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Auditor Report of Safari Industries (India) Ltd.

Mar 31, 2015

Report on the Standalone Financial Statements

1. We have audited the accompanying standalone financial statements of SAFARI INDUSTRIES (INDIA) LIMITED ("the Company"), which comprise the Balance Sheet as at March 31,2015, the Statement of Profit and Loss and 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 Standalone Financial Statements

2. The Company's Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation and presentation of these standalone 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 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

3. Our responsibility is to express an opinion on these standalone 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, but not for the purpose of expressing an opinion on whether the Company has in place adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company's Directors, as well as evaluating the overall presentation of the financial statements.

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

Opinion

4. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone 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, of the state of affairs of the Company as at March 31,2015, and its profit and cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

5. As required by the Companies (Auditor's Report) Order, 2015 ("the Order") issued by the Central Government in terms of sub-section (1 1) of section 143 of the Act, we give in the Annexure a statement on the matters specified in paragraph 3 and 4 of the Order, to the extent applicable.

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

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

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

(c) The balance sheet, the statement of profit and loss and the cash flow statement dealt with by this Report are in agreement with the books of account;

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

(e) On the basis of the written representations received from the directors as on March 31,2015 taken on record by the Board of Directors, none of the directors is disqualified as on March 31,2015 from being appointed as a director in terms of section 164 (2) of the Act;

(f) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 1 1 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations as on March 31,2015 on its financial position in its financial statements - Refer Note 30 to the financial statements;

ii. The Company did not have any long-term contracts as on March 31,2015 including derivative contracts;

iii. There were no amounts which were required to be transferred as on March 31, 2015 to the Investor Education and Protection Fund by the Company.

ANNEXURE TO INDEPENDENT AUDITORS' REPORT [Referred to in paragraph 5 of the Independent Auditor's Report of even date to the members of the Company on the standalone financial statements for the year ended March 31,2015.]

On the basis of such checks, as we considered appropriate and in terms of information and explanations given to us, we report that:

(i) (a) The Company is maintaining proper records to show full particulars, including quantitative details and situation of fixed assets.

(b) As explained to us, the Company has a programme of physical verification of fixed assets which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. In accordance with such programme, the management has physically verified fixed assets of significant value during the year and no material discrepancies were noticed on such verification. In case of fixed assets lying with third parties, confirmations have been obtained.

(ii) (a) Inventories have been physically verified by the management during the year, except material lying with third parties in respect of which confirmations are obtained. 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 are reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) The Company is maintaining proper records of inventory. The discrepancies noticed on verification between physical inventories and book records were not material in relation to the size of operations of the Company and the same have been properly dealt with in the books of account.

(iii) (a),(b) As per the information furnished to us, the Company has not granted any loans, secured or unsecured, to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act, 2013.

Accordingly, Clause (iii) (a) relating to regularity of receipt of principal amount and interest and Clause (iii) (b) relating to steps taken for recovery of overdue principal and interest of more than rupees one lakh, are not applicable.

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

(v),(vi) During the year the Company has not accepted any deposits from public. In respect of deposits accepted in earlier years (which have been fully repaid during the year) the provisions of section 73 to 76 of the Act and other relevant provisions of the Act and the Rules framed thereunder and the directives issued by the Reserve Bank of India, where applicable, have been complied with. As informed to us, No order has been passed by Company Law Board or Reserve Bank of India or any Court or any other Tribunal during the year.

The maintenance of cost records has not been specified by the Central Government under section 148(1) of the Act, read with Rule 3 of the Companies (Cost Records and Audit) Rules, 2014 notified by Ministry of Corporate Affairs, Government of India vide notification dated June 30th, 2014.

(vii)(a) According to the information and explanations given to us and the records examined by us, during the year the Company has generally been regular in depositing undisputed statutory dues with appropriate authorities, being Provident Fund, Employ- ees' State Insurance, Income tax, Sales tax, Wealth tax, Service tax, Customs Duty, Excise Duty, Value Added tax, cess and any other material statutory dues. There are no undisputed statutory dues outstanding as at March 31,2015 for a period of more than six months from the date they became payable.

(b) The disputed amounts that have not been deposited as on March 31,2015 in respect of Sales Tax and Value Added Tax are as under:

Name of the Nature of Payable Period to Statute the dues Rs.in Lacs which it relates

Orissa Sales TaxAct,l956 Sales Tax 16.89 2002-03

Orissa Sales Tax Act, Sales Tax 8.02 2003-04 1956

Orissa Sales TaxAct, Sales Tax 17.37 2004-05 1956

BiharVlueAdded TaxAct, Interest 1.26 2009-10 2005 on Value Added Tax

Bihar Value Added TaxAct, VlueAdded 1.98 2008-09 2005 Tax

BiharValueAdded TaxAct, Value Added 2.76 2009-10 2005 Tax

Uttar Pradesh Value Added Value Added 9.46 2014-15 Tax, 2008 Tax

Uttar Pradesh Value Added Interest on 1.33 2007-08 Tax, 2008 Value Added Tax

Central Sales Tax Act, Penalty for 0.60 2007-08 1956 non-filing of CST return

Name of the Forum where Statute dispute is Pending

Orissa Sales TaxAct,l956 Sales Tax Tribunal

Orissa Sales Tax Act, Sales Tax Tribunal 1956

Orissa Sales TaxAct, Sales Tax Tribunal 1956

BiharVlueAdded TaxAct, Commercial'TaxTribunal 2005

Bihar Value Added TaxAct, Commercial TaxTribunal 2005

BiharValueAdded TaxAct, Commercial Tax Tribunal 2005

Uttar Pradesh Value Added Commercial Tax Tribunal Tax, 2008

Uttar Pradesh Value Added Assistant Commissioner Tax, 2008

Central Sales Tax Act, 1956 Sales Tax Officer

(c) According to the information and explanations given to us, during the year there were no amounts required to be transferred to Investor Education and Protection Fund.

(viii) There are no accumulated losses of the Company as on March 31,2015. The Company has not incurred any cash losses during the financial year covered by our audit and in the immediately preceding financial year.

(ix) As per the information and explanation given to us, the Company has not defaulted in the repayment of dues to the Bank during the year.

(x) As per the information and explanations given to us, the Company has not given any guarantee for loan taken by others from banks or financial institutions.

(xi) As per the information and explanations given to us, during the year the term loans have been applied for the purpose for which they were obtained.

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

For BANSI S. MEHTA & CO. Chartered Accountants (Firm Regn. No. I0099IW) Mumbai H. G. Buch Date : 15th May, 2015 Partner (M. No. 33114)


Mar 31, 2014

1. We have audited the accompanying financial statements of Safari Industries (India) Ltd ("the Company") which comprise the Balance Sheet as at March 31, 2014, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and Significant Accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

2. Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India including Accounting Standards notified under the Companies Act, 1956 ("the Act") read with the General Circular 15/2013 dated 13th September, 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 fair 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

3. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with 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 judgement, including the assessment of the risks of material misstatements of the financial statements, whether due to fraud or error. In making those risks 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 appropri- ate 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 the management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence that we have obtained is sufficient and appropriate to provide a basis for our opinion. Opinion

4. In our opinion, and to the best of our information and according to the explanations given to us, 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 principles generally accepted in India:

i. In the case of Balance Sheet, of the state of affairs of the Company as at March 31, 2014 ii. In the case of the Statement of Profit & Loss, of the profit for the year ended on that date, and iii. In the case of Cash Flow Statement, of the cash flows for the year ended on that date. Report on Other Legal and Regulatory Requirements

5. As required by the Companies (Auditor''s Report) Order, 2003 ("the Order"), as amended by the Companies (Auditor''s Report) (Amendment) Order, 2004, issued by the Central Government in terms of Section 227(4A) of the Companies Act, 1956, we enclose in the Annexure a Statement on the matters specified in the paragraphs 4 and 5 of the Order.

6. As required by Section 227(3) of the Act, 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, Statement of Profit & Loss and Cash Flow Statement dealt with by this report are in agreement with the books of account. iv. In our opinion, the Balance Sheet, Statement of Profit & Loss and Cash Flow Statement comply with the Accounting Standards notified under the Act read with the General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013.

v. On the basis of the written representations received from the directors of the Company as on March 31, 2014, taken on record by the Board of Directors, we report that none of the directors is disqualified as on March 31, 2014 from being appointed as a director in terms of Section 274(1)(g) of the Act.

ANNEXURE TO INDEPENDENT AUDITORS'' REPORT [Referred to in paragraph 5 under the heading of "Report on Other Legal and Regulatory Requirements" of our report of even date to the members of Safari Industries (India) Limited on the financial statements for the year ended March 31, 2014.]

On the basis of such checks, as we considered appropriate and in terms of information and explanations given to us, we report that: (i) (a) The Company is maintaining proper records to show full particulars, including quantitative details and situation of fixed assets.

(b) As explained to us, the Company has a programme of physical verification of fixed assets which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. In accordance with such programme, the management has physically verified fixed assets of significant value during the year and no material discrepancies were noticed on such verification. In case of fixed assets lying with third parties, confirmations have been obtained.

(c) The Company has not disposed off any substantial part of its fixed assets during the year so as to affect its going concern. (ii) (a) Inventories have been physically verified by the management during the year, except material lying with third parties in respect of which confirmations are obtained. 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 are reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) The Company is maintaining proper records of inventory. The discrepancies noticed on verification between physical inventories and book records were not material in relation to the size of operations of the Company and the same have been properly dealt with in the books of account.

(iii) (a) As per the information furnished, the Company has not granted any loans, secured or unsecured, to companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956. (b),(c),(d) Accordingly, Clause (iii)(b) relating to the rate of interest and terms and conditions being prima facie prejudicial to the Company, Clause (iii)(c) relating to regularity of receipt of principal amount and interest and Clause (iii)(d) relating to steps taken for recovery of overdue principal and interest of more than rupees one lakh, are not applicable.

(e) As per information furnished, the Company has not taken any loans, secured or unsecured from companies, firms or other parties covered in the register maintained under Section 301 of the Act. (f),(g) Accordingly, Clause (iii)(f) relating to the rate of interest and other terms and conditions being prima facie prejudicial to the interest of the Company and clause (iii)(g) relating to the repayment of such loans are not applicable.

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

(v) (a) Based on the audit procedures applied by us and according to the information and explanations provided to us, we are of the opinion that the particulars of contracts or arrangements referred to in Section 301 of the Act have been entered in the register required to be maintained under that Section; and (b) According to the information and explanations given to us, the transactions made in pursuance of such contracts or arrange- ments entered in the Register maintained under Section 301 of the Companies Act, 1956 and exceeding the value of rupees five lakhs in respect of each party during the year, have been made at prices which are reasonable, having regard to prevailing market prices at the relevant time, wherever applicable.

(vi) In our opinion and according to the information and explanations given to us, the Company has complied with Section 58A, 58AA or any other relevant provisions of the Companies Act, 1956 and the rules framed thereunder and the directives issued by the Reserve Bank of India, wherever applicable, with regard to the deposits accepted from the public.

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

(viii) The Company has maintained the cost records prescribed under Section 209(1)(d) of the Companies Act, 1956 read with Notifi- cation dated 3rd June, 2011 issued by Ministry of Corporate Affairs prescribing The Companies (Cost Accounting Records) Rules, 2011. We are informed that the Company is in the process of updating such records for the financial year ended 31st March, 2014. (ix) (a) According to the information and explanations given to us and the records examined by us, the Company has generally been regular in depositing with appropriate authorities undisputed statutory dues (except in respect of Profession Tax deposits in Andhra Pradesh, where there were delays) being Provident Fund, Investor Education and Protection Fund, Excise Duty,

Wealth tax, Customs Duty, Income tax, Employees'' State Insurance and other material statutory dues. There are undisputed arrears of Service tax amounting to Rs. 1.75 lacs outstanding as at March 31, 2014 for a period of more than six months from the date they became payable.

(b) The disputed amounts that have not been deposited in respect of Sales Tax, Income Tax, Entry Tax and Value Added Tax are as under:

Name of the Statute Nature of Amount the dues Rs. in Lacs

Orissa Sales Ta x Act, 1956 Sales Tax 16.89

Orissa Sales Ta x Act, 1956 Sales Tax 20.52

Orissa Sales Ta x Act, 1956 Sales Tax 17.37

Bihar Value Added Ta x Act, 2005 Interest on Value Added Tax 1.26

Bihar Value Added Ta x Act, 2005 Value Added Tax 1.98

Bihar Value Added Ta x Act, 2005 Value Added Tax 2.26

Central Sales Ta x Act, 1956 Additional CST & Interest 0.07 '' Central Sales Ta x Act, 1956 Additional CST & Interest 0.85

Uttar Pradesh Value Added Tax, 2008 Interest on Value Added Tax 1.78

Central Sales Tax Act, 1956 Penalty for non filing of CST return 0.60

Central Sales Ta x Act, 1956 Sales Tax 2.65

Name of the Statute Period to which Forum where it relates dispute is pending

Orissa Sales Tax Act, 1956 2002-03 Sales Tax Tribunal

Orissa Sales Tax Act, 1956 2003-04 Sales Tax Tribunal

Orissa Sales Tax Act, 1956 2004-05 Sales Tax Tribunal

Bihar Value Added Tax Act, 2005 2009-10 Commercial Tax Tribunal

Bihar Value Added Tax Act, 2005 2008-09 Commercial Tax Tribunal

Bihar Value Added Tax Act, 2005 2009-10 Commercial Tax Tribunal

Central Sales Tax Act, 1956 2009-10 Assistant Commissioner

Central Sales Tax Act, 1956 2010-11 Assistant Commissioner

Uttar Pradesh Value Added Tax, 2008 2007-08 Assistant Commissioner

Central Sales Tax Act, 1956 2007-08 Sales Tax Officer

Central Sales Tax Act, 1956 2009-10 Deputy Commissioner

(x) There are no accumulated losses of the Company as on March 31, 2014. The Company has not incurred any cash loss during the financial year covered by our audit. However it has incurred cash loss in the immediate preceding financial year.

(xi) As per the information and explanation given to us, the Company has not defaulted in the repayment of dues to the Bank during the year.

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

(xiii) Clause (xiii) of the Order is not applicable to the Company as it is not a chit fund or nidhi/ mutual benefit fund/ society.

(xiv) According to the information and explanations given to us, the Company is not dealing or trading in shares, securities, debentures and other investments and hence, the requirements of Clause 4(xiv) of the Order are not applicable to the Company.

(xv) As per the information and explanations given to us, the Company has not given any guarantee for loan taken by others from banks or financial institutions.

(xvi) As per the information and explanations given to us, the term loans have been applied for the purpose for which they were obtained.

(xvii) According to the information and explanations given to us, funds raised on short term basis have been used for long term investments to the extent of Rs. 750.24 lacs.

(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 Companies Act, 1956, during the year.

(xix) According to the information and explanations given to us, the Company has not issued any debentures and hence, the question of creating security or charges in respect thereof does not arise.

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

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

For BANSI S. MEHTA & CO.

Chartered Accountants

(Firm Regn. No. 100991W)

Mumbai H. G. Buch

Date : 10th May, 2014 Partner

(M. No. 33114)


Mar 31, 2013

Report on the Financial Statements

1. We have audited the accompanying financial statements of Safari Industries (India) Ltd., which comprise the Balance Sheet as at March 31, 2013 and the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and Significant Accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

2. Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with 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 fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error.

Auditor''s Responsibility

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

Opinion

4. In our opinion, and to the best of our information and according to the explanations given to us, the said accounts read with the Significant Accounting Policies and Other Explanatory Information thereon, give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view, in conformity with the accounting principles generally accepted in India:

i. In the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2013, ii. In the case of the Statement of Profit & Loss, of the loss for the year ended on that date, and iii. In the case of Cash Flow Statement, of the cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

5. As required by the CompaniesRs. (Auditor''s Report) Order, 2003, as amended, issued by the Central Government in terms of Section 227(4A) of the Companies Act, 1956, we enclose in the Annexure a Statement, on the basis of such checks as we considered appropriate and the information and explanations given to us, on the matters specified in paragraph 4 of the said Order.

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

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

ii. In our opinion, proper books of accounts as required by law have been kept by the Company so far as appears from our examination of such books.

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

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

v. On the basis of the written representation received from the Directors of the Company and taken on record by the Board of Directors, we report that none of the directors are 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 referred to in paragraph 5 of the Auditors'' Report of even date to the members of SAFARI INDUSTRIES (INDIA) LIMITED on the accounts for the year ended March 31, 2013.

(i) (a) The Company is maintaining proper records to show full particulars, including quantitative details and situation of fixed assets.

(b) As explained to us, the Company has a programme of physical verification of fixed assets which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. In accordance with such programme, the management has physically verified fixed assets of significant value during the year and no material discrepancies were noticed on such verification. In case of fixed assets lying with third parties, confirmations have been obtained.

(c) During the year, the Company has disposed of substantial part of its Fixed Assets. However it has not affected the going concern status of the Company.

(ii) (a) The inventories have been physically verified by the management during the year, except material lying with third parties in respect of which confirmations are obtained. 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 are reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) The Company is maintaining proper records of inventory. The discrepancies noticed on verification between physical inventories and book records were not material in relation to the size of operations of the Company and the same have been properly dealt with in the books of account.

(iii) (a) As per the information furnished, the Company has not granted any loans, secured or unsecured, to companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956.

(b),(c),(d) Accordingly, Clause (iii)(b) relating to the rate of interest and terms and conditions being prima facie prejudicial to the Company, Clause (iii)(c) relating to regularity of receipt of principal amount and interest and Clause (iii)(d) relating to steps taken for recovery of overdue principal and interest of more than rupees one lakh, are not applicable.

(e) As per information furnished, the Company has not taken any loans, secured or unsecured from companies, firms or other parties covered in the register maintained under section 301 of the Act. (f),(g) Accordingly, Clause (iii) (f) relating to the rate of interest and other terms and conditions being prima facie prejudicial to the interest of the Company and clause (iii) (g) relating to the repayment of such loans are not applicable. (iv) In our opinion and according to the information and explanations given to us, there are adequate internal control systems commensurate with the size of the Company and the nature of its business with regard to purchase of inventory and fixed assets and for the sale of goods and services. During the course of our audit, no major weakness has been noticed in the internal control system. (v) (a) Based on the audit procedures applied by us and according to the information and explanations provided to us, we are of the opinion that the particulars of contracts or arrangements referred to in Section 301 of the Act have been entered in the register required to be maintained under that Section; and (b) According to the information and explanations given to us, the transactions made in pursuance of such contracts or arrangements entered in the Register maintained under Section 301 of the Companies Act, 1956 and exceeding the value of rupees five lakhs in respect of each party during the year, have been made at prices which are reasonable, having regard to prevailing market prices at the relevant time, wherever applicable. (vi) In our opinion and according to the information and explanations given to us, the Company has complied with Section 58A, 58AA or any other relevant provisions of the Companies Act, 1956 and the rules framed thereunder and the directives issued by the Reserve Bank of India, wherever applicable, with regard to the deposits accepted from the public. (vii) In our opinion and according to the explanations given to us, the Company has an internal audit system commensurate with its size and nature of its business. (viii) The Company has maintained the cost records prescribed under Section 209(1)(d) of the Companies Act, 1956 read with Notification dated 3rd June, 2011 issued by Ministry of Corporate Affairs prescribing the Companies (Cost Accounting Records) Rules, 2011. We are informed that the Company is in the process of updating such records for the financial year ended 31st March, 2013.

(x) There are no accumulated losses of the Company as on March 31, 2013. The Company has incurred cash losses during the financial year covered by our audit and the immediately preceding financial year. (xi) As per the information and explanation given to us, the Company has not defaulted in the repayment of dues to the Bank during the year.

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

(xiii) Clause (xiii) of the Order is not applicable to the Company as it is not a chit fund or nidhi / mutual benefit fund / society.

(xiv) According to the information and explanations given to us, the Company is not dealing or trading in shares, securities, debentures and other investments and hence, the requirements of Clause 4(xiv) of the Order are not applicable to the Company. (xv) As per the information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions. (xvi) As per the information and explanations given to us, the term loans have been applied for the purpose for which they were obtained.

(xvii) According to the information and explanations given to us, funds raised on short term basis have not been used for long term investments. (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 Companies Act, 1956, unring the year.

(xix) According to the information and explanations given to us, the Company has not issued any debentures and hence, the question of creating security or charges in respect thereof does not arise. (xx) The Company has not raised any money by public issue during the year. (xxi) Based on the audit procedures performed and information and explanations given to us by the management, we report that no fraud on or by the Company has been noticed or reported during the course of our audit.

For BANSI S. MEHTA & CO.

Chartered Accountants

(Firm Regn. No. 100991W)

Mumbai H. G. Buch

Dated : 13th May, 2013 Partner

(M. No. 33114)


Mar 31, 2012

1. We have audited the attached Balance Sheet of Safari Industries (India) Ltd., as at March 31,2012 and the Statement of Profit & Loss and Cash Flow Statement of the Company for the year ended on that date, annexed thereto. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

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 amount and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the 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, as amended, issued by the Central Government in terms of Section 227(4A) of the Companies Act, 1956, we enclose in the Annexure a Statement, on the basis of such checks as we considered appropriate and the information and explanations given to us, on the matters specified in paragraph 4 of the said Order.

4. Further to our comments in the Annexure referred to in paragraph 3 above, we report that:

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

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

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

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

v. On the basis of the written representation received from the Directors of the Company and taken on record by the Board of Directors, we report that none of the directors is disqualified as on March 31,2012 from being appointed as a director in terms of clause (g) of sub section (1) of section 274 of the Companies Act, 1956.

5. In our opinion, and to the best of our information and according to the explanations given to us, the said accounts read 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 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 March 31,2012,

ii. In the case of the Statement of Profit & Loss of the loss for the year ended on that date, and

iii. In the case of Cash Flow Statement, of the cash flows for the year ended on that date.

Annexure referred to in paragraph 3 of the Auditors' Report of even date to the members of SAFARI INDUSTRIES (INDIA) LIMITED on the accounts for the year ended March 31,2012.

(i) (a) The Company is maintaining proper records to show full particulars, including quantitative details and situation of fixed assets.

(b) As explained to us, the Company has a programmer of physical verification of fixed assets which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. In accordance with such programmer, the management has physically verified fixed assets of significant value during the year and no material discrepancies were noticed on such verification. In case of fixed assets lying with third parties, confirmations have been obtained.

(c) During the year, the Company has not disposed of any substantial part of its fixed assets.

(ii) (a) The inventories have been physically verified by the management during the year, except material lying with third parties and at depots, in respect of which confirmations are obtained. 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 are reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) The Company is maintaining proper records of inventory. The discrepancies noticed on verification between physical inventories and book records were not material in relation to the size of operations of the Company and the same have been properly dealt with in the books of account.

(iii) (a) As per the information furnished, the Company has not granted any loans, secured or unsecured, to companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956.

(b) Accordingly, Clause (iii)(b) relating to the rate of interest and terms and conditions being prima facie prejudicial to the Company, Clause (iii)(c) relating to regularity of receipt of principal amount and interest and Clause (iii)(d) relating to steps taken for recovery of overdue principal and interest of more than rupees one lakh, are not applicable.

(c) As per information furnished, the Company has not taken any loans, secured or unsecured from companies, firms or other parties covered in the register maintained under section 301 of the Act.

(d) Accordingly, Clause (iii) (f) relating to the rate of interest and other terms and conditions being prima facie prejudicial to the interest of the Company and clause (iii) (g) relating to the repayment of such loans are not applicable

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

(v) (a) Based on the audit procedures applied by us and according to the information and explanations provided to us, we are of the opinion that the particulars of contracts or arrangements referred to in Section 301 of the Act have been entered in the register required to be maintained under that Section; and (b) According to the information and explanations given to us, the transactions made in pursuance of such contracts or arrangements entered in the Register maintained under Section 301 of the Companies Act, 1956 and exceeding the value of rupees five lakhs in respect of each party during the year, have been made at prices which are reasonable, having regard to prevailing market prices at the relevant time, wherever applicable.

(vi) In our opinion and according to the information and explanations given to us, the Company has complied with Section 58A, 58AA or any other relevant provisions of the Companies Act, 1956 and the rules framed there under and the directives issued by the Reserve Bank of India, wherever applicable, with regard to the deposits accepted from the public.

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

(viii) We are informed that the Company is in the process of maintaining the cost records prescribed under Section 209 (1)

(d) of the Companies Act, 1956 read with Notification dated 3rd June, 2011 issued by Ministry of Corporate Affairs prescribing The Companies (Cost Accounting Records) Rules, 2011. Accordingly, we are unable to comment as to whether such accounts and records have been made or maintained.

(ix) (a) According to the information and explanations given to us and the records examined by us, the Company has generally been regular in depositing with appropriate authorities undisputed statutory dues being provident fund, investor education and protection fund, excise duty, wealth tax, customs duty and other material statutory dues, wherever applicable, except in respect of employees' state insurance, income tax, sales tax, service tax, cess, wherein there have been delays. There are no undisputed arrears of above mentioned statutory dues outstanding as at March 31, 2012 for a period of more than six months from the date they became payable.

(b) The disputed amounts that have not been deposited in respect of Sales Tax and Entry Tax are as under:

Name of the Statue Nature of Amount Period to which Forum where the dues Rs.Lacs it relates dispute is pending

Orissa Sales Tax Act, 1956 Sales Tax 16.62 2002-03 Sales Tax Tribunal

Orissa Entry Tax Act, 1999 Entry Tax 1.17 2002-03 Sales Tax Tribunal

Orissa Sales Tax Act, 1956 Sales Tax 20.52 2003-04 Sales Tax Tribunal

Orissa Entry Tax Act, 1999 Entry Tax 1.95 2003-04 Sales Tax Tribunal

Orissa Entry Tax Act, 1999 Entry Tax 1.42 2004-05 Sales Tax Tribunal

Orissa Sales Tax Act, 1956 Sales Tax 17.37 2004-05 Sales Tax Tribunal

(x) There are no accumulated losses of the Company as on March 31, 2012. However the Company has incurred cash losses during the financial year covered by our audit but not in the immediately preceding financial year.

(xi) As per the information and explanations given to us, as the Company has not borrowed any amount from a financial institution or bank or debenture holders, the requirement of reporting under this clause is not applicable.

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

(xiii) Clause (xiii) of the Order is not applicable to the Company as it is not a chit fund or nidhi / mutual benefit fund / society.

(xiv) According to the information and explanations given to us, the Company is not dealing or trading in shares, securities, debentures and other investments and hence, the requirements of Clause 4(xiv) of the Order are not applicable to the Company.

(xv) As per the information and explanations given to us, the Company has not given any guarantee for loan taken by others from banks or financial institutions.

(xvi) As per the information and explanations given to us, the term loans have been applied for the purpose for which they were obtained.

(xvii) According to the information and explanations given to us, funds raised on short term basis of Rs.81 lakhs have been used for long term investments.

(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 Companies Act, 1956, during the year.

(xix) According to the information and explanations given to us, the Company has not issued any debentures and hence, the question of creating security or charges in respect thereof does not arise.

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

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

FOR BANSI S. MEHTA & CO.

Chartered Accountants

(Firm Regn. No. 100991W)

Mumbai H. G. Buch

Dated : 29th May, 2012 Partner

(M. No. 33114)


Mar 31, 2011

1. We have audited the attached Balance Sheet of Safari Industries (India) Ltd., as at March 31,2011 and the Profit & Loss Account and Cash Flow Statement of the Company for the year ended on that date, annexed thereto. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

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 amount and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the 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, as amended, issued by the Central Government in terms of Section 227(4A) of the Companies Act, 1956, we enclose in the Annexure a Statement, on the basis of such checks as we considered appropriate and the information and explanations given to us, on the matters specified in paragraph 4 of the said Order.

4. Further to our comments in Annexure referred to in paragraph 3 above, we report that:

i. We have obtained all the information and explanations, which to the best of our knowledge and belief were neces- sary for the purposes 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 such books.

iii. The Balance Sheet, Profit & 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 & Loss Account and Cash Flow Statement comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956.

v. On the basis of the written representation received from the Directors of the Company and taken on record by the Board of Directors, we report that none of the directors is disqualified as on March 31,2011 from being appointed as a director in terms of clause (g) of sub section (1) of section 274 of the Companies Act, 1956.

5. In our opinion, and to the best of our information and according to the explanations given to us, the said accounts read 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 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 March 31, 2011,

ii. In the case of the Profit & Loss Account of the profit for the year ended on that date, and

iii. In the case of Cash Flow Statement, of the cash flows for the year ended on that date.

Annexure referred to in paragraph 3 of the Auditors Report of even date to the members of SAFARI INDUSTRIES (INDIA) LIMITED on the accounts for the year ended March 31,2011.

(i) (a) The Company is maintaining proper records to show full particulars, including quantitative details and situation of fixed assets.

(b) As explained to us, the Company has a programme of physical verification of fixed assets which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. In accordance with such programme, the management has physically verified fixed assets of significant value during the year and no material discrepancies were noticed on such verification. In case of fixed assets lying with third parties, confir- mations have been obtained.

(c) During the year, the Company has not disposed off any substantial part of its fixed assets.

(ii) (a) The inventories have been physically verified by the management during the year, except material lying with third parties and at depots, in respect of which confirmations are obtained. In our opinion, the frequency of verifica- tion is reasonable.

(b) In our opinion and according to the information and explanations given to us, the procedures of physical verifica- tion 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 is maintaining proper records of inventory. The discrepancies noticed on verification between physical inventories and book records were not material in relation to the size of operations of the Company and the same have been properly dealt with in the books of account.

(iii) (a) As per the information furnished, the Company has not granted any loans, secured or unsecured, to companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956.

(b) Accordingly, Clause (iii)(b) relating to the rate of interest and terms and conditions being prima facie prejudicial to the Company, Clause (iii)(c) relating to regularity of receipt of principal amount and interest and Clause (iii)(d) relating to steps taken for recovery of overdue principal and interest of more than rupees one lakh, are not applicable.

(e) As per information furnished, the Company has not taken any loans, secured or unsecured from companies, firms or other parties covered in the register maintained under section 301 of the Act.

(f) Accordingly, Clause (iii) (f) relating to the rate of interest and other terms and conditions being prima facie preju- dicial to the interest of the Company and clause (iii) (g) relating to the repayment of such loans are not applicable.

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

(v) (a) Based on the audit procedures applied by us and according to the information and explanations provided to us, we are of the opinion that the particulars of contracts or arrangements referred to in Section 301 of the Act have been entered in the register required to be maintained under that Section; and

(b) According to the information and explanations given to us, the transactions made in pursuance of such contracts or arrangements entered in the Register maintained under Section 301 of the Companies Act, 1956 and exceed- ing the value of rupees five lakhs in respect of each party during the year, have been made at prices which are reasonable, having regard to prevailing market prices at the relevant time, wherever applicable.

(vi) In our opinion and according to the information and explanations given to us, the Company has complied with the Section 58A, 58AA or any other relevant provisions of the Companies Act, 1956 and the rules framed thereunder and the directives issued by the Reserve Bank of India, wherever applicable, with regard to the deposits accepted from the public, save and except maintaining minimum liquid assets, in terms of Rule 3A of the Companies (Acceptance of Deposits) Rules, 1975, to the extent of Rs. 0.83 Lakhs (out of total liquid assets requirement of Rs. 31.08 Lakhs) which was placed in fixed deposit on June 18,2010 instead of (on or before) April 30,2010.

(vii) In our opinion and according to the explanations given to us, the Company has an internal audit system commensu- rate with its size and nature of its business.

(viii) We have been informed that maintenance of cost records has not been prescribed by the Central Government under Section 209 (1)(d) of the Companies Act, 1956.

(ix) (a) According to the information and explanations given to us and the records examined by us, the Company has generally been regular in depositing with appropriate authorities undisputed statutory dues being provident fund, investor education and protection fund, excise duty wealth tax, customs duty, and other material statutory dues, wherever applicable, except in respect of employees state insurance, income tax, sales tax, service tax, cess, wherein there have been delays. There are no undisputed arrears of above mentioned statutory dues outstanding as at March 31, 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, there were no disputed dues of income-tax, customs duty, wealth tax, service tax, excise duty and cess. The disputed amounts that have not been deposited in respect of Sales Tax, Income Tax and Entry Tax are as under:

Name of the Statue Nature of Amount Period to which the dues Rs. Lacs it relates

Gujarat Sales Tax Act, 1969 Sales Tax 15.76 2003-04

Gujarat Sales Tax Act,1969 Sales Tax 25.42 2004-05

Gujarat Sales Tax Act, 1969 Sales Tax 33.43 2005-06

Orissa Sales Tax Act, 1956 Sales Tax 16.62 2002-03

Orissa Sales Tax Act, 1956 Sales Tax 20.52 2003-04

Orissa Sales Tax Act, 1956 Sales Tax 17.37 2004-05

Orissa Entry Tax Act, 1999 Entry Tax 1.17 2002-03

Orissa Entry Tax Act, 1999 Entry Tax 1.95 2003-04

Orissa Entry Tax Act, 1999 Entry Tax 1.42 2004-05

Gujarat Sales Tax Act, 1969 Sales Tax 28.52 2002-03

Name of the Statue Forum where dispute is pending

Gujarat Sales Tax Act, 1969 Sales Tax Tribunal

Gujarat Sales Tax Act, 1969 Sales Tax Tribunal

Gujarat Sales Tax Act, 1969 Sales Tax Tribunal

Orissa Sales Tax Act, 1956 Sales Tax Tribunal

Orissa Sales Tax Act, 1956 Sales Tax Tribunal

Orissa Sales Tax Act, 1956 Sales Tax Tribunal

Orissa Entry Tax Act, 1999 Sales Tax Tribunal

Orissa Entry Tax Act, 1999 Sales Tax Tribunal

Orissa Entry Tax Act, 1999 Sales Tax Tribunal

Gujarat Sales Tax Act, 1969 Sales Tax Tribunal

(x) There are no accumulated losses of the Company as on March 31,2011 and the Company has not incurred any cash losses during the financial year covered by our audit and the immediately preceding financial year.

(xi) In our opinion, the Company has not defaulted in the repayment of dues to the Bank during the year.

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

(xiii) Clause (xiii) of the Order is not applicable to the Company as it is not a chit fund or nidhi / mutual benefit fund / society.

(xiv) According to the information and explanations given to us, the Company is not dealing or trading in shares, securities, debentures and other investments and hence, the requirements of Clause 4(xiv) of the Order are not applicable to the Company.

(xv) As per the information and explanations given to us, the Company has not given any guarantee for loan taken by others from banks or financial institutions.

(xvi) As per the information and explanations given to us, the term loans have been applied for the purpose for which they were obtained.

(xvii) According to the information and explanations given to us, funds raised on short term basis have not been used for long term investments.

(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 Companies Act, 1956, during the year.

(xix) According to the information and explanations given to us, the Company has not issued any debentures and hence, the question of creating security or charges in respect thereof does not arise.

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

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



FOR BANSI S. MEHTA & CO. Chartered Accountants (Firm Regn. No. 100991W)

H. G. Buch Partner (M. No. 33114)

Mumbai Dated : 30th May, 2011


Mar 31, 2010

1. We have audited the attached Balance Sheet of Safari Industries (India) Ltd., as at March 31,2010 and the Profit & Loss Account and Cash Flow Statement of the Company for the year ended on that date, annexed thereto. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

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 amount and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the 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, as amended, issued by the Central Government in terms of Section 227(4A) of the Companies Act, 1956, we enclose in the Annexure a Statement, on the basis of such checks as we considered appropriate and the information and explanations given to us, on the matters specified in paragraph 4 of the said Order.

4. Further to our comments in Annexure referred to in paragraph 3 above, we report that:

i. We have obtained all the information and explanations, which to the best of our knowledge and belief were neces- sary for the purposes 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 such books.

iii. The Balance Sheet, Profit & 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 & Loss Account and Cash Flow Statement comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956.

v. On the basis of the written representation received from the Directors of the Company and taken on record by the Board of Directors, we report that none of the directors is disqualified as on March 31, 2010 from being appointed as a director in terms of clause (g) of sub section (1) of section 274 of the Companies Act, 1956.

5. In our opinion, and to the best of our information and according to the explanations given to us, the said accounts read 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 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 March 31, 2010,

ii. In the case of the Profit & Loss Account of the profit for the year ended on that date, and

iii. In the case of Cash Flow Statement, of the cash flows for the year ended on that date.



Annexure referred to in paragraph 3 of the Auditors Report of even date to the members of SAFARI INDUSTRIES (INDIA) LIMITED on the accounts for the year ended March 31,2010.

(i) (a) The Company is maintaining proper records to show full particulars, including quantitative details and situation of fixed assets.

(b) As explained to us, the Company has a programme of physical verification of fixed assets which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. In accordance with such programme, the management has physically verified fixed assets of significant value during the year and no material discrepancies were noticed on such verification. In case of fixed assets lying with third parties, confir- mations have been obtained.

(c) During the year, the Company has not disposed off any substantial part of its fixed assets.

(ii) (a) The inventories have been physically verified by the management during the year, except material lying with third parties and at depots, in respect of which confirmations are obtained. In our opinion, the frequency of verifica- tion is reasonable.

(b) In our opinion and according to the information and explanations given to us, the procedures of physical verifica- tion 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 is maintaining proper records of inventory. The discrepancies noticed on verification between physical inventories and book records were not material in relation to the size of operations of the Company and the same have been properly dealt with in the books of account.

(iii) (a) As per the information furnished, the Company has not granted any loans, secured or unsecured, to companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956.

(b) Accordingly, Clause (iii)(b) relating to the rate of interest and terms and conditions being prima facie prejudicial to the Company, Clause (iii)(c) relating to regularity of receipt of principal amount and interest and Clause (iii)(d) relating to steps taken for recovery of overdue principal and interest of more than rupees one lakh, are not applicable.

(c) As per information furnished, the Company has not taken any loans, secured or unsecured from companies, firms or other parties covered in the register maintained under section 301 of the Act.

(d) Accordingly, Clause (iii) (f) relating to the rate of interest and other terms and conditions being prima facie prejudicial to the interest of the Company and clause (iii) (g) relating to the repayment of such loans are not applicable .

(iv) In our opinion and according to the information and explanations given to us, there are adequate internal control system commensurate with the size of the Company and the nature of its business with regard to purchase of inventory and fixed assets and for the sale of goods and services. During the course of our audit, no major weakness has been noticed in the internal control system. (v) (a) Based on the audit procedures applied by us and according to the information and explanations provided to us, we are of the opinion that the particulars of contracts or arrangements referred to in Section 301 of the Act have been entered in the register required to be maintained under that Section; and (b) According to the information and explanations given to us, the transactions made in pursuance of such contracts or arrangements entered in the Register maintained under Section 301 of the Companies Act, 1956 and exceed- ing the value of rupees five lakhs in respect of each party during the year, have been made at prices which are reasonable, having regard to prevailing market prices at the relevant time, wherever applicable. (vi) In our opinion and according to the information and explanations given to us, the Company has complied with the Section 58A, 58AA or any other relevant provisions of the Companies Act, 1956 and the rules framed thereunder and the directives issued by the Reserve Bank of India, wherever applicable, with regard to the deposits accepted from the public.

(vii) In our opinion and according to the explanations given to us, the Company has an internal audit system commensu- rate with its size and nature of its business.

(viii) We have been informed that maintenance of cost records has not been prescribed by the Central Government under Section 209 (l)(d) of the Companies Act, 1956.

(ix) (a) According to the information and explanations given to us and the records examined by us, the Company has generally been regular in depositing with appropriate authorities undisputed statutory dues being provident fund, investor education and protection fund, excise duty wealth tax, customs duty, and other material statutory dues, wherever applicable, except in respect of employees state insurance, income tax, sales tax, service tax, cess, wherein there have been delays. There are no undisputed arrears of abovementioned statutory dues outstanding as at March 31, 2010 for a period of more than six months from the date they became payable. (b) According to the information and explanations given to us, there were no disputed dues of customs duty, wealth-tax, service tax, excise duty and cess. The disputed amounts that have not been deposited in respect of Sales Tax, Income Tax and Entry Tax are as under:

Name of the Statue Nature of Amount

the dues Rs.Lacs

Gujarat Sales Tax Act, 1969 Sales Tax 15.76

Gujarat Sales Tax Act, 1969 Sales Tax 25.42

Gujarat Sales Tax Act, 1969 Sales Tax 33.43

Orissa Sales Tax Act, 1956 Sales Tax 16.62

Orissa Sales Tax Act, 1956 Sales Tax 20.52

Orissa Sales Tax Act, 1956 Sales Tax 17.37

Orissa Entry Tax Act, 1999 Entry Tax 1.17

Orissa Entry Tax Act, 1999 Entry Tax 1.95

Orissa Entry Tax Act, 1999 Entry Tax 1.42

Gujarat Sales Tax Act, 1969 Sales Tax 28.52

Income Tax Act, 1962 IncomeTax 0.83



Name of the Statue Period to which Forum where it relates dispute is pending

Gujarat Sales Tax Act, 1969 2003-04 Sales TaxTribunal

Gujarat Sales Tax Act, 1969 2004-05 Sales TaxTribunal

Gujarat Sales Tax Act, 1969 2005-06 Sales TaxTribunal

Orissa Sales Tax Act, 1956 2002-03 Sales TaxTribunal

Orissa Sales Tax Act, 1956 2003-04 Sales TaxTribunal

Orissa Sales Tax Act, 1956 1004-05 Sales TaxTribunal

Orissa Entry Tax Act, 1999 2002-03 Sales TaxTribunal

Orissa Entry Tax Act, 1999 2003-04 Sales TaxTribunal

Orissa Entry Tax Act, 1999 2004-05 Sales TaxTribunal

Gujarat Sales Tax Act, 1969 2002-03 Sales TaxTribunal

Income Tax Act, 1962 2006-07 CIT (Appeals)

(x) There are no accumulated losses of the Company as on March 31, 2010 and the Company has not incurred any cash losses during the financial year covered by our audit and the immediately preceding financial year.

(xi) In our opinion, considering that the company had authorised the bank to recover the term loans instalments and the interest on respective due dates, the Company has not defaulted in the repayment of dues to the Bank during the year. However the bank has not recovered such instalments and interest on respective due dates.

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

(xiii) Clause (xiii) of the Order is not applicable to the Company as it is not a chit fund or nidhi / mutual benefit fund / society.

(xiv) According to the information and explanations given to us, the Company is not dealing or trading in shares, secu- rities, debentures and other investments and hence, the requirements of Clause 4(xiv) of the Order are not appli- cable to the Company.

(xv) As per the information and explanations given to us, the Company has not given any guarantee for loan taken by others from banks or financial institutions.

(xvi) As per the information and explanations given to us, the term loans have been applied for the purpose for which they were obtained.

(xvii) According to the information and explanations given to us, funds raised on short term basis have not been used for long term investments.

(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 Companies Act, 1956, during the year.

(xix) According to the information and explanations given to us, the Company has not issued any debentures and hence, the question of creating security or charges in respect thereof does not arise.

(xx) The Company has not raised any money by public issues during the year.

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



FOR BANSIS. MEHTA & CO.

Chartered Accountants

(Firm Regn. No. 109160W)

Mumbai H. G. Buch

Dated : 15th May, 2010 Partner

(M. No. 33114)

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