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Auditor Report of Sangam (India) Ltd.

Mar 31, 2015

We have audited the accompanying financial statements of M/s. SANGAM (INDIA) LIMITED, which comprise the Balance Sheet as at 31st March, 2015 and the Statement of Profit and Loss and Cash Flow Statements for the year then ended 31st March, 2015, and a summary of significant accounting policies and other explanatory information.

MANAGEMENT's Responsibility For The Financial statements

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

Auditor's Responsibility

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

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

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 financial control relevant to the Company's preparation of the financial statements that give 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 an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by 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 financial statements.

opinion

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;

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

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

Report on other LEGAL AND Regulatory Requirements

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

2) 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 appears from our examination of those books.

c) The Balance Sheet, the 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 aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

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

f) With respect to the other matters included in the Auditor's Report and to our best of our information and according to the explanations given to us :

i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements – Refer Note 33 to the financial statements.

ii. The Company does not have any long-term contracts including derivatives contracts for which there were any material foreseeable losses.

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

Annexure referred to in Point 1 of the Auditors' Report of even date to the members of Sangam (India) Limited for the year ended as on March 31, 2015.

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

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

b. As per the information and explanations given to us, physical verification of fixed assets has been carried out in terms of the phased program of verification adopted by the company and no material discrepancies were noticed on such verification.

(ii) a. As per the information and explanation given to us, the inventories (excluding stock, materials and work in progress, which are in transit & stock lying with third parties) have been physically verified during the year by the management. In our opinion, having regard to the nature and location of stocks, the frequency of the physical verification is reasonable.

b. In our opinion and according to the information and explanations given to us, procedures of physical verification of inventory followed by the management are 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 and no material discrepancies were noticed on verification of inventory.

(iii) a. As per the information and explanation given to us, the company has not granted unsecured loans to companies covered in the register maintained under section 189 of the Companies Act, 2013. The number of such parties involved are NIL and the maximum balance during the year is NIL and the closing balance as on year end is NIL.

b. The receipt of principal amount and interest are on demand basis.

c. The overdue amount is not more than Rs.1 lakh, since the payment is on demand basis & Clause (iii)c is not applicable.

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

(v) In our opinion and according to the information and explanation given to us, the company has not accepted deposits from the Shareholders/directors and the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Act and the rules framed there under.

(vi) The Central Government has prescribed maintenance of the cost records U/S 148(1)of the Companies Act, 2013 in respect to the company's products. We have broadly reviewed the books of accounts & records maintained by the company in this connection and are of the opinion that prima facie, the prescribed accounts and records have been made & maintained. We have however, not made a detailed examination of the records with a view to determining whether they are accurate or complete.

(vii) a. According to the information and explanations given to us and the records examined by us, the company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident fund, investor education and protection fund, employees' state insurance, income-tax, sales- tax, wealth-tax, service tax, custom-duty and excise duty, cess and other statutory dues with appropriate authorities wherever applicable. According to the information and explanations given to us, no undisputed arrears of statutory dues were outstanding, as at 31st March 2015 for a period of more than 6 months from the date they became due.

b. According to the record of the company, the dues of sales-tax, income-tax, customs, wealth-tax, excise-duty, service tax which have not been deposited on account of disputes and the forum where the dispute is pending are given here-under:

Disputed Matters with the various forum

sl. Name Nature Amount No. of the statute of the dues (Rs.In Lacs)

Gross Net of Deposited

1 Income Tax Act, 1961 Income Tax 21.00 21.00

2 Income Tax Act, 1961 Income Tax 8.00 8.00

3 Rajasthan Stamp Act, Stamp Duty 108.91 88.91 1998

4 Rajasthan Value Added Value Added 166.59 149.93 Tax, 2003 Tax

5 Electricity Act, 2003 Power Factor 54.28 7.96 Incentive

6 Rajasthan Tax into Entry Tax and 468.18 394.81 entry of Goods into Interest Local Area Act, 1999

7 Central Excise Act, Excise Duty 1.80 1.31 1994

8 Central Excise Act, Excise Duty 15.80 Nil 1994

9 Service Tax Service Tax 16.25 5.24

10 Service Tax Service Tax 38.53 3.93

11 Electricity Act, 2003 Fixed Charges 19.57 14.57 Recovery

12 Rajasthan Value Added Value Added 341.10 313.73 Tax, 2003 Tax with RIPS Incentive on Exports

ToTAL 1260.01 1009.39



Name period to which the Forum where amount relates (F.y.) Dispute is pending

Income Tax Act, 1961 2003 - 04 ITAT, Mumbai

Income Tax Act, 1961 2011 - 12 Commissioner of Income tax (Appeals) Mumbai

Rajasthan Stamp Act, 1998 2006 - 07 Rajasthan High Court Jodhpur

Rajasthan Value Added 2012 - 13 Tax Board Ajmer Tax, 2003

Electricity Act, 2003 2007 - 08 to Rajasthan High 2013 - 14 Court Jodhpur

Rajasthan Tax into 2007 - 04 to Special Leave entry of Goods into 2014 - 15 Petition with Local Area Act, 1999 Supreme Court

Central Excise Act, 1994 2007 - 08,2008-09 Commissioner of & 2013 - 14 Excise (Appeals)

Central Excise Act, 1994 2007 - 08 to CESTAT - (Delhi) 2012 - 12

Service Tax Service 2010 - 11 to Commissioner 2013-14 (Appeal)

Service Tax 2005 - 06 to CESTAT - Delhi 2011 - 12

Electricity Act, 2003 2009 - 10 to Rajasthan High 2010 - 11 Court, Jodhpur

Rajasthan Value Added 2010 - 11 to C.T.O.Bhilwara Tax, 2003 2012 - 13

c) According to the information and explanations given to us the amounts which were required to be transferred to the Investor Education and Protection Fund in accordance with the relevant provisions of the Companies Act, 1956 (1 of 1956) and rules there under has been transferred to such fund within time.

(viii) The Company does not have any accumulated losses during the year and it has not incurred cash losses in current financial year and in the immediately preceding financial year.

(ix) Based on our audit procedures and the information and explanations given by the management, we are of the opinion that the company has not defaulted in repayment of dues to financial institutions and banks. There are no debenture holders of the company.

(x) According to the information and explanations given to us, the company has not given any guarantee for loans taken by others from banks or financial institutions.

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

(xii) During the course of our examination of the books and records of the Company carried out in accordance with the generally accepted auditing practices in India and according to the information and explanation given to us, we have neither came across any instances of fraud on o by the company noticed or reported during the year, nor we have been informed or such case by the management.

For and on behalf of For and on behalf of

R. Kabra & Co. B.L. Chordia & Co.

Chartered Accountants Chartered Accountants

Registration No.104502W Registration No.000294C



(R.L. Kabra) (B.L. Chordia)

Partner Partner

M. Ship No.016216 M.Ship No.010882

Camp: Bhilwara Place: Bhilwara

Date: May 02, 2015 Date: May 02, 2015


Mar 31, 2014

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

Management''s Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ("the Act") read with the General Circular 15/2013 dated 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 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. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

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

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the Act in the manner so required subject to Note No 31 regarding amounts reflected in the financial statements of jointly controlled entities are unaudited and based on Management certifications and give a true and fair view in conformity with the accounting principles generally accepted in India:

a) In the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2014;

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

Report on Other Legal and Regulatory Requirements

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

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

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

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

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

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

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

Annexure To The AUDITORS'' REPORT

(Referred to in our report of even date)

Annexure referred to in Point 1 of the Auditors'' Report of even date to the members of Sangam (India) Limited for the year ended as on March 31, 2014.

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

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

b. As per the information and explanations given to us, physical verification of fixed assets has been carried out in terms of the phased programme of verification adopted by the company and no material discrepancies were noticed on such verification.

c. In our opinion and according to the information and explanations given to us, during the year the company has not disposed off any substantial parts of Fixed Assets and therefore does not affect the going concern assumption

(ii) a. As per the information and explanation

given to us, the inventories (excluding stock, materials and work in progress, which are in transit & stock lying with third parties) have been physically verified during the year by the management. In our opinion, having regard to the nature and location of stocks, the frequency of the physical verification is reasonable.

b. In our opinion and according to the information and explanations given to us, procedures of physical verification of inventory followed by the management are 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 and no material discrepancies were noticed on verification of inventory.

(iii) a. As per the information and explanation given to us, the company has granted unsecured loans to companies covered in the register maintained under section 301 of the Companies Act, 1956. The number of such parties involved is one and the maximum balance during the year is Rs. 4900 Lacs and the closing balance as on year end is Nil.

b. The rate of interest and other terms and conditions of loan given by the company are prima facie not prejudicial to the interest of the company

c. The receipt of principal amount and interest are on demand basis.

d. In our opinion and as per the information and explanations given to us, the company has not taken unsecured loans from companies, firms or other parties covered in the register maintained under section 301 of the Act. Therefore the clause iii (e), iii (f) & iii (g) are not applicable.

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

(v) (a) In our opinion and according to the information and explanation given to us the particulars of or arrangements referred to in section 301 of the Act have been entered in the register required to be maintained under that section.

(b) As explained to us, transactions made in pursuance of such contracts or arrangements have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

(vi) In our opinion and according to the information and explanation given to us, the company has not accepted deposits from the Shareholders/directors and the directives issued by the Reserve Bank of India and the provisions of sections 58A, 58AA or any other relevant provisions of the Act and the rules framed there under.

(vii) In our opinion, the company has an internal audit system through internal control system, which is carried out by the internal audit department, the scope and coverage of which is commensurate with size & nature of the business of the company.

(viii) The Central Government has prescribed maintenance of the cost records U/S 209(l)(d) of the Companies Act, 1956 in respect to the company''s products. We have broadly reviewed the books of accounts & records maintained by the company in this connection and are of the opinion that prima facie, the prescribed accounts and records have been made & maintained. We have however, not made a detailed examination of the records with a view to determining whether they are accurate or complete.

(ix) a. According to the information and explanations given to us and the records examined by us, the company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident fund, investor education and protection fund, employees'' state insurance, income-tax, sales-tax, wealth- tax, service tax, custom-duty and excise duty, cess and other statutory dues with appropriate authorities wherever applicable. According to the information and explanations given to us, no undisputed arrears of statutory dues were outstanding, as at 31st March 2014 for a period of more than 6 months from the date they became due.

b. According to the record of the company, the dues of sales-tax, income-tax, customs, wealth-tax, excise-duty, service tax which have not been deposited on account of disputes and the forum where the disputes are pending since the financial year ended 31st March 2004 till the financial year ended 31st March 2014 are given here- under:

Disputed Matters with the various forum

(Rs. in Lacs)

Amount (Rs. in Lacs) S. Net of No. Name of the Nature of Deposited Statute the dues Gross

1. Income Tax Act, 1961 Income Tax 21.00 21.00 Act, 1998 Stamp Duty 108.91 88.91

3. Rajasthan Value Value Added Tax Act, 2003 Added Tax 71.74 65.61 4. Electricity Act, Power 2003 Factor 54.28 54.28 Incentive

5. Rajasthan Tax on Entry of Goods Entry Tax 352.21 283.54 into Local Area Act, and Interest 1999

6. Central Excise Act, 1944 Excise Duty 1.39 Nil

7. Central Excise Act, 1944 Excise Duty 15.80 Nil

8. Service Tax Service Tax 12.53 1.79

9. Service Tax Service Tax 30.44 3.93

10. Electricity Act, Fixed 2003 Charges 19.57 14.57 Recovery

(Rs. in Lacs)

Period to which the amount relates Forum S. (Financial where dispute No. Name of the Year) is pending Statute

1. Income Tax Act, 1961 2003-04 Commissioner of Income Tax(Appeals)

2. Rajasthan Stamp Act, 1998 2006-07 Rajasthan High Court, Jodhpur

3. Rajasthan Value Added Tax Act, 2003 2011-12 Tax Board, Ajmer and Dy. Comm. Appeals.

4. Electricity Act, 2003 2007-08 to Rajasthan High 2013-14 Court, Jodhpur

5. Rajasthan Tax on Entry of Goods 2003-04 to Rajasthan High into Local Area Act, 2013-14 Court,Jodhpur 1999 6. Central Excise Act, 1944 2007-08 to Commissioner of 2008-09 Excise (Appeals)

7. Central Excise Act, 1944 2007-08 to CESTAT - Delhi 2011-12

8. Service Tax 2010-11 Commissioner (Appeal)

9. Service Tax 2005-06 to CESTAT - Delhi 2011-12

10. Electricity Act, 2003 2009-10 to Rajasthan High 2010-11 Court, Jodhpur (x) The Company does not have any accumulated losses during the year and it has not incurred cash losses in current financial year and in the immediately preceding financial year.

(xi) Based on our audit procedures and the information and explanations given by the management, we are of the opinion that the company has not defaulted in repayment of dues to financial institutions and banks. There are no debenture holders of the company.

(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) The company is not a chit fund company or nidhi/ mutual benefit fund/society.

(xiv) According to the information and explanations given to us, the company has maintained proper records of the transactions & contracts in respect of investments held by the company with timely entries and they are held in its own name.

(xv) According to the information and explanations given to us, the company has not given any guarantee for loans taken by others from banks or financial institutions.

(xvi) According to the information and explanations given to us, the term loans raised during the year have been applied for the purpose for which they were raised.

(xvii) In our opinion and according to the information and explanation given to us, on an overall examination of the Balance Sheet and cash flow of the company during the year we report that no funds raised on short-term basis have been used for Long Term Investment.

(xviii) The company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act.

(xix) The Company has not issued debentures, so the question of security or charge created does not arise in respect of debentures issued.

(xx) The company has not raised money through public issue during the year.

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

For R. Kabra & Co. For B.L. Chordia & Co.

Chartered Accountants Chartered Accountants (Registration No.104502W) (Registration No.000294C)

(R.L. Kabra) (B.L. Chordia)

Partner Partner M. Ship No.016216 M.Ship No.010882 Camp: Bhilwara Place:Bhilwara Date: April 30, 2014 Date: April 30, 2014


Mar 31, 2013

Report on the Financial Statements

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

Management''s Responsibility for the Financial Statements

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

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. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

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

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the Act in the manner so required subject to Note No 31 regarding amounts reflected in the financial statements of jointly controlled entities are unaudited and based on Management certifications and give a true and fair view in conformity with the accounting principles generally accepted in India:

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

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

Report on Other Legal and Regulatory Requirements

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

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

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

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

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

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

e) On the basis of written representations received from the directors as on March 31, 2013, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2013, from being appointed as a director in terms of clause (g) of sub-section (1) of section 2 74 of the Companies Act, 1956.

(Referred to in our report of even date)

Annexure referred to in Point 1 of the Auditors'' Report of even date to the members of Sangam (India) Limited for the year ended as on March 31, 2013.

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

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

b. As per the information and explanations given to us, physical verification of fixed assets has been carried out in terms of the phased programme of verification adopted by the company and no material discrepancies were noticed on such verification.

c. In our opinion and according to the information and explanations given to us, during the year the company has not disposed off any substantial parts of Fixed Assets and therefore does not affect the going concern assumption

(ii) a. As per the information and explanation given to us, the inventories (excluding stock, materials and work in progress, which are in transit & stock lying with third parties) have been physically verified during the year by the management. In our opinion, having regard to the nature and location of stocks, the frequency of the physical verification is reasonable.

b. In our opinion and according to the information and explanations given to us, procedures of physical verification of inventory followed by the management are 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 and no material discrepancies were noticed on verification of inventory.

(iii) a. As per the information and explanation given to us, the company has granted unsecured loans to companies covered in the register maintained under section 301 of the Companies Act, 1956. The number of such parties involved are one and the maximum balance during the year is Rs. 4,530 lacs and the closing balance as on year end is Rs. 4,530 lacs.

b. The rate of interest and other terms and conditions of loan given by the company are prima facie not prejudicial to the interest of the company

c. The receipt of principal amount and interest are on demand basis.

d. In our opinion and as per the information and explanations given to us, the company has taken unsecured loans from companies, firms or other parties covered in the register maintained under section 301 of the Act. There is one such party and the maximum balance outstanding during the year is Rs. 2,000 lacs & the closing balance as on year end is currently debit balance as mentioned in Point No. iii a. The clause iii f & iii g are not applicable, since the payment has been done.

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

(v) (a) In our opinion and according to the information and explanation given to us the particulars of or arrangements referred to in section 301 of the Act have been entered in the register required to be maintained under that section.

(b) As explained to us, transactions made in pursuance of such contracts or arrangements have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

(vi) In our opinion and according to the information and explanation given to us, the company has not accepted deposits from the Shareholders/directors and the directives issued by the Reserve Bank of India and the provisions of sections 58A, 58AA or any other relevant provisions of the Act and the rules framed there under.

(vii) In our opinion, the company has an internal audit system through internal control system, which is carried out by the internal audit department, the scope and coverage of which is commensurate with size & nature of the business of the company.

(viii) The Central Government has prescribed maintenance of the cost records U/S 209(1)(d) of the Companies Act, 1956 in respect to the company''s products. We have broadly reviewed the books of accounts & records maintained by the company in this connection and are of the opinion that prima facie, the prescribed accounts and records have been made & maintained. We have however, not made a detailed examination of the records with a view to determining whether they are accurate or complete.

(ix) a. According to the information and explanations given to us and the records examined by us, the company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident fund, investor education and protection fund, employees'' state insurance, income-tax, sales- tax, wealth-tax, service tax, custom-duty and excise duty, cess and other statutory dues with appropriate authorities wherever applicable. According to the information and explanations given to us, no undisputed arrears of statutory dues were outstanding, as at 31st March 2013 for a period of more than 6 months from the date they became due.

(x) The Company does not have any accumulated losses during the year and it has not incurred cash losses in current financial year and in the immediately preceding financial year.

(xi) Based on our audit procedures and the information and explanations given by the management, we are of the opinion that the company has not defaulted in repayment of dues to financial institutions and banks. There are no debenture holders of the company.

(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) The company is not a chit fund company or nidhi/ mutual benefit fund/society.

(xiv) According to the information and explanations given to us, the company has maintained proper records of the transactions & contracts in respect of investments held by the company with timely entries and they are held in its own name.

(xv) According to the information and explanations given to us, the company has not given any guarantee for loans taken by others from banks or financial institutions.

(xvi) According to the information and explanations given to us, the term loans raised during the year have been applied for the purpose for which they were raised.

(xvii) In our opinion and according to the information and explanation given to us, on an overall examination of the Balance Sheet and cash flow of the company during the year we report that no funds raised on short-term basis have been used for Long Term Investment.

(xviii) The company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act.

(xix) The Company has not issued debentures, so the question of security or charge created does not arise in respect of debentures issued.

(xx) The company has not raised money through public issue during the year.

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

For R. Kabra & Co. For B.L. Chordia & Co.

Chartered Accountants Chartered Accountants

(Registration No.104502W) (Registration No.000294C)

(R.L. Kabra) (B.L. Chordia)

Partner Partner

M. Ship No.016216 M.Ship No.010882

Camp: Bhilwara Place: Bhilwara

Date: April 25, 2013 Date: April 25, 2013


Mar 31, 2012

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

2) We conducted our audit in accordance with the auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the fi nancial 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 the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3) In accordance with the provisions of Section 227 of the Companies Act, 1956, we report that; as required by the Companies (Auditor's Report) Order, 2003 issued by the Central Government in terms of section 227 (4A) of The Companies Act, 1956 and on the basis of such checks as considered appropriate and in terms of the information and explanations given to us, we give in the annexure, a statement on the matters specified in paragraph 4 & 5 of the said Order to the extent applicable to the company.

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

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

b. In our opinion, proper books of accounts, as required by law, have been kept by the company, so far as appears from our examinations 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 Balance Sheet, Statement of Profit and Loss and the Cash Flow statement dealt with by this report 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 representation received from the directors as on 31 March, 2012 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31 March, 2012 from being appointed as a director in terms of clause (g) of sub section (1) of section 274 of the Companies Act, 1956.

f. In our opinion, and to the best of our information and according to the explanations given to us, the said accounts read together with the notes thereon subject to note no. 31 regarding amounts reflected in the financial statements of jointly controlled entities are unaudited and based on Management certifications 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 principals generally accepted in India:

i) In the case of Balance Sheet, of the state of affairs of the company as at 31 March, 2012; ii) In the case of Statement of Profit and Loss, of the Profit for the year ended on that date; and

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

Annexure referred to in paragraph 3 of the Auditors' Report of even date to the members of Sangam (India) Limited for the year ended as on March 31, 2012.

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

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

b. As per the information and explanations given to us, physical verification of fixed assets has been carried out in terms of the phased programme of verification adopted by the company and no material discrepancies were noticed on such verification.

c. During the year the company has not disposed off any substantial parts of Fixed Assets.

(ii) a. As per the information and explanation given to us, the inventories (excluding stock, materials and work in progress, which are in transit & stock lying with third parties) have been physically verifi ed during the year by the management. In our opinion, having regard to the nature and location of stocks, the frequency of the physical verification is reasonable.

b. In our opinion and according to the information and explanations given to us, procedures of physical verification of inventory followed by the management are 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 and no material discrepancies were noticed on verification of inventory.

(iii) a. In our opinion and according to the information and explanation given to us, the company has not granted unsecured loans to companies, fi rms or other parties covered in the register maintained under section 301 of the Companies Act, 1956.

b. The clause (iii) (b), (c), (d) of the order is not applicable to the company, as the company has not given any unsecured loan.

c. As per the information and explanations given to us, the company has taken unsecured loans from companies, fi rms or other parties covered in the register maintained under section 301 of the Act, the terms of which are not prima facie prejudicial to the interests of the company. There is one such party and the outstanding amount at the end of the year is Rs. 2000 lacs (maximum outstanding during the year was Rs. 2000 lacs ), which is payable on demand.

d. There are no interest free loans taken by the company.

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

(v) (a) In our opinion and according to the information and explanation given to us the particulars of or arrangements referred to in section 301 of the Act have been entered in the register required to be maintained under that section.

(b) As explained to us, transactions made in pursuance of such contracts or arrangements have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

(vi) In our opinion and according to the information and explanation given to us, the company has not accepted deposits from the Shareholders/directors and the directives issued by the Reserve Bank of India and the provisions of sections 58A, 58AA or any other relevant provisions of the Act and the rules framed there under.

(vii) In our opinion, the company has an internal audit system through internal control system, which is carried out by the internal audit department, the scope and coverage of which is commensurate with size & nature of the business of the company.

(viii) The Central Government has prescribed maintenance of the cost records U/S 209(1)(d) of the Companies Act, 1956 in respect to the company's products. We have broadly reviewed the books of accounts & records maintained by the company in this connection and are of the opinion that prima facie, the prescribed accounts and records have been made & maintained. We have however, not made a detailed examination of the records with a view to determining whether they are accurate or complete.

(ix) a. According to the information and explanations given to us and the records examined by us, the company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident fund, investor education and protection fund, employees' state insurance, income-tax, sales-tax, wealth-tax, service tax, custom-duty and excise duty, cess and other statutory dues with appropriate authorities wherever applicable. According to the information and explanations given to us, no undisputed arrears of statutory dues were outstanding, as at 31st March 2012 for a period of more than 6 months from the date they became due.

b. According to the record of the company, the dues of sales-tax, income-tax, customs, wealth-tax, excise-duty, service tax which have not been deposited on account of disputes and the forum where the dispute is pending are given here-under:

Disputed Matters with the various forum

Nature Amount Forum where S.No. Name of the Statute of the dues (Rs. in Lacs) dispute is pending

Commissioner of Income Tax 1. Income Tax Act, 1961 Income tax 21.00 (Appeals)

Rajasthan Tax on Entry of Goods Entry Tax and 2. 210.24 Rajasthan High Court, Jodhpur into Local Area Act, 1999 Interest

(x) The Company does not have any accumulated losses during the year and it has not incurred cash losses in current financial year and in the immediately preceding financial year.

(xi) Based on our audit procedures and the information and explanations given by the management, we are of the opinion that the company has not defaulted in repayment of dues to financial institutions and banks. There are no debenture holders of the company.

(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) The company is not a chit fund company or nidhi/ mutual benefit fund/society

(xiv) According to the information and explanations given to us, the company has maintained proper records of the transactions & contracts in respect of investments held by the company with timely entries and they are held in its own name.

(xv) According to the information and explanations given to us, the term loans raised during the year have been applied for the purpose for which they were raised.

(xvi) In our opinion and according to the information and explanation given to us, on an overall examination of the Balance Sheet and cash fl ow of the company during the year we report that no funds raised on short-term basis have been used for Long Term Investment.

(xvii) The company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act.

(xviii) The Company has not issued debentures, so the question of security or charge created does not arise in respect of debentures issued.

(xix) The company has not raised money through public issue during the year.

(xx) During the course of our examination of the books and records of the Company carried out in accordance with the generally accepted auditing practices in India and according to the information and explanation given to us, we have neither came across any instances of fraud on or by the company noticed or reported during the year, nor we have been informed or such case by the management.

For R. Kabra & Co. For B.L. Chordia & Co.

Chartered Accountants Chartered Accountants

(Registration No. 104502W) (Registration No. 000294C)

(R.L. Kabra) (B.L. Chordia)

Partner Partner

M.Ship No. 016216 M.Ship No. 010882

Camp : Bhilwara Place : Bhilwara

Date : May 18,2012 Date: May 18,2012


Mar 31, 2011

1) We have audited the attached Balance Sheet of SANGAM (INDIA) LIMITED as at 31st March.2011, the Profit & Loss Account and also the Cash Flow statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opin- ion on these financial statements based on our audit.

2) We conducted our audit in accordance with the auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstate- ment. An audit includes examining, on a test basis, evidence sup- porting the amounts 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 be- lieve that our audit provides a reasonable basis for our opinion.

3) In accordance with the provisions of Section 227 of the Compa- nies Act, 1956, we report that; as required by the Companies (Au- ditor's Report) Order, 2003 issued by the Central Government in terms of section 227 (4A) of The Companies Act, 1956 and on the basis of such checks as considered appropriate and in terms of the information and explanations given to us, we give in the an- nexure, a statement on the matters specified in paragraph 4 & 5 of the said Order to the extent applicable to the company.

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

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

b. In our opinion, proper books of accounts, as required by law, have been kept by the company, so far as appears from our examina- tions of those books;

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

d. In our opinion the Balance Sheet, Profit and Loss Account and the Cash Flow statement dealt with by this report comply with the ac- counting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956.

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

f. In our opinion, and to the best of our information and according to the explanations given to us, the said accounts read together with the notes thereon subject to point no 12 III regarding amounts reflected in the financial statements of the jointly controlled entities are un-audited and based on management certifications 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 principals generally accepted in India:

i) In the case of Balance Sheet, of the state of affairs of the com- pany as at 31 March, 2011;

ii) In the case of Profit and 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 TO THE AUDITORS' REPORTS (Referred to in our report of even date)

Annexure referred to in paragraph 3 of the Auditors' Report of even date to the members of Sangam (India) Limited for the year ended as on March 31, 2011.

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

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

b. As per the information and explanations given to us, physical verification of fixed assets has been carried out in terms of the phased programme of verification adopted by the com- pany and no material discrepancies were noticed on such verification.

c. During the year the company has not disposed off any sub- stantial parts of fixed assets.

(ii) a. As per the information and explanation given to us, the in- ventories (excluding stock, materials and work in progress, which are in transit) have been physically verified during the year by the management. In our opinion, having regard to the nature and location of stocks, the frequency of the physical verification is reasonable.

b. In our opinion and according to the information and expla- nations given to us, procedures of physical verification of inventory followed by the management are 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 explana- tions given to us, the Company is maintaining proper records of inventory and no material discrepancies were noticed on verification of inventory.

(iii) a. In our opinion and according to the information and explana- tion given to us, the company has not granted unsecured loans to companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956.

b. The clause (iii) (b), (c), (d) of the order is not applicable to the company, as the company has not given any unsecured loan.

c. As per the information and explanations given to us, the com- pany has taken unsecured loans from companies, firms or other parties covered in the register maintained under section 301 of the Act, the terms of which are not prima facie preju- dicial to the interests of the company. The number of parties are two and the outstanding amount at the end of the year is Rs. 2000.00 lacs (maximum outstanding during the year was Rs. 2180.60 lacs), which is payable on demand.

d. The interest free loans taken are not prejudicial to the inter- ests of the company.

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

(v) (a) In our opinion and according to the information and explana- tion given to us the particulars of or arrangements referred to in section 301 of the Act have been entered in the register required to be maintained under that section.

(b) As explained to us, transactions made in pursuance of such contracts or arrangements have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

(vi) In our opinion and according to the information and explanation given to us, the company has not accepted deposits from the Shareholders/directors and the directives issued by the Reserve Bank of India and the provisions of sections 58A, 58AA or any other relevant provisions of the Act and the rules framed there under.

(vii) In our opinion, the company has an internal audit system through internal control system, which is carried out by the internal audit department, the scope and coverage of which is commensurate with size & nature of the business of the company.

(viii) The Central Government has prescribed maintenance of the cost records U/S 209(1)(d) of the Companies Act, 1956 in respect to the company's products. We have broadly reviewed the books of accounts & records maintained by the company in this connection and are of the opinion that prima facie, the prescribed accounts and records have been made & maintained. We have however, not made a detailed examination of the records with a view to determining whether they are accurate or complete.

(ix) a. According to the information and explanations given to us and the records examined by us, the company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident fund, investor education and protection fund, employees' state insurance, income-tax, sales-tax, wealth-tax, service tax, custom-duty and excise duty, cess and other statutory dues with appropriate authori- ties wherever applicable. According to the information and explanations given to us, no undisputed arrears of statutory dues were outstanding, as at 31st March 2011 for a period of more than 6 months from the date they became due.

b. According to the record of the company, the dues of sales- tax, income-tax, customs, wealth-tax, excise-duty, service tax which have not been deposited on account of disputes and the forum where the dispute is pending are given here-under:

DISPUTED MATTERS WITH THE FORUM

Name of the Statute Nature of Amount Forum where the dues Rs. in Lacs) dispute is pending

Income Tax Act, Income 21.00 Commissioner of 1961 tax Income Tax (Appeals)

(x) The Company does not have any accumulated losses during the year and it has not incurred cash losses in current financial year and in the immediately preceding financial year.

(xi) Based on our audit procedures and the information and explana- tions given by the management, we are of the opinion that the company has not defaulted in repayment of dues to financial in- stitutions and banks. There are no debenture holders of the com- pany.

(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) The company is not a chit fund company or nidhi/ mutual benefit fund/society

(xiv) According to the information and explanations given to us, the company has maintained proper records of the transactions & contracts in respect of investments held by the company with timely entries and they are held in its own name.

(xv) According to the information and explanations given to us, the term loans raised during the year have been applied for the pur- pose for which they were raised.

(xvi) In our opinion and according to the information and explanation given to us, on an overall examination of the Balance Sheet and cash flow of the company during the year we report that no funds raised on short-term basis have been used for Long Term Invest- ment.

(xvii) The company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act.

(xviii) The Company has not issued debentures, so the question of se- curity or charge created does not arise in respect of debentures issued.

(xix) The company has not raised money through public issue during the year.

(xx) During the course of our examination of the books and records of the Company carried out in accordance with the generally accepted auditing practices in India and according to the informa- tion and explanation given to us, we have neither came across any instances of fraud on or by the company noticed or reported during the year, nor we have been informed or such case by the management.

For R. Kabra & Co. For B. L. Chordia & Co.

Chartered Accountants Chartered Accountants

(Reg. No.104502W) (Reg. No.000294C)

(R.L. Kabra) (B. L Chordia)

Partner Partner

M.Ship No. 016216 M.Ship No. 010882

Camp: Bhilwara Place: Bhilwara

Date: April 27, 2011 Date: April 27, 2011














Mar 31, 2010

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

2) We conducted our audit in accordance with the auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on 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 the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3) In accordance with the provisions of Section 227 of the Companies Act, 1 956, we report that; as required by the Companies (Auditors Report) Order, 2003 issued by the Central Government in terms of section 227 (4A) of The Companies Act, 1956 and on the basis of such checks as considered appropriate and in terms of the information and explanations given to us, we give in the annexure, a statement on the matters specified in paragraph 4 & 5 of the said Order to the extent applicable to the company.

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

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

b. In our opinion, proper books of accounts, as required by law, have been kept by the company, so far as appears from our examinations of those books;

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

d. In our opinion the Balance Sheet, Profit and Loss Account and the Cash Flow statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1 956.

e. On the basis of written representation received from the directors as on 31 March, 2010 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31 March, 2010 from being appointed as a director in terms of clause (g) of sub section (1) of section 274 of the Companies Act, 1 956.

f. In our opinion, and to the best of our information and according to the explanations given to us, the said accounts read together with the notes thereon give the information required by the Companies Act, 1 956 in the manner so required and give a true and fair view in conformity with the accounting principals generally accepted in India:

i) In the case of Balance Sheet, of the state of affairs of the company as at 31 March, 2010;

ii) In the case of Profit and 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 TO THE AUDITORS REPORT (Referred to in our report of even date)

Annexure referred to in paragraph 3 of the Auditors Report of even date to the members of Sangam (India) Limited for the year ended as on March 31, 2010.

On the basis of such checks as considered appropriate and in terms of the information and explanations given to us, we state as under: (i) a. The Company has maintained proper records showing full particulars, including quantitative details and situations of fixed assets.

b. As per the information and explanations given to us, physical verification of fixed assets has been carried out in terms of the phased programme of verification adopted by the company and no material discrepancies were noticed on such verification.

c. During the year the company has not disposed off any substantial parts of fixed assets.

(ii) a. As per the information and explanation given to us, the inventories (excluding stock, materials and work in progress, which are in transit) have been physically verified during the year by the management. In our opinion, having regard to the nature and location of stocks, the frequency of the physical verification is reasonable.

b. In our opinion and according to the information and explanations given to us, procedures of physical verification of inventory followed by the management are 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 Com pany is maintaining proper records of inventory and no material discrepancies were noticed on verification of inventory.

(iii) a. In our opinion and according to the information and explanation given to us, the company has not granted unsecured loans to companies, firms or other parties covered, in the register maintained under section 301 of the Companies Act, 1 956.

b. Tne clause (iii) (b), (c), (d) of the order is not applicable to the company, as the company has not given any unsecured loan.

e. As per the information and explanations given to us, the company has taken unsecured loans from companies, firms or other parties covered in the register maintained under section 301 of the Act, the terms of which are not prima facie prejudicial to the interests of the company. The number of parties are four and the outstanding amount at the end of the year is Rs.21 80.60 lacs (maximum outstanding during the year was Rs. 4835.85 lacs), which is payable on demand.

f. The interest free loans taken are not prejudicial to the interests of the company.

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

(v) (a) In our opinion and according to the information and explanation given to us the particulars of or arrangements referred to in section 301 of the Act have been entered in the register required to be maintained under that section.

(b) As explained to us, transactions made in pursuance of such contracts or arrangements have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

(vi) In our opinion and according to the information and explanation given to us, the company has not accepted deposits from the Shareholders/directors and the directives issued by the Reserve Bank of India and the provisions of sections 58A, 58AA or any other relevant provisions of the Act and the rules framed there under.

(vii) In our opinion, the company has an internal audit system through internal control system, which is carried out by the internal audit department, the scope and coverage of which is commensurate with size & nature of the business of the company.

(viii) The Central Government has prescribed maintenance of the cost records U/S 209(1 )(d) of the Companies Act, 1956 in respect to the companys products. We have broadly reviewed the books of accounts & records maintained by the company in this connection and are of the opinion that prima facie, the prescribed accounts and records have been made & maintained. We have however, not made a detailed examination of the records with a view to determining whether they are accurate or complete.

(ix) a. According to the information and explanations given to us and the records examined by us, the company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident fund, investor education and protection fund, employees state insurance, income-tax, sales- tax, wealth-tax, service tax, custom-duty and excise duty, cess and other statutory dues with appropriate authorities wherever applicable. According to the information and explanations given to us, no undisputed arrears of statutory dues were outstanding, as at 31st March, 2010 for a period of more than 6 months from the date they became due. b. According to the record of the company, the dues of sales-tax, income-tax, customs, wealth-tax, excise-duty, service tax which have not been deposited on account of disputes and the forum where the dispute is pending are given here-under:

Disputed Matters with the various forum

S.No. Name of the Nature of the Amount Forum where

Statute dues (Rs. in dispute is

Lacs) pending

1. Central Excise Excise Duty 3.89 CESTAT

Act, 1 944

2. Income Tax Act, Income tax 21.00 Commissioner

1961 of Income Tax

(Appeals)

(x) The Company does not have any accumulated losses during the year and it has not incurred cash losses in current financial year and in the immediately preceding financial year.

(xi) Based on our audit procedures and the information and explanations given by the management, we are of the opinion that the company has not defaulted in repayment of dues to financial institutions and banks. There are no debenture holders of the company.

(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) The company is not a chit fund company or nidhi/ mutual benefit fund/society.

(xiv) According to the information and explanations given to us, the company has maintained proper records of the transactions & contracts in respect of investments held by the company with timely entries and they are held in its own name.

(xv) According to the information and explanations given to us, the term loans raised during the year have been applied for the purpose for which they were raised.

(xvi) In our opinion and according to the information and explanation given to us, on an overall examination of the Balance Sheet and cash flow of the company during the year we report that no funds raised on short-term basis have been used for Long Term Investment.

(xvii) The company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act.

(xviii) The Company has not issued debentures, so the question of security or charge created does not arise in respect of debentures issued.

(xix) The company has not raised money through public issue during the year.

(xx) During the course of our examination of the books and records of the Company carried out in accordance with the generally accepted auditing practices in India and according to the information and explanation given to us, we have neither came across any instances of fraud on or by the company noticed or reported during the year, nor we have been informed or such case by the management.



For R. Kobra & Co. For B. L. Chordia & Co.

Chartered Accountants Chartered Accountants

(Registration No.l 04502W) (Registration No.000294C)



(R.L Kabra) (B. L. Chordia)

Partner Partner

M.Ship No. 01621 6 M.Ship No. 010882

Camp: Bhilwara Place: Bhilwara

Date: May 27, 2010 Date : May 27, 201 0

 
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