Auditor Report of Solid Containers Ltd.

Mar 31, 2014

1. We have audited the accompanying financial statements of Solid Containers Limited ("the Company") which comprise the Balance Sheet as at 31 March 2014, the Statement of Profit and Loss and the 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

2. Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956 ("the Act") read with the General Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013 and other accounting principles generally accepted in India. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

AUDITOR''S RESPONSIBILITY

3. 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.

4. 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, but not for the purpose of expressing an opinion on the effectiveness of the Company''s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

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

BASIS FOR QUALIFIED OPINION

6. Attention is drawn to Note 18 regarding substantial operating losses due to closure of commercial operations of the Company and in the absence of any rehabilitation measures, the Company is no longer a going concern. The Company has not made any adjustment to the financial statements relating to recoverability of recorded asset amounts and in respect of liabilities as might be necessary for compilation, where the Company is no longer a going concern. The effect on the Loss for the year and Net Worth of the Company is unascertained. Our audit opinion on the financial statements for the year ended 31 March 2013 was also qualified in respect of the above matter.

QUALIFIED OPINION

7. 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 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 31 March 2014;

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

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

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

8. 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.

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

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

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

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

(d) In our opinion, the Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Act read with the General Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013 and other accounting principles generally accepted in India; and

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

ANNEXURE REFERRED TO IN PARAGRAPH 8 UNDER THE HEADING "REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS" OF OUR REPORT OF EVEN DATE

(i) (a) As explained to us, the company has maintained proper records showing full particulars including quantitative details and situation of fixed assets but the same have not been produced for verification as reported to be untraceable.

(b) The fixed assets are not physically verified during the year.

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

(ii) Due to the closure of the commercial operations, the company is not having inventory during the year and hence, clauses (ii) (a), (ii) (b), (ii) (c) of the Order regarding inventories are not applicable to the Company.

(iii) (a) The Company has not granted any loan, secured or unsecured, to companies, firms or other parties covered in the register maintained under Section 301 of the Act.

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

(iv) In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business with regard to purchase of inventory, fixed assets and sale of goods and services. However there are no purchase of inventory and sale of goods and services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in the internal control system in respect of the aforesaid areas.

(v) According to the information and explanations given to us, there are no contracts or arrangements the particulars of which are required to be entered into the register maintained in pursuance to Section 301 of the Act.

(vi) The Company has not accepted any deposits from the public during the year.

(vii) As informed to us, the company did not have an internal audit system during the year.

(viii) In view of closure of manufacturing activities, the report on the maintenance of cost records as prescribed by the Central Government under section 209(1)(d) of the Act is not required.

(ix) According to the records of the Company examined by us and information and explanations given to us:

(a) Undisputed Statutory dues including provident fund, investor education and protection fund, income tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess and others as applicable have generally been regularly deposited with the appropriate authorities except delay in few cases. There are no undisputed amounts payable in respect of the aforesaid dues outstanding as at 31 March, 2014 for a period of more than six months from the date they became payable.

(b) According to the records of the Company, the dues of excise duty and income tax which are not deposited on account of any dispute are as under:

Name of Nature of Amount in Period to Forum where dispute the Statute the Dues Rupees which the is pending amount relates

Central Excise Excise Duty 354,616 FY 1983-84 to Commissioner of Act, 1944 FY 1985-86 Central Excise (Appeals), Mumbai

7,276,028 FY 1994-95 to Commissioner of FY 1997-98 Central Excise (Appeals), Thane

237,741 FY 1994-95 to Assistant FY 1995-96 Commissioner of Central Excise, Kalyan

55,046 FY 1994-95 Superintendent of Central Excise, Kalyan

58,549 FY 1994-95 Assistant Commissioner of Central Excise, Dadar

(x) According to the records of the company and in our opinion, the Company''s accumulated losses at the end of the financial year are more than fifty percent of its net worth. Further, the Company has incurred cash losses during the financial year ended 31 March 2014 and in the immediately preceding financial year.

(xi) The Company has not taken any loans from banks/financial institutions or issued debentures during the year.

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

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

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

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

(xvi) The Company has not raised any term loans during the year.

(xvii) According to the information and explanations given to us, and on an overall examination of the Balance Sheet of the Company and related information as made available to us, we are of the opinion that funds raised on short-term basis aggregating to Rs. 2,120,000/- have been used for long term purposes for purchase of fixed assets.

(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 secured debentures during the year.

(xx) The Company has not raised any money by public issue during the year.

(xxi) Based on the audit procedures performed and according to the information and explanations given to us, we report that no fraud on or by the Company has been noticed or reported during the year.

For MGB & Co Chartered Accountants Firm Registration Number 101169W

Sanjay Kothari Partner Membership Number 048215

Mumbai, 30 May 2014

---

Mar 31, 2013

REPORT ON THE FINANCIAL STATEMENTS

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

MANAGEMENTS RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

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

AUDITORS RESPONSIBILITY

3. 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.

4. 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.

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

BASIS FOR QUALIFIED OPINION

6. Attention is drawn to Note 18 regarding substantial operating losses due to closure of commercial operations of the company and in the absence of any rehabilitation measures, the Company is no longer a going concern. The Company has not made adjustment to accounts relating to recoverability of recorded asset amounts and in respect of liabilities as might be necessary for compilation, where the Company is no longer a going concern. The effect on the Loss for the year and Net Worth of the company is unascertained. Our audit opinion on the financial statements for the year ended 31 March 2012 was also qualified in respect of the above matter.

OPINION

7. In our opinion and to the best of our information and according to the explanations given to us, except for possible effects of the matters described in the basis of the Qualified Opinion paragraph above, 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 31 March 2013;

b) In the case of the Statement of Profit and Loss, of the Loss of the company for the year ended on that date; and

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

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

8. 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.

9. As required by section 227(3) of the Act, 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 purpose 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 Cash Flow Statement dealt with by this Report are in agreement with the books of account;

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

(v) On the basis of written representation received from the directors as at 31 March 2013 and taken on record by the Board of Directors, none of the directors is disqualified as at 31 March 2013, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Act.

(i) (a) As explained to us, the company has maintained proper records showing full particulars including quantitative details and situation of fixed assets but the same have not been produced for verification as reported to be untraceable.

(b) The fixed assets are not physically verified during the year.

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

(ii) Due to the closure of the commercial operations, the company is not having inventory during the year and hence, clauses (ii) a, (ii) b, (ii) c of the Order regarding inventories are not applicable to the Company

(iii) (a) The Company has not granted any loan, secured or unsecured to companies, firms or other parties covered in the register maintained under Section 301 of the Act.

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

(iv) In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business with regard to purchases of inventory, fixed assets and sale of goods and services. During the course of audit, we have not observed any continuing failure to correct major weaknesses in the aforesaid internal control systems.

(v) According to the information and explanations given to us, we are of the opinion that there are no contracts or arrangements the particulars of which are required to be entered into the register in pursuance of Section 301 of the Act.

(vi) The Company has not accepted any deposits from the public during the year.

(vii) As informed to us, the company did not have an internal audit system during the year.

(viii) In view of closure of manufacturing activities, the report on the maintenance of cost records as prescribed by the Central Government under section 209(1 )(d) of the Act is not required.

(ix) According to the records of the Company examined by us and information and explanations given to us:

(a) The Company has been regular in depositing its Statutory dues including provident fund, investor education and protection fund, employees state insurance, income tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess and others as applicable except delays in few cases. There are no undisputed amounts payable in respect of the aforesaid dues which have remained outstanding as at 31 March, 2013 for a period of more than six months from the date they became payable.

b) There are no disputed dues on account of wealth tax, custom duty, sales tax / value added tax, service tax and cess. Dues on account of disputed excise duty and income tax which have not been deposited are as under:

Name of Nature of Amount in Period to which Forum where dispute the Statute the Dues Rupees the amount relates is pending

Central Excise Excise Duty * 1,434,197 FY 1983-84 to Commissioner of Central Act, 1944 FY 1985-86 Excise (Appeals), Mumbai

7,276,028 FY 1994-95 to Commissioner of Central FY 1997-98 Excise(Appeals), Thane

237,741 FY 1994-95 to Assistant Commis sioner FY 1995-96 of Central Excise, Kalyan

55,046 FY 1994-95 Superintendent of Central Excise, Kalyan

58,549 FY 1994-95 Assistant Commissioner of Central Excise , Dadar

* Subsequently demand notice received for Rs. 795,283/-

(x) According to the records of the company and in our opinion, the Company''s accumulated losses at the end of the financial year are more than fifty percent of its net worth. Further, the Company has incurred cash losses during the current financial year ended 31 March 2013 and in the immediately preceding financial year.

(xi) The Company has not taken any loan from bank / financial institution or issued debentures during the year.

(xii) According to the information and explanations given to us, the Company has not granted any loans or advances on the basis of security by way of pledge of shares, debentures and other securities during the year.

(xiii) The Company is not a chit fund / nidhi / mutual benefit fund / societies.

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

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

(xvi) The Company has not raised any term loan during the year.

(xvii) On the basis of an overall examination of the Balance Sheet and the related information as to utilization of funds, we report that short term funds have not been used for long term investments except for loss incurred during the year.

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

(xix) The Company had not issued any secured debentures during the year.

(xx) The Company has not raised any money by public issue during the year.

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

For MGB & Co

Chartered Accountants

Firm Registration Number 101169W

Sanjay Kothari

Partner

Membership Number 048215

Mumbai, May 29, 2013

---

Mar 31, 2012

To, The Members of SOLID CONTAINERS LIMITED

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

2. We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from 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 (the ''Order'') issued by the Central Government of India in terms of section 227(4A) of the Companies Act, 1956 ("the Act") and on the basis of such checks as we considered appropriate and according to the information and explanations given to us, we annex hereto a statement on the matters specified in paragraph 4 and 5 of the said order.

4. Further to our comments in the Annexure referred to Paragraph (3) 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 accounts as required by law have been kept by the company, so far as appears from our examination of the books;

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

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

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

vi) In our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with the significant accounting policies and notes thereon, give the information required by the Act in the manner so required, but in view of Note 18 regarding substantial operating losses due to closure of commercial operations of the company and in the absence of any rehabilitation measures, the Company is no longer a going concern. The Company has not made adjustment to accounts relating to recoverability of recorded asset amounts and in respect of liabilities as might be necessary for compilation, where the Company is no longer a going concern. The effect on the Loss for the year and Net Worth of the company is unascertained. Considering the impact of above, the accounts does not give a true and fair view in conformity with the accounting principles generally accepted in India.

(i) In the case of the Balance Sheet, of the state of affairs of the Company as at 31 March 2012;

(ii) In the case of Statement of Profit and Loss, of the Loss of the Company for the year ended on that date; and

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

ANNEXURE REFERRED TO IN PARAGRAPH 3 OF AUDITORS* REPORT TO THE MEMBERS OF SOLID CONTAINERS LIMITED ON THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2012.

(i) (a) As explained to us, the company has maintained proper records showing full particulars including quantitative details and situation of fixed assets but the same have not been produced for verification as reported to be untraceable.

(b) The fixed assets are not physically verified during the year.

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

(ii) Due to closure of commercial operations, the Company is not having any inventory during the year and hence, clauses (ii) a, (ii) b, (ii) c of the Order regarding inventories are not applicable to the Company.

(iii) (a) According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under Section 301 of the Act.

(b) According to the information and explanations given to us, 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) In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business. However, there are no purchases of inventory, fixed assets and sale of goods and services during the year. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in the internal control systems in respect of the aforesaid areas. ''

(v) According to the information and explanations given to us, there are no contracts or arrangements the particulars of which are required to be entered into the register in pursuance of Section 301 of the Act.

(vi) 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.

(vii) As informed to us, the Company did not have internal audit system during the year.

(viii) In view of closure of manufacturing activities, the report on the maintenance of cost records as prescribed by the Central Government under section 209 (1)(d) of the Act is not required.

(ix) According to information and explanation given to us and on the basis of examination of records of the Company;

(a) The Company has been regular in depositing with appropriate authorities undisputed statutory dues including provident fund, investor education and protection fund, employees state insurance, income tax, sales tax/ value added tax, wealth tax, service tax, custom duty, excise duty, cess and other material statutory dues applicable except delays in few cases. There are no undisputed amounts payable in respect of aforesaid dues outstanding as at 31 March 2012 for a period of more than six months from the date they became payable.

(x) According to the records of the company and in our opinion, the Company''s accumulated losses at the end of the financial year are more than fifty percent of its net worth. Further, the Company has incurred cash losses during the financial year ended 31 March 2012 and in the immediately preceding financial year.

(xi) The company has not taken loans from financial institutions or banks and has not issued debentures. Therefore para 4(xi) of the order is not applicable.

(xii) According to the information and explanation given to us, the company has not granted any loans or advances on the basis of security by way of pledge of shares, debentures and other securities.

(xiii) The Company is not a chit fund or a nidhi / mutual benefit fund J society.

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

(xv) The Company has not given any guarantee for loans taken by others from bank or financial institutions during the year.

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

(xvii) According to the information and explanations given to us and examination of the Balance Sheet of the company and related information made available to us, we report that no short term funds have been used for long term investments except for Loss incurred during the year.

(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 during the year.

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

(xx) The company has not raised any money by way of public issues during the year.

(xxi) Based on the audit procedures performed and according to the information and explanations given to us, we report that no fraud on or by the Company has been noticed or reported during the year.

For MGB & Co

Chartered Accountants

Firm Registration Number 101169W

Sanjay Kothari

Partner

Membership Number 048215

Mumbai, 30 August 2012

---

Mar 31, 2010

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

2. We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from 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 section 227(4A) of the Companies Act, 1956, and on the basjs of such checks as we considered appropriate and according to the information and explanations given to us, we enclose in the annexure a statement on the matters specified in paragraph 4 and 5 of the said order to the extent applicable.

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

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

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

c) The Balance Sheet and Profit and Loss Account dealt with by this report are in agreement with the books of account.

d) In our opinion, the Balance Sheet, Profit and Loss Account and 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 to the extent applicable to the Company.

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

f) In our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with the notes thereon, give in the prescribed manner the information required by the Act, but in view of Note No. 4 regarding substantial operating losses due to closure of commercial operations of the company and in the absence of any rehabilitation measures the company is no longer a going concern. The Gompany has not made adjustment to accounts relating to recoverability of recorded asset amounts and in respect of liabilities as might be necessary for compilation, where the Company is no longer a going concern. The effect on the Loss for the year and Net Worth of the company is unascertained.

Considering the impact of above, the accounts does not give a true and fair view in conformity with the accounting principles generally accepted in India.

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

(ii) In the case of Profit and Loss Account, the loss for the year ended on that date; and

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



ANNEXURE REFERRED TO IN PARAGRAPH 3 OF AUDITORS REPORT TO THE MEMBERS OF SOLID CONTAINERS LIMITED ON THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2010.



(1) (a) As explained to us, the company has maintained proper records showing full particulars including quantitative details and situation of fixed assets but the same have not been produced for verification as reported to be untraceable.

(b) The fixed assets are not physically verified during the year.

(c) During the year, the Company has not sold a substantial part of fixed assets.

(2) Due to closure of commercial operations company is not having any inventory during the year and hence, clauses (ii) a, (ii) b, (ii) c of the Order regarding inventories are not applicable to the company.

3) (a) The Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 301 of the Act. Accordingly the requirements of the clause (b), (c) and (d) are not applicable.

(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 companies Act. Accordingly, sub-clause (f) and (g) are not applicable.

4) In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the company and the nature of its business. However, there are no purchases of inventory, fixed assets and sale of goods and services during the year.

5) In our opinion and according to the information and explanation given to us, there are no transactions that need to be entered in to register in pursuance of section 301 of the Act.

6) According to the information and explanations given to us, the company has not accepted any deposits from the public during the year.

7) As informed to us, the company did not have Internal Audit System during the year.

8) In view of closure of manufacturing activities, the report on the maintenance of cost records as prescribed by the Central Government under section 209 (1)(d) of the Companies Act, 1956 is not required.

(9) a) According to information and explanation given to us and on the basis of examination of records of the company, the company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund, investor education and protection fund, employees state insurance, income tax, sales tax/Value Added Tax, wealth tax, service tax, custom duty, excise duty, cess and other material statutory dues applicable except delay in few cases. There are no undisputed amounts payable in respect of the aforesaid dues outstanding as at 31 March 2010 for a period of more than six months from the date they became payable.

b) According to the records of the company disputed dues in respect of income tax, wealth tax, service tax, sales tax, custom duty, excise duty and cess which have not been deposited are as under:

Name of the Nature of Amount Forum where dispute

Statutes Dues in Rupees is pending

Central Excise Act Excise Duty 1,894,007 Commissioner of

(FY 2007-08) Central Excise, Dadar.

Central Excise Act Excise Duty 292,787 Assistant Commissioner of (FY 1994 - 95) Central Excise, Kalyan

Central Excise Act Excise Duty 58,549 Assistant Commissioner of (FY 1994 - 95) Central Excise, Dadar

Central Excise Act Excise Duty 1,434,197 Assistant Commissioner of (FY 1983 - 85) Central Excise, Kalyan

10) According to the records of the company and in our opinion, the Companys accumulated losses at the end of the financial year are more than fifty percent of its net worth. Further, the Company has incurred cash losses during the financial year ended March 31, 2010 and in the immediately preceding financial year.

11) The company has not taken loans from Financial Institutions or Banks and has not issued debentures. Therefore para 4(xi) of the order is not applicable.

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

13) The provisions of any special statue applicable to Chit Fund/Nidhi/Mutual benefit Fund/ Society are not applicable to the company.

14) The nature of Companies business / activities during the year does not include dealing in shares, securities, debentures or other investments; hence the requirement of offering comments on clause (xiv) is not applicable.

15) The Company has not given any guarantee for loans taken by others from bank or financial institutions.

16) As the Company has not taken any term loan, hence para 4(xvi) of the order is not applicable.

17) On the basis of review of utilization of funds which is based on an overall examination of the Balance Sheet of the Company and related information as made available to us, we report that no funds raised on short-term basis have been used for long-term purposes.

18) As the company has not made any preferential allotment of shares to parties or companies covered in the register maintained under section 301 of the Act, para 4(xviii) of the order is not applicable.

19) As the company has not issued any debentures during the year, para 4(xix) of the order is not applicable.

20) The company has not raised any money by way of public issues during the year.

21) On the basis of our examination and according to the information and explanations given to us, no fraud on or by the company has been noticed or reported during the year.

For MGB & Co

Chartered Accountants

Firm Registration No. 101169W

Sanjay Kothari

Partner

Membership No.: 48215

Place : Mumbai

Date : 23 August, 2010