Auditor Report of Quasar India Ltd.

Mar 31, 2015

Report on Financial Statements

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

Management's Responsibility for the Financial Statements

The Company's Board of Directors 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 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 of 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 but not for the purpose of expressing an opinion on whether the Company has in place the adequate internal financial control system over financial reporting and the operating effectiveness of such controls. 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 financial statements.

Opinion

In our opinion and to the best of our information and 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 accounting principles generally accepted in India, of the state of affairs of the company as at 31st March 2015 and its profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

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

f) 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 does not have any pending litigations in its financial statements;

ii) The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses. However, company does not enter into any long-term contracts including derivative during the specified period;

iii) The Company is not required to transfer any amount to the Investor Education and Protection Fund.

g) As required by the Companies (Auditors' Report) Order 2015 (the Order) issued by the Central Government of India in terms of section 143(11) of the Act, we give in the 'Annexure' a statement on the matters specified in paragraphs 3 and 4 of the Order.

"ANNEXURE" TO THE AUDITOR'S REPORT

(As referred in paragraphs of our report)

(i) In respect of fixed assets: -

(a) According to information and explanations given to us, the company has maintained proper records showing the full particulars including quantitative details and situation of fixed assets; and

(b) According to information and explanation given to us, fixed assets of the Company has been physically verified by its management once during the year which in our opinion, is reasonable having regard to size of business and nature of fixed assets. We have been informed that no material discrepancies have been noticed by the management on such verification.

(ii) In respect of Inventories: -

(a) As per information, physical verification of inventories has been conducted once at the end of year which in our opinion is reasonable having regard to size and nature of business; and

(b) According to information and explanations given to us, the procedure followed by the management at the time of physical verification of inventories is reasonable and adequate in relation to size of the Company and nature of its business; and

(c) According to information and explanations given to us, the Company is maintaining proper records of inventories and we have been informed that no material discrepancies were noticed on physical verification;

(iii) According to the information and explanations given to us and on the basis of our examination of the books of account, the Company has not granted any loans, secured or unsecured, to companies, firms or other parties covered in the register maintained under Section 189 of the Companies Act, 2013. Consequently, the provisions of clauses iii(a) and iii(b) of the order are not applicable to the Company.

(iv) In our opinion and according to the explanations 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 the purchase of fixed assets and for sale of goods or supply of services. During the course of audit,

we have not observed any continuing failure to correct major weaknesses in internal controls;

(v) According to information and explanations given to us, the Company has not accepted public deposits and the provision of section 73 to 76 or other relevant provisions of the Companies Act, 2013 and rules framed thereunder are not applicable to the Company;

(vi) Maintenance of cost records as prescribed under section 148(1) of the Companies Act, 2013 are not applicable to the company;

(vii) In respect of timely deposit of statutory dues as applicable to Company: -

(a) The company is generally regular in payment of its undisputed statutory dues such as Income Tax, Provident Fund, Wealth Tax, Service Tax and other statutory dues as applicable, to the appropriate authorities. There are no statutory dues outstanding as on last day of financial year for a period of more than six months from the date they became payable; and

(b) According to information and explanations given to us, there is no outstanding statutory dues on the part of Company which is not deposited on account of dispute;

(c) According to information and explanations given to us, Company is not required to transfer any amount to Investor Education and Protection Fund in accordance with the relevant provisions of Companies Act, 1956 and rules made thereunder to transfer such fund.

(viii) According to information and explanations given to us, the company does not have any accumulated losses and the Company has not incurred any cash losses during the financial year covered by this report and immediately preceding financial year;

(ix) According to information and explanation given to us, the company has not defaulted in repayment of dues to any bank or financial institution;

(x) According to information and explanation given to us, the Company has not given guarantee for loan taken by others from bank or financial institutions;

(xi) According to information and explanation given to us, Company has not obtained any term loan during the year and no term loans are outstanding on the Company at the end of year;

(xii) During the course of our examination of books of accounts and according to information and explanation given to us, no fraud on or by the company has been noticed or informed during the year.

Signed for the purpose of identification

FOR V.N. PUROHIT & CO.

Chartered Accountants

Firm Regn. No. 304040E

Sd/-

O.P. Pareek

Partner

Membership No. 014238

New Delhi, the 29th day of May 2015

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Mar 31, 2013

We have audited the attached Balance Sheet as al 31st March, 2013 and also the Statement of Profit and toss & the Cash Ftow Statement for the year ended on that date annexed thereto Ihese 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 misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disctosures in the hn.m, ,., statements. An audit also includes assessing the accounting prim ipk«s used mk signilh anl estimates made by management, as well as evaluation the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

As required by the Companies (Auditor''s Report} Order, 2003 as amended bj the C oinnuni, s (Auditor''s Report) (Amended) Order, 2004 issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956, we enctose m the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order

Further to our comments in the Annexure referred to above, we report that :

(0 We have obtained all the information and explanations, which to the best of our knowledge an belief were necessary for the purpose of our audit;

(ii) In our opinion, proper books of account as required by law have been kept In the company so far as appears from our examination of those books.

(iii) The Balance Sheet and Statement of profit and toss and the cast, Mow statements dealt with by this report are in agreement with the books of account.

(iv) In our opinion, the Balance Sheet and Statement of profit and toss and the C ash I Urn Statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956;

(v) On the basis of written representations received from the directors, as on , 2013 and taken on records by the Board of Directors, we report that nonv 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) section 274 of the C ompanies Act, l«5fc

(vi) In our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information required by the C ompanies Act, 1956, in the manner so required and give a true and lair 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; and

(b) in the case oi the Statement of Profit and toss, of the profit for the car ended on that date; and

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

Annexure to Auditors Report Referred to in Paragraph 3 of our report of even date

1. In respect of its fixed assets:

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

b) As explained to us, all the fixed assets have been physically verified by the management in a phased periodical manner, which in our opinion is reasonable, having regard to the size of the company and nature of its assets. No material discrepancies were noticed on such physical verification.

c) In our opinion, the company has not disposed off a substantial part of its fixed assets du run'', the year and the going concern status of the company is not affected.

2. In respect of Inventories consisting of shares and securities held in other C ompany :

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

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

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

3. In respect of the toans, secured or unsecured, granted or taken by the compan) to hum companies, firms or other parties covered in the register maintained under section 501 of the Companies Act, 195b:

a) In our opinion, and according to the information and explanation given to us, the compan) has not granted any toans, secured or unsecured during the year to companies, linns or other parties covered in the register maintained under Section Mil of the companies 1956. Consequently, the requirements as per clause (iii) (e) of paragraph -1 oi the order are not applicable in case of the company.

b) The Company has not taken any toans, secured or unsecured during the earn form companies, firms or other parties covered in the registei maintained undei Section in the Companies Act, 1956. Consequently, the requirements as per clause (iii) of and (iii) (g) of paragraph 4 of the order are not applicable in case of the compan)

4 In our opinion, and according to the information and explanation given to us then is adequate internal controf 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 oi goods or services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal controf system.

5 As explained and according to information given to us there has not been any contract of arrangement referred to in section 301 of the Act, particulars of which need to be entered in the register required to be maintained under section 301 of the Companies Act, 19 16

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

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

8. The cost record maintained by the Companies (Cost Accounting Records) Rules, 2011 prescribed by the Central Government under section 209(i)(d) of the Companies Act 1956 are not applicable to the company.

9 In respect of statutory dues:

a) According to the records of the company, undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Emptoyees Slate Insurance. Income-tax, Sales-tax, Wealth Tax, Service Tax, Custom Duly, Excise Duty, Cess other statution dues have been generally regularly deposited with the appropriate authorities- According to Ihe information and explanations given to us, there are no undisputed amount payable in respect of the aforesaid statutory dues were outstanding as at 31.03.201 » foi a period of more than six months from the date of becoming payable.

b) According to the information and explanations given to us, there are no outstanding Statutory dues on the part of company which is not deposited on account of dispute.

10 The company does not have accumulated tosses at the end of financial year. I he compam has not incurred any cash tosses during the financial year covered by the audit and in the immediately preceding financial year.

11. According to the information and explanations given to us the company has nut taken am toan from any financial institution or bank or debenture holder.

12. The Company has not granted toans advances on the basis of security by pledge of shares, debentures and other securities, and in our opinion, adequate documents and records are maintained.

13. The Company is not a chit fund, nidhi or mutual benefit society, therefore, the provisions of clause (xiii) of paragraph 4 of the Order are not applicable to the Company.

14. The Company has kept adequate records of its transactions
15. According to the information and explanations given to us, the company lias not given any guarantee for toans taken by other from bank or financial institutions.

16 As per information and explanations given to us, the company has not obtained any termduring the year and no term toans are outstanding on the company at the end of year.

17. According to the information and explanations given to us, no funds raised on short-term basis have been used for tong-term investment.

18. According to the information and explanations given to us no preferential altotment of shares has been made by the company to companies, firms or other parlies listed in the register maintained under section 301 of the Companies Act,

19. The company has not issued any debentures. Hence the requirements of clause (xix) of paragraph 4 of the Order is not applicable to the company

20. As explained to us, the management has disctosed on the end use of money raised by publc issues and the same has been verified.

21. According to the information and explanations given to us, a fraud on or by the company has not been noticed or reported during the year,

For V.N.PUROHIT & CO. Firm Kegn. No. 3Q4040E Chartered Accountants

O.P. Pareek Place: New Delhi Partner Date :05/09/2013 M.No.014238

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Mar 31, 2012

We have audited the attached Balance Sheet of "Quasar India Limited" as at 31st March 2012 and also the Profit and Loss account for the period ended on that date annexed thereto. These financial statements are also the responsibilities of 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. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from 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.

As required by the Companies (Auditor''s Report) Order, 2003, issued by the Government of India in terms of sub- section (4A) of Section 227 of the Companies Act, 1956, as applicable to this company, we give in the Annexure, a statement on the matters specified in paragraphs 4 & 5 of the said Order.

Further to our comments in the Annexure referred to above, we report that:

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

(ii) 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.

(iii) The Balance Sheet and Profit and Loss Account referred to in this report are in agreement with the books of account.

(iv) In our opinion, the Profit and Loss Account and the Balance Sheet comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Income Tax Act, to the extent applicable to the Company.

(v) On the basis of written representation received from directors, as on 31st March 2012, and taken on record by Board of Directors, we report that none of the director 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

In our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information required by he 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 31 st March, 2012

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

c) In the case of Cash Flow Statements of the Company for the periou ended on ihal date

ANNEXURE-1 TO THE AUDITORS'' REPORT (Report in terms of paragraph 4 of Companies (Auditor''s Report) Order, 2003)

(i) (a) The Company does not have any fixed Assets

(b) Not applicable to the Company, as explained at clause (a) above

(c) Not applicable to the Company, as explained at clause (a) above

(ii) (a) Physical verification of inventory has been conducted at reasonable intervals by the management. In our opinion, the frequency of verification is reasonable.

(b) Procedure of physical verification of inventory followed by the management is reasonable and adequate in relation to the size of the company and the nature of its business

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

(iii) (a) The company has not granted any loans, secured cr unsecured to companies, firms or other parties covered in the register maintained under section 301 of the Act.

(b) Not applicable to the company, as explained at clause (a) above.

(c) Not applicable to the company, as explained at clause (a) above.

(d) Not applicable to the company, as explained at clause (a) above.

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

(f) Not applicable to the company, as explained at clause (e) above.

(g) Not applicable to the company, as explained at clause (e) above.

(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 with regard to purchases of inventory and fixed assets, if any. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal controls.

(v) (a) According to the information and explanations given to us, we are of the opinion that the transactions that need to be entered into the register maintained under section 301 of the Companies Act, 1956, if any, have been so entered.

(b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts of arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of rupees five lakhs in respect of any party during the year have been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

(vi) In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public. 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

(vii) In our opinion, the company has an internal audit system commensurate with the size and nature of its business.

(viii) No records are required to be maintained by the company pursuant to the Rules made by the Central Government for the maintenance of cost records under section 209 (1) (d) of the Companies Act, 1956.

(ix) (a) The company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident fund, investor education protection fund, employees'' state insurance, income tax, sales tax, wealth tax, service tax, custom duty, excise duty, Cess and other material statutory dues applicable to it.

(b) I According to the information and explanations given to us, no undisputed amounts payable in respect of income tax, wealth tax, sales tax, service tax, custom duty, excise duty and Cess were in arrears, as at 31.03.2013 for a period of more than six months from the date they became payable.

(c) According to the information and explanations given to us, there are no dues of sales tax, income tax, custom duty, wealth tax, service tax, excise duty and Cess, which have not been deposited on account of any dispute.

(x) In our opinion, the company has no accumulated losses at the end of the financial year and it has not incurred cash losses during the financial year covered by our audit and the immediately preceding financial year.

In our opinion the matters specified in the clause has been arrived at after considering the effect of the quantified qualifications on the figures of accumulated losses, net worth and cash losses and that the effect of un-quantified qualifications has not been taken into consideration for the purposes of making comments in respect of this clause.

(xi) In our opinion and according to the information and explanations given to us, the company has not defaulted in repayment of dues to a financial institution, bank or debenture holders.

(xii) In our opinion and according to the information and explanations given to us, the Company has not granted any loans and 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 or a nidhi, mutual benefit fund / society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditor''s Report) Order, 2003 are not applicable to the company.

(xiv) In our opinion, the company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the Companies (Auditor''s Report) Order, 2003 are not applicable to the company.

(xv) According to the information and explanations given to us, the company has not given guarantees for loans taken by others from banks or financial institutions.

(xvi) In our opinion, the Company has not taken any term loans during the year under audit.

(xvii) According to the information and explanations given to us, and on an overall examination of the balance sheet of the company, we are of the opinion that the no funds, if any, raised on short-term basis have been used for long-term investment.

(xviii) According to the 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 30 i of the Act.

(xix) According to the information and explanations given to us, during the period covered by our audit report, the company had not issued any debenture.

(xx) The Company has not raised money by way of public issues during the year under audit.

(xxi) Based upon the audit procedures performed and 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, that causes the financial statements to be materially misstated.

FOR: SINGH AGARWAL & ASSOCIATES CHARTERED ACCOUNTANTS FRN-004702C

Place: New Delhi MUKESH KUMAR AGARWAL Date: 09.06.2012 PARTNER M. No. 073355

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Mar 31, 2011

We have audited the attached Balance Sheet of''Quasar India Limited", as at 31st March 2011 and also the Profit and Loss account for the period 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 misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statement. 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.

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

Further to our comments in the Annexure referred to above, we report that:

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

(ii) In our opinion proper books of account as requireJ by law have been kept by the company so far as appears from our examination of those books.

(iii) The Balance Sheet and Profit and Loss Account dealt with by this report are in Agreement with the books of account;

(iv) In our opinion, the Balance Sheet and Profit and Loss Account dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956;

(v) On the basis of written representations received from the directors, as on 31st March, 2011, and taken on record by the Board of Directors, we icport that none of the directors is disqualified as on 31st March 2011 from being appointed as a Director in terms of clause (g) of sub-section (I) of section 274 of the Companies Act, 1956;

In our opinion and to the best of our information a.id according to the explanations given to us, the said accounts give the information required by the Complies Act, 1956, in the manner so required and give a true and fair view in conformity with CtC 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, 2011;and

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

ANNEXURE-1 TO THE AUDITORS'' REPORT (Referred to in paragraph 3 of our report of even date)

(i) (a) I The company is maintaining proper records showing fuil particulars, including quantitative details and situation of fixed assets.

(b) These fixed assets have been physically verified by the management at reasonable intervals; no material discrepancies were noticed on such verification and if so, the same have been properly dealt with in the books of account;

(c) No substantial pan of fixed assets have been disponed oii during the year, which can affect the going concern status;

(ii) (a) Physical verification of inventory has been conducted at reasonable intervals by the management. In our opinion, the frequency of verification is reasonable.

(b) Procedure of physical verification of inventory followed by the management is reasonable and adequate in relation to the size of the company and the nature of its business

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

(iii) (a) As explained to us, the company had neither taken nor granted any loans, secured or unsecured, to or from any companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956.

(b) Not applicable to the company, as explained at clause (a) above.

(c) Not applicable to the company, as explained at clause (a) above.

(d) Not applicable to the company, as explained at clause (a) above.

(e) The company has not taken any loans, secured or unsecured form companies, firms or other parties covered in the register maintained under section 301 of the Act. I Accordingly, clauses (iii) (e), (iii) (0 and (iii) (g) of paragraph 4 of the Order are not. applicable to the company for the current year; and

(f) Not applicable to the company, as explained at clause (e) above.

(g) Not applicable to the company, as explained at clause (e) above.

(iv) In our opinion and according to the information and o.pkmau''ons given to us, there are adequate internal control procedure; commensurate with the size of the company and the nature of its business with regard to purchases of inventory and fixed assets, if any. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal controls.

(v) (a) In our Opnion and according to the information and explanations given to us, there are no contracts or arrangements referred to in Section. 301 of the Act during the year that need to be entered in the register maintained under that Section. Accordingly clause (v) (b) of paragraph 4 of the Order is not applicable to the company for the current year.

(b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts of entered in the register mainin.ned under section 301 of the Companies Acl 1956 and exceeding the value of rupees five lakhs in respect of any party during the year have been made at prices which are reasonable having regard to prevailing market price: aj the relevant time.

(vi) In our opinion and according to the in format ion and explanations given to us, the Company I has not accepted any deposits from the public. 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

(vii) In our opinion, the company has an internal audit system commensurate with the size and nature of its business.

(viii) It has been explained to us that the maintenance of cost records has not been prescribed under section 209(1) (d) of the Companies Act, 1956.

x) (a) The company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident fund, investor education protection fund, employees'' state insurance, income tax, sales tax, wealth tax, service tax, custom duty, excise duty, Cess and other material statutory dues applicable to it.

(W According to the information and explanations given to us, no undisputed amounts payable in respect of income tax. wealth tax, sales tax, service tax, custom duty, excise duiy and Cess were in arrears, tax, at 31.03.2011 for a period of more than six months from the date they became payable.

(c) According to the information and explanations given to us, there are no dues of sales lax, income tax, custom duty, wealth tax, service tax. excise duty and Cess, which have not been deposited on account of any dispute.

(x) T In our opinion, the company has no accumulated losses at the end of the financial year and it has not incurred cash losses during the financial year covered by our audit and the. immediately preceding financial year.

In our opinion the matters specified in the clause has been arrived at after considering the effect of the quantified qualifications on the figures of accumulated losses, net worth and cash losses and that the effect of un-quantifieel qualifications has not been taken into consideration for the purposes of making comments in respect of this clause.

(xi) Based on our audit procedures ami according to the information and explanations given to us, we are of Ihe opinion, the company has not defaulted in repayment of dues to a financial institution, bank or debenture holders.

(xii) In our opinion and according to the information pnd explanations given to us, the company has not granted loans and 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 or a nidhi, mutual benefit fund / society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditor''s Report) Order, 2003 are not applicable to the company.

(xiv) The company has maintained proper records of Transactions and contracts in respect of trading in .shares, securities, debentures and other investments and timely entries have been made therein. AH shares, debentures and aiiie: investments have been bold by the company in its own name.

(xv) According to the information and explanations given to us, the company 1ms not given guarantees for loans taken by others from banks or financial institutions.

(xvi) In our opinion, the Company has not taken any term loans during the year under audit.

(xvii) According to the information and explanations given to us, and on an overall examination of the balance sheet of the company, we are of the opinion that the no funds, if any. raised on short-term basis have been used for long-term investment.

(xviii) According to the 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 Act.

(xix) According to the information and explanations given to us, during the period covered by our audit report, the company had not issued any debenture.

(xx) The Company has not raised money by way of public issues during the year under audit.

(xxi) Based upon the audit procedures performed and 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, that causes the financial statements to be materially misstated.

For: Singh Agarwal & Associates Chartered Accountants

(Mukesh Kumar Agarwal) Partner (M. No. 073355)