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Auditor Report of Raj Irrigation Pipes & Fittings Ltd.

Mar 31, 2014

We have audited the attached Balance Sheet of RAJ IRRIGATION PIPES AND FITTINGS LIMITED for the period of 18 months commencing from 1st October, 2012 to 31st March, 2014 and also the Profit and Loss Account for the period of 18 months and the Cash Flow Statement for the period of 18 months 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 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 (Auditors Report) Order, 2003, issued by the Central Government of India in terms of sub-section (4A) of Section 227 of Companies Act, 1956, we enclose in 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 in paragraph (3) above, we report that:

1. 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;

2. In our opinion, subject to our observations in para 6 and para i(a) of the Annexure to the Auditors'' Report, proper books of account as required by law have been kept by the Company so far as appears from our examination of the books;

3. The Balance Sheet and Profit and Loss Account dealt with by this report are in agreement with the books of account;

4. In our opinion, subject to our observations in para 6, 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;

5. On the basis of written representations received from the directors, as on 31st March, 2014 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March, 2014 from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act,1956;

6. The accounts have been prepared on the going concern concept. Considering the erosion of the net

worth, the sale of the Nagpur and Goa plants, absence of any commercial activity and any crystallized plans to recommence business operations, in our opinion the accounts need to be prepared on the realizable basis instead of the going concern basis. Consequently in our opinion the following assets have been overstated:

i. Investments in National Savings Certificates not backed by certificates Rs.35,010.

ii. Loans, advances and deposits under current assets by Rs.26,43,121 being sales tax dues paid under protest by the Company.

The impact of this is an understatement of the loss for the year by Rs.26,78,131.

7. The lease agreement for the registered office at Mumbai expired on 28.2.06 and has not been since renewed. The Company has made adhoc provision towards rent of Rs 200,724 and interest of Rs.550,000 during the current year. Provision for expenses under Current Liabilities and Provisions in the Balance Sheet includes provision of Rs 27,91,086 on this account to date. We are unable to ascertain the actual liability the Company would incur towards rent for the period from 30.9.12 to 31.03.14.

8. No provision has been made against sales tax demands disputed by the Company. Contingent liabilities includes disputed sales tax and excise duty demands of Rs 488,37,715 plus interest and penalty which may be levied by the Department and is unascertained at this stage. Payments of Rs 26,43,121 made against these demands are accounted as recoverable advances under Current Assets. We are unable to express an opinion on the ultimate outcome in this matter.

9. Current liabilities include provision for sundry creditors towards goods aggregating to Rs 110,29,840 and towards services for Rs 760,428. These amounts pertain to earlier years and are outstanding since long. They are subject to confirmation and consequent reconciliation. We are unable to ascertain the financial impact of the delay in settlement of these liabilities.

10. Sales tax dues of Rs 45,02,611 pertaining to the period July, 02 to February, 03 and Provident Fund dues of Rs 92,185 for the period from September, 2007 were overdue for payment. The interest/ penalty which may be levied by the authorities due to the delay in deposit of these statutory dues is unascertained at this stage.

11. In our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with the accounting policies and other notes attached thereto, subject to our observations in paragraphs 6, 7, 8 ,9 and 10 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 for the period of 18 months commencing from 1st October, 2012 to 31st March, 2014.

b) In the case of the Profit and Loss Account, of the loss for the period of 18 months commencing from 1st October, 2012 to 31st March, 2014.

and

c) In the case of the Cash Flow statement of the cash flows for the period of 18 months commencing from 1st October, 2012 to 31st March, 2014.

ANNEXURE TO THE AUDITORS'' REPORT

The Annexure referred to in the auditors'' report to the members of RAJ IRRIGATION PIPES AND FITTINGS LIMITED for the period of 18 months commencing from 1st October, 2012 to 31st March, 2014. We report that:

i. (a) The fixed assets register was not available for our verification. We were informed by the

management that the register is not traceable. The management has furnished us a list of fixed assets at its Head office. The asset wise cost particulars were not available.

(b) As explained the fixed assets have been physically verified by the management at reasonable intervals and no material discrepancy was noticed on such verification.

(c) The Company has disposed off a substantial part of its fixed assets in recent years. As stated in para 6 of the audit report this has affected the going concern status of the Company as it currently has no operations and no crystallized plans for recommencing its operations.

ii. The Company has no inventory during the year. Hence clause 4 (ii) of Companies (Auditors Report) Order, 2003 is not applicable.

iii. The Company has not granted unsecured loans to companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956. The Company has taken interest free unsecured loans from Directors and Shareholders as detailed below:

Maximum

No. of Closing balance as amount outstanding parties on 30.9.11 (Rs.) during the year (Rs.)

4 21,49,038 21,49,038

No terms and conditions have been fixed for these loans. In absence of the same, regularity of repayment and overdue amount if any, cannot be commented.

iv. The Company has not purchased inventory or fixed assets or sold goods or services during the year. Hence para 4(iv) of Companies (Auditor''s Report) Order, 2003 is not applicable.

v. (a) In our opinion and according to the information and explanations given to us, the

transactions that need to be entered into the register in pursuance to Section 301 of the Companies Act, 1956 have been so entered.

(b) Based on the information received and records verified there were no transactions made in pursuance of contracts or arrangements entered in the register maintained under section

301 of the companies Act, 1956, and exceeding the value of rupees five lakhs in respect of any party during the year.

vi. The Company has not accepted any deposits from the public and consequently, the directives issued by the Reserve Bank of India and the provision of sections 58A and 58AA of the Companies Act 1956 and rules made thereunder are not applicable.

vii. The Company does not have an internal audit system.

viii. We are informed that the Central Government has not prescribed maintenance of cost records under Section 209 (1) (d) of the Companies Act, 1956 for the products of the Company.

ix. (a) According to the information and explanations given to us and the records of the Company examined by us, the following statutory dues were outstanding as on 31.03.2014 for a period of more than six months from the date they became payable.

Name of the statute Nature of Dues Amount(Rs.) Period to which the amount relates Sales Tax Act Sales Tax 45,02,611 July''02 to February''03

Provident Fund Delayed payment 92,185 For the period prior charges to 30.09.07

(b) According to the information and explanations given to us and the records of the

Company examined by us, there are no dues in respect of income tax, sales tax, customs duty, wealth tax, excise duty and cess that have not been deposited with appropriate authorities on account of any dispute except for the following:-

Name of the Nature of Amount Period to which Forum where the statute Dues (Rs. in the Amount dispute is lakhs) relates pending

Sales Tax Act Sales Tax 666,517 1.1.85 to 30.6.85 2nd appeal before Tribunal

Sales Tax Act Sales Tax 15,92,996 1985-86 2nd appeal before Tribunal

Sales Tax Act Sales Tax 15,40,884 1986-87 2nd appeal before Tribunal

Sales Tax Act Sales Tax 32,79,847 1987-88 2nd appeal before Tribunal

Sales Tax Act Sales Tax 53,89,437 1988-89 2nd appeal before Tribunal

Sales Tax Act Sales Tax 54,90,730 1989-90 2nd appeal before Tribunal

Sales Tax Act Sales Tax 15,15,675 1990-91 2nd appeal before Tribunal

Sales Tax Act Sales Tax 86,92,319 1991-92 1st appeal before Dy. Comm

Sales Tax Act Sales Tax 60,32,450 1992-93 1st appeal beforr Dy. Comm

Sales Tax Act Sales Tax 138,15,624 1993-94 1st appeal before Dy. Comm

Sales Tax Act Sales Tax 166,181 1995-96 2nd appeal before Tribunal

Central Excise Excise Duty 655,055 July''00 to CESTAT, Mumbai 31.08.00

Against these demands the Company has deposited Rs 26,43,121

x. The Company has accumulated losses of Rs.11,18,22,542 at the end of the period and

has incurred a cash loss of Rs.6,62,107 for the period of 18 months commencing from 1st October, 2012 to 31st March, 2014 and cash loss of Rs.10,19,664 in the immediately preceding financial year.

xi. According to the information and explanations required and the records of the company examined by us, the company did not have any pending defaults in repayment of dues to banks and financial institutions as on 31.03.2014.

xii. According to the information and 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, nidhi, mutual benefit fund or a society.

xiv. According to the information and explanations given to us and the records of the Company examined by us, the Company is not dealing or trading in shares, securities, debentures and other investments.

xv. According to the information and explanations required and the records of the company examined by us, the Company has not given any guarantee for loans taken by others from banks or financial institutions.

xvi. During the period of 18 months, the Company has not taken any term loans. Hence para 4(xvi) of Companies (Auditor''s Report) Order, 2003 is not applicable.

xvii. In our opinion funds raised on short term basis have not been used for long term investments.

xviii. During the period of 18 months, 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.

xix. The Company has not issued any debentures during the period of 18 months.

xx. The Company has not raised any money by public issue during the period of 18 months.

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

For M. G. SHOUCHE & CO. CHARTERED ACCOUNTANTS

Place: Mumbai ( M. G. SHOUCHE ) Date: 25th April, 2014 PROPRIETOR Membership No.13102


Sep 30, 2012

We have audited the attached Balance Sheet of RAJ IRRIGATION PIPES AND FITTINGS LIMITED as at 30th September, 2012 and also the Profit and Loss Account for the year ended on that date and the Cash Flow Statement 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 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 (Auditors Report) Order, 2003, issued by the Central Government of India in terms of sub-section (4A) of Section 227 of Companies Act, 1956, we enclose in 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 in paragraph (3) above, we report that:

1. 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;

2. In our opinion, subject to our observations in Para 6 and Para i(a) of the Annexure to the Auditors' Report, proper books of account as required by law have been kept by the Company so far as appears from our examination of the books;

3. The Balance Sheet and Profit and Loss Account dealt with by this report are in agreement with the books of account;

4. In our opinion, subject to our observations in para 6, 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;

5. On the basis of written representations received from the directors, as on 30lh September. 2012 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 30lh September. 2012 from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act.] 956;

6 The accounts have been prepared on the going concern concept. Considering the erosion of the net worth, the sale of the Nagpur and Goa plants, absence of any commercial activity and any crystallized plans to recommence business operations, in our opinion the accounts need to be prepared on the realizable basis instead of the going concern basis. Consequently in our opinion the following assets have been overstated:

i. Investments in National Savings Certificates not backed by certificates Rs.35.010.

ii. Loans, advances and deposits under current assets by Rs.26.43J2] being sales tax dues paid under protest by the Company. The impact of this is an understatement of the loss for the year byRs.26,78,131

7. The lease agreement for the registered office at Mumbai expired on 28.2.06 and has not been since renewed. The Company has made Ado provision towards rent of Rs 200,724 and interest of Rs.550,000 during the current year. Provision for expenses under Current Liabilities and Provisions in the Balance Sheet includes provision of Rs 27,91,086 on this account to date. We are unable to ascertain the actual liability the Company would incur towards rent for the period from 28.2.06 to 30.9. J2.

8. No provision has been made against sales tax demands disputed by the Company. Contingent liabilities includes disputed sales tax and excise duty demands of Rs 488,37,715 plus interest and penalty which may be levied by the Department and is unascertained at this stage. Payments of Rs 26,43,121 made against these demands are accounted as recoverable advances under Current Assets. We are unable to express an opinion on the ultimate outcome in this matter.

9. Current liabilities include provision for sundry creditors towards goods aggregating to Rs 110,29,840 and towards services for Rs 760,428. These amounts pertain to earlier years and are outstanding since long. They are subject to confirmation and consequent reconciliation. We are unable to ascertain the financial impact of the delay in settlement of these liabilities.

10. Sales tax dues of Rs 45,02,611 pertaining to the period July, 02 to February, 03 and Provident Fund dues of Rs 92,185 for the period from September, 2007 were overdue for payment. The interest/ penalty which may be levied by the authorities due to the delay in deposit of these statutory dues is unascertained at this stage.

11. We draw the attention of the members to note 20 with regard to non-appointment of a Company Secretary which is a contravention of section 383 A of the Companies Act, 1956 and the non- obtaining of a compliance certificate from a Company Secretary by the Company.

12. In our opinion and to the best of our information and according to the explanations given to us, they said accounts read together with the accounting policies and other notes attached thereto, subject to our observations in paragraphs 6, 7. 8 ,9 and JO 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 30'h September,2012.

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 for the year ended on that date.

ANNEXURE TO THE AUDITORS' REPORT

The Annexure referred to in the auditors' report to the members of RAJ IRRIGATION PIPES AND FITTINGS LIMITED for the year ended 30th September,2012. We report that:

i. (a) The fixed assets register was not available for our verification. We were informed by the management that the register is not traceable. The management has furnished us a list of fixed assets a its Head office- The asset wise cost particulars were not available.

(b) As explained the fixed assets have been physically verified by the management at reasonable intervals and no material discrepancy was noticed on such verification.

(c) The Company has disposed off a substantial part of its fixed assets in recent years. As stated in Para 6 of the audit report this has affected the going concern status of the Company as it currently has no operations and no crystallized plans for recommencing its operations.

ii. The Company has no inventory during the year. Hence clause 4 (ii) of Companies (Auditors Report) Order, 2003 is not applicable.

iii. The Company has not granted unsecured loans to companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956. The Company has taken interest free unsecured loans from Directors and Shareholders as detailed below:

Maximum No. of Closing balance as amount outstanding parties on 30.09.12 (Rs.) during the year (Rs.)

4 21,49,038 21, 49,038



No terms and conditions have been fixed for these bans. In absence of the same, regularity of repayment and overdue amount if any, cannot be commented.

iv. The Company has not purchased inventory or fixed assets or sold goods or services during the year. Hence Para 4(iv) of Companies (Auditor's Report) Order, 2003 is not applicable.

v. (a) In our opinion and according to the information and explanations given to us, the transactions that need to be entered into the register in pursuance to Section 301 of the Companies Act, 1956 have been so entered.

(b) Based on the information received and records verified there were no transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the companies Act, 1956, and exceeding the value of rupees five lakhs in respect of any party during the year.

vi. The Company has not accepted any deposits from the public and consequently, the directives issued by the Reserve Bank of India and the provision of sections 58A and 58AA of the Companies Act 1956 and rules made there under are not applicable.

vii. The Company does not have an internal audit system.

viii. We are informed that the Central Government has not prescribed maintenance of cost records under Section 209 (1) (d) of the Companies Act, 1956 for the products of the Company.

ix. I am According to the information and explanations given to us and the records of the Company examined by us. the following statutory dues were outstanding as on 30.09.2012 for a period of more than six months from the date they became payable.

Name of the statute Nature of Dues Amount(Rs.) Period to which the amount relates

Sales Tax Act Sales Tax 45,02,611 July '02 to February '03

Provident Fund Delayed payment 92,185 For the period prior to 30.09.07 charges



(b) According to the information and explanations given to us and the records of the Company examined by us, there are no dues in respect of income tax, sales tax, customs duty, wealth tax, excise duty and cess that have not been deposited with appropriate authorities on account of any dispute except for the following:-



Name of the Amount Period to which Forum where the dispute statute Nature of (Rs. in lakhs) the Amount is pending Dues relates

Sales Tax Act Sales Tax 666,517 1.1.85 to 30.6.85 2nd appeal before Tribunal"

Sales Tax Act Sales Tax 15,92,996 1985-86 2nd appeal before Tribunal

Sales Tax Act Sales Tax 15,40.884 1986-87 2nd appeal before Tribunal

Sales Tax Act Sales Tax 32,79,847 1987-88 2nd appeal before Tribunal

Sales Tax Act Sales Tax 53,89,437 1988-89 2nd appeal before Tribunal

Sales Tax Act Sales Tax 54,90,730 1989-90 2nd appeal before Tribunal

Sales Tax Act Sales Tax 15,15,675 1990-91 2nd appeal before Tribunal

Sales Tax Act Sales Tax 86,92,319 1991-92 1st appeal before Dy. Comm

Sales Tax Act Sales Tax 60,32,450 1992-93 1st appeal before Dy. Comm

Sales Tax Act Sales Tax 138,15,624 1993-94 1st appeal before Dy. Comm

Sales Tax Act Sales Tax 166,181 1995-96 2nd appeal before Tribunal

Central Excise Excise Duty 655,055 July'00 to CESTAT, Mumbai 31.08.00

Against these demands the Company has deposited Rs 26, 43,121

x. The Company has accumulated loss of Rs. l1,11,60,435 at the end of the financial year and has incurred a cash loss of Rs.l0,19,664 in the financial year and cash loss of Rs.8,26,312 in the immediately preceding financial year.

xi. According to the information and explanations required and the records of the company examined by us, the company did not have any pending defaults in repayment of dues to banks and financial institutions as on 30.09.2012.

xii. According to the information and 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, nidhi, mutual benefit fund or a society.

xiv. According to the information and explanations given to us and the records of the Company examined

by us. the Company is not dealing or trading in shares, securities, debentures and other investments.

xv. According to the information and explanations required and the records of the company examined by us, the Company has not given any guarantee for loans taken by others from banks or financial institutions.

xvi. During the year, the Company has not taken any term loans. Hence Para 4(xvi) of Companies (Auditor's Report) Order, 2003 is not applicable.

xvii. In our opinion funds raised on short term basis have not been used for long term investments.

xviii. During the year, 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.

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

xx. The Company has not raised any money by public issue during the year.

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



For BHUCHAR & CHANDAK CHARTED ACCOUNTANTS

FIRM REGN NO. I0I439W

( V. RAJAGOPAL )

Place: Mumbai PARTNER

Date : 31.10.2012 Membership No.27318


Sep 30, 2011

We have audited the attached Balance Sheet of RAJ IRRIGATION PIPES AND FITTINGS LIMITED as at 30th September, 2011 and also the Profit and Loss Account for the year ended on that date and the Cash Flow Statement 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 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 (Auditors Report) Order, 2003, issued by the Central Government of India in terms of sub-section (4A) of Section 227 of Companies Act, 1956, we enclose in 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 in paragraph (3) above, we report that:

1. 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;

2. In our opinion, subject to our observations in Para 6 and Para i(a) of the Annexure to the Auditors' Report, proper books of account as required by law have been kept by the Company so far as appears from our examination of the books;

3. The Balance Sheet and Profit and Loss Account dealt with by this report are in agreement with the books of account;

4. In our opinion, subject to our observations in Para 6, 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;

5. On the basis of written representations received from the directors, as on 30th September, 2011 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 30th September, 2011 from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act,1956;

6. The accounts have been prepared on the going concern concept. Considering the erosion of the net worth, the sale of the Nagpur and Goa plants, absence of any commercial activity and any crystallized plans to recommence business operations, in our opinion the accounts need to be prepared on the realizable basis instead of the going concern basis. Consequently in our opinion the following assets have been overstated:

i. Investments in National Savings Certificates not backed by certificates Rs.35,010.

ii. Loans, advances and deposits under current assets by Rs.26,43,121 being sales tax dues paid under protest by the Company.

The impact of this is an understatement of the loss for the year by Rs.26,78,131.

7. The lease agreement for the registered office at Mumbai expired on 28.2.06 and has not been since renewed. The Company has made adhoc provision towards rent of Rs 200,724 and interest of Rs. 450,000 during the current year. Provision for expenses under Current Liabilities and Provisions in the Balance Sheet includes provision of Rs 20,40,362 on this account to date. We are unable to ascertain the actual liability the Company would incur towards rent for the period from 28.2.06 to 30.9.11.

8. No provision has been made against sales tax demands disputed by the Company. Contingent liabilities includes disputed sales tax and excise duty demands of Rs 488,37,715 plus interest and penalty which may be levied by the Department and is unascertained at this stage. Payments of Rs 23,21,600 made against these demands are accounted as recoverable advances under Current Assets. We are unable to express an opinion on the ultimate outcome in this matter.

9. Current liabilities include provision for sundry creditors towards goods aggregating to Rs 110,29,840 and towards services for Rs 760,428. These amounts pertain to earlier years and are outstanding since long. They are subject to confirmation and consequent reconciliation. We are unable to ascertain the financial impact of the delay in settlement of these liabilities.

10. Sales tax dues of Rs 45,02,611 pertaining to the period July, 02 to February, 03 and Provident Fund dues of Rs 92,185 for the period from September, 2007 were overdue for payment. The interest/ penalty which may be levied by the authorities due to the delay in deposit of these statutory dues is unascertained at this stage.

11. In our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with the accounting policies and other notes attached thereto, subject to our observations in paragraphs 6, 7, 8 ,9 and 10 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 30th September,2011.

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 for the year ended on that date.

ANNEXURE TO THE AUDITORS' REPORT

The Annexure referred to in the auditors' report to the members of RAJ IRRIGATION PIPES AND FITTINGS LIMITED for the year ended 30th September,2011. We report that:

i. (a) The fixed assets register was not available for our verification. We were informed by the management that the register is not traceable. The management has furnished us a list of fixed assets at its Head office. The asset wise cost particulars were not available.

(b) As explained the fixed assets have been physically verified by the management at reasonable intervals and no material discrepancy was noticed on such verification.

(c) The Company has disposed off a substantial part of its fixed assets in recent years. As stated in Para 6 of the audit report this has affected the going concern status of the Company as it currently has no operations and no crystallized plans for recommencing its operations.

ii. The Company has no inventory during the year. Hence clause 4 (ii) of Companies (Auditors Report) Order, 2003 is not applicable.

iii. The Company has not granted unsecured loans to companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956. The Company has taken interest free unsecured loans from Directors and Shareholders as detailed below:

Maximum No. of Closing balance as amount outstanding parties on 30.9.11(Rs.) during the year (Rs.)

4 18,99,377 18,99,377

No terms and conditions have been fixed for these loans. In absence of the same, regularity of repayment and overdue amount if any, cannot be commented.

iv. The Company has not purchased inventory or fixed assets or sold goods or services during the year. Hence Para 4(iv) of Companies (Auditor's Report) Order, 2003 is not applicable.

v. (a) In our opinion and according to the information and explanations given to us, the transactions that need to be entered into the register in pursuance to Section 301 of the Companies Act, 1956 have been so entered.

(b) Based on the information received and records verified there were no transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the companies Act, 1956, and exceeding the value of rupees five lakhs in respect of any party during the year.

vi. The Company has not accepted any deposits from the public and consequently, the directives issued by the Reserve Bank of India and the provision of sections 58A and 58AA of the Companies Act 1956 and rules made thereunder are not applicable.

vii. The Company does not have an internal audit system.

viii. We are informed that the Central Government has not prescribed maintenance of cost records under Section 209 (1) (d) of the Companies Act, 1956 for the products of the Company.

ix. (a) According to the information and explanations given to us and the records of the Company examined by us, the following statutory dues were outstanding as on 30.09.2011 for a period of more than six months from the date they became payable.

Name of the statute Nature of Dues Amount(Rs.) Period to which the amount relates

Sales Tax Act Sales Tax 45,02,611 July'02 to February'03

Provident Fund Delayed payment charges 92,185 For the period prior to 30.09.07

(b) According to the information and explanations given to us and the records of the Company examined by us, there are no dues in respect of income tax, sales tax, customs duty, wealth tax, excise duty and cess that have not been deposited with appropriate authorities on account of any dispute except for the following:-

Name of the Amount Period to which the statute Nature of Dues (Rs. in lakhs) Amount relates

Sales Tax Act Sales Tax 666,517 1.1.85 to 30.6.85

Sales Tax Act Sales Tax 15,92,996 1985-86

Sales Tax Act Sales Tax 15,40,884 1986-87

Sales Tax Act Sales Tax 32,79,847 1987-88

Sales Tax Act Sales Tax 53,89,437 1988-89

Sales Tax Act Sales Tax 54,90,730 1989-90

Sales Tax Act Sales Tax 15,15,675 1990-91

Sales Tax Act Sales Tax 86,92,319 1991-92

Sales Tax Act Sales Tax 60,32,450 1991-93

Sales Tax Act Sales Tax 138,15,624 1993-94

Sales Tax Act Sales Tax 166,181 1995-96

Central Excise Excise Duty 655,055 July'00 to 31.08.00



Name of the Director From where the dispute is pending

Sales Tax Act 2nd appeal before Tribunal

Sales Tax Act 2nd appeal before Tribunal

Sales Tax Act 2nd appeal before Tribunal

Sales Tax Act 2nd appeal before Tribunal

Sales Tax Act 2nd appeal before Tribunal

Sales Tax Act 2nd appeal before Tribunal

Sales Tax Act 2nd appeal before Tribunal

Sales Tax Act 1st appeal before Dy.comm

Sales Tax Act 1st appeal before Dy.comm

Sales Tax Act 1st appeal before Dy.comm

Sales Tax Act 2nd appeal before Tribunal

Central Excise CESTAT, Mumbai

Against these demands the Company has deposited Rs 23,21,600

x. The Company has accumulated loss of Rs.11,01,40,771 at the end of the financial year and has incurred a cash loss of Rs.826,312 in the financial year and cash loss of Rs.915,716 in the immediately preceding financial year.

xi. According to the information and explanations required and the records of the company examined by us, the company did not have any pending defaults in repayment of dues to banks and financial institutions as on 30.09.2011.

xii. According to the information and 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, nidhi, mutual benefit fund or a society.

xiv. According to the information and explanations given to us and the records of the Company examined by us, the Company is not dealing or trading in shares, securities, debentures and other investments.

xv. According to the information and explanations required and the records of the company examined by us, the Company has not given any guarantee for loans taken by others from banks or financial institutions.

xvi. During the year, the Company has not taken any term loans. Hence Para 4(xvi) of Companies (Auditor's Report) Order, 2003 is not applicable.

xvii. In our opinion funds raised on short term basis have not been used for long term investments.

xviii. During the year, 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.

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

xx. The Company has not raised any money by public issue during the year.

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

For BHUCHAR & CHANDAK CHARTERED ACCOUNTANTS

FIRM REGN NO. 101439W

Place: Mumbai (V. RAJAGOPAL)

Date: 29th November,2011 PARTNER

Membership No.27318


Sep 30, 2010

We have audited the attached Balance Sheet of RAJ IRRIGATION PIPES AND FITTINGS LIMITED as at 30th September, 2010 and also the Profit and Loss Account for the year ended on that date and the Cash Flow Statement 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 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 (Auditors Report) Order, 2003, issued by the Central Government of India in terms of sub-section (4A) of Section 227 of Companies Act, 1956, we enclose in 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 in paragraph (3) above, we report that:

1. 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;

2. In our opinion, subject to our observations in para 6 and para i(a) of the Annexure to the Auditors' Report, proper books of account as required by law have been kept by the Company so far as appears from our examination of the books;

3. The Balance Sheet and Profit and Loss Account dealt with by this report are in agreement with the books of account;

4. In our opinion, subject to our observations in para 6, 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;

5. On the basis of written representations received from the directors, as on 30th September, 2010 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 30th September, 2010 from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act,1956;

6. The accounts have been prepared on the going concern concept. Considering the erosion of the net worth, the sale of the Nagpur and Goa plants, absence of any commercial activity and any crystallized plans to recommence business operations, in our opinion the accounts need to be prepared on the realizable basis instead of the going concern basis. Consequently in our opinion the following assets have been overstated:

i. Investments in National Savings Certificates not backed by certificates Rs.35,010.

ii. Loans, advances and deposits under current assets by Rs.26,43,121 being sales tax dues paid under protest by the Company.

The impact of this is an understatement of the loss for the year by Rs.26,78,131.

7. The lease agreement for the registered office at Mumbai expired on 28.2.06 and has not been since renewed. The Company has made adhoc provision towards rent of Rs 200,724 and interest of Rs 350,000 during the current year. Provision for expenses under Current Liabilities and Provisions in the Balance Sheet includes provision of Rs 13,89,638 on this account to date. We are unable to ascertain the actual liability the Company would incur towards rent for the period from 28.2.06 to 30.9.10.

8. No provision has been made against sales tax demands disputed by the Company. Contingent liabilities includes disputed sales tax and excise duty demands of Rs 488,37,715 plus interest and penalty which may be levied by the Department and is unascertained at this stage. Payments of Rs 23,21,600 made against these demands are accounted as recoverable advances under Current Assets. We are unable to express an opinion on the ultimate outcome in this matter.

9. Current liabilities include provision for sundry creditors towards goods aggregating to Rs 110,29,840 and towards services for Rs 760,428. These amounts pertain to earlier years and are outstanding since long. They are subject to confirmation and consequent reconciliation. We are unable to ascertain the financial impact of the delay in settlement of these liabilities.

10. Sales tax dues of Rs 45,02,611 pertaining to the period July, 02 to February, 03 and Provident Fund dues of Rs 92,185 for the period from September, 2007 were overdue for payment. The interest/ penalty which may be levied by the authorities due to the delay in deposit of these statutory dues is unascertained at this stage.

11. In our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with the accounting policies and other notes attached thereto, subject to our observations in paragraphs 6, 7, 8 ,9 and 10 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 30th September,2010.

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 for the year ended on that date.

ANNEXURE TO THE AUDITORS' REPORT

The Annexure referred to in the auditors' report to the members of RAJ IRRIGATION PIPES AND FITTINGS LIMITED for the year ended 30th September,2010. We report that:

i. (a) The fixed assets register was not available for our verification. We were informed by the management that the register is not traceable. The management has furnished us a list of fixed assets at its Head office. The asset wise cost particulars were not available.

(b) As explained the fixed assets have been physically verified by the management at reasonable intervals and no material discrepancy was noticed on such verification.

(c) The Company has disposed off a substantial part of its fixed assets in recent years. As stated in para 6 of the audit report this has affected the going concern status of the Company as it currently has no operations and no crystallized plans for recommencing its operations.

ii. The Company has no inventory during the year. Hence clause 4 (ii) of Companies (Auditors Report) Order, 2003 is not applicable.

iii. The Company has not granted unsecured loans to companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956. The Company has taken interest free unsecured loans from Directors and Shareholders as detailed below:

Maximum No. of Closing balance as amount outstanding parties on 30.9.10 (Rs.) during the year (Rs.)

4 17,25,522 17,25,522

No terms and conditions have been fixed for these loans. In absence of the same, regularity of repayment and overdue amount if any, cannot be commented.

iv. The Company has not purchased inventory or fixed assets or sold goods or services during the year.

Hence para 4(iv) of Companies (Auditor's Report) Order, 2003 is not applicable.

v. (a) In our opinion and according to the information and explanations given to us, the transactions that need to be entered into the register in pursuance to Section 301 of the Companies Act, 1956 have been so entered.

(b) Based on the information received and records verified there were no transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the companies Act, 1956, and exceeding the value of rupees five lakhs in respect of any party during the year.

vi. The Company has not accepted any deposits from the public and consequently, the directives issued by the Reserve Bank of India and the provision of sections 58A and 58AA of the Companies Act 1956 and rules made there under are not applicable.

vii. The Company does not have an internal audit system.

viii. We are informed that the Central Government has not prescribed maintenance of cost records under Section 209 (1) (d) of the Companies Act, 1956 for the products of the Company.

ix. (a) According to the information and explanations given to us and the records of the Company examined by us, the following statutory dues were outstanding as on 30.09.2010 for a period of more than six months from the date they became payable.

Name of the statute Nature of Dues Amount(Rs.) Period to which the amount relates

Sales Tax Act Sales Tax 45,02,611 July'02 to February'03

Provident Fund Delayed payment 92,185 For the period prior to 30.09.07 charges

(b) According to the information and explanations given to us and the records of the Company examined by us, there are no dues in respect of income tax, sales tax, customs duty, wealth tax, excise duty and cess that have not been deposited with appropriate authorities on account of any dispute except for the following:-

Amount Period to which Forum where the dispute is Name of the Nature of (Rs. in lakhs) the Amount pending statute Dues relates

Sales Tax Act Sales Tax 666,517 1.1.85 to 30.6.85 Second appeal before Tribunal

Sales Tax Act Sales Tax 15,92,996 1985-86 Second appeal before Tribunal

Sales Tax Act Sales Tax 15,40,884 1986-87 Second appeal before Tribunal

Sales Tax Act Sales Tax 32,79,847 1987-88 Second appeal before Tribunal

Sales Tax Act Sales Tax 53,89,437 1988-89 Second appeal before Tribunal

Sales Tax Act Sales Tax 54,90,730 1989-90 Second appeal before Tribunal

Sales Tax Act Sales Tax 15,15,675 1990-91 Second appeal before Tribunal

Sales Tax Act Sales Tax 86,92,319 1991-92 First appeal before Dy.

Comm

Sales Tax Act Sales Tax 60,32,450 1992-93 First appeal before Dy.

Comm

Sales Tax Act Sales Tax 138,15,624 1993-94 First appeal before Dy. Comm

Sales Tax Act Sales Tax 166,181 1995-96 Second appeal before

Tribunal

Central Excise Excise Duty 655,055 July'00 to CESTAT, Mumbai 31.08.00

Against these demands the Company has deposited Rs 23,21,600

x. The Company has accumulated loss of Rs. 10,93,14,459 at the end of the financial year and has incurred a cash loss of Rs.915,716 in the financial year and cash loss of Rs.760,050 in the immediately preceding financial year.

xi. According to the information and explanations required and the records of the company examined by us, the company did not have any pending defaults in repayment of dues to banks and financial institutions as on 30.09.2010.

xii. According to the information and 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, nidhi, mutual benefit fund or a society.

xiv. According to the information and explanations given to us and the records of the Company examined by us, the Company is not dealing or trading in shares, securities, debentures and other investments.

xv. According to the information and explanations required and the records of the company examined by us, the Company has not given any guarantee for loans taken by others from banks or financial institutions.

xvi. During the year, the Company has not taken any term loans. Hence para 4(xvi) of Companies (Auditor's Report) Order, 2003 is not applicable.

xvii. In our opinion funds raised on short term basis have not been used for long term investments.

xviii. During the year, 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.

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

xx. The Company has not raised any money by public issue during the year.

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

For BHUCHAR & CHANDAK

CHARTERED ACCOUNTANTS

FIRM REGN NO. 101439W

Place: Mumbai (V. RAJAGOPAL)

Date: 3rd December,2010 PARTNER

Membership No.27318


Sep 30, 2009

We have audited the attached Balance Sheet of RAJ IRRIGATION PIPES AND FITTINGS LIMITED as at 30th September, 2009 and also the Profit and Loss Account for the year ended on that date and the Cash Flow Statement 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 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 (Auditors Report) Order, 2003, issued by the Central Government of India in terms of sub-section (4A) of Section 227 of Companies Act, 1956, we enclose in 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 in paragraph (3) above, we report that:

1. 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;

2. In our opinion, subject to our observations in para 6 and para i(a) of the Annexure to the Auditors Report, proper books of account as required by law have been kept by the Company so far as appears from our examination of the books;

3. The Balance Sheet and Profit and Loss Account dealt with by this report are in agreement with the books of account;

4. In our opinion, subject to our observations in para 6, 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;

5. On the basis of written representations received from the directors, as on 30th September,2009 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 30th September,2009 from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act,1956;

6. The accounts have been prepared on the going concern concept. Considering the erosion of the net worth, the sale of the Nagpur and Goa plants, absence of any commercial activity and any crystallized plans to recommence business operations, in our opinion the accounts need to be prepared on the realizable basis instead of the going concern basis. Consequently in our opinion the following assets have been overstated:

i. Investments in National Savings Certificates not backed by certificates Rs.35,010.

ii. Loans, advances and deposits under current assets by Rs.26,43,121 being sales tax dues paid under protest by the Company.

The impact of this is an overstatement of the profit for the year by Rs.26,78,131.

7. The lease agreement for the registered office at Mumbai expired on 28.2.06 and has not been since renewed. The Company has made adhoc provision towards rent of Rs 200,724 and interest of Rs 300,000 during the current year. Provision for expenses under Current Liabilities and Provisions in the Balance Sheet includes provision of Rs 838,914 on this account to date. We are unable to ascertain the actual liability the Company would incur towards rent for the period from 28.2.06 to 30.9.09.

8. No provision has been made against sales tax demands disputed by the Company. Contingent liabilities includes disputed sales tax demands of Rs 363,00,371 and payments of Rs 26,43,121 made against the same is accounted as recoverable advances under Current Assets. We are unable to express an opinion on the ultimate outcome in this matter.

9. Current liabilities include provision for sundry creditors towards goods aggregating to Rs 110,29,840 and towards services for Rs 760,428. These amounts pertain to earlier years and are outstanding since long. They are subject to confirmation and consequent reconciliation. We are unable to ascertain the financial impact of the delay in settlement of these liabilities.

10. In our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with the accounting policies and other notes attached thereto, subject to our observations in paragraphs 6, 7, 8 and 9 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 30th September,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 for the year ended on that date.



ANNEXURE TO THE AUDITORS REPORT

The Annexure referred to in the auditors report to the members of RAJ IRRIGATION PIPES AND FITTINGS LIMITED for the year ended 30th September,2009. We report that:

i. (a) The fixed assets register was not available for our verification. We were informed by the management that the register is not traceable. The management has furnished us a list of fixed assets at its Head office. The asset wise cost particulars were not available.

(b) As explained the fixed assets have been physically verified by the management at reasonable intervals and no material discrepancy was noticed on such verification.

(c) The Company has disposed off a substantial part of its fixed assets in recent years. As stated in para 6 of the audit report this has affected the going concern status of the Company as it currently has no operations and no crystallized plans for recommencing its operations.

ii. The Company has no inventory during the year. Hence clause 4 (ii) of Companies (Auditors Report) Order, 2003 is not applicable.

iii. The Company has not granted unsecured loans to companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956. The Company has taken interest free unsecured loans from Directors and Shareholders as detailed below:

Maximum

No. of Closing balance as amount outstanding

parties on 30.9.09 (Rs.) during the year (Rs.)

4 13,59,713 13,59,713



No terms and conditions have been fixed for these loans. In absence of the same, regularity of repayment and overdue amount if any, cannot be commented.

iv. The Company has not purchased inventory or fixed assets or sold goods or services during the year. Hence para 4(iv) of Companies (Auditors Report) Order, 2003 is not applicable.

v. (a) In our opinion and according to the information and explanations given to us, the transactions that need to be entered into the register in pursuance to Section 301 of the Companies Act, 1956 have been so entered.

(b) Based on the information received and records verified there were no transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the companies Act, 1956, and exceeding the value of rupees five lakhs in respect of any party during the year.

vi. The Company has not accepted any deposits from the public and consequently, the directives issued by the Reserve Bank of India and the provision of sections 58A and 58AA of the Companies Act 1956 and rules made thereunder are not applicable.

vii. The Company does not have an internal audit system.

viii. We are informed that the Central Government has not prescribed maintenance of cost records under Section 209 (1) (d) of the Companies Act, 1956 for the products of the Company.

ix. (a) According to the information and explanations given to us and the records of the Company examined by us, the following statutory dues were outstanding as on 30.09.2009 for a period of more than six months from the date they became payable.

Name of the statute Nature of Dues Amount(Rs-) Period to which the amount relates

Sales Tax Act Sales Taxes 45,02,611 July02 to February03

Provident Fund Provident Fund 92,185 For the period prior to 30.09.07

(b) According to the information and explanations given to us and the records of the Company examined by us, there are no dues in respect of income tax, sales tax, customs duty, wealth tax, excise duty and cess that have not been deposited with appropriate authorities on account of any dispute except for the following:-

Amount Period to which the Forum where the dispute is

Name of the statute Nature of Dues (Rs. in lakhs) Amount relates pending Sales Tax Act Sales Tax 30.06 30.06.88 1st Appeal to Deputy Commissioner

57.52 31.03.89

61.57 31.3.90

19.55 30.06.86 2nd Appeal before the 3rd

34.91 30.06.87 Bench of Maharashtra

19.53 31.03.91 Sales Tax Tribunal.

1.71 30.06.96

Central Excise Excise Duty 5.55 July00 to 31.08.00 CESTAT, Mumbai



x. The Company has accumulated loss of Rs. 10,83,98,743 at the end of the financial year and has incurred a cash loss of Rs.7,60,050 in the financial year and cash profit of Rs.2,02,55,703 in the immediately preceding such financial year.

xi. According to the information and explanations required and the records of the company examined by us, the company did not have any pending defaults in repayment of dues to banks and financial institutions as on 30.09.2009.

xii. According to the information and 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, nidhi, mutual benefit fund or a society.

xiv. According to the information and explanations given to us and the records of the Company examined by us, the Company is not dealing or trading in shares, securities, debentures and other investments.

xv. According to the information and explanations required and the records of the company examined by us, the Company has not given any guarantee for loans taken by others from banks or financial institutions.

xvi. During the year, the Company has not taken any term loans. Hence para 4(xvi) of Companies (Auditors Report) Order, 2003 is not applicable.

xvii. In our opinion funds raised on short term basis have not been used for long term investments.

xviii. During the year, 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.

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

xx. The Company has not raised any money by public issue during the year.

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



For BHUCHAR & CHANDAK

CHARTERED ACCOUNTANTS

Place: Mumbai ( V. RAJAGOPAL )

Date: 4th December,2009 PARTNER

Membership No.27318





 
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