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Auditor Report of Rajasthan Petro Synthetics Ltd.

Mar 31, 2015

1 We have audited the accompanying financial statements of RAJASTHAN PETRO SYNTHETICS LIMITED ("the Company"), which comprise the Balance Sheet as at 31st March, 2015, the Statement of Profit and Loss and 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

2 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 and presentation 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 provision of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error

Auditors' Responsibility

3 Our responsibility is to express an opinion on these financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made 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.

4 An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments; the auditor considers internal control relevant to the Company's preparation and fair presentation of the financial statements in order to design the audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. An audit also includes evaluating the appropriateness of accounting policies used and reasonableness of the accounting estimates made by the management, as well as evaluating the overall presentation of the financial statements.

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

Opinion

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

(i) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2015;

(ii) in the case of the Statement of Profit and Loss, of the Loss of the Company for the year ended on that date; and

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

7 As required by the Companies (Auditor's Report) Order, 2015 ('Order'), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we enclose in the Annexure, a statement on the matters specified in paragraphs 3 and 4 of the said Order, to the extent applicable.

8 As required by Section143 (3) of the Act, we report that:

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

b. in our opinion proper books of accounts as required by the law have been kept by the Company, so far as it appears from our examination of those books;

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

d. In our opinion, the Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in section 133 of the Companies Act, 2013;

e. on the basis of written representations received from the directors as on 31 March 2015, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31 March 2015 from being appointed as director in terms of section 164(2) of the Companies Act, 2013 and

f. With respect to the other matters to be included in the Auditor's Report in accordance with Rule11 of the Companies (Audit and Auditors)Rules,2014,in our opinion and to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigation on its financial position in its financial statements refer Note 19 to the financial statements.

ii. The Company did not have any foreseeable losses on long term contracts and had no derivative contracts outstanding as at 31st March, 2015; and

iii. The Company did not have any dues on account of Investor Education and Protection Fund.

ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 7 of our report of even date to the members of Rajasthan Petro Synthetics Limited on the financial statements for the year ended 31st March, 2015)

i) (a) The Company has now Office equipments as fixed assets at the close of year, the fixed Asset Register of which is being prepared.

(b) The Company has physically verified the Office equipments during the year which in our opinion is reasonable having regard to size of the company and the nature of the assets.

ii) The Company does not have any Inventory therefore this clause is not applicable.

iii) According to the information and explanations given to us, the Company has, during the year, 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. Accordingly, paragraph 3(iii) of the Order is not applicable.

iv) In our opinion and according to the information and explanations given to us, there are internal control systems commensurate with the size of the Company and the nature of its business with regard to purchase of fixed assets and with regard to sale of service.

v) The Company has not accepted public deposits during the year.

vi) The Central Government has not prescribed maintenance of cost accounts for the type of activities of the Company pursuant to the rules made by the Central Government of India for the maintenance of cost records under clause (d) of Sub Section (1) of Section 148 of the Companies Act, 2013.

vii) (a) According to the records examined by us , during the year, no deductions were made towards Provident Fund and Employee's State Insurance. The Company was regular in depositing with appropriate authorities Income Tax, and other statutory dues deducted by it during the year.

However, Undisputed Statutory dues amounting to Rs. 21.39 Lacs in respect of ESI, Rs. 8.59 Lacs in respect of Sales Tax, Rs. 0.10 Lacs in respect of excise duty, Rs. 4.87 Lacs in respect of Textile Committee cess and Rs. 0.13 Lacs in respect of TDS were outstanding as at 31st March, 2015 for the period of more than 6 month from the date they became payable.

(b) According to the records of the Company, the dues of income tax, service tax, duty of excise, cess and value added tax, which have not been deposited on account of dispute and the forum where the dispute are pending, are as under:

S. No. Status Nature of Taxes Amount involved Forum where dispute is pending (Rs. In Lacs)

1. Central Excise Act, 1944 Excise Duty 169.23 Supreme Court

2. Central Excise Act, 1944 Excise Duty 4.67 C.E.S.T.A.T. Delhi

3. Central Excise Act, 1944 Excise Duty 3.23 Dy. Commissioner of Excise (Appeals) Jaipur

4. Sales Tax Department Sales Tax 82.77 SLSC

5. Central Excise Act, 1944 Excise Duty 2.33 Central Excise & Gold Appellate Tribunal

6. Central Excise Act, 1944 Service Tax 1.11 Asst. Commissioner of Central Excise & Customs.

(c) The Company did not have any dues on account of Investor Education and Protection Fund.

viii) There are accumulated losses of Rs.3092.43 lacs as on 31st March 2015 which is more than 50% of its net worth. The company has incurred cash losses in the current year but not in the immediately preceding year of the Company.

ix) There are no loans from any Financial Institute or banks. Hence, this clause of the Order is not applicable.

x) According to the information and explanations given to us, Company has not given any guarantee during the year for loans taken by others from banks or financial institution.

xi) In our opinion and according to the information and explanations given to us, the Company has not raised any term loans during the year.

xii) Based upon the audit procedures performed and to the best of our knowledge and according to the information and explanations given to us by the management, we report that no fraud on or by the Company has been noticed or reported during the course of our audit.

PLACE: NEW DELHI FOR M B R & COMPANY

DATE : 27TH May 2015 CHARTERED ACCOUNTANTS

FRN 021360N

(MUKESH SHARMA)

PARTNER

M. NO. 0511275


Mar 31, 2014

1. We have audited the accompanying financial statements of RAJASTHAN PETRO SYNTHETICS LTD. ("the Company"), which comprise the Balance Sheet as at 31st March, 2014, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information.

Management's responsibility for the Financial Statements

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

Auditors' Responsibility

3. Our responsibility is to express an opinion on these financial statements based on our audit. We conduct our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements and free from material misstatement.

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

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

Opinion

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

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

(ii) in the case of the Statement of Profit and Loss, of the Profit for the year ended on that date; and

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

Report on Other Legal and Regulatory Requirements

7. As required by the Companies (Auditors' Report) Order, 2003, ("the Order") issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order, to the extent applicable to the Company.

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

a. we have obtained all the information and explanation which to the best of our knowledge and belief were necessary for the purpose of our audit;

b. in our opinion books of accounts as required by the law have been kept by the Company, so far as appears from our examination of those books;

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

d. In our opinion, the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement comply with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956;

e. On the basis of written representations received from the Directors as on 31st March, 2014 and taken on record by the Board of Directors, 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;

ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT

Annexure referred to in paragraph 7 under the heading "Report on other Legal and Regulatory Requirements" of the Independent Auditor's report of even date to the matters of RAJASTHAN PETRO SYNTHETICS LIMITED ("the Company") on the financial statements for th^. year ended 31" March, 2014)

1. (a) The Company has now Office equipments as fixed assets at the close of year, the fixed Asset Register of which is being prepared.

(b) The Company has physically verified the Office equipments during the year which in our opinion is reasonable having regard to size of the company and the nature of the assets.

2. The Company has not disposed off major fixed assets during the year.

3. The Company does not have any Inventory therefore this clause is not applicable.

4. The Company has neither granted nor taken any loans, secured or unsecured to/from Companies firm or other parties covered in the register maintained under section 301 of the Companies Act, 1956.

5. 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 purchase of fixed assets and with regard to income from Billing Agency for C & F operations.

6. The Company has not entered in to any transactions with any Company covered in the register maintained under section 301 of the Companies Act, 1956, and accordingly clause (v) of Para-4 of the Order is not applicable to it.

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

8. A firm of Chartered Accountants has conducted the internal audit of the Company for the year under audit. On the basis of the reports submitted by the internal auditors to the management, in our opinion the internal audit is system commensurate with the size of the Company and nature of its business.

9. The Central Government has not prescribed maintenance of cost records for the type of services in which the Company is engaged.

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

(a) During the year no deduction were made towards Provident Fund and Employee's State Insurance. The Company was regular in depositing with appropriate authorities Income Tax and other statutory dues deducted by it during the year.

Undisputed Statutory dues amounting to Rs. 21.39 Lacs in respect of ESI, Rs. 8.59 Lacs in respect of Sales Tax, Rs. 0.10 Lacs in respect of Cenvat Payable, Rs. 4.87 Lacs in respect of Textile Committee cess and Rs. 0.13 Lacs in respect of TDs were outstanding as at 31st March, 2014 for the period of more than 6 month from the date they became payable.

(b) According to the records of the Company, the dues of customs, service tax, excise duty, income tax, which have not been deposited on account of disputes and the forum where the dispute are pending, are as under:

SI. Status Nature of Taxes Amount Involved No (Rs. In Lacs)

1. Central Excise Act, 1944 Excise Duty 169.23

2. Central Excise Act, 1944 Excise Duty 4.67

3 Central Excise Act, 1944 Excise Duty 3.23

4 Sales Tax Department Sales Tax 63.46

5 Central Excise Act, 1944 Excise Duty 2.33

6 Central Excise Act, 1944 Service Tax 1.11

7 Income Tax Act, 1961 Income Tax (For AY 08-09) 1584.66

SI. Status Forum where dispute is Pending No

1. Central Excise Act, 1944 Supreme Court

2. Central Excise Act, 1944 C.E.S.T. Delhi

3 Central Excise Act, 1944 Dy. Commissioner of Excise (Appeals) Jaipur

4 Sales Tax Department SLSC

5 Central Excise Act, 1944 Central Excise & Gold Appellate Tribunal

6 Central Excise Act, 1944 Asst. Commissioner of Central Excise & Customs.

7 Income Tax Act, 1961 ITAT Delhi

11. There are accumulated losses of Rs.3091.80 lacs as on 31st March 2014 which is more than 50% of its networth.

The company has not Incurred cash losses in the current year and in the immediately preceding year.

12. There are no loans from my Financial Institute or banks. Hence, clause (xi) of paragraph 4 of the order is not applicable.

13. According to the information and explanation given to us, the company has not granted loans and advances on the basis of the security by way of pledge of shares, debenture and other securities, hence, clause (xii) of order is not applicable.

14. Clause (xiii) of the Order is not applicable to the Company as the company is not a Chit Fund Company or Nidhi/ mutual benefit fund/ society.

15. In our opinion, the Company is not dealing in or trading in shares, securities, debenture, and other investments, Accordingly, the provisions of clauses 4(xiv) of the Companies (Auditor Report) Order, 2003 are not applicable to the Company. However, all investments have been held by it in its own name.

16. According to the information and explanations given to us, Company has not given any guarantees for loans taken by others from bank or financial institutions.

17. According to the information and explanation given to us, no term loans were raised during the year.

18 According to the information and explanation given to us and on an overall examination of the Balance Sheet of the Company, we report that no funds raised on short-term basis have been used for long-term investment.

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

20. During the year covered by our audit report the Company has not issued secured debentures.

21. The Company has not raised any money by public issue during the year covered by our report.

FOR MBR & CO. CHARTERED ACCOUNTANTS FRN 021360N

PLACE: NEW DELHI (CA- MUKESH SHARMA) DATE: 30th May. 2014 PARTNER M. NO. 511275


Mar 31, 2012

1. We have audited the attached Balance Sheet of RAJASTHAN PETRO SYNTHETICS LTD, as at 31st March 2012, the related Statement of Profit and Loss for the year ended on that date annexed thereto, and the Cash Flow Statement of the company for the year ended on that date, which we have signed under reference to this report. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

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

3. As required by the Companies (Auditors' Report) Order, 2003 issued by the Central Government in terms of Section 227 (4A) of the Companies Act. 1956, and on the basis of such checks as considered appropriate and according to the information and explanation given to us during the course of our audit, we enclose in the Annexure hereto a statement on the matters specified in paragraphs 4 and 5 of the said Order.

4. Further to our statement mentioned in the Para 3 above, we report that;

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

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

c) The Balance Sheet and Statement of Profit and Loss and Cash Flow dealt with by the report are in agreement with the Books of Account of the Company;

d) In our opinion, the Statement of Profit & Loss and Balance Sheet and Cash Flow Statement comply with the mandatory Accounting Standards referred to in Sub-Section 3 (c) of Section 211 of the Companies Act, 1956,

e) According to the information and explanation given to us and on the basis of written representations received from the Directors as on 31st March 2012 of the Company and taken on record by the Board of Directors we report that none of the Directors is disqualified as on 31st March 2012, from being appointed as a Director in terms of clause (g) of Sub Section (1) of Section 274 of the Companies Act, 1956;

f) In our opinion and to the best of our information and according to the explanations given to us, the financial statements read with the notes thereon and Significant Accounting Policies thereon, 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:

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

(ii) In the case of the Statement of Profit and Loss of the Profit of the Company for the year ended on that date;

And

(iii) in case ot the cash flow statement, of the cash flows for the year ended on that date.

1. (a) The Company has now office equipments as fixed assets at the close of year, the fixed Assets Register of which is being prepared.

(b) The Company has physically verified the Office equipments during the year which in our opinion is reasonable having regard to the size of the Company and the nature of the assets.

(c) The Company has not disposed off major fixed assets during the year.

2.(a) There are no Inventories of stores and spares and

(b) There is no purchase of store and spares during the year.

3. The Company has neither granted nor taken any loans, secured or unsecured to / from Companies, firm or other parties covered in the register maintained under section 301 of the Companies Act, 1956.

4. 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 purchase of fixes assets and with regard to income from transportation and contract clearing & forwarding services.

5. The Company has neither given nor taken any loan to / from any Company covered in the register maintained under section 301 of the Companies Act, 1956, and accordingly clause (v) of para-4 of the Order is not applicable to it.

6. The company has not accepted and deposits from the public with in the meaning of section 58A and 58AA of the Act and the rules framed thereunder.

7. A firm of Chartered Accountants has conducted the internal audit of the Company for the year under audit. On the basis of the reports submitted by the internal auditors to the management, in our opinion the internal audit is system commensurate with the size of the Company and nature of its business.

8. The Company has not maintained cost records during the year under audit, as there was no manufacturing activity.

9. According to the information and explanation given to us in respect of statutory and other dues.

(a) During the year no deduction were made towards provident Fund and Employee's state Insurance. The Company was regular in depositing with appropriate authorities Income Tax, and other statutory dues deducted by it during the year.

Undisputed Statutory dues amounting to Rs. 1.64 Lacs in respect of Provident Fund, Rs. 21.39 Lacs in respect of ESI, Rs. 8.59 Lacs in respect of Sales Tax, Rs. 0.10 Lacs in respect of Cenvat payable, Rs.4.87 Lacs in respect of Textile Committee cess and Rs.0.13 Lacs in respect of TDS were outstanding as at 31st March, 2012 for the period of more than 6 month from the date they became payable.

(b) Details of Sales Tax, Income Tax, Custom Duty not deposited on account of disputes are as under:

Sl Status Nature of Taxes Amount Involved Forum where dispute is pending No (Rs. In Lacs)

1. Central Excise Act, 1944 Excise Duty 169.23 Supreme Court

2. Central Excise Act, 1944 Excise Duty 4.67 C.E.S.T. Delhi

3. Central Excise Act, 1944 Excise Duty 3.23 Dy.Commissioner of Excise (Appeals) Jaipur

4. Sales Tax Department Sales 63.46 Rajasthan Tax Board

5. Central Excise Act, 1944 Exise Duty 2.33 Central Excise & Gold Appellate Tribunal

6. Central Excise Act, 1944 Service Tax 1.11 Asst. Commissioner of Central Excise & Customs

7. Income Tax Act, 1961 Income Tax (For AY 08-09) 1584.66 CIT(A)

10. There are accumulated losses of Rs, 3.140.61 lacs as on 31st March 2012 which is more than 50% its networth. The company has not Incurred cash losses in the current year and in the immediately preceding year

11. There are no loans from any Financial Institution or banks. Hence, clause (xi) of paragraph 4 of the order is not applicable.

12. According to the information and explanation given to us, the company has not granted loans and advances on the basis of the security by way of pledge of shares, debenture and other securities

13. Clause (xiii) of the Order is not applicable to the Company as the company is not a Chit Fund Company or Nidhi/ mutual benefit fund/ society.

14. In ouf opinion, the Company is not dealing in or trading in shares, securities, debenture, and other investments. Accordingly, the provisions of clauses 4 (xiv) of the Companies (Auditors Report) Order 2003 are not applicable to the Company. However, all investments have been held by it in its own name or nominees.

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

16. According to the information and explanations given to us. no term loans were raised during the years.

17. According to the information and explanation given to us and on an overall examination of the Balance Sheet of the Company, we report that no funds raised on short-term basis have beer* used for long-term investment.

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

19. During the year covered By our audit report the Company has not issued secured debentures

20. The Company has not raised any money by public issue during the year covered by our report.

21. Based upon the audit procedures performed and as per the information and explanation given to us, no fraud on or by the Company has been noticed or reported during the year.

For M B R & Co.

Chartered Accountants

Place : New Delhi

Date: 30.05.2012 (CA. MUKESH SHARMA)

Partner

M No. 511275

ICAI'S FRN 021360N


Mar 31, 2010

1. We have audited the attached Balance Sheet of RAJASTHAN PETRO Synthetics LTD. as at 31st March 2010, the related Profit and Loss Account for the year ended on that date annexed thereto, and the Cash Flow Statement of the company for the year ended on that date, which we have signed under reference to this report. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

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

3. As required by the Companies (Auditors' Report) Order, 2003 issued by the Central Government in terms of Section 227 (4A) of the Companies Act, 1956, and on the basis of such checks as considered appropriate and according to the information and explanation given to us during the course of our audit, we enclose in the Annexure hereto a statement on the matters specified in paragraphs 4 and 5 of the said Order.

4. Further to our statement mentioned in the Para 3 above, we report that:

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

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

c) The Balance Sheet and Profit and Loss Account and Cash Flow dealt with by the report are in agreement with the Books of Account of the Company;

d) in our opinion, the Profit & Loss Account and Balance Sheet and Cash Flow Statement comply with the mandatory Accounting Standards referred to in Sub-Section 3 (c) of Section 211 of the Companies Act, 1958;

e) According to the information and explanation given to us and on the basis of written representations received from the Directors as on 31st March 2010 of the Company and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on 31a March 2010, from being appointed as a Director in terms of clause (g) of Sub Section (1) of Section 274 of the Companies Act, 1956;

f) in our opinion and to the best of our information and according to the explanations given to us, the said Accounts subject to note C(1) of part II of Schedule "N" in respect of awaiting no dues certificate from some of the secured creditors, non deposit of share application money of Rs.1.05 lacs in investor Education & Protection Fund as required u/s 205C of the Companies Act, 1956, read with the notes thereon and Significant Accounting Policies thereon, 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:

(i) in the case of the Balance Sheet, of the state of affairs of the company as at 31st March

2010.

(ii) in the case of the Profit and Loss Account, of the Loss of the Company for the year ended on that date;

(iii) In case of the cash flow statement, of the cash flows for the year ended on that date.

ANNEXURE REFERRED TO IN PARAGRAPH f 1) OF EVEN DATE

1.
(b) The Company has physically verified the Computers and office equipments during the year which in our opinion is reasonable having regard to the size of the Company and the nature of the assets -

(c) The Company has not disposed off major fixed assts during the year. 2 (a) There are no inventories of stores and spares and

(b) There is no purchase of store and spares during the year.

3. The Company has neither granted nor taken any loans, secured or unsecured to/from Companies, firms or other parties ft covered in the register maintained under section 301 of the Companies Act,1956,

4. 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 purchase of fixed assets and with regard to incomes from transportation and billing agent work.

5 According to the information and explanations given to us there are no contracts or arrangements referred to in section 301 of the Companies Act, 1956 during the year, to be entered in the register maintained under that section. Accordingly clause (v) of paragraph 4 of the order is not applicable.

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

7 A firm of Chartered Accountants has conducted the internal audit of the Company for the year under audit. On the basis of the reports submitted by the internal auditors to the management, in our opinion the internal audit system commensurate with the sfee of the Company and nature of its business.

8 The Company has not maintained cost records during the year under audit, as there was no manufacturing activity.

9 According to the information and explanation given to us in respect of statutory and other dues;

(a) During the year no deduction were made towards Provident Fund and Employee's State insurance. The Company was regular in depositing with appropriate authorities Income Tax, Sales Tax and other statutory duos deducted by it during the year. Undisputed Statutory dues pertaining to period prior to 3181 Sept,2008 Rs. 1.05 Lacs in respect of Investors Education and Protection Fund Rs. 3,80 Lacs in respect of Provident Fund, Rs. 21.39 Lacs in respect of F.Si, Rs. 8,59 Lacs in respect of Sales Tax, Rs, 0.10 Lacs in respect of Convert payable, Rs. 4.87 Lacs in respect of Textile Committee cess and Rs. 0,13 Lacs in respect of TDS were outstanding as at 31st March, 2010 for the period of more than 6 month from the date they became payable.

(b) Details of Sales Tax Income Tax, Custom Duty not deposited on account of disputes are as under:

SI. Status Nature of Taxes Amount involved Forum where dispute is No Pending Rs. In Lacs)

1 Central Excise Act. 1944 Excise Duty 189.23 Supreme Court

2 Central Excise Act, 1944 Excise Duty 4.67 C.E.S.T. Delhi

3 Central Excise Act, 1944 Excise Duty 3.23 Dy. Commissioner of Excite,(Appeals),

4 Sales Tax Dept Sales Tax 63.46 Rajasthan Tax Board

5 Central Excise Act. 1944 Excise Duty 2.33 Central Excise & Gold Appellate Tribunal

6 Central Excise Act 1944 Service Tax 1.11 Asst. Commissioner of Central Excise &Customs



10 There are accumulated losses of the Company as on 31st March 2010. The company has not incurred cash losses in the current year and immediately in preceding year.

11. There are no loans from any Financial institution or banks. Hence, clause (xi) of paragraph 4 of the order is not applicable.

12. According to the information and explanation given to us, the company ha not granted loans and advances on the basis of the security by way of pledge of shares, debenture and other securities.

1.3. Clause (xiii) of the Order is not applicable to the Company as the company is not a Chit Fund Company or Nidhi/ mutual benefit fund/ society.

14. In our opinion, the Company is not dealing in or trading in shares, securities, debenture, and other investments. Accordingly, the provisions of clauses 4 (xiv) of the Companies (Auditors Report) Order, 2003 are not applicable to the Company. However, ail investments have been held by it in its own name or nominees.

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

16. According to the information and explanations given to us, no term loans were raised during the years,

17. According to the information and explanation given to us and on an overall examination of the Balance Sheet of the Company, we report that no funds raised on short-term basis have been used for long-term investment.

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

19. During the year covered by our audit report the Company has not issued secured debentures,

20. The Company has not raised any money by public issue during the year covered by our report.

21. Based upon the audit procedures performed and as per the information and explanation given to us, no fraud oh or by the Company has been noticed or reported during the year;

For MBR & Co.

Chartered Accountants

Place : New Delhi

Date: 28.08.2010 (CA. MUKESH SHARMA)

Partner

M. No. 511275

ICAI'SFRN021360N

 
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