Auditor Report of Pratiksha Chemicals Ltd.

Mar 31, 2014

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

Management''s Responsibility for the Financial Statements

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

Auditor''s Responsibility

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

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

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

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

Basis for Qualified Report

(i) Adhering to significant accounting policy, the company is accounting for Gratuity & Leave encashment on cash basis. This is not in according with Accounting Standard - 1 on "Disclosure of Accounting Policies and 15 on "Accounting for Retiring Benefits" prescribed by the Institute of Chartered Accounting of India and contrary to provision contained in Section 209(3) of The Companies Act, 1956. The extent of non-compliance in terms of value is not ascertainable.

(ii) Accounting Standard - 2 relating valuation of Inventories has not been followed. The technical valuation claimed by company is not quantifiable hence; we are not in a position to quantify the effect on the profit and loss account and balance sheet.

(iii) Balances of Unsecured Loans, Other Liabilities, Creditors, Debtors, Loans and Advances are subject to confirmation by the parties concerned and reconciliation thereof in subsequent years.

Opinion

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

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

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

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

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order, 2003 ("the Order") issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, 1956 and sub-section (11) of section 143 of the Companies Act, 2013, 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 explanation which to the best of our knowledge and belief were necessary for the purpose of our audit;

b. With subject to Basis for Qualified Opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;

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

d. In our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement comply with the Accounting Standards referred to in subsection (3C) of section 211 of the Companies Act, 1956 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.; Except point no. (i), (ii), (iii) of Basis for qualified Opinion.

e. On the basis of written representations received from the directors as on March 31, 2014, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2014, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956 and sub- section (2) of section 164 of the Companies Act, 2013.

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 Companies Act, 1956 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.

The annexure referred to in the Auditors Report to the members of Pratiksha Chemicals Limited for the year ended 31st March 2014, we report that:

1. (a) The Fixed Asset Register showing particulars including quantitative details and

situation of fixed assets is under compilation and updation.

(b) According to the information and explanation furnished to us, the company has not physically verified all of its fixed assets. Since the fixed assets records are still under compilation no comparison with the book records have been made. In the absence of such comparison, opinion as to discrepancies, if any, cannot be given.

(c) During the year, the company has not disposed off any substantial part of fixed assets.

2 (a) The Inventory have not been physically verified during the year by the management as informed to us.

(b) In our opinion, the procedures of physical verification of stocks followed by the Management are not 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 inventories records, in our opinion, the company is not maintaining the reasonable records of inventories. AS - 2 relating valuation of Inventories has not been followed. The technical valuation claimed by company is not quantifiable hence; we are not in a position to quantify the effect on the profit and loss account and balance sheet.

3 (a) The Company has not granted any loans, secured or unsecured, to companies,

firms or other parties covered in the Register maintained u/s.301 of the Companies Act, 1956. Accordingly the clauses 4(iii)(b), 4(iii)(c) and 4(iii)(d) of the report are not applicable.

(b) (i) As per the information and explanations given to us, the Company has taken unsecured loans having closing balance as on 31-03-2014 of Rs. 132.38 Lacs from three parties covered in the register maintained u/s 301 of the Companies Act, 1956 and

(ii) In our opinion, the terms and conditions on which loans have been taken from companies, firms or other parties listed in the registered maintained under section 301 of the Companies Act, 1956 are not prima facie prejudicial to the interest of the company

(iii) The company is regular in repaying the principle amounts as stipulated.

4. In our opinion and according to information and explanation given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business. However the same needs to be strengthened on a priority basis.

5. (a) According to information and explanations provided by the management, the particulars of contracts or arrangements referred to in section 301 of the act have been entered in the register required to be maintained under that section.

(b) In our opinion and according to the information and explanations given to us, the transactions exceeding Rs. 5 lacs made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 have been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

6. The company has not accepted any deposits from the public within the meaning of Section 58A and 58AA of the act and the rules framed there under.

7. In our opinion the company does not have internal audit system commensurate with the nature and the size of the business.

8. We have broadly reviewed the Cost Records maintained by the Company pursuant to the Companies (Cost Accounting Records) Rules, 2011 prescribed by the Central Government under section 209 (1) (d) of the Companies Act, 1956 and are of the opinion that prima facie the prescribed cost records have been maintained. We have, however, not made a detailed examination of the cost records.

9 (a) According to information and explanation given to us, and on the basis of our

examination of the books of accounts, the company is generally regular in depositing with appropriate authorities undisputed statutory dues and the company has no arrears except the liabilities of statutory dues as per schedule of current liabilities of such outstanding dues as at 31st March, 2014 for a period more than six months from the date they became payable.

(b) According to the information and explanation given to us, there are no disputed outstanding dues as at 31st March 2014.

10. The accumulated losses of the company exceeds fifty percent of net worth as at 31st March, 2014 after considering qualifications, as reported in the audit report, the effect of which could be ascertained. It has not incurred cash loss in the financial year ended on that date.

11. According to the records of the company examined by us and the basis of information and explanations given to us, the company has not defaulted in repayment of dues to any financial or bank or debenture holders.

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

13. The provisions of any special statue applicable to Chit fund, Nidhi, Mutual Benefit Funds or a Society are not applicable to the company.

14. In our opinion, the company is not dealing in or trading in shares, securities, debentures and other investments.

15. In our opinion and according to the information and explanation given to us, the company has not given any guarantee for loans taken by others from banks and financial institutions during the year.

16. In our opinion and according to the information and explanations given to us, the company has not obtained any term loans. Accordingly, clause 4(xvi) of the order is not applicable.

17. As per the information and explanation given to us, the company has not raised any funds on short-term basis, which have been used for long-term investments and vice- versa.

18. The company has not issued any preferential allotment of shares to parties and companies covered under register maintained under section 301 of The Companies Act, 1956.

19. During the year covered by audit report, the company has not issued any debentures.

20. The company has not raised any money by public issues during the year under review.

21. According to the information and explanations given to us, no fraud by the company has been noticed or reported during the course of our audit.

For, H. K. Shah & Co. Chartered Accountants Firm Registration No.: 109583/W

H.K.Shah Place: Ahmedabad (Partner) Date: 30/05/2014 M. No.: 042758

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Mar 31, 2010

1 . We have audited the attached Balance Sheet of Pratiksha Chemicals Limited as at 31st March 2010, the Profit and Loss Account and the Csh Flow Statement of the Coampny for the year ended on that date. both annexed thereto. These financial statements are the responsibility of the companys management. Our responsiblity is to express an poinion on these financial statements based on our audit.

2. We conductedo ur audit in accordance with auditings tandardsg enerallya cceptedi n lndia Those standards required that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstements. An audit includes examining. on a test basis, evidence supporting, the amounts and disclosures in the financial statements. An audit also inclides assessing the accouting principles used and sinificant 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 requred by the Comapnies (Audiros Report) Oder, 2003 issued by the Central Goemment of India in terms of sub-section (4A) of section 227 of the Coampnies Act.1956 and on the basis of such checks as we considered appropriate and according to information and explanations given to us, we enclose in the Annexure, a statement on the mattes specified in paragraph 4 and 5 of the sais order. 4. Particular attention is drawn:

(i) The comopany has not made provision for doubtful debts amounting to Rs. 22.88 lacs as at year end this has resuited in under statement of loss and over statement of current assets by Rs.22.88 lacs.

(ii) The company has not made adjustment in respect of deferred revenue expenditure amounting to Rs. 9 15 lac which has resulted in under statement of loss and over statement of loss and over statment of miscellaneous expenditure by such amont.

(iii) The comapny has not carried out impaiment test and accordingly the impairment loss if any has not been charged to profit and loss account. The impact of which on the profirs of the company could not be ascertained.

(iv) Adhering to significant caccounting policy, the company is accounting for Gratuity & Leave encashment on cash basis This is not in according with Accountng Standard -1 on "Disclosure of Accounting Policies and 15 on "Accounting for Retiring Benefits" prescribed by the institute of Chartered Accounting of India and conrtary to provision contained in Section 209(3) of The Coampnies Act. 1956 The extent of non-compliance in terms of value is not ascertainable.

(v) AS 2 relating valuation of inventiories has not been followed. The technical valuation claimed by compay is not quantifiable hence; we are not in a position to quantify the effect on the profit and loss acount and balance sheet.

(vi) The compay has not diclosed outstanding dues to Small Scale Industrial underatkings and details regarding the same.

(vii) Balances of Unsecured Loans, Other Liabilities, Creditors Debtors Loans and Advances are subject to confirmation by the parties concermed and reonciliation there of in suserquent years.

5. Further to our comments in the Annexure refer above, we report that:

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

b. In our opinion, subject to para - 4 above , proper books of account as required by law have been kept by the Company so far as appears from our examination of those books.

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

d. In our opinion the Balance Sheet, Profit and Loss Account and Cash Flow Statement comply with the accounting standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956, except note no. (iii), (iv), (v)

e. On the basis of written representations received from the directors of the company, as at March 31st, 2010 and taken on record by the board of directors, we report that none of the directors is disqualified from being appointed as director under clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956.

f. In our opinion and to the best of our information and according to the explanations given to us, the said accounts subject to para 4 above 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 the Balance Sheet, of the state of affairs of the Company as at 31st March, 2010

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

and

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



ANNEXURE TO THE AUDITORS REPORT

The annexure referred to in the Auditors Report to the members of Pratiksha Chemicals Limited to, the vear ended 31st March 2010, we report that:

1. (a) The Fixed Asset Register showihg particulars Including quantitative details and situation of fixed assets is under compilation and updation.

(b) According to the intormation and explanation furnished to us, the company has not physically opinion as to discrepancies, if any. can not be given.

(c) During the year, the company has no. disposed off any substantial par. of fixed assets.

2 (a) The inventory have been physical,, verified during the year by the management as informed to us

(c) on the basis of our examination of inventories records, in our opinion, the company is maintaining inventory as compared to book records have been properly dealt with in the books of accounts, by the company.

3 (a) The Company has not granted any loans, secured or unsecured, to companies, firms or other parties covered in the Register maintained u/s 301 of the Companies Act, 1956 Accordingly the clauses, 4(iii)(b), 4(iii)(c), and 4(iii)(d) of the report are no. applicable Companies Act, 1956. Act 1956 are not prima facie prejudicial to the interest of the company

(iii) The company is regular in repaying the principle amounts as stipulated

4. In our opinion and according to information and explanation give to us, there are adequate internal conrol procedures commensurate with the size of the Coampny and the nature of its business with regard to purchase of inbentoriies, fixed assets and with regard to the sale of goods.

During the corse of our audit we have not observed any conrunuing failure to correct major weaknesses in internal conrrol.

5 (a) According to information and explanatiosn provided by the management, the particluars of contacts or arragements referred to in section 301 of the act have been entered in the register required to be maintained under that section

(b) In our opinion and according to the information and explanations given to us, the transactions exeeding to us, the transactions exceeding Rs. 5 lacs made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 have been at prices which are reasonable having regard to prevailing market prices at the relevant time.

6 The company has not accepted any deposits from the public within the meaning of Section 58A and 58AA of the act and the rules framed there under.

7. In our opinion the company does not have internal audit system commensurate with the nature and the size of the business.

8 According to information and explanation given to us, the cenal Comapies maintenance of cost records under section 209(1)(d) of the Companies Act, 1956.

9 (a) According to information and explanation given to us, and on the basis of our examination of the books of accounts, the company is generally regular in depositing with appropriate authorities undisputed statutory dues and the company has no arrears of such outstanding dues as at 31st March, 2010 for a period more than six months from the date they became payable.

(b) According to the information and explanation given to us, there are no disputed outstanding dues as at 31st March, 2010.

10. The accumulated losses of the company exceeds fifty percent of net worth as at 31st March, 2009 after considering qualifications, as reported in the audit report, the effect of which could be ascertained It has not incurred cash loss in the financial year ended on that date but it has incurred cash losses in the immediately preceding financial year.

11. According to the records of the company examined by us and the basis of information and explanaions giben to us, the compay has not defaulted in repayment of dues to any financial or bank or debenture holders.

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

13. The provisions of any special statue applicable to Chit fund, Nidhi, Mutual Benefit Funds or a Society are not applicable to the company.

14. in our opinion, the company is not dealing in or trading in shares, securities, debentures and other investments.

15.In our opinion and according to the information and explanation given to us, the company has not given any guarantee for loans taken by others from banks and financial institutions during the year.

16. In our opinion and according to the information and explanations giben to us, the company has not obtained any term loans. Accordingly clause 4(xvi) of the order is not applicable.

17 As per the information and explanation given to us, the company has not raised any funds on short- term basis which have been used for long-term investments and vtce-versa.

18 The company has not issued any preferential allotment of shares to parties and companies covered under register maintained under section 301 of The Companies Act, 1956.

19 During the year covered by audit report; the company has not issued any debentures.

20 The company has not raised any money by public issues during the year under review.

21 According to the information and explanations given to us, no fraud on or by the company has been noticed or reported during the course of our audit.

For, H. K. SHAH & CO.

Chartered Accountants

FRN : 109583W

H. K SHAH

Partner

Mem. No.: 42758

Place : Ahmedabad

Date : 22nd August, 2010

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Mar 31, 2009

1. We have audited the attached Balance Sheet of Pratiksha Chemicals Limited as at 31st March, 2009, the Profit and Loss Account and the Cash Flow Statement of the Company for the year ended on that date, both 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 misstatements. An audit includes examining, on a test basis, evidence supporting, the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presenta- tion. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors Report) Order, 2003 issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956, and on the basis of such checks as we considered appropriate and according to information and explana- tions given to us, we enclose in the Annexure, a statement on the matters specified in paragraph 4 and 5 of the said order.

4. Particular attention is drawn:

(i) The company has not made provision for doubtful debts amounting to Rs. 22.88 lacs as at year end. This has resulted in under statement of loss and over statement of current assets by Rs.22.88 lacs.

(ii) The company has not made adjustment in respect of deferred revenue expenditure amounting to Rs. 9.15 lac, which has resulted in under statement of loss and over statement of miscellaneous expenditure by such amount.

(iii) The company has not carried out impairment test and accordingly the impairment loss if any has not been charged to profit and loss account. The impact of which on the profits oflthe company could not be ascertained.

(iv) Adhering to significant accounting policy, the company is accounting for Gratuity & Leave encashment on cash basis. This is not in according with Accounting Standard - 1 on "Disclosure of Accounting Policies and 15 on "Accounting for Retiring Benefits" prescribed by the Institute of Chartered Accounting of India and contrary to provision contained in Section 209(3) of The Companies Act, 1956. The extent of non- compliance in terms of value is not ascertainable.

(v) AS - 2 relating valuation of Inventories has not been followed. The technical valuation claimed by company is not quantifiable hence; we are not in a position to quantify the effect on the profit and loss account and balance sheet.

(vi) The company has not disclosed outstanding dues to Small Scale Industrial undertakings and details regarding the same;

(vii) Balances of Unsecured Loans, Other Liabilities, Creditors, Debtors, Loans and Advances are subject to confirmation by the parties concerned and reconciliation thereof in subsequent years.

(viii) Without considering item mentioned at para 4(ii),(iv), (v) & (vi) above, the effects of which could not be determined, had the observations made by us in para 4 (i), (iii) above been considered, the loss for the year would have been Rs 36.85 Lacs(as against the reported loss of Rs 4.82 Lacs), the current assets would have been Rs 359.25 Lacs ( as against reported amount of Rs 382.13 Lacs ), miscellaneous expenditure would have been NIL( as against reported amount of Rs 9.15 Lacs ).

5. Further to our comments in the Annexure refer above, we report that:

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

b. In our opinion, subject to para - 4 above , proper books of account as required by law have been kept by the Company so far as appears from our examination of those books.

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

d. In our opinion the Balance Sheet, Profit and Loss Account and Cash Flow Statement comply with the accounting standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956, except note no. (iv), (v), (vi)

e. On the basis of written representations received from the directors of the company, as at March 31st, 2009 and taken on record by the board of directors, we report that none of the directors is disqualified from being appointed as director under clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956.

f. In our opinion and to the best of our information and according to the explanations given to us, the said accounts subject to para 4 above 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 the Balance Sheet, of the state of affairs of the Company as at 31st March, 2009

b. in the case of the Profit and Loss Account, of the loss 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 1he year ended on that date.

ANNEXURE TO THE AUDITORS REPORT The annexure referred to in the Auditors Report to the members of Pratiksha Chemicals Limited for the year ended 31st March 2009, we report that:

1. (a) The Fixed Asset Register showing particulars including quantitative details and situation of fixed assets is under compilation and updation.

(b) According to the information and explanation furnished to us, the company has not physically verified all of its fixed assets. Since the fixed assets records are still under compilation no comparison with the book records have yet been made. In the absence of such comparison, opinion as to discrepancies, if any, can not be given.

(c) During the year, the company has not disposed off any substantial part of fixed assets.

2. (a) The Inventory (excluding stock with third parties) have been physically verified during the year by the management as informed to us. In respect of inventory lying with third parties, these have substantially been confirmed by them. In our opinion the frequency of verification is reasonable.

(b) In our opinion, the procedures of physical verification of stocks 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 inventories records, in our opinion, the company is maintaining the reasonable records of inventories. The discrepancies noticed on physical verification of inven- tory as compared to book records have been properly dealt with in the books of accounts, by the company.

3 (a) The Company has not granted any loans, secured or unsecured, to companies, firms or other parties covered in the Register maintained u/s.301 of the Companies Act, 1956. Accordingly the clauses 4(iii)(b), 4(iii)(c) and 4(iii)(d) of the report are not applicable.

(b) (i) As per the information and explanations given to us, the Company has not taken interest free unsecured loans from parties covered in the register maintained u/s.301 of the Compenies Act, 1956.

(ii) In our opinion, the terms and conditions on which loans have been taken from companies, firms or other parties listed in the registered maintained under section 301 of the Compa- nies Act, 1956 are not prima facie prejudicial to the interest of the company

(iii) The company is regular in repaying the principle amounts as stipulated

4. In our opinion and according to information and explanation given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard to purchase of inventories, fixed assets and with regard to the sale of goods.

During the course of our audit we have not observed any continuing failure to correct major weaknesses in internal control.

5 (a) According to information and explanations provided by the management, the particulars of con- tracts or arrangements referred to in section 301 of the act have been entered in the register required to be maintained under that section.

(b) In our opinion and according to the information and explanations given to us, the transactions exceeding Rs.5 lacs made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 have been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

6. The company has not accepted any deposits from the public within the meaning of Section 58A and 58AA of the act and the rules framed there under.

7. In our opinion the company does not have internal audit system commensurate with the nature and the size of the business.

8. According to information and explanation given to us, the central government has not prescribed maintenance of cost records under section 209(1 )(d) of the Companies Act, 1956.

9 (a) According to information and explanation given to us, and on the basis of our examination of the books of accounts, the company is generally irregular in depositing with appropriate authorities undisputed statutory dues and the company has no arrears of such outstanding dues as at 31st March, 2009 for a period more than six months from the date they became payable.

(b) According to the information and explanation given to us, there are no disputed outstanding dues as at 31st March, 2009.

10. The accumulated losses of the company exceeds fifty percent of net worth as at 31 st March, 2009 after considering qualifications, as reported in the audit report, the effect of which could be ascertained. It has not incurred cash loss in the financial year ended on that date but it has incurred cash losses in the immediately preceding financial year.

11. According to the records of the company examined by us and the basis of information and explanations given to us, the company has not defaulted in repayment of dues to any financial institution or bank or debenture holders.

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

13. The provisions of any special statue applicable to Chit fund, Nidhi, Mutual Benefit Funds or a Society are not applicable to the company.

14. In our opinion, the company is not dealing in or trading in shares, securities, debentures and other investments.

15. In our opinion and according to the information and explanation given to us, the company has not given any guarantee for loans taken by others from banks and financial institutions during the year.

16. In our opinion and according to the information and explanations given to us, the company has not obtained any term loans. Accordingly clause 4(xvi) of the order is not applicable.

17. As per the information and explanation given to us, the company has not raised any funds on short-term basis, which have been used for long-term investments and vice-versa.

18. The company has not issued any preferential allotment of shares to parties and companies covered under register maintained under section 301 of The Companies Act, 1956.

19. During the year covered by audit report, the company has not issued any debentures.

20. The company has not raised any money by public issues during the year under review.

21. According to the information and explanations given to us, no fraud on or by the company has been noticed or reported during the course of our audit.

For, H. K. SHAH & CO. Chartered Accountants

Sd/-

Place : Ahmedabad H.K SHAH

Partner Date : 22nd August, 2009 Mem. No. 42758