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Auditor Report of Piccadily Sugar and Allied Industries Ltd.

Mar 31, 2015

1. We have audited the accompanying financial statements of M/s Piccadily Sugar & Allied Industries Limited (the "Company"), which comprise the Balance Sheet as at March 31, 2015, the Statement of Proft & Loss account, the Cash Flow Statement of the Company for the year then ended, and a summary of significant accounting policies and other explanatory information, which we have signed under reference to this report.

Management's Responsibility for the Financial Statements

2. The Company's Management 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, financial performance and cash fow of the Company in accordance with accounting principles generally accepted in India including the Accounting Standards specifed under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rule, 2014. The 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 the design; and 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

3. 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 thereunder. We have conducted our audit in accordance with 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.

4. An audit involves performing procedures to obtain audit evidence, about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' 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 auditors consider internal financial control relevant to the Company's preparation and fair presentation of the financial statements that give true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the company has in place an adequate internal financial controls system over financial reporting and operating effectiveness of such controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by Management, as well as evaluating the overall presentation of financial statements.

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

Opinion

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

In the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2015;

In the case of the Statement of Profit and Loss, of the Loss of the year ended on that date; and

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

7. As required by 'the Companies (Auditor's Report) Order, 2015', issued by the Central Government of India in terms of Section 143 (11) of the Act (hereinafter referred to as the "Order"), and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give the Annexure a statement on the matters specified in paragraphs 3and 4 of the Order to the extent applicable.

8. 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 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 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) Rule, 2014;

e) On the basis of written representations received from the directors as on March 31, 2015, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2015, from being appointed as a director in terms of Section164(2) of the Act.

ANNEXURE TO THE AUDITORS' REPORT

(Referred to in paragraph 1 of our report of even date)

1. In respect of its fixed assets:

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

b) According to the information and explanations given to us, the company has a system of physical verification of all its fixed assets over a period of three years. In our opinion having regard to the size of the company and the nature of its assets, the program of verification is reasonable. No material discrepancies have been noticed in respect of assets physically verified.

2. In respect of its inventories:

a) The inventory was physically verified during the year by the management. In our opinion, frequency of verification is reasonable.

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

c) In our opinion and according to the information and explanations given to us and on the basis of our examination of the records of inventory, the Company is maintaining proper records of its inventory. The discrepancies noticed on physical verification of inventory as compared to the book records were not material and have been properly dealt with in the books of account.

3. (a) According to the information and explanations given to us, the company has not granted any loan to body corporate covered in the register maintained under section 189 of the Companies Act 2013. Accordingly paragraph III (b) and (c) of the Order is not applicable to the Company.

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

5. The company has not accepted any deposits from the public.

6. The Company is required to maintain cost records under section 148(1) of the Act for the products of the company and according to the information and explanation given to us, the company has maintained proper records as prescribed by the central government.

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

a) The company is regular in depositing undisputed statutory dues, including Provident Fund, Employees' State Insurance , Income Tax, Value Added Tax, wealth Tax, Service Tax, Custom Duty, Excise Duty, cess and other statutory dues with the appropriate authorities during the year.

b) As per the information and explanation given to us, there is no amount of Income tax/sales tax/ custom duty/ wealth tax/excise duty/Value Added Tax/service tax/Cess which have not been deposited on account of any dispute.

c) As per our verification, we have not come across any amount to be transferred to investor education and protection Fund in accordance with the relevant provisions of the Companies Act, 1956 and rules made there under.

8. The Company have accumulated losses of Rs.857.39 Lacs and its paid up capital is Rs.2322.10 Lacs. The company has incurred no cash losses during the current financial year and in preceding financial year.

9. Based on our audit procedures and on the basis of information and explanations given by the management, we are of the opinion that the Company has not defaulted in the repayment of dues to financial institutions and banks.

10. 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.

11. To the best of our knowledge and belief and according to the information and explanation given to us, term loans have been availed by the company, were prima facie, and applied by the company during the year for the purposes for which the loans were obtained.

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

FOR JAIN & ASSOCIATES

CHARTERED ACCOUNTANTS

(Regd No.:001361N)

Sd/-

(KRISHAN MANGAWA)

PARTNER

Membership No.513236

PLACE: GURGAON

DATE : 30.05.2015


Mar 31, 2014

Report on the Financial Statements

We have audited the accompanying Financial Statements of M/s Piccadily Sugar & Allied Industries Limited as at 31st March 2014 which comprise the Balance Sheet as at March 31st 2014, and the statement of Profit and Loss and Cash Flow statement for the year ended, and a summary of significant amounting 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. financial performance and cash flows of the Company in accordance with the Accounting Standards notified under the Companies Act, 1956 (the Act) read with the General Circular 15/2013 dated 13th September. 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013 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 requirement 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 over-afl presentation of the financial statements,

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

Opinion:

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

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

(ii) In the case of Profit and Loss Account, of the loss for The year ended on that date, and

(iii) in the case of Cash Flow Statement, the cash flow for the year ended on that date.

Report on Other Legal and Regulatory Requirements:

1. As required by Companies (Auditors'' Report Order, 2003, issued by the Central Government of India in terms of Section 227(4A) of the Companies Act 1956, we annex hereto a statement on the matters specified in paragraph 4 & 5 of the said order.

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

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

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

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

d) in our opinion, the Balance Sheet. Statement of Profit and Loss, and Cash Flow Statement comply with Accounting Standards notifies under the Act read with the General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013;

e) On the basis of written representations received from the directors as on March 31st 2014, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31st 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

I. In respect of its fixed assets:

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

b) According to the information and explanations given to us, the company has a system of physical verification of all its fixed assets once in a year. In our opinion having regard to the size of the company and the nature of its assets, the program of verification is reasonable. No material discrepancies have been noticed in respect of assets physically verified.

c) During the year, Company has not disposed of any substantial / major part of fixed assets.

II. In respect of its inventories:

a) The inventory was physically verified during the year by the management. In our opinion, frequency of verification is reasonable.

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

c) In our opinion and according to the information and explanations given to us and on the basis of our examination of the records of inventory, the Company is maintaining proper records of its inventory. The discrepancies noticed on physical verification of inventory as compared to the book records were not material and have been properly dealt with in the books of account.

III. In respect of loans, secured or unsecured, granted or taken by the company from any party covered in the register maintained under section 301 of the Companies Act 1956 -

a) In pursuant to requirements of Clause (a) to (d) of Section 301 of the Companies Act 1956,: According to the information and explanations given to us, and our verification we observed that the company during the year has not granted any loans to any party covered in the register maintained under section 301 of the Companies Act 1956.

b) In pursuant to requirements of Clause (e) to (g) of Section 301 of the Companies Act 1956,: According to the information and explanations given to us, and our verification we observed that the company during the year has not taken any loans from any party covered in the register maintained under section 301 of the Companies Act 1956.

IV. In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the company and the nature of its business for the purchase of inventory and fixed assets and for the sale of goods.

V. In respect of particulars of contracts or arrangements and 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 explanation given to us, the Company has not entered into any transaction that needed to be entered into the register maintained u/s 301 of the Companies Act, 1956.

VI. In our opinion, the Company has not accepted deposit under the provisions of section 58A and 58AA of the Companies Act 1956 and the rules framed there under and the directives issued by the Reserve Bank of India

VII. In our opinion, the Company has internal audit system which commensurate with the size and nature of its business.

VIII. The Company is required to maintain cost records under section 209(1 )(d) of the Companies Act, 1956 for the products of the company and according to the information and explanation given to us, the company has maintained proper records as prescribed by the central government

IX. According to the information and explanations given to us, in respect of Statutory and other dues:

a) The company is regular in depositing undisputed statutory and other dues, including provident fund, Income Tax, Sales Tax, Service Tax, Excise Duty and any other statutory dues with the appropriate authorities during the year.

b) As per the information and explanation given to us, no disputed amounts payable in respect of Income Tax, Sales Tax, Wealth Tax, Custom Duty were outstanding as on 31.03.2014

X. The company has accumulated losses of Rs.831.40 lacs and its paid up capital is Rs. 2322.10 lacs. The company has not incurred any cash losses during the financial year covered by this audit report and in the immediately preceding financial year.

XI. Based on our audit procedures and on the basis of information and explanations given by the management, we are of the opinion that there is no secured/unsecured loan from any Bank/ Financial institution and the Company has not defaulted in the repayment of dues to the financial institutions and banks.

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

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

XIV. According to information and explanations given to us, the Company is not dealing or trading in shares, securities, debentures and other investments and hence the related reporting requirements are not applicable.

XV. According to information and explanations given to us, The Company has not given guarantee for loans taken by others from banks or financial institutions.

XVI. To the best of our knowledge and belief and according to the information and explanation given to us no term loans has been availed by the company from banks and financial institutions.

XVII. According to the Cash flow statement and other records examined and as per the information and explanations given to us, on an overall basis, funds raised on short term basis have, prima facie, not been used during the year for long term investment and vice versa.

XVIII. According to information and explanations given to us, The Company has not made any preferential allotment of shares to parties and companies covered in the Register maintained under Section 301 of the Companies Act 1956, during the year.

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

XX. According to information and explanations given to us, The Company has not raised any monies by way of public issues during the year.

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

FOR JAIN & ASSOCIATES FRN : 01361N CHARTERED ACCOUNTANTS

Sd/-

(KRISHAN MANGAWA) PARTNER

PLACE: Gurgaon M.NO.: 513236 DATE: 30.05.2014


Mar 31, 2013

We have audited the accompanying Financial Statement of M/S Piccadily Sugar and Allied Industries Ltd as at March 31st 2013, and the statement of Profit ana Loss and Cash Flow statement for the year ended, and a summary of significant accounting policies and other explanatory information. Management''s Responsibility for the Financial Statements:

Management is responsible for the preparation of these Financial Statements that give a true and fair view of ttw nanal im- Sn iai performance and cashes of the Company in accordance to (30 of section 211 of the Companies Act, 1956. This responsibility includes the design, implementation and rrartnwn oMntemal control recant to the proration 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. ards on Auditing issued by the Institute of Chartered Accountants of India. require that we™ with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Bran- cial statements are free from material misstatement.

KiS

on the auditor''s judgment, including the assessment of the risks of material nM£ KancTa statements, wti due to fraud or error. In making those risk assessments, the auditor considers
Opinion: „

In ouropinion and to the best of ourinformation and according to the explanations given to us information required by the Act in the manner so required and give a true and fair view in conformrty with the accounting pim- ples generally awepled in India:

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

ii) In the case of Profit and Loss Account, of the loss for the year ended on that date, and In the case of Cash Row Statement, the cash flow for the year ended on that date. Report on Other Legal and Regulatory Requirements: 1 As required by Companies (Auditors'' Report) Order, 2003, issued by the Central Government of India m, terms of Secton 227(4A) of the Companies Act 1956, we annex hereto a statement on the matters specified in paragraph 415 of the said order.

b) books of account as required by law have been kept by the Company so far as appears from our exan

Balance Sheet Statement of Profit and Loss, and Cash Row Statement comply with the Accounting Standards referred to in Sub Section (3C) of Section 211 of the Companies Act, 1956,

On he basi of written representation received from the directors as on March 31st 2013, and taken on record by the tort is disoualied as on March 31st 2013, from being appointed as a director ,n terms of dause

(g) of sub-section (1) of section 274 of the Companies Act, ist*.

ANNEXURE TO THE AUDITORS'' REPORT

I. In respect of its fixed assets:

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

b) According to the information and explanations given to us, the company has a sys- tem of physical verification of all its fixed assets once in a year. In our opinion hav- ing regard to the size of the company and the nature of its assets, the program of verification is reasonable. No material discrepancies have been noticed in respect of assets physically verified,

c) During the year. Company has disposed off part of its Plant and Machinery, which has not affected the going concern of the company.

II. In respect of its inventories:

a) The inventory was physically verified during the year by the management. In our opinion, frequency of verification is reasonable.

b) In our opinion and according to the information and explanations given to us, the pro- cedures of physical verification of inventories followed by the management are rea- sonable and adequate in relation to the size of the Company and the nature of its business.

c) In our opinion and according to the information and explanations given to us and on the basis of our examination of the records of inventory, the Company is maintaining proper records of its inventory. The discrepancies noticed on physical verification of inventory as compared to the book records were not material and have been prop- erly dealt with in the books of account.

III. In respect of loans, secured or unsecured, granted or taken by the company from any party covered in the register maintained under section 301 of the Companies Act 1956-

a) In pursuant to requirerr 3nts of Clause (a) to (d) of Section 301 of the Companies Act 1956,: According to the information and explanations given to us, and our verification we observed that the company during the year has not granted any loans to any party covered in the register maintained under section 301 of the Companies Act 1956.

b) In pursuant to requirements of Clause (e) to (g) of Section 301 of the Companies Act 1956, : According to the information and explanations given to us, and our verification we observed that the company during the year has not taken any loans from any party covered in the register maintained under section 301 of the Companies Act 1956,

IV. In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the compa- ny and the nature of its business for the purchase of inventory and fixed assets and for the sale of goods.

V. In respect of particulars of contracts or arrangements and 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 expla- nation given to us, the Company has not entered into any transaction that needed to be entered into the register maintained u/s 301 of the Companies Act, 1956.

VI. In our opinion, the Company has not accepted deposit under the provisions of sec- tion 58A and 58AA of the Companies Act, 1956 and the ruies framed there under and the directives issued by the Reserve Bank of India

VII. In our opinion, the Company has internal audit system which commensurate with the size and nature of its business.

VIII. The Company is required to maintain cost records under section 209(1 )(d) of the Companies Act, 1956 for the products of the company and according to the informa- tion and explanation given to us, the company has maintained proper records as prescribed by the centra! government.

IX. According to the Information and explanations given to us, in respect of Statutory and other dues:

a) The company is regular in depositing undisputed statutory and other dues, including provident fund, Income Tax, Sales Tax, Service Tax, Excise Duty and any other statu- tory dues with the appropriate authorities during the year.

b) As per the information and explanation given to us, no disputed amounts payable in respect of Income Tax, Sales Tax, Wealth Tax, Custom Duty were outstanding as on 31.03.2013

X. The company has accumulated losses of Rs.795.20 lacs and its paid up capita! is Rs. 2322.10 lacs. The company has not incurred any cash losses during the finan- cial year covered by this audit report and in the immediately preceding financial year.

XI. Based on our audit procedures and on the basis of information and explanations given by the management, we are of the opinion that there is no secured/unsecured loan from any Bank/ Financial institution and the Company has not defaulted in the repayment of dues to the financial institutions and banks.

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

XIII. The company does not fall within the category of Chit fund/N id hi/Mutual Benefit fund/Society and hence the related reporting requirements are not applicable.

XIV. According to information and explanations given to us, the Company is not dealing or trading in shares, securities, debentures and other investments and hence the related reporting requirements are not applicable.

XV. According to information and explanations given to us, The company has not given guarantee for loans taken by others from banks or financial institutions.

XVI. To the best of our knowledge and belief and according to the information and expla- nation given to us no term loans has been availed by the company from banks and financial institutions.

XVII. According to the Cash flow statement and other records examined and as per the information and explanations given to us, on an overall basis, funds raised on short term basis have, prima facie, not been used during the year for long term invest- ment and vice versa.

XVIII. According to information and explanations given to us, The company has not made any preferential allotment of shares to parties and companies covered in the Register maintained under Section 301 of the Companies Act 1956, during the year.

XIX. According to information and explanations given to us. The Company has not issued any debentures during the year.

XX. According to information and explanations given to us, The Company has not raised any monies by way of public issues during the year.

XXI. To the best of our knowledge and belief and according to the information and expla- nations given to us, no fraud on or by the company was noticed or reported during the year.

FOR JAIN & ASSOCIATES

CHARTERED ACCOUNTANTS

Sd/-

NEERAJ JAIN

(PARTNER)

PLACE: Chandigarh M NO. 89477

DATE: 29.05.2013 Firm. No. 01361N


Mar 31, 2012

We have audited the attached Balance Sheet of M/s Piccadily Sugar & Allied Industries Limited as at 31st March 2012 and the Profit & Loss Account and 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.

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 amount 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.

1. As required by Companies (Auditors' Report) Order, 2004, issued by the Central Government of India in terms of Section 227{4A) of the Companies Act 1956, we annex hereto a statement on the matters specified in paragraph 4 & 5 of the said order.

2. Further to our comments in the annexure referred to in paragraph 1 above, we report that:

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

b) In our opinion, the Company has kept proper books of accounts as required by law, so far as appear from our examination of the books.

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

d) In our opinion, the Balance Sheet, Profit & Loss Account and the Cash Flow Statement dealt with by this report are in com- pliance with accounting standards specified by The Institute of Chartered Accountants of India referred to in Section 211(3C) of Companies Act, 1956.

e) On the basis of the written representations received from the Directors as on 31.3.2012 & taken on record by the Board of Directors, we report that none of the Directors is disqualified for being appointed as a Director in terms of Clause (g) of sub- section (1) of Sec 274 of the Companies Act, 1956.

f) In our opinion and to the best of our information and according to explanations given to us, the said accounts read together with notes thereon, give the information required by the Companies Act, 1956 in the manner so required and also give a true and fair view.

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

ii) In the case of Profit and Loss Account, of the Profit for the year ended on that date. t '

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

ANNEXURE TO THE AUDITORS' REPORT

I. In respect of its fixed assets:

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

b) According to the information and explanations given to us, the company has a system of physical verification of all its fixed assets once in a year. In our opinion having regard to the size of the company and the nature of its assets, the program of verification is reasonable. No material discrepancies have been noticed in respect of assets physically ver- ified.

c) During the year, Company has not disposed of any substantial I major part of fixed assets. '

II. In respect of its inventories:

a) The inventory was physically verified during the year by the management. In our opinion, frequency of verification is reasonable.

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

c) In our opinion and according to the information and explanations given to us and on the basis of our examination of the records of inventory, the Company is maintaining proper records of its inventory. The discrepancies noticed on physical verification of inventory as compared to the book records were not material and have been properly dealt with in the books of account.

III.

a) According to the information and explanations given to us, and our verification we observed that the company during the year has not granted any loans to any party covered in the register maintained under section 301 of the Companies Act 1956. -

b) According to the information and explanations given to us, and our verification we observed that the company during the year has not taken any loans from any party covered in the register maintained under section 301 of the Companies Act 1956.

IV. In our opinion and according to the information and explanations given to us, there are adequate internal control pro- cedures commensurate with the size of the company and the nature of its business for the purchase of inventory and fixed assets and for the sale of goods.

V. In respect of contracts or arrangements and 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 explanation given to us, the company has not entered into any transactions that needed to be entered into the register maintained u/s 301 of the Companies Act, 1956.

VI. In our opinion, the Company has not accepted deposit under the provisions of section 58A and 58AAof the Companies Act, 1956 and the rules framed there under and the directives issued by the Reserve Bank of India

VII. In our opinion, the Company has internal audit system which commensurate with the size and nature of its business.

VIII. The Company is required to maintain cost records under section 209(1 )(d) of the Companies Act, 1956 for the prod- ucts of the company and according to the information and explanation given to us, the company has maintained prop- er records as prescribed by the central government.

IX. According to the information and explanations given to us in respect of Statutory and other dues:

a) The company is regular in depositing undisputed statutory and other dues, including Provident fund. Income Tax, Sales Tax, Service Tax, Excise Duty and any other statutory dues with the appropriate authorities during the year.

b) As per the information and explanation given to us, no disputed amounts payable in respect of Income Tax, Wealth Tax, Custom Duty were outstanding as on 31.03.2012 except in respect of Sales Tax demand of Rs. 30.08 lacs in Distillery unit against which appeal is pending before sales tax authorities.

X. The company has accumulated losses of Rs.726.19 lacs and its paid up capital is Rs. 2322.10 lacs. The company has not incurred cash losses during the current and the immediately proceeding financial year.

XI. Based on our audit procedures and on the basis of information and explanations given by the management, we are of the opinion that there is no secured/unsecured loan from any Bank/ Financial institution

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

XIII. The company does not fall within the category of Chit fund/Nidhi/Mutual Benefit fund/Sodety and hence the related reporting requirements are not applicable.

XIV. According to information and explanations given to us, the Company is not dealing or trading in shares, securities, debentures and other investments and hence the related reporting requirements are not applicable.

XV. The company has not given guarantee for loans taken by others from banks or financial institutions.

XVI. To the best of our knowledge and belief and according to the information and explanation given to us no term loans has been availed by the company from banks and financial institutions.

XVII. According to the Cash flow statement and other records examined and as per the information and explanations given to us, on an overall basis, funds raised on short term basis have, prima facie, not been used during the year for long term investment and vice versa.

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

XIX. The Company has not issued any debentures during the year,

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

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

FOR JAIN & ASSOCIATES CHARTERED ACCOUNTANTS

Sd/-

NEERAJ JAIN (PARTNER)

PLACE: Chandigarh M NO. 89477

DATE: 25.05.2012 Firm. No. 01361N


Mar 31, 2010

We have audited the attached Balance Sheet of M/s Piccadily Sugar & Allied Industries Limited as at 31st March 2010 and i & Loss Account and 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.

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 amount 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. ;

1. As required by Companies (Auditors Report) Order, 2003, issued by the Central Government of India in terms of Section 227(4A) of the Companies Act 1956, we annex here to a statement on the matters specified in paragraph 4 & 5 of the said order. • ;

2. Further to our comments in the annexure referred to in paragraph 1 above, we report that:

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

b) In our opinion, the Company has kept proper books of accounts as required by law, so far as appear from our examination of the books.

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

d) In our opinion, the Balance Sheet, Profit & Loss Account and the Cash Flow Statement dealt with by this report are in compliance with accounting standards specified by The Institute of Chartered Accountants of India referred to in Section 211 (3C) of Companies Act, 1956.

e) On the basis of the written representations received from the Directors as on 31.3.2010 & taken on record by the Board of Directors, we report that none of the Directors is disqualified for being appointed as a Director in terms of Clause (g) of subsection (1) of Sec 274 of the Companies Act, 1956.

f) In our opinion and to the best of our information and according to explanations given to us, the said accounts read together with notes thereon, give the information required by the Companies Act, 1956 in the manner so required and also give a true and fair view.

i) In the case the Balance Sheet, of the state of affairs of the Company as at 31st March 2010.

ii) In the case of Profit and Loss Account, of the Profit for the year ended on that date. iii) In case of Cash Flow Statement, of the cash flows for the year ended on that date.

ANNEXURE TO THE AUDITORS REPORT

I. In respect of its fixed assets:

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

b) According to the information and explanations given to us, the company has a system of physical verification of all its fixed assets once in a year. In our opinion having regard to the size of the company and the nature of its assets, the program of verification is reasonable. No material discrepancies have been noticed in respect of assets physically verified.

c) During the year, Company has not disposed of any substantial / major part of fixed assets.

II. In respect of its inventories:

a) The inventory was physically verified during the year by the management. In our opinion, frequency of verification is reasonable. j

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

c) In our opinion and according to the information and explanations given to us and on the basis of our examination of the records of inventory, the Company is maintaining proper records of its inventory. The discrepancies noticed on physical verification of inventory as compared to the book records were not material and have been properly dealt with in the books of account.

III. A) According to the information and explanations given to us, and our verification we observed that the company duringthe year has not granted any loans to any party covered in the register maintained under section 301 of the Companies Act 1956.

b) According to the information and explanations given to us, and our verification we observed that the company during the year has not taken any loans from any party covered in the register maintained under section 301 of the Companies Act 1956.

IV. In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the company and the nature of its business for the purchase of inventory and fixed assets and for the sale of goods.

V. In respect of contracts or arrangements and 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 explanation given to us, the company has not entered into any transactions that needed to be entered into the register maintained u/s 301 of the Companies Act, 1956.

VI. In our opinion, the Company has not accepted deposit under the provisions of section 58A and 58AA of the Companies Act, 1956 and the rules framed there under and the directives issued by the Reserve Bank of India

VII. In our opinion, the Company has internal audit system which commensurate with the size and nature of its business.

VIII. The Company is required to maintain cost records under section 209(1)(d) of the Companies Act, 1956 for the products of the company and according to the information and explanation given to us, the company has maintained proper records as prescribed by the central government.

IX. According to the information and explanations given to us in respect of Statutory and other dues:

a) The company is regular in depositing undisputed statutory and other dues, including provident fund,, Income Tax, Sales Tax, Service Tax, Excise Duty and any other statutory dues with the appropriate authorities during the year.

b) As per the information and explanation given to us, no disputed amounts payable in respect of Income Tax, Wealth Tax, and Custom Duty were outstanding as on 31.03.2010 except in respect of Sales Tax demand of Rs 37.39 lacs in Sugar Unit and Rs 30.08 lacs in Distillery Unit against which appeal is pending before sales tax authorities.

X. The company has accumulated losses of Rs.2879.57 lacs and its paid up capital is Rs. 2944.19 Lacs and the accumulated losses at the end of the financial year are not less than fifty percent of its net worth. The Company has not incurred cash losses in the year under report and also has not incurred cash losses in the year immediately proceeding the current financial year.

XI. Based on our audit procedures and on the basis of information and explanations given by the management, we are of the opinion that the Company has not defaulted in the repayment of dues to State Bank of Patiala. During the year company has made the full and final payment of dues of State Bank of Patiala.

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

XIII. The company does not fall within the category of Chit fund/Nidhi/Mutual Benefit fund/ Society and hence the related reporting requirements are not applicable.

XIV. According to information and explanations given to us, the Company is not dealing or trading in shares, securities, debentures and other investments and hence the related reporting requirements are not applicable.

XV. The company has not given guarantee for loans taken by others from banks or financial institutions.

XVI. To the best of our knowledge and belief and according to the information and explanation given to us no term loans has been availed by the company.

XVII. According to the Cash flow statement and other records examined and as per the information and explanations given to us, on an overall basis, funds raised on short term basis have, prima facie, not been used during the year for long term investment and vice versa.

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

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

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

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



FOR JAIN & ASSOCIATES

CHARTERED ACCOUNTANTS

Sd/-

NEERAJ JAIN

PLACE: New Delhi (PARTNER)

DATE: 29-05-2010 M.N0.89477