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Auditor Report of Shree Surgovind Tradelink Ltd.

Mar 31, 2015

We have audited the accompanying financial statements of SHREE SURGOVIND TRADELINK LIMITED (the 'Company') which comprises of Balance Sheet as at March 31, 2015 and also the Statement of Profit and Loss account and Cash flow statement for the year then ended and a summary of significant accounting policies and other explanatory information.

2. Management's Responsibility for the financial statements

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

3. Auditors' Responsibility

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

b) An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedure selected depends 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 that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place and adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company's management, and Board of Directors, as well as evaluating the overall presentation of the financial statements.

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

4. Basis of Qualified Opinion

We draw attention to Note 29 to the financial statements relating to Debit or credit balances on whatever account are subject to confirmation from parties / authorities concerned, the effect of the same on the financial statement is not ascertainable.

5. Qualified Opinion

In our opinion and to the best of our information and according to the explanations given to us, except for the possible effects of the matters described in Basis of Qualified Opinion paragraph above, 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, of the state of affairs of the Company as at March 31,2015 its loss and its cash flows for the year ended on that date.

Emphasis of Matter

We draw attention to Note 30 to the financial statements relating to 1. Case against the Company / Directors by Registrar of Companies (ROC); 2.Case against the Directors by SEBI;

The matters in respect of outcome of case 1 above are sub-judice and as informed to us the former directors of the company have subsequent to the year-end filed for compounding of offence with Company Law Board, Western Region, Mumbai/ Regional Director, North western Region, Ahmedabad.

In respect of case 2 the company has paid penalty as per the orders of SAT (SEBI Appellate Tribunal) amounting to Rs 6 lakhs and accounted the same under other expenses in the Statement of Profit and loss for year ended 31st March 2015.

Our opinion is not modified in respect of the above matters.

6. Report on Other Legal and Regulatory Requirements

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 paragraphs 3 and 4 of the said order. As required by section 143(3) of the Act, we report that:

* 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

* Except for the possible effects of the matter described in the Basis of Qualified Opinion paragraph above, in our opinion, proper books of accounts, as required by law have been kept by the company, so far as it appears from our examination of the books;

* The Balance Sheet, the Statement of Profit and Loss and the Cash flow statement dealt with by this report are in agreement with the books of accounts;

* In our opinion, the aforesaid financial statements comply with the applicable Accounting standards specified under the 133 of the Act read with the Rule 7 of the Companies (Accounts) Rules 2014;

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

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

* The Company has disclosed the impact of pending litigations as at March 31,2015 on its financial position in its financial statements. (Refer note 25 of the Financial Statements);

* The Company did not have any long-term contracts including derivative contracts; as such the question of commenting on any material foreseeable losses thereon does not arise and;

* There were no amounts which are required to be transferred to the Investor Education and Protection Fund by the Company.

Annexure to referred to in paragraph 6 of our report of even date to the members of SHREE SURGOVIND TRADELINK LIMITED on the accounts of the company for the year ended March 31,2015

On the basis of such checks as we considered appropriate and according to the information and explanations given to us during the course of our audit, we report that;

i. In respects of the Company's fixed assets:

(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets. However the maintenance needs to be improved.

(b) As explained to us, fixed assets have been physically verified by the management at all locations at reasonable intervals. As informed to us no material discrepancies were noticed on such verification.

ii. In respect of the Company's inventories:

(a) The inventories have been physically verified during the year at reasonable intervals by the Management.

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

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

iii. The Company has not granted any loans, secured or unsecured, to companies, firms or other parties covered in the Register maintained under section 189 of the Act. Since no loans and advances covered by this clause, no further details about rate of interest and recovery of the loan and interest are given.

iv. In our opinion and according to the information and explanations given to us, internal control system is adequate commensurate with the size of the Company and the nature of its business with regard to purchase of inventory and fixed assets and the sale of goods and services. During the course of our audit, we have not observed any major weakness in internal control system.

v. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public covered under Section 73 to76 of the Companies Act, 2013 during the period covered by audit.

v. In our opinion and according to the information and explanations given to us, the details as to cost records applicability and their maintenance as per provisions of clause (vi) are not applicable to the Company.

vi. In respect of statutory dues,

(a) The Company has generally been regular in depositing undisputed statutory dues, including Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and other material statutory dues applicable to it have been generally regularly deposited during the year with the appropriate authorities. However there have been some delays.

(b) According to the information and explanations given to us, the disputed dues in respect of income tax, which have not been deposited are as follow:

Name Of Nature of Amount Period (FY) for the Statue Dispute (Rs.) the amt relates.

The Income Tax and 434,700 2011-12 Tax Act 1961 Interest

The Income Tax and 162,020 2012-13 Tax Act 1961 Interest

596,720

Name Of which Forum where the Statue dispute is pending

The Income Commissioner of Tax Act 1961 Income Tax (Appeals)

The Income Commissioner of Tax Act 1961 Income Tax (Appeals)

(c) According to the information and explanation given to us, there is no amount thereof that required to be transferred to Investor Education & Protection fund in accordance with the relevant provisions of the companies act, 2013.

vii. The Company has accumulated losses as at 31st March, 2015 which is not more than fifty percentage of the net worth of the company. The company has incurred cash losses in the financial year. There was no cash loss during the immediately preceding financial year.

viii. In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to Financial Institutions and banks except repayment of vehicle loan for last 12 months during the financial year covered by our audit amounting to Rs 7,39,632/-. Further in our opinion and according to information and explanations given to us, the Company did not have any amount outstanding to debenture holders or non-financial banking institutions.

ix. In our opinion and according to the information and explanations given to us, the Company has not given any guarantees for loans taken by others from banks or financial institutions.

x. In our opinion and according to the information and explanations given to us, no term loans have been taken by the company and hence the question whether they applied for the purpose, for which they were obtained, does not arise.

xi. During the course of our examination of the books and records of the company, carried in accordance with the auditing standards generally accepted in India, we have neither come across any instance of fraud on or by the Company noticed or reported during the course of our audit nor have we been informed of any such instance by the Management.

For P.PJayaraman & Co. Chartered Accountants Firm Registration Number: 104139W

P.PJayaraman Proprietor, Membership Number: 041354.

Thane,29/05/2015




Mar 31, 2014

We have audited the accompanying financial statements of SHREE SURGOVIND TRADELINK LIMITED (the "Company") which comprises of Balance Sheet as at March 31, 2014 and also the Statement of Profit and Loss account and Cash flow statement for the year then ended and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the financial statements

The Company's Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the company in accordance with the Accounting Standards referred to Section 211 (3C) of the Companies Act, 1956 (the "Act") (which continue to be applicable in respect of Section 133 of the Companies Act, 201 Tin terms of General Circular 15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs) and in accordance with the accounting principles generally accepted in India. The responsibility includes the design, implementation and maintenance of internal controls relevant to the preparation 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 bur audit in accordance with Standards on Auditing issued by the Institute of Chartered Accountants of India. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedure selected depends 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 that give>a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence 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 aforesaid financial statements give a true and fair view in conformity with the accounting principles generally accepted in India:

* in the case of the Balance Sheet, of the state of affairs of the Company as at March 31,2014;

* in the case of Statement of Profit and Loss, of the profit of the Company for the year ended on that date; and

* in the case of the Cash flow statement, of the cash flows of the Company for the year ended on that date.

Emphasis of Matter

We draw attention to Note 26 and 29 to the financial statements relating to Case against the Former Directors of the company by Registrar of Companies (RQC)andCase against company/ Directors bySEBI.

The matters in respect of outcome of above cases are sub-judice.

Our opinion is not qualified in respect of the above matters.

Report on Other Legal and Regulatory Requirements

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

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

* 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.

* in our opinion, proper books of accounts, as required by law have been kept by the company, so far as it appears from our examination of the books.

* The Balance Sheet, the Statement of Profit and Loss and the Cash flow statement dealt with by this report are in agreement with the books of accounts

* In our opinion, the Balance Sheet, the Statement of Profit and Loss and the Cash flow statement comply with the accounting standards to in section 211 (3C) of the Act.

* On the basis of written representation 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 section 274(1 ){g) of the Act.

ANNEXURETO THE AUDITOR REPORT

(Referred to in paragraph 4 of our Report of even date on the Accounts for the year ended on March 31,2014 of Shree Surgovind Tradelink Limited)

1. Having regard to the nature of the Company's business/activities during the year, clause (xiii) of paragraph 4 of the Order is not applicable to the Company.

2. in respects of the Company's fixed assets:

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

(b) A substantial portion of the fixed assets have been physically verified by the management during the year and in our opinion the frequency of such verification is reasonable having regard to the size of the Company and the nature of its assets. According to the information and explanation given to us, no material discrepancies were noticed on such verification.

(c) No fixed assets have been disposed off during the year; therefore the same has not affected the going concern status of the Company.

3. In respect of the Company inventories:

(a) As explained to us, the inventories were physically verified during the year by the Management at reasonable intervals. In our opinion, the frequency of such verification is adequate.

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

(c) in our opinion and according to the information and explanation given to us, the Company has maintained proper records of inventories and no material discrepancies were noticed on physical verification and they have been dealt with in the books of accounts.

4. In respect of the loans:

(a) The Company has neither granted nor taken any loans, secured or unsecured, to/from companies, firms or other parties covered in the Register maintained under section 301 of the Act, except unsecured loans from directors and relatives. The maximum amount involved in the current year amounted to Rs. 97.61 lakhs (Balance due as the year end is Nil)

(b) in our opinion, the rate of interest and other terms and conditions on which such loans and advances are made are not prima facie prejudicial to the interest of the company.

5. In our opinion and according to the information and explanations given to us, internal control system is inadequate commensurate with the size of the Company and the nature of its business with regard to purchase of inventory and fixed assets and the sale of goods and services. During the course of our audit, we have not observed any major weakness in internal control system.

6. In respect of contracts or arrangements entered in the Register maintained in pursuance of Section 301 of the Act, to the best of our knowledge and belief and according to the information and explanations given to us:

(a) The particulars of contracts or arrangements entered in the Register maintained in pursuance of Section 301 that needed to be entered in the Register maintained under the said section have been so entered.

(b) Where each of such transaction is in excess of Rs. 5 lakhs in respect of any party, the transactions have been made at prices which are prima facie reasonable having regard to the prevailing market prices at the relevant time.

7. In our opinion and according to the information and explanations given to us, the Company has not accepted deposits from the public during the year. Therefore the provisions of the clause 4 (vi) of the order are not applicable to the Company.

8. In our opinion, the company has an internal audit system commensurate with the size and nature of its business, although the scope needs to be enlarged to make it commensurate with the size and nature of its business.

9. In our opinion and according to the information and explanations given to us, the details as to cost records applicability and their maintenance as per provisions of clause (viii) are not applicable to the Company.

10. In respect of statutory dues,

(a) The Company has generally been regular in depositing undisputed statutory dues, including Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and other material statutory dues applicable to it have been generally regularly deposited during the year with the appropriate authorities. There have been some delays in respect of Profession Tax, Income Tax deducted at source, Sales tax and Provident Fund. The balance of PF pending to be collected and paid as on 31.03.2014 is Rs. 49,836/for the period October, 2013 to March 2014.

(b) According to the information and explanations given to us, no undisputed amounts payable in respect of above were in arrears, as at March 31,2014 for a period of more than six monthsfrom the date on which they became payable.

According to the information and explanation given to us, the disputed dues in respect of sale tax, income tax, which have not been deposited are as follow.

Name Of Nature of Amount Period (FY) for which the Statue Dispute ( ) the amt relates.

The Income Tax and 4,34,700/- 2010-11 Tax Act 1961 Interest

Name Of Forum where the Statue dispute is pending

The Income Commissioner of Tax Act 1961 Income Tax (Appeals)

11. The Company does not have any accumulated losses at the end of the financial year. Further, the company has not incurred cash losses during the financial year covered by our audit and the immediately preceding financial year.

12. in our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to Financial Institutions and banks except repayment of vehicle loan installments for last 5 months amounting to Rs.3,08,180/- during the financial year covered by our audit. Further in our opinion and according to information and explanations given to us, the Company did not have any amount outstanding to debenture holders or non-financial banking institutions.

13. In our opinion and according to the information and explanations given to us, the Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

14. In our opinion and according to the information and explanations given to us, the Company is not dealing in shares, securities, debentures. Therefore the provisions of clause 4 (xiv) of the Order are not applicable to the Company.

15. In our opinion and according to the information and explanations given to us, the Company has not given any guarantees for loans taken by others from banks or financial institutions. Hence the provisions of the clause 4{xv) are not applicable to the company

16. In our opinion and according to the information and explanations given to us, no term loans have been obtained by the company.

17. In our opinion and according to the information and explanations given to us, and on an overall examination of the balance sheet of the Company, we report that funds raised on short-term basis have been prima fade not used during the year for long-term investment.

18. According to the information and explanations given to us, during the year covered by our audit, the Company has not made preferential allotment of equity shares to parties and companies covered in the register maintained under section 301 of the Act.

19. According to the information and explanations given to us, during the year covered by our report, the Company has not issued any secured debentures.

20. During the year covered by our report, the Company has not raised any money by way of public issue.

21. To the best of our knowledge and belief and according to the information and explanations given to us, no fraud by the Company and no material fraud on the Company has been noticed or reported during the year.

For P.P.Jayaraman & Co. Chartered Accountants Firm Registration Humber: 104139W

P.P.Jayaraman Proprietor Membership Number: 041354:

Place: Thane Date: 05/08/2014


Mar 31, 2012

1. We have audited the attached balance sheet of SHREE SURGOVIND TRADELINK LTD, as at March 31, 2012 and the profit and 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 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 management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3 As required by the Companies (Auditor's Report) Order, 2003 issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

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

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

ii. In our opinion, proper books of account as required by law have bee* kept by the company so far as appears from our examination of those books

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

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

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

vi. In our opinion and to the best of our information and according to the explanations given to us, the said 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:

- in the case of the Balance Sheet, of the state of affairs of the company as at 31st March, 2012;

- in the case of the Profit & Loss Account, of the Profit for the year ended on that date; and

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

ANNEXURE TO THE AUDITOR REPORT Re: M/S. SHREE SURGOVIND TRADELINK LTD. Referred to in paragraph 3 of our report of even date,

i. In respect of fixed assets

(a) The company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets.

(b) All the assets have been physically verified by the management during the year. No material discrepancies were noticed on such verification.

(c) None of Fixed assets has been revalued during the period

ii In respect of Inventories

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

(b) The 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) The company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material.

iii The Company has not granted unsecured loans and inter-corporate deposits to companies covered in the register maintained u/s. 301 of the Act, hence the provisions of clause (iii) (b), (c) & (d) of paragraph 4 are not applicable to the Company.

iv The Company has taken unsecured loans in the form of inter-corporate deposit and loan from directors; however the terms are not prejudicial to the interest of the company.

v In our opinion and according to the information and explanations given to us, there exists an adequate internal control system commensurate with the size of the company and the nature of its business, with regard to purchase of fixed assets and with regard to the services rendered by the company. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control system of the company.

v In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of rupees five lakhs in respect of any party during the year have been made at prices, which are reasonable having regard to prevailing market prices at the relevant time.

vi In our opinion, the company has an internal audit system commensurate with the size and nature of its business, although the scope needs to be improved to cover more areas.

vii Maintenance of cost records has not been prescribed by the Central government under section 209 (1) (d) of the Companies Act, 1956.

viii According to the information and explanations given to us, no undisputed amounts

payables in respect of income tax, wealth tax, were in arrears, as at 31st March 2012 for a period of more than six months from the date they became payable.

ix The Company does not have any accumulated losses at the end of the financial year. Further, the company has not incurred cash losses during the financial year covered by our audit and the immediately preceding financial year.

xi. The Company has not raised any money by public issue during the year.

xii. On the basis of the records and documents examined by us, the Company has not issued any secured debentures during the year.

xiii. The company has not made any preferential allotment of shares to the parties and companies covered in the register maintained under section 301 of the companies Act 1956

xiv. The Company has not accepted any deposits from public and hence the provision of section 58A and 58AA of the act and rules framed there under are not applicable to

For P.PJayaraman & Co.

Chartered Accountants

FRN: 104139 W

(P.P Jayaraman)

(Proprietor)

M. No.: 041354.

Place: Thane Date: 11-6-2012


Mar 31, 2010

1. We have audited the attached balance sheet of M/S. SHREE SURGOVIND TRADELINK LTD, as at 31st March, 2010 and the profit and 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 management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors Report) Order, 2003 issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

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

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

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

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

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

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

In our opinion, and to the best of our information and according to the explanations given to us, the said 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:

a. in the case of the Balance Sheet, of the state of affairs of the company as at 31st March, 2010;

b. in the case of the Profit & Loss Account, of the Profit for the year ended on that date; and

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

ANNEXURE TO THE AUDITOR REPORT Re: M/S. SHREE SURGOVIND TRADELINK LTD. Referred to in paragraph 3 of our report of even date,

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

(b) All the assets have been physically verified by the management during the year. No material discrepancies were noticed on such verification.

(c) None of Fixed assets has been revalued during the period

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

(b) The 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) The company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material.

iii The Company has not taken any loan from shareholders and / or directors, whether secured or unsecured, that may be prejudicial to the interest of the company.

iv In our opinion and according to the information and explanations given to us, there exists an adequate internal control system commensurate with the size of the company and the nature of its business, with regard to purchase of fixed assets and with regard to the services rendered by the company. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control system of the company.

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

vi In our opinion, the company is required to have an internal audit system but the company does not have an internal audit system.

vii Maintenance of cost records has not been prescribed by the Central government under section 209 (1) (d) of the Companies Act, 1956.

viii According to the information and explanations given to us, no undisputed amounts payables in respect of income tax, wealth tax, were in arrears, as at 31st March 2010 for a period of more than six months from the date they became payable.

ix According to the information and explanations given to us, there are ncudues of income tax, sales tax, service tax, customs duty and excise duty which have not been deposited on account of any dispute.

x In our opinion, the accumulated losses of the company are not more than fifty per cent of its net worth. Further, the company has not incurred cash losses during the financial year covered by our audit and the immediately preceding financial year.

Xi. The Company has not raised any money by public issue during the year"

xii. On the basis of the records and documents examined by us, the Company has not issued any secured debentures during the year.

xiii. The company has not made any preferential allotment of shares to the parties and companies covered in the register maintained under section 301 of the companies Act 1956

xiv. The Company has not accepted any deposits from public and hence, the provision of section 58A and 58AA of the act and rules framed there under are not applicable to Company.

xv. In our opinion, the company is not a chit fund, a nidhi or a mutual benefit fund/society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditors Report) Order, 2003 are not applicable to the company.

xvi. In our opinion, the company is not dealing in or trading in shares securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the Companies (Auditors Report) Order, 2003 are not applicable to the company.

xvii. In our opinion and as per information and explanations given to us, the company has not given guarantees for loans taken by others from banks or financial institutions.

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

xix. We are informed that the company does not generate any by product.

xx. We have been informed by the company that Provident fund Act and the employees state Insurance corporation Act is not applicable to the company to the year under review.

xxi. During the course of our Examinations of the books of accounts carried out in accordance with the generally accepted auditing practices we have not come cross any personal expenses charges to revenue account.

xxii, In our opinion, the company is not a sick Industrial company within the meaning of clause (0) of subsection (1) of section (3) of Sick Industrial Companies (Special Provisions ) Act, 1985



For P. P. Jayaraman & Co.

Chartered Accountants,

(P. P Jayaramaj)

(Proprietor).

M. No: 041354

Firm No. 104139 W

Place: Thane

Date: 2 SEP 2010

 
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