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Auditor Report of REI Six Ten Retail Ltd.

Mar 31, 2015

We have audited the accompanying financial statements of REI SIX TEN RETAIL LIMITED ("the Company"), which comprise the Balance Sheet as at 31st March, 2015, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.

MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

AUDITOR'S RESPONSIBILITY

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

We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

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

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

BASIS OF QUALIFIED OPINION

Trade Receivables amounting to Rs. 87.23 Crores is outstanding for considerable period of time. No confirmations have been received for these customers. In our opinion the debts are doubtful of recovery against which no provision has been made in the financial statements.

QUALIFIED OPINION

In our opinion and to the best of our information and according to the explanations given to us, except for the possible effects of the matter described in the basis for the qualified opinion paragraph, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principle generally accepted in the India of the state of affairs of the company as at 31st March, 2015, and its Loss and its Cash flows for the year ended on that date.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

i. As required by the Companies (Auditor's Report) Order, 2015 ("the Order") issued by the Central Government, we give in the Annexure a statement on the matters specified in the Order.

ii. As required by Section 143 (3) of the Act, we report that:

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

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

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

d) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

e) No written representations have been received, from any of the directors as such we are unable to comment whether any of the director is disqualified as on 31st March, 2015from being appointed as the directors of the company in terms of section 164(2)of the Act.

f) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:

i. The Company has estimated and disclosed the possible impact of pending litigations on its financial position in its financial statements Refer Note 32;

ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;

iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.

Annexure to the auditor's report

(Referred to in paragraph (1) under Report on Other Legal and Regulatory Requirements of our Report of even date)

We report that:

i) In respect of its Fixed Assets:

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

b. All Fixed Assets have been physically verified by the management during the year and there is a regular programme of physical verification which, in our opinion, is reasonable having regards to the size of the company and nature of its assets. No material discrepancies were noticed on such verification.

c. No fixed assets have been sold during the year.

ii) In respect of inventories:

a. As explained to us the Inventories have been physically verified by the management at reasonable intervals. In our opinion the frequency of verification is reasonable. The inventory as on the balance sheet date was NIL.

b. The procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of the business.

c. The company has maintained proper records of its inventories and no material discrepancies were noticed on physical verification of Inventories as compared to the book records.

iii) In respect of the loans, secured or un-secured, granted or taken by the company to/from companies, firms or other parties covered in the register maintained under section 189 of the Companies Act, 2013 the Company has granted unsecured loan, of Rs. 38.27 Cr. to a company, covered in register maintained under section 189 of the Companies Act, 2013, the terms & conditions of which has not yet been determined and therefore, the details as required by sub clause (iii) (b) & (c) of the Companies (Auditors Report) Order,2013 ( as amended) has not been stated.

iv) In our opinion and according to the information & explanations given to us, there is adequate internal control system commensurate with the size of the company and the nature of its business for the purchase of Inventory, Fixed Assets and also for the sale of goods. During the course of our Audit no major weakness has been noticed in the internal control system in respect of these areas.

v) According to the information and explanation given to us, the Company has not accepted any deposit from the public; therefore the provisions of clause (v) of the order are not applicable to the company.

vi) Cost records as specified by the Central Government under sub-section (1) of section 148 of the Companies Act is not applicable on the company .

vii) In respect of Statutory Dues:

a) According to the records of the Company, undisputed statutory dues including Provident Fund, Employees' State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, duty of Customs, Duty of Excise, Value Added Tax, Cess and other material statutory dues have been generally regularly deposited with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at March 31, 2015 for a period of more than six months from the date of becoming payable

b) Disputed Statutory dues that have not been deposited with appropriate authorities are as under:

Name of the Nature of Amount Period To Forum where Statue Dues (Rs. In Lacs) Which it Dispute is relates Pending

Income Tax Income Tax 15,48,060/- FY 2010-11 CIT(A), Act,1961' including Kolkata applicable Interest

c) During the year, No amount was required to be transferred to Investor Education and Protection Fund by the company.

viii) The company has accumulated losses at the end of the financial year amounting to Rs. 3143.78 Lakhs, and it has incurred cash losses in the financial year ended on that date amounting to Rs. 93.59 Lakhs and Rs. 229.85 Lakhs in the immediately preceding financial year.

ix) On the basis of information and explanations given us the, the company has liability to repay the loan to a Bank on demand, and the company has not defaulted the repayment of loans to the bank.

x) According to the information and explanation given to us, the company has not granted loans or advances on the basis of security by way of pledge of shares, debentures and other securities, accordingly Clause (x) of the Order is not applicable.

xi) Based on information and explanation given to us by the management, no term loan was raised during the year.

xii) Based upon the audit procedures performed and information and explanation given by the management, we report that no material fraud on or by the company has been noticed or reported during the year ended 31st March, 2015.

For P.K.LILHA & CO. Chartered Accountants Firm Reg. No.: 307008E

sd/- (CA. P.K. LILHA) Partner M. No. 011092 Place : Kolkata Date : 13.06.2015


Mar 31, 2014

We have audited the accompanying financial statements of REI Six Ten Retail Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2014, 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

The Company''s Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 (the "Act"), read with the General Circular 15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

AUDITOR''S RESPONSIBILITY

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

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

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

OPINION

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

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

(b) in the case of the Statement of Profit and Loss, 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.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. 1. As required by ''the Companies (Auditor''s Report) Order, 2003'', as amended 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.

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

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

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

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

d. In our opinion, the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement comply with the Accounting Standards referred to in sub-section (3C) of section 211of the companies Act 1956 read with the General Circular 15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act 2013; and.

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

Referred to in paragraph 7. Of the Independent Auditors'' Report of even date to members of REI Six Ten Retail Ltd. on the financial statements as of and for the year ended 31 March 2014

i. In respect of its Fixed Assets:

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

b. The Fixed Assets have been physically verified by the management according to a phased programme designed to cover all the items which, in our opinion, is reasonable having regards to the size of the company and nature of its assets. The discrepancies if any, noticed on such verification were not material and have been properly dealt with in the books of accounts.

c. In our opinion, and according to the information and explanation given to us, a substantial part of fixed assets, being impaired Furniture & Fittings has been written off by the company, during the year being unserviceable, due to discontinuance of franchise retail trading business, but this has not affected the Going Concern Assumption, as the Company is still in the business of whole-sale Cash & Carry model of Trading Business.

ii. In respect of its Inventories:

(a) the Inventories have been physically verified by the management during the year.. In our opinion the frequency of verification is reasonable. The inventory as on the balance sheet date has been found to be NIL.

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

(c) On the basis of our examination of the inventory records, in our opinion, the Company is maintaining proper records of inventory. The discrepancies noticed on physical verification of Inventory as compared to book records were not material.

iii. The company has not granted/taken any loans, secured or unsecured to/from companies, firms or other parties covered in the register maintained under Section 301 of the companies Act, 1956, Therefore, the provisions of clause 4(iii){(b),(c) and (d)/(f) and (g)} of the said order are not applicable to the Company.

iv. In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business for the purchase of inventories, fixed assets and for the sale of goods and services. Further, on the basis of our examinations of the books and records of the company, and according to the information and explanations given to us, we have neither come across, nor have been informed of, any continuing failure to correct major weakness in the aforesaid internal control system.

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

(b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements and exceeding the value of Rupees Five Lacs in respect of any party during the year have been made at prices which are reasonable having regard to the prevailing market prices at the relevant times.

vi. In our opinion, and according to the information and explanations given to us,The company has not accepted any deposits from the public within the meaning of Section 58A, 58AA or any other relevant provisions of the Company Act,1956 and the Companies (Acceptance of Deposits) Rules 1975 framed there under.

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

viii. The maintenance of cost records have not been prescribed under clause (d) of sub-section (1) of section 209 of the Act and the rules made by the Central Government of India.

ix. (a) According to the information and explanations given to us and the records of the Company examined by us, the company is regular in depositing the undisputed statutory dues, including provident fund, Employee''s State Insurance, investor education and protection fund, income tax, wealth tax, Service Tax, Sales Tax and other material statutory dues, as applicable, with the appropriate authorities during the year.

(b) According to information and explanation given to us and the records of the company examined by us, there are no dues of provident fund, investor education and protection fund, employee''s state insurance, sales tax wealth tax, service tax which have not been deposited on account of any dispute. The particulars of dues of income tax as at 31 March 2014 which have not been deposited on account of a dispute, is as follws:

Name Nature Amount Period to Forum where of the of Dues (Rs. in Lacs) which it Dispute is Stature related Pending

Income Income 15,48,060 F.Y.2010-11 Commissioner Tax Tax of Income Act,1961 including Tax (Appeals) applicable Tax (Appeals), interest Kolkata

x. The Company has accumulated losses at the end of the financial year amounting to Rs. 943.74 Lakhs, set-off by transfer of Rs. 1,000 lakhs from General Reserve and it has incurred cash losses in the financial year ended on that date amounting to Rs. 229.85 Lakhs but not in the immediately Preceding financial year.

xi. Based on our audit procedures and on the basis of information and explanations given to us, we are of the opinion that the company has not defaulted in the repayment of dues to any financial institution, or Bank or debenture holders.

xii. The company has not granted any loans or advances on the basis of security by way of pledge of shares, debentures and other securities,. Therefore, the provision of clause 4 (xii) of the Order is not applicable.

xiii. As the provision of any special statute applicable to Chit Fund/Nidhi/Mutual Benefit Fund/Society are not applicable to the company the provisions of clause 4 (xiii) of the Order are not applicable to the company.

xiv. In our opinion, the company is not dealing or trading in shares, securities, debentures and other investments., Accordingly, the provisions of clause 4 (xiv) of the order are not applicable.

xv. In our opinion, and According to the information and explanations given to us the company has not given any guarantee for loans taken by others from banks or financial institution during the year. Accordingly, the provisions of clause 4(XV) of the Order are not applicable to the company.

xvi. The Company has not raised any term loan during the year. However, a term (Vehicle) loan was raised in the earlier years. The Term Loan outstanding at the beginning of the year have been applied for the purpose for which they were raised..

xvii. The Company has not raised any funds on short-term basis. Accordingly, the provisions clause 4(xvii) of the Order are not applicable to the Company.

xviii. The Company has not made any preferential allotment of shares during the year to parties or companies covered in the Register maintained under Section 301 of the Companies Act, 1956. Accordingly, the provisions of clause 4(xviii) of the Order are not applicable to the Company.

xix. The Company has not issued any debentures during the year and does not have any debentures outstanding as at the beginning of the year and at the year end, Accordingly, the provisions of clause 4(xix) of the Order are not applicable to the Company.

xx. The Company has not raised any money by way public issue during the year. Accordingly, the provisions of clause 4(xx) of the Order not applicable to the company.

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 explanation given to us, we have neither come across any instance of material fraud on by the Company, noticed or reported during the year, nor have we been informed of any such case by the Management.

For P.K.LILHA & CO. Chartered Accountants Firm Reg. No.: 307008E

(CA. P.K. LILHA) Partner M. No. 011092

Place : Kolkata Date : 29.05.2014


Mar 31, 2013

Report on the Financial Statements

We have audited the accompanying financial statements of REI SIX TEN RETAIL LIMITED ("the Company"), which comprise the Balance Sheet as at March 31,2013, and the Statement of Profit and Loss and Cash Flow Statement for the year ended, and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

The Company''s Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards 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.

Auditor''s Responsibility

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

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

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

Opinion

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

a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2013;

b) in the case of the Statement of Profit and Loss , 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.

Report on Other Legal and Regulatory Requirements

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

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

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

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

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

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

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

annEXuRE TO THE auDITORS'' REPORT

(Referred to in paragraph 1 under the heading "Report on Other Legal and Regulatory Requirements" of our report of even date for the year ended 31st March 2013)

i) In respect of its Fixed Assets:

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

(b) The fixed assets are being physically verified in the phased manner by the management in accordance with a program of verification covering all the fixed assets, which in our opinion provides for physical verification of all the fixed assets. The discrepancies noticed on such verification were not material and have been properly dealt with the books of accounts.

(c) The Company has not disposed off substantial part of its fixed assets during the year ii) In respect of its Inventories:

(a) As explained to us the Inventories have been physically verified by the management at reasonable intervals. In our opinion the frequency of verification is reasonable.

(b) The procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) The Company has maintained proper records of its inventories and no material discrepancies were noticed on physical verification of Inventories as compared to the book records.

iii) The Company has not granted/taken any loans, secured or unsecured to/from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956, accordingly the provisions of other sub – clauses are not applicable.

iv) In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business for the purchase of inventory, fixed assets and for the sale of goods. During the course of our audit no major weakness has been noticed in the internal control system in respect of these areas.

v) (a) According to the information and explanations given to us, we are of the opinion that the particulars of contracts or arrangements referred to in section 301 of the Companies Act, 1956 that need to be entered into the register have been so entered.

(b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of such contracts or arrangements exceeding the value of Rupees Five Lacs have been entered during the year at prices which are reasonable having regard to the prevailing market prices at the relevant time.

vi) The company has not accepted any deposits from the public within the meaning of Section 58A, 58AA or any other provisions of the Company Act 1956 and the Companies (Acceptance of Deposits) Rules 1975 framed there under.

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

viii) The provisions of Clause (viii) of Paragraph 4 of the order regarding maintenance of Cost Records prescribed U/s 209(1)(d) of the Act are not applicable to the company.

ix) (a) According to the records of the Company, undisputed statutory dues including Provident Fund, Employee''s State Insurance, Investor Education and Protection Fund, Income Tax, Wealth Tax, Service Tax, Sales tax, and any other material statutory dues have been generally regularly deposited with the appropriate authorities during the year. As explained to us undisputed amounts payable in respect of income tax for the AY 2009-10 amounting to Rs. 285,092/- is lying outstanding at the year end, for a period of more than six months from the date it became payable.

(b) According to the information and explanations given to us, there are no dues of Income tax, Sales tax, Wealth tax, Service tax, Custom duty and Excise duty which have not been deposited with the appropriate authorities on account of any disputes other than those mentioned in the appendix to this report.

x) The Company has no accumulated losses as at the end of the year and it has not incurred cash losses during the current financial year.

xi) Based on our audit procedures and on the basis of information and explanations given to us, we are of the opinion that the company has not defaulted in the repayment of dues to any financial institution, or Bank, or debenture holders.

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

xiii) The company is not a Chit Fund/Nidhi/Mutual Benefit Fund/Society, therefore the provisions of Clause (xiii) of Paragraph 4 of the order are not applicable to the company.

xiv) As the Company is not dealing or trading in shares, securities, debentures and other investments, paragraph 4 (xiv) of the Order is not applicable.

xv) According to the information and explanations given to us there is no guarantee given by the company for loans taken by others from banks or financial institutions.

xvi) Team loan outstanding at beginning of the year and those raised during the year has been applied for the purposes for which they were raised.

xvii) According to the information and explanation given to us and on an overall examination of the Balance Sheet of the Company, we report that, during the year, short term funds have not been used for Long term investments.

xviii) The Company has not made any preferential allotment of shares during the year.

xix) The Company has not issued any secured debentures during the year; hence the question of charge does not arise.

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

xxi) According to the information and explanations given to us by the management no material fraud on or by the Company has been noticed or reported during the course of our audit.



For P. K.LILHA & Co.

Chartered Accountants

Firm No. 307008E



(CA P. K. LILHA)

Partner

M. No. 011092

Place : Kolkata

Date: May 30, 2013


Mar 31, 2012

1. We have audited the attached Balance Sheet of REI SIX TEN RETAIL LIMITED as at 31st March 2012 and Statement of Profit & Loss and also the Cash Flow Statement for the year ended on that date both 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.

2. We conducted our audit in accordance with the 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 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 Companies (Auditor,s Report) Order, 2003, as amended by the Companies (Auditor,s Report) Amendment Order 2004, issued by the Government of India in terms of Section 227(4A) of the Companies Act, 1956, and on the basis of such check as we considered appropriate and according to the information and explanation given to us we enclose in the Annexure, a statement on the matters specified in paragraphs 4 and 5 of the said Order, to the extent applicable to the Company.

4. Further to our comments in the Annexure referred to in paragraph (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 purpose of our audit;

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

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

d) In our opinion, the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956;

e) On the basis of written representations received from the directors, 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 said accounts read together with the Significant Accounting Policies and Notes 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;

1) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2012;

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

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

ANNEXURE TO THE AUDITORS, REPORT

(Referred to in paragraph 3 of our report of even date)

i) In respect of its Fixed Assets:

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

(b) The fixed assets are being physically verified in the phased manner by the management in accordance with a program of verification covering all the fixed assets, which in our opinion provides for physical verification of all the fixed assets. The discrepancies noticed on such verification were not material and have been properly dealt with the books of accounts.

(c) The Company has not disposed off substantial part of its fixed assets during the year and therefore do not affect the going concern status of the Company.

ii) In respect of its Inventories:

(a) As explained to us the Inventories have been physically verified by the management at reasonable intervals. In our opinion the frequency of verification is reasonable.

(b) The procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) The Company has maintained proper records of its inventories and no material discrepancies were noticed on physical verification of Inventories as compared to the book records.

iii) The Company has not granted/taken any loans, secured or unsecured to/from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956, accordingly the provisions of other sub - clauses are not applicable.

iv) In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business for the purchase of inventory, fixed assets and for the sale of goods. During the course of our audit no major weakness has been noticed in the internal control system in respect of these areas.

v) (a) According to the information and explanations given to us, we are of the opinion that the particulars of contracts or arrangements referred to in section 301 of the Companies Act, 1956 that need to be entered into the register have been so entered.

(b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of such contracts or arrangements exceeding the value of Rupees Five Lacs have been entered during the year at prices which are reasonable having regard to the prevailing market prices at the relevant time.

vi) The company has not accepted any deposits from the public within the meaning of Section 58A, 58AA or any other provisions of the Company Act 1956 and the Companies (Acceptance of Deposits) Rules 1975 framed there under.

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

viii) The provisions of Clause (viii) of Paragraph 4 of the order regarding maintenance of Cost Records prescribed U/s 209(1)(d) of the Act are not applicable to the company.

ix) (a) According to the records of the Company, undisputed statutory dues including Provident fund, Employee,s State Insurance, Investor Education and Protection Fund, Income Tax, Wealth Tax, Service Tax, Sales tax, and any other material statutory dues have been generally regularly deposited with the appropriate authorities during the year. As explained to us no undisputed amounts payable in respect of aforesaid duties were outstanding at the year end, for a period of more than six months from the date they became payable.

(b) The disputed Statutory dues aggregating to Rs. 61,82,291/- that has not been deposited on account of disputed matters in respect of Income Tax for Assessment year 2009-2010 which is pending before C.I.T.(A)-II, Kolkata.

x) The Company has no accumulated losses as at the end of the year and it has not incurred cash losses during the current financial year.

xi) Based on our audit procedures and on the basis of information and explanations given to us, we are of the opinion that the company has not defaulted in the repayment of dues to any financial institution, or Bank, or debenture holders.

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

xiii) The company is not a Chit Fund/Nidhi/Mutual Benefit Fund/Society, therefore the provisions of Clause (xiii) of Paragraph 4 of the order are not applicable to the company.

xiv) As the Company is not dealing or trading in shares, securities, debentures and other investments, paragraph 4 (xiv) of the Order is not applicable.

xv) According to the information and explanations given to us there is no guarantee given by the company for loans taken by others from banks or financial institutions.

xvi) The company has raised new Term (Vehicle) Loan during the year. The term loan outstanding at the beginning of the year and those raised during the year have been applied for the purposes for which they were raised.

xvii) According to the information and explanation given to us and on an overall examination of the Balance Sheet of the Company, we report that, during the year, short term funds have not been used for Long term investments.

xviii) The Company has not made any preferential allotment of shares during the year.

xix) The company has not issued any secured debentures during the year; hence the question of charge does not arise.

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

xxi) Based upon the audit procedures performed and information and explanations given by the management, we report that no material fraud on or by the Company has been noticed or reported during the year.

For P. K. LILHA & Co. Chartered Accountants Firm No. 307008E

(CA P.K. LILHA) Partner M. No. 11092

Place : Camp at Delhi Date : 30th May, 2012


Mar 31, 2011

1. We have audited the attached Balance Sheet of REI SIX TEN RETAIL LIMITED as at 31st March 2011 and Profit & Loss Account and also the Cash Flow Statement for the year ended on that date both 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.

2. We conducted our audit in accordance with the 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 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 ouropinion.

3. As required by Companies (Auditor's Report) Order, 2003, as amended by the Companies (Auditor's Report) Amendment Order 2004, issued by the Government of India in terms of Section 227(4A) of the Companies Act, 1956, and on the basis of such check as we considered appropriate and according to the information and explanation given to us we enclose in the Annexure, a statement on the matters specified in paragraphs 4 and 5 of the said Order, to the extent applicable to the Company.

4. Further to our comments in the Annexure referred to in paragraph (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 purpose of ouraudit;

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

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

d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956;

e) On the basis of written representations received from the directors, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March, 2011 from being appointed as a director in terms of clause (g) of sub-section (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 read together with the Significant Accounting Policies and Notes 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;

1) in the case of the Balance Sheet, of the state of affairs of the Company as at 31 st March, 2011;

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

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

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

i) In respect of its Fixed Assets:

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

(b) The fixed assets are being physically verified in the phased manner by the management in accordance with a program of verification covering all the fixed assets, which in our opinion provides for physical verification of all the fixed assets. The discrepancies noticed on such verification were not material and have been properly dealt within the books of accounts.

(c) The Company has not disposed off any substantial part of its fixed assets during the year and therefore do not effect the going concern status of the Company.

ii) In respect of its Inventories:

(a) As explained to us the Inventories have been physically verified by the management at reasonable intervals. In our opinion the frequency of verification is reasonable.

(b) The procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) The Company has maintained proper records of its inventories and no material discrepancies were noticed on physical verification of Inventories as compared to the book records.

iii) The Company has not granted/taken any loans, secured or unsecured to/from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956, accordingly the provisions of other sub - clauses are not applicable.

iv) In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business forthe purchase of inventory, fixed assets and for the sale of goods. During the course of our audit no major weakness has been noticed in the internal control system in respect of these areas.

v) (a) According to the information and explanations given to us, we are of the opinion that the particulars of contracts or arrangements referred to in section 301 of the Companies Act, 1956 that need to be entered into the register have been so entered.

(b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of such contracts or arrangements exceeding the value of Rupees Five Lacs have been entered during the year at prices which are reasonable having regard to the prevailing market prices at the relevant time.

vi) The company has not accepted any deposits from the public within the meaning of Section 58A, 58AA or any other provisions of the Companies Act 1956 and the Companies (Acceptance of Deposits) Rules 1975 framed there under.

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

viii) The provisions of Clause (viii) of Paragraph 4 of the order regarding maintenance of Cost Records prescribed U/s 209(1 )(d) of the Act are not applicable to the company.

ix) (a) According to the records of the Company, undisputed statutory dues including Provident fund, Employee's State Insurance, Income Tax, Wealth Tax, Service Tax, Sales tax, and any other material statutory dues have been generally regularly deposited with the appropriate authorities during the year. As explained to us the Company did not have any dues on account of Investors Education and Protection Fund.

(b) No undisputed amounts payable were outstanding at the year end, for a period of more than six months from the date they became payable.

x) The Company has no accumulated losses as at the end of the year and it has not incurred cash losses during the current financial year.

xi) Based on our audit procedures and on the basis of information and explanations given to us, we are of the opinion that the company has not defaulted in the repayment of dues to any financial institution, or Bank, or debenture holders.

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

xiii) The company is not a Chit Fund/Nidhi/Mutual Benefit Fund/Society, therefore the provisions of Clause (xiii) of Paragraph 4 of the order are not applicable to the company.

xiv) As the Company is not dealing or trading in shares, securities, debentures and other investments, paragraph 4 (xiv) of the Order is not applicable.

xv) According to the information and explanations given to us there is no guarantee given by the company for loans taken by others from banks or financial institutions.

xvi) The Company did not obtain any term loan during the year that were outstanding at the end of the year.

xvii)According to the information and explanation given to us and on an overall examination of the Balance Sheet of the Company, we report that, during the year, short term funds have not been used to finance Long term investments.

xviii)The Company has not made any preferential allotment of shares during the year.

xix) The company has not issued any secured debentures during the year; hence the question of charge does not arise.

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

xxi) Based upon the audit procedures performed and information and explanations given by the management, we report that no material fraud on or by the Company has been noticed or reported during the year.

ForP.K.LILHA&Co. Chartered Accountants (Regn. No. 307008E)

(CAP.K. LILHA) Place: Kolkata Partner

Date: May 30, 2011 M. No. 11092


Mar 31, 2010

1. We have audited the attached Balance Sheet of REI SIX TEN RETAIL LIMITED as at 31st March 2010 and Profit & Loss Account and also the Cash Flow Statement for the year ended on that date both annexed thereto. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with the 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 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 Companies (Auditors Report) Order, 2003, as amended by the Companies (Auditors Report) Amendment Order 2004, issued by the Government of India in terms of Section 227(4A) of the Companies Act, 1956, and on the basis of such check as we considered appropriate and according to the information and explanation given to us we enclose in the Annexure, a statement on the matters specified in paragraphs 4 and 5 of the said Order, to the extent applicable to the Company.

4. Further to our comments in the Annexure referred to in paragraph (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 purpose of our audit;

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

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

d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956;

e) On the basis of written representations received from the directors, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st 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 read together with the Significant Accounting Policies and Notes 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;

1) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2010;

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

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

ANNEXURE TO THE AUDITORS REPORT

(Referred to in paragraph 3 of our report of even date)

i) In respect of its Fixed Assets:

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

(b) The fixed assets are being physically verified in the phased manner by the management in accordance with a program of verification covering all the fixed assets, which in our opinion provides for physical verification of all the fixed assets. The discrepancies noticed on such verification were not material and have been properly dealt with the books of accounts.

(c) The Company has not disposed off any substantial part of its fixed assets during the year and therefore do not effect the going concern status of the Company.

ii) In respect of its Inventories:

(a) As explained to us the Inventories have been physically verified by the management at reasonable intervals. In our opinion the frequency of verification is reasonable.

(b) The procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) The Company has maintained proper records of its inventories and no material discrepancies were noticed on physical verification of Inventories as compared to the book records.

iii) The Company has not granted/taken any loans, secured or unsecured to/from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956, accordingly the provisions of other sub - clauses are not applicable.

iv) In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business for the purchase of inventory, fixed assets and for the sale of goods. During the course of our audit no major weakness has been noticed in the internal control system in respect of these areas.

v) (a) According to the information and explanations given to us, we are of the opinion that the particulars of contracts or arrangements referred to in section 301 of the Companies Act, 1956 that need to be entered into the register have been so entered.

(b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of such contracts or arrangements exceeding the value of Rupees Five Lacs have been entered during the year at prices which are reasonable having regard to the prevailing market prices at the relevant time.

vi) The company has not accepted any deposits from the public within the meaning of Section 58A, 58AA or any other provisions of the Company Act 1956 and the Companies (Acceptance of Deposits) Rules 1975 framed there under.

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

viii) The provisions of Clause (viii) of Paragraph 4 of the order regarding maintenance of Cost Records prescribed U/s 209(1)(d) of the Act are not applicable to the company.

ix) (a) According to the records of the Company, undisputed statutory dues including Provident fund, Employees State Insurance, Income Tax, Wealth Tax, Service Tax, Sales tax, and any other material statutory dues have been generally regularly deposited with the appropriate authorities during the year.

(b) No undisputed amounts payable were outstanding at the year end, for a period of more than six months from the date they became payable.

x) The Company has no accumulated losses as at the end of the year and it has not incurred cash losses during the current financial year.

xi) Based on our audit procedures and on the basis of information and explanations given to us, we are of the opinion that the company has not defaulted in the repayment of dues to any financial institution, or Bank, or debenture holders.

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

xiii) The company is not a Chit Fund/Nidhi/Mutual Benefit Fund/Society, therefore the provisions of Clause (xiii) of Paragraph 4 of the order are not applicable to the company.

xiv) As the Company is not dealing or trading in shares, securities, debentures and other investments, paragraph 4 (xiv) of the Order is not applicable.

xv) According to the information and explanations given to us there is no guarantee given by the company for loans taken by others from banks or financial institutions.

xvi) According to the information and explanation given

to us, the term loans have been applied for the purpose for which they were raised.

xvii) According to the information and explanation given to us and on an overall examination of the Balance Sheet of the Company, we report that, during the year, short term funds have not been used to finance Long term investments.

xviii) The Company has not made any preferential allotment of shares during the year.

xix) The company has not issued any secured debentures during the year; hence the question of charge does not arise.

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

xxi) Based upon the audit procedures performed and information and explanations given by the management, we report that no material fraud on or by the Company has been noticed or reported during the year.

For P.K.LILHA & CO. Chartered Accountants (CA P.K. LILHA) Place: Kolkata Partner Date: May 29, 2010 Membership No. 11092

 
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