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Auditor Report of Super Tannery Ltd.

Mar 31, 2015

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Super Tannery Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2015, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these standalone 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 maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, 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 standalone 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 and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those Standards and pronouncements 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 the 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 a true and fair view in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on whether the company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company's 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 standalone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India of the state of affairs of the company as at March 31, 2015 and its profit and its 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, 2015 ("the Order") issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, and on the basis of such checks of the books and records of the company as we considered appropriate and according to information and explanations given to us, we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order.

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

a. 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.

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

c. 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.

d. In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

e. On the basis of the written representations received from the directors as on March 31, 2015 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2015 from being appointed as a director in terms of Section 164 (2) of the Act.

f. With respect to the other matters to be included in the Auditor's 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) The Company has disclosed the impact of pending litigations on its financial position in its financial statements – Refer Note no. 39 to the financial statements;

(ii) In our opinion and as per the information and explanations provided to us, the company has not entered into any long term contracts including derivative contracts, requiring provision under applicable laws or accounting standards, for material foreseeable losses; and

(iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.

[Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirements' section of our report of even date on the standalone financial statements of Super Tannery Limited ("the Company") for the year ended March 31, 2015]

(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 are physically verified in a phased manner, so as to cover all the fixed assets over a period of two years. In our opinion, the frequency of physical verification of fixed assets is reasonable, having regard to the size of the company and nature of its assets. No material discrepancies between book records and the physical inventory were noticed in respect of the assets verified during the year.

(ii) (a) The inventories of the Company have been physically verified by the management during the year except material lying with the third parties.. In our opinion, the frequency of verification is reasonable.

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

(c) On the basis of our examination of records of inventories, in our opinion, the company has maintained proper records of inventory and the discrepancies noticed on physical verification between the physical stocks and the book records were not material in relation to the operation of the company.

(iii) (a) The Company has not granted any loan, secured or unsecured, to companies, firms or other parties listed in the register maintained under Section 189 of the Companies Act, 2013 except unsecured advances to two wholly owned foreign subsidiaries granted in earlier years.

(b) No irregularity was notices during the year in respect of repayment of principal amount.

(c) There is no amount overdue in respect of Loan granted to aforesaid wholly owned foreign subsidiaries.

(iv) In our opinion, and according to information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and nature of its business for the purchase of inventory and fixed assets and for the sale of goods and services.

Further, during the course of our examination of the 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 system.

(v) In our opinion and according to information and explanations given to us, the Company has not accepted any deposit from the public within the meaning of Section 73 to Section 76 of the Companies Act, 2013 read with the Rules framed there under.

(vi) In our opinion and according to information and explanations given to us, the requirement of maintenance of cost records pursuant to Companies Cost Records and Audit rules, 2014 specified by the Central Government of India under sub-section (1) of the section 148 of the Act are not applicable to the company for the year under review.

(vii) (a) According to the books and records produced and examined by us, the Company is generally regular in depositing undisputed Statutory dues including Provident Fund, Employees' State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Value Added Tax, Cess and other material statutory dues as applicable with the appropriate authorities and no undisputed amount payable in respect of aforesaid statutory dues were outstanding as at March 31, 2015 for a period of more than six months from the date they become payable.

(b) According to the information and explanations given to us, there are no dues of Income Tax, Sales Tax, Wealth Tax, Service Tax, Duty of Customs, Duty of Excise, Value Added Tax and Cess which have not been deposited on account of any dispute, except mentioned as below:

Name of the Nature of Forum where Period to which Amount Statute Dues dispute is amount relates (Rs.) pending

Income Tax Income CIT Appeals, A.Y. 2010-11 &, Act, 1961 Tax & Kanpur A.Y. 2012-13 76,12,012 Interest

Income Tax Income ITAT, Lucknow A.Y. 2007-08 30,54,620 Act, 1961 Tax & Bench Interest

(b) According to the information and explanations given to us, the amount that required to be transferred to Investors Education and Protection Fund during the year in accordance with the relevant provisions of the Companies Act, 1956 and rules framed thereunder has been transferred to such fund within time.

viii. The company does not have any accumulated losses as at the end of the year and has not incurred cash losses during the financial year covered by audit report and in the immediately preceding financial year.

ix. According to the information and explanations given to us and based on the documents and records produced to us, the company has not defaulted in repayment of dues to a financial institution, bank or debenture holders during the year.

x. The Company has not given any guarantees for loans taken by others from banks or financial institution.

xi. In our opinion, the term loans have been applied for the purposes for which they were obtained.

xii. Based on 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 year.

For Kapoor Tandon & Co.,

Chartered Accountants

Firm Reg. No. 000952C

R.P. Gupta

Partner

Place : Kanpur Membership No. 070904

Date : 30.05.2015


Mar 31, 2014

We have audited the accompanying financial statements of Super Tannery Limited ("the Company"), which comprises the Balance Sheet as at March 31, 2014, the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956 ("the Act") (which continue to be applicable in respect of Section 133 of the Companies Act, 2013 in terms of General circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs) and in accordance with the accounting principles generally accepted in India. 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

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 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.

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 accompanying 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 Statement of Profit and Loss, of the profit for the year ended on that date; and

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

Report on Other Legal and Regulatory Requirements

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

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

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

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

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

d. 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 (which continue to be applicable in respect of Section 133 of the Companies Act, 2013 in terms of General circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs);

e. 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 Act;

ANNEXURE TO THE AUDITORS REPORT

(This is the Annexure referred to in para 1 of our report of even date on the Financial Statements for the year ended 31st March, 2014 of Super Tannery Limited)

In terms of the information and explanations given to us and the books and records examined by us in the normal course of audit and to the best of our knowledge and belief, we state as under:

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

(b) The fixed assets of the company are physically verified in a phased manner, so as to cover all the fixed assets over a period of two years. In our opinion, the frequency of physical verification of fixed assets is reasonable, having regard to the size of the company and nature of its assets. No material discrepancies between book records and the physical inventory were noticed in respect of the assets verified during the year.

(c) The fixed assets disposed of during the year, in our opinion, do not constitute substantial part of the fixed assets of the company and such disposal has, in our opinion, not affected the going concern status of the company.

(ii) (a) The inventories of the company have been physically verified by the management during the year except material lying with the third parties. In our opinion, the frequency of such verification is reasonable.

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

(c) On the basis of our examination of records of inventories, in our opinion, the company has maintained proper records of inventories and the discrepancies noticed on physical verification between the physical stocks and the book records were not material in relation to the operation of the company.

(iii) The company has neither granted nor taken any loans secured of unsecured to the companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956.

(iv) In our opinion, and according to information and explanations given to us, there is an adequate internal control system commensurate with the size of company and nature of its business for the purchase of inventory and fixed assets and for the sale of goods and services.

Further, during the course of our examination of the books and records of the company, and according to the information and explanations given to us, we have neither come across nor we have been informed of any continuing failure to correct major weakness in the aforesaid internal control system.

(v) (a) In our opinion and according to the information and explanation given to us, the transactions made in purchase of contracts or arrangements that needed to be entered in the register maintained under Section 301 of the Companies Act, 1956 have been so entered.

(b) In our opinion, the transactions made in pursuance of contracts or arrangements entered in the register maintained under Section 301 of the Companies Act, 1956, and exceeding Rs.5.00 Lacs during the year in respect of each party have been entered into at the prices which are reasonable having regard to prevailing market price as far as we could ascertain on the basis of information and explanations given to us.

(vi) The company has not accepted any deposits from the public during the year under audit within the meaning of Section 58A and 58AA of the Companies Act, 1956 and rules framed there under.

(vii) In our opinion, and according to information and explanations given to us, the company has an adequate internal audit system commensurate with the size of the company and the nature of its business.

(viii) We have broadly reviewed the books of account maintained by the company pursuant to the order made by the Central Government for the maintenance of cost records under Section 209 (1)(d) of the Companies Act, 1956 and are of the opinion that prima facie the prescribed records have been made and maintained. However, we have not made a detailed examination of the records with a view to determine whether they are accurate or complete.

(ix) (a) The company has generally been regular in depositing undisputed statutory dues including Provident Fund, Investor education & Protection Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other material statutory dues with appropriate authorities. Further, in absence of notification from the Government in respect of Cess as per the provisions of Section 441A of Companies Act, 1956, the same could not be quantified/ deposited.

According to the information and explanations given to us, no undisputed dues in respect of Income Tax, Sales Tax, Wealth Tax , Custom Duty, Excise Duty were outstanding as at 31st March, 2014 for a period of more than six months from the date they became payable.

(b) Dues of Income Tax / Sales Tax / Wealth Tax/ Custom Duty / Excise Duty / Cess which have not been paid on account of any dispute are as under:

Name of the Nature of Forum where Period to which Amount Statute Dues dispute is amount relates (Rs.) pending

Income Tax Income CIT Appeals, A.Y. 2010-11 &, Act Tax & Kanpur A.Y. 2011-12 78.29 Lacs Interest

Income Tax Income ITAT, Lucknow A.Y. 2007-08 &, Act Tax & Bench A.Y. 2009-10 32.90 Lacs Interest

(x) The company has neither accumulated losses as at 31st March, 2014 nor incurred cash loss during the financial year ended on that date or in the immediately preceding financial year.

(xi) According to the information and explanation given to us, the company has not defaulted in repayment of dues to any bank during the year. There are no dues to any financial institution or debenture holder.

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

(xiii) According to the information and explanation given to us, the provisions of any special statute as applicable to chit fund, nidhi, mutual benefit fund/societies are not applicable to the company.

(xiv) In our opinion and according to the information and explanation given to us, the company is not a dealer / trader in share, securities, debentures and other investments.

(xv) The company has not given any guarantees for loans taken by others from banks or financial institution.

(xvi) In our opinion and according to the information and explanations given to us, the term loans were applied for the purpose for which the loans were obtained.

(xvii) Based on the information and the explanations given to us and on the basis of over all review of the Financial Statements of the company, in our opinion funds raised for short term purposes have, prima facie, not been used for long term requirements.

(xviii) The company has not made any preferential allotment of shares to any parties covered in the register maintained under Section 301 of the Companies Act, 1956.

(xix) According to the information and explanations given to us the company has not issued any Debentures, during the year.

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

(xxi) 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 Kapoor Tandon & Co., Chartered Accountants Firm Reg. No. 000952C

R.P. Gupta Partner Place : Kanpur Membership No. 070904 Date : 29.05.2014


Mar 31, 2012

We have audited the attached Balance Sheet of SUPER TANNERY LIMITED as at 31st 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.

1. 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 the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

2. As required by the Companies (Auditor's Report) Order, 2003, issued by the Central Government of India in terms of Section 227 (4A) of the Companies Act, 1956 and on the basis of such checks of the books and records of the company as we considered appropriate and according to information and explanation given to us during the course of our audit, we annex hereto a statement on the matters specified in paragraph 4 and 5 of the said Order.

3. Furtherto our comments in the annexure referred to in paragraph 2 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 account as required by law have been kept by the company

c. The Balance Sheet, Statement of Profit & 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, Statement of Profit and Loss and Cash Flow Statement dealt with by this report comply with the applicable Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956;

e. On the basis of written representations received from the Directors and taken on records by the Board of Directors, we report that none of the directors is disqualified as on 31.03.2012 from being appointed as a Director in terms of Section 274(1 )(g) of the Companies Act, 1956;

f. In the absence of the Notification by the Central Government of India, the Cess payable under Section 441A of the Companies Act, 1956 has not been paid, in absence of the Notification, the amount of Cess not so paid, could not be ascertained.

g. In our opinion and to the best of our information and according to the explanations given to us he said accounts read together with the Notes thereon, give the information required by the companies Act, 1956 in the manner so required and give a true arid 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 Company as at 31st March, 2012;

ii. in the case of Statement of Profit and Loss of the profit for the year ended on that date.

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



ANNEXURE TO THE AUDITORS' REPORT

Referred to in paragraph 2 of Auditors' Report of even date on the financial Statement of Super

TanneryLimitedfortheyearended31stMach,2012. .

(i) (a) The company is maintaining proper records showing full particulars including quantitative

details and situation of fixed assets.

(b) The fixed assets of the company are physically verified in a phased manner, so as to cover all the fixed assets over a period of two years. In our opinion, the frequency of physical verification of fixed assets is reasonable, having regard to the size of the company and nature of its assets. No material discrepancies between book records and the physical inventory were noticed in respect of the assets verified during the year.

(c) The fixed assets disposed of during the year, in our opinion, do not constitute substantial part of the fixed assets of the company and such disposal has, in our opinion, not affected the going concern status of the company.

(ii) (a) The inventory of the company has been physically verified by the management during the

year except material lying with the third parties. In our opinion, the frequency of such verification is reasonable.

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

(c) On the basis of our examination of records of inventory, in our opinion, the company has maintained proper records of inventory and the discrepancies noticed on physical verification between the physical stocks and the book records were not material in relation to the operation of the company.

(iii) (a) The company has not granted any loans secured of unsecured to the companies, firms or

other parties listed in the register maintained under Section 301 of the Companies Act, 1956 excepting interest free unsecured loan to its Subsidiary, Maximum amount involved and yearend balance of such loan was Rs.200.81 Lacs.

(b) Other terms and conditions of such loans are, prima facie, not prejudicial to the interest of the company.

(c) As regards repayment of above loans are concerned, no terms of repayment have been stipulated.

(d) The company has not taken any loans secured or unsecured from the companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956.

(iv) In our opinion, and according to information and explanations given to us, there is an adequate internal control system commensurate with the size of company and nature of its business for the purchase of inventory and fixed assets and for the sale of goods and services.

Further, during the course of our examination of the books and records of the company, and according to the information and explanations given to us, We have neither come across nor we have been informed of any continuing failure to correct major weakness in the aforesaid internal control system.

(v) (a) In our opinion and according to the information and explanation given to us, the transactions

made in purchase of contracts or arrangements that needed to be entered in the register maintained under Section 301 of the Companies Act, 1956 have been so entered.

(b) In our opinion, the transactions made in pursuance of contracts or arrangements entered in the register maintained under Section 301 of the Companies Act, 1956, and exceeding Rs.5.00 Lacs during the year in respect of each party have been entered into at the prices which are reasonable having regard to prevailing market price as far as we could ascertain on the basis of information and explanations given to us.

(vi) The company has not accepted any deposits from the public during the year under audit within the meaning of Section 58Aand 58AAof the Companies Act, 1956 and rules framed there under.

(vii) In our opinion, and according to information and explanations given to us, the company has an adequate internal audit system commensurate with the size of the company and the nature of its business.

(viii) We have broadly reviewed the books of account maintained by the company relating to the manufacture of 'footwear' pursuant to the order made by the Central Government for the maintenance of cost records under Section 209 (1) (d) of the Companies Act, 1956 and are of the opinion that prima facie the prescribed records have been made and maintained. However, we have not made a detailed examination of the records with a view to determine whether they are accurate or complete. To the best of our knowledge and according to the information and explanations given to us, the Central Government has not prescribed the maintenance of cost records for any other products of the company.

(ix) (a) The company has generally been regular in depositing undisputed statutory dues including

Provident Fund, Investor education & Protection Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other material statutory dues with appropriate authorities. Further, in absence of notification from the Government in respect of Cess as per the provisions of Section 441A of Companies Act, 1956, the same could not be quantified/ deposited.

According to the information and explanations given to us, no undisputed dues in respect of Income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise Duty were outstanding as at 31st

March, 2012 for a period of more than six months from the date they became payable.

(b) Dues of Income Tax / Sales Tax / Wealth Tax/ Custom Duty / Excise Duty / Cess which have not been paid on account of any dispute are as under:

Name of the Nature of Forum where dispute Period to which Amount (Rs.) Structure Dues is pending amount relates

Income Tax Act Income Tax& CIT Appeals, Kanpur A.Y. 2007-08 & 43,37,722 Interest A.Y.2009-10

(x) The company does not have accumulated losses as at 31st March, 2012 and has not incurred cash loss during the financial year ended on that date or in the immediately preceding financial year.

(xi) According to the information and explanation given to us, the company has not defaulted in repayment of dues to any bank during the year. There are no dues to any financial institution or debenture holder.

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

(xiii) According to the information and explanation given to us, the provisions of any special statute as applicable to chit fund, nidhi, mutual benefit fund/societies are not applicable to the company.

(xiv) In our opinion and according to the information and explanation given to us, the company is not a dealer/trader in share, securities, debentures and other investments.

(xv) The company has not given any guarantees for loans taken by others from banks or financial institution.

(xvi) In our opinion and according to the information and explanations given to us, the term loans were applied for the purpose for which the loans were obtained.

(xvii) Based on the information and the explanations given to us and on the basis of overall review of the Financial Statements of the company, in our opinion funds raised for short term purposes have, prima facie, not been used for long term requirements.

(xviii) The company has not made any preferential allotment of shares to any parties covered in the under Section 301 of the Companies Act, 1956.

(xix) According to the information and explanations given to us the company has not issued any Debentures, during the year.

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

(xxi) 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 KAPOOR TANDON & CO., Chartered Accountants Firm Registration NO.000952C Partner

Place : Kanpur (R. P. GUPTA)

Date : 30.05.2012 Membership No.:070904


Mar 31, 2010

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

1. 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 acoounting principles used and significant estimates made by the managements, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonalbe basis for our opinion.

2 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 basis of such checks of the books and records of the Company as we considered appropriate and according to information and explanation given to us, we annex hereto a statement on the matters specifiec in paragraph 4 and 5 of the said Order.

3. . Further to our comments in the annexure referred to in paragraph 2 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 account as required by law have been kept by the company so far as appear from

our examination of these books;

c. The Balance Sheet, Profit & LossAccount and Cash Flow Statement dealt with by this report are in agreement " with the books account;

d. In our opinion, the Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with by this report comply with the applicable Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956.

e. On the basis of written representations received from the Directors and taken on records by the Board of Directors , we report that none of the directors disqualified as on 31.03.2010 from being appointed as a Director in terms of Section 274(1) (g) of the Companies Act, 1956;

f. In the absence of the Notification by the Central Government of India, the Cess payable under Section 441A of the Companies Act, 1956 has not been paid, in absence of the Notification, the amount of Cess not so paid, could not be ascertained.

g. 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 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 Balance Sheet of the state of affairs of Company as at 31st March, 2010.

ii. in the case of Profit and Loss Account of the Profit for the year ended on that date.

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

ANNEXURE TO THE AUDITORS REPORT

(Referred to in paragraph 2 of our report of even date on the financial statements of Super Tannery Limited for the year ended 31st March, 2010).

ii. (a) The company has maintained proper records to show full particulars including quantitative details and situation of all fixed assets.

(b) In our opinion, the fixed assets have been physically verified by the management at reasonable-intervals, having regard to the size of he company and the nature of fixed assets. No discrepancies between the book records and the physical inventory were noticed.

(c) The Company has not disposed aff any substantial part of its Fixed assets during the year so as to affect its going concern-status.

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

(b) In our opinion and according to the information and explanations given to us, the procedures of physical veri fication of inventories folio wed by the management are reasonable and adequate in relation to the size of the company and nature of its business.

(c) The company is maintained proper records of inventory. The discrepancies noticed on verification between physical inventories and book records and were not material in relation to the operations of the company and the same have been properly dealt with in the books of accounts.

iv. The Company has granted interest bearing unsecured loan to a company listed in the register maintained under Section 301 of the Companies Act, 1956. No terms and conditions for repayment of the loan are stipulated. Hence there is no overdue amount of such loan. The maximum amount outstanding at any time during the year and the balance at the end of the year was Rs. 200.81 lacs. The loan is not prima facie pre-judicial to the interest of the company. Excepting-this, the company has not granted/taken any loans to/from parties listed in the register maintained under Section 301 of the Companies Act, 1956, paragraph (iii) (b), (c) and (d) of the Order-are not applicable.

iiv. In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the company and- nature of its business for the purchase of inventory, fixed assets and for the sale.of goods, Further, on the basis of our examination and according to the information and explanations given to us, we have neither come across nor have been informed of any instance of major weanesses in the aforesaid internal control procedures.

v. (a) In our opinion and according to the information and explanations given to us, all the transactions that need to be entered into the register maintained under Section 301 of the Companies Act, 1956 have been so entered.

(b).ln our opinion and according to the information and explanations given to us, these transactions have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

vi. In our opinion and according to the information and explanations given to us, the company has not accepted any deposits from thepublic within the meaning of Section 58A and 58AA of the Companies Act, 1956 and the rules framed there under.

vii. In our opinion and according to the information and explanations given to us, the company has an internal audit system commensurate with the size and nature of its business.

viii. To the best our knowledge and according to the information and explanations given to us, the Central Govt, has not prescribed the maintenance of cost records under Section 209(1) (d) of the Companies Act,1956 for any of the products of the company excepting leather footwear, for which in our opinion, prima facie, the prescribed accounts and records have been maintained and are being made up. We are not required to and, accordingly, have not made a detailed examination of the records.

ix. (a) According to the information and explanations given to us and books and records produced and examined by us, in our opinion, the generally regular in depositing undisputed Statutory dues including Provident Fund, Investors Education and Protection Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty,Excise Duty, Cess (excepting Cess under Section 441A of the Companies Act 1956) and othermaterial Statutory dues as applicable with the appropriate authorities, According to the information and explanations given to us. no undisputed amount payable in respect of income Tax, Wealth Tax, Custom Duty and Excise Duty were outstanding at the end of the year for a period of more than six months from the date they become payable.

(b) As at 31st March, 2010, according to the records of the company, and the information and explanations given to us, the following are the particulars of-dues on account of Sales Tax, Income Tax, Custom Duty, Wealth Tax, Excise Duty and Cess matters that have not been deposited on account of any dispute,

Period to

Name of Nature of Amount which Forum where The Statute dues (Rs. in lacs) relates pending

Sales Tax Laws Entry Tax Not Ascerta inable F.Y. 2004-05 (a)High Court, Allahabad

F.Y. 2005-06 (For and on behalf of leather

F.Y. 20C7-08 industries of Kanpur, U.R Leather Industries Associat ion has filed writ petition challenging the constitutional validity of the U.R Tax on Entry of Goods Act, 2000) (b) High Court, Allahabad (For and on behalf of Leather Industries of Kanpur U.R Leather Industires Association has filed writ petition challenging the constitutional validity of the U.R Tax on Entry of -goods into the local area ordinance 2007 being U.R Ordinance number 35 of 2007 promulgated by the Governor of U.P

x. The company does not have accumulated losses as at the end of the financial year and it has not incurred any cash tosses in the current and immediately preceding financial years.

xi. According to the information and explanations given to us and based on the documents and records produced to us, the company has not defaulted in repayment of dues to a financial institution, bank or debenture holders.

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

xiii. In our opinion and according to the information and explanations given to us, the nature of activities of the company does not attract any special statute applicable to chit fund and nidhi / mutual benefit fund/societies.

xiv. In our opinion and according to the information and explanations given to us, the company is not dealer or trader in securities.

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 institution.

xvi. In our opinion and according to the information and explanations given to us, the term loans were applied for the purpose for which the loans were obtained.

xvii. Based on the information and explanations given to us and on an overall examination of the Balance Sheet of the company, in our opinion, there are no funds raised on a short term basis which have been used for long term investment and vice versa.

xviii. The company has not made any preferential allotment of shares to parties and company covered in the register " maintained under Section 301 of the companies Act, 1956 during the year.

xix. The company has not issued any 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, no fraud on by the company has been noticed or reported during the year.

For KAPOOR TANDON & Co.,

Chartered Accountants

Registration No. 000952C

(R.P. GUPTA)

Place : Kanpur Partner

Date ; 29.05.2010 Membership No.; 070904

 
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