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Auditor Report of Sarup Industries Ltd.

Mar 31, 2015

We have audited the accompanying financial statements of SARUP INDUSTRIESLTD ("the company"), which comprise the Balance Sheet as at 31 March 2015, the Statement of Profit and Loss, the Cash Flow Statement for the year ended, and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's 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. 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 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 Companies (Auditors Report) Order, 2015

As required by the Companies (Auditors Report) Order, 2015 issued by the central government in terms of Sub-section (11) of section 143 of the Companies Act 2013.We enclosed in annexure statement(s) on the matters specified in paragraphs 3 ad 4.

Report on other Legal and Regulatory Requirements 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) There is nothing to disclose which is having adverse effect on the functioning of the company.

f) 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.

g) 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 does not have any pending litigations which would impact its financial position]

II. The Company did 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 Education and Protection Fund by the Company

The Annexure referred to in our report to the members of SARUP INDUSTRIES LIMITED for the year ended 31st March, 2015.

On the basis of the information and explanation given to us during the course of our audit, we report that:

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

(b) As explained to us, fixed assets have been physically verified by the management at reasonable intervals; no material discrepancies were noticed on such verification. In our opinion and according to the information and explanations given to us, no fixed asset has been disposed of during the year and therefore does not affect the going concern assumption.

2. (a) As explained to us, inventories have been physically verified during the year by the management at reasonable intervals.

(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) In our opinion and on the basis of our examination of the records, the Company is generally maintaining proper records of its inventories. No material discrepancy was noticed on physical verification of stocks by the management as compared to book records.

3. According to the information and explanations given to us and on the basis of our examination of the books of account, the Company has not granted any loans, secured or unsecured, to companies, firms or other parties listed in the register maintained under Section 189 of the Companies Act. Thus sub clauses (a) & (b) are not applicable to the company.

4. In our opinion and according to the information and explanations given to us, there is generally an adequate internal control procedure commensurate with the size of the company and the nature of its business, for the purchase of inventories & fixed assets and payment for expenses & for sale of goods. During the course of our audit, no major instance of continuing failure to correct any weaknesses in the internal controls has been noticed.

5. In our opinion and according to the information and explanations given to us company hasn't accepted any deposits, from the directives issued by the Reserve Bank of India and as per the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act

6. As per information & explanation given by the management, maintenance of cost records are not applicable to the company.

7. (a) According to the records of the company, undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees' State Insurance, Income-tax, Sales-tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, cess to the extent applicable and any other statutory dues have generally been regularly deposited with the appropriate authorities. According to the information and explanations given to us there were no outstanding statutory dues as on 31st March, 2015 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 is no amounts payable in respect of income tax, wealth tax, service tax, sales tax, customs duty and excise duty which have not been deposited on account of any disputes.

(c) In our opinion company has transferred the amount which is required to be transferred to investor education and protection fund in accordance with the relevant provisions of the Companies Act, 1956 (1 of 1956) and rules made there under within time.

8. The Company does not have any accumulated loss and has not incurred cash loss during the financial year covered by our audit and in the immediately preceding financial year.

9. Based on our audit procedures and on the information and explanations given by the management, we are of the opinion that, the Company has not defaulted in repayment of dues to a financial institution, bank or debenture holders.

10. According to the information and explanations given to us, the Company has not given any guarantees for loan taken by others from a bank or financial institution.

11. In our opinion Terms Loans were applied for the purpose for which loans were obtained

12. Based on the audit procedures performed and the information and explanations given to us, we report that no fraud on or by the Company has been noticed or reported during the year, nor have we been informed of such case by the management.

For Y. K. SUD & CO Chartered Accountants

Signature (Yoginder Kumar Sud) Place: Jalandhar Prop. Date: 29.05.2015 (M. No: 16875)




Mar 31, 2014

We have audited the accompanying financial statements of SARUP INDUSTRIES LIMTED(the Company), which comprise the Balance Sheet AS AT 31st MARCH , 2014 , the statement of Profit and Loss and Cash Flow for year ended , and a summary of significant accounting policies and other explanatory information.

MANAGEMENT''S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

The Company''s Management is responsible for the preparation of these financial statement 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 notified under the Companies Act, 1956(the Act) read with General Circular 15/2013 dated 13 the Sept, 2013 of the Ministry of Corporate Affairs in respect of section 133 of Companies Act, 2013 and in accordance with the accounting principles generally accepted in India. 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 statements, 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 Standard 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 disclosure in the financial statements. The procedure selected depends upon the Auditor''s judgment, including the assessment of the risk of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company''s internal control. An audit also includes evaluating the appropriateness of accounting policies used and 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 we have obtained is sufficient and appropriate to provide basis for our audit opinion.

OPINION

In our opinion and to the best of our information and according to explanations given to us, the aforesaid accounts, read together with significant accounting policies and notes forming part of accounts, 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 case of balance sheet, of the state of the affairs of the company as at 31 March 2014.

(ii) In case of profit and loss Accounts, of the loss company for the year ended on the date.

(iii) In the case of cash flow statement of the cash flow 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 issued by the central government of India in terms of section 227 (4A) of the companies act 1956. We enclosed in Annexure statement on the matters specified in paragraphs 4&5 of the said order.

2. Further to our comments in the annexure refers to in paragraphs in 1 &2 above, we state that:

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

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

(c) The Balance sheet , profit & loss accounts and cash flow statement dealt with by this report are in agreement with the books of accounts ;

(d) In our opinion , the balance sheet and profit &loss accounts read together with notes thereon and cash flow statement of company comply with the accounting standards as referred in sub-section (3C) of sections 211 of the companies Act ,1956, to the extent applicable;

(e) As per information and explanations given to us ,none of the directors of the company are disqualified from being appointed as a directors under clause (g) of sub -section (1) of section 274 of the companies Act, 1956;

Annexure refers to in paragraph 3 of the report of even date of the auditors to the members M/s Sarup Industries Limited

1. (a) The company has maintained proper record showing full particulars, including quantitative details situation of fixed assets.

(b) The fixed assets were physically verified by the management at reasonable interval, the discrepancies noticed on physical verification were not material and the same has been properly dealt with in the books of account.

(c) According to information and explanation given to us, the company has not disposed off substantial parts of its fixed assets during the year and the going concern status of the company is not affected.

2. (a) Stock of finished goods, stores spare parts and raw materials have been physically

verified by the managements at reasonable intervals.

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

(c) in our opinion and according to the information and explanation given to us the company is maintaining proper record of inventory . As explained to us there were no material discrepancies have been noticed on physical verification of stocks as compared to book record.

3. (a) The company has not granted any loans , secured or unsecured to companies, firm or other parties listed in the register maintained under section 301 of the act 1956. Therefore the provisions of clause 4(iii)(b)(c) and (d) of the order are not applicable to the company.

(b) The company has not taken any loans, secured or unsecured from companies, firm or other parties listed in the register maintained under section 301 of the act 1956. Therefore the provisions of clause 4(iii)(f) and (g) of the order are not applicable to the company.

4. There are adequate internal control procedures commensurate with the size of company and nature of its business for the purchase of inventory, fixed Assets and sale of goods. During the course of our audit, we have not observed any failure to correct major weakness in internal control procedures.

5. (a) The transactions of purchase of goods and material and sale of goods, material and services made in pursuance of contracts or arrangements entered in the register maintained under the section 301 of Companies Act - 1956.

(b) in our opinion and according to the information and explanations given to us the transactions in pursuance of such contracts or arrangement have been made at prices which are reasonable having regard to prevalent market prices at the relevant time.

6. The company has not accepted ant deposit from public. Thus provisions of section 58A &58AA of the companies Act 1956 are not applicable. No order has been passed by company Law Board.

7. The company has an internal audit system commensurate with the size and nature of its business.

8. The books of accounts maintained pursuant to the rule made by the Central Govt. for the maintenance of cost records under section 209 (i) (d) of the companies Act 1956 have broadly been reviewed by us and prima facie, the prescribed accounts and record have been made and maintained .

9. (a) The Company is regular in depositing provident Fund dues and EMPLOYEES State Insurance dues with the appropriate authorities. No undisputed amounts payable in respect of Investor Education Protection Fund Income Tax, Sale Tax , Custom Duty and Excise Duty were outstanding as 31 March 2014 for a period of more than six months from the date they become payable .

(b) There are no dues pending in regard to Sale Tax/ Custom Tax/ Wealth Tax / Income Tax / Excise Duty / Cess Duty, on account of any disputes with respective department.

10. The company has no accumulated losses and has not incurred any cash loss in the financial Year under audit and in the immediately preceding financial Year.

11. In our opinion and according to the information and explanation given to us , the company has not defaulted in repayment of dues to bank, financial institution, and banks.

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

13. In our opinion, the company is not chit fund or a nidhi / mutual benefit fund s /Society, therefore the provisions of clause 4 (Xiii) of the companies (Auditor''s Report) order, 2003 are not applicable to the Company.

14. Based on our examination of record and evaluation of related internal control we are of the opinion that proper records have been made there in respect of companies'' activities relating to trading /dealing in shares, securities and other investments and these have been held by the company in its own name.

15. The Company has not given a guarantee for loans taken by another company from Financial Institution.

16. In our opinion and according to the information and explanation given to us, the term loans have been applied for the purpose for which they were raised.

17. In our opinion and according to the information and explanation given to us, and on an overall examination of the balance sheet of the company, we report that no funds raised on short term basis have been used for long term investment. Further, no long term funds have been used for short term investment.

18. According to the information and explanation given to us the company has not made any preferential allotment of shares during the year to parties and companies covered in the register maintained under section 301 of Companies Act 1956.

19. According to the information and explanation given to us the company has not issued any secured debentures during the year.

20. The Company has not raised any money by way of a public issue during the year , Therefore the provisions of clause 4(xx) of the companies (Auditor''s Report ) order 2003 are not applicable to the company.

21. According to the information and explanations given to us no fraud on or by the company has been noticed or reported during the period covered by our audit.

For Y.K. Sud & Co . Chartered Accountant

PLACE: JALANDHAR Date: 29th May .2014


Mar 31, 2013

1. We have audited the attached balance sheet of SARUP INDUSTRIES LIMTED , AS AT 31st March , 2013 and also the Profit and Loss Accounts for year ended on that date annexed thereto . These financial statements are the responsibility of the company management. Our responsibility is to express an opinion on these financial statements based on our audit.

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

3. As required by the Companies (Auditor''s Report) order, 2003 issued by the central government of India in terms of section 227 (4A) of the companies act 1956. We enclosed in annexure statement on the matters specified in paragraphs 4&5 of the said order.

4. Further to our comments in the annexure refers to in paragraphs in 1 &2 above, we state that:

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

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

(c) The Balance sheet, profit & loss accounts and cash flow statement dealt with by this report are in agreement with the books of accounts ;

(d) In our opinion , the balance sheet and profit &loss accounts read together with notes thereon and cash flow statement of company comply with the accounting standards as referred in sub-section (3C) of sections 211 of the companies Act ,1956, to the extent applicable;

(e) As per information and explanations given to us ,none of the directors of the company are disqualified from being appointed as a directors under 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 explanations given to us, the said accounts, read together with significant accounting policies and notes forming part of accounts, 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 case of balance sheet, of the state of the affairs of the company as at 31st

March 2013. ii. In case of profit and loss Accounts, of the loss company for the year ended on the date. iii. In the case of cash flow statement of the cash flow for the year ended on that date.

Annexure refers to in paragraph 3 of the report of even date of the auditors to the members M/s Sarup Industries Limited.

1) (a) The company has maintained proper record showing full particulars, including quantitative details situation of fixed assets.

(b) The fixed assets were physically verified by the management at reasonable interval, the discrepancies noticed on physical verification were not material and the same has been properly dealt with in the books of account.

(c) According to information and explanation given to us, the company has not disposed off substantial parts of its fixed assets during the year and the going concern status of the company is not affected.

2) (a) Stock of finished goods, stores spare parts and raw materials have been physically verified by the managements at reasonable intervals.

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

(c) in our opinion and according to the information and explanation given to us the company is maintaining proper record of inventory . As explained to us there were no material discrepancies have been noticed on physical verification of stocks as compared to book record.

3) (a) The company has not granted any loans, secured or unsecured to companies, firm or other parties listed in the register maintained under section 301 of the act 1956. Therefore the provisions of clause 4(iii)(b)(c) and (d) of the order are not applicable to the company.

(b) The company has not taken any loans, secured or unsecured from companies, firm or Other parties listed in the register maintained under section 301 of the act 1956. Therefore the provisions of clause 4(iii)(f) and (g) of the order are not applicable to the company.

4) There are adequate internal control procedures commensurate with the size of company and nature of its business for the purchase of inventory, fixed Assets and sale of goods. During the course of our audit, we have not observed any failure to correct major weakness in internal control procedures.

5) (a) The transactions of purchase of goods and material and sale of goods, material and services made in pursuance of contracts or arrangements entered in the register maintained under the section 301 of Companies Act - 1956.

(b) in our opinion and according to the information and explanations given to us the transactions in pursuance of such contracts or arrangement have been made at prices which are reasonable having regard to prevalent market prices at the relevant time.

6) The company has not accepted ant deposit from public. Thus provisions of section 58A &58AA of the companies Act 1956 are not applicable. No order has been passed by company Law Board.

7) The company has an internal audit system commensurate with the size and nature of its business.

8) The books of accounts maintained pursuant to the rule made by the Central Govt, for the maintenance of cost records under section 209 (i) (d) of the companies Act 1956 have broadly been reviewed by us and prima facie, the prescribed accounts and record have been made and maintained .

9) (a) The Company is regular in depositing provident Fund dues and EMPLOYEES State Insurance dues with the appropriate authorities. No undisputed amounts payable in respect of Investor Education Protection Fund Income Tax, Sale Tax , Custom Duty and Excise Duty were outstanding as 31st March 2013 for a period of more than six months from the date they become payable .

(b) There are no dues pending in regard to Sale Tax/ Custom Tax/ Wealth Tax / Income Tax / Excise Duty / Cess Duty, on account of any disputes with respective department.

10) The company has no accumulated losses and has not incurred any cash loss in the financial Year under audit and in the immediately preceding financial Year.

11) In our opinion and according to the information and explanation given to us , the company has not defaulted in repayment of dues to bank, financial institution, and banks.

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

13) In our opinion, the company is not chit fund or a nidhi / mutual benefit fund s /Society, therefore the provisions of clause 4 (Xiii) of the companies (Auditor''s Report) order, 2003 are not applicable to the Company.

14) Based on our examination of record and evaluation of related internal control we are of the opinion that proper records have been made there in respect of companies'' activities relating to trading /dealing in shares, securities and other investments and these have been held by the company in its own name.

15) The Company has not given a guarantee for loans taken by another company from Financial Institution.

16) In our opinion and according to the information and explanation given to us, the term loans have been applied for the purpose for which they were raised.

17) In our opinion and according to the information and explanation given to us, and on an overall examination of the balance sheet of the company, we report that no funds raised on short term basis have been used for long term investment. Further, no long term funds have been used for short term investment.

18) According to the information and explanation given to us the company has not made any preferential allotment of shares during the year to parties and companies covered in the register maintained under section 301 of Companies Act 1956.

19) According to the information and explanation given to us the company has not issued any secured debentures during the year.

20) The Company has not raised any money by way of a public issue during the year, Therefore the provisions of clause 4(xx) of the companies (Auditor''s Report ) order 2003 are not applicable to the company.

21) According to the information and explanations given to us no fraud on or by the company has been noticed or reported during the period covered by our audit.

Sd/-

PLACE: JALANDHAR For Y.K. Sud & Co .

Date: 29th May, 2013 Chartered Accountant


Mar 31, 2010

1. We have audited the attached Balance Sheet of SARUP TANNERIES LIMITED, as at 31st March, 2010 and also the Profit and Loss Account 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 amounts and disclosures in the financial statements. An audit includes assessing the accounting principles used and significant estimates made by management, as we!) as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

As required by the companies (Auditors Report) order, 2003 issued by the central government of India in terms of section 227 (4A) of the companies act 1956. We enclosed in annexure a statement on the matters specified in paragraphs 4 & 5 of the said order.

Further to our comments in the annexure refers to in paragraphs in 1 & 2 above, we state that:

(a) We have obtained ail 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 accounts as required by law have been kept by the company so far as appears from our examination of the books of accounts;

(c) The Balance Sheet, profit & loss account and cash flow statement dealt with by this report are in agreement with the books of accounts;

(d) In our opinion, the Balance Sheet and profit & loss account read together with notes thereon and cash flow statement of the company comply with the Accounting Standards as referred in Sub- Section (3C) of Section 211 of the Companies Act, 1956, to the extent applicable;

(e) As per information and explanations given to us, none of the directors of the company are disqualified from being appointed as a director under 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 explanations given to us, the said accounts, read together with Significant Accounting Policies and Notes forming part of Accounts, 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 case of Balance Sheet, of the state of the affairs of the company as at 31" March 2010.

(ii) In case of Profit and Loss Account, of the Loss of the Company forthe year ended on that date.

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



Annexure refers to in paragraph 3 of the report of even date of the auditors to the members M/s Sarup Tanneries Limited.



1 (a) The company has maintained proper records showing full particulars, including quantitative

details situation of fixed assets.

(b) The fixed assets were physically verified by the management at reasonable interval, the discrepancies noticed on physical verification were not material and the same has been properly dealt with in the books of account.

(c) According to information and explanation given to us, the company has not disposed off substantial part of its fixed assets during the year and the going concern status of the Company is not affected.

2 (a) The stock of finished goods, stores, spare parts and raw materials have been physically verified by the management at reasonable intervals.

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

(c) In our opinion and according to the information and explanation given to us the Company is maintaining proper record of inventory. As explained to us there were no material discrepancies have been noticed on physical verification of stocks as compared to book records.

3 (a) The company has not granted or taken any loans, secured or unsecured from the companies, firms or other parties lifted in the register maintained under section 301 of the Act. In terms of section 370(6) of companies Act 1956 provisions of the section 370 are not applicable to the company.

(b) The rate of interest and other terms and conditions of unsecured loans granted to companies listed in the register maintained under section 301 of the Companies Act 1956 are prima facie not prejudicial to the interest of the Company. The company has not granted any loan, secured or unsecured to other parties listed in the said register.

(c) In respect of loans and advances in the nature of loans given by the company, the parties have repaid the principal amounts as stipulated and have also been regular in the payment of interest, where applicable.

(d) There are no overdue amounts in respect of transactions listed in clause (a) above.

4 There are adequate internal control procedures commensurate with the size of the company, and the nature of its business for the purchase of inventory. Fixed Assets and sale of goods. During the course of our audit, we have not observed any failure to correct major weakness in internal control procedures.

5. (a) The transactions of purchase of goods and materials and sale of goods, material and services made in pursuance of contracts or arrangements entered in the register maintained under the section 301 of Companies Act -1956. (b) In our opinion and according to the information and explanations given to us the transactions in

Pursuance of such contracts or arrangements have been made at prices which are reasonable aving regard to prevalent market prices at the relevant time.

6 The company has not accepted any deposit from the public. Thus provisions of section 58A & 58AA of the Companies Act 1956 are not applicable. No. order has been passed by Company Law Board.

7 The Company has an internal audit system commensurate with the size and nature of its business.

8 The books of accounts maintained pursuant to the Rules made by the Central Govt, for the maintenance of cost records under section 209 (i) (d) of the Companies Act 1956 have broadly been reviewed by us and prima facie, the prescribed accounts and records have been made and maintained.

9 (a) The Company is regular in depositing provident Fund dues and Employees State Insurance dues with the appropriate authorities. No undisputed amounts payable in respect of Investor Education Protection Fund, Income Tax, Wealth Tax, Sale Tax.Custom Duty and Excise Duty were outstanding as at 31st March 2010 for a period of more than six months from the date they become payable.

(b) There are no dues pending in regard to Sale Tax / Custom Tax / Wealth Tax/ Income Tax / Excise Duty / Cess Duty, on account of any disputes with respective department.

10 The company has no accumulated losses and has not incurred any cash loss in the financial year under audit and in the immediately preceding financial year.

11 In our opinion and according to the information and explanation given to us, the Company has not defaulted in repayment of dues to banks, financial institution, and banks.

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

13 Inouropinion.thecompanyismrtachKfuiKiorank^^ therefore the provisions of clause 4 (kill) of the Companies (Auditors report) order, 2003 are not applicable to the company.

14 Based on our examination of records and evaluation of related internal control we are of the opinion that proper records have been maintained of the transaction and contracts and timely entries have been made there in respect of companies activities relating to trading/dealing in shares, securities and other investments and these have been held by the company in its own name.

15 The company has not given a guarantee for loans taken by another company from Financial Institution.

16 In our opinion and according to the information and explanation given to us, the term loans have been applied for the purpose for which they were raised.

17 In our opinion and according to the information and explanation given to us and on an overall examination of the balance sheet of the company, we report that no funds raised on short term basis have been used for long term investment. Further, no long term funds have been used for shortterm investment.

18 According to the information and explanation given to us the company has not made any preferential allotment of shares during the year to parties and companies covered in the register maintained under section 301 of the Companies Act 1956.

19 According to the information and explanations given to us, the company has not issued any secured debentures during the year.

20 The Company has not raised any money by way of a public issue during the year, Therefore the provisionsofclause4(xx)oftheCompanies(Auditorsreport)order2003 are not applicable to the company.

21 According to the information and explanations given to us no fraud on or by the company has been noticed or reported during the period covered by our audit.



For Y.KSud & Co.

Chartered Accountant

Prop. Place : Jalandhar

Date:29th,May 2010



 
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