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Auditor Report of Siddhi Vinayak Shipping Corporation Ltd.

Mar 31, 2016

INDEPENDENT AUDITORS'' REPORT

TO, THE MEMBERS OF

SIDDHI VINAYAK SHIPPING CORPORATION LIMITED Report on the Financial Statements:

We have audited the accompanying financial statements SIDDHI VINAYAK SHIPPING CORPORATION LIMITED (Formerly Known as SI. VI. Shipping Corporation Limited) which comprises the Balance Sheet as at March 3 1 2015, 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:

The Company’s Board of Directors is responsible for the matters in section B4(5) of the Companies Act, 2013 (the Act)’with respect to the preparation of these financial statements that give a true and air view of the financial position, financial performance of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section B3 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2011. 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 113(D) 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 auditors judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company’s preparation of the financial statements that give true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the company has in place and adequate internal financial controls system over financial reporting and the operating effectiveness of such control 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 so far it relates to the Balance Sheet, of the state of affairs of the company as at March 3 1206; and

(b) in so far it relates to the Statement of Profit and Loss, of the profit/ loss for the year ended on that date;

(c) in so far it relates to the Statement of Cash Flow ,of the cash flow for the year ended on March 31236;

Report on Other Legal and Regulatory Requirements:

As required by the Companies (Auditors Report), Order, 206 (order dated 29.03.206), issued by the Central Government of India in terms of section 143(11) of the Companies Act, 203 (hereinafter referred to as order), and on the basis of test check as we considered appropriate and according to information and explanation provided to us, we enclose in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the said Order.

As required by section 43(3) of the Act, we report that:

2.1 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

2.2 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.

2.3 The Balance Sheet and Profit and Loss statement dealt with by this report are in agreement with the books of account.

2.4 In our opinion, the aforesaid financial statements comply with the accounting standards specified under section 33 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014

2.5 On the basis of written representations received from the Directors, as on March 3 1, 236, taken on record by the Board of Directors, none of the Directors are disqualified as on March 31,206 from being appointed as a Director under section 164(2) of the Act

2.6 In our opinion the company has adequate internal financial controls system in place and the operating effectiveness of such controls as per size of the business

2.7 With respect to the others matters to be included in the auditor’s report in accordance with Rule H of the companies (audit and auditors) rules 204, in our opinion and to the best of our information and according to the explanations given to us.

(i) There were no pending litigations which would impact the financial position of the company.

(ii) The company did not have any material foreseeable losses on long term contracts including derivative contracts

(iii) There were no amounts which were required to be transferred to the Investor Education and Protection fund by the company

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

1 Fixed Assets

(a)

Whether the company is maintaining proper records shown full particulars, including quantitative details and situation fixed assets;

knifes

of

(b)

Whether these fixed assets have been physically verified the management at reasonable intervals; whether an material discrepancies were noticed on such verification a if so, whether the same have been properly dealt with in the books of account;

by The management conducted physical verification o Lacertian fixed assets in accordance with its policy o Physical verification in a phased manner. In ou Leo pinion, such frequency is reasonable having regard the size of the Company and the nature of its fixit assets. As explained to us, the discrepancies notice on physical verification as compared to book record maintained, were not material and have been properly dealt with in the books of account.

(c)

Whether title deeds of immovable properties are held in t name of the company. If not, provide details thereof.

YES

2

Inventories

Whether physical verification of inventory has be conducted at reasonable intervals by the management an whether any material discrepancies were noticed and if s how they have been dealt with in the books of account;

The management conducted physical verification o inventory in accordance with its policy of physical verification in a phased manner. In our opinion, such frequency is reasonable having regard to the size the Company and the nature of its inventory. A explained to us, the discrepancies noticed on physical verification as compared to book records maintained were not material and have been properly dealt with i the books of account.

3

Loan Granted

Whether the company has granted any loans, secured < unsecured to companies, firms, LLPs or other part covered in the register maintained u/s 89 of the Companies Act,203. If so,

YE S

yes

(a)

Whether the terms and conditions of the grant of such lo are not prejudicial to the company’s interest;

an As per explanation provided to us, YE S

(b)

Whether receipt of the principal amount and interest regular . If not provide details thereof; and

After .K.Singh, Manager of the company was given interest free loan but has not refund amount of 1 8,01506/-

(c)

If overdue amount is more than rupees five lakhs, wheth reasonable steps have been taken by the company fo recovery of the principal and interest;

YE S, Company has taken proper steps for recovery '' amount. Interest was not applicable.

4

Loans, Investments and gurantees

In respect of loans, investments and guarantees, wheth provisions of Section 85 and 186 of the Companies Act, 203 have been complied with. If not, provide details thereof.

eAs explained to us and from the records verified, th company has generally complied the provision of section 85and 86of The Companies Act,203.

5

Deposit

In case the company has accepted deposits, whether th directives issued by the Reserve Bank of India and tl provisions of sections 73 to 76 or any other relevar provisions of the Companies Act, 20B and the rules framed there under, where applicable, have been complied with? If not, the nature of such contraventions be stated; If an or has been passed by Company Law Board or Nationa Company Law Tribunal or Reserve Bank of India or ai court or any other tribunal, whether the same has be complied with or not?

NIL

6

Cost Records

Whether maintenance of cost records has been specified the Central Government under sub-section (1) of section 4 of the Companies Act,20B and whether such accounts and records have been so made and maintained;

N A

7

Statutory dues

(a)

whether the company is regular in depositing undispute statutory dues including provident fund, employees'' sta insurance, income-tax, sales-Lax, , service tax, duty o customs, duty of excise, value added tax, and any other statutory dues with the appropriate authorities and if not, extent of the arrears of outstanding statutory dues as at last day of the financial year concerned for a period of mo than six months from the date they became payable, shall b indicated by the auditor.

dAccording to the information and explanations give: eto us and the record examined by us, the company is f generally regular in depositing with appropriat authorities undisputed statutory dues includi tSkrovident Fund,Employees State Insurance, Income tflhK, Sales-tax and other material Statutory Du applicable to it. There were no arrears as at, 31 sMarch, 206 for a period of more than six months from the date they became payable.

(b)

Where dues of income tax or sales tax or service tax or du of customs or duty of excise or value added tax have no been deposited on account of any dispute, then the amount involved and the forum where dispute is pending shall b mentioned. (A mere representation to the concern Department shall not be treated as a dispute).

NA

Particulars F.Y.

AMOUNT (In Rs.) STATUS

8

Default in Repayment

Whether the company has defaulted in repayment of dues a financial institution or bank or debenture holders? If y the period and amount of default to be reported (in case o banks and financial institutions, lender wise details to provided).

yes

9

Term Loan/ Money raised

Whether moneys rose by way of public issue/ follow-o offer (including debt instruments) and term loans we applied for the purposes for which those are raised. If n the details together with delays / default and subsequent rectification, if any, as may be applicable, be reported;

YES

10

Fraud

Whether any fraud by the company or any fraud on t Company by its officers/ employees has been noticed o reported during the year; If yes, the nature and the amount involved be indicated.

To the best of our knowledge and according to the r information and explanations given to us, there have been no cases of fraud on or by the Company notice or reported during the year under report

I

11

Managerial Remuneration

Whether managerial remuneration has been paid / provid in accordance with the requisite approvals mandated by the provisions of section 97 read with schedule V to the Companies Act? If not, state the amount involved and step taken by the company for securing refund of the same.

YES

12

Nidhi Company

Whether the Nidhi Company has complied with the N Owned Fund in the ratio of 120to meet out the liability and whether the N idhi Company is maintaining P/o liquid asset to meet out the unencumbered liability.

NA

13

Related Parties Transactions

Whether all transactions with the related parties are compliance with Section B8 and 77 of Companies Act, 2013 where applicable and the details have been disclosed in the Financial Statements etc as required by the account standards and Companies Act,20B.

As per the information and explanation provided to us and records produced before us, the company has generally complied with the provisioning

14

Preferential allotment / Private placement

Whether the company has made any preferential aliment private placement of shares or fully or partly convert debentures during the year under review and if so, as whether the requirement of Section 42 of the Company Act, 20B have been complied and the amount raised have been used for the purposes for which the funds were raise If not, provide details thereof.

NO

15

Non-cash Transactions

Whether the company has entered into any non-cas transactions with Directors or persons connected with h and if so, whether provisions of Section 92 of Companies Act,20B have been complied with.

NA

16

Registration with RBI

Whether the company is required to be registered und section 45-IA of the Reserve Bank of India Act, 934 and i: so, whether the registration is obtained.

NA

For R. Kejriwal & Co.

Chartered Accountants

Sd/-Nidhi Shah Partner

M.No. 163177 FRN.133558W

Place : SURAT

Date :27.05.2016


Mar 31, 2015

REPORT ON THE FINANCIAL STATEMENTS

We have audited the accompanying financial statements of Siddhi Vinayak Shipping Corporation Limited (Formerly Known as Si. Vi. Shipping Corporation Limited) ("the company'') which comprises Balance Sheet as at March 31, 2015 and the Statement of Profit and Loss, 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 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 circumstance 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 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 so far in relates to the Balance Sheet, of the state of affairs of the company as at March 31, 2015; and

(b) in so far it relates to the Statement of Profit and Loss, of the profit of the company for the year ended on that date and

(c) in so far it relates to the statement of cash flow ,of the cash flow of the company as at march 31,2015

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. As required by the Companies (Auditor''s Report), Order, 2015 (order dated 10.04.2015), issued by the Central Government of India in terms of section 143(11) of the Companies Act, 2013 (hereinafter referred to as ''order''), and on the basis of test check as we considered appropriate and according to information and explanation provided to us, we enclose in the Annexure "a" statement on the matters specified in paragraphs 3 and 4 of the said Order.

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

2.1 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.

2.2 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.

2.3 The Balance Sheet and the Statement of Profit and Loss and the cash flow statement dealt with by this report are in agreement with the books of account.

2.4 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.

2.5 On the basis of written representations received from the directors, as on 31st March, 2015, taken on record by the Board of directors, we report that none of the directors are disqualified as on 31st March, 2015 from being appointed as a director under section 164(2) of the Act.

2.6 With respect to the others matters to be included in the auditors report in accordance with Rule 11 of the companies (audit and auditors) rules 2014, in our opinion and to the best of our information and according to the explanations given to us.

I. There were no pending litigations which would impact the financial position of the company.

II. The company did not have any material foreseeable losses on long term contracts including derivative contracts.

III. There were no amounts which were required to be transferred to the Investor Education and Protection fund by the company.

ANNEXURE TO AUDITORS'' REPORT

(Referred to in our report of even date to the members of SIDDHI VINAYAK SHIPPING CORPORATION LTD on the financial statements 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 audit, we state that:

i. FIXED ASSETS:

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

b) According to information and explanation given to us, during the year, the management conducted physical verification of certain fixed assets in accordance with its policy of physical verification in a phased manner. In our opinion, such frequency is reasonable having regard to the size of the Company and the nature of its fixed assets. As explained to us, the discrepancies noticed on physical verification as compared to book records maintained, were not material and have been properly dealt with in the books of account.

ii. INVENTORIES:

a) As explained to us, the management has conducted physical verification of stocks of raw materials, finished goods and stores and spares at reasonable intervals during the year.

b) In our opinion, and according to the information and explanations given to us, the procedures during the year for physical verification of inventory, followed by the management are reasonable and adequate in relation to the size of the Company and nature of its business.

c) On the basis of our examination of inventory records, we are of the opinion that the Company has maintained proper records of inventory. Discrepancies noticed on physical verification of inventory as compared to the book records were not material and these have been properly dealt with in the books of account.

iii. LOANS:

a) In our opinion and according to the information and explanations given to us, the Company has granted a loan of Rs 10.00 lacs, secured or unsecured to parties covered in the register maintained under Section 189 of the Act and o/s balance as on 31.03.2015 was Rs 8.01 lacs.

b) In our opinion, and according to the information and explanations given to us, the loan was granted interest free as per terms of service and repayable after 1 year of granting of loan. So, no repayment obligation has arisen as on balance sheet date.

c) In our opinion, and according to the information and explanations given to us, there were no overdue amounts to be received by the company.

iv. INTERNAL CONTROL PROCEDURES:

In our opinion and according to information and explanation given to us, during the year under report, 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 for the sale of goods and services. Further, on the basis of our examination of books and records of the Company, and according to the information and explanations given to us, we have neither come across nor have been informed of any continuing failure to correct major weaknesses in the aforesaid internal control procedures.

v. PUBLIC DEPOSITS:

In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public, to which the directives issued by the Reserve Bank of India and the provisions of Section 73 and 76 or any other provisions of the Companies Act, 2013 or the rules framed there under apply.

vi. COST RECORDS:

As informed to us the Central Government had not prescribed maintenance of the cost records under Sub Section (1) of Section 148 of the Companies Act, 2013 in respect to the activities carried out by the company.

vii. STATUTORY DUES:

a) The company is generally regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Employee''s State Insurance, Income-tax, Sales- tax, and other material Statutory Dues applicable to it. There were no arrears as at, 31st March, 2015 for a period of more than six months from the date they became payable.

b) According to the records of the Company, no dues of sales tax, income- tax, customs, wealth-tax, excise duty, cess which have not been deposited on account of disputes.

Particulars R elevant F.Y. Amount Current Status

Income Tax --------- NIL N.A.

Other Laws --------- NIL N.A.

c) In our opinion and according to the information and explanations given to us company was not required to transfer of any amount to investor education and protection fund in accordance with the relevant provisions of the Companies Act.

viii. ACCUMULATED LOSSES:

The company has not been registered for a period of more than five year and has neither accumulated losses at the end of the financial year nor has it incurred cash loss, in the financial year under report or in the immediately preceding financial year.

ix. REPAYMENT OF DUES OF FINANCIAL INSTITUTIONS:

According to the information and explanations given to us, the Company has not committed default in repayment of dues to banks and financial institutions. The Company has not borrowed any funds by way of issue of debentures.

x. GUARANTEE:

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.

xi. UTILIZATION OF TERM LOAN FUND:

In our opinion and accordingly the information and explanations given to us, Term Loan obtained during the year was applied for the purpose for which it was obtained.

xii. FRAUD ON OR BY THE COMPANY:

To the best of our knowledge and according to the information and explanations given to us, there have been no cases of fraud on or by the Company noticed or reported during the year under report.

For R Kejriwal & Co. Chartered Accountants. Firm Reg. No. 133558W

Place: Surat Nidhi Shah Date: 30/05/2015 Partner. Mem. No. -163177 AAPFR9048C


Mar 31, 2014

We have audited the accompanying financial statements of SI. VI. SHIPPING CORPORATION LTD ("the Company"), which comprise the Balance Sheet as at March 31, 2014 and the Statement of Profit and Loss 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 that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion:

In our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

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

(b) in the case of the Profit and Loss Account, of the profit for the year ended on that date and

(c) 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:

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.

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

the Balance Sheet, and Profit & Loss Account dealt with by this report are in agreement with the Books of Account;

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

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

Annexure to Auditors'' Report (Referred to in paragraph 3 of our report of even date to the members of SI. VI. SHIPPING CORPORATION LTD. On the financial statements for the year ended March 31, 2014)

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

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

(b) According to information and explanation given to us, during the year, the management conducted physical verification of certain fixed assets in accordance with its policy of physical verification in a phased manner. In our opinion, such frequency is reasonable having regard to the size of the Company and the nature of its fixed assets. As explained to us, the discrepancies noticed on physical verification as compared to book records maintained, were not material and have been properly dealt with in the books of account.

(c) The Company has not disposed off substantial part of fixed assets during the year.

(ii) (a) As explained to us, the management has conducted physical verification of stocks of raw materials, finished goods and stores and spares at reasonable intervals during the year, except in case of stocks lying with third parties, in respect of which certificates of stocks held as at year-end have been received for a substantial portion.

(b) In our opinion, and according to the information and explanations given to us, the procedures during the year for physical verification of inventory, followed by the management are reasonable and adequate in relation to the size of the Company and nature of its business.

(c) On the basis of our examination of inventory records, we are of the opinion that the Company has maintained proper records of inventory. Discrepancies noticed on physical verification of inventory as compared to the book records were not material and these have been properly dealt with in the books of account.

(iii) (a) In our opinion and according to the information and explanations given to us, the Company has not granted any loans, secured or unsecured to parties covered in the register maintained under Section 301 of the Act. Consequently, the provisions of sub- clauses (b), (c) and (d) of clause (iii) of paragraph 4 of the Order are not applicable.

(b) During the Year the company has taken/accepted loans from 7 parties covered in the Register maintained under Section 301 of the Companies Act, 1956 the balance outstanding from such parties at the end of the year is Rs. 391.70 Lacs.

(c) . In our opinion, and according to the information and explanations given to us, the rate of interest and other terms and conditions on which the loans are availed are prima facie, not prejudicial to the interest of the Company.

(iv) In our opinion and according to information and explanation given to us, during the year under report, 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 for the sale of goods. Further, on the basis of our examination of books and records of the Company, and according to the information and explanations given to us, we have neither come across nor have been informed of any continuing failure to correct major weaknesses in the aforesaid internal control procedures.

(v) In respect of transaction covered under section 301 of the Act,

(a) To the best of our knowledge and belief and according to the information and explanations given to us, we are of the opinion that the transactions that need to be entered into the register maintained under section 301 of the Act have been so entered.

(b) In our opinion and according to the information and explanation given to us, transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Act and exceeding the value of Rs. 5 Lacs 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 where such market prices are available.

(vi) In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public, to which the directives issued by the Reserve Bank of India and the provisions of Section 58A and 58AA or any other provisions of the Companies Act, 1956 or the rules framed there under apply.

(vii) Commensurate with its size and nature of its business in our opinion the company has in house internal audit system.

(viii) The accounts and records maintained by the company pursuant to the Rules made by the Central Government for the maintenance of cost records under section 209 (1) (d) of the Act are not applicable to the company.

(ix)

(a) The company is generally regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Employee''s State Insurance, Income-tax, Sales-tax, and other material Statutory Dues applicable to it. There were no arrears as at, 31st March, 2014 for a period of more than six months from the date they became payable.

(b) According to the records of the Company, no dues of sales tax, income- tax, customs, wealth-tax, excise duty, cess which have not been deposited on account of disputes

(x) The Company has neither accumulated losses at the end of the financial year nor has it incurred cash loss, in the financial year under report nor in the immediately preceding financial year.

(xi) According to the information and explanations given to us, the Company has not committed default in repayment of dues to banks and financial institutions. The Company has not borrowed any funds by way of issue of debentures.

(xii) In our opinion, and according to the information and explanations given to us, during the year under report, the Company has not granted any loans or advances against security by way of pledge of shares and securities; accordingly, the provisions of clause (xii) of paragraph 4 of the Order are not applicable.

(xiii) In our opinion, the Company is not a chit fund / nidhi / mutual benefit fund / society and accordingly, the provisions of clause (xiii) of the Order are not applicable.

(xiv) According to the information and explanations given to us, the Company is not dealing or trading in shares, securities and other investments, and accordingly the provisions of clause (xiv) of paragraph 4 of the Order are not applicable to the Company.

(xv) 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.

(xvi) In our opinion and accordingly the information and explanations given to us, the Company has not raised any term loan during the year.

(xvii) 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 no funds raised on a short- term basis have been used for long-term investment.

(xviii) The Company has made preferential allotment of shares during the year to the parties covered in the register maintained under Section 301 of the Act at face value of the shares, thus at a price not prejudicial to the interests of the company.

(xix) The Company has not issued any debenture during the year.

(xx) The Company has disclosed the end use of funds raised through public issue during the year under report and it has been verified by us.

(xxi) To the best of our knowledge and according to the information and explanations given to us, there have been no cases of fraud on or by the Company noticed or reported during the year under report.

For R Kejriwal & Co. Chartered Accountants (FRN : 133558W)

PLACE : SURAT RUCHI KEJRIWAL DATE : 30.05.2014 Partner M.No.145801 AAPFR9048C

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