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Auditor Report of Sri Arumuga Enterprise Ltd.

Mar 31, 2014

We have audited the accompanying financial statements of Sri Arumuga Enterprise Limited (''The Company'') which comprise the balance sheet as at 31st March 2014, the statement of profit & loss and the cash flow statement for the year then ended and a summary of significant accounting policies and other explanatory information.

Mangement''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") read with General Circular 15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013. This responsibility includes 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 in the Standards of 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 financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of 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 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 confirming 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 31stMarch, 2014

(ii) in the case of the Statement of Profit & Loss of the Profit for the year ended on that date ; and

(iii) in the case of Cash Flow Statement of the Cash Flows for the year ended on that date

Report on Other Legal and Regulatory Requirements :

1. As required by the Companies ( Auditor''s Report) Order 2003 ("the Order "), as amended , issued by the Central Government of India in terms of Subsection (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 & Loss and Cash Flow Statement dealt with in this Report are in agreement with the Books of Account;

d) In our opinion the Balance Sheet, Statement of Profit & Loss and Cash Flow Statement comply with the Accounting Standards referred to in Sub Section (3C) of Section 211 of the Companies Act, 1956 and read with General Circular 15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013.

e) On the basis of written representation received from the Directors as of 31st March, 2014 and taken on record by the Board of Directors, We report that none of the Directors is disqualified as of 31st March, 2014 from being appointed as a Director in terms of clause (g) of Subsection (1) of Section 274 of the Companies Act, 1956.

Annexure to the Auditors'' Report :

The Annexure referred to in our report to the members of Sri Arumuga Enterprise Limited (''the Company'') for the year ended 31st March 2014. We report that :

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

(b) The fixed assets of the company have been physically verified by the management during the year and no material discrepancies were noticed on such verification.

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

(ii) (a) The Stock in trade (including raw material) and stores, spare parts of the Company at all its locations have been physically verified by the Management during the year.

(b) In our opinion, the procedures for physical verification of stock followed by the Management are reasonable and adequate in relation to the size of the Company and nature of its business.

(c) The Company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stock and book records were not material.

(iii) (a) The Company has taken Unsecured Loans from parties listed in the register maintained under Section 301 of the Companies Act, 1956. Loan for Rs. 1045.34 lakhs has been taken during the year under report from four parties and balance as of 31st March 2014 is Rs. 295.96 lakhs. The company has not paid any interest on the loans taken.

(b) The Company has granted interest free advances to parties listed in the register maintained under section 301 of the Companies Act, 1956. Advances for Rs. 3.84 Lakhs has been given during the year under report to one party and balance as of 31st March 2014 is Nil. The company has not received any interest on loans advanced.

(iv) In our opinion, the internal control procedures of the company relating to purchases of stores, raw materials including components, plant & machinery, equipments and other similar assets and for sale of goods & services are commensurate with its size and nature of its business. During the course of our audit, we have not observed any continuing failure to correct major weakness in internal control systems.

(v) (a) According to the information and explanations given to us, we are of the opinion that the particulars of contracts or arrangements that need to be entered into the register maintained under section 301 of the Companies Act, 1956 have been so entered.

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

(vi) The company has not accepted any deposits from the Public during the year.

(vii) In our opinion, the Company''s internal audit system is commensurate with its size and nature of its business.

(viii) We have broadly reviewed the cost records maintained by the Company pursuant to the Companies ( Cost Accounting Report ) Rules 2011, prescribed by the Central Government under Section 209 (1) (d) of the Companies Act, 1956 and are of the opinion that prima facie the prescribed cost records have been maintained. We have, however, not made a detailed examination of the cost records with a view to determining whether they are accurate or complete.

(ix) (a) The Company is regular in depositing with the appropriate authorities the undisputed statutory dues relating to income tax, sales tax, excise duty, PF, ESI, cess and other material statutory dues applicable to it.

(b) According to the information and explanations given to us and the records of the Company examined by us there were no dues of income tax, excise duty, PF, ESI, cess and service tax which have not been deposited on account of any dispute.

(x) The Company has no accumulated losses. The Company has not incurred cash losses during the financial year covered by our audit and in the immediately preceding financial year.

(xi) In our opinion and according to the information and explanations given to us, the company has not defaulted in repayment of dues to financial institutions and banks.

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

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

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

(xv) In our opinion, and according to the information and explanations given to us, the Company has not given guarantees for loans taken by others from bank or financial institutions.

(xvi) In our opinion, accordingly to the information and explanations given to us, as on overall basis , the term loans have been applied for the purposes for which they were obtained.

(xvii)According to the cash flow statement and other records examined by us and 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 short term basis have been used for long term investment .

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

(xix) The company has not issued any debentures.

(xx) The company has not raised funds by public issues during the year covered by our audit report.

(xxi) According to the information and explanations given to us and on the basis of our examination of books & records of the company in accordance with the generally accepted auditing practices, no fraud on or by the company has been noticed or reported during the year.

For M/s S Lakshminarayanan Associates Chartered Accountants Firm Reg. No.6609S

L.Kamesh Coimbatore (M.No. 209388) 30th May 2014 Partner


Mar 31, 2013

Report on the Financial Statements

We have audited the accompanying financial statements of Sri Arumuga Enterprise Limited (''the Company'') which comprise the Balance Sheet as at 31st March 2013, the Statement of Profit & 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

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 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 mis-statement, 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 in the Standards of 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 financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of 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 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 confirming 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 31st March, 2013 ;

(ii) in the case of the Statement of Profit & Loss Account of the Profit for the year ended on that date ; and

(iii) in the case of Cash Flow Statement of the Cash Flows for the year ended on that date

Report on Other Legal and Regulatory Requirements:

1. As required by the Companies (Auditor''s Report) Order 2003 ("the Order"), as amended, 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 & Loss Account and Cash Flow Statement dealt with in this Report are in agreement with the Books of Account;

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

e) On the basis of written representation received from the Directors as of 31st March, 2013 and taken on record by the Board of Directors,

we report that none of the Directors is disqualified as of 31st March, 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 to the Auditors'' Report

The Annexure referred to in our report to the members of Sri Arumuga Enterprise Limited (''the Company'') for the year ended 31st March 2013. We report that:

(i) (a) The Company does not have any fixed assets: hence clauses pertaining to Assets are not applicable to the company.

(ii) (a) The Stock in trade (including raw material) and stores, spare parts of the Company at all its locations have been physically verified by the Management during the year.

(b) In our opinion, the procedures for physical verification of stock followed by the Management are reasonable and adequate in relation to the size of the Company and nature of its business.

(c) The Company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stock and book records were not material.

(iii) (a) The Company has taken Unsecured Loans from parties listed in the register maintained under Section 301 of the Companies Act, 1956. Loan for Rs. 171.57 lacs has been taken during the year under report from four parties and balance as of 31st March 2013 is Rs. 2042.16 lacs. The Company has not paid any interest on the loans taken.

(b) The Company has granted interest free advances to parties listed in the register maintained under Section 301 of the Companies Act, 1956. Advances for Rs. 193.99 lacs has been given during the year under report to two parties and balance as of 31st March 2013 is Nil. The Company has not received any interest on loans advanced.

(iv) In our opinion, the internal control procedures of the company relating to purchases of stores, raw materials including components, plant & machinery, equipments and other similar assets and for sale of goods & services are commensurate with its size and nature of its business. During the course of our audit, we have not observed any continuing failure to correct major weakness in internal control systems.

(v) (a) According to the information and explanations given to us, we are of the opinion that the particulars of contracts or arrangements that need to be entered into the register maintained under section 301 of the Companies Act, 1956 have been so entered.

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

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

(vii) In our opinion, the Company''s internal audit system is commensurate with its size and nature of its business.

(viii) We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Accounting Report), Rules 2011, prescribed by the Central Government under Section 209(1)(d) of the Companies Act, 1956 and are of the opinion that prima facie the prescribed cost records have been maintained. We have, however, not made a detailed examination of the cost records with a view to determining whether they are accurate or complete.

(ix) (a) The Company is regular in depositing with the appropriate authorities the undisputed statutory dues relating to income tax, sales tax, excise duty, cess, and other material statutory dues applicable to it.

(b) According to the information and explanations given to us and the records of the Company examined by us there were no dues of income tax, excise duty, cess and service tax which have not been deposited on account of any dispute.

(x) The Company has no accumulated losses. The Company has not incurred cash losses during the financial year covered by our audit and in the immediately preceding financial year.

(xi) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to financial institutions and banks.

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

(xiii) The provisions of any special statute applicable to a chit fund/nidhi/ mutual benefit fund/society 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 guarantees for loans taken by others from bank or financial institutions.

(xvi) The Company has not obtained any long term loans during the year under report.

(xvii)According to the cash flow statement and other records examined by us and 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 short term basis have been used for long term investment.

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

(xix) The Company has not issued any debentures.

(xx) The Company has not raised funds by public issues during the year covered by our audit report.

(xxi) According to the information and explanations given to us and on the basis of our examination of books & records of the company in accordance with the generally accepted auditing practices, no fraud on or by the Company has been noticed or reported during the year.

For M/s S LAKSHMINARAYANAN ASSOCIATES

CHARTERED ACCOUNTANTS

FIRM REG. NO.6609S

L.KAMESH

Coimbatore (M.No. 209388)

30th May 2013 PARTNER


Mar 31, 2012

We report that we have audited the Balance Sheet of SRI ARUMUGA ENTERPRISE LIMITED as at 31st March 2012 and also the Profit & Loss Account for the year ended on that date annexed thereto and Cash Flow Statement for the year ended on that date. 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.

We conducted the audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An Audit includes examining on a test basis, evidence supporting the amounts, disclosures in the financial statements, assessing the accounting principles used, 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.

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

Further to our comments in the Annexure referred to in Paragraph 3 above, we state that:

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

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

c) The Balance Sheet, Profit & Loss Account, Cash Flow Statement referred to in this Report are in agreement with the Books of Account.

d) In our opinion the Profit & Loss Account, Balance Sheet and the Cash Flow Statement read together with the notes thereon comply with the Accounting Standards referred to in sub section (3C) of Section 211 of the Companies Act, 1956.

e) On the basis of written representation received from all the Directors as of 31st March 2012 and taken on record by the Board of Directors, we report that none of the Directors are disqualified as of 31st March 2012 from being appointed as Director in terms of Section 274(1)(g) of the Companies Act, 1956.

f) In our opinion and according to the information and explanations given to us and on the basis of such checks as we considered appropriate, the said Balance Sheet and Profit & Loss Account read together with the notes thereon give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

(i) in the case of the Balance Sheet, of the STATE OF AFFAIRS as at 31st March 2012

(ii) in the case of the Profit & Loss Account of the PROFIT for the year ended that date and

(iii) In the case of the Cash Flow Statement, of the CASH FLOWS for the year ended that date.

(i) The Company does not have any fixed assets; hence Clauses pertaining to fixed assets are not applicable to the Company.

(ii The Company does not have any inventory; hence Clauses pertaining to stock in trade are not applicable to the Company.

(iii) (a) The Company has taken unsecured loans from parties listed in the register maintained under Section 301 of the Companies Act, 1956. Loan for Rs. 63.37 lakhs has been taken during the year under report from two parties and balance as of 31st March 2012 is Rs.1896.16 lakhs. The company has not paid any interest on the loans taken.

(b) The Company has not granted interest free advances to parties listed in the register maintained under section 301 of the Companies Act, 1956.

(iv) In our opinion, the internal control procedures of the Company relating to purchases of stores, raw materials including components, plant & machinery, equipments and other similar assets and for sale of goods & services are commensurate with its size and nature of its business. During the course of our audit, we have not observed any continuing failure to correct major weakness in internal control systems.

(v) (a) According to the information and explanations given to us, we are of the opinion that the particulars of contracts or arrangements that need to be entered into the register maintained under Section 301 of the Companies Act, 1956 have been so entered.

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

(vi) The Company has not accepted deposits from public and the provisions of Sections 58A and 58 AA of the Companies Act, 1956 or any other relevant provisions of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 are not applicable to the company.

(vii) In our opinion, the Company''s internal audit system is commensurate with its size and nature of its business.

(viii) The provisions of the Companies Act for maintenance of cost records under Section 209(1)(d) of the Companies Act, 1956 are not applicable to the Company.

(ix) (a) The Company is regular in depositing with the appropriate authorities the undisputed statutory dues relating to income tax, sales tax, excise duty, cess, and other material statutory dues applicable to it.

(b) According to the information and explanations given to us and the records of the Company examined by us there were no dues of income tax, excise duty, cess and service tax which have not been deposited on account of any dispute.

(x) The Company has no accumulated losses at the end of the financial year under report. The Company has not incurred cash losses during the financial year covered by our audit and in the immediately preceding financial year.

(xi) The Company has not obtained any loans from financial institutions or banks nor issued any debentures.

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

(xiii) The provisions of any special statute applicable to a chit fund / nidhi/ mutual benefit fund/ society are not applicable to the Company.

(xiv) The Company is not dealing in 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.

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

(xvii)According to the cash flow statement and other records examined by us and 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 short term basis have been used for long term investment.

(xviii)According to the information and explanations given to us, the Company has not made preferential allotment of shares to parties covered in the register maintained under Section 301 of the Companies Act.

(xix) According to the information and explanations given to us, during the year covered by our audit report, the Company has not issued any debentures.

(xx) According to the information and explanations given to us, the Company has not raised funds by public issues during the year covered by our audit report.

(xxi) According to the information and explanations given to us and on the basis of our examination of books & records of the Company in accordance with the generally accepted auditing practices, no fraud on or by the Company has been noticed or reported during the year.

For M/s S LAKSHMINARAYANAN ASSOCIATES

CHARTERED ACCOUNTANTS

FIRM REG. NO.6609S

L.KAMESH

Coimbatore (M.No. 209388)

5th December 2012 PARTNER


Mar 31, 2011

We report that we have audited the Balance Sheet of Sri Arumuga Enterprise Limited as at 31st March 2011 and also the Profit & Loss Account for the year ended on that date annexed thereto and Cash Flow Statement for the year ended on that date. 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.

We conducted the audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An Audit includes examining on a test basis, evidence supporting the amounts, disclosures in the financial statements, assessing the accounting principles used, 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.

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

Further to our comments in the Annexure referred to in Paragraph 3 above, we state that:

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

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

c) The Balance Sheet and Profit & Loss Account referred to in this Report are in agreement with the Books of Account.

d) In our opinion the Profit & Loss Account and Balance Sheet read together with the notes thereon comply with the Accounting Standards referred to in sub section (3C) of Section 211 of the Companies Act, 1956.

e) On the basis of written representation received from all the Directors as of 31st March 2011 and taken on record by the Board of Directors, we report that none of the Directors are disqualified as of 31st March 2011 from being appointed as Director in terms of Section 274 (1)(g) of the Companies Act, 1956.

f) In our opinion and according to the information and explanations given to us and on the basis of such checks as we considered appropriate, the said Balance Sheet and Profit & Loss Account read together with the notes thereon give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India :

(i) in the case of the Balance Sheet, of the STATE OF AFFAIRS as at 31st March 2011

and (ii) in the case of the Profit & Loss Account of the PROFIT for the year ended that date

ANNEXURE REFERRED TO IN PARAGRAPH 3 OF THE REPORT OF

EVEN DATE OF THE AUDITORS TO THE MEMBERS OF

SRI ARUMUGA ENTERPRISE LIMITED

(i) The Company does not have any fixed assets; hence Clauses pertaining to Fixed Assets are not applicable to the Company.

(ii) The Company does not have any inventory; hence Clauses pertaining to Stock in trade are not applicable to the Company.

(iii) (a) The Company has taken Unsecured Loans from parties listed in the register maintained under Section 301 of the Companies Act, 1956. Loan for Rs.900.00 lakhs has been taken under report from parties and balance as of 31st March 2011 is Rs.1900.00 lakhs. The Company has not paid any interest on the loans taken. (b) The Company has not granted any advance to parties listed in the registered maintained under Section 301 of the Companies Act, 1956.

(iv) In our opinion, the internal control procedures of the Company relating to purchases of stores, raw materials including components, plant & machinery, equipments and other similar assets and for sale of goods & services are commensurate with its size and nature of its business. During the course of our audit, we have not observed any continuing failure to correct major weakness in internal control systems.

(v) (a) According to the information and explanations given to us, we are of the opinion that the particulars of contracts or arrangements that need to be entered into the register maintained under Section 301 of the Companies Act, 1956 have been so entered. (b) In our opinion and according to the information and explanations given to us, the transactions in pursuance of such contracts or arrangements have been made at prices which are reasonable having regard to prevalent market prices at the relevant time.

(vi) The Company has not accepted deposits from public and the provisions of Sections 58A and 58 AA of the Companies Act, 1956 or any other relevant provisions of the Companies Act,1956 and the Companies (Acceptance of Deposits) Rules, 1975 are not applicable to the Company.

(vii) In our opinion, the Company's internal audit system is commensurate with its size and nature of its business.

(viii) The provisions of the Companies Act for maintenance of Cost Records Under Section 209 (1)(d) are not applicable to the Company.

(ix) (a) The Company is regular in depositing with the appropriate authorities the undisputed statutory dues relating to income tax, sales tax, excise duty, cess and other material statutory dues applicable to it. (b) According to the information and explanations given to us and the records of the Company examined by us, there were no dues of income tax, excise duty, cess and service tax which have not been deposited on account of any dispute.

(x) The Company has no accumulated losses at the end of the financial year under report. The Company has not incurred cash losses during the financial year covered by our audit and in the immediately preceding financial year.

(xi) The Company has not obtained any loans from financial institutions or banks nor issued any debentures.

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

(xiii) The provisions of any special statute applicable to a chit fund / nidhi / mutual benefit fund / society are not applicable to the Company.

(xiv) The Company is not dealing in 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.

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

(xvii) According to the cash flow statement and other records examined by us and 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 short term basis have been used for long term investment.

(xviii) According to the information and explanations given to us, the Company has not made preferential allotment of shares to parties covered in the register maintained under Section 301 of the Companies Act.

(xix) According to the information and explanations given to us, during the year covered by our audit report, the Company has not issued any debentures.

(xx) According to the information and explanations given to us, the Company has not raised funds by public issues during the year covered by our audit report.

(xxi) According to the information and explanations given to us and on the basis of our examination of books & records of the Company in accordance with the generally accepted auditing practices, no fraud on or by the Company has been noticed or reported during the year.

For M/s S LAKSHMINARAYANAN ASSOCIATES

CHARTERED ACCOUNTANTS FIRM REG. NO.6609S

L.KAMESH

Coimbatore (M.No. 209388)

29th August 2011 PARTNER

 
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