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Auditor Report of Paushak Ltd.

Mar 31, 2016

To The Members of Paushak Limited

Report on the Financial Statements

We have audited the accompanying financial statements of PAUSHAK LIMITED, which comprise the Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements

The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (“the Act”) with respect to the preparation of these financial statements that give a true and fair view of the financial position and financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of 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 the 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. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone 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, 2016, 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, 2016 (“the Order”) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013 dated 29.03.2016, we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the said Order.

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

(f) The Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial control over financial reporting were operating effectively as at 31st March, 2016, based on the internal control over financial reporting criteria established by the Company.

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

(i) The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 3 of AA to the financial statements

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

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

ANNEXURE REFERRED TO PARAGRAPH 1 UNDER “REPORT ON OTHER LEGAL AND REGULATORY

REQUIREMENTS” OF OUR REPORT OF EVEN DATE ON THE ACCOUNTS FOR THE YEAR ENDED ON 31st MARCH, 2016 OF PAUSHAK LIMITED, VADODARA.

1. In respect of its fixed assets :

(a) The Company has maintained records showing particulars, including quantitative details and general location of fixed assets.

(b) During the year, all the fixed assets has been physically verified by the management. According to the information and explanations given to us, there was no material discrepancies noticed on such verification.

(c) The title deeds of immovable properties are held in the name of the Company.

2. As explained to us, all the inventory of the Company has been physically verified by the management at reasonable intervals and at the year-end. In our opinion, the frequency of the verification is reasonable. According to the information and explanations given to us, there was no material discrepancies noticed on physical verification of inventory as compared to the book records.

3. The Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013.

4. According to information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Companies Act, 2013 in respect of loans, investments, guarantees and security.

5. According to information and explanations given to us, the Company has not accepted any deposits during the year.

6. To the best of our knowledge and explanations provided by the management, the maintenance of cost records has been prescribed by the Central Government under sub section (1) of section 148 of the Companies Act, 2013 and are maintained accordingly.

7. According to the information and explanations given to us in respect of statutory and other dues :

(a) The Company has been regular in depositing undisputed statutory dues, including Provident fund, Employees'' state Insurance, Income Tax, Sales tax, service tax, duty of customs, duty of excise, value added tax, cess and other statutory dues to the appropriate authorities during the year. Based on our audit procedures and according to the information and explanations given to us, there are no arrears of statutory dues which has remained outstanding as at 31st March, 2016 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us and on the basis the records produced before us by the Company, except for the cases stated below, there are no undisputed amounts payable in respect of income tax / sales tax / Service tax / customs duty / wealth tax / excise duty / cess, which have not been deposited on account of any dispute.

Name of statute

Nature of Dues

Amount under dispute not yet deposited (?)

Period to which the amount relates

Forum where dispute is pending

The Service Tax (Finance Act, 1994)

CENVAT credit taken on outward freight GTA

56,433/-

Oct 06 to Dec 07

Commissioner of Excise, Custom and Service Tax Baroda.

Gujarat Value Added Tax Act, 2005

VAT

2,54,684/-

F.Y. 2006-07

Deputy Commissioner (Appeals)

The Income Tax Act, 1961

Income tax

3,28,230/-

F.Y. 2011-12

Commissioner of Income Tax (Appeal) Baroda.

The Income Tax Act, 1961

Income tax

13,090/-

F.Y. 2011-12

Income Tax Appellate Tribunal Ahmedabad.

8. In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of loans or borrowing to a financial institution, bank or Government. The Company has not obtained any borrowings by way of debentures.

9. The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) and term loans during the year.

10. According to the information and explanations given to us, we have not noticed or reported any fraud by the Company or any fraud on the Company by its officers or employees during the year.

11. The managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act.

12. This clause of the Companies (Auditor''s Report) Order, 2016.is not applicable to the Company as the Company is not a Nidhi Company.

13. According to the information and explanations given to us, all transactions with the related parties are in compliance with sections 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the Financial Statements etc., as required by the applicable accounting standards.

14. According to the information and explanations given to us, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review.

15. According to the information and explanations given to us, the Company has not entered into any non-cash transactions with directors or persons connected with him and the provisions of section 192 of Companies Act, 2013 have been complied with.

16. This clause of the Companies (Auditor''s Report) Order, 2016 is not applicable to the Company as the Company is not a required to be registered under section 45-lA of the Reserve Bank of India Act, 1934.

For Maloo Bhatt & Co.

Chartered Accountants

F R No. 129572W

CA. Yash Bhatt

Place : Vadodara Partner

Date : 15th April, 2016 M No. 117745


Mar 31, 2013

Report on the Financial Statements

We have audited the accompanying financial statements of Paushak Limited which comprise the Balance Sheet as at 31st March 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 Responsibility for the Financial Statements The company''s Management is responsible for the preparation of these financial statements that gives 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 the 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 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. Opinion

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

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

(b) in the case of the Statement of Profit and Loss of the profit of the company for the year ended on that date; and

(c) in the case of the Cash Flow Statement, of the cash flows of the company for the year ended on that date.

Report on Other Legal and Regulatory Requirements

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

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

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 it appears from our examination of those books.

c. The Balance Sheet, 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, 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 Act.

e. On the basis of written representations received from the directors as on 31st March, 2013 and taken on record by

the Board of Directors, none of the directors is disqualified as on 31st March, 2013 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Act. f. Since the Central Government has not issued any notification as to the rate at which the cess is to be paid under section 441A of the Act nor has it issued any Rules under the said section, prescribing the manner in which such cess is to be paid, no cess is due and payable by the Company.

ANNEXURE REFERRED TO PARAGRAPH 1 UNDER REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS OF OUR REPORT OF EVEN DATE ON THE ACCOUNTS FOR THE YEAR ENDED ON 31ST MARCH, 2013 OF PAUSHAK LIMITED, BARODA.

1. In our opinion and according to the information and explanations given to us, the nature of the company''s business/ activities during the year is such that clause xiii of paragraph 4 of the order is not applicable to the company.

2. In respect of its fixed assets :

(a) The Company has maintained records showing particulars, including quantitative details and general location of fixed assets.

(b) Part of the fixed assets have been physically verified by the management during the year in accordance with a phased programme of verification which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. The discrepancies noticed on such verification have been properly dealt with in the Books of Accounts.

(c) The Company has not disposed of any substantial part of its fixed assets so as to affect its going concern status.

3. (a) As explained to us, all the inventory of the Company has been physically verified by the management at the year end. In our opinion, the frequency of the verification is reasonable.

(b) In our opinion and according to the information and explanations given to us, the procedures for the 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) On the basis of our examination of record of inventory, in our opinion, the company has maintained proper records of its inventories. According to the information and explanations given to us, there was no material discrepancies noticed on physical verification of inventory as compared to the book records.

4. Loans granted/taken by the company:

(a) The Company has granted unsecured loan to company listed in register maintained under section 301 of the Companies Act, 1956. Total number of party is 1 (One) and total amount outstanding as at 31.03.2013 is Nil. The maximum amount involved was Rs. 1,00,81,370/-. (Rupees one crore eighty one thousand three hundred seventy only). The company has not granted any loans, secured or unsecured, to firms or other parties in the register maintained under section 301 of the Companies Act, 1956.

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

(d) There is no overdue amount in respect of said loans.

(e) The Company has not taken any loans, secured or unsecured from companies, firms or other parties covered in the register maintained under section 301 of the Act.

(f) The Company has not taken any loans, secured or unsecured, from companies, firms or other parties covered in the register maintained under Section 301 of the Act. Accordingly, clauses (iii) (f) and (iii) (g) of paragraph 4 of the Order are not applicable to the company for the current year.

5. In our opinion and according to explanations given to us, there are adequate internal control systems commensurate with the size of the company and nature of its business with regard to purchase of inventory, fixed assets and sale of goods. During the course of our audit, we have not observed continuing failure to correct major weakness in internal controls systems.

6. In respect of transactions entered in the register maintained in pursuance of section 301 of the Companies Act, 1956 :

(a) In respect of transactions entered in the register maintained in pursuance of section 301 of the Companies Act 1956, to the best of our knowledge and belief and according to the information and explanations given to us, particulars of contracts or arrangements that needed to be entered into the register have been so entered.

(b) In respect of transactions entered in the register maintained in pursuance of section 301 of the Companies Act 1956, according to the information and explanations given to us the transactions in pursuance of such contracts or arrangements have been made at prices which are prima facie reasonable having regard to the prevailing market prices at the relevant time.

7. During the year the company has not accepted any deposits from the Public. In our opinion and according to the information and explanations given to us the company has complied with the provisions of Section of 58A and 58AA or any other relevant provision of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 with regard to deposit accepted from public in earlier years. As informed to us, no order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal.

8. On the basis of the internal audit reports broadly reviewed by us, we are of the opinion that, the coverage of internal audit function carried out during the year by the firm of Chartered Accountants appointed by the Compnay is commensurate with the size of the Company and nature of its business.

9. We have broadly reviewed the books of accounts maintained by the company pursuant to the Rules made by the Central Government for maintenance of cost records under section 209(1)(d) of the Companies Act, 1956 and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained.

10. According to the information and explanations given to us in respect of statutory and other dues :

(a) The Company has been regular in depositing undisputed statutory dues, including Provident fund, Employees'' state Insurance, Income Tax, Sales tax, Wealth tax, Custom Duty, Excise Duty, Cess and Other Statutory dues with the appropriate authorities during the year. Based on our audit procedures and according to the information and explanations given to us, there are no dues which has remained outstanding as at 31st March, 2013 for a period of more than six months from the date they became due.

11. The Company does not have any accumulated losses as at the end of the financial year. The Company has not incurred cash losses during the current and immediately preceding financial year.

12. In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to banks. The Company has not obtained any borrowings from any financial institutions or by way of debentures.

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

14. In our opinion and according to the information and explanations given to us, the company has not entered any transactions or contracts relating to dealing or trading in shares, securities, debentures and other investments during the year. However the Company has made investments in its own name and proper records have been maintained for the said investments.

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

16. According to the information and explanations given to us the Company has not taken any term loans during the year.

17. On the basis of the information and explanations given to us and on an overall examination of the Cash Flow and Balance Sheet of the company, in our opinion, there are no funds raised on a short-term basis which have been used for long-term investment.

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

19. The Company has not issued any debentures during the year and therefore the question of creating security in respect thereof does not arise.

20. The Company has not made any public issues during the year and therefore the question of disclosing the end use of money does not arise.

21. During the course of our examination of the books of account carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanation given to us, we have neither come across any instances of fraud on or by the company, noticed or reported during the year, nor have he been informed of such case by the management.

For J.R.S. Patel & Co.

Chartered Accountants

(Firm Registration No.: 107709W)

Kalpesh Parmar

Place : Vadodara Partner

Date : 24th April, 2013 Membership No.: 103887


Mar 31, 2012

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

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

3. As required by the Statement on Companies (Auditors' Report) Order, 2003 as amended by Companies (Auditors' Report) (Amendment) Order, 2004, (together the 'Order') issued by the Central Government of India in terms of sub- Section (4A) of Section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

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

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

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

iii) 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.

iv) In our opinion, the Balance Sheet, Statement of Profit Loss and Cash Flow Statement dealt with by this report comply with the applicable mandatory accounting standards referred to in Sub-Section (3C) of Section 211of the Companies Act, 1956,

v) 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.

vi) In our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with the notes, 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 :

(a) In the case of Balance Sheet of the state of affairs of the Company as at 31st March 2012 and

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

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

ANNEXURE REFERRED TO PARAGRAPH 3 OF OUR REPORT OF EVEN DATE ON THE ACCOUNTS FOR THE YEAR ENDED ON 31ST MARCH, 2012 OF PAUSHAK LIMITED, BARODA.

1. In our opinion and according to the information and explanations given to us, the nature of the company's business/ activities during the year is such that clause xiii of paragraph 4 of the order is not applicable to the company.

2. In respect of its fixed assets:

(a) The Company has maintained records showing particulars, including quantitative details and general location of fixed assets.

(b) During the year, the Company has not carried out physical verification of the fixed assets. However, the fixed assets are physically verified under a phased programme of verification at reasonable intervals, which, in our opinion, is reasonable. As informed to us the Company is in process of reconciling the book records and physical records on account of differences noticed during physical verification of fixed assets conducted during the financial year 2009- 10and accordingly, we are unable to comment on discrepancies, if any that may be identified.

(c) The Company has not disposed of any substantial part of its fixed assets so as to affect its going concern status.

3. (a) As explained to us, all the inventory of the Company has been physically verified by the management at the year-end. In our opinion, the frequency of the verification is reasonable.

(b) In our opinion and according to the information and explanations given to us, the procedures for the 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) On the basis of our examination of record of inventory, in our opinion, the company has maintained proper records of its inventories. According to the information and explanations given to us, there was no material discrepancies noticed on physical verification of inventory as compared to the book records.

4. Loans granted/taken by the company:

(a) The Company has not granted any loans, secured or unsecured to companies, firms or other parties listed in register maintained under section 301 of the Companies Act, 1956.

(b) Since the company has not granted any loans, secured or unsecured, to companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, accordingly, clause 4 (iii) (b), (c) and (d) of the Order are not applicable to the company.

(c) The Company has not taken any secured or unsecured loans from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, accordingly, clause 4 (iii) (f) and (g) of the Order are not applicable to the company.

5. In our opinion and according to explanations given to us, there are adequate internal control systems commensurate with the size of the company and nature of its business with regard to purchase of inventory, fixed assets and sale of goods. During the course of our audit, we have not observed continuing failure to correct major weakness in internal controls systems.

6. In respect of transactions entered in the register maintained in pursuance of section 301 of the Companies Act, 1956 :

(a) In respect of transactions entered in the register maintained in pursuance of section 301 of the Companies Act 1956, to the best of our knowledge and belief and according to the information and explanations given to us, particulars of contracts or arrangements that needed to be entered into the register have been so entered.

(b) In respect of transactions entered in the register maintained in pursuance of section 301 of the Companies Act 1956, according to the information and explanations given to us the transactions in pursuance of such contracts or arrangements have been made at prices which are prima facie reasonable having regard to the prevailing market prices at the relevant time.

7. During the year the company has not accepted any deposits from the Public. In our opinion and according to the information and explanations given to us the company has complied with the provisions of Section of 58A and 58AA or any other relevant provision of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 with regard to deposit accepted from public in earlier years. As informed to us, no order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal.

8. On the basis of the internal audit reports broadly reviewed by us, we are of the opinion that, the coverage of internal audit function carried out during the year by the firm of Chartered Accountants appointed by the management is commensurate with the size of the Company and nature of its business.

9. We have broadly reviewed the books of accounts maintained by the company pursuant to the Rules made by the Central Government for maintenance of cost records under section 209(1)(d) of the Companies Act, 1956 and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained.

10. According to the information and explanations given to us in respect of statutory and other dues :

(a) The Company has been regular in depositing undisputed statutory dues, including Provident fund, Employees' state Insurance, Income Tax, Sales tax, Wealth tax, Custom Duty, Excise Duty, Cess and Other Statutory dues with the appropriate authorities during the year. Based on our audit procedures and according to the information and explanations given to us, there are no dues which has remained outstanding as at 31st March, 2012 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us and on the basis the records produced before us by the Company, except for the cases stated below, there are no undisputed amounts payable in respect of income tax/Service tax/ customs duty/wealth tax/excise duty/cess, which have not been deposited on account of any dispute are as follows :

Name of statute Nature of Dues Amount under Period to which dispute not yet amount relates deposited (Rs.) is pending

The Central Excise Duty, 1,32,369/- Dec, 1983 to Nov, Excise and Interest & Penalty 1993 Customs Act

The Central Excise Duty, 6,10,880/- June, 2004 to Excise and Interest & Penalty March, 2005 Customs Act

The Central Excise Duty, 13,78,800/- 2006-07 Excise and Interest & Penalty Customs Act

ESI Act 9,15,869/- January, 1997 to October 2000



Name of statute Forum where dispute is pending

The Central Customs,Excise and Excise and Service Tax Applellate Customs Act Tribunal, Ahmedabad.

The Central Customs,Excise and Excise and Service Tax Applellate Customs Act Tribunal, Ahmedabad.

The Central Customs,Excise and Excise and Service Tax Applellate Customs Act Tribunal, Ahmedabad.

ESI Act Industrial Tribunal, Kerala

11. The Company does not have any accumulated losses as at the end of the financial year. The Company has not incurred cash losses during the current and immediately preceding financial year.

12. In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to banks. The Company has not obtained any borrowings from any financial institutions or by way of debentures.

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

14. In our opinion and according to the information and explanations given to us, the company has not entered any transactions or contracts relating to dealing or trading in shares, securities, debentures and other investments during the year. However the Company has made investments in its own name and proper records have been maintained for the said investments.

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

16. According to the information and explanations given to us the Company has not taken any term loans during the year.

17. On the basis of the information and explanations given to us and on an overall examination of the Cash Flow and Balance Sheet of the company, in our opinion, there are no funds raised on a short-term basis which have been used for long-term investment.

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

19. The Company has not issued any debentures during the year and therefore the question of creating security in respect thereof does not arise.

20. The Company has not made any public issues during the year and therefore the question of disclosing the end use of money does not arise.

21. During the course of our examination of the books of account carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanation given to us, we have neither come across any instances of fraud on or by the company, noticed or reported during the year, nor have he been informed of such case by the management.

For J.R.S. Patel & Co.

Chartered Accountants

(Registration No. 107709W)

Kalpesh Parmar

Place : Vadodara Partner

Date : 8th May, 2012 Membership No.: 103887


Mar 31, 2011

1. We have audited the attached Balance Sheet of PAUSHAK LIMITED as at 31st March 2011, Proft and Loss Account and also Cash Flow Statement of the Company 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 fnancial statements based on our audit.

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

3. As required by the Statement on Companies (Auditors’ Report) Order, 2003 as amended by Companies (Auditors’ Report) (Amendment) Order, 2004, (together the ‘Order’) issued by the Central Government of India in terms of sub- Section (4A) of Section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specifed 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:

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

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

iii) The Balance Sheet, Proft and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account.

iv) In our opinion, the Balance Sheet, Proft Loss Account and Cash Flow Statement dealt with by this report comply with the applicable mandatory accounting standards referred to in Sub-Section (3C) of Section 211of the Companies Act, 1956,

v) On the basis of written representations received from the directors, as on 31st March 2011 and taken on record by the Board of Directors, we report that none of the directors is disqualifed as on 31st March 2011 from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956.

vi) In our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with the notes, 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 :

(a) In the case of Balance Sheet of the state of affairs of the Company as at 31st March 2011 and

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

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

ANNEXURE REFERRED TO PARAGRAPH 3 OF OUR REPORT OF EVEN DATE ON THE ACCOUNTS FOR THE YEAR ENDED ON 31ST MARCH, 2011 OF PAUSHAK LIMITED, BARODA.

1. In our opinion and according to the information and explanations given to us, the nature of the company’s business/ activities during the year is such that clause xiii of paragraph 4 of the order is not applicable to the company.

2. In respect of its fixed assets :

(a) The Company has maintained records showing particulars, including quantitative details and general location of fixed assets.

(b) During the year, the Company has not carried out physical verification of the fixed assets. However, the fixed assets are physically verified under a phased programme of verification at reasonable intervals, which, in our opinion, is reasonable. As informed to us the Company is in process of reconciling the book records and physical records on account of differences noticed during physical verification of fixed assets conducted during the financial year 2009-10 and accordingly, we are unable to comment on discrepancies, if any that may be identified.

(c) The Company has not disposed of any substantial part of its fixed assets so as to affect its going concern status.

3. (a) As explained to us, all the inventory of the Company has been physically verified by the management at the

year-end. In our opinion, the frequency of the verification is reasonable.

(b) In our opinion and according to the information and explanations given to us, the procedures for the 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) On the basis of our examination of record of inventory, in our opinion, the company has maintained proper records of its inventories. According to the information and explanations given to us, there was no material discrepancies noticed on physical verification of inventory as compared to the book records.

4. Loans granted/taken by the company:

(a) The Company has not granted any loans, secured or unsecured to companies, firms or other parties listed in register maintained under section 301 of the Companies Act, 1956.

(b) Since the company has not granted any loans, secured or unsecured, to companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, accordingly, clauses 4 (iii) (b), (c) and (d) of the Order are not applicable to the company.

(c) The Company has taken an unsecured loan from a company listed in the register maintained under section 301 of the Companies Act, 1956. Total amount outstanding as at 31.03.2011 is Rs. Nil/-(Rupees ZERO). The maximum amount involved was Rs. 1,01,31,507/- (Rupees One Crores One Lacs Thirty One Thousand Five Hundred and Seven Only) The Company has not taken any loans, secured or unsecured from firms or other parties listed in register maintained under section 301 of the Companies Act, 1956.

(d) In our opinion, the rate of interest and other terms and conditions in respect of loans taken from the Company listed in the register maintained under section 301 of the Companies Act, 1956, are not prima-facie prejudicial to the interest of the Company.

(e) In respect of the loan taken by the Company from the Company listed in the register maintained under section 301 of the Companies Act, 1956, the interest payments are regular and the principal amount is repayable on demand.

5. In our opinion and according to explanations given to us, there are adequate internal control systems commensurate with the size of the company and nature of its business with regard to purchase of inventory, fixed assets and sale of goods. During the course of our audit, we have not observed continuing failure to correct major weakness in internal controls systems.

6. In respect of transactions entered in the register maintained in pursuance of section 301 of the Companies Act, 1956 :

(a) In respect of transactions entered in the register maintained in pursuance of section 301 of the Companies Act 1956, to the best of our knowledge and belief and according to the information and explanations given to us, particulars of contracts or arrangements that needed to be entered into the register have been so entered.

(b) In respect of transactions entered in the register maintained in pursuance of section 301 of the Companies Act 1956, according to the information and explanations given to us the transactions in pursuance of such contracts or arrangements have been made at prices which are prima facie reasonable having regard to the prevailing market prices at the relevant time.

7. During the year the company has not accepted any deposits from the Public. In our opinion and according to the information and explanations given to us the company has complied with the provisions of Section of 58A and 58AA or any other relevant provision of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 with regard to deposit accepted from public in earlier years. As informed to us, no order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal.

8. On the basis of the internal audit reports broadly reviewed by us, we are of the opinion that, the coverage of internal audit function carried out during the year by the firm of Chartered Accountants appointed by the management is commensurate with the size of the Company and nature of its business.

9. To the best of our knowledge and explanations provided by the management, the maintenance of cost recorded has not been prescribed by the Central Government under Section 209(1)(d) of the Companies Act, 1956, in respect of any of the products of the Company.

10. According to the information and explanations given to us in respect of statutory and other dues :

(a) The Company has been regular in depositing undisputed statutory dues, including Provident fund, Employees’ state Insurance, Income Tax, Sales tax, Wealth tax, Custom Duty, Excise Duty, Cess and Other Statutory dues with the appropriate authorities during the year. Based on our audit procedures and according to the information and explanations given to us, there are no dues which has remained outstanding as at 31st March, 2011 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us and on the basis the records produced before us by the Company, except for the cases stated below, there are no undisputed amounts payable in respect of income tax/Service tax/ customs duty/wealth tax/excise duty/cess, which have not been deposited on account of any dispute are as follows :

Name of Nature of Amount under Period to Forum where statute Dues which the dispute is dispute not amount pending yet deposi relates ted(Rs.) The Central Excise Duty, 1,32,369/- Dec, 1983 Customs, Excise and Interest & to Nov,1993 and Service Tax Applel -late Tribunal, Ahmedabad.T

The Central Excise Duty, 6,10,880/- June, 2004 Customs, Excise to March, Excise and and Customs Interest 2005 and Service Tax Act & Penalty Applellate Tribunal, Ahmedabad.

The Central Excise Duty, 13,78,800/- 2006-07 Customs, Excis and Excise Customs Act Interest & and Service Penalty Tax Applell ate Tribunal, Ahmedabad.

ESI Act 9,15,869/- January, Industrial 1997 to Tribunal, October, 2000 Kerala

11. The Company does not have any accumulated losses as at the end of the financial year. The Company has not incurred cash losses during the current and immediately preceding financial year.

12. In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to banks. The Company has not obtained any borrowings from any financial institutions or by way of debentures.

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

14. In our opinion and according to the information and explanations given to us, the company has not entered any transactions or contracts relating to dealing or trading in shares, securities, debentures and other investments during the year. However the Company has made investments in its own name and proper records have been maintained for the said investments.

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

16. According to the information and explanations given to us the Company has not taken any term loans during the year.

17. On the basis of the information and explanations given to us and on an overall examination of the Cash Flow and Balance Sheet of the company, in our opinion, there are no funds raised on a short-term basis which have been used for long-term investment.

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

19. The Company has not issued any debentures during the year and therefore the question of creating security in respect thereof does not arise.

20. The Company has not made any public issues during the year and therefore the question of disclosing the end use of money does not arise.

21. During the course of our examination of the books of account carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanation given to us, we have neither come across any instances of fraud on or by the company, noticed or reported during the year, nor have been informed of such case by the management.

For J.R.S. Patel & Co. Chartered Accountants

Kalpesh Parmar

Partner Membership No.: 103887 Firm Regn. No. 107109W

Place : Vadodara Date : 3rd May, 2011


Mar 31, 2010

1. We have audited the attached Balance Sheet of PAUSHAK LIMITED as at 31st March, 2010, Profit and Loss Account and also Cash Flow Statement of the Company for the year ended on that date annexed thereto. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

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

3. As required by the Statement on Companies (Auditors Report) Order, 2003 as amended by Companies (Auditors Report) (Amendment) Order, 2004, (together the Order) issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

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

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

ii) In our opinion, proper books of accounts as required by the Law have been kept by the Company so far as 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 account.

iv) In our opinion, the Balance Sheet, Profit Loss Account and Cash Flow Statement dealt with by this report comply with the applicable mandatory 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 31 st 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 read together with the notes, 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 :

(a) In the case of Balance Sheet, of the state of affairs of the Company as at 31st March, 2010 and

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

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

ANNEXURE REFERRED TO PARAGRAPH 3 OF OUR REPORT OF EVEN DATE ON THE ACCOUNTS FOR THE YEAR ENDED ON 31 ST MARCH, 2010 OF PAUSHAK LIMITED, VADODARA.

1. In our opinion and according to the information and explanations given to us, the nature of the companys business/ activities during the year is such that clause xiii of paragraph 4 of the order is not applicable to the company.

2. In respect of its fixed assets :

(a) The Company has maintained records showing particulars, including quantitative details and general location of fixed assets.

(b) During the year, the Company has carried out physical verification of the fixed assets under the phased programme of verification which, in our opinion, is reasonable having regard to the size of the Company and nature of its assets. As informed to us the Company is in process of reconciling the book records and physical records on account of differences noticed during physical verification of fixed assets and accordingly, we are unable to comment on discrepancies, if any that may be identified.

(c) The Company has not disposed of any substantial part of its fixed assets so as to affect its going concern status.

3. (a) As explained to us, all the inventory of the Company has been physically verified by the management at the

year-end. In our opinion, the frequency of the verification is reasonable.

(b) In our opinion, the procedures for the 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) On the basis of our examination of record of inventory, in our opinion, the company has maintained proper records of its inventories. According to the information and explanations given to us, there was no material discrepancies noticed on physical verification of inventory as compared to the book records.

4. Loans granted/taken by the company:

(a) The Company has not granted any loans, secured or unsecured to companies, firms or other parties listed in register maintained under section 301 of the Companies Act, 1956.

(b) Since the company has not granted any loans, secured or unsecured, to companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, accordingly, clauses 4 (iii) (b), (c) and (d) of the Order are not applicable to the company.

(c) The Company has not taken any loans, secured or unsecured from companies, firms or other parties listed in register maintained under section 301 of the Companies Act, 1956.

(d) Since the company has not taken any loans, secured or unsecured, from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, accordingly, clauses 4 (iii) (e), (f) and (g) of the Order are not applicable to the company.

5. In our opinion and according to explanations given to us, there are adequate internal control systems commensurate with the size of the company and nature of its business with regard to purchase of inventory, fixed assets and sale of goods. During the course of our audit, we have not observed continuing failure to correct major weakness in internal controls systems.

6. In respect of transactions entered in the register maintained in pursuance of section 301 of the Companies Act, 1956 and to the best of our knowledge and belief and according to the information and explanations given to us :

(a) the particulars of contracts or arrangements that needed to be entered into the register have been so entered and

(b) the transactions in pursuance of such contracts or arrangements have been made at prices which are prima facie reasonable having regard to the prevailing market prices at the relevant time.

7. During the year the company has not accepted any deposits from the Public. In our opinion and according to the information and explanations given to us the company has complied with the provisions of Section of 58A and 58AA or any other relevant provision of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 with regard to deposit accepted from public in earlier years. As informed to us, no order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal.

8. On the basis of the internal audit reports broadly reviewed by us, we are of the opinion that, the coverage of internal audit function carried out during the year by the firm of Chartered Accountants appointed by the management is commensurate with the size of the Company and nature of its business.

9. To the best of our knowledge and explanations provided by the management, the maintenance of cost records has not been prescribed by the Central Government under Section 209(1 )(d) of the Companies Act, 1956, in respect of any of the products of the Company.

10. According to the information and explanations given to us in respect of statutory and other dues :

(a) The Company has been regular in depositing undisputed statutory dues, including Provident Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise Duty, Cess and Other statutory dues with the appropriate authorities during the year. Based on our audit procedures and according to the information and explanations given to us, there are following sales tax dues which has remained outstanding as at 31st March, 2010 for a period of more than six months from the date they became payable.

Name of statute Nature of Dues Amount Period to which Due date not yet the amount relates deposited (Rs.)

Central Sales Tax Act Central Sales Tax 15,496/- F.Y. 2006-07 (March07) 22.04.2007

(b) According to the information and explanations given to us and on the basis the records produced before us by the Company, except for the cases stated below, there are no undisputed amounts payable in respect of income tax/Service tax/ customs duty/wealth tax/excise duty/cess, which have not been deposited on account of any dispute are as follows :

Name of statute Nature of Dues Amount Period to which Forum where not yet the amount relates dispute is deposited pending (Rs.)

The Central Excise and Customs Act Excise Duty, Interest & Penalty 1,32,369/- Dec, 1983 to Nov, 1993 Customs, Excise and Service Tax Applellate Tribunal, Ahmedabad.

The Central Excise and Customs Act Excise Duty, Interest & Penalty 6,10,880/- June, 2004 to March, 2005 Customs, Excise and Service Tax Applellate Tribunal, Ahmedabad.

The Central Excise and Customs Act Excise Duty, Interest & Penalty 13,78,800/- 2006-07 Customs,Excise and Service Tax Applellate Tribunal, Ahmedabad.

ESI Act 9,15,869/- January, 1997 to October 2000 Industrial Tribunal, Kerala

11. The Company does not have any accumulated losses as at the end of the financial year. The Company has not incurred cash losses during the current and immediately preceding financial year.

12. In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to banks. The Company has not obtained any borrowings from any financial institutions or by way of debentures.

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

14. In our opinion and according to the information and explanations given to us, the company has not entered any transactions or contracts relating to dealing or trading in shares, securities, debentures and other investments during the year. However the Company has made investments in its own name and proper records have been maintained for the said investments.

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

16. According to the information and explanations given to us the Company has not taken any term loans during the year.

17. On the basis of the information and explanations given to us and on an overall examination of the Cash Flow and Balance Sheet of the company, in our opinion, there are no funds raised on a short-term basis which have been used for long-term investment.

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

19. The Company has not issued any debentures during the year and therefore the question of creating security in respect thereof does not arise.

20. The Company has not made any public issues during the year and therefore the question of disclosing the end use of money does not arise.

21. During the course of our examination of the books of account carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanation given to us, we have neither come across any instances of fraud on or by the company, noticed or reported during the year, nor have been informed of such case by the management.

For J.R.S. Patel & Co.

Chartered Accountants

Kalpesh Parmar

Partner Place : Vadodara Membership No.: 103887

Date : 4th May, 2010 Firm Regn. No. 107109W

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