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Auditor Report of Shreyas Shipping & Logistics Ltd.

Mar 31, 2013

Report on the Financial Statements

We have audited the accompanying financial statements of M/s. Shreyas Shipping & Logistics 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 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"). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor''s Responsibility

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

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. 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 thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Basis for Qualified Opinion

a) As per the Guidance provided by the Accounting Standards Board of The Institute of Chartered Accountants of India through frequently asked questions on AS 11 Notification, the exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to interest costs is to be considered as "borrowing costs" and accounted for in accordance with Accounting Standard 16 (AS16) - Borrowing Costs. The Company has not considered the "borrowing costs" while adjusting the foreign currency differences to the cost of the assets. It has been clarified by the Ministry of Corporate affairs vide Circular No.25/2012 dated 9th August 2012 that "borrowing costs" need not be considered while capitalizing the eligible exchange differences. But this clarification is effective only fromlst April 2011. In view of this, Cumulative foreign exchange loss understated till March 31, 2011 Rs. 2,12,27,712 (of this Rs. 32,15,949 relates to the period before March 31 2008, YH 1,44,20,050 for the year ended March 2009, Rs. 26,40,609 for the year ended March 31 2010, Rs. 9,51,104 for the year ended March 31 2011),

ii. Depreciation related to above including the adjustment to opening reserves is cumulatively overstated to the extent of Rs. 48,03,328 (of this Rs. 1,398 relates to the period before March 31 2008, Rs. 1,73,929 for the year ended March 31 2009, Rs. 18,82,072 for the year ended March 31 2010, Rs. 3,57,473 for the year ended March 31 2011, Rs. 11,94,228 for the year ended March 31 2012 and t11,94,228 for the current year),

Hi. Profit for the year ended 31 March 2013 is understated byt 11,94,228 and

iv. Fixed assets and Reserves are overstated to the extent oft 1,64,24,384.

b) The Company has changed the Accounting Policy in the current year for Dry dock Expenses to amortize the same over 30 months, whereas in the previous years such expenses were charged off to statement of Profit and Loss in the year of incurrence. Accordingly Rs. 4,86,85,374, out of total expenditure of Rs. 6,74,88,899 incurred on Dry dock in the current year, has been deferred to be amortized over the balance period. Had the earlier policy been adopted, charge to statement of Profit and Loss would have been higher to the extent of Rs. 4,86,85,374 for the year ended 31st March, 2013. Consequently profit for the year ended 31st March, 2013 would have been lower by Rs. 4,86,85,374, other non-current assets as on 31st March, 2013 lower by Rs. 2,16,75,014, and other current assets as on 31st March, 2013 lower by Rs. 2,70,10,360.

c) In view of (a) and (b) above, profit is overstated to the extent of Rs. 4,74,91,146 for the year, the reserves are overstated to the extent of Rs. 6,51,09,758, fixed assets is overstated to the extent of Rs. 1,64,24,384, other non-current assets is overstated to the extent oft 2,16,75,014, and other current assets is overstated to the extent oft 2,70,10,360.

Qualified Opinion

In our opinion and to the best of our information and according to the explanations given to us, except for the effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

(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.

Emphasis of Matter

We draw attention to Note 33 of the financial statements regarding payment of Managerial Remuneration which is in excess of limit prescribed under Companies Act, 1956. Our opinion is not qualified in respect of this matter.

Report on Other Legal and Regulatory Requirements

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

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

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

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

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

(d) Except for the effects of the matters described in the Basis for Qualified Opinion paragraph, 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 Act;

(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 274 of the Companies Act, 1956.

Annexure

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

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

(b) The majorfixed assets have been physically verified by the management at reasonable intervals; no material discrepancies were noticed on such verification:

(c) The Company has not disposed any material assets during the year;

II. (a) Physical verification of inventory has been conducted at reasonable intervals by the management:

(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 and no material discrepancies were noticed on physical verification;

III. (a) Except for Unsecured interest bearing loan of Rs. 7,00,00,000/- given to M/s. Shreyas Relay Systems Limited (repayable on demand), a wholly owned subsidiary Company, 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.

(b) The rate of interest and other terms and conditions of loans given by the company, secured or unsecured, are not prima facie prejudicial to the interest of the company;

(c) There are no overdue amounts of more than Rs. 1,00,000 during the year:

IV. There is an adequate internal control procedure commensurate with the size of the company and the nature of its business, for the purchase of inventory and fixed assets and for the sale of services. No goods are sold by the Company. There is no continuing failure to correct major weaknesses in internal control;

V. (a) The Particulars of Contracts or arrangements referred in section 301 of the Act have been entered in the register required to be maintained under that section: and

(b) Each of these transactions have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time;

VI. The company has not accepted deposits from the public during the year;

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

VIII. Maintenance of cost records has not been prescribed by the Central Government under clause (d) of sub-section (1) of section 209 of the Act;

IX. (a) The company has been generally regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees'' State Insurance, Income-tax, Service tax, Wealth Tax, Custom Duty, cess and any other statutory dues with the appropriate authorities. The Company is not registered under Value added Tax and Excise duty legislations. There are no arrears of outstanding statutory dues as at the last day of the Financial year for a period of more than six months from the date they became payable.

(b) There are no dues of sales tax/income tax/custom tax/wealth tax/excise duty/cess which have not been deposited on account of any dispute.

X. The Company has no accumulated losses at the end of the financial year and it has not incurred cash losses in such financial year and in the financial year immediately preceding such financial year also;

XI. The Company has not defaulted in repayment of dues to financial institutions;

XII. The Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities;

XIII. The Company is not a Nidhi/ Mutual benefit fund/ Society: the provisions of special statute applicable to chit fund are not applicable to the Company;

XIV The Company is not dealing or trading in shares, securities, debentures and other investments;

XV. The Company has not given any guarantee for loans taken by others from banks or financial institutions except for guaranteeing loans taken by its Subsidiaries (Shreyas Relay Systems Limited and SRS Freight Management Limited (formerly known as Haytrans India Limited), the terms and conditions whereof are not prejudicial to the interest of the company;

XVI. Term loans were applied for the purpose for which the loans were obtained;

XVII. On an overall examination of Balance Sheet, we report that no funds raised on short-term basis have been used for long term investment:

XVIII. The company has not made any preferential allotment of shares to parties and companies covered in the Register maintained under section 301 of the Act;

XIX. The Company has not issued any debentures during the year;

XX. There have been no public issues during the year:

XXI. Based on the audit procedures adopted and according to the information and explanations given to us by the management, no fraud on or by the Company has been noticed or reported during the course of the year.

For PKF Sridhar & Santhanam

Chartered Accountants

Firm''s Regn. No.: 003990S

Ramanarayanan. J

Place: Mumbai Partner

Date: 27th May, 2013 Mem. No.: 220369


Mar 31, 2012

1. We have audited the attached Balance Sheet of Shreyas Shipping and Logistics Ltd. as at 31st March 2012, the Statement of Profit and Loss and also the Statement of Cash Flow for the year ended on that date annexed thereto. The 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 been kept by the Company so far as appears from our examination of those books;

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

(iv) 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 that date from being appointed as a director in terms of clause (g) of sub- section (1) of section 274 of the Companies Act, 1956;

(v) /4s per the Guidance provided by the Accounting Standards Board of the Institute of Chartered Accountants of India through Frequently Asked Questions on AS 11 Notification, the exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to interest costs are to be considered as "borrowing costs" and accounted for in accordance with Accounting Standard 16 (AS 16) - Borrowing Costs. The company has not considered the "borrowing costs" while adjusting the foreign currency differences to the cost of the assets. In view of this

a) Cumulative foreign exchange loss is understated to the extent of Rs 2,86,64,072 (of this Rs 32,15,949 relates to the period before March 31 2008, Rs 1,44,20,050 for the period March 2009, Rs 26,40,609 for the period March 31 2010, Rs 9,51,104 for the period ended March 31 2011 and Rs 74,36,360 for the current year,

b) Depreciation related to above including the adjustment to opening reserves is overstated to the extent ofRs 41,48,390 (of this Rs 1,398 relates to the period before March 31 2008,Rs 1,73,929 for the period March 2009, Rs 18,82,072 for the period March 31 2010, Rs 3,57,473 for the period ended March 31 2011 and Rs 17,33,518 for the current year),

c) Profit after tax for the year ended 31 March 2012 is stated higher by Rs 57,02,842 and

d) Fixed assets and Reserves are stated higher to the extent ofRs 2,45,15,682.

(vi) In our opinion, the Balance Sheet, Statement of Profit and Loss and Statement of Cash Flow with by this report comply with the accounting standards referred to in sub- section (3C) of section 211 of the Companies Act, 1956 except to the extent indicated in Para (v) above relating to capitalization of certain borrowing costs that are not eligible for capitalization.

(vii) Subject to our comments with respect to capitalization of certain borrowing costs that are not eligible for capitalization as referred to in paragraph (v) above ,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, 2012.

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

Annexure to the Auditors' Report

Re: Shreyas Shipping and Logistics Limited

Referred to in paragraph 3 of our report of even date,

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

(b) The major fixed assets have been physically verified by the management at reasonable intervals; no material discrepancies were noticed on such verification;

(c) The Company has not disposed any material assets during the year.

(ii) (a) Physical verification of inventory has been conducted at reasonable intervals by the management;

(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 and no material discrepancies were noticed on physical verification.

(iii) (a) Except for unsecured interest bearing loan of Rs 5,25,00,000 given to Shreyas Relay Systems Limited, a wholly owned subsidiary company, which has been repaid in full during the year, the Company has not given any other loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 301 of the Act. In our opinion the terms and conditions of loan given to wholly owned subsidiary are not prima facie prejudicial to the interest of the Company.

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

(iv) There is an adequate internal control system commensurate with the size of the Company and the nature of its business, for the purchase of inventory and fixed assets and for the sale of services. No goods are sold by the Company. There is no continuing failure to correct major weaknesses in internal control system;

(v) (a) The particulars of contracts or arrangements referred to in section 301 of the Act have been entered in the register required to be maintained under that section; and

(b) In respect of transactions exceeding the value of Rs five lakhs in respect of each party made in pursuance of such contracts or arrangements, they have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time, wherever applicable;

(vi) The Company has not accepted deposits from the public;

(vii) The Company has an internal audit system commensurate with its size and nature of its business;

(viii) Maintenance of cost records has not been prescribed by the Central Government under clause (d) of sub-section (1) of section 209 of the Act,

(ix) (a) The Company has been generally regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees' State Insurance, Income-tax, Wealth Tax, Service tax, Custom Duty, Cess and any other material statutory dues with the appropriate authorities except for a solitary instance of delay in remitting unpaid dividend into Investor Education and Protection Fund. The Company is not registered under Value Added Tax and Excise duty legislations. There are no arrears of outstanding statutory dues as at the last day of the financial year for a period of more than six months from the date they became payable.

(b) There are no dues of Income tax/Sales tax/Wealth tax/Service tax/Custom duty /Cess that have not been deposited on account of any dispute.

(x) The Company has no accumulated losses at the end of the financial year and it has not incurred cash losses in the financial year and in the immediately preceding financial year;

(xi) The Company has not defaulted in repayment of dues to a financial institution or bank or debenture holders.

(xii) The Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities;

(xiii) As the Company is not a Nidhi/Mutual benefit fund/ Society, the provisions of special statute applicable to chit fund is not applicable to this Company.

(xiv) The Company is not dealing or trading in shares, securities, debentures and other investments.

(xv) The Company has not given any guarantee for loans taken by others from bank or financial institutions except for guaranteeing loans taken by its Subsidiary, the terms and conditions of which are not prejudicial to the interest of the Company.

(xvi) Term loans were applied for the purpose for which the loans were obtained;

(xvii) On an overall examination of the Balance Sheet, we report that the funds raised on short-term basis have not been used for long term investment.

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

(xix) The Company has not issued any debentures.

(xx) There have been no public issues during the year.

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



For PKF Sridhar & Santhanam

Chartered Accountants

Firm Regn No. 003990S

S. Narasimhan

Place: Mumbai Partner

Date: 30th May, 2012 Membership No. 206047


Mar 31, 2011

1. We have audited the attached Balance Sheet of Shreyas Shipping and Logistics Ltd. as at 31st March 2011, 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 account.

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

(v) As per the Guidance provided by the Accounting Standards Board of The Institute of Chartered Accountants of India through frequently asked questions on AS 11 Notification, the exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to interest costs are to be considered as "borrowing costs" and accounted for in accordance with Accounting Standard 16 (AS16)-Borrowing Costs. The Company has not considered the "borrowing costs" while adjusting the foreign currency differences to the cost of the assets. In view of this

a. Cumulative foreign exchange loss is understated to the extent of Rs.2,12,27,712 (of this Rs.32,15,949 relates to period before March 31 2008, Rs.1,44,20,050 for the year ended March 31 2009, Rs.26,40,609 for the year ended March 31 2010 and Rs.951,104 for the current year)

b. Depreciation related to above including the adjustment to opening reserves is cumulatively overstated to the extent of Rs.24,14,872 (of this Rs.1398 relates to period before March 31 2008, Rs.1,73,929 for the year ended March 31 2009, Rs.18,82,072 for the year ended March 31 2010 and Rs.3,57,473 for the current year)

c. Loss for the current year is stated lower by Rs.5,93,631 and

d. Fixed assets and Reserves are stated higher to the extent of Rs.1,88,12,840

(vi) 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 except to the extent indicated in para (v) above relating to capitalization of certain borrowing costs that are not eligible for capitalization.

(vii) Subject to our comments with respect to capitalization of certain borrowing costs that are not eligible for capitalization as referred to in paragraph (v) above, 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, 2011.

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

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

Annexure to the Auditors Report Re: Shreyas Shipping and Logistics Limited

Referred to in paragraph 3 of our report of even date,

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

(b) The major fixed assets have been physically verified by the management at reasonable intervals; no material discrepancies were noticed on such verification;

(c) The Company has not disposed off any material assets during the year.

(ii) (a) Physical verification of inventory has been conducted at reasonable intervals by the management;

(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 and no material discrepancies were noticed on physical verification.

(iii) (a) During the year, except for an unsecured interest free loan of Rs.5,25,00,000 to Shreyas Relay Systems Ltd, a wholly owned subsidiary, the Company has not granted any other loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 301 of the Act. In our opinion the terms of the loan given to wholly owned subsidiary are not prejudicial to the interests of the company.

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

(iv) There is an adequate internal control system commensurate with the size of the Company and the nature of its business, for the purchase of inventory and fixed assets and for the sale of services. No goods are sold by the Company. There is no continuing failure to correct major weaknesses in internal control system;

(v) (a) The particulars of contracts or arrangements referred to in section 301 of the Act have been entered in the register required to be maintained under that section; and (b) In respect of transactions exceeding the value of Rs. five lakhs in respect of each party made in pursuance of such contracts or arrangements, they have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time wherever applicable.

(vi) The Company has not accepted deposits from the public;

(vii) The Company has an internal audit system commensurate with its size and nature of its business;

(viii) Maintenance of cost records has not been prescribed by the Central Government under clause (d) of sub-section (1) of section 209 of the Act,

(ix) (a) The Company has been generally regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income-tax, Wealth Tax, Service tax, Custom Duty, Cess and any other material statutory dues with the appropriate authorities. The Company is not registered under Value Added Tax and Excise duty legislations. There are no arrears of outstanding statutory dues as at the last day of the financial year for a period of more than six months from the date they became payable.

(b) There are no dues of Income tax / Sales tax / Wealth tax / Service tax / Custom duty / Cess that have not been deposited on account of any dispute.

(x) The Company has no accumulated losses at the end of the financial year. There is no cash loss in the current financial year. However it has incurred cash losses in the previous financial year.

(xi) The Company has not defaulted in repayment of dues to a financial institution or bank.

(xii) The Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities;

(xiii) As the Company is not a Nidhi / Mutual benefit fund/ Society, the provisions of special statute applicable to chit fund etc. is not applicable to this Company.

(xiv) The Company is not dealing or trading in shares, securities, debentures and other investments.

(xv) The Company has not given any guarantee for loans taken by others from bank or financial institutions except for guaranteeing loans taken by its Subsidiary, the terms and conditions of which are not prejudicial to the interest of the Company.

(xvi) Term loans were applied for the purpose for which the loans were obtained;

(xvii) On an overall examination of the Balance Sheet, we report that the funds raised on short-term basis have not been used for long term investment.

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

(xix) The Company has not issued any debentures.

(xx) There have been no public issues during the year.

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

For PKF Sridhar & Santhanam

Chartered Accountants

Firm Regn No 03990S

S.Narasimhan

Place: Mumbai Partner

Date: 25th May, 2011 M. No. 206047









 
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