notes A & B) to the balance sheet regarding sundry debtors and loan s and advances considered good and recoverable by the management Rs 9,97,94,054 and Rs 7,78,25,000 due from certain companies. Though the Company is confident of recovery, in view of huge losses and uncertainty in the business operations of such companies, we are unable to express an opinion with regard for recoverability of such advances.

(ii) In view of our comments in para above, the said accounts, read with the Notes to Accounts appearing in the Significant Accounting Policies and Notes on Accounts (Notes A&B)to the balance sheet give a true and fair view in conformity with the accounting principles generally accepted in India:

give the information required by the Companies Act 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India

(i) in the case of the Balance Sheet of the state of affairs of the Company as at 31st March, 2013.

(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 cash flow statement, of the cash flows for the year ended on that date.

1. The nature of Company''s activities during the year under report have been such that the requirements of clauses 4 (ii) and (xiii) of the Older are not applicable to the Company.

2. (a) The Company maintantained proper records showing 4ul 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. We are informed that no material discrepancies were noticed by the management on such verification.

3. (A) The Company has granted an unsecured loan, to a company covered h the Register maintained under section 301 of the companies Act, 1956 and tie year ended balance is Rs 7,78,25,000.

(b) The rate of interest and other terms and conditions on which loans are given are not, prima fade prejudicial to the interest of the Company.

(c) The Company has taken interest-free unsecured loans from a company covered in the register maintained under section 301 of the Companies Act, 1956. There are no transactions during the year and the year ended balance is Rs. 1,35.000.

(d) The rate of Interest and other terms and conditions on which loans have been taken are not, prima fade, prejudicial to the interest of the Company.

(e) There is no repayment schedule specified for the principal amounts of loans taken and the said loans are interest free.

4. In our opinion and according to the information and explanations given to us, there are adequate internal control systems commensurate with the size of the Company and the nature of its business with regard to purchases of inventory, taxed assets and with regard to sale of goods. However, during the year there is no purchase of inventory, and sale of goods and therefore we have ne Kher come across nor tire have been informed of any madness in lateral control.

5. (a) According to the information and explanations given to us, we are of the opinion that the particulars of contracts or arrangements that need to be entered into the register maintained under section 301 of the Companies Act 1956 have been so entered.

(b) In our opinion end according to the Information and explanations given to us, there are no transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of rupees five lacs in respect of any party during the year.

6. In our opinion and according to the Information and explanations given to us, the Company has not accepted any deposit tom the public within the mean of sections 56Aand 58AA or any other relevant provisions of the Companies Act, 1956 and the rules tamed there under.

7. The Company does not have a forma! internal audit systems. that Company has no internal audit system. However, in our opinion, the internal controls and internal checks installed by the Management adequately serve as substitutes for internal audit systems.

8. The Central Government has not prescribed maintenance of cost records under section 209(1 Xd) of the Act

9. (a) According to the information and explanations given to us, the Company is generally regular in depositing undisputed statutory dues including provident fund, employees'' state insurance, investor education and protection fund, Income-tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess and obiter statutory dues with appropriate authorities where applicable. There are no arrears of outstanding statutory dues as at the last day of the relevant period for a period of more than six months from the date they become payable.

(b) According to the information and explanations given to us, particulars of dues income-tax as at 31st Match. 2013, which has not been deposited on account of dispute is as under-

Name of the statue Nature of dues Amount (Rs) Period to which the Forum before which amount relates the dispute is pending

Income-tax Act, 1961 Income-tax demand 2.49,74,079 A.Y.2001-02 CIT(A)_

Income-tax Act 1961 Income-tax penalty 1,21,58,829 A.Y.2001-02 CIT(A)

10. The Company has no accumulated losses at the end of the financial year and has not incurred cash losses in the financial year under report and in the immediately preceding financial year.

11.1he Convey has not raise dray loan from final dells & 4ionor bank or on debentures and hence, cause(]d) of paragraph 4 is not applicable.

12. According to the information and explanations given to us, the Company has not granted any loans and advances on the basis of any security by way of pledge of shares, debentures and other securities.

13. There are no transactions and contracts in respect of shares, securities, debentures and other investments. At investments are held by the Company in its own name except to the extent and for reason specked In (fie footnote to Note 6(7) in the Significant Accounting Policies and Notes on Accounts (Notes AtB) to the balance sheet

14. According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from any bank or financial Institution. However, the Company has pledged securities for loans obtained by associate concerns from a bank.

15. The Company has not obtained any tern loans during the year.

16. The Company has not raised any funds on short-term basis.

17. The Company has not made any preferential allotment of shares during the year.

18. The Company has not Issued any debentures and hence, the question of creating any security or charge in respect thereof does not arise.

19. During the period, the Company has not raised money by public issue.

20. According to the information and explain funs given to us, no fraud on or by the Company has been noticed or reported during the period.

For S. KUMAR JAIN 4 CO

Chartered Accountants

Firm Reg.No.131314

SANJAY JAIN

Proprietor

Mumbai, 30th May, 2013


Mar 31, 2012

We have audited the attached balance sheet of Panther Industrial Products Ltd as at 31st March, 2012 and also the annexed profit and loss account and the cash flow statement of the Company for the year ended on that date. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on ouraudit.

1. 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 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 presentation of the financial statements. We believe that ouraudit provides a reasonable basis for our opinion.

2. As required by The Companies (Auditor's Report) Order, 2003 issued by the Central Government in terms of section 227(4A) of the Companies Act, 1956, we annex hereto a statement on the matters specified in paragraphs 4 and 5 of the said Order.

3. Further, to our comments in paragraph 2 above, we report that:

(a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of ouraudit;

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

(c) The Balance Sheet, Profit and Loss Account and cash flow statement dealt with by the report are in agreement with the books of account;

(d) In our opinion, the Balance Sheet, Profit and Loss Account and cash flow statement complies in all material respect with Accounting Standards referred to in Section 211(3C) of the CompaniesAct,1956;

(e) On the basis of written representations received from the directors of the Company as at 31st March, 2012 and taken on record by the Board of Directors, we report that no director is disqualified from being appointed as director of the Company under clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

(f) In our opinion and to the best of our information and according to the explanations given to us, the accounts subject to -

(i) Refer Note B(8) and (9) in the Significant Accounting Policies and Notes on Accounts (Notes A & B) to the balance sheet regarding sundry debtors and loans and advances considered good and recoverable by the management Rs 9,97,94,054 and Rs 7,78,25,000 due from certain companies. Though the Company is confident of recovery, in view of huge losses and uncertainty in the business operations of such companies, we are unable to express an opinion with regard to recoverability of such advances.

(ii) In view of our comments in para above, the said accounts, read with the Notes to Accounts appearing in the Significant Accounting Policies and Notes on Accounts (Notes A & B) to the balance sheet give a true and fair view in conformity with the accounting principles generally accepted in India: give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India :-

(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 loss for the Year ended on that date. and

(iii) in the case of cash flow statement, of the cash flows for the year ended on that date.

ANNEXURE TO THE AUDITORS' REPORT (Referred to in paragraph (2) of our Report of even date)

1. The nature of Company's activities during the year underreport have been such that the requirements of clauses4(ii) and (xiii)of the Order are not applicable to the Company.

2. (a) The Company has maintantained proper records showing full particulars, including quantitative details and situation of fixed assetes. (b) According to the information and explanations given to us, the fixed assets have been physically verified by the management during theyear. We are informed that no meterial discrepancies were noticed bythe management on such verification.

3. (A) The Company has granted an unsecured loan, to a company covered in the Register maintained under section 301 of the companies Act, 1956 and the year ended balance is Rs 7,78,25,000.

(b) The rate of interest and other terms and conditions on which loans are given are not, prima facie prejudicial to the interest of the Company.

(c) The Company has taken interest-free unsecured loans from a company covered in the register maintained under section 301 1956.There are 1,35,000.

(d) The rate of interest and other terms and conditions on which loans have been taken are not, prima facie, prejudicial to the . of loans taken and the said loans are interestfree.

4. In our opinion and according to the information and explanations given to us, there are adequate internal control systems 8. The Central Government has not prescribed maintenance of cost records under section 209(1)(d) of the Act.

9. (a) According to the information and explanations given to us, the Company is generally regular in depositing undisputed

statutory dues including provident fund, employees' state insurance, investor education and protect x months from the date they become payable.

(b) income-tax as at 31st March, 2012, which has not been deposited on account of dispute is as under-

Name of the statue Nature of dues Amount (Rs) Period to which the Forum before which amount relates the dispute is pending

Income- tax Act, 1961 Income-tax demand 2,49,74,079 A.Y.2001-02 CIT(A)

Income-tax Act, 1961 Income-tax penalty 1,21,58,829 A.Y.2001-02 CIT(A)

10. The Company has no accumulated losses at the end of the financial year and has not incurred cash losses in the financial year under report and inthe immediately preceding financial year.

11. The Company has not raised any loan from financial institution or bank or on debentures and hence, clause (xi) of paragraph 4 is not applicable.

12.According to the 16. The Company has not raised anyfunds on short-term basis. 20. According to the information andexplanations given to us, nofraud on orbytheCompany has been noticed orreported duringthe period.

For S. KUMAR JAIN & CO

Chartered Accountants

SANJAY JAIN

Proprietor

Mumbai. 29th Mav. 2012

 
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