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Auditor Report of Remi Sales & Engineering Ltd.

Mar 31, 2014

We have audited the accompanying consolidated financial statements of Remi Sales and Engineering Limited (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. These consolidated financial statements has been prepared after considering financial statement of Head office Mumbai and Branches situated at Ahmedabad, Bangaluru, Kolkata, New Delhi, Chennai, Hyderabad, Kochi, Nagpur, Indore, Kanpur and Margao (Goa). The report on the Accounts of the Branch offices stated above have been audited by branch auditors which was forwarded to us and have been dealt with in preparing our report in the manner considered necessary by us.

Management''s Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position and financial performance of the company in accordance with the accounting principles generally accepted in India, including accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ("the Act") read with General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs in respect 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

Auditors'' Responsibility

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

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, 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 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.

Matter of emphasis:

Without qualifying our report we draw attention to:

The Company has unsettled exposure for various commodities trade through NSEL/broker. NSEL has not been able to discharge payment obligation from August 2013 onwards. The Company has decided to write off Rs. 2,23,30,912/-being 25% of original outstanding and shown as bad dets written off under other expenses. The detailed note on subject is given at note no. 1.9 of Notes to Financial Statements for the year ended 31st March, 2014.

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:

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 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 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 AUDITORS'' REPORT

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

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

(b) According to the information and explanations give to us, all the assets have not been physically verified by the management during the year but there is regular programme of verification which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. To the best of our knowledge, No material discrepancies were noticed on such verification.

(c) The Company has not disposed off substantial part of fixed assets during the year.

ii) (a) The inventory has been physically verified during the year by the management wherever possible. In our opinion, the frequency of verification is reasonable.

(b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories followed by the management were reasonable and adequate wherever applicable/possible in relation to the size of the company and the nature of its business.

(c) In our opinion and according to the information and explanations given to us, the company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material having regard to the size of the operations of the Company except transactions on NSEL plat forum.

iii) (a) In our opinion and according to information and explanations given to us, the Company has not granted loans, secured or unsecured to Companies, Firm or other parties listed in the register maintained under section 301 of the Act and hence sub clause (b), (c) and (d) are not applicable, (e) In our opinion and according to the information and explanations given to us, the Company has not taken any secured or unsecured loans from Companies, firm or other parties listed in the register maintained under section 301 of the Companies Act and hence sub clause (f) and (g)are also not applicable.

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

(v) (a) & (b) According to the information and explanations given to us, we are of the opinion that there are no transactions that need to be entered into the register maintained under section 301 of the Companies Act, 1956.

(vi) In our opinion and according to the information and explanations given to us, the company has not accepted any deposits from the public and hence the directives issued by the Reserve Bank of India and provisions of sections 58A and 58AA or any other relevant provisions of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 are not applicable.

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

(viii) As the Company is not a manufacturing Company, the Rules made by the Central Government for the maintenance of cost records under Section 209(1)(d) of the companies Act, 1956 are not applicable to it.

(ix) (a) According to the information and explanations given to us, the Company is generally regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Investor Education Protection Fund, Employees'' State Insurance, Income tax, Sales tax, Service tax, Wealth tax, Custom Duty, Excise Duty, Cess and other material statutory dues applicable to it with appropriate authorities and there were no undisputed arrears as at 31st March, 2014 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us, the particulars of dues of Income tax, Wealth tax, Service tax, Sales tax, Custom Duty, Excise Duty and Cess as at 31st March, 2014, which have not been deposited in account of a dispute, are as follows:

Sr. Name of the Statute Assessment Nature of dues No. Year

1. The KVAT Act, 2003 2008-09 VAT and Interest

2. The Delhi Value Added 2008-09 VAT, Interest Tax Act, 2004. and Penalty

3. The Kerala Value Added Tax, 2005 2010-11 VAT

Sr. Name of the Statute Amount From where dispute No. in Rs. is pending

1. The KVAT Act, 2003 69197 Appellate Tribunal

2. The Delhi Value Added 5947031 Additional Commissioner, Tax Act, 2004. Objection Hearing Authority-II

3. The Kerala Value Added Tax, 2005 57505 The Dy. Commissioner (Appeals)

(x) The Company does not have accumulated Losses and has not incurred cash losses during the financial year covered by our audit and in the immediately preceding financial year.

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

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

(xiii) In our opinion, the Company is not a chit fund or a nidhi/mutual benefit fund/society and therefore, the provisions of clauses 4(xiii) of the Order are not applicable to the Company.

(xiv) In our opinion, the Company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provision of clause 4 (xiv) of the Order are not applicable to the Company.

(xv) In our opinion the Company has not given any guarantees for loans taken by others from banks or financial institutions.

(xvi) According to information and explanations given to us, the Company has not taken any Term Loan during the year.

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

(xvii) According to the information and explanations given to us, the company has not made any preferential allotment of shares to parties and Companies covered in the register maintained under section 301 of the Act during the year.

(xix) According to the information and explanations given to us, the Company has neither issued any debentures during the year nor issued earlier are outstanding.

(xx) According to the information and explanations given to us, the Company has not raised any money by public issue during the year.

(xxi) To the best of our knowledge and belief and according to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the course of our audit except Commodity related transactions on NSEL plat forum.

For SUNDARLAL, DESAI AND KANODIA, CHARTERED ACCOUNTANTS, (Firm Registration Number.110560W)

Sd/- (M.B. DESAI) PLACE : MUMBAI PARTNER DATED : 30th May, 2014. Membership Number 33978


Mar 31, 2013

Report on the financial statements

We have audited the accompanying financial statements of Remi Sales and Engineering Limited (the company), which comprise the balance sheet as at 31st March, 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 and we have received the audited Balance Sheet and the statement of Profit and Loss as of 31st March 2013, from all branches situated at Ahmedabad, Bangaluru, Kolkata, New Delhi, Chennai, Hyderabad, Kochi, Nagpur, Indore, Kanpur and Margao (Goa) and prepared the consolidated Balance Sheet and the statement of Profit and Loss and Cash Flow statement at Mumbai after considering the accounts of Head office, Mumbai.

Management''s responsibility for the financial statements

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the company in accordance with the accounting principles generally accepted in India, including 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 disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, 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 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.

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

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:

i. In the case of the balance sheet, of the state of affairs of the company as at 31st March, 2013;

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 the cash flow statement, of the cash flows for the year ended on that date.

ANNEXURE TO THE AUDITORS REPORT

(REFERRED TO IN OUR REPORT OF EVEN DATE TO THE MEMBERS OF REMI SALES AND ENGINEERING LIMITED AS AT 31st March, 2013)

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

(b) According to the information and explanations give to us, all the assets have not been physically verified by the management during the year but there is regular programme of verification which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. To the best of our knowledge, No material discrepancies were noticed on such verification.

(c) The company has not disposed off substantial part of fixed assets during the year.

ii) (a)The inventory has been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.

(b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories followed by the management were reasonable and adequate in relation to the size of the company and the nature of its business.

(c) In our opinion and according to the information and explanations given to us, the company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material having regard to the size of the operations of the Company.

iii) a) In our opinion and according to information and explanations given to us, the Company has not granted loans, secured or unsecured to Companies, Firm or other parties listed in the register maintained under section 301 of the Act and hence sub clause (b), (c) and (d) are not applicable. (e) In our opinion and according to the information and explanations given to us, the Company has not taken any secured or unsecured loans from Companies, firm or other parties listed in the register maintained under section 301 of the Companies Act and hence sub clause (f) and (g)are also not applicable.

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

(v) (a) According to the information and explanations given to us, we are of the opinion that there are no transactions that need to be entered into the register maintained under section 301 of the Companies Act, 1956.

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

vi) In our opinion and according to the information and explanations given to us, the company has not accepted any deposits from the public and hence the directives issued by the Reserve Bank of India and provisions of sections 58A and 58AA or any other relevant provisions of the Companies Act,1956 and the Companies (Acceptance of Deposits) Rules, 1975 are not applicable.

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

viii) As the Company is not a manufacturing Company, the Rules made by the Central Government for the maintenance of cost records under Section 209(1)(d) of the companies Act, 1956 are not applicable to it.

(ix) (a) According to the information and explanations given to us. The company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident fund, employees state insurance, income tax, sales tax, service tax, wealth tax, custom duty, excise duty, cess and other material statutory dues applicable to it and there were no dues in arrears as at 31st March,2013 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us, no disputed amounts payable in respect of Income tax, Wealth tax, Sales tax, Service tax, Customs duty, Excise duty and Cess were in arrears, as at 31st March, 2013 except demand of Rs.59,47,031/- in respect of sales tax interest & penalty thereon pertaining to F.Y. 2008-09, disputed before Commissioner of Sales Tax (Appeals).

(x) The Company does not have accumulated Losses and has not incurred cash losses during the financial year covered by our audit and in the immediately preceding financial year.

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

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

(xiii) In our opinion, the Company is not a chit fund or a nidhi / mutual benefit fund / society.

(xiv) In our opinion the Company is not dealing in or trading in shares, securities, debentures and other investments.

(xv) In our opinion the Company has not given any guarantees for loans taken by others from banks or financial institutions.

(xvi) According to information and explanations given to us, the Company has not taken any

Term Loan during the year.

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

(xvii) According to the information and explanations given to us, the company has not made any preferential allotment of shares to parties and Companies covered in the register maintained under section 301 of the Act during the year.

(xix) According to the information and explanations given to us, the Company has neither issued any debentures during the year nor issued earlier are outstanding.

(xx) According to the information and explanations given to us, the Company has not raised any money by public issue during the year.

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

For SUNDARLAL, DESAI AND KANODIA,

CHARTERED ACCOUNTANTS,

Registration Number.110560W

Sd/-

(M.B.DESAI)

PARTNER

Membership Number 33978

PLACE : MUMBAI

DATED : 30TH MAY, 2013.


Mar 31, 2011

1) We have audited the attached Balance Sheet of Remi Sales And Engineering Ltd. as at 31st March, 2011, the Profit and Loss Account for the year ended on that date annexed thereto and the Cash Flow Statement for the period ended on that date and we have received the audited Balance Sheets and the Profit and Loss accounts as of 31st March 2011, from all branches situated at Ahmedabad, Bangalore, Kolkata, New Delhi, Chennai, Hyderabad, Kochi, Nagpur, Indore, Kanpur and Margaon and prepared the consolidated Balance Sheet and Profit and Loss account and Cash Flow Statement at Mumbai after considering the accounts of Head Office, Mumbai. 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 (Auditor's Report) Order,2003 issued by the Central Government of India in terms of sub-section (4A)of section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

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

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

ii) 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;

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

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

v) On the basis of written representations received from the Directors as on 31st March, 2011,and taken on record by the Board of Directors, we report that none of the Director 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;

vi) In our opinion and to the best of our information and according to the explanations given to us, the said accounts, read together with 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 accounting principles generally accepted in India:

(a) in the case of Balance Sheet, of the State of affairs of the Company as at 31st March, 2011;

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

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

ANNEXURE TO THE AUDITORS REPORT

(REFERRED TO IN OUR REPORT OF EVEN DATE TO THE MEMBERS OF REMI SALES AND ENGINEERING LIMITED AS AT 31st March, 2011)

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

(b) According to the information and explanations give to us, all the assets have not been physically verified by the management during the year but there is regular programmed of verification which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. To the best of our knowledge, No material discrepancies were noticed on such verification.

(c) The company has not disposed off substantial part of fixed assets during the year.

ii)(a) The inventory has been physically verified during the year by the management. in our opinion, the frequency of verification is reasonable.

(b)In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories followed by the management were reasonable and adequate in relation to the size of the company and the nature of its business.

(c)In our opinion and according to the information and explanations given to us, the company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material having regard to the size of the operations of the Company.

iii)a)In our opinion and according to information and explanations given to

us, the Company has not granted loans, secured or unsecured to Companies, Firm or other parties listed in the register maintained under section 301 of the Act and hence sub clause (b), (c) and (d) are not applicable.

(e)In our opinion and according to the information and explanations given to us, the Company has not taken any secured or unsecured loans from Companies, firm or other parties listed in the register maintained under section 301 of the Companies Act and hence sub clause (f) and (g)are also not applicable.

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

(v) (a) According to the information and explanations given to us, we are of the opinion that the transactions that need to be entered into the register maintained under section 301 of the Companies Act, 1956 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 entered in the register maintained under section 301 of the Companies Act, 1956 during the year have been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

vi) In our opinion and according to the information and explanations given to us, the company has not accepted any deposits from the public and hence the directives issued by the Reserve Bank of India and provisions of sections 58A and 58AA or any other relevant provisions of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 are not applicable.

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

viii)As the Company is not a manufacturing Company, the Rules made by the Central Government for the maintenance of cost records under Section 209(1)(d) of the companies Act, 1956 are not applicable to it.

(ix) (a) According to the information and explanations given to us, The company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund, employees state insurance, income tax, sales tax, service tax, wealth tax, custom duty, excise duty, cess and other material statutory dues applicable to it and there were no dues in arrears as at 31st March, 2011 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us, no disputed amounts payable in respect of Income tax, Wealth tax, Sales tax, Service tax, Customs duty, Excise duty and Cess were in arrears, as at 31st March, 2011.

(x) The Company does not have accumulated Losses and has not incurred cash losses during the financial year covered by our audit and in the immediately preceding financial year.

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

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

(xiii) In our opinion, the Company is not a chit fund or a nidhi/mutual benefit fund / society.

(xiv) In our opinion the Company is not dealing in or trading in shares, securities, debentures and other investments.

(xv) In our opinion and according to the information and explanations given to us the terms and conditions of the guarantees given by the Company to banks for loans taken by others are not prejudicial to the Interest of the Company.

(xvi) According to information and explanations given to us, the Company has applied the term loans for the purposes for which the loans were obtained.

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

(xviii)According to the information and explanations given to us, the company has not made any preferential allotment of shares to parties and Companies covered in the register maintained under section 301 of the Act during the year.

(xix) According to the information and explanations given to us, the Company has neither issued any debentures during the year nor issued earlier are outstanding.

(xx) According to the information and explanations given to us, the Company has not raised any money by public issue during the year.

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

For SUNDARLAL, DESAI AND KANODIA, CHARTERED ACCOUNTANTS, Registration Number.110560W



Sd/- (M.B.DESAI) PARTNER Membership Number 33978

PLACE : MUMBAI

DATED : 5th September,2011.


Mar 31, 2010

1) We have audited the attached Balance Sheet of Remi Sales And Engineering Ltd. as at 31st March, 2010, the Profit and Loss Account for the year ended on that date annexed thereto and the Cash Flow Statement for the period ended on that date and we have received the audited Balance Sheets and the Profit and Loss accounts as of 31st March 2010, from all branches situated at Ahmedabad, Bangalore, Kolkata, New Delhi, Chennai, Hyderabad, Kochi, Nagpur, Indore, Kanpur and Margaon and prepared the consolidated Balance Sheet and Profit and Loss account and Cash Flow Statement at Mumbai after considering the accounts of Bead Office, Mumbai. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

2) We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material 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 of India in terms of sub-section (4A)of section 227 of the Companies Act, 1956, we enclose in the Anhexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

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

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

ii) 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;

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

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

v) On the basis of written representations received from the Directors as on 31st March, 2010,and taken on record by the Board of Directors, we report that none of the Director 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;

vi) In out opinion and to the best of our information and according to the explanations given to us, the said accounts, read togetl c with notes thereon, give the information required by the Compai as Act, 1956, in the manner so required and give a . true and fair view in conformity with accounting principles generally accepted in India:

(a) in the case of Balance Sheet, of the State of affairs of the Company as at 31st March, 2010;

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

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

ANNEXURE TO THE AUDITORS REPORT

(REFERRED TO IN OUR REPORT OF EVEN DATE TO THE MEMBERS OF REMI SALES AND ENGINEERING LIMITED AS AT 31st March, 2010)

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

(b) According to the information and explanations give to us, all the assets have not been physically verified by the management during the year but there is regular programme of verification which,in our opinion, is reasonable having regard to the size of the company and the nature of its assets. To the best of our knowledge, No material discrepancies were noticed on such verification.

(c) The company has not disposed off substantial part of fixed assets during the year.

ii) (a) The inventory has been physically verified during the year by the management.in our opinion,the frequency of verification is reasonable.

(b)In our opinion and according to the information and explanations given to us,the procedures of physical verification of inventories followed by the management were reasonable and adequate in relation to the size of the company and the nature of* its business.

(c) In our opinion and according to the information and explanations given to us, the company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material having regard to the size of the operations of the Company.

iii)a)In our opinion and according to information and explanations given to us, the Company has not granted loans, secured or unsecured to Companies, Firm or other parties listed in the register maintained under section 301 of the Act and hence sub clause (b), (c) and (d) are not applicable.

(e)In our opinion and according to the information and explanations given to us, the Company has not taken any secured or unsecured loans from Companies, firm or other parties listed in the register maintained under section 301 of the Companies Act and hence sub clause (f) and (g)are also not applicable.

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

(v) (a) According to the information and explanations given to us, we are of the opinion that the transactions that need to be entered into the register maintained under section 301 of the Companies Act, 1956 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 entered in the register maintained under section 301 of the Companies Act, 1956 during the year have been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

vi) In our opinion and according to the information and explanations given to us, the company has not accepted any deposits from the public and hence the directives issued by the Reserve Bank of India and provisions of sections 58A and 58AA or any other relevant provisions of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 are not applicable.

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

viii)A3 the Company is not a manufacturing Company, the Rules made by the Central Government for the maintenance of cost records under Section 209(1)(d) of the companies Act, 1956 are not applicable to it.

(ix) (a) According to the information and explanations given to us, The company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund, employees state insurance, income tax, sales tax, service tax, wealth tax, custom duty, excise duty, cess and other material statutory dues applicable to it and there were no dues in arrears as at 31st March, 2008 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us, no disputed amounts payable in respect of Income tax, Wealth tax, Sales tax, Service tax, Customs duty, Excise duty and Cess were in arrears, as at 31st March, 2010.

(x) The Company does not have accumulated Losses and has not incurred cash losses during the financial year covered by our audit and in the immediately preceding financial year.

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

(xii) According to the informations and explainations given to us, the Company has not granted any loansi and advances on the basis of security by way of pledge of shares, debentures and other securities.

(xiii) In our opinion, the Company is not a chit fund or a nidhi/mutual benefit fund / society.

(xiv) In our opinion the Company is not dealing in or trading in shares, securities, debentures and other investments.

(xv) In our opinion and according to the information and explanations

given to us. the terms and conditions of the guarantees given by the Company to banks for loans taken by others are not prejudicial to the Interest of the Company.

(xvi) According to information and explanations given to us, the Company has applied the term loans for the purposes for which the loans were obtained.

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

(xviii)According to the information and explanations given to us, the company has not made any preferential allotment of shares to parties and Companies covered in the register maintained under section 301 of the Act during the year.

(xix) According to the information and explanations given to us,the Company has neither issued any debentures during the year nor issued earlier are outstanding.

(xx) According to the information and explanations given to us, the Company has not raised any money by public issue during the year.

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

For SUNDARLAL, DESAIAND KANODIA,

CHARTERED ACCOUNTANTS,

Registration Number.110560W





(M.B.DESAI)

PARTNER

Membership Number 33978

PLACE : MUMBAI

DATED: 4th September, 2010.

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